LOANS disbursed by thrift banks grew by 16.3% to P677 billion in 2023 from P582.9 billion in the previous year, an industry official said.
“The thrift banking industry maintains its stability and showed encouraging growth, with key indicators such as sustained growth in resources, supported by increased deposit mobilization and adequate capitalization,” Chamber of Thrift Banks (CTB) President Cecilio D. San Pedro said in a speech at an event on Friday.
The sector’s nonperforming loan ratio stood at 6.46% as of end-2023, he said.
On the funding side, total deposits rose by 6.5% to P789.3 billion from P740.8 billion.
“As of Dec. 31, 2023, total assets stood at P1.04 trillion, higher by 7.3% vs. P986.20 billion in 2022,” Mr. San Pedro said.
Total capital increased by 10% to P157 billion from P142.8 billion, while the industry’s capital adequacy ratio stood at 16.98%, well above the Bangko Sentral ng Pilipinas’ (BSP) minimum 10% requirement, he noted.
Mr. San Pedro said the CTB will be hosting training programs for its member banks this year on sustainable finance, environmental social risk management and risk management compliance frameworks, as well as the BSP’s initiatives on digital transformation and cybersecurity.
The CTB is also urging its members to submit their data to the Credit Information Corp. to avoid penalties and ensure a robust data ecosystem, he said.
Mr. San Pedro also reiterated the CTB’s opposition to a bill proposing to cap interest rates imposed by financial institutions, noting this could result in slower credit growth and that rates should be market determined to allow for flexibility. — A.M.C. Sy