THE Chamber of Thrift Banks (CTB) said the thrift-banking industry continues to perform well, as consumer lending and deposit-taking posted strong double-digit growth in the first half of the year.
The industry sustained credit growth, as core lending rose by 17.28 percent to P616.026 billion, higher than last year’s P525.25 billion. This reflected sustained lending activity in its niche markets, mainly micro, small and medium enterprises, housing and consumers.
CTB President and Rizal Commercian Banking Corp. Savings Bank President Rommel S. Latinazo earlier said the outlook of the thrift-bank sector is that “it will continue to grow in terms of loan portfolio and profits.”
He said, “There’s some pressure on profit, but I think the industry will remain profitable.”
Thrift banks maintained their stability, marked by sustained growth in resources, lending and profitability, and supported by increased deposit mobilization, adequate capitalization, as well as enhanced asset quality.
Confidence in the industry remained high, as deposit liabilities reached P742.04 billion—higher by 11.24 percent year-on-year from the same period last year, which registered P667.085 billion.
The total capital of thrift banks reached P120.858 billion, higher by 30 percent than 2014’s P92.6 billion.
The industry showed a marked improvement in its loan and asset quality, as measured by both non-performing loans (NPLs) and non-performing assets (NPAs).
As of end-June 2015 the industry’s NPL ratio stood at 4.69 percent, down from 4.86 percent a year ago. Likewise, the NPA ratio improved to 5.37 percent, from last year’s 5.59-percent level. Past due ratio stood at 4.98 percent, from 5.16 percent a year ago.
Total assets stood at P925.083 billion as of June 30, 2015, higher by 12.94 percent from last year’s P819.103 billion.