THE PHILIPPINE banking system’s total deposits grew by 5.9% year on year to P20.671 trillion at end-June from P19.518 trillion, data from the Bangko Sentral ng Pilipinas (BSP) showed.
This came as the number of deposit accounts climbed by 20.8% to 158.494 million from 131.241 million in the comparable year-ago period.
Total depositors also increased by 17.8% to 140.387 million from 119.19 million a year earlier.
BSP data showed that savings deposits accounted for most of the banking sector’s deposit liabilities at P8.965 trillion. Regular savings were at P7.56 trillion, kiddie and teen savings totaled P55.756 billion, and other savings were at P1.317 trillion.
Meanwhile, time certificate of deposits stood at P5.961 trillion, and demand deposits were at P5.737 trillion.
Broken down, universal and commercial banks held the bulk of the Philippine banking system’s total deposits amounting to P19.302 trillion at end-June, up 5.3% from P18.324 trillion the prior year. Their deposit accounts were at 96.42 million, and depositors stood at 87.84 million.
Meanwhile, thrift banks booked P981.542 billion in deposits in the period, rising by 23.1% year on year from P797.059 billion. They had 9.75 million deposit accounts with 9.538 million depositors.
For their part, deposits with rural and cooperative banks declined by 11.7% year on year to P277.199 billion at end-June from P313.805 billion in the same period last year. These lenders had 24.283 million deposit accounts and 24.266 million depositors.
Lastly, digital banks’ deposit liabilities grew by 34% to P110.375 billion as of June from P82.36 billion a year prior. The number of deposit accounts stood at 28.036 million, while depositors totaled 18.739 million.
“Deposit growth in the first half was supported by strong household income flows, steady remittances, and expanding digital banking adoption,” Union Bank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in a Viber message. “Corporates also maintained higher liquidity buffers amid global uncertainty, adding to overall deposit levels.”
He said the banking system’s deposits are expected to continue growing amid the BSP’s easing cycle and seasonal remittance inflows.
“However, growth may moderate as funds shift toward consumption and investments,” Mr. Asuncion added.
Last week, the BSP trimmed its policy by 25 basis points (bps) for a fourth straight meeting to 4.75% in a surprise move to help boost domestic demand.
It has now delivered a total of 175 bps in cuts since it began its easing cycle in August 2024.
BSP Governor Eli M. Remolona, Jr. said another cut is possible at the Monetary Board’s last meeting for this year in December, with more reductions also likely in 2026 amid benign inflation and a weaker growth outlook weighed down by widening corruption concerns.
Meanwhile, the central bank wants online payments to make up 60-70% of the total volume of retail transactions by 2028 in line with the Philippine Development Plan. It expects digital banks to help in transforming the Philippines into a cash-lite economy. — Katherine K. Chan