Total gross assets of the nine overseas banking units or OBUs in the country amounted to $1.291 billion as of June, up 59.8 percent from $807.74 million previously.
Assets lodged with OBUs and foreign currency deposit units serve as secondary reserves that help keep the local financial system stable during periods of economic or political difficulty.
OBUs’ net income after tax, in the meantime, rose 59.1 percent to $3.2 million from $2 million.
For the first half of 2005, operating income grew by 35.3 percent to $11 million as its components, net interest income and other operating income, were up by 69.1 percent and 19.9 percent, respectively. Meantime, operating expenses went up but at a slower pace of 26.1 percent to $7.7 million. Bottom-line figure was barely affected by a $100, 000 provision for income tax, the BSP said.
"Funds were still primarily sourced from head office/branches-abroad, which increased year-on-year by 28.9 percent to $746.5 million and contributed to 57.8 percent of the industry’s total resources," the central bank said.
More than half of OBU funds were lent out to borrowers. Total loans soared by 180.6 percent to $663.5 million from year ago of $236.5 million. Likewise, investment in bonds and other securities expanded by a hefty 93.5 percent to $483 million and accounted for 36.5 percent of gross assets.
Loans to resident borrowers expanded by 39 percent to $296 million from $213 million a year ago. By economic activity, the manufacturing sector remained the major industry beneficiary of lending to residents at 55.4 percent or $164.2 million.
The BSP said this was followed by the transportation, storage and communications sector at 12.2 percent or $36 million and the electricity, gas and water sector at 11.5 percent or $34.4 million. (LCC)
