Top Philippine banks post 19% rise in net earnings

The Philippines’ 38 universal and commercial banks reported net earnings of US$1.3 billion in the first six months despite growing turmoil in world financial markets.

The Bangko Sentral ng Pilipinas (BSP), the central bank, said the total was a 19% improvement year-on-year. These banks’ net interest income grew 3.2% to US$2.4 billion year-on-year while non-interest income also rose, by 13.4% to US$1.6 billion.

During the first semester, the banks’ total interest income amounted to US$3.5 billion from P141.997 billion in June 2011. Interest income rose to US$3.4 billion from last year’s US$1.1 billion.

For the second quarter, the 38 banks’ return on equity rate slipped to 12.6% from March’s 13.1%. Return on assets stood at 1.57% from 1.63%.

BDO Unibank Inc. is the Philippines’ biggest bank based on asset size. Next to it are Metropolitan Bank and Trust Company, Bank of the Philippine Islands, Land Bank of the Philippines and Philippine National Bank.