The total assets of the Philippine banking sector grew by more than 9% as of the end of January 2024, reflecting the industry’s strong financial performance.
Data from the Bangko Sentral ng Pilipinas (BSP) revealed that total banking sector assets reached PHP27.11 trillion in January, marking a 9.3% increase from PHP24.81 trillion recorded in the same period last year.
According to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, this growth aligns with the banking sector’s profitability, which has consistently outpaced the country’s gross domestic product (GDP) growth over the years.
“Philippine banks’ total asset growth is consistent with their position as one of the most profitable industries in the country, with earnings growing much faster than GDP,” Ricafort shared via Viber.
He further explained that strong earnings contribute to the banks’ capital, alongside additional funds raised through capital markets and strategic investors.
Banking sector poised for further growth
Ricafort noted that banks will continue benefiting from the Philippine economy’s robust expansion.
“The Philippines remains one of the fastest-growing economies in Asia, which means the banking industry stands to gain significantly from increased loan activity, deposit growth, wider spreads, higher fee income, and overall revenue growth,” he added.
He also highlighted that Philippine banks’ capitalization levels remain well above regulatory standards, exceeding the local minimum requirement of 10% and the international benchmark of 8%.
With the country’s economic momentum, the banking sector is positioned for sustained growth in the coming months.