PH banks’ total assets expanded 9.2% to $439.3b in 2023
Both lending and investing activity grew during the period.
The total assets of the Philippine banking sector expanded by 9.2% to approximately $439.3b (PHP25.2t) in 2023, according to central bank data released in May 2024.
This represents 83.3% of the total resources in the Philippine financial system, the Bangko Sentral ng Pilipinas (BSP) said in a report.
Banks expanded their lending and investing activities by 9.8% and 9.3%, respectively. Total lending is $242.3b (PHP13.9t) by end-2023, and investing activities totalled PHP6.8t. Loans and investments collectively comprised about 80.0 percent of the banking industry’s total assets.
Total loans of the banking system to micro-, small, and medium enterprises reached over $8.7b (PHP502.2b).
Loans to all industries, including households, also grew in 2023, with households posting the highest growth at 24.6%, the BSP said.
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Overall, Philippine banks continued to report robust balance sheets and profitable operations in 2023, the BSP said.
“Capital and liquidity buffers remained sufficient against unforeseen shocks and market volatility, with capital adequacy and liquidity ratios that are well above BSP regulatory minima and international thresholds,” it said.
BSP governor Eli M. Remolona, Jr. said that the continued health and stability of the Philippine financial system is a cornerstone to inclusive and sustainable growth of the local economy.
Non-bank financial institutions also posted solid performance in 2023, the BSP said.
(US$1 = PHP57.36; as of 12:14 PM 9 May 2024)