PH banks’ assets higher by 10.8% at end-March

The Philippine banking industry’s total assets rose by 10.8% as of end-March, according to Bangko Sentral ng Pilipinas (BSP) data.

Banks’ combined assets increased to P25.65 trillion as of end-March from P23.15 trillion in the same period a year ago, preliminary data from the central bank showed.

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 rose by 9.9% to P13.22 trillion in the first quarter from P12.03 trillion a year ago.

Net investments, or financial assets and equity investments in subsidiaries, climbed by 10% to P7.36 trillion in the period from P6.69 trillion.

On the other hand, cash and due from banks declined by 4.9% to P2.94 trillion at end-March from P3.09 trillion in the year prior.

Net real and other properties acquired went up by 5.9% to P106.99 billion in the first quarter from P101.03 billion.

BSP data showed banks’ other assets surged by 64% to P2.02 trillion from P1.23 trillion.

Meanwhile, the total liabilities of the banking system rose by 10.7% to P22.53 trillion in the first quarter from P20.36 trillion a year earlier.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher asset level as of end-March was consistent with recent loan growth data.

Outstanding loans of universal and commercial banks grew by 9.4% year on year to P11.796 trillion as of March, BSP data showed.

“This was also facilitated by the growth in banks’ deposits that supported the continued growth in banks’ loans, investments, and in overall assets,” Mr. Ricafort said in a Viber message.

“Furthermore, the continued growth in banks’ earnings also led to higher capital that also supported increased lending and investment activities, thereby leading to further growth in banks’ assets,” he added.

Separate central bank data showed that the Philippine banking industry’s net income rose by 2.95% to P92.107 billion at end-March from P89.47 billion in the same period a year ago. — Luisa Maria Jacinta C. Jocson