Total assets of the Philippine banking sector increased by 11.3 percent as of end-September this year.
Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the total assets of the banking sector reached PHP26.73 trillion, up from last year’s PHP24 trillion.
It was also higher than the PHP25.9 trillion total assets recorded in August this year.
Rizal Commercial Banking Corporation analyst Michael Ricafort said the higher income of banks contributed to the growth in assets.
“The continued growth in banks’ net income may be attributed to the double-digit growth in banks’ loan business, up by +11% year-on-year for the biggest banks that boosted banks’ interest income,” Ricafort said.
Latest data from the BSP showed that the net income of banks amounted to PHP290.05 billion as of end-September this year, up from the PHP272.55 billion in the same period last year.
Ricafort said increased banking transactions due to continued recovery in the local economy led to the continued growth in banks’ deposit transactions and other banking services, resulting in higher revenues such as fees and charges.
“Thus, continued growth in net income led to higher capitalization of banks that enabled banks to increase lending and other investment activities, thereby leading to continued growth in banks’ resources,” he said. (PNA)
