Philippine banks have registered a rise in net profits during the first half of the year, attributed to increased net interest income and growth in loan portfolios, as per data from the central bank.
Additionally, the nonperforming loan (NPL) ratio of the banking sector saw a decrease in June after five consecutive months of escalation, reaching its lowest point in two months.
The cumulative net income of the banking system surged by 24.7 percent to P178.51 billion in H1 2023 from P143.12 billion in the same period last year, according to preliminary figures from the Bangko Sentral ng Pilipinas (BSP).
Net interest income amounted to P414.45 billion during January to June, marking a 16.9 percent increase year-on-year from P354.32 billion.
The total operating income of Philippine banks saw a significant rise of 56.1 percent to P736.16 billion by June, from P471.32 billion in the prior year. Interest earnings rose by 40.9 percent to P577.23 billion, while expenses nearly tripled (195 percent) to P162.6 billion from P54.97 billion a year ago.
On the other hand, non-interest income experienced a 7.7 percent dip to P107.94 billion as of June, from P117.01 billion in the same period of 2022.
