By Sarwell Meniano/PNA
TACLOBAN CITY — Bank deposits in Eastern Visayas grew by 13.67 percent to PHP115.43 billion in the first half of 2018 as construction boom continues despite slowdown of post-disaster recovery projects in the region.
Bank deposits in the region managed to maintain a double-digit annual growth rate in the past five years despite the impact of the 2013 super typhoon Yolanda, based on records of the Philippine Deposit Insurance Corporation (PDIC).
The first semester’s growth is slightly lower than the 14.15 percent recorded in 2017, but still better than the single-digit percent growth before the destructive typhoon.
Regional Development Council banking sector representative Francisco Barredo said in a mobile phone interview Wednesday that consistent banking growth is largely driven by construction activities and business expansion.
“Right after the super typhoon most construction activities were concentrated in Tacloban and other devastated areas. Starting 2017, construction projects have spread out all over the region as government pours more investments on improving infrastructure,” Barredo told the Philippine News Agency (PNA).
Deposit liabilities in the first half of 2018 stood at PHP115.43 billion, higher than the PHP101.54 billion a year earlier. Deposit liabilities refer to money placed by an individual or corporation into a banking institution for safekeeping.
The PDIC banking statistics, posted on its website, showed that the total number of accounts grew by 9.87 percent from 901,471 in January to June 2017 to 990,514 during the first six months of the year.
The number of banks increased to 234 in 2017 from 214 in the previous year. All provinces also posted significant growth in both accounts and deposits.
“The expansion of existing banks and opening of new banks in the region helped provide easy transfer of money and encouraged businesses to expand their operation outside major commercial districts,” Barredo added.
More banks have opened branches in Leyte, Eastern Samar, Samar, and Southern Leyte, according to PDIC.
Data showed that of the total PHP115.43-billion deposit portfolio, PHP68.42 billion were in Leyte province, PHP12.53 billion in Southern Leyte, PHP12.64 billion in Samar, PHP10.25 billion in Northern Samar, PHP8.52 billion in Eastern Samar, and PHP3.06 billion in Biliran.
The remarkable growth in Leyte is largely driven by operation of 50 banks in Tacloban City. The regional capital had PHP42.64 billion deposits as of June 2017, higher than the PHP35.28 billion in June 2016.
The number of accounts in the city rose to 324,937 in the first half of 2017 from 279,248 in the previous year.
The National Economic and Development Authority (NEDA) is upbeat that banking growth will continue in the next years due to President Rodrigo Duterte’s “Build, Build, Build” Program and private sector investments.
