Local banking sector total assets increase by 11 percent in Sept.

The total assets of the Philippine banking sector increased by 11.3% as of the end of September, reaching P26.73 trillion, up from P24 trillion during the same period last year, according to data from the Bangko Sentral ng Pilipinas (BSP).

This growth also surpassed the P25.9 trillion in assets recorded in August 2024.

Michael Ricafort, an analyst at Rizal Commercial Banking Corporation, attributed the asset growth to higher bank income, largely driven by the strong performance in the loan sector. “The continued growth in banks’ net income is linked to the double-digit rise in loan businesses, which boosted interest income for major banks,” Ricafort explained.

The latest BSP data revealed that banks’ net income reached P290.05 billion as of September, up from P272.55 billion during the same period in 2023.

Ricafort also noted that the recovery of the local economy has led to more banking transactions, driving growth in deposits and other services, which in turn contributed to higher revenues from fees and charges.

“As a result, the sustained growth in net income has strengthened bank capitalization, enabling increased lending and investment activities, further driving the expansion of banks’ resources,” Ricafort added.