Manila: The asset base of the Philippine banking system continued to grow at a rate of 7.7 percent during the first half of 2025, according to a report released by the Bangko Sentral ng Pilipinas (BSP) Friday. The report on the Philippine Financial System showed that total assets of the domestic financial system reached PHP28.2 trillion as of end-June.
According to Philippines News Agency, the asset growth was supported by stable domestic deposits and robust capital and liquidity buffers, with loans and investments comprising 84.2 percent of total assets. Deposits in the first half of 2025 rose by 5.9 percent to PHP20.7 trillion, and capital rose 10.6 percent to PHP3.5 trillion.
BSP Governor Eli Remolona Jr. stated that the turnout underscored the banking system's capacity to take advantage of opportunities amidst the risks. He emphasized that the BSP would continue pursuing policies to further strengthen the banking system, supporting an environment conducive to growth, economic activity, and responding to the evolving needs of Filipinos.
Loans rose 10.9 percent on an annual basis to PHP15.9 billion, with real estate accounting for the biggest share at 18.1 percent. Among others, the household sector's share in total loans is 14.8 percent, electricity 10.6 percent, wholesale and retail trade 10.4 percent, and manufacturing 7.9 percent. The report noted that credit expansion across major sectors underscores the pivotal role of banks in fueling economic activities.
Profitability and capitalization remained robust, underpinned by prudent risk management and broad-based lending. This solid performance, bolstered by the country's dynamic economy and financial reforms, highlights the system's strength in seizing opportunities, navigating emerging risks, embracing innovation, and fostering inclusive and sustainable growth. During the first semester of 2024, the total assets of the Philippine banking system reached PHP26.2 trillion in June, recording a 12.4 percent growth year-on-year, surpassing the 9.1-percent increase in June 2023 and the 11.0-percent pre-pandemic growth rate.
