Large banks to show ‘greater resilience’ to risks

THE COUNTRY’S biggest banks will show “greater resilience” despite changing operating conditions compared to their mid-sized peers, Fitch Ratings, Inc. said in a report on Thursday.

According to the debt watcher’s first semester report card on Philippine banks released yesterday, BDO Unibank, Inc., Metropolitan Bank & Trust Co. (Metrobank), and Bank of the Philippine Islands (BPI) are expected to fare better than smaller banks as operating conditions for financial institutions in the country change as they are backed by stronger franchises, generally less aggressive risk appetite and higher profitability.

“Net interest margin (NIM) trends have diverged between the three large Philippine banks — BPI, BDO and Metrobank — and their rated mid-sized peers CBC (China Banking Corp.), PNB (Philippine National Bank) and RCBC (Rizal Commercial Banking Corp.). This follows higher domestic interest rates and tighter liquidity conditions over the past year,” the report said.

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