The thrift banking industry expects consumer loan demand to remain robust in the last two quarters of the year.
Chamber of Thrift Banks (CTB) President and RCBC Savings Bank President Rommel Latinazo said they continue to be optimistic as they see growth in consumer lending.
“RCBC Savings and the thrift banking industry continue to forecast positive growth in our businesses. The objective of the players is to do better than the industry. If you do well, you’re increasing your market share,” he told the BusinessMirror.
“RCBC’s consumer loan has been growing 20 percent in last three years. We’d like to sustain that,” he said.
The 55-strong thrift bankers see bigger
opportunities to expand their markets
mainly to micro, small and medium
enterprises, housing and consumers.
In the first half of the year, the industry saw core lending rising 17.28 percent to P616.026 billion, higher than the year ago level of P525.252 billion.
The thrift bank industry has maintained its stability. Total assets stood at P925.083 billion as of June 30, 2015, higher by 12.94 percent than last year’s P819.103 billion.
Total deposits went up to P742.040 billion in the first half, higher by 11.24 percent from last year’s comparable figures of P667.085 billion.
Thrift banks’ total capital reached P120.858 billion, higher by 30 percent than a year ago’s P92.600 billion.
Latinazo said there were acquisitions of thrift banks in the past, and the sale of another thrift bank, Bataan Savings and Loan Inc., is now in the process.
However, he said, they have approved the application of a new thrift bank member during the recent CTB general membership meeting.
“The number of members would go down because it’s a period of consolidation, in line with what the Bangko Sentral ng Pilipinas has designed,” he said.
“On a consolidated basis, assets were growing. The industry is growing,” he added.
Meanwhile, CTB Trustee and Philippine Business Bank Inc. (PBB) Chairman Emeritus Alfredo Yao said the bank’s expansion plans will continue.
Meantime, they are still working on the acquisition of Bataan Savings and Loan Inc.
PBB is acquiring the Bataan bank for P63.9 million. The lump sum will be held under escrow account to be released upon the BSP’s approval.
He remains optimistic that they will hit their bottomline target for this year.
“Our net income growth will be more than what we expect,” he told the BusinessMirror.