Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the double-digit growth in the domestic banks’ business loan portfolios lifted their sector’s assets by 11.3% in September.
According to the BSP, the banking sector’s total assets reached P26.73 trillion during the month, up from last year’s P24 trillion. It was also higher than the P25.9 trillion total assets in August this year.
Rizal Commercial Banking Corporation analyst Michael Ricafort said the higher income of banks contributed to the growth in assets.
“The continued growth in banks’ net income may be attributed to the double-digit growth in banks’ loan business, up by +11% year-on-year for the biggest banks that boosted banks’ interest income,” Ricafort said.
The latest data from the BSP showed that banks’ net income amounted to P290.05 billion as of the end of September this year, up from P272.55 billion in the same period last year.
Ricafort said increased banking transactions due to continued recovery in the local economy led to the continued growth in banks’ deposit transactions and other banking services, resulting in higher revenues such as fees.
“Thus, continued growth in net income led to higher capitalization of banks that enabled banks to increase lending and other investment activities, thereby leading to continued growth in banks’ resources,” he said.