PH bank assets near P30T, driven by lending surge
Philippine banks’ total assets climbed to nearly P30 trillion in 2025, lifted by robust loan growth and a turn to higher-yielding investments amid lower rates.
Total resources of local lenders grew by 9 percent from a year earlier to P29.8 trillion, latest data from the Bangko Sentral ng Pilipinas (BSP) showed. The figure includes cash and due from banks, loans, investments, real and other properties acquired and other assets.
Robert Dan Roces, group economist at SM Investments, said last year’s performance was “supported by steady domestic demand, easing inflation and stable funding conditions.”
At its first policy meeting of 2026, the BSP cut the benchmark interest rate by 0.25 percentage points to 4.25 percent, the lowest in more than three years. The widely expected move brought total reductions since the easing cycle began in August 2024 to 2.25 percentage points.
“Loan demand improved as borrowing costs stabilized, while banks also increased investments in higher-yielding securities,” Roces said in a commentary.
“Strong deposits, remittances and sound capital buffers gave banks room to expand their balance sheets without taking on excessive risk,” he added.
Investments
Broken down, the banking sector’s total loan book—including interbank lending and short-term placements with the central bank—reached P17.1 trillion, up nearly 12 percent from a year earlier.
Investments also posted a double-digit expansion, rising by 10 percent to P8.6 trillion. At the same time, real and other properties acquired by banks in settlement of loans and receivables amounted to P182.5 billion, up by almost 16 percent. Other assets likewise grew 18 percent to P2.3 trillion.
These gains offset an 18.5 percent drop in cash and due from banks, which fell to P2.2 trillion.
On the liabilities side, local banks’ obligations rose nearly 9 percent to P26.1 trillion last year.
Deposits—the industry’s main funding source—made up the bulk, increasing 7.3 percent to nearly P22 trillion. Peso deposits grew 6 percent to P18 trillion, while foreign currency deposits rose nearly 12 percent to P3.7 trillion.
Meanwhile, capital stock amounted to P1.5 trillion, up 2.7 percent.
