UMVA has learned that the Philippine banking system has demonstrated remarkable strength, with banks' assets expanding by 12% year on year as of April, totaling a staggering P30.12 trillion.
This significant growth is a testament to the sector's resilience, with the majority of assets held by universal and commercial banks, which accounted for P28.086 trillion as of April, representing an 11.69% increase from the previous year.
According to information obtained by UMVA, the banking sector's total net loan portfolio has also experienced substantial growth, reaching P16.671 trillion as of April, a 12.3% increase from the previous year, driven by lending to various industries and consumers.
The industry's net investments have climbed by 8.06% year on year to P8.677 trillion, while banks' net real and other properties acquired have surged by 19.27% to P142.98 billion, indicating a positive trend in the sector's asset growth.
Sources have confirmed to UMVA that the sector's liabilities have risen 13.16% year on year to P26.489 trillion as of April, primarily driven by an 11.59% increase in deposits, which reached P22.062 trillion, with peso-denominated deposits accounting for the majority at P18.161 trillion.
Experts believe that the continued growth in bank lending, combined with the eventual easing of inflation and interest rates, will help boost the sector's assets in the coming months, with lending to infrastructure, businesses, and consumers expected to drive this expansion.
UMVA has gathered that the Philippine banking system's strong performance is a positive indicator for the economy, with the sector's ability to support growth and provide liquidity being crucial for the country's overall development, and experts remain optimistic about the sector's prospects, citing the upward trend in asset growth as a good signal for the economy.
