Financial system resources hit P36.9T in 2025

By Katherine K. Chan, Reporter 

THE TOTAL RESOURCES of the Philippine financial system climbed by 8.08% year on year to nearly P37 trillion at the end of 2025, preliminary central bank data showed.   

Resources held by banks and nonbank financial institutions (NBFIs) rose to P36.932 trillion last year from P34.172 trillion in 2024, according to data released by the Bangko Sentral ng Pilipinas (BSP).

These resources include funds and assets such as deposits, capital, and bonds or debt securities.

Banks’ resources topped P30 trillion in 2025, as it jumped by 8.67% to P30.706 trillion from P28.256 trillion in 2024.

Of the total, universal and commercial banks had the bulk of the sector’s resources at P28.572 trillion, up 8.07% from P26.438 trillion in the previous year.

Thrift banks’ resources increased by 24.43% to P1.456 trillion at end-2025 from P1.17 trillion at end-2024.

Digital banks’ resources also surged by an annual 41.98% to P172.5 billion at end-2025 from P121.5 billion previously.

Latest available data also showed that resources of rural and cooperative banks stood at P505.9 billion as of end-September 2025. This was 4.02% lower than the P527.1 billion seen for the entire 2024.

On the other hand, nonbanks had P6.226 trillion worth of resources in the first nine months of 2025, exceeding 2024’s total of P5.916 trillion by 5.25%.

There was no available end-2025 data for rural banks and nonbanks.

Nonbanks include investment houses, finance companies, security dealers, pawnshops, and lending companies.

Institutions such as nonstock savings and loan associations, credit card companies, private insurance firms, the Social Security System, and the Government Service Insurance System are also considered NBFIs.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said the sustained growth in bank lending and deposits as well as the industry’s continued profitability boosted the full-year financial resources.

“This is nearly twice the economic growth of 4.4% in 2025 (and was) again largely due to the continued double-digit growth in bank loans, sustained growth in bank deposits, continued net income growth of banks, which are among the most profitable industries in the country consistently for many years,” he said in a Viber message.

Since May 2024, bank lending has grown at a double-digit pace monthly. The streak was only broken in December last year, when banks’ loan growth eased to a 22-month low of 9.2%.

Meanwhile, the latest available BSP data showed that bank deposits rose by 7.58% year on year to P21.066 trillion as of September from P19.581 trillion previously.

Recent policy easing also allowed banks to benefit from higher trading gains and investment earnings, Mr. Ricafort noted.

Since August 2024, the central bank has so far reduced key borrowing costs by a total of 200 basis points (bps) to its lowest in over three years at 4.5%.

On the other hand, the US Federal Reserve’s benchmark rate currently stands at 3.5%-3.75% range following a cumulative 175 bps in cuts since September 2024.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., also noted that the rise of banks and nonbanks’ financial resources last year “reflected resilience and confidence in the system.”

Mr. Ravelas said resources’ growth this year will be driven by banks’ lending to priority sectors such as infrastructure and consumption as well as the impact of capital market activity, trust funds and insurance on NBFIs.

“In 2026, growth will likely be more measured but still solid, with banks focusing on targeted lending to priority sectors like infrastructure and consumption, while nonbanks benefit from capital market activity, trust funds, and insurance,” he said via Viber. “The story this year shifts from rapid accumulation to disciplined, higher‑quality growth.”

Meanwhile, Mr. Ricafort said further monetary policy easing would “lead to higher trading gains and other investment gains, as well as greater demand for loans, that would again be the major growth drivers for total assets and resources of the banking system and the overall financial system.”

The Monetary Board is widely expected to trim the key policy rate by another 25 bps at its meeting on Thursday to bring it to 4.25%, based on a BusinessWorld poll of 16 analysts.