PHL banks’ assets climb by 9.6% at end-February
THE Philippine banking sector’s total assets climbed by 9.6% year on year as of end-February, data from the central bank showed.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed banks’ combined assets rose to P24.95 trillion as of end-February from P22.77 trillion in the same period a year ago.
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.
The banking industry’s total loan portfolio inclusive of IBL and RRP stood at P13.07 trillion in the period, 9.1% higher than the P11.98 trillion a year prior.
Net investments — or financial assets and equity investments in subsidiaries — climbed by 10.3% to P7.4 trillion at end-February from P6.71 trillion a year ago.
On the other hand, cash and due from banks dropped by 12% to P2.44 trillion from P2.78 trillion.
Net real and other properties acquired edged up by 2.9% to P107.097 billion from P104.106 billion in the year-ago period.
Other assets were recorded at P1.93 trillion in the period, surging by 61.8% from P1.193 trillion a year prior.
Meanwhile, the total liabilities of the banking system also increased by 9.4% to P21.86 trillion from P19.99 trillion in the year-ago period.
Security Bank Corp. Chief Economist Robert Dan J. Roces said that the end-February asset level indicates that the banking sector is showing signs of growth.
“This can be attributed to a bigger loan portfolio, suggesting increased lending activity, and higher net investments, indicating lenders seeking better returns,” he said in a Viber message.
“While cash holdings dipped slightly, the overall rise in assets and liabilities points towards a potentially growing economy,” he added. — Luisa Maria Jacinta C. Jocson