The domestic banking sector offers a bright spot for the Philippine economy, with total assets expanding 12% as of the end of April this year to P25.48 trillion from P22.75 trillion in April 2023.
However, Bangko Sentral ng Pilipinas (BSP) data showed that total assets last month were lower than the P25.6 trillion recorded in March this year.
Rizal Commercial Banking Corporation chief economist Michael Ricafort described the 12% year-on-year growth as double the country's gross domestic product (GDP) growth.
Ricafort said this is "a good signal on the banking industry's resilience, as this also reflects loan growth near 10 percent recently that would still be a bright spot for the Philippine economy."
"The month-on-month decline in assets could be attributed to tax payments by banks and some of their clients since April is the tax filing and payment season in a typical year, based on consistent patterns seen for many years," he said.
Ricafort said the banking industry continues to be one of the country's most profitable and resilient industries despite challenges such as the coronavirus disease 2019 pandemic.
Reaffirming the industry's stability, Ricafort points out, "This is also a testament to the sustained double-digit growth in banks' net income over the years."
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