Thrift banks assets surged to P1t in 2023

The Chamber of Thrift Banks (CTB), the umbrella organization of the country’s thrift banks, marked its 50 years with a strong performance as total assets surged to P1.04 trillion as of end-2023, marking a 7.3-percent increase from the previous year’s P968.28 billion.

CTB said core lending also went up16.3 percent to P677.6 billion, indicating sustained lending activity in the sector’s niche market.

“In the past year, the thrift banking sector, under CTB’s leadership, demonstrated robust performance,” CTB president Cecilio San Pedro said.

Confidence in the sector remained high, with deposit liabilities growing by 6.5 percent year-on-year to P789.3 billion and total capital reaching P157 billion, reflecting a 10-percent increase and ensuring a robust capital adequacy ratio of 16.98 percent, above the required minimum of 10 percent.

San Pedro said non-performing loan ratio remained manageable at 6.4 percent, underscoring the sector’s prudent risk management practices.

“Over the past five decades, CTB has faced various challenges and seized numerous opportunities, playing a significant role in shaping regulatory reforms like the Thrift Banks Act of 1995,” said San Pedro.

“We have expanded our mission to promote economic development through savings mobilization and credit extension, particularly to SMEs and the housing sector,” he said.

CTB said it recognizes the significance of digitalization for innovation to continue the success of thrift banks. The organization integrates artificial intelligence (AI) to extend its efficiency in serving their customers.

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 risks effectively.

“AI enables thrift banks to revolutionize customer service by tailoring products and services to individual needs and automating processes,” San Pedro said.

“This leads to smoother experiences for customers and enhances their satisfaction and loyalty,” he said.