The NPL coverage ratio remains high at 83.5 percent, providing confidence in banks’ ability to absorb possible losses. Performance of the Trust Industry The trust industry also continues to grow. After seeing a temporary reduction in the early days of the pandemic, trust assets have rebounded, and have now significantly surpassed pre-pandemic levels.
Assets under management recorded a double-digit year-on-year expansion of 18.4 percent, aggregating to P4.8 trillion by end-June 2021. This is equivalent to 24.3 percent of the banking system’s total assets. The related increase in fees and commissions contributed to the sustained profitability of the industry. The net income of trust institutions rose by P1.0 billion or 33.5 percent year-on-year to P3.9 billion.