Philippine banks profits up 17.8% in Q1

Higher earnings from trading buoyed non interest income to $691.53m.

Philippine banks opened the year on stable footing as profits rose 17.8% YoY, according to preliminary data released by the central bank, with earnings of universal and commercial banks hitting $762.61m (PHP39.77b) in Q1. 

Operating income rose 18.5% to $2.57b (PHP134.1b) as net interest income jumped 14.4% to $1.88b (PHP98.04b). 

Non interest income also performed strongly after surging 31.6% to $691.53m (PHP36.06b) in Q1 due to higher profits from trading, fees and commissions. 

Volatile equities and financial markets, however, caused a $87.06m (PHP4.54b) loss in the Philippines’ banking system from the sale of securities which reverses the $53.12m (PHP2.77b) gains recorded the previous year. 

Foreign exchange profit also plunged a whopping 90.6% YoY to $3.15m (PHP164.57m) amidst the protracted weakness of the local peso against the greenback.