The Chamber of Thrift Banks (CTB) reported gross loans rising 13 percent in 2014, to P570.89 billion from P505.22 billion a year earlier on sustained lending activity in its niche markets.
CTB President and RCBC Savings President Rommel Latinazo also said loan growth for the thriftbank industry should grow in double digits this year on the back of sustained economic growth.
Looking forward, he said demand for loans should continue, particularly from the micro, small and medium enterprise (MSME) borrowers.
Over the years, the thrift banking industry supported and reached out to the depositors and borrowers, especially in the countryside.
“The loan growth will be sustained in areas, where we have our presence. A lot of developments are happening in Metro Manila. We see growth in Metro Cebu and Metro Davao and there’s a lot of opportunities offered in provinces,” Latinazo said.
“While thrift banks make up about only 8 percent of the total resources of the banking system, we have provided solutions to the ever-growing needs and challenges faced by SMEs,” he added.
The industry’s credit growth of 13 percent in 2014, the chamber said, reflect sustained lending activity in its avowed niches of operation, the MSMEs, housing and consumers.
Thrift banks continued to provide support to the domestic economy given the broad-based growth in loans and investment inflows to key economic sectors.
As of end-December 2014, more than one-third of the industry’s loan portfolio went to the real-estate segment, accounting for 35.37 percent of total loan portfolio, or P201.91 billion. This shows the viability of middle-income housing projects, the chamber said.
Loans to individuals for consumption purposes followed with 29.20 percent share, or P166.70 billion, while wholesale, retail trade and repair of motor vehicles was on third spot at 8.59 percent, or P49.03 billion. The three sectors accounted for the bulk of the industry’s total loan portfolio equal to 73.16 percent.
As of September 2014 figures, the Bangko Sentral ng Pilipinas (BSP) said thrift banks focused more on MSMEs.