Banks’ assets grow to P29 trillion as of Feb.

PHILIPPINE BANKS’ total assets grew by 8.33% at end-February as they continued to grow their loan portfolios, Bangko Sentral ng Pilipinas (BSP) data showed.

Banks’ combined assets increased to P29.196 trillion as of February from P26.85 trillion in the same period last year.

Month on month, the sector’s total assets also inched up by 0.29% from P29.11 trillion as of January.

Banks’ assets are mainly supported by deposits, loans, and investments. These include cash and due from banks as well as interbank loans receivable (IBL) and reverse repurchase (RRP) net of allowances for credit losses.

Asset growth “reflects continued loan growth, deposit expansion, and asset accumulation, supported by still-resilient domestic demand and financial intermediation,” John Paolo R. Rivera, a senior research fellow at the Philippine Institute for Development Studies, said via Viber.

“For the rest of 2026, asset growth is expected to continue but at a more moderate pace. Higher interest rates, inflation, and external uncertainties may temper credit demand and risk-taking,” he said. “Our banking system remains stable, with growth likely to be steady but more cautious moving forward.”

At end-February, universal and commercial banks held most of the sector’s assets at P27.199 trillion, rising by 7.71% from the P25.251 trillion seen a year prior.

The assets of thrift banks increased by 26.52% year on year to P1.385 trillion from P1.095 trillion.

Digital banks’ assets also jumped by 41.04% to P172.058 billion as of February from P121.992 billion in the previous year.

Meanwhile, as of end-2025, rural and cooperative banks had P440.545 billion in assets, the latest available BSP data showed, 9.17% lower than P485.027 billion in the previous year.

The banking industry’s total net loan portfolio inclusive of IBL and RRP reached P16.084 trillion as of end-February, climbing by 9.54% from P14.683 trillion a year prior. Month on month, however, the sector’s total loans inched down by 0.21% from P16.117 trillion as of January.

Net investments, or financial assets and equity investments in subsidiaries, rose by 12.75% to P8.747 trillion from P7.758 trillion.

Banks’ net real and other properties acquired amounted to P140.34 billion as of February, jumping by 20.49% year on year from P116.478 billion.

Other assets increased by 10.62% year on year to P2.237 trillion from P2.022 trillion.

Meanwhile, cash and due from banks fell by 16.17% to P1.988 trillion at end-February from P2.372 trillion in the prior year.

Central bank data also showed that the total liabilities of the Philippine banking system stood at P25.504 trillion as of February, rising by 8.34% year on year from P23.54 trillion.

This was mainly made up of deposits, which expanded by 9.06% to P21.524 trillion in the same period from P19.737 trillion. 

Broken down, peso-denominated deposits totaled P17.776 trillion at end-February, while foreign currency deposits amounted to P3.748 trillion. — Aaron Michael C. Sy