THE local banking system’s balance sheet posted double-digit growth in May this year, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
Philippine banks’ total assets in May this year hit P15.56 trillion. This is a 12.2-percent growth from the P13.87 trillion in the same month last year.
In end-2017 the local banks’ total asset pool grew by 11.59 percent, from its level in end-2016.
BSP Governor Nestor A. Espenilla Jr. said the expansion of the banks’ total assets was funded by the 12.5-percent growth in deposits mostly deployed to lending activities.
Espenilla said the loans were broad-based across various borrower and industry types.
The BSP governor further lauded the banking system’s health and profitability in 2018, as buoyed by the increase in core income from lending activities.
“Banks continue to adhere to sound credit underwriting standards as shown by the very satisfactory quality of the banking system’s loan portfolio. Moreover, banks are well prepared to bear credit losses as they have set up adequate provisions for possible defaults,” Espenilla said.
“Moving forward, we expect further expansion of the banking system, sound asset quality, adequate liquidity and rising capital buffers. The trajectory for profit growth will continue, driven mainly by strong growth outlook, upbeat lending activities, product innovations, and more cost-efficient and technology-enabled operations,” he added.
At the recently held reception for the banking community, the Central Bank governor commended the leaders of the banking industry for pursuing reforms, such as raising risk-management standards and aligning corporate governance with international best practices.