TOTAL assets of the Philippine banking sector rose to P29.2 trillion as of end-February, data from the Bangko Sentral ng Pilipinas showed, up 8.3 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.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the increase in assets reflected “healthy, disciplined growth.”
“Loans are expanding alongside steady economic activity, while banks are also increasing investments in government securities to manage liquidity amid still‑elevated interest rates,” he added.
“This tells us that confidence is intact, but banks are being selective and risk‑aware.”
The aggregate loan portfolio, inclusive of IBL and RRP, hit P16.08 trillion, higher than the year-earlier P14.68 trillion but lower than month earlier’s P16.12 trillion.
Net investments, including financial assets and equity investments in subsidiaries, rose to P8.75 trillion from P8.57 trillion and P7.76 trillion a month and a year earlier, respectively.
Cash and amounts due from banks, meanwhile, dropped to P1.99 trillion from P2.37 trillion. It was also lower than January’s P2.04 trillion.
The value of net real and other properties acquired grew to P140.34 billion from P116.48 billion and was higher than January’s P139.14 billion.
Other assets totaled P2.24 trillion, more than the P2.02 trillion recorded a year earlier.
The banking system’s total liabilities, meanwhile, rose to P25.5 trillion from P25.4 trillion and P23.5 trillion a month and year earlier, respectively.
“Moving forward, asset growth should continue but at a more measured pace — focused on quality lending and balance‑sheet strength,” Ravelas said.
“Bottom line: the banking system is liquid, stable and growing for the right reasons,” he added.
NIÑA MYKA PAULINE ARCEO