The total assets of the domestic banking system rose to a new high of P25.146 trillion in 2023, an increase of 9.1 percent from P23.047 trillion in 2022, based on Bangko Sentral ng Pilipinas (BSP) data.
Banks’ assets are funded by deposits, loans and investments which when managed well translates to stable earnings, healthy capital and ample liquidity.
Meanwhile, banks’ liabilities which are its financial and deposit liabilities, went up by 8.55 percent in 2023 to P22.08 trillion versus P20.341 trillion in 2022.
As of end-December last year, banks’ net loans inclusive of interbank loans receivable and reverse repurchase, totaled P13.384 trillion, up by 9.72 percent from P12.198 trillion of the previous year. The net loans contribute significantly to total assets after investments and cash and due from banks.
Banks’ net investments which are financial assets and equity investments, also rose by 10.94 percent to P7.022 trillion from P6.429 trillion.
Cash and due from banks however declined by 10.82 percent to P2.917 trillion from P3.271 trillion in 2022.
As for the industry’s net real and other properties acquired or ROPA, this slightly improved by 1.29 percent to P105.694 billion from P104.347 billion.
By banking group, the 45 big banks or universal and commercial banks accounted for about 94 percent of total industry assets at P23.624 trillion.
The 42 thrift banks’ assets reached P1.038 trillion last year while the 390 rural and cooperative banks have lagged reporting period but as of end-September 2023, it had total assets of P395.521 billion. The six digital banks reported total assets of P88.69 billion in 2023.
In terms of asset size, the country’s top five biggest banks are SM Group’s BDO Unibank Inc.; government-owned Land Bank of the Philippines; the Ty-controlled Metropolitan Bank and Trust Co.; Ayala-led Bank of the Philippine Islands; and China Banking Corp., a sister company of BDO.