Philippines bank assets hit P29.83 trillion in 2025

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February 27, 2026 | 12:00am

MANILA, Philippines —  Total assets of the Philippine banking system climbed to P29.83 trillion as of end-2025, reflecting sustained expansion in lending activity and financial investments despite a still-evolving interest rate environment.

Banks booked an aggregate 8.8 percent growth in assets from P27.43 trillion in the same period in 2024, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP).

SM Investment Corp. group economist Robert Dan Roces said the banking sector’s balance sheet expansion reflected improving macroeconomic conditions and steady liquidity flows.

“The growth in assets was supported by steady domestic demand, easing inflation and stable funding conditions,” Roces said.

“Loan demand improved as borrowing costs stabilized, while banks also increased investments in higher-yielding securities. Strong deposits, remittances and sound capital buffers gave banks room to expand their balance sheets without taking on excessive risk,” he said.

Based on BSP data, the increase in assets was driven largely by gains in loan portfolios and investment holdings, underscoring the banking sector’s continued role in supporting credit demand from businesses and households.

Banks’ total loan portfolio, net of allowances for credit losses, reached P16.59 trillion at the end of 2025, 11.8 percent higher than the P14.84 trillion recorded a year ago.

Loans and receivables remained the largest component of bank assets, reflecting sustained credit demand amid easing monetary conditions and improving domestic consumption.

Financial investments also contributed to asset growth, with banks increasing holdings in securities and other investment instruments during the period.

Total investments, including portfolio investments, stood at about P8.58 trillion in December, 10.4 percent higher than the P7.77 trillion last year. These holdings included financial assets measured at fair value and debt securities, which helped banks manage liquidity and diversify income sources.

Cash and due from banks remained sizable at around P2.21 trillion by year-end, signaling that banks maintained ample liquidity buffers despite stronger loan expansion.

On the liabilities side, deposit liabilities continued to underpin funding growth, rising by 7.3 percent to about P21.86 trillion in December from P20.37 trillion in the same period in 2024.