PH banks’ assets up 10.8% to P25.65T

TOTAL assets of the Philippine banking sector rose to P25.65 trillion as of end-March, data from the Bangko Sentral ng Pilipinas showed, 10.8 percent higher than the year-earlier P23.15 trillion.

Bank assets primarily consist of deposits, loans, and investments, including cash, amounts due from other banks, interbank loans receivable (IBL), and reverse repurchase (RRP) arrangements, adjusted for allowances for credit losses.

The aggregate loan portfolio inclusive of IBL and RRP came in at P13.22 trillion, 9.9 percent higher than the P12.03 trillion recorded in the same period last year.

Net investments, including financial assets and equity investments in subsidiaries, rose by 9.9 percent to P7.36 trillion from P6.69 trillion.

Cash and amounts due from banks, however, slipped by 4.8 percent to P2.94 trillion from P3.09 trillion.

The value of net real and other properties acquired increased by 5.89 percent to P106.99 billion from P101.03 billion.

Other assets totaled P2.02 trillion during the period, 64.3 percent more from P1.23 trillion a year earlier.

The banking system’s total liabilities rose by 10.6 percent to P22.53 trillion from P20.36 trillion in the previous year.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase in bank assets was likely driven by growth in deposits, which in turn supported the expansion of loans, investments, and overall asset growth.

“The continued growth in banks’ earnings also led to higher capital that also supported increased lending and investment activities,” he added.