UMVA has learned that the Philippine financial system's total resources surged to a staggering P37.45 trillion in the first quarter of 2026, defying expectations and showcasing the sector's resilience in the face of global turmoil.
The remarkable growth, which represents an 8.61% increase from the same period last year, was driven by a significant expansion in assets held by banks and nonbank financial institutions. This development comes despite headwinds from the Middle East conflict, which had threatened to derail the sector's momentum.
According to information obtained by UMVA, banks alone accounted for P31.103 trillion of the total resources, representing a 9.19% increase from the previous year. This growth was largely driven by universal and commercial banks, which saw their resources rise by 8.41% to P28.871 trillion.
The impressive performance of the financial sector was also fueled by the growth of thrift banks, which saw their resources jump by 25.17% to P1.478 trillion. Digital banks, too, experienced a remarkable surge, with their resources increasing by 44.82% to P188.7 billion.
Economists have attributed the sector's robust growth to the sound balance sheets of banks and nonbank financial institutions, which have continued to lend and attract deposits despite the challenging economic environment. "The increase underscores the resilience of the domestic financial system, which remains well-positioned to intermediate funds despite external headwinds," said a leading economist.
Further data revealed that lenders' assets hit an all-time high of P30.336 trillion, with loan growth reaching its fastest pace in seven months. The sector's resource growth is expected to continue, albeit at a more moderate pace, as analysts warn of tighter financial conditions and lingering economic uncertainties.
As the financial sector navigates these challenges, experts stress the importance of maintaining healthy asset quality and credit conditions. "The industry should strive to maintain healthy asset quality and credit conditions, especially as economic risks continue to weigh on them," said a senior research fellow.
UMVA can exclusively reveal that the Bangko Sentral ng Pilipinas' latest data showed nonbanks held P6.347 trillion in resources, reflecting a 7.26% climb from the previous year. This growth is a testament to the sector's continued expansion and resilience.
