Foreign currency deposits dip but remain profitable – Business – GMANews.TV – Official Website of GMA News and Public Affairs – Latest Philippine News

Despite the decline in total assets of the Philippine foreign currency deposit unit (FCDU), they still remained profitable as of end-June.

In a statement, the Bangko Sentral ng Pilipinas reported that FCDU decreased 2.3 percent or $0.5 billion to $24.8 billion but still posted an annualized net profit.

As of end June, FCDU net profit reached $476 million, lower by $140 million or 22.7 percent from $616 million in the same period last year.

The decline in net profit was mainly attributed to the effects of the “global financial meltdown”.

FCDU is a unit of a bank allowed by the central bank to transact using foreign currencies such as deposit-taking and withdrawals.

Consequently, the annualized return on assets ratio dropped 1.9 percent from 2.5 percent.

Universal and commercial banks accounted for nearly all, or 95 percent or $23.6 billion, of the total FCDU assets, while thrift banks held the balance of five percent or $1.2 billion. Rural and cooperative banks only contributed less than a million dollars.

FCDU assets were mainly in the form of deposits, growing by 6.1 percent to $21.8 billion.

Meanwhile, loans given by FCDus improved 1.4 percent to $4.6 billion from $4.5 billion a year ago.

About 82 percent of the total loans were given to resident borrowers while non-resident borrowers got 18.3 percent or $0.8 billion.

Loans given to residents were mostly channeled to the manufacturing sector at 34.5 percent or $1.3 billion.

The transport, storage and communications sector got 18.3 percent to $0.7 billion. Electricity, gas and water sector ranked third at 15 percent or $0.6 billion. These top three sectors constituted 67.8 percent of the total FCDU loans to residents. -GMANews.TV

Posted: 06月 27th, 2010 under Uncategorized.

Comments