Banks’ Q1 deposit liabilities hit P12T
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Mon, 01 Jul 2019 16:20:35 +0000
The total domestic deposit liabilities of the Philippine banking industry reached P12.674 trillion as of end-March, up from a year earlier but down from the quarter ago, the Philippine Deposit Insurance Corp. (PDIC) reported on Monday.
In a report, the state-run deposit insurer said deposit liabilities posted an increase of P729.7 billion, or 6.1 percent from the P11.945 trillion a year ago.
But from a quarter ago, domestic deposits contracted by P70.8 billion or 0.6 percent from the P12.745 trillion at end-December 2018.
Explaining the quarter-on-quarter decline, PDIC said “the marked slowdown in deposit amount growth reflects the decelerated growth in all bank types but thrift banks.” It noted that thrift banks showed a faster-than-last-year increase at 5.5 percent.
Deposit amount in commercial banks expanded only by 6.2 percent while that in rural banks slightly decelerated to 6.3 percent compared from the previous year.
Accounting for the bulk of the industry domestic deposits were commercial banks with 90.8 percent of the total, followed by thrift banks with 7.8 percent and rural banks with 1.4 percent.
Meanwhile, PDIC noted a 12.1-percent increase in total domestic deposit accounts to reach 65.2 million as of end-March this year as “growth rates were higher than in the previous year across all bank types.”
Savings deposits and time deposits were the main types of deposit products, which jointly accounted for 74.8 percent of the total domestic deposit during the period.
Individuals and private corporations made up 79 percent of the total domestic deposits in the industry, while 13.8 percent belonged to government.
PDIC said fully insured deposit accounts, or deposit accounts with balances within its maximum deposit insurance coverage of P500,000, comprised 96.3 percent of the total domestic deposit accounts and represented 11.9 percent of the total.
This is equivalent to P1.5 trillion, up by 7.5 percent from the same period in the previous year.
To recall, seven banks were already place under the PDIC receivership so far this year.
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