THE Philippine banking sector’s assets declined to P30.72 trillion as of end-July, Bangko Sentral ng Pilipinas (BSP) data showed.
Bank assets primarily consist of deposits, loans, and investments, including cash, amounts due from other banks, interbank loans receivable (IBL), and reverse repurchase (RRP) arrangements, adjusted for allowances for credit losses.
This is down from month earlier’s P31.13 billion but higher than last year’s P27.74 billion.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the decline could be due to the effects of the Middle East conflict, which triggered volatility in global financial markets, particularly a sell-off in global and local bond markets that reduced investment income.
However, Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the banking sector remains “well-capitalized, liquid, and supportive of growth despite external uncertainties and softer global economic conditions.”
The aggregate loan portfolio, inclusive of IBL and RRP, hit P16.91 trillion, higher than the year-earlier P15.26 trillion but lower than month earlier’s P17.24 trillion.
Net investments, including financial assets, and equity investments in subsidiaries, rose to P8.91 trillion from P8.24 trillion a year earlier but slightly lower than the P9.09 trillion a month earlier.
Cash and amounts due from banks, meanwhile, also increased to P2.14 trillion from P1.92 trillion and P2.07 trillion in July 2025 and June 2026.
The value of net real and other properties acquired grew to P165.7 billion from P129.72 billion and P160.84 billion a year and month earlier, respectively.
Other assets totaled P2.6 trillion, more than the P2.19 trillion recorded a year earlier.
The banking system’s total liabilities, meanwhile, rose to P27.06 trillion from P24.22 trillion in July 2025 but slightly lower than the month-earlier P27.44 trillion.
