The total assets of the domestic banking system expanded by 9.68 percent to P26.733 trillion for the first 11 months of 2024 compared to P24.373 trillion of the previous year, according to Bangko Sentral ng Pilipinas (BSP) data.
Banks’ total assets includes cash and due from banks, total loan portfolio, total investments, real and other properties acquired (ROPA), and other assets held by financial institutions.
The banking system’s liabilities also increased by 9.64 percent to P23.398 trillion as of end-November last year from P21.339 trillion in 2023.
These liabilities are banks’ financial obligations which include financial liabilities held for trading; financial liabilities designated at fair value through profit or loss; deposit liabilities; due to other banks; bills payable; unsecured subordinated debt; bonds payable; redeemable preferred shares; derivatives with negative fair value held for hedging; finance lease payment payable; and other liabilities.
The latest data showed that banks’ net loans went up by 10.55 percent to P14.234 trillion compared to P12.875 trillion in 2023. Net loans are inclusive of interbank loans receivable and reverse repurchase.
Banks’ net investments as of end-November totaled P7.875 trillion, up 12.19 percent from P7.019 trillion of the previous year. Net investments are financial assets and equity investments.
Meanwhile, the cash and due from banks or cash on hand and banks’ receivables among others, amounted to P2.571 trillion, down by 3.23 percent from P2.657 trillion in 2023.
As of end-November, banks’ net ROPA rose 8.31 percent to P113.745 billion from P105.016 billion in 2023. ROPA is described as “other than those used for banking purposes or held for investment”. It is acquired by a bank to settle a loan from a borrower through foreclosure or dation in payment (dacion en pago), among other reasons.
By banking group, the 44 big banks or universal and commercial banks accounted for about 94 percent of total industry assets at P25.082 trillion during the period, while total liabilities stood at P22.017 trillion.
The 41 thrift banks hold assets worth P1.079 trillion while its total liabilities amounted to P907.389 billion.
As for the six digital banks, total assets reached P114.528 billion while its liabilities totaled P99.961 billion.
The 383 rural banking sector with cooperative banks reported total assets of P458.058 billion as of end-September 2024. Its liabilities stood at P374.305 billion. Rural banks have a lag period in total assets' submission of data.
The continued growth in banking assets was mostly funded by deposits and this is used for their operations, lending and investment activities.
The BSP in a report said banks’ strong earnings is also supported by ample capital and liquidity buffers. This allowed banks to support their expanding operations and risk-taking activities.
The banking system's asset mix were mostly in the form of loans and investments while the growth in total assets was largely driven by the universal and commercial banks.
As of end-September 2024, in terms of asset size, the SM Group’s BDO Unibank Inc. remains the country’s largest lender with P4.603 trillion. There are 44 big banks.
The second biggest bank is government-controlled Land Bank of the Philippines with total assets of P3.409 trillion. The Ayala Group’s Bank of the Philippine Islands is the third largest with P3.185 trillion in total assets.
The Ty-owned Metropolitan Bank and Trust Co., previously the third biggest bank, is in fourth spot with assets of P3.116 trillion while another Sy-owned bank, China Banking Corp., is consistently the fifth biggest lender with P1.740 trillion.
The other banks in the top 10 are the Yuchengcos’ Rizal Commercial Banking Corp. with P1.434 trillion; Security Bank Corp. with P1.301 trillion, edging out Lucio Tan Group’s Philippine National Bank with P1.195 trillion which is now in eighth place; Aboitiz-led Union Bank of the Philippines with P986.549 billion is the ninth spot; and state-owned Development Bank of the Philippines with P955.483 billion is the 10th largest bank.