By Joanne Santiago
PNA
The record high prices of oil and food in the international market that resulted in the volatilities in the capital markets did not dampen the growth of the domestic trust industry after it posted a double-digit growth in the first half of 2008.
The Bangko Sentral ng Pilipinas (BSP), in its Status Report on the
Philippine Financial System for the first six months this year, said the trust industry grew by 10 percent this year.
It, however, said that this is a big drop from the 20.7 percent it posted during the same period in 2007 and the 34.9 percent in the second half of 2007.
BSP attributed the growth of the trust entities assets to the 25.1 percent expansion of investment management account (IMA), which, on the other hand, is a far cry from the 116.8 percent growth it registered during the same period last year.
Trust and other fiduciary accounts (TOFA) expanded faster from January to end-June this year at about 15.8 percent from the 12.7 percent year-ago, the central bank said.
Lower figures was also noted in the common trust funds/unit investment trust funds (CTFs/UITFs), which posted a 23.4 percent growth “as investors opted for higher yield trust products.â€
“Risk-aversed client investors were drawn towards IMA, which were largely placed in the special deposit account,†the central bank reported.
From January to June this year, the industry’s assets and accountabilities totaled to P1.18 billion or a 10 percent jump amounting to P106.8 billion from year-ago’s P1.07 billion.
Trust resources during the same period had a 22.1 percent share of on-balance sheet accounts of the country’s financial system.
Universal and commercial banks (U/KBs) remained the industry’s prime mover as they account for 94.5 percent to the sector’s total assets. U/KBs’ total asset during the period grew by 13.3 percent to P1.11 trillion from year-ago’s P982.2 billion.
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