PH bank assets top P30 trillion

MANILA, Philippines – Philippine banks’ total assets posted a double-digit expansion in April, lifted by loan growth despite the headwinds from the Middle East conflict.

Total resources of local lenders grew by 12 percent from a year earlier to P30.1 trillion, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

READ: Philippine bank assets near P30 trillion, driven by lending surge

The figure includes cash and due from banks, loans, investments, real and other properties acquired and other assets.

But month-on-month, total assets of banks edged down by nearly 1 percent.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the slight sequential dip in bank assets in April was “more of a technical pullback than a concern”.

“After the usual quarter-end buildup in March, banks tend to rebalance as liquidity normalizes, government deposits are drawn down and market valuations adjust,” Ravelas said in a commentary.

“Liquidity is strong, credit is flowing and the financial sector is actively supporting growth,” he added.

Broken down, the banking sector’s total loan book reached P17.2 trillion, up over 12 percent from a year earlier.

This includes interbank lending and short-term placements with the central bank.

Investments also expanded, rising by 8 percent to P8.68 trillion.

More assets acquired

At the same time, real and other properties acquired by banks in settlement of loans and receivables amounted to P189.2 billion, up by almost 18 percent.

Other assets likewise grew 23 percent to P2.43 trillion.

Meanwhile, cash and due from banks went up by nearly 16 percent to P2.2 trillion.

On the liabilities side, local banks’ obligations rose 13 percent to P26.5 trillion in April.

Deposits—the industry’s main funding source—made up the bulk, increasing 11 percent to nearly P22 trillion.

Peso deposits grew 11.66 percent to P18.2 trillion.

Also, foreign currency deposits rose nearly 15 percent to P3.9 trillion.

Further, capital stock amounted to P1.5 trillion, up 2.8 percent.

“Looking ahead, we expect bank assets to continue expanding at a healthy pace, driven by lending to infrastructure, businesses and consumers, especially as inflation eases and rates eventually come down,” Ravelas said.

“Bottom line: short-term fluctuations are normal, but the trend is clearly upward—and that’s a good signal for the economy,” he added.