MANILA, Philippines - Philippine banks continued to be well-capitalized in June, according to the Bangko Sentral ng Pilipinas.
"The banks also remained adequately capitalized against risks as capital adequacy ratio (CAR) stood at 18% on solo and 19.3% on consolidated bases in June," the BSP said in a statement. This was an improvement from 17.75% on solo and 18.89% on consolidated bases last March.
The central bank also noted Tier 1 or high-quality capital remained robust at 16.5% on solo and 16.8% on consolidated bases in June.
The BSP said this showed the local financial system remains stable. "The Philippine financial system remained stable amid the sustained strength of the balance sheets of banks and non-bank financial institutions (NBFIs) under the jurisdiction of the BSP," it said.
Local banks' resources, which make up 80% of the financial system, rose 16.2% to P8.6 trillion in June.
"This rise was supported by a 12.3% expansion in loans, which was financed by an 18.3% increase in deposits during the period... These financial intermediaries also posted a 60 percent growth in net profits at the end of the first semester," the BSP said.
Gross non-performing loans was 3.3% of the banks' total loan portfolio.
In the first half of 2013, there were 683 operating banks with 8,860 branches, 13,129 automated teller machines, 391 microfinance banking offices and 212 banks with e-banking services.
"The strength of the financial system notwithstanding, the BSP continues to be vigilant against potential pressure points. This is in line with the BSP’s objective of promoting financial stability," the BSP said.