The domestic banking system reported total assets of P26.194 trillion as of end-June, higher by 12.44 percent from the same period last year of P23.295 trillion, based on the Bangko Sentral ng Pilipinas’ (BSP) latest data.
The growth in banking assets came from the expansion of the industry’s deposit base, loans, and investments. Total assets refer to banks’ total resources and include cash and due from banks, total loan portfolio, total investments, real and other properties acquired (ROPA), and other assets held by financial institutions.
As of end-June, banks’ total liabilities amounted to P23.031 trillion which was 12.70 percent more than last year’s P20.434 trillion. The liabilities are banks’ financial obligations such as the sum of its 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.
BSP data show that banks’ net loans, inclusive of interbank loans receivable and reverse repurchase, totaled P13.840 trillion in the first six months, up by 12.53 percent from the same time in 2023 of P12.298 trillion.
Net investments, which include financial assets and equity investments, totaled P7.528 trillion at the end of June, about 11.19 percent more than last year’s P6.770 trillion.
Meanwhile, cash and due from banks, cash on hand, and banks’ receivables, among other things, dropped to P2.748 trillion, or 4.25 percent lower than the previous year’s P2.870 trillion.
Banks’ net ROPA, on the other hand, increased by 6.88 percent to P109.355 billion from P102.308 billion last year.
By banking group, the 44 big banks or universal and commercial banks accounted for about 94 percent of total industry assets, which stood at P24.593 trillion as of end-June, while its total liabilities stood at P21.689 trillion.
The 42 thrift banks reported assets of P1.057 trillion, while their total liabilities amounted to P893.243 billion.
The six digital banks have total assets of P104.118 billion and liabilities of P90.017 billion.
The 364 rural banks and 22 cooperative banks as of end-June contributed P439.249 billion in total assets, while the sector’s liabilities amounted to P358.455 billion.
Based on BSP’s end-March data on banking assets’ ranking, the SM Group’s BDO Unibank Inc. remains the country’s biggest bank in terms of total assets at P4.375 trillion.
The second largest lender in terms of asset size is the Ty family’s Metropolitan Bank and Trust Co. with P3.271 trillion followed by government-controlled Land Bank of the Philippines (Landbank) with P3.268 trillion.
The Ayala-led Bank of the Philippine Islands is the country’s fourth biggest bank in terms of assets with P3.033 trillion while another Sy bank, China Banking Corp., is the fifth biggest lender with P1.627 trillion.
The other banks in the top 10 in terms of asset size are the Yuchengcos’ Rizal Commercial Banking Corp. with P1.284 trillion; Lucio Tan Group’s Philippine National Bank with P1.193 trillion; Security Bank Corp. with P1.069 trillion; Aboitiz-led Union Bank of the Philippines with P983.205 billion; and state-owned Development Bank of the Philippines with P974.928 billion.
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The article was originally published in Manila Bulletin and written by Lee C. Chipongian.
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