The thrift banking industry continued to show resilience and robust performance marked by expansion in total assets, loans and deposits amid the challenging business environment.
Cecilio San Pedro, the president of the Chamber of Thrift Banks, said Wednesday the industry not only maintained its stability but also achieved substantial growth across various crucial metrics.
“The past year has been marked by a positive trajectory in the thrift banking sector’s performance,” San Pedro said.
Data showed that as of May 31, 2023, the sector’s total assets rose 5.3 percent to P943 billion from P895 billion a year ago, driven by the focus on deposit mobilization, which led to increased resources and overall stability.
Lending activity also showed expansion, with core lending figures rising by 14.6 percent to P616 billion from the previous year’s P537 billion.
“This growth is significant as it is the sector’s commitment to serving its designated operational niches, which include SMEs, housing, and consumers,” San Pedro said.
Its non-performing loan ratio remained manageable at 7.19 percent, reflecting the thrift banks’ proactive approach to risk management and asset quality.
The industry’s deposit liabilities exhibited a healthy 4.7 percent year-on-year growth to P713 billion from P681 billion a year ago. Total capital meanwhile surged by 12 percent from P135 billion to P151 billion.
The growth led to a robust capital adequacy ratio of 19.17 percent, based on the latest available data as of end-December 2022. This ratio surpassed the minimum required CAR of 10 percent, highlighting the sector’s financial strength and prudence.
San Pedro said the performance of the thrift banking sector took place amid difficulties brought on by the complexity of the digital transition, including worries about cybersecurity, heightened competition from fintech firms, the need for internet literacy and evolving regulatory requirements.
“Our member-banks are poised for a range of growth opportunities. These prospects include the ongoing digital transformation in banking,” San Pedro said.
