The net result of the banking sector improved at the end of September.

The Philippine banking sector recorded higher net profit in the first nine months of 2021 despite lower income streams, as losses on financial assets also declined.

The cumulative net income of the banking system rose 35% to 168.213 billion pesos in September, from 124.554 billion pesos during the same period in 2020, based on preliminary data released Thursday by the Bangko Sentral ng Pilipinas ( BSP).

Net interest income was 485.005 billion pesos from January to September, down 4% year-on-year from 505.29 billion pesos. This, while interest income fell 11% to P572.38 billion, while expenses fell 40% to P86.871 billion.

Meanwhile, non-interest income fell 5% to 164.576 billion pesos in September, from 173.368 billion pesos in the same period in 2020.

Dividend and trading income during the period fell 29% and 22% from a year ago, to 1.838 billion pesos and 75.475 billion pesos, while income from fees and commissions fell. increased by 18% to 76.125 billion pesos.

Non-interest charges of lenders increased 1.85% year-on-year to 373.417 billion pesos from 366.603 billion pesos.

Industry losses on financial assets fell 48% to 83.55 billion pesos at the end of September, from 161.379 billion pesos a year earlier.

Provisions for credit losses fell 44% to P90.344 billion from P 161.123 billion, while bad debts jumped 126% to P 6.364 billion from P 2.814 billion.

The banks’ total loan portfolio increased 2.63% to 10.959 trillion pesos at the end of September, from 10.678 trillion pesos a year earlier.

Meanwhile, deposit liabilities stood at 15.643 trillion pesos at the end of September, up 8.8 percent year-on-year from 14.377 trillion pesos.

Assets in the local banking sector rose 7.2 percent to 20.079 trillion pesos at the end of September, from 18.724 trillion pesos a year earlier. – LWT Noble


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