Total assets of nine overseas banking units operating in the Philippines rose sharply by 212.8 percent to $2.654 billion as of end-December last year, the Bangko Sentral ng Pilipinas said in a statement yesterday.

Net income after tax also significantly improved by 80.4 percent from $4.3 million in 2005 to $9.6 million the previous year while net interest income and other operating income increased by 79.9 percent ($7.1 million) and 38.5 percent ($4.8 million), respectively. These revenues outpaced the 47.4 percent ($7.5 million) increment in operating expenses, the BSP said.

Majority of OBU funds was still kept in investments in bonds and other securities at $1.3 billion - up from $474 million last year - and held 48.4 percent - down from 51.2 percent - share of gross assets.

Meanwhile, there were more funds channeled to banks than in lendings last year. Due from banks expanded by 363.9 percent to $816 million while total loans grew by 115.3 percent to $550.1 million, the BSP said, adding that this enabled the due from banks account at 30.4 percent - up from 19 percent last year - of gross assets to surpass the 20.5 percent - down from 27.6 percent - share of total loans.

Loans to resident borrowers amounted to $147 million, a decline of 30.6 percent from last year. These lendings were concentrated in three main economic activities, including the transportation, storage and communications sector at 20.7 percent ($30.4 million) of total loans to residents, followed by the electricity, gas and water sector at 20 percent ($29.4 million) and the manufacturing sector at 18.7 percent ($27.4 million). The BSP said that there was a shift in the primary source of funding to other banks-abroad at 49.1 percent - from 24.1 percent last year - of total liabilities. The due to head office/branches-abroad, the erstwhile provider of OBU funds, was down to 35.3 percent - from 70 - of total liabilities.

Due to banks-abroad stood at $1.302 million as of end-December 2005 while due from head office/branches-abroad, $937.3 million, it added.*

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