PH Banks Assets Up 12% in April
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PH Banks Assets Up 12% in April. The Philippine banking sector has demonstrated significant growth, with total assets rising by 12 percent as of the end of April this year. According to the latest data from the Bangko Sentralng Pilipinas (BSP), the sector’s total assets increased to PHP 25.48 trillion, compared to PHP 22.75 trillion in April of the previous year.
However, this figure was slightly lower than the PHP 25.6 trillion recorded in March of this year.
Year-on-Year Growth Reflects Economic Stability
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort highlighted in a Viber message on Wednesday that the 12-percent year-on-year growth in the banking sector’s total resources is more than twice the growth rate of the country’s gross domestic product (GDP). Ricafort noted that this growth is a positive indicator of the resilience of the banking industry.
He pointed out that loan growth, which is currently near 10 percent, remains a bright spot for the Philippine economy.
Seasonal Factors Influence Monthly Decline
Despite the impressive year-on-year increase, the slight month-on-month decline in assets from March to April can be attributed to seasonal factors. Ricafort explained that the decrease is likely due to tax payments by banks and their clients, as April is typically the tax filing and payment season in the Philippines. This pattern has been observed consistently over many years.
Banking Sector Profitability and Resilience
Ricafort emphasized that the Philippine banking industry continues to be one of the most profitable and resilient sectors in the country, despite facing challenges such as the COVID-19 pandemic.
The industry consistent double-digit growth in net income over the years reflects its robust performance and ability to withstand economic pressures.
Conclusion
The 12 percent increase in the total assets of the Philippine banking sector as of April this year highlights the industry’s strong position and its vital role in the country’s economic landscape. Despite the slight decline in assets from the previous month due to seasonal tax payments, the sector’s year-on-year growth and continued profitability underscore its resilience and importance to the overall economy.
The banking industry’s performance, marked by substantial loan growth and consistent income, continues to be a cornerstone of economic stability in the Philippines.