Thrift banks’ profits increase 44.85%
The 70 thrift banks supervised by the central bank reported total income of P9.488 billion as of the end of the third quarter, up 44.85 percent year-on-year.
Based on Bangko Sentral ng Pilipinas (BSP) data, the mid-sized banking sector as of end-September earned P14.703 billion as non-interest income, 53 percent higher compared to last year’s tally of P9.609 billion. These are profits from treasury trading.
The banks in the meantime recorded P25.128 billion net interest income, 12.85 percent more than what was reported the same time in 2012.
Interest income is derived from lending activities. Thrift banks, especially subsidiary units of the big universal and commercial banks, have a large portion of the industry’s property and car loans.
As of end-June, the thrift banking sector’s non performing loans ratio slid to 5.94 percent from 6.13 percent in the previous quarter. The sector had loan loss provisioning of P20.13 billion in the second quarter or up at 77.28 percent from 70.43 percent in March.
The Ayala-owned BPI Family Savings Bank remained the largest of 70 thrift banks with assets of P196.43 billion, followed by Metrobank subsidiary Philippine Savings Bank with P116.67 billion.
RCBC Savings Inc. with total assets of P65.70 billion, Planters Development Bank with P53.65 billion and Philippine Business Bank with P42.29 billion completes the top five.
The BSP noted as of end-September thrift banks’ return on equity improved to 13.66 percent from last year’s 11.99 percent while return on assets also inched up to 1.66 percent from 1.50 percent.