The total assets of the Philippine banking system rose 6.98 percent year-on-year to hit P27.74 trillion as of end-July, driven by the expansion of banks’ net loans, the central bank said on Thursday.
Based on the latest data from the Bangko Sentral ng Pilipinas (BSP), about 93 percent of banking assets are held by universal and commercial banks at P25.93 trillion, up by 6.5 percent from P24.35 trillion at end-July last year.
Thrift banks’ assets grew faster at 22.8 percent to P1.29 trillion as of end-July from P1.05 trillion a year earlier.
Rural and cooperative banks showed a lag period, with end-June as the latest. Their total assets were up by 12.2 percent at P385.45 billion from P439.25 billion a year earlier.
Digital banks posted a significant 32.5 percent expansion in assets to P135 billion from P101.91 billion in the corresponding period in 2024.
Overall, the banking system had total liabilities of P24.22 trillion, up 6.6 percent from P22.71 trillion in 2024, based on BSP data. These were financial obligations such as financial liabilities held for trading, deposit liabilities, due to other banks, bills payable, among others.
Banks’ assets include cash and due from banks, total loan portfolio, total investments, real and other properties acquired (ROPA) and other assets held by financial institutions.
As of end-July, the banking system’s net loans were up 7.4 percent at P15.26 trillion from P14.21 trillion in the same period in 2024. Net loans are inclusive of interbank loans receivable and reverse repurchase.
Net investments, which are financial assets and equity investments, increased by 7.6 percent to P8.24 trillion from P7.66 trillion in the year-earlier period.
However, cash and due from banks, or cash on hand and banks’ receivables, declined by 22 percent to P1.92 trillion from P2.46 trillion.
Based on the BSP data, banks’ net ROPA as of end-July rose by 17.8 percent to P129.73 billion from P110.10 billion of the previous year. ROPA is acquired by a bank to settle a loan from a borrower through foreclosure or dacion en pago, among other reasons.
The BSP is supervising 44 big banks, or universal and commercial banks, 42 thrift banks and six digital banks. There are also 374 rural and cooperative banks.
BDO Unibank Inc. of the SM Group is the country’s largest lender in terms of assets, followed by state-owned Land Bank of the Philippines and the Ayala Group’s Bank of the Philippine Islands.
The Ty family-controlled Metropolitan Bank & Trust Co. is the fourth biggest bank, while BDO sister bank China Banking Corp. is fifth.
The top 10 are rounded out by Rizal Commercial Banking Corp. of the Yuchengco clan; Security Bank Corp.; Philippine National Bank of the Lucio Tan Group; government-owned Development Bank of the Philippines; and the Aboitiz-led Union Bank of the Philippines.
