Bank resources hit record P15.5 trillion, up 13%

MANILA, Philippines — The Philippine banking industry recorded another banner year in 2017 as total assets booked a double-digit growth last year amid external challenges arising from the normalization of interest rates in the US and rising geopolitical tensions.

Data released by the Bangko Sentral ng Pilipinas showed total resources of Philippine banks jumped 13 percent to a record P15.5 trillion last year from P13.91 trillion in 2016.

The total resources of big banks or universal and commercial banks rose 11.7 percent to P14.03 trillion from P12.56 billion, while that of mid-sized banks or thrift banks went up 7.8 percent to P1.21 trillion from P1.12 trillion.

The BSP said the Philippine banking system remains resilient as it continued to support long-term economic growth.

The continued rise in resources, including deposits, profits, and retained earnings indicate that banks have the ability to service funding needs of corporate and household clients.

At the same time, this shows banks have enough to act as a buffer against any external shocks.

In a speech during the BSP’s Annual Reception for the Banking Community last month, BSP Governor Nestor Espenilla Jr. said the Philippine banking system is safe and sound, with robust expansion in credit and demonstrating capital adequacy, asset quality, liquidity and profitability. 

“A sound and liquid financial system also provided support to Philippine economic activity in 2017. Banks’ balance sheets expanded with a double-digit growth in assets and deposits,” he said.

The BSP chief added credit continued to flow steadily to productive sectors and sustained efforts by the central bank and the financial sector to enhance liquidity and risk management practices kept threats to financial stability at bay.