(File photo)
MANILA – The total assets of the Philippine banking sector went up by 12.4 percent as of end-May this year, data from the Bangko Sentral ng Pilipinas (BSP) showed.
Data released by the BSP on Thursday showed that the total assets of the country's banking sector amounted to PHP25.62 trillion, up from last year's PHP22.78 trillion.
It was also higher than the PHP25.48 trillion total assets recorded in April this year.
"This is again more than twice faster than GDP (gross domestic product) growth, largely attributed to the sustained double-digit growth in the net income of banks, considered among the most profitable industries in the country," Rizal Commercial Banking Corporation chief economist Michael Ricafort said.
"This is also similar, but faster than loans growth at nearly +10% year-on-year in recent months as well as the continued growth in bank deposits that help the booking of more loans as the economy recovers further with no more Covid-related restrictions since the Covid state of public health emergency was finally lifted since July 22, 2023," he added.
Ricafort said this will support the recovery of some businesses hit hard by the pandemic such as tourism and other related-allied industries.
"Possible cut in Fed rates and local policy rates for the coming months and years would further boost trading gains and other investment income of banks," he said. (PNA)
