Boosted by earnings and capital, the total assets of the Philippine banking system increased by 11.37 percent to P26.737 trillion as of the end of the third quarter from P24.006 trillion same period last year, based on the latest data from the Bangko Sentral ng Pilipinas (BSP).
Total assets, as described by the BSP, are banking resources that includes cash and due from banks, total loan portfolio, total investments, real and other properties acquired (ROPA), and other assets held by financial institutions.
During the period, banks’ liabilities also increased by 11.27 percent to P23.418 trillion from P21.045 trillion same time in 2023. Some of these liabilities or banks’ financial obligations 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.
As of end-September, banks’ net loans rose 14.42 percent to P14.42 trillion compared to P12.603 trillion last year. Net loans are inclusive of interbank loans receivable and reverse repurchase.
Industry net investments, meanwhile, totaled P7.738 trillion during the period which was 11.88 percent higher than the P6.916 trillion recorded last year. Net investments are financial assets and equity investments.
As for cash and due from banks or cash on hand and banks’ receivables among others, this amounted to P2.435 trillion, down by 13.59 percent versus P2.818 trillion in 2023.
As of end-September, banks’ net ROPA increased by 6.92 percent to P112.036 billion from P104.788 billion same period last year. 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 93 percent of total industry assets at P24.097 trillion while total liabilities stood at P22.046 trillion.
The 41 thrift banks reported assets of P1.074 trillion during the period while its total liabilities amounted to P904.495 billion.
The six digital banks have total assets of P107.641 billion and liabilities of P92.781 billion.
The rural banking sector with cooperative banks reported total assets of P458.058 billion and liabilities of P374.305 billion as of end-September.
Based on BSP numbers as of end-June 2024, the SM Group’s BDO Unibank Inc. remains the country’s largest lender in terms of asset size of P4.508 trillion.
Philippines’ second biggest bank is government-controlled Land Bank of the Philippines with total assets of P3.325 trillion. The Ty-owned Metropolitan Bank and Trust Co. (Metrobank) is the third biggest bank with assets of P3.096 trillion.
Ayala-led Bank of the Philippine Islands is the country’s fourth biggest bank in terms of assets with P3.090 trillion while another Sy-owned bank, China Banking Corp., is the fifth biggest lender with P1.678 trillion.
The other banks in the top 10 in terms of asset size are the Yuchengcos’ Rizal Commercial Banking Corp. with P1.382 trillion; Lucio Tan Group’s Philippine National Bank with P1.254 trillion; Security Bank Corp. with P1.189 trillion; Aboitiz-led Union Bank of the Philippines with P975.009 billion; and state-owned Development Bank of the Philippines with P971.535 billion.