Banks’ 9-month trust assets rise to P4.9T as investors shift to managed funds – BusinessWorld Online
PHILIPPINE BANKS’ trust assets had climbed to P4.867 trillion as of September, reflecting stronger demand for professionally managed funds amid continued caution in financial markets, based on data from the Bangko Sentral ng Pilipinas (BSP).
The figure rose 12.72% from a year earlier and 3.39% from the level at end-June.
A trust business covers activities performed under a trustor-trustee arrangement, where a trustee manages funds or properties for the trustor’s benefit. Banks or nonbank financial institutions may operate trust units, with industry assets made up of security investments, bank deposits and other holdings.
Net deposits grew 23.88% year on year to P1.264 trillion, while net financial assets increased 7.79% to P2.879 trillion. Cash and due from banks climbed 62.73% to P703 million.
Loans, including gross equity investments, slipped 7.56% to P44.331 billion from a year earlier.
Total accountabilities matched total assets at P4.867 trillion, rising 12.72% from a year earlier. Trust holdings rose almost 11% to P1.708 trillion.
Unit investment trust funds increased 17.2% to P688.661 billion, while employee benefit accounts advanced 4.05% to P368.781 billion.
Agency trusts grew 11.87% to P2.306 trillion, and other fiduciary services expanded 20.01% to P791.897 billion.
Universal and commercial banks held almost all trust assets at P4.842 trillion, while thrift banks accounted for P25.404 billion. — Katherine K. Chan
