Banks' total assets rose 7.86% year-on-year to P23.095 trillion as of end-July versus P21.403 trillion same time in 2022
Total assets refer to banks’ total resources and includes cash and due from banks, total loan portfolio, total investments, real and other properties acquired, and other assets held by financial institutions.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that total liabilities also increased by 7.30% to P20.168 trillion from P18.795 trillion in 2022. These liabilities are banks’ financial obligations.
In terms of asset size, the country's top three banks are BDO Unibank Inc., state-controlled Land Bank of the Philippines, and Bank of the Philippine Islands.
Banks’ total assets up at P23 T - BSP
At a glance
The Philippine banking system reported total assets of P23.095 trillion as of end-July, up 7.86 percent from same period last year of P21.403 trillion with the continued growth in deposits, loans and investments.
The banking system is the core of the financial system. Total assets refer to banks’ total resources and includes cash and due from banks, total loan portfolio, total investments, real and other properties acquired, and other assets held by financial institutions.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that total liabilities, which are financial and deposit liabilities, also increased by 7.30 percent to P20.168 trillion from P18.795 trillion in 2022. These liabilities are banks’ financial obligations such as the sum of its 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.
As of end-July, banks’ net loans grew by 8.83 percent to P12.362 trillion versus P11.358 trillion last year. This is the total loan portfolio and includes all loans and interbank loans receivables, and receivables arising from repurchase agreements, among others. Net loans have a big contribution to total assets after investments and cash and due from banks.
Net investments which are financial assets and equity investments, went up by 9.56 percent to P6.829 trillion from P6.233 trillion same time in 2022. Cash and due from banks, meanwhile, continued to decline to P2.479 trillion or down by 10.47 percent year-on-year.
BSP data also showed that net real and other properties acquired or ROPA increased as of end-July to P105.097 billion or up by 4.76 percent from P100.316 billion.
By banking group, the 45 big banks or universal and commercial banks accounted for about 94 percent of total industry assets at P21.688 trillion of the total as of end-July this year.
Meanwhile, the 43 thrift banks’ assets reached P950.284 billion during the period. The rural and cooperative banks are delayed in reporting but as of end-March 2023, the total assets amounted to P367.304 billion. There are 395 rural and cooperative banks, of which 373 are rural banks.
As the economy slowly recovers, the BSP expects all key indicators of banks will improve this year and “move closer to pre-pandemic levels (to) support domestic recovery.”
BSP in various reports always said that banks’ continued strong performance can be seen in its sustained expansion in assets, deposits, and profit, as well as stable capital, liquidity buffers and ample provision for credit losses.
As of end-March 2023, SM Group’s BDO Unibank Inc. is the country’s biggest bank with total assets of P3.922 trillion, according to central bank data.
Government-owned Land Bank of the Philippines is second largest lender with total assets of P3.115 trillion followed by the Ayala-led Bank of the Philippine Islands with P2.662 trillion.
The Ty-controlled Metropolitan Bank and Trust Co. with total assets of P2.616 trillion is in fourth place while China Banking Corp., a sister company of BDO, has P1.363 trillion.
The other banks in the top 10 in terms of asset size are Rizal Commercial Banking Corp., Philippine National Bank, state-owned Development Bank of the Philippines, Union Bank of the Philippines and Security Bank Corp.