Thursday, 31 March 2011

57 biggest banks report P83.4-b profits, up 31%

by Roderick T. dela Cruz
Manila Standard

Combined profits of the 57 largest banks in the Philippines rose by nearly a third in 2010, spurred by strong economic activities, low borrowing cost and large flows of money last year.

Data from the Bangko Sentral showed that the total income of the 38 universal banks and 19 commercial banks hit P83.364 billion in 2010, up 30.8 percent from P63.722 billion in 2009.

Total deposits in these banks increased 5.1 percent to P4.337 trillion from P4.126 trillion a year ago while total resources went up by 7.5 percent to P5.894 trillion from P5.483 trillion.

Bangko Sentral Governor Amando Tetangco Jr. noted the country’s favorable economic performance, with a gross domestic product growth of 7.3 percent in 2010, the highest in 34 years.

“Domestic liquidity has been robust at 10 percent per annum while bank credit has been rising between 10 and 11 percent,” he said.

He said banks’ balance sheets had been strengthening, with non-performing loan ratios improving to below the pre-1997 crisis level of 4 percent.

“NPL ratio of universal and commercial banks is at a low of 3 percent now while the capital adequacy ratio of banks has been above the regulatory standards. The capital adequacy ratio of universal and commercial banks is now between 15 and 16 percent,” Tetangco said.

The largest banks reported record profit in 2010, on a double-digit growth from a year ago.

Bank of the Philippine Islands, the country’s third largest, said net income surged 33 percent to P11.3 billion in 2010 from P8.5 billion in 2009, on the back of higher loans, deposits and trading gains. BPI was the most profitable bank last year.

BPI president and chief executive Aurelio Montinola III said “2010 proved to be a good year for the banking industry and for BPI in particular.”

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