TOTAL assets of the Philippine banking sector rose to P29.8 trillion last year, data from the Bangko Sentral ng Pilipinas (BSP) showed, up 8.7 percent from 2024’s P27.4 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.
The aggregate loan portfolio, inclusive of IBL and RRP, rose to P16.6 trillion in 2025 — higher than the year-earlier P14.8 trillion and the P15.9 trillion as of end-November.
Net investments, including financial assets and equity investments in subsidiaries, grew to P8.6 trillion from P8.4 trillion and P7.8 trillion a month and a year earlier.
Cash and amounts due from banks, meanwhile, dropped to P2.2 trillion from P2.7 trillion. It was, however, higher than end-November’s P2.05 trillion.
The value of net real and other properties acquired grew to P138.1 billion from P117.6 billion and was higher than the P136.9 billion seen in November.
Other assets totaled P2.3 trillion, more than the P1.9 trillion recorded a year earlier.
The banking system’s total liabilities, meanwhile, rose to P26.2 trillion from P25.1 trillion and P24.1 trillion a month and year earlier, respectively.
SM Investments Corp. economist Robert Dan Roces said the increase in assets was due to steady domestic demand, easing inflation and stable funding conditions.
“Loan demand improved as borrowing costs stabilized, while banks also increased investments in higher-yielding securities,” he noted.
“Strong deposits, remittances, and sound capital buffers gave banks room to expand their balance sheets without taking on excessive risk,” Roces continued.