PHL banks maintain optimistic outlook for next 2 years — survey
2 min read
PHILIPPINE BANKS expect to post double-digit growth in assets, loans, deposits, and net income in the next two years despite the current high inflationary environment and a looming global economic slowdown, the Bangko Sentral ng Pilipinas (BSP) said.
Results of the BSP’s Banking Sector Outlook Survey (BSOS) for the first semester of 2022 showed banking industry leaders maintained a positive growth outlook on their operations.
“The overall outlook for the banking system remained buoyant amid the slowdown in global economic activity and increasing commodity prices in the first half of 2022, following tightening in global financial conditions and the ongoing geopolitical tensions between Russia and Ukraine,” the BSP said.
Survey respondents include presidents, chief executive officers, country managers of all universal and commercial banks (U/KBs) and thrift banks, 80 rural and cooperative lenders, and two digital banks that account for 97% of the total assets of the banking industry as of end-December 2021.
Respondents were asked about their growth outlook, risk assessment, and business strategies within a two-year period. The survey is part of the BSP’s surveillance toolkit to help improve the banking system’s resilience.
“Majority of surveyed banks shared a stable outlook of the banking system in the next two years. This optimism was coupled with expectations of double-digit growth in assets, loans, deposits, and net income,” the BSP said.
However, the latest survey showed about 67.9% of banks see a stable banking system, which is lower than the 76.3% in the previous survey.
Around 32.1% of the banks expect a stronger sector in the next two years, significantly more than the 5.4% in the prior survey.
None of the respondent banks forecasted a weaker banking system for the two-year period.
Most lenders expect their assets to grow between 10% and 15%, while digital banks projected asset growth up to more than 20%.
“The expansion in bank…
BusinessWorld
2023-04-02 12:32:19
All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator
Read more from original source here…
About Author
