Thrift banking industry sees double-digit growth this year

The thrift banking industry sees a double-digit growth this year due to improving small and medium enterprises (SME) sector and the robust Philippine economy. At a press briefing in Makati City on Wednesday, Chamber of Thrift Banks president Jose Teodoro Limcaoco said they expect to sustain this year the 17-percent loan growth the industry recorded last year. "We are bullish on the [Philippine] economy,” he said. “Thrift banks are well-poised to take advantage of this economic growth." "The real estate industry will be very strong in provincial areas. Aside from that, we see more SMEs pushing forward with their expansion plans. We also see new markets to be opened for us this year," Limcaoco added. Data from CTB showed that as of June 2012, about one-third of the industry's loan portfolio went to the real estate segment, registering a 33.7-percent share or P146 billion. Loans to individuals for consumption purposes, meanwhile, was second with 24-percent share or P104.1 billion, while financial intermediation was on the third spot at 15.5 percent or P67 billion. The three sectors accounted for the bulk of the industry's total loan portfolio at 73.2 percent. Thrift banks are composed of savings and mortgage banks, private development banks, stock savings and loan associations and micro finance banks. As of Dec. 31, 2012, there are 70 thrift banks nationwide, composed of 28 savings and mortgage banks, 19 private development banks, 20 stock savings and loan associations, and three micro finance-oriented banks. Thrift banks have about 1,627 offices nationwide. Through its wide branch network, the industry currently services over 4.9 million deposit accounts. — KBK, GMA News