Big banks recorded a 9.3% profit increase to $3.09b.
Philippine banks had a good year after profits rose 6.4% YoY to $3.45b ($179b) in 2018 on the back of higher trading gains and interest income, reports Philippine Star which cited central bank data.
By sector, big banks recorded a profit of $3.09b (PHP159.93b), up 9.3% from their profits of 2.83b in 2017. On the other hand, profits of thrift banks slid 11.7% to $310m (PHP15.83b).
According to the central bank’s data, credit growth was recorded at 15.6% YoY in December buoyed by loan disbursements which hit $160b (PHP8.33t) from $140b (PHP7.2t) from a year ago. On the other hand, loans disbursed for production activities increased 15.8% to $140b (PHP7.39t) from $120b (PHP6.39t), accounting for 88.8% of the total loan disbursements in end-December.
Lending growth to the real estate sector cooled further to 11.1% to $28b (PHP1.44t) for a 16.8% share. This was followed by the wholesale and retail trade which slowed down to 15.2% to $22b (PHP1.16t) for a 13.9%.
Meanwhile, loans growth to manufacturing firms eased at 13.1% to $21b (PHP1.07t) to get 12.8% of the total loans.
On the other hand, amount loaned by electricity, gas, steam and air conditioning supply firms edged up to 12% to $17.95b (PHP929.7b) to account for 11.2% systemwide loans.
Philippine bank assets rose 11.1% YoY to a record high of $330b (PHP17.24t) in 2018 from $300b (PHP15.52t) in 2017 amidst a steady expansion in deposits.
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