Total assets of the Philippine banking system grew by more than 10 percent year on year in July, reflecting the sector’s continued expansion despite domestic and external uncertainties.
Data from the Bangko Sentral ng Pilipinas showed banking system assets reached Php 30.71 trillion in July, up from Php 27.74 trillion in the same month last year.
The July figure, however, was lower than the Php 31.12 trillion recorded in June.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the month-on-month decline partly to fewer working days and weaker economic activity caused by weather-related disruptions.
He said financial market volatility linked to conflicts in the Middle East and the impact of higher non-performing loans may have also contributed to the decline.
Despite these pressures, Ricafort said Philippine banks remain “strong and sound” and continue to support long-term and inclusive economic growth.
Reyes Tacandong & Co. senior adviser Jonathan Ravelas similarly said the banking sector remains well-capitalized and liquid despite external uncertainties and softer global economic conditions.
He said the sector continues to play an important role in supporting domestic economic growth.