The Chamber of Thrift Banks (CTB), the umbrella organization of the country’s thrift banks, marked its fifty years of dedicated service as it reported the solid growth of its member-banks in terms of assets, deposits, and lending activities.
“In the past year, the thrift banking sector, under CTB’s leadership, demonstrated robust performance,” said Cecilio San Pedro, CTB President.
Total assets surged to P1.04 trillion as of December 31, 2023, marking a notable 7.3 percent increase from the previous year’s figure of P968.28 billion.
Core lending experienced a significant surge of 16.3 percent to P677.6 billion, indicating sustained lending activity within the sector’s niches.
Confidence in the sector also remained high, with deposit liabilities growing by 6.5 percent year-on-year to P789.3 billion.
Total capital surged to P157 billion, reflecting a 10 percent increase and ensuring a robust capital adequacy ratio of 16.98 percent, well above the required minimum of 10 percent.
San Pedro noted that the non-performing loan ratio remained manageable at 6.4 percent, underscoring the sector’s prudent risk management practices.
“Over the past five decades, CTB has faced various challenges and seized numerous opportunities, playing a significant role in shaping regulatory reforms like the Thrift Banks Act of 1995,” said San Pedro.
“We have expanded our mission to promote economic development through savings mobilization and credit extension, particularly to SMEs and the housing sector.”
Looking ahead, CTB recognizes the imperative of digital transformation for the continued success of thrift banks.
At the forefront of this transformation is the integration of artificial intelligence (AI), which offers unparalleled opportunities for innovation, efficiency, and customer-centricity.
