Philippine banking assets top ₱30 trillion on lending, liquidity growth

The Philippine banking system’s total assets climbed to ₱30.12 trillion as of end-April, driven by sustained growth in lending and strong liquidity, with investment holdings continuing to support the economy. The latest preliminary Bangko Sentral ng Pilipinas (BSP) data showed banks’ combined assets expanded by 12 percent from ₱26.89 trillion in April 2025. Month-on-month, however, they eased by 0.7 percent from ₱30.34 trillion in March. Banks’ assets are primarily supported by deposits, loans, and investments, including cash, balances due from other banks, interbank loans receivable (IBL), and reverse repurchase (RRP) agreements, net of credit-loss provisions. As of April, the banking sector’s total loan portfolio, inclusive of IBL and RRP, increased by 12.3 percent to ₱16.67 trillion from ₱14.85 trillion in the same period last year. Net investments, which include financial assets and equity holdings in subsidiaries, increased by 8.1 percent to ₱8.68 trillion as of end-April from ₱8.03 trillion a year ago. Meanwhile, net real and other properties acquired (ROPA) jumped by nearly a fifth year-on-year to ₱143 billion from ₱119.9 billion last year. Cash and balances due from banks increased by 14.7 percent to ₱2.2 trillion as of end-April from ₱1.91 trillion a year ago. Other assets of the banking industry increased by more than a fifth to ₱2.43 trillion in April from ₱1.98 trillion in the same month last year. The total liabilities of the banking system reached ₱26.49 trillion during the period, up 13.2 percent from ₱23.41 trillion a year ago. Deposit liabilities accounted for the bulk, or 83.3 percent, of banks’ liabilities, rising 11.6 percent to ₱22.06 trillion as of end-April from ₱19.77 trillion a year ago. Of the total deposits, peso-denominated accounts amounted to ₱18.16 trillion, while foreign-currency deposits reached ₱3.9 trillion. Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the double-digit growth in banking assets reflects strong liquidity and that “credit is flowing, and the financial sector is actively supporting growth.” Similarly, John Paolo Rivera, senior research fellow at state-run policy think tank Philippine Institute for Development Studies (PIDS), said asset growth in April mirrors sustained growth in lending, deposits, and investment holdings even as the macroeconomic environment is “challenging.” Ravelas explained that the month-on-month easing is “more of a technical pullback than a concern—after the usual quarter-end buildup in March, banks tend to rebalance as liquidity normalizes, government deposits are drawn down, and market valuations adjust.” Rivera also said a one-month easing of this magnitude is “not necessarily a sign of weakness, especially since total assets remain near record highs.” “Looking ahead, we expect bank assets to continue expanding at a healthy pace, driven by lending to infrastructure, businesses, and consumers, especially as inflation eases and rates eventually come down,” Ravelas said.