PH Financial Sector Grows to P32.3T, Up 10.5% in June

As of June, the Philippines' financial sector has reached a significant milestone, with total resources growing by 10.5% to PHP 32.33 trillion from PHP 29.25 trillion the previous year. This impressive growth is reported by the Bangko Sentral ng Pilipinas (BSP), highlighting the sector's robust performance.

Total financial resources encompass various types of banks and non-bank financial intermediaries, reflecting their assets before accounting for anticipated losses, bond discounts, or market fluctuations. This broad category includes universal, commercial, thrift, rural, cooperative banks, and non-bank financial institutions.

On a month-to-month basis, the financial sector also showed progress, rising from PHP 31.79 trillion in May. Banks, which form the core of the financial resources, experienced a notable increase of 12.3% in June, reaching PHP 27.01 trillion compared to PHP 24.05 trillion a year earlier. This figure also represents an improvement over May's PHP 26.46 trillion.

Within the banking sector, universal and commercial banks saw a 12.3% increase in their resources, amounting to PHP 25.32 trillion from PHP 22.55 trillion the previous year. This is up from PHP 24.80 trillion reported in May. Thrift and rural and cooperative banks also contributed to the sector's growth, with thrift banks increasing their resources by 11.17% to PHP 1.13 trillion, up from PHP 1.01 trillion a year ago. Rural and cooperative banks saw a 10.4% rise, reaching PHP 458 billion compared to PHP 415 billion last year.

Digital banking has also grown significantly, with resources soaring to PHP 111 million in June, marking a 40.5% increase from PHP 79 million the previous year.

Non-bank financial institutions also showed a steady growth of 2.4%, rising to PHP 5.32 trillion from PHP 5.20 trillion a year earlier. This category includes various entities such as investment houses, financing companies, securities dealers, pawnshops, lending investors, credit card companies, and government non-bank financial institutions. It also encompasses the Social Security System, Government Service Insurance System, and private insurance companies.

PH Local Market Rises Despite Mixed Signals

The local stock market has been buoyant, reflecting investor confidence as they review recent corporate earnings reports. The Philippine Stock Exchange Index (PSEi) rose by 54.52 points, or 0.82%, to close at 6,704.96. The property sector led this upward movement, with trading volume increasing to 670 million shares worth PHP 6.96 billion. Despite this, market breadth showed more decliners than advancers, with 105 stocks falling, 98 rising, and 54 remaining unchanged.

Luis Limlingan, Managing Director at Regina Capital Development Corporation, noted that investors actively engage in bargain hunting in anticipation of the BSP's policy meeting. He attributed the positive sentiment to recent U.S. equities performance, which saw gains following a cooler-than-expected Producer Price Index (PPI) report and the local currencys strength against the U.S. dollar.

Japhet Tantiangco, Research Manager at Philstocks Financial, echoed these sentiments, highlighting that the local market‘s positive momentum is partly due to favorable spillovers from Wall Street’s rally. The strengthening of the Philippine peso against the U.S. dollar also contributed to sustaining the market's upward trend.

In summary, the Philippine financial sector demonstrated substantial growth in June, with a notable increase in bank resources and digital banking. Concurrently, the stock market has benefited from positive corporate earnings and favorable economic indicators, contributing to overall investor optimism.

FAQs

1. What is the current growth rate of the Philippine financial sector？
• As of June, the Philippine financial sector grew by 10.5%, with total resources reaching PHP 32.33 trillion, up from PHP 29.25 trillion the previous year, according to the Bangko Sentral ng Pilipinas (BSP).
2. Which sectors contributed to the growth of the Philippine banking industry？
• Universal and commercial banks saw a 12.3% increase in resources, while thrift banks grew by 11.17%, and rural and cooperative banks by 10.4%. Digital banking also surged with a 40.5% increase in resources.
3. What factors contributed to the positive momentum in the Philippine stock market？
• Positive corporate earnings, favorable economic indicators, and a stronger Philippine peso against the U.S. dollar helped boost investor confidence. The market also benefitted from gains in U.S. equities and bargain hunting ahead of the BSP's policy meeting.

Stay informed on the latest developments in the Philippine financial sector, including impressive growth in banking and digital finance, and how market trends are shaping investor confidence. Visit the WikiFX news page for more detailed insights.