Thrift banks across the nation experienced substantial growth last year, significantly increasing their financial support to the backbone of the Philippine economy.
Lending soared by 26%, reaching P977.32 billion, a clear indication of continued investment in micro, small, and medium enterprises (MSMEs) and individual households nationwide.
Despite this impressive expansion, the sector maintained a remarkably stable financial position, with nonperforming loans remaining at a manageable 6%. This demonstrates a commitment to careful and disciplined risk assessment.
Fueling this growth was a substantial increase in deposits, rising by 26% to reach P1.03 trillion, and a corresponding 25% expansion in total assets, culminating in P1.38 trillion by the year’s end.
Industry leaders emphasized these figures aren’t simply marginal improvements, but rather fundamental indicators of enduring strength and responsible expansion within the thrift banking sector.
Capitalization also saw a healthy increase, growing by 21% to P209.63 billion, further solidifying the sector’s financial foundation.
Beyond traditional lending, thrift banks are playing an increasingly vital role in the country’s rapidly evolving digital payments landscape.
InstaPay transactions facilitated by these banks skyrocketed from 10 million in January to nearly 70 million by December, showcasing a dramatic adoption of digital financial tools.
At its peak in September, thrift banks processed a remarkable 31% of the total InstaPay value across the entire Philippine financial system.
However, participation in QR Ph virtual payments, a crucial channel for MSMEs, remains lower, accounting for only 13% of total transactions.
Officials are now encouraging thrift banks to actively promote QR Ph adoption among their MSME clients, particularly focusing on enabling businesses to *accept* digital payments, unlocking further growth opportunities for both banks and their customers.
This push aims to bridge the gap and ensure small businesses fully benefit from the convenience and efficiency of digital financial solutions.
