THE Philippine banking industry’s total assets rose by 5.5% year on year as of end-April, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.
Banks’ combined assets rose to P26.89 trillion as of end-April from P25.48 trillion in the same period a year ago.
However, month on month, total assets inched down by 2.7% from P27.64 trillion as of end-March.
Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP), net of allowances for credit losses.
The banking sector’s total loan portfolio inclusive of IBL and RRP jumped by 10.2% to P14.85 trillion from P13.47 trillion in the comparable year-ago period.
Net investments, or financial assets and equity investments in subsidiaries, increased by 8.8% to P8.03 trillion as of end-April from P7.38 trillion in the same period in 2024.
Net real and other properties acquired climbed by 12.7% year on year to P119.88 billion from P106.41 billion.
On the other hand, cash and due from banks fell by 24.7% to P1.91 trillion as of end-April from P2.54 trillion in the previous year.
Banks’ other assets slipped by 0.1% to P1.984 trillion from P1.986 trillion.
Meanwhile, the total liabilities of the banking system amounted to P4.63 trillion as of end-April, up by 3.1% from P4.49 trillion in the year prior.
Bulk of banks’ liabilities were deposits, which increased to P19.77 trillion at end-April from P19.004 trillion a year prior. Peso-denominated deposits stood at P16.35 trillion, while foreign currency deposits were at P3.42 trillion.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said banks’ total assets continued to be driven by double-digit growth in lending.
“Loan growth slowed down for the largest banks based on the latest data as of April, but still more than twice gross domestic product growth, as consumer loans even grew faster year on year,” he said.
Outstanding loans of universal and commercial banks grew by 11.12% year on year to P13.25 trillion in April, the slowest growth in five months. Consumer loans jumped by 24% to P1.67 trillion in April, a tad faster than the 23.9% increase recorded a month prior.
Mr. Ricafort said further monetary easing here and abroad could spur demand for loans, which would in turn boost bank assets.
“Further BSP and Federal Reserve rate cuts for the coming months could further reduce financing costs that could help increase the demand for loans, as well as support banks’ trading gains on fixed income investments,” he added.
BSP Governor Eli M. Remolona, Jr. has said a rate cut is on the table at the Monetary Board’s June 19 policy review. The central bank has so far slashed interest rates by 100 basis points since it began its easing cycle in August last year. — Luisa Maria Jacinta C. Jocson