The banking system’s total assets rose to P22.77 trillion as of end-February, up by 10.10 percent from same period last year of P20.68 trillion, funded by the continued growth in deposits and loans.
Loans comprised about 53 percent of total assets. These includes interbank loans receivable or IBL and reverse repurchase, net of allowances for credit losses. The rest are investments such as debt and securities, and cash and due from banks.
Total net portfolio, inclusive of IBL and RRPs, increased by 11.54 percent in February to P11.98 trillion from P10.74 trillion same period in 2022.
Of total assets, cash and due from banks however fell by 19.18 percent to P2.78 trillion from P3.44 trillion last year.
Banks’ net investments and the net real and other properties acquired or ROPA, meanwhile, went up by 19.86 percent and 8.99 percent, respectively, to P6.7 trillion and P104.11 billion versus P5.59 trillion and P95.52 billion in 2022.
By banking group, the universal and commercial banks accounted for 94 percent of total assets with P21.44 trillion as of end-February. The smaller thrift banks’ assets totaled P952 billion or about 4.2 percent.
The data for both rural and cooperative banks are delayed in reporting but as of end-December 2022, rural banks’ total assets amounted to P343.84 billion while cooperative banks have P28.7 billion.
As of the first quarter 2023, the BSP monitors and supervises 45 big banks, 43 thrift banks, 379 rural banks and 24 cooperative banks. In 2022, the BSP has approved six digital banks as a new bank category.
Based on the first semester 2022 Banking Sector Outlook Survey (BSOS) of the BSP which was released this month, banks expect to post double-digit growth in assets, loans, deposits and net income this year and in 2024, and to continue to improve its asset and loan quality indicators.
About 78.9 percent of surveyed banks said assets will expand as credit support for the country’s financing needs in the next two years.
Also, 70.6 percent of banks expect double-digit deposit growth to fund both asset and loan growth in the short term. Majority projects 10 percent to 15 percent assets and deposit growth in the next two years.
Meanwhile, 77.9 percent of 170 banks surveyed said they expect profits and net income will continue to post double-digit growth this year and in 2024 in anticipation of improvement in the country’s economic condition. The government projects the economy will grow by six percent to seven percent this year, slower compared to the actual 7.6 percent growth in 2022 amid lingering uncertainty in the global growth, especially in terms of financial stability.