MANILA — The Bangko Sentral ng Pilipinas (BSP) highlighted the sustained growth and soundness of the Philippine banking sector in the first half of 2025, citing broad-based asset growth and solid profitability.

Assets of Philippine banks rose 7.7 percent year-on-year (y-o-y) to ₱28.2 trillion in June, driven by stable domestic deposits and supported by strong liquidity and capital buffers, according to the BSP’s “Report on the Philippine Financial System for the First Semester of 2025.” Asset quality remained satisfactory, with loans and investments comprising the bulk of total assets.

Profitability also improved, with net income increasing 4.1 percent y-o-y to ₱198.1 billion for the period ending in June, reflecting prudent risk management and sound credit governance.

“The banking system’s solid performance underscores its strength in seizing opportunities, navigating emerging risks, driving innovation, and championing inclusive and sustainable growth,” BSP Governor Eli M. Remolona, Jr. said.

“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.

The report also highlighted the satisfactory performance and robust growth of foreign currency deposit units and trust entities.

It featured strategic initiatives including improvements in the credit information system, enhancements to the anti-money laundering and counterterrorism financing regime, a more inclusive and digitalized retirement savings account, and the establishment of a Financial Cyber Resilience Governing Council.

These measures reflect the BSP’s collaboration with supervised entities, other financial regulators, and industry associations to further strengthen the resilience of the Philippine banking system.