Daily TribunePhilippine banking sector gains in the first half of 2025 were attributed to ‘prudent risk management and sound credit governance.’ The BSP’s first semester of the year report likewise cited strong growth in trust operations and foreign currency deposit units as additional contributors to the sector’s solid performance.
Strong fundamentals and continued growth momentum highlighted Philippine banking sector performance during the first half of 2025, according to the Bangko Sentral ng Pilipinas (BSP).
In its “Report on the Philippine Financial System for the First Semester of 2025,” the BSP said bank assets — driven mainly by loans and investments — rose 7.7 percent year-on-year to P28.2 trillion as of June, supported by stable domestic deposits and reinforced by healthy liquidity and capital buffers.
Deposits increased by 5.9 percent year-on-year to P20.7 trillion, while the sector’s capital base expanded by 10.6 percent to P3.5 trillion. Profits also grew, reaching P198.1 billion, up 4.1 percent from the same period last year.
Prudent risk management
The BSP attributed the gains to “prudent risk management and sound credit governance.” The report likewise cited strong growth in trust operations and foreign currency deposit units (FCDU) as additional contributors to the sector’s solid performance.
“The banking system’s solid performance underscores its strength in seizing opportunities, navigating emerging risks, driving innovation and championing inclusive and sustainable growth,” said BSP Governor Eli M. Remolona Jr.
“In line with this, the BSP will continue pursuing policies that further strengthen the banking system. This supports an environment that helps banks to continue growing, supporting economic activity, and responding to the evolving needs of Filipinos,” he added.
