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Manila, Philippines - Total bank deposits continued to post healthy growth after expanding by 8.9 percent in the first quarter of the year as more and more Filipinos are saving in the formal banking sector, the state-run Philippine Deposit Insurance Corp. (PDIC) reported yesterday.
PDIC president Valentin Araneta announced yesterday that the total amount of deposits in Philippine banks increased by P411 billion to P5 trillion as of end-March this year.
“The continued growth of bank deposits is indicative of the continued confidence of the public in thebanking system and the Filipinos’ predisposition to save for the rainy days,” Araneta who assumed office last June 15 replacing former PDIC president Jose Nograles.
Data showed that deposits in universal and commercial banks continued to grow at 8.9 percent accounting for 88.2 percent of the total deposits.
On the other hand, deposits in thrift banks posted a double-digit growth of 10 percent for a 9.3 percent share while deposits in rural banks increased by 6.2 percent for a share of 2.48 percent.
Araneta pointed out that savings account posted a double-digit growth of 12.6 percent in the first quarter of the year and accounted for 47.2 percent of the total deposits while time deposits inched up by 3.4 percent for a share of 33.7 percent.
He added that demand deposits or checking accounts grew 10.7 percent cornering a share of 19.1 percent of the total deposits.
Furthermore, the PDIC chief said the aggregate deposit amount maintained by individuals stood at 56.2 percent of the total deposit amount or almost twice the amount of deposits maintained in private corporations.
He said private corporations cornered a share of 29.7 perent of the total deposits while government deposits accounted for 11 percent.
According to PDIC, about 97 percent of the total number of accounts amounting to P884.86 billion are fully covered up to the maximum deposit insurance coverage (MDIC) of P500,000.
Last year, bank deposits rose 9.7 percent to P5.1 trillion from P4.65 trillion in 2009 as the number of deposit accounts posted a double-digit growth of 15.1 percent to 39.7 million wherein 5.2 million new accounts were opened last year.
The 15.1 percent year-on-year growth in deposit accounts was the highest since 1981 and marks the second time that the growth was at double digits since 1997.
Of the total deposits last year, peso accounts represented 78.6 percent or P4 trillion while foreign currency deposits accounted for the remaining 21.4 percent or P1.1 trillion.
Savings deposits jumped 10.9 percent to P2.4 trillion accounting for 46.7 percent of the total bank deposits last year while time deposits went up by 6.7 percent to P1.7 trillion and cornered 34.8 percent of the total deposits. Checking accounts went up by 13.3 percent to P947 billion accounting for 18.5 percent of the total bank deposit accounts last year.
Individual depositors cornered the largest share of deposits with 56.9 percent or P2.9 trillion followed by private corporations with 30 percent or P1.5 trillion, and the national government with 9.9 percent or P509 billion.
The number of banks declined to 758 last year from 785 in 2009 while the number of branches to 7,374 from 7,093.
Monetary authorities led by Bangko Sentral Governor Amando Tetangco Jr. believed that 2010 was a banner year for Philippine banks contributing largely to the country’s stronger-than-expected economic growth amid the fragile recovery in advanced economies led by the US as well as the debt crisis in Europe.
Tetangco earlier said that the country’s sound, stable, and liquid banking system was one of the reasons behind the sustained economic growth after the industry posted healthy growth rates in lending, deposits, and profitability in 2010.
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