The commercial banking system’s net loans slipped slightly to P1.457 trillion in August 2002 from the P1.471 trillion recorded in July, but grew by 16 percent from the P1.434 trillion registered in the same period last year.
Based on BSP report, total deposits improved to P2.019 trillion in August this year from P1.938 trillion a year ago.
Total investments by the commercial banks amounted to P777.775 billion in Aug. this year which was slightly better than the P765.97 billion in July. It was better by 7.8 percent compared with last year’s P721.198 billion in the same period last year.
The BSP said the industry expanded due to its ability to deftly manage marketing conditions as its corporate clients proceeded with some borrowings "with extreme caution."
The decision of the industry to shift focus to alternative sources of income also help boost the industry’s performance. Trading gains in government securities, profits on sale or redemption of investments, and other fee-based income brought in revenues, the BSP said.
By end August, liquid assets was at a healthy P964.29 billion from P933.337 billion in the same period last year.
Loan reserves amounted to P138.328 billion in August up 12.9 percent from P122.518 billion last year.
Meanwhile, the non-performing loans (NPLs) ratio of the commercial banking system improved slightly to17.58 percent in the first half of the year compared with 18.03 percent the year before.
Non-performing assets (NPAs) to total assets increased slightly to 14.56 percent in the first six months of the year versus the 14.05 percent in June 2001.