THE total resources of the country's financial system increased by 8.7 percent to P30.79 trillion as of end-January 2024 from P28.30 trillion a year earlier, Bangko Sentral ng Pilipinas (BSP) data showed.

Total financial resources are classified according to types of banks, namely, universal/commercial, thrift banks, rural banks, and nonbank financial intermediaries.

This includes the total assets of banks and nonbanks before provisions for anticipated losses, bond discounts or premiums, and market gains or losses.

Banks' resources expanded by 10.09 percent to P25.59 trillion in January of this year from P23.25 trillion recorded in the same period a year ago.

Universal and commercial banks — which accounted for the bulk of total banking resources — grew theirs by 10 percent to P24 trillion from January 2023's P21.82 trillion.

Likewise, thrift banks and rural and cooperative banks posted gains of 5.48 percent and 2.98 percent, respectively. They recorded P1.08 trillion and P415 billion in January from last year's P1.02 trillion and P403 billion.

Digital banks registered P43 million in January from zero last year.

The central bank also saw an uptick in nonbanks' financial resources by 2.77 percent to P5.20 trillion from P5.06 trillion in January 2023.

Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the growth in Philippine banks' total assets largely reflected double-digit growth in net income and was better than gross domestic product (GDP) growth.

"This may also reflect the sustained growth in credit growth at high single-digit growth levels in recent months and the continued growth in deposits," he added.

"The growth in banks' resources could also be attributed to the continued growth in capital amid increased net income and also some new equity investments in recent years."

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