THE PHILIPPINE banking system’s total deposits rose by 7% year on year to P20.37 trillion in 2024 from P19.03 trillion in 2023 on the back of increases in total accounts and depositors.
Latest Bangko Sentral ng Pilipinas (BSP) data showed that the number of deposit accounts jumped by 17.9% to 143.35 million as of end-December 2024 from 121.6 million a year prior.
The number of depositors likewise climbed by higher by 14.7% year on year to 128.73 million from 112.27 million.
The Philippine banking system’s deposit liabilities were mostly made up of savings (P8.84 trillion), time (P5.88 trillion) and demand (P5.62 trillion) deposits, the data showed.
Broken down, deposits held by universal and commercial banks went up by 6.8% year on year to P19.1 trillion at end-December from P17.88 trillion.
Big banks had a total of 92.99 million accounts and 86.01 million depositors in the period.
Meanwhile, thrift banks recorded deposits of P826.205 billion as of December, up by 4.7% from P789.31 billion a year prior. The number of deposit accounts at these lenders stood at 7.42 million, with 7.27 million depositors.
Deposits of rural and cooperative banks also climbed by 19.8% to P350.178 billion at end-2024 from P292.24 billion the previous year. These banks had a total of 23.55 million deposit accounts and 23.05 million depositors.
Lastly, digital banks’ total deposits surged by 39.5% to P96.27 billion at end-December from P69 billion a year prior.
The number of deposit accounts at digital banks hit 19.39 million with 12.4 million depositors.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the growth in Philippine banks’ deposits was partly due to faster lending.
Separate BSP data showed that outstanding loans of universal and commercial banks jumped by 12.2% year on year to P13.1 trillion in December. This was the fastest pace of bank lending growth in two years.
“Furthermore, deposits growth also partly sustained by local employment data among the best in nearly 20 years or since revised records started in 2005, thereby also partly supporting consumer spending, which accounts for more than 70% of the economy,” he added.
Increases in overseas Filipino workers’ remittances, business process outsourcing revenues and tourism receipts also supported the continued growth of bank deposits as well as consumer spending, Mr. Ricafort said. — Luisa Maria Jacinta C. Jocson
