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Keisha Ta-Asan - The Philippine Star
March 8, 2025 | 12:00am
MANILA, Philippines — The thrift banking industry is poised for continued growth this year, buoyed by sustained lending activity, strong capitalization and regulatory support, according to the Chamber of Thrift Banks.
CTB president and CARD SME Bank vice chairperson Mary Jane Perreras said during the group’s general membership meeting yesterday that she is confident in the thrift banking industry’s ability to sustain its momentum in 2025.
“I am very optimistic. I think this growth will continue this year. We now have a zero-percent reserve requirement, so we expect our loan portfolio to grow. We are all looking at this positively,” she said.
Last month, the Bangko Sentral ng Pilipinas slashed the level of deposits mid-sized or thrift banks are required to keep with the BSP by 100 basis points to zero percent from one percent previously, effective March 28.
Perreras also welcomed the increase in deposit insurance coverage by the Philippine Deposit Insurance Corp. (PDIC) to P1 million from P500,000, saying it would boost depositor confidence and encourage more savings.
“This move reinforces trust in the banking system, especially for senior citizens and retirees who rely on deposit security,” Perreras said, noting that CTB had formally requested this increase from the PDIC in 2023.
The total assets of the thrift banking industry rose by six percent to P1.1 trillion in 2024 from P1.04 trillion in 2024, driven by resource expansion, deposit mobilization and adequate capitalization.
Credit growth also remained robust, with core lending rising by 14.7 percent to P777.28 billion from P667.63 billion, reflecting sustained financing to key market segments.
Non-performing loans were manageable at 6.7 percent, while deposits expanded by 4.7 percent to P826 billion.
Total capital stood at P174 billion, a 10.7-percent increase from the previous year, while the capital adequacy ratio of 17.9 percent of thrift banks remained well above the regulatory minimum of 10 percent.
According to Perreras, the industry’s total asset base is projected to grow around P900 billion this year, with lending expansion expected in small and medium enterprises (SMEs) and young entrepreneurs.
“Thrift banks will continue to support SMEs and startups. We hope to assist small business owners, especially in sectors affected by disasters like agriculture,” she said.
CTB will also focus on risk management and operational resilience through training programs, aligning with BSP’s emphasis on sustainability, digitalization and cybersecurity.
