The Philippine banking system’s total assets climbed by ₱1.88 trillion, or 7.1 percent, to ₱28.29 trillion as of end-October from ₱26.41 trillion a year ago, driven by steady lending activity and robust deposit inflows.

The latest preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that the combined assets of domestic banks increased year on year as of end-October, continuing the 7.6-percent expansion seen in the previous month to ₱28.78 trillion.

Banks’ assets are primarily supported by deposits, loans, and investments, including cash, balances due from other banks, interbank loans receivable (IBL), and reverse repurchase (RRP), net of credit loss provisions.

Since January, the banking sector’s total loan portfolio, inclusive of IBL and RRP, increased by 10.9 percent to ₱15.6 trillion from ₱14.06 trillion in the same period a year earlier.

Net investments, which include financial assets and equity holdings in subsidiaries, rose by 5.4 percent to ₱8.26 trillion as of end-October from ₱7.84 trillion a year earlier.

Net real and other properties acquired (ROPA) jumped by 20.7 percent year on year to ₱136.1 billion from ₱112.7 billion last year.

Meanwhile, cash and due from banks declined by 16.2 percent to ₱2.04 trillion as of end-October from ₱2.43 trillion a year earlier.

Other assets of the banking industry increased by 15.4 percent to ₱2.26 trillion in October 2025 from ₱1.96 trillion in the same month last year.

Meanwhile, total liabilities of the banking system reached ₱24.67 trillion during the period, up 6.9 percent from ₱23.08 trillion a year earlier.

Deposits accounted for the bulk, or 84.4 percent, of banks’ liabilities, rising seven percent to ₱20.82 trillion as of end-June from ₱19.46 trillion a year earlier. Of the total deposits, peso-denominated accounts amounted to ₱17.18 trillion, while foreign currency deposits reached ₱3.64 trillion.

SM Investments Corp. (SMIC) group economist Robert Dan Roces said the year-on-year growth in bank assets was mainly due to steady lending to households and businesses, stronger deposit inflows as confidence returned, and increased government securities holdings that strengthened banks’ balance sheets earlier this year.

“Looking ahead, asset growth should remain positive but more measured, supported by easing inflation, gradual rate cuts, and continued credit demand, even as banks stay selective and manage duration and liquidity risks more conservatively,” Roces said.