Philippine banking sector assets grow 9.3% to PHP27.11T

The total assets of the Philippine banking sector increased by 9.3% year on year as of end-January this year, rising to PHP27.11 trillion from PHP24.81 trillion in January last year.

Banks' combined loan portfolio climbed by 13.7%, reaching PHP14.69 trillion, while net investments rose by 5.8% to PHP7.68 trillion.

Rizal Commercial Banking Corporation chief economist Michael Ricafort attributed the growth to banks’ profitability and earnings surpassing GDP growth, with total liabilities increasing by 9.2% to PHP23.71 trillion.

The banking sector is expected to see further increases in loans, deposits, spreads, fee income, and overall revenues due to the Philippine economy's rapid growth in Asia.

Banks' capitalization exceeds both the local minimum standard of 10% and the international standard of 8%, ensuring financial stability and supporting strong lending activity that grew by 12.8% in January.