TOTAL assets of the Philippine banking sector rose to P25.99 trillion as of end-August, data from the Bangko Sentral ng Pilipinas showed, 10.8 percent higher than the year-earlier P23.46 trillion.

Bank assets primarily consist of deposits, loans and investments, including cash, amounts due from other banks, interbank loans receivable (IBL) and reverse repurchase (RRP) arrangements, adjusted for allowances for credit losses.

The aggregate loan portfolio, inclusive of IBL and RRP, was P13.82 trillion, 10.5 percent higher than the P12.51 trillion recorded in the same period last year.

Net investments, including financial assets and equity investments in subsidiaries, rose 6.6 percent to P7.41 trillion from P6.95 trillion.

Cash and amounts due from banks, meanwhile, ticked up by 3.9 percent to P2.65 trillion from P2.55 trillion.

The value of net real and other properties acquired rose 3.91 percent to P111.03 billion from P106.85 billion, while other assets totaled P2.01 trillion for the period, 48.4 percent more from P1.35 trillion a year earlier.

The banking system's total liabilities rose by 10.8 percent to P22.73 trillion from P20.52 trillion in the previous year.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase was primarily due to sustained double-digit net income growth by banks, which are among the most profitable businesses in the country.

He added that "continued growth in bank deposits helped the booking of more loans as the economy recovers further."