Author Topic: Fitch Ratings remains optimistic on six Philippine banks  (Read 269 times)

MikeLigalig.com

  • FOUNDER
  • Webmaster
  • *****
  • Posts: 33284
  • Please use the share icons below
    • View Profile
    • Book Your Tickets on a Budget
Fitch Ratings remains optimistic on six Philippine banks
« on: March 03, 2017, 10:45:23 AM »
Fitch Ratings remains optimistic on six PHL banks
By Joann Santiago

MANILA, Feb. 28 (PNA) - - Operations of six Philippine banks that are being rated by Fitch Ratings are seen to remain robust with the expected sustained strong growth of the domestic economy, a report by Fitch Ratings said.

These banks are the Ayala-led Bank of the Philippine Island (BPI), Ty-led Metropolitan Bank & Trust Company (Metrobank), Sy-led BDO Unibank Inc. (BDO), China Banking Corp. (Chinabank), Tan-led Philippine National Bank (PNB), and Yuchengco-led Rizal Commercial Banking Corp. (RCBC).

Domestic consumption is seen to remain strong as it continues to be fuelled by inflows from Overseas Filipino Workers (OFWs) and the Business Process Outsourcing (BPO) sector.

“Credit demand should stay upbeat against this backdrop, although this places greater demands on the banks’ operating frameworks as they expand,” the report said.

Domestic demand is seen to remain resilient, it said, and pointed out that any impact of negative external environment on domestic growth may be countered by the Duterte administration’s bid to further increase infrastructure investments.

“We expect loan growth to remain in the mid- to high-teens in 2017-2018, backed by the supportive economic outlook,” the report said but noted that “overheating and over-investment will remain a risk amid persistent high loan growth, particularly since real-estate activity has been a significant source of credit growth over the last five years.”

The report, however, said recent moderation in residential property market in the heavily populated areas like Metro Manila “should help curb unrestrained growth in the sector. “

“The slowdown may hurt smaller, more concentrated developers, while we understand that larger, more diversified players would be able to shift their activities to areas with stronger demand,” it said.

Domestic banks continue to be funded by low cost current account and savings account (CASA) deposits, it noted, citing that funding sources give strong backing on bank’s lending activities.

Improvement of asset quality is seen to continue “owing to supportive economic environment and the banks’ ongoing efforts to manage and resolve their problem loans.”

“ The banks’ shift in focus to the consumer-lending segment may lead to higher NPL (non-performing loan) formation, but we expect the broadly steady operating environment to continue to support their overall asset quality in the near term,” it said.

“ We assess the banks’ profitability profiles as acceptable,” it said.

The report noted that although net interest margins (NIM) have declined in the last three years because of ample domestic liquidity and highly competitive banking system the hikes in US interest rates and demand for higher-yielding lending “should provide support for margins in the medium term.” (PNA)

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=85642.0
John 3:16-18 ESV
For God so loved the world, that he gave his only Son (Jesus Christ), that whoever believes in him should not perish but have eternal life. For God did not send his Son into the world to condemn the world, but in order that the world might be saved through him. Whoever believes in him is not condemned, but whoever does not believe is condemned already, because he has not believed in the name of the only Son of God.

👉 GET easy and FAST online loan at www.tala.com Philippines

Book tickets anywhere for planes, trains, boats, bus at www.12go.co

unionbank online loan application low interest, credit card, easy and fast approval

Tags: