The expansion was funded by the 12.5 percent growth in deposits mostly deployed to lending activities. Loans were broad-based across various borrower and industry types. The banking system is healthy and profitable. Overall profitability is buoyed by the increase in core income from lending activities. With staunch commitment and consistent dedication, capitalization of the overall banking system is now above the regulatory thresholds.
The gradual increase in employee income is likely to continue, as it is expected that firms will continue to experience labor shortages and corporate profits will remain generally high. In this situation, private consumption is expected to follow a gradual uptrend.