Banks’ assets rise 11% in Q1

The banking sector’s total assets grew by 11 percent to P23.09 trillion as of end-March from P20.80 trillion same period last year, based on Bangko Sentral ng Pilipinas (BSP) data.

The banking system’s liabilities also increased by 11.18 percent to P20.31 trillion compared to P18.27 trillion in 2022.

Despite tighter financial conditions, Philippine banks’ total assets continued to grow because of deposits and loans. The industry remains adequate in providing credit as loans accounted for more than 50 percent of total assets and 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. At the end of the first quarter, cash and due from banks dipped by 1.35 percent to P3.07 trillion from P3.12 trillion last year while total net investments increased by 13.13 percent to P6.68 trillion from P5.90 trillion.

Meanwhile, total net loan portfolio, inclusive of IBL and RRPs, went up by 10.49 percent to P12.01 trillion from P10.87 trillion. Banks’ net real and other properties acquired or ROPA was up by 4.86 percent to P101.39 trillion from P96.69 trillion last year.

By banking group, the 45 big banks or universal and commercial banks accounted for about 94 percent of total industry assets at P21.75 trillion of the total as of end-March.

The 43 thrift banks’ assets totaled P964.31 billion during the period. The rural and cooperative banks are delayed in reporting but as of end-December 2022, 379 rural banks’ total assets amounted to P343.84 billion while 24 cooperative banks have P28.7 billion.

BSP Governor Felipe M. Medalla said the local banking system, as the core of the financial system, continued to grow its assets, loans, deposits, and profit in 2022. Banks also have ample capital and liquidity buffers, as well as provision for credit losses.

Last year, the total assets of the banking system accounted for about 83 percent of the total resources of the domestic financial system. Total resources of the financial system exclude the assets of the BSP but include the assets of banks and non-bank financial institutions.

In terms of assets, the SM Group’s BDO Unibank Inc. is the country’s biggest bank with total assets of P3.92 trillion as of end-2022, based on BSP data.

Government-owned Land Bank of the Philippines is second largest lender with total assets of P3.14 trillion followed by the Ayala-led Bank of the Philippine Islands with P2.60 trillion.

Rounding the top five are the Ty-controlled Metropolitan Bank and Trust Co. and another SM banking unit, China Banking Corp. with P2.58 trillion and P1.30 trillion, respectively.