A major credit ratings agency said it expects Philippine banks to sustain double-digit growth over the next two years on solid economic growth, corporate profitability, low interest rates and a drop in non-performing loans.
S&P Global Ratings said in a report that “Philippines banks [will] continue to ride robust economic growth.” It said the outlook for banks in the Philippines would remain stable over the next 12 months, reflecting supportive economic conditions and sound financial fundamentals.
“We believe the combination of sound capital and funding profiles is an enduring strength of the Philippine banking system and will continue to underpin ratings on the country’s banks in 2017,” S&P Global Ratings credit analyst Ivan Tan said.
S&P Global said the banking sector in the Philippines was expected to grow 15 percent to 17 percent in 2017 and 2018, after a 16.5-percent expansion in 2016. “We believe that the credit cycle in the Philippines has further to run,” Tan said.