SPEAKING OUT
The traditional Annual Reception for the Banking Community at the Bangko Sentral ng Pilipinas (BSP), recently held at the historic Fort Antonio Abad, was a night to remember. Before a crowd of 350, which included the who’s who of the banking industry, BSP Governor Eli Remolona proudly relived the milestone-filled 2024. He also rallied the industry behind BSP’s initiatives for 2025.
On the sidelines, reporters covering the BSP and finance beat had a field day accessing bank CEOs, who gave their own individual reports on their institutions’ glowing performance during the past year.
2024 was indeed a remarkable year, with significant achievements that have strengthened the Philippine banking system. The year saw sustained growth in assets, loans, investments, deposits, and earnings. The Philippine banking system recorded a 9.8 percent growth in total assets, reaching ₱26.4 trillion as of October 2024. The gross total loan portfolio jumped by 11.3 percent to ₱14.5 trillion, while lending and investment activities expanded by 6.7 percent to ₱19.46 trillion.
Interest income from lending to private corporations and households and investment in securities continued to drive banks' profitability. The profit of banks operating in the Philippines rose by 6.4 percent to ₱290.1 billion from January to September 2024. The banking system's solo and consolidated capital adequacy ratios were 16.4 and 16.9 percent, respectively, higher than the regulatory thresholds of the BSP and the Bank for International Settlements.
The upgrade in the country's credit rating outlook by S&P Global Ratings is a testament to the hard work and dedication of everyone involved. The launch of the IRS peso market and the expansion of the government repo market are significant steps forward, enhancing the financial infrastructure of the country. The rollout of the Financial Services Cyber Resilience Plan and the passage of the Anti-Financial Account Scamming Act are crucial measures that underscore the BSP's commitment to safeguarding the financial system. Additionally, the introduction of smarter, cleaner, and stronger polymer banknotes marks a significant advancement in our currency's durability and security.
As we usher in 2025, Governor Remolona's message resonated with optimism and a call for continued collaboration in driving digital transformation and financial inclusion. By leveraging technology, we can ensure that financial services are accessible to all Filipinos, empowering them to make informed financial decisions. The push for Open Finance is a step in the right direction, allowing people to choose financial services that best suit their needs.
Governor Remolona's call for collaboration is a reminder that the strength of the banking industry lies in our collective efforts. He appealed to the captains of the banking industry to remain committed to our shared vision of a resilient, inclusive, and innovative banking system. The achievements of 2024 are a testament to what we can accomplish when we work together. With continued collaboration and a focus on digital transformation, we can build a brighter future for the Philippine banking industry and the nation as a whole.
In conclusion, the 2025 Annual Reception for the Banking Community was not just a celebration of past achievements but a call to action for the future. Governor Remolona's message is clear: let us continue to work together, embrace innovation, and ensure that the benefits of financial services reach every Filipino. Together, we can make the Philippine banking system a beacon of growth and stability in the region. ([email protected])