Bank deposits in Cebu up by 10% in first half

CEBU, Philippines — Money deposited in banks in Cebu continued to rise in the first half of 2017, signaling the consistent growth of Cebu’s banking sector.

Latest data from the Philippine Deposit Insurance Corp (PDIC) obtained by The FREEMAN showed that bank deposits in Cebu as of June 2017 reached P467.824 billion, up 10 percent from P423.66 billion recorded in the same period last year .

However this was lower from the P468.36 billion recorded as of end 2016.

From January to June 2017, total deposit accounts held by Cebu banks also stood at 2,454,967 from 2,372,473 million in the same period in 2016.

The number of banking offices in Cebu as of end June this year also reached 545 from 513 last year, accounting for most in the Central Visayas region which has a total of 751 as of the first half.

From January to June 2017, Central Visayas, which also includes Bohol, Negros Oriental and Siquijor provinces, also recorded a 20.5 percent rise in bank deposit amount to P557.704 billion from P462.8 billion in same period last year.

This was also up from P552.05 billion as of end 2016.

Central Visayas also recorded 2,979,213 million accounts in the whole region as of end June.

Furthermore, bank deposits in Bohol reached P42.082 billion; Negros Oriental, P44.942 billion; and Siquijor, P2.856 billion.

Savings and time deposits remained the main fund sources of local banks. Other deposits include demand deposits and foreign currency deposit units (FCDUs).

Earlier, Cebu Bankers Club President Mario Fritz Palileo said he was bullish on the continued expansion of the banking industry in Cebu, citing the increasing economic activity as key driver to this growth.

Palileo said that banks have established presence in towns outside Metro Cebu, where economic activities have increased.

"Within the city, banks put up brick and mortar whenever there are commercial zones being developed by real estate developers," the bank official had said.

Banks' branch expansion has always been done by strategic positioning, he said.

Aside from economic expansion, the increasing population is also driving banking's growth, he noted.

The increasing employment, robust consumer spending and household expenditure are also among the drivers of the sector's growth.

Cebu's vibrant and growing economy which is mostly consumer-driven is also supporting this growth.

Cebu is seen to sustain this growth considering the consistent rise in bank deposits in the last years.

The BSP had said the banking system maintains its strong position as it continues to support economic growth.

The health of the Philippine banking system remained solid, supported by the country's strong macroeconomic fundamentals and favorable growth prospects. (FREEMAN)