The Bangko Sentral ng Pilipinas, or BSP, reported a resilient banking sector in the first half, with higher total assets and lending activities despite higher interest rates.

Banks' assets grew to P23.3 trillion as of end-June, higher by 9.1 percent from 7.8 percent in the first half a year ago, according to BSP data released Monday.

Universal and commercial banks accumulated the largest assets amounting to P21.9 trillion or 93.9 percent of the total.

Thrift banks followed with 4.1 percent, then rural and cooperatives with 1.7 percent and digital banks with 0.3 percent.

More than half of assets, for loans

The bulk or 52.8 percent of bank assets was used for loans which grew by 8.8 percent to P12.7 trillion.

Non-financial firms received the most loans at P6.1 trillion or 47.8 percent of the total loans from universal and commercial banks.

Loans to households rose by 26 percent to P322.7 billion, while agricultural loans amounting to P10.5 billion comprised 7 percent of the total loans from universal and commercial banks.

Lending to micro, small and medium enterprises expanded by 3.1 percent to P461.4 billion.

More than half or 68.4 percent of loans amounting to P8.7 trillion was channeled to households, electricity, gas,                          air-conditioning wholesale and retail, financial and insurance, and real estate sectors. The last sector received the most loans from universal and commercial banks, with 18.3 percent growth to P2.3 trillion.

Net profit of banks jumped by 27.7 percent to P182.8 billion due to increased lending activities in the first half.

Banks' non-performing loans ratio slightly improved to 3.4 percent from 3.6 percent. Coverage for bad loans rose to 101 percent from 97 percent as banks remained prudent amid elevated interest rates.

Investments grew by 9.2 percent to P6.6 trillion, of which 60 percent were debt securities.

Deposits grew by 8 percent to P17.8 trillion, resulting in a total capital growth of 11 percent to P2.9 trillion.

Foreign currency deposit units increased by 6.2 percent to $61.9 billion or P3.4 trillion. Most of them were classified into investments and loans.