TOTALassets of the Philippine banking sector rose to P28.7 trillion as of end-November, data from the Bangko Sentral ng Pilipinas (BSP) showed, up 7.4 percent from the year-earlier P26.7 trillion.
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.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase was largely driven by continued double-digit growth in bank lending, led by consumer loans, that expanded by more than 20 percent.
The aggregate loan portfolio, inclusive of IBL and RRP, rose to P15.9 trillion — higher than the year-earlier P14.2 trillion and October’s P15.6 trillion.
Net investments, including financial assets and equity investments in subsidiaries, grew to P8.4 trillion from P8.3 trillion and P7.9 trillion a month and a year earlier.
Cash and amounts due from banks, meanwhile, dropped to P2.05 trillion from P2.6 trillion. It was, however, higher than October’s P2.04 trillion.
The value of net real and other properties acquired grew to P136.9 billion from P113.7 billion and was higher than October’s P136.1 billion.
Other assets totaled P2.25 trillion, more than the P1.9 trillion recorded a year earlier.
The banking system’s total liabilities, meanwhile, rose to P25.1 trillion from P24.7 trillion and P23.4 trillion a month and year earlier, respectively.
Ricafort said banks’ net income continued to grow, supported by trading gains that boosted their capital and total assets.
“Going forward, further cut/s in BSP rates, Fed (US Federal Reserve) rates, RRR (reserve requirement ratio) rates could lead to further reduction in borrowing costs that could lead to greater demand in bank loans that could also sustain growth in bank assets,” he added.