CV bank deposits up 14% in first half to P454 billion

CEBU, Philippines - Bank deposits in Central Visayas continued to grow in the first half of 2015 as branches and depositors also increased, latest data from the Philippine Deposit Insurance Corp. (PDIC) showed.

The PDIC data bared that money deposited in banks in the region reached P454.2 billion in the first six months ended June, up 14% from P396.7 billion in the same period last year.

Bank branches also rose to 671 from 636 while depositors reached 3.1 million from 2.9 million.

The region's provinces -- Cebu, Bohol, Negros Oriental and Siquijor -- all posted increases in deposit accounts, number of depositors and branches.

Cebu accounted for over 75% of total deposits in Region 7 at P385.2 billion in January-June 2015 period from P339.7 billion a year ago. Bohol recorded deposits of P32.9 billion while Negros Oriental and Siquijor raked in deposits of P34.3 billion and P1.8 billion, respectively.

"The robust economic environment and continuing expansion of branch network of banks nationwide boosted deposit growth," PDIC said in an earlier statement.

Deposits reached P8.6 trillion nationwide in June 2015, up by almost 9% from P7.9 trillion in June 2014. Nationwide, deposit accounts was also up 5.1% to 49.3 million from 46.9 million while bank branches stood at 10,334 as of June 2015 from 9,793 in June 2014.

The state deposit insurer noted more depositors continued to entrust their savings in banks.

PDIC said 96.6% or 47.6 million of total deposit accounts are fully insured as of June 2015. In terms of amount, 22.7% or P1.95 trillion of the P8.6 trillion total deposits in the banking system is insured. PDIC's maximum deposit insurance coverage is P500,000 per depositor per bank.

Citing data from the Bangko Sentral ng Pilipinas, PDIC said 595 or 36.4% of municipalities and cities do not have banks yet despite the bank branch network expansion nationwide.

The state-run firm said the Autonomous Region in Muslim Mindanao (ARMM), Eastern Visayas (Region 8) and Cordillera Administrative Region (CAR) are the top three regions with the high number of unbanked municipalities and cities.

"This presents opportunities for growth for banks," it said.   (FREEMAN)