Phl bank resources hit record P14.1T in April

MANILA, Philippines - Assets of Philippine banks continued to book double-digit growth to hit a record level of P14.14 trillion in end April as the industry continued to withstand shocks amid the volatile global financial market.

Data from the Bangko Sentral ng Pilipinas (BSP) showed total resources of Philippine banks grew 12.6 percent to P14.14 trillion from January to April this year or P1.55 trillion higher than the P12.56 trillion recorded in the same period last year.

The total resources of big banks or universal and commercial banks rose 13.12 percent to P12.76 trillion from P11.28 trillion while that of mid-sized banks or thrift banks went up 8.5 percent to P1.15 trillion from P1.06 trillion.

On the other hand, total assets of small banks or rural banks rose 3.7 percent to P231.7 billion in end April this year from P223.4 billion in end April last year despite the exit of weaker players in the industry.

The BSP said the Philippine banking system remained supportive of economic growth and stable financial condition.

The total deposits of the banking industry hit a record P10.57 trillion in end-April, 11.8 percent higher than the P9.45 trillion booked in end-April last year.

BSP Governor Amando Tetangco Jr. said the Philippine banking industry continues to play a significant role in helping sustain the pace of economic growth.

Tetangco said the industry not only survived 2016 but continue to thrive amid external headwinds brought about by the free fall in China’s stock market, the decision of the United Kingdom to leave the European Union or Brexit as well as the normalization path taken by the US Federal Reserve.

Stress tests conducted by the BSP showed Philippine banks could withstand extreme shocks in both credit and market risks.

Tetangco added the Philippines is the only banking industry within Asia Pacific given a positive outlook by Fitch Ratings last year and is the only one in Southeast Asia given a stable outlook by Moody’s Investor Service.

Philippine banks are controlled by family-owned conglomerates including BDO Unibank of retail magnate Henry Sy, Metropolitan Bank & Trust Co. of taipan George Ty, Ayala-led Bank of the Philippine Islands, and Philippine National Bank of tobacco and airline magnate Lucio Tan.