In a recent report from the Bangko Sentral ng Pilipinas (BSP), Philippine Banks have demonstrated a remarkable 9.84% year-on-year surge in trust Assets. This collective effort amounted to an impressive ₱4.063 trillion by the close of June 2023. Driven primarily by major financial institutions, this growth trend reflects the dynamic nature of trust assets within the country’s banking sector.

Big banks at the helm

The lion’s share of this substantial increase can be attributed to the 45 big banks in the Philippines. They are ultimately responsible for nearly 60% of gross loans and approximately 25% of the sector’s total financial assets.

A diverse trust asset mix

Trust assets encompass a diversified portfolio, featuring highly liquid assets such as securities and bank deposits. Notably, trust entities held ₱469 billion in cash and due payments from banks by the end of June.

This marks a significant 38.76% upswing from the previous year. Concurrently, bank deposits reached a considerable ₱1.070 trillion during the same period.

The dynamic trust landscape

More than regulatory adjustments, the shifting investor preferences have influenced this transformation.

The distinctive roles played by both universal and commercial banks in attending to this pivot definitely did not fall short.

Looking ahead

The noteworthy increase in trust assets highlights the resilience and adaptability of Philippine banks in tackling wide scale financial adversity. As these institutions continue to evolve and diversify their trust portfolios, they remain key players in shaping the country’s economic future.

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