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April 12, 2024

Philippine banks’ total assets top P25 trillion in 2023

The aggregate assets of the Philippine banking system soared to a record P25.146 trillion in 2023, rep-representing a 9.1-percent increase from P23.047 trillion in 2022, according to the Bangko Sentral ng Pilipinas (BSP) data.

Banks’ assets, consisting of deposits, loans, and investments, when managed effectively, yield stable earnings, robust capital, and sufficient liquidity.

Banks’ liabilities, encompassing financial and deposit liabilities, grew 8.55 percent in 2023 to P22.08 trillion from P20.341 trillion in 2022.

Net loans, including interbank loans receivable and reverse repurchase agreements, amounted to P13.384 trillion as of end-December 2023, reflecting a 9.72-percent rise from the previous year’s P12.198 trillion.

Net loans significantly contribute to total assets following investments and cash reserves.

Banks’ net investments, comprising financial assets and equity investments, increased 10.94 percent to P7.022 trillion from P6.429 trillion.

However, cash reserves decreased by 10.82 percent to P2.917 trillion from P3.271 trillion in 2022.

Meanwhile, the industry’s net real and other properties acquired (ROPA) slightly improved by 1.29 percent to P105.694 billion from P104.347 billion.

Among banking groups, the 45 major banks, including universal and commercial banks, accounted for about 94 percent of total industry assets, amounting to P23.624 trillion.

The assets of 42 thrift banks totaled P1.038 trillion in the previous year, while the 390 rural and cooperative banks reported assets of P395.521 billion as of end-September 2023. The six digital banks reported total assets of P88.69 billion in 2023.

Regarding asset size, the top five largest banks in the country are BDO Unibank Inc. of the SM Group, the government-owned Land Bank of the Philippines, the Metropolitan Bank and Trust Co. controlled by the Ty family, Bank of the Philippine Islands led by Ayala Corp. and China Banking Corp., a sister company of BDO.

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