Big Banks Register 15% Annual Earnings Growth in 9 Months

Manila Bulletin, December 4, 2012 | Go to article overview
Save to active project

Big Banks Register 15% Annual Earnings Growth in 9 Months


The country's 37 universal and commercial banks reported a 15 percent year-on-year income growth for the first nine months of the year as loans and deposits, as well as trading gains continue to prop up profits.

Based on data from the Bangko Sentral ng Pilipinas (BSP), as of the end of the third quarter, the big banks posted profits of P80.113 billion, up from same period last year of P69.628 billion.

The universal and commercial banks, which control 97 percent of the total banking resources, reported modest net interest income growth of 2.8 percent to P149.239 billion.

The trading gains-driven non-interest income however surged 16 percent year-on-year to P96.88 billion. Trading in treasuries or securities continue to be one of the industry's main but largely speculative source of revenues.

For the third quarter period, the big banks' return on equity rate dropped to 12.33 percent from the same time in 2011 of 12.44 percent. Return on assets, in the meantime, rose to 1.58 percent from 1.52 percent.

BSP data also showed that the banks' cost to income ratio was higher at 63.74 percent from 62.7 percent last year.

In a report the central bank said the expanding economy, which grew 7.1 percent in the third quarter for a full nine-month growth of 6.5 percent and exceeding the 5-6 percent government targets for 2012, is providing the banking system ample range to grow and help it fulfill its role of strengthening the financial system.

With banks' delivering double-digit growth for the past year on expanding loans, deposits and assets accounts, the BSP said asset quality and solvency indicators have been improving.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
Loading One moment ...
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited article

Big Banks Register 15% Annual Earnings Growth in 9 Months
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

While we understand printed pages are helpful to our users, this limitation is necessary to help protect our publishers' copyrighted material and prevent its unlawful distribution. We are sorry for any inconvenience.
Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.

Are you sure you want to delete this highlight?