Banks’ total assets grow over 9% in January

The total assets of the Philippine banking sector rose by 9.3 percent year-on-year, reaching PHP27.11 trillion as of end-January 2025, according to data from the Bangko Sentral ng Pilipinas (BSP).

The latest figures, up from PHP24.81 trillion in the same period last year, highlight the continued expansion and profitability of the country’s banking industry.

“Philippine banks' total asset growth is consistent with the fact that they are among the most profitable industries in the country, with earnings growth much faster than GDP growth for the country’s largest banks, as consistently seen for many years,” said Rizal Commercial Banking Corporation (RCBC) Chief Economist Michael Ricafort.

He added that strong earnings contribute to banks' capital growth, alongside fund-raising activities through capital markets or strategic investors.

Ricafort expects the banking sector to further benefit from the country’s robust economic performance.

“The Philippines remains one of the fastest-growing economies in Asia, so the banking industry would be one of the biggest beneficiaries in terms of faster growth in loans, deposits, spreads, fee income, and overall revenues,” he said.

He also noted that Philippine banks maintain capitalization levels above both the local minimum requirement of 10 percent and the international benchmark of 8 percent, ensuring financial stability and resilience.

With strong asset growth and a positive economic outlook, the Philippine banking sector remains a key pillar of the country's financial system, supporting business expansion and consumer lending.