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Banks’ trust assets up 12.76% end-June


By Lee C. Chipongian

Big banks’ managed assets were up 12.76 percent to P2.703 trillion as of end-June from same time in 2018 of P2.397 trillion, based on Bangko Sentral ng Pilipinas (BSP) data.

Banks’ trusts, other fiduciary business, and investment management activities showed a huge drop in cash and due from banks – mostly from the BSP as balance of deposit accounts kept in the central bank – P670 million in the first half or down by 46.95 percent compared to last year’s P1.263 billion.

The BSP said deposit in banks increased by 3.77 percent year-on-year to P797.95 billion. Net financial assets and net loans, in the meantime, went up by 27.28 percent and 9.75 percent year-on-year, respectively, to P1.577 trillion and P45 billion as of end-June.

The universal and commercial banks’ net equity investments – under its asset holdings – fell significantly to P681 million compared to same time last year of P74.70 billion. Other assets rose to P280 billion from P270 billion end-June 2018.

The banking system’s asset structure is largely influenced by the 45 universal and commercial banks which are almost 60 percent gross loans, about 24-25 percent financial assets and the rest are cash and due from banks.

A report from the BSP explained the lower gross loans and net investments as well as the decline in cash and due from banks as stemming from the big banks’ asset group rebalancing and the banking system’s account movements.

In the meantime, banks’ unit investment trust funds continue to decline at P398 billion end-June this year from P503.62 billion in 2018 or a drop of 20.87 percent. Pre-need trusts was steady at P76.75 billion from P76.45 billion last year while personal trusts inched 1.72 percent up to P177.92 billion. Overall trust account liabilities – which include UITF et al — totaled P990.59 billion in the first six months from P1.049 trillion last year.

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