Bankers expect sustained earnings growth in next 2 years

Majority of Philippine banks continue to expect a double-digit growth in earnings over the next two years due to higher net interest margins supported by the elevated interest rate environment, the Bangko Sentral ng Pilipinas (BSP) said.

- KEISHA TA-ASAN

Based on the 2023 Banking Sector Outlook Survey (BSOS), the BSP said 76.5 percent of the respondents expected double-digit net income growth for the next two years.

All six digital banks viewed growth in their net income to be higher than 30 percent for the next two years.

Meanwhile, 53.3 percent of universal and commercial banks were more conservative in their estimates, projecting a net income growth rate of between 10 and 20 percent. This is two times higher than the 26.3 percent in the previous survey.

Foreign banks, thrift banks as well as rural and cooperative banks reported mixed projections for their income growth in 2024 and 2025.

"Profitability prospects remain encouraging on the back of a high interest-rate environment and improving macroeconomic conditions," the BSP said. "A larger proportion of respondent banks project a high net interest margin (NIM)," it added.