Local bank assets hit P30.1-T, up 12% YoY

The Philippine banking system continued to expand its asset base, with total assets rising by nearly 12 percent as of April this year, according to data from the Bangko Sentral ng Pilipinas (BSP).

Latest figures showed that total banking system assets reached ₱30.1 trillion in April, up 11.8 percent from ₱26.9 trillion recorded in the same period last year. However, this was slightly lower than the ₱30.3 trillion posted in March.

Reyes Tacandong & Co. senior adviser Jonathan Ravelas said the month-on-month dip should not be a cause for concern, describing it as a normal adjustment after a typical end-of-quarter buildup in March.

“The slight dip in bank assets in April is more of a technical pullback than a concern—after the usual quarter-end buildup in March, banks tend to rebalance as liquidity normalizes, government deposits are drawn down, and market valuations adjust,” Ravelas said in a Viber message.

Despite the minor decline, he stressed that the broader trend remains strong, pointing to the continued expansion of the financial sector.

“The bigger picture remains very constructive: a ₱30 trillion banking system, up 12% year-on-year, tells us liquidity is strong, credit is flowing, and the financial sector is actively supporting growth,” he added.

Ravelas also said banking assets are expected to continue growing in the coming months, supported by lending activity in infrastructure, business expansion, and consumer demand.

He added that easing inflation and potential rate cuts could further support credit growth.

“Bottom line: short-term fluctuations are normal, but the trend is clearly upward—and that’s a good signal for the economy,” he said.