From Teetering to Regaining

Left and right we hear money managers say that the economy is set for a rebound after almost experiencing a national recession.  Although many - if not all, industrialized countries and emerging economies suffered recession, we were luckily spared.  As I was reading the business section of the Philippine Star yesterday, I saw an article which caught my attention.  Another green flag on the economy.  

Looking back, this was not the case about a month ago.  In a statement, Romulo Virola - senior official of the economic planning ministry said this “The Philippine economy is now teetering into recession.”  To which then Economic Planning Adviser and NEDA Chair Ralph Recto disagreed to.

I quickly checked the net and I found a very similar report, here it goes: (dear writer, pardon me for highlighting some words in the article)

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Higher Profit for Metrobank

Metrobank profit up 11%

Gerard S. dela Peña, Business World, August 17, 2009

TY-LED Metropolitan Bank and Trust Co. (Metrobank) said its net income jumped by a little over a tenth in the first half due to sustained growth in its lending and treasury operations.

In a statement released during the weekend, Metrobank said its net profit for the six months ending in June grew by around 11% to P3.1 billion from P2.8 billion in the same period last year.

“Interest margins and trading gains contributed strongly to the bottom line even as we provisioned aggressively and improved our cost income ratio,” Metrobank President Arthur V. Ty said in the statement.

“Our performance for the first half of the year reflects our continued focus on risk management and operational efficiency.”

Metrobank, the second largest lender in the country, said its net interest income or earnings from lending activities and held-to-maturity investments grew by 30% to P13.8 billion during the period as growth of low-cost deposits made funding of loans cheaper.
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Lower NPL, Stronger Financial System

Banks’ NPL ratio hits 3.36% in June, lowest since October 2001

By IRIS C. GONZALES

The Philippine Star, Saturday, August 15, 2009

The country’s universal and commercial banks’ recorded its lowest non-performing loan (NPL) ratio in June, hitting 3.36 percent, the lowest figure since October 2001 when the ratio peaked at 18.81 percent, the Bangko Sentral ng Pilipinas (BSP) [Central Bank of the Philippines] reported yesterday.

The 3.36 percent ratio was lower by 0.33 percent point than the 3.69 percent recorded in May; And by 0.65 percentage point from the year ago figure of 4.01 percent.

The BSP said the ratio improved as banks’ total loan portfolio improved alongside the decline in bad loans.

Bad loans decline by 5.18 percent to P84.62 billion from the previous month’s P89.25 billion while banks’ total loan portfolio grew by 4.09 percent.
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Let’s Support Jen Natividad - Mutya ng Pilipinas Candidate # 8

I have been out for some time.  Months really!  I wasn’t able to post on this blog due to other things on my priority list.  For my readers, I did miss putting things up on this site.  Hopefully, I can post more often now.