Philippine banking sector’s total assets as of end-May reached P22.78 trillion, 9.27 percent higher compared to the same period last year of P20.85 trillion, based on Bangko Sentral ng Pilipinas (BSP) data.

Bank assets are mainly funded by deposits, loans and investments.

Meanwhile, the banking system’s liabilities also increased by 9.13 percent to P19.95 trillion from P18.28 trillion same time in 2022.

As of end-May, under total assets the industry’s net loans inclusive of interbank loans receivable (IBL) and reverse repurchase (RRP) went up by 10.14 percent year-on-year to P12.15 trillion from P11.03 trillion.

Net loans have a big contribution to total assets after investments and cash and due from banks.

Net investments, which are financial assets and equity investments, also went up by 12.39 percent to P6.71 trillion from P5.97 trillion in 2022. Cash and due from banks however declined by 29.58 percent to P2 trillion versus P2.84 trillion last year.

BSP numbers also showed that under assets, net real and other properties acquired or ROPA went up by 3.89 percent to P100.93 billion from P97.15 billion. The “other assets” gathered by the central bank amounted to P1.18 trillion, up 30 percent from P905.24 billion last year.

By banking group, the 45 big banks or universal and commercial banks accounted for about 94 percent of total industry assets at P21.40 trillion of the total as of end-May.

Meanwhile, the 43 thrift banks’ assets totaled P942.67 billion during the period.

The rural and cooperative banks are delayed in reporting but as of end-March 2023, the total assets amounted to P367.30 billion. There are 396 rural and cooperative banks, of which 374 are rural banks as of end-June this year.

In 2022, the total assets of the banking system accounted for about 83 percent of the total resources of the domestic financial system. Total resources of the financial system exclude the assets of the BSP but include the assets of banks and non-bank financial institutions.

Based on BSP data, in terms of assets, the SM Group’s BDO Unibank Inc. is the country’s biggest bank with total assets of P3.92 trillion as of end-March this year.

Government-owned Land Bank of the Philippines is second largest lender with total assets of P3.11 trillion followed by the Ayala-led Bank of the Philippine Islands with P2.66 trillion.

The Ty-controlled Metropolitan Bank and Trust Co. with total assets of P2.62 trillion as of end-March is in fourth slot while China Banking Corp., a sister company of BDO, has P1.36 trillion.

The other banks in the top 10 in terms of asset size are Rizal Commercial Banking Corp., Philippine National Bank, state-owned Development Bank of the Philippines, Union Bank of the Philippines and Security Bank Corp.

Source:
courtesy of MANILA BULLETIN

by LEE C. CHIPONGIAN

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