Banks’ profits down 22.45% in first half

Domestic banks reported lower net profits in the first six months of the year, down by 22.45 percent year-on-year to ₱86.048 billion from ₱110.966 billion due to the COVID-19 pandemic which stunted economic and business activity since mid-March.

Based on the latest Bangko Sentral ng Pilipinas (BSP) data, The big banks’ net profits decreased by 22.24 percent yearon-year to ₱78.237 billion from ₱100.615 billion. These are the universal and commercial banks which accounted for more than 95 percent of industry assets.

The whole banking system’s cumulative net interest income as of end-June went up by 15.46 percent to ₱331.613 billion from ₱287.213 billion in 2019. Noninterest income also increased by 3.11 percent to ₱118.059 billion from ₱90.031 billion.

The combined non-interest expenses of big banks, thrift and rural banks were slightly higher in the first six months at ₱240.939 billion or 3.73 percent from P232.268 billion same period last year.

The big banks net interest income increased by 20.13 percent to ₱293.738 billion versus ₱244.510 billion same time in 2019. Noninterest income also rose by 39.19 percent to ₱111.183 billion from ₱79.879 billion.

While on lockdown, commercial banks’ non-interest expenses increased by 8.59 percent to ₱211.211 billion from ₱194.491 billion, based on BSP data.

Thrift banks’ net profits also fell by 15.82 percent year-on-year as of end-June to ₱6.459 billion from ₱7.673 billion. Its net interest income slightly improved by 2.27 percent to ₱31.524 billion from ₱30.825 billion while non-interest income decreased by 20.57 percent to ₱5.234 billion from ₱6.590 billion.