BSP: Philippine financial system sustains positive growth in 2017

MANILA, Philippines — The Philippines’ financial system sustained its growth momentum in 2017 amid volatilities in market conditions, the Bangko Sentral ng Pilipinas said, with the country’s banking system managing to maintain its profitability on the back of strong interest income from lending activities.

“The banking system, which is the core of the financial system, remained sound as shown by the further strengthening of banks’ balance sheets with positive double-digit growth in assets, loans, investments, deposits and capital,” the BSP said in a statement on Friday.

Data released by the central bank show the banking system booked an annual asset growth of 11.6 percent to P15.2 trillion last year on account of 16.4 percent loan expansion to P8.9 trillion.

Net profit went up by 9.0 percent to P167.6 billion. Meanwhile, banks reported an improvement in non-performing loan ratio to 1.7 percent and a strong capital adequacy ratio of 15.0 percent.

Lenders likewise kept sufficient liquidity.

The BSP also said banks are making progress in expanding their geographic footprint, as well as taking advantage of opportunities from utilizing digital technology in financial transactions.

“Overall, the Philippine financial system’s positive performance in 2017 has been grounded on the BSP’s sustained implementation of proactive reforms that will raise the bar on risk management systems, promote sound liquidity and capital positions, and enable greater access to financial services,” monetary authorities said.

“Banks’ commitment to these reforms and prudent risk-taking ensure the stability and soundness of the financial system,” they added.