Philippine banking assets hit P27.26 trillion as lending, deposits surge

The Philippine banking system's total assets rose to %u20B127.26 trillion at the end of May 2025, marking a 6.4 percent increase from %u20B125.62 trillion in the same month last year, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

The growth, equivalent to %u20B11.64 trillion year-on-year, was attributed primarily to sustained double-digit expansion in lending activity and continued growth in deposits, BSP data showed.

Compared to the previous month, total assets also posted a 1.4 percent uptick from %u20B126.89 trillion in April.

The increase was largely driven by the banking sector’s total loan portfolio, which jumped by 12.7 percent to %u20B115.12 trillion, up from %u20B113.42 trillion in May 2024. Loans continue to make up the largest share of bank assets.

Net investments—covering financial instruments and equity holdings—rose by 6.6 percent to %u20B17.96 trillion, while real and other properties acquired (ROPA) increased 11.9 percent to %u20B1121.1 billion from %u20B1108.2 billion.

On the liabilities side, banks held a total of %u20B123.79 trillion, up 5.7 percent year-on-year. Deposits, which made up over 84 percent of total liabilities, climbed to %u20B120.06 trillion, with %u20B116.59 trillion in peso accounts and %u20B13.47 trillion in foreign currency deposits.

However, the banking system’s cash and due from banks dropped sharply by 26.4 percent to %u20B11.98 trillion, down from %u20B12.69 trillion a year earlier.

In a comment on the latest data, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort said the steady asset buildup reflects strong fundamentals in the banking sector.

“The continued growth in banks’ assets was largely brought about and reflected by the sustained double-digit growth in loans and continued growth in bank deposits,” Ricafort said.

He noted that growth in bank lending and deposit-taking outpaced the country’s 5.4 percent GDP expansion in the first quarter, fueled in part by the BSP’s cumulative 1.25-percentage-point rate cut since last year.

Ricafort added that the asset growth also points to continued profitability in the sector, which remains one of the most profitable industries in the Philippine economy.