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MANILA, Philippines — Even as a renewed Middle East conflict rattled global markets and fueled financial volatility, Philippine banks turned in their strongest second quarter on record, helped by higher borrowing costs that continued to fatten lending margins.
Banks booked a combined net profit of P208.4 billion as of end-June, up 5 percent from a year earlier, according to preliminary Bangko Sentral ng Pilipinas (BSP) data. It was the industry’s highest second-quarter earnings haul since comparable records began in 2008.
READ: Banks to weather Iran shocks – BSP
Total operating income climbed 11 percent to P761 billion. The gains were driven largely by net interest income, which grew 13 percent to P639 billion as sticky borrowing costs lifted lending margins.
