The Philippine banking system’s total assets grew by nine percent year-on-year to ₱27.433 trillion at the end of 2024 from ₱25.165 trillion in 2023, driven by the expansion in deposits, earnings, capital, and liquidity.
The Bangko Sentral ng Pilipinas (BSP) refers to total assets as banking resources and includes cash and due from banks, total loan portfolio, total investments, real and other properties acquired (ROPA), and other assets held by financial institutions.
The continued growth in banking assets was mostly funded by deposits and this is used for their operations, lending and investment activities. The banking system's asset mix was mostly in the form of loans and investments, while the universal and commercial banks largely drove the growth in total assets.
At the end of 2024, the banking system’s total liabilities increased by 8.89 percent to ₱24.063 trillion compared to ₱22.097 trillion in 2023.
These liabilities are banks’ financial obligations, which 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.
Banks’ net loans increased by 10.73 percent as of end-December last year to ₱14.842 trillion compared to ₱13.403 trillion in 2023. Net loans include interbank loans receivable and reverse repurchase.
Meanwhile, the industry's net investments totaled ₱7.771 trillion, up 10.73 percent from ₱7.018 trillion in the previous year. Net investments are financial assets and equity investments.
As for the cash and due from banks or cash on hand and banks’ receivables among others, this declined by six percent to ₱2.743 trillion versus ₱2.918 trillion in 2023.
Based on data, banks’ net ROPA as of end-2024 went up by 10.37 percent to ₱117.557 billion from ₱106.512 billion of the previous 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 94 percent of total industry assets at ₱25.726 trillion while total liabilities stood at ₱22.632 trillion.
The 41 thrift banks’ assets totaled ₱1.102 trillion, while their total liabilities amounted to ₱928.681 billion.
The country’s six digital banks had total assets of ₱119.68 billion while their liabilities totaled ₱104.485 billion.
While the other banking categories have reported monthly total assets, the 383 rural banking sector with cooperative banks’ assets are released quarterly. As of end-2024, their total assets reached ₱485.026 billion while liabilities stood at ₱397.38 billion.
Based on BSP numbers as of end-September 2024, in terms of asset size, the SM Group’s BDO Unibank Inc. remains the country’s largest lender with ₱4.603 trillion out of 44 big banks.
The second biggest bank is state-owned Land Bank of the Philippines, with total assets of ₱3.409 trillion. The Ayala Group’s Bank of the Philippine Islands is the third largest with ₱3.185 trillion in total assets.
The Ty-owned Metropolitan Bank and Trust Co., previously the third biggest bank, is in fourth spot with assets of ₱3.116 trillion while another Sy-owned bank, China Banking Corp., is consistently the fifth biggest lender with ₱1.74 trillion.
The other banks in the top 10 are the Yuchengcos’ Rizal Commercial Banking Corp. with ₱1.434 trillion; Security Bank Corp. with ₱1.301 trillion, edging out Lucio Tan Group’s Philippine National Bank with ₱1.195 trillion which is now in eighth place; Aboitiz-led Union Bank of the Philippines with ₱986.549 billion is the ninth spot; and state-owned Development Bank of the Philippines with ₱955.483 billion is 10th largest bank.