Financial system resources hit record P37.3 trillion in April

MANILA, Philippines — Total resources of the Philippine financial system climbed to a record P37.31 trillion as of end-April, driven by sustained growth in bank assets and the continued expansion of digital lenders.

Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that total resources rose by 10.6 percent from P33.74 trillion in April 2025.

Banks remained the main engine of growth, with total resources increasing by 11.6 percent to P30.96 trillion from P27.75 trillion a year ago. The banking sector accounted for nearly 83 percent of the financial system’s total resources.

Universal and commercial banks, which comprise the country’s largest lenders, continued to hold the biggest share of banking assets. Their resources expanded by 10.9 percent to P28.71 trillion from P25.88 trillion in April last year.

Meanwhile, thrift banks posted stronger growth, with resources jumping by 23.5 percent to P1.47 trillion from P1.19 trillion.

Digital banks remained the fastest-growing segment in percentage terms, as total resources surged by 48.2 percent to P195 billion from P131.6 billion a year earlier.

Rural and cooperative banks also registered gains, with resources rising by 8.1 percent to P587 billion from P543.2 billion.

Outside the banking system, non-bank financial institutions recorded total resources of P6.35 trillion, up by 5.8 percent from P6 trillion in April 2025.

Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the latest figures point to a financial system that remains fundamentally healthy despite heightened global uncertainty and market volatility earlier this year.

“Overall, the 11 percent year-on-year expansion in the Philippine financial system reflects healthy liquidity growth, sustained bank lending and deeper financial market participation,” Ravelas said.

Latest BSP data showed outstanding loans of universal and commercial banks rose by 11.4 percent year-on-year in April, the fastest pace in nine months, as credit demand from businesses and consumers remained firm.

The banking system has likewise maintained ample liquidity and healthy asset quality, allowing lenders to continue expanding their balance sheets even as the BSP resumed monetary tightening in April and June to rein in inflation pressures.

Ravelas said growth is likely to continue, although at a more tempered pace, with the trajectory of interest rates, credit demand and capital market activity serving as key determinants.

“From here, I expect steady but more calibrated growth. The key drivers will be the interest rate path, strength of credit demand and capital market activity. If rates start to ease, that could re-energize expansion,” he said.