Profitable banks

I find it unacceptable for banks to make so much profit when the economy is in bad shape. It implies that their fees are excessive. They charge 9 ½ percent today for commercial loans while they pay only 3.75 percent for a time deposit. The banks’ spread is too big.

Banco de Oro doubled its profit to P4.1 billion in the first half of 2010; Bank of the Philippine Islands posted a P5.6 billion profit for the same period. China Banking registered an 8.6 percent income growth to P2.11 billion; Union Bank reported a P2.2 billion profit and United Coconut Planters Bank jumped 238 percent to P1.14 billion.

Land Bank’s first semester income jumped 28 percent to P4.6 billion. DBP reported a 34 percent increase to P2.83 billion. These two government banks should declare bigger dividends to the National Treasury. BIR Commissioner Kim Henares should audit all the banks to find out if they are padding their expenses and deductions. She should also find out if the bank executives are properly declaring all their salaries, bonuses and allowances, including the use of bank cars by their families.

In the United States, payment by a corporation for the use of cars, groceries and telephone bills by their families is charged as income. –Daily Tribune