Bank deposits hit P22 trillion as of March

By Katherine K. Chan, Reporter

DEPOSITS held by Philippine banks grew by 10.2% in the first quarter of the year, driven by a higher number of depositors and accounts, the latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

Banks recorded a total of P22.218 trillion in deposits at end-March, jumping from the P20.162 trillion logged a year earlier.

This came as the number of depositors nearly doubled, rising by 84.66% year on year to 248.412 million from 134.526 million in the previous year.

Meanwhile, the number of deposit accounts climbed by 18.39% to 178.565 million from 150.825 million.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the Philippine Deposit Insurance Corp.’s (PDIC) move to double the maximum deposit insurance coverage to P1 million last year could have encouraged people to put their cash in banks.

“The double-digit year-on-year growth in deposits could reflect increased confidence in the local banking system, especially since the increase in the PDIC deposit insurance to P1 million per depositor per bank,” he said in a Viber message.

The continued growth in bank lending and account holders opting to secure their liquidity amid tightening economic conditions due to the Middle East war-driven crisis may have also supported the increase in deposits during the first quarter, Mr. Ricafort added.

Loan growth hit its fastest pace in seven months in March at 10.7% to P14.603 trillion from P13.192 trillion in the same month last year.

Based on central bank data, most of the industry’s deposit liabilities were in savings deposits, which climbed by 5.58% year on year to P9.315 trillion from P8.823 trillion.

Of the total deposits in savings accounts, P7.79 trillion were regular savings, P56.647 billion were kiddie and teen savings, while P1.436 trillion were other savings.

On the other hand, basic deposits increased by 11.46% to P32.534 billion as of end-March from P29.188 billion a year ago.

Demand deposits also went up by 10.67% year on year to P6.131 trillion, while time certificate of deposits rose by 17.1% to P6.771 trillion.

BSP data also showed that deposits in universal and commercial banks reached P20.686 trillion as of March, up 9.67% from P18.862 trillion in the prior year. This accounted for the bulk of the banking system’s deposit liabilities.

Large banks had 93.667 million depositors spread across 101.609 million accounts in the period.

Meanwhile, deposits held by thrift banks topped P1 trillion during the period, jumping by an annual 24.94% to P1.049 trillion from P839.682 billion previously. They had 10.291 million depositors and 10.661 million deposit accounts.

Rural and cooperative banks booked P330.165 billion in deposits, 7.77% lower than the P357.998 billion logged at end-March 2025. They had 119.39 million depositors and 28.324 million deposit accounts.

Lastly, deposits held by digital banks surged by 49.51% to P152.967 billion as of March from P102.31 billion last year. They recorded 25.063 million depositors and 37.971 million accounts.