Thrift banks’ loans grow 26%

THE THRIFT banking industry’s loans grew last year as they continue to extend financing to their core markets.

“Core lending expanded by 26%, reaching P977.32 billion, reflecting sustained credit support to micro, small, and medium enterprises (MSMEs) and households across the country,” Chamber of Thrift Banks (CTB) President and Citystate Savings Bank, Inc. President Jaime Valentin L. Araneta said in a speech on Monday.

Meanwhile, the sector’s nonperforming loan ratio remained manageable at 6%, which he said reflects “disciplined” risk management despite strong loan growth.

On the funding side, total deposits rose by 26% to P1.03 trillion.

The industry’s total assets also expanded by 25% to P1.38 trillion at end-2025.

“These are not incremental gains. They are structural signals of strength. They show that first banks are not only stable; we are expanding responsibly and competitively,” Mr. Araneta said.

Meanwhile, total capital increased by 21% to P209.63 billion.

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Mamerto E. Tangonan said thrift banks played a significant role in the country’s digital payments ecosystem last year.

The sector facilitated nearly 70 million in InstaPay transactions as of December 2025, increasing from just 10 million in January 2025, he said in a speech at the same event.

“At the peak in September, thrift banks accounted for 31% of total InstaPay value across the entire system. But participation is uneven.”

He said thrift banks accounted for just 13% of QR Ph virtual payments last year, which is the channel most directly relevant to MSMEs.

“Given that thrift banks are among the primary financiers and deposit takers of small businesses in this country, we bank on your support to help close that gap and invite more MSME clients to enjoy the benefits of digital payments. If not on the issuing side, definitely on the accepting side. I would even say mostly on the accepting side because that’s where you get the sales transactions of the bank,” Mr. Tangonan added. — A.M.C. Sy