Philippine banks’ nine-month earnings rise 4.2 per cent
Currency losses and higher provisions for credit losses partly offset stronger interest earnings, with net profit reaching ₱315.47 billion.
The Philippine banking industry recorded ₱315.47 billion in net profit for January–September, a 4.2 per cent annual increase, figures from the Bangko Sentral ng Pilipinas showed. Earnings in the corresponding period a year earlier were ₱302.62 billion.
Interest earnings supported the increase, but foreign exchange losses and larger provisions for potential bad loans limited profit growth. Banks set aside ₱168.69 billion against possible credit losses, compared with ₱135.16 billion a year earlier.
Operating revenue totalled ₱1.16 trillion, increasing 10.2 per cent. Net interest income reached ₱979.09 billion after a 13.5 per cent rise. Interest revenue grew 9.8 per cent to ₱1.34 trillion, while interest expenses increased 0.7 per cent to ₱356.35 billion.
Outside interest earnings, revenue dropped five per cent to ₱178.09 billion. Banks posted currency losses of ₱35.87 billion, against foreign exchange gains of ₱9.06 billion a year before. Fee and commission earnings rose seven per cent to ₱144.30 billion, and trading revenue climbed to ₱31.43 billion.
Higher staffing and administrative costs contributed to a 9.8 per cent increase in non-interest expenses, which reached ₱638.46 billion.
By the end of September, banks held assets worth ₱31.6 trillion, an annual rise of 9.8 per cent. Their gross loan portfolio reached ₱18.13 trillion, increasing 11.4 per cent, while deposit liabilities stood at ₱22.64 trillion after growing 7.5 per cent.
