Bank deposits hit P22 trillion

MANILA, Philippines — Bank deposits grew at a faster pace of 9.8 percent to P22.04 trillion as of end-March, driven largely by higher placements from individuals and private companies.

Data from the Philippine Deposit Insurance Corp. (PDIC) showed that total deposits increased by P1.97 trillion from P20.1 trillion at the end of March 2025.

The expansion was significantly faster than the 5.3-percent growth recorded a year earlier, when deposits rose by P1 trillion from their end-March 2024 level.

Individual depositors and private corporations accounted for more than three-fourths of the overall increase, pointing to stronger cash holdings among households and businesses.

Deposits from individuals climbed by P913.9 billion and accounted for 46.4 percent of the total increase. Private corporations contributed another P606.6 billion or 30.8 percent.

The remaining 22.8 percent came from other institutional depositors, including government entities, banks and trust departments.

PDIC said the growth reflects higher household and business income supported by employment, remittances and economic activity. Individuals and companies may have also opted to keep a larger portion of their funds in banks for security and easier access.

“The continued rise in deposit liabilities reflects the public’s sustained confidence in the banking system. Higher household and business deposits suggest that individuals and companies continue to view banks as safe, accessible and reliable institutions for managing their funds,” PDIC president and CEO Roberto Tan said.

By deposit type, time deposits recorded the biggest increase at P896.1 billion, accounting for 45.5 percent of the year-on-year growth.

PDIC said the increase suggested that depositors were seeking better returns and may have locked in prevailing interest rates ahead of anticipated rate reductions.

Competitive rates and incentives offered by banks may have also encouraged the shift toward term deposits, which provide lenders with a more stable funding base.

The number of accounts also increased by 18 percent to 178.6 million as of end-March. Savings accounts accounted for nearly all of the increase, rising by 26.9 million and representing 99 percent of the additional accounts recorded during the one-year period.

The number of fully insured accounts likewise grew by 18.2 percent to 176.5 million. This meant 98.8 percent of domestic deposit accounts were fully covered by the PDIC.