The combined assets of savings banks in the Philippines topped the P1-trillion market for the first time in 2023.
The Chamber of Thrift Banks (CTB) said the total assets of its members surged 7.3 percent to P1.04 trillion as of Dec. 31, 2023 from P968.28 billion in 2022.
The core lending experience also expanded 16.3 percent to P677.6 billion, reflecting the sustained lending activity within the sector’s niches.
Meanwhile, confidence in the sector remained high, with deposits growing 6.5 percent year-on-year to P789.3 billion as of end-2023.
The total capital of thrift banks reached P157 billion, showing a 10-percent increase from a year earlier and ensuring a capital adequacy ratio of 16.98 percent, above the required minimum of 10 percent.
CTB president Cecilio San Pedro said the non-performing loan ratio of the thrift or savings banks remained manageable at 6.4 percent, underscoring the sector’s prudent risk management practices.
San Pedro also highlighted the adoption of artificial intelligence (AI) and its significance for the digitization of banks.
“AI enables thrift banks to revolutionize customer service by tailoring products and services to individual needs and automating processes,” he said.
San Pedro said AI holds the promise of unlocking valuable insights from vast amounts of data, empowering thrift banks to make informed decisions, anticipate market trends and mitigate risk effectively.
Be the first to comment