Philippine banks are becoming bigger, fueled by higher demand for loans and deposits, as the economy sustains its growth towards upper-middle-income-country (UMIC) status.
Data from the Bangko Sentral ng Pilipinas (BSP) show that the total resources of the country’s financial system hit P32.3 trillion as of end-June 2024, up by 10.5 percent from P29.25 trillion a year ago.
Bank resources grew 12.3 percent to P27.01 trillion from P24.05 trillion a year earlier, with universal and commercial banks accounting for P25.32 trillion of the total.
Despite the elevated interest rates, outstanding loans of universal and commercial banks increased 10.1 percent year-on-year in June 2024.
Money supply or domestic liquidity (M3) also expanded 6.6 percent year-on-year to about P17.5 trillion as of end-June 2024.
Three of the biggest universal banks now have at least P3 trillion in assets each. BDO Unibank Inc. (BDO) saw its net income climb 12 percent in the first half of 2024 to P39.4 billion, as its total resources grew by 13 percent to P4.7 trillion.
Metropolitan Bank & Trust Co.’s (Metrobank) profit reached a record P23.6 billion in the first semester of 2024, on the back of strong loan growth and stable margins. Its consolidated assets expanded by 14.5 percent year-on-year to P3.3 trillion, maintaining its status as the country’s second largest private universal bank.
Bank of the Philippine Islands (BPI) posted a record net income of P30.6 billion in the first half of 2024, up by 21.5 percent from a year ago as its revenues grew 23.8 percent year-on-year to P81.2 billion.
BPI’s total assets grew 15.8 percent to P3.1 trillion as of end-June 2024.
