7

Big banks in PH rake in more profit in 2013

Posted at 02/16/2014 10:28 AM | Updated as of 02/17/2014 10:51 AM

MANILA, Philippines - Profits of universal and commercial banks expanded 19 percent last year over the 2012 level, indicating the healthy state of the local banking industry.

Bangko Sentral ng Pilipinas (BSP) data showed big banks earned P132.5 billion in 2013, higher than the P110.968 billion recorded in 2012.

Net interest income last year rose 11 percent to P223.2 billion from P200.9 billion while non-interest income grew 12 percent to P152.8 billion from P136.6 billion.

Net interest income come from the banks’ core businesses such as deposit and loans, while non interest earnings are sourced from dividends, fees and commissions, gains from trading, and profit from foreign exchange transactions.

Universal and commercial banks also saw their non-interest expenses increase seven percent to P223.5 billion from P208.4 billion.

Losses on financial assets, meanwhile, widened 26 percent to P22.2 billion from P17.7 billion.

The banks’ return on equity improved to 13.65 percent last year from 12.67 percent in 2012.

The healthy balance sheet of big banks signify they have enough capital to cover funding needs and act as buffer against systemic shocks, the BSP said.

Big banks continued to beef up their resources, which summed up to P9.42 trillion last year, up 26 percent from P7.5 trillion in 2012.