The asset base of the Philippine banking system continued to grow at a rate of 7.7 percent during the first half of 2025, according to report released by the Bangko Sentral ng Pilipinas (BSP) Friday.
The report on the Philippine Financial System showed that total assets of the domestic financial system reached P28.2 trillion as of end-June.
“The asset growth was supported by stable domestic deposits and robust capital and liquidity buffers, with loans and investments comprising 84.2 percent of total assets,” it said.
Deposits in the first half of 2025 rose by 5.9 percent to P20.7 trillion, and capital rose 10.6 percent to P3.5 trillion.
BSP Governor Eli Remolona Jr. said the turnout underscored the banking system’s capacity to take advantage of opportunities amidst the risks.
“In line with this, the BSP will continue pursuing policies that further strengthen the banking system. This supports an environment that helps banks to continue growing, supporting economic activity, and responding to the evolving needs of Filipinos,” he said in a statement.
Loans rose 10.9 percent on an annual basis to P15.9 billion, with real estate accounting for the biggest share at 18.1 percent.
Among others, the household sector’s share in total loans is 14.8 percent, electricity 10.6 percent, wholesale and retail trade 10.4 percent, and manufacturing 7.9 percent.
“Credit expansion across major sectors underscores the pivotal role of banks in fueling economic activities,” the report said.
“Profitability and capitalization remained robust, underpinned by prudent risk management and broad-based lending. This solid performance, bolstered by the country’s dynamic economy and financial reforms, highlights the system’s strength in seizing opportunities, navigating emerging risks, embracing innovation, and fostering inclusive and sustainable growth,” it added.
During the first semester of 2024, the total assets of the Philippine banking system reached P26.2 trillion in June, recording a 12.4 percent growth year-on-year. It was faster than the 9.1-percent increase in June 2023 and the 11.0-percent pre-pandemic growth rate.
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