• Philippine banks are expected to boost earnings, capital and assets this year on the back of a recovering economy and on expectation that interest rates will decline, according to credit rating agency S&P Global Ratings.
  • The credit rating firm projects Philippine GDP will grow by 5.2 percent in 2023 – to be announced on Jan. 31 – and improve to six percent this year and in 2025. The forecast is lower than the government’s six percent to seven percent for 2023 and 6.5 percent to 7.5 percent target for 2024.
  • S&P noted that bank earnings will “normalize with lower asset yields” amid expectation that the Bangko Sentral ng Pilipinas (BSP) will start reducing its 6.5 percent target reverse repurchase (RRP) rate or the policy rate in the second half of 2024.