RETAIL BANKING | Staff Reporter, Philippines

Philippine thrift banks reverse loss with Q3 $235.64m profit gain

Net interest income hit $890.79m.

Philippine thrift bank profits rose 0.94% YoY to $235.64m (PHP12.38b) in Q3 following a net 1.81% loss in the previous quarter.

The net interest income from lending and deposit activities of mid-sized banks also rose 9.17% YoY to $890.79m (PHP46.80b). Thrift banks’ assets rose by 6.8% YoY to $22.84b (PHP1.2t) in Q3 on the back of a 5.62% growth in total deposits.

Also read: Philippine National Bank fully acquires thrift bank subsidiary

However, non-interest income extended its downtrend after falling 6.44% to $185.38m (PHP9.74b) amidst lower earnings from fixed-income securities.

“Retained earnings was the industry’s primary source of capital as thrift banks registered steady profitability (in the third quarter this year),” central bank deputy governor Chuchi Fonacier told local media.

There are over 50 thrift banks operating the Philippines as of end-June, according to central bank data, with leading mid-sized lenders including BPI Family Savings Bank, Philippine Savings Bank, RCBC Savings Bank, Philippine Business Bank and China Bank Savings.

Photo from Patrickroque01 at English Wikipedia, CC BY-SA 3.0

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