PH Banks Reached A Record-High ₱309 Billion Profit In 2022

Philippine banks recorded a 37.5% increase hitting an all-time high profit of ₱309 billion in 2022 due to higher interest income despite aggressive rate hikes by the Bangko Sentral ng Pilipinas (BSP) and higher trading gains.

The BSP said the Philippines managed to sustain its momentum with the gross domestic product increasing by 7.6%, slightly above the set target of 6.5 to 7.5%.

Director for institutional ratings at S&P Global Ratings Ivan Tan said the profitability of banks would continue to improve despite the expected slowdown in credit growth due to rate hikes by the BSP Monetary Board.

“We think the twin factors of a rising interest rate environment and persistently high inflation might cross out a lot of growth that we will see,” Tan said.

Source: Philstar