A surge in deposits drove banking gains.
The total assets held by Philippine banks rose grew 12.2% YoY to $292.95b (PHP15.56t) in May, according to central bank data.
Deposits also rose 12.5% YoY amidst robust lending activities, pushing up the asset pool of Philippine banks, Bangko Sentral ng Pilipinas governor Nestor Espenilla Jr. told local media.
“Banks continue to adhere to sound credit underwriting standards as shown by the very satisfactory quality of the banking system’s loan portfolio,” Espenilla said.
“The trajectory for profit growth will continue, driven mainly by strong growth outlook, upbeat lending activities, product innovations, and more cost-efficient and technology-enabled operations,” he added.
Philippine banks are expected to embrace digitalisation to accelerate efforts at financial inclusion and boost their expansion plans.
Only a fourth or 22.6% of Filipino adults are in possession of a bank account as of end-2017, the BSP said in an earlier report. This translates to around 15.8 million Filipinos out of 103.3 million who are in the mantle of the formal financial system.
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