The total assets of the Philippine banking sector went up by 12.4 percent to P25.62 trillion as of end-May 2024 from P22.78 trillion a year ago, data from the Bangko Sentral ng Pilipinas show.
The figure also increased from P25.48 trillion recorded as of end-April.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the growth of the banking sector was twice faster than the gross domestic product expansion. “This is again more than twice faster than GDP growth, largely attributed to the sustained double-digit growth in the net income of banks, considered among the most profitable industries in the country,” Ricafort said.
“This is also similar, but faster than loans growth at nearly +10% year-on-year in recent months as well as the continued growth in bank deposits that help the booking of more loans as the economy recovers further with no more COVID-related restrictions since the Covid state of public health emergency was finally lifted since July 22, 2023,” he said.
Ricafort said this robust growth would support some businesses affected by the pandemic such as tourism and other related industries.
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