PHL banks post 12% income growth in first 9 mos.

(Updated 4:52 p.m.) Philippine universal and commercial banks registered double-digit growth in the first nine months of the year, the Bangko Sentral ng Pilipinas said Tuesday. Despite the euro zone debt crisis and a slowing global economy led by the United States, Philippine banks’ earnings grew 12.2 percent in the nine months to September from a year earlier, central bank data showed. Their combined net income totaled P69.63 billion, up P7.6 billion from P62.03 billion in the same comparable period. Interest income increase by 4.7 percent to P215.15 from P205.48 billion, against the industry’s interest expense that went up by 1.34 percent to P69.84 billion from P68.91 billion, according to the Bangko Sentral. However, non-interest income declined by 1.92 percent to P83.57 billion from P85.21 billion as gains from financial assets and liabilities held for trading registered steep fall. Non-interest expense went up by 5.3 percent to P144.96 billion from P137.7 billion on higher compensation and fringe benefits, taxes and licenses, the Bangko Sentral reported. Banks also posted foreign exchange gains of P2.30 billion in the first nine months, from a loss of P2.34 billion a year earlier, as the peso continued to strengthen against the US dollar. The industry’s return on equity was 12.44 percent from 12.24 percent year-on-year, while return on assets was 1.52 percent from 1.44 percent. Last year, Philippine banks earned P83.36 billion from P63.72 billion in 2009. — VS, GMA News