Bank profits climb to ₱300B at end-Sept.

The local banking industry's total earnings climbed in the first three quarters of the year, driven by the sharp increase in income generated from both core lending activities and fee-based businesses, despite higher provisioning for future losses.

- By DERCO ROSAL

Data from the Bangko Sentral ng Pilipinas (BSP) showed that higher interest and non-interest incomes increased Philippine banks' earnings by 3.6 percent in January to September to ₱300.4 billion from ₱290.1 billion in the same period last year.

At end-September, banks' cumulative net interest income rose 11 percent to ₱851.5 billion, from ₱767 billion a year earlier.

This income represents the difference between interest earned and the total provisions for losses on accrued interest from financial assets, along with interest expenses.