By Luisa Maria Jacinta C. Jocson, Senior Reporter

THE Philippine banking system’s total deposits rose by 5.4% year on year to over P20 trillion as of the first quarter, the latest data from the Bangko Sentral ng Pilipinas (BSP) showed, as digital bank deposits surpassed the P100-billion mark for the first time.

BSP data showed the banking industry’s deposits increased to P20.2 trillion as of end March from P19.1 trillion in the same period in 2024.

The number of deposit accounts climbed by 19.1% to 150.8 million from 126.6 million year on year. The number of depositors likewise jumped by 16.7% to 134.5 million from 115.3 million.

Savings deposit accounts reached P8.82 trillion, while regular savings hit P7.47 trillion. Time deposits stood at P5.78 trillion, while demand deposits reached P5.54 trillion.

Broken down, universal and commercial banks held deposits worth P18.86 trillion at end-March, up by 5.1% from P17.95 trillion a year ago.

Big banks had a total of 94.2 million accounts and 86.7 million depositors in the first three months of the year.

Deposits held by thrift banks edged higher by 5% to P839.68 billion in the first three months from P799.34 billion a year ago.

Thrift banks had 7.65 million deposit accounts and 7.49 million depositors.

Rural and cooperative banks’ deposits climbed by 18.7% to P358 billion during the period from P301.72 billion a year ago. These banks had a total of 25.1 million deposit accounts and 24.9 million depositors.

Total deposits of digital banks jumped by 33.3% to P102.3 billion at end-March from P76.8 billion. This was the first time deposits from digital banks breached the P100-billion level.

The number of deposit accounts at digital banks hit 23.85 million with 15.5 million depositors.

“Continued growth in deposits is also a function of continued growth in sales and net income of businesses and also a function of the local employment data, still among the best in about 20 years or since revised records started in 2005,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

There were 52.32 million Filipinos that were part of the labor force in May, the highest recorded number since April 2005.

The country’s unemployment rate went down to 3.9% in May from 4.1% in April. This translated to 2.03 million jobless Filipinos in May from 2.06 million a month prior.

“The growth in deposits may have helped the continued and faster growth in bank loans that grew by more than twice versus deposits, reflecting improved demographics of the country that led to a much faster growth in consumer loans,” Mr. Ricafort said.

Bank lending jumped by 11.3% year on year to P13.37 trillion as of May, the latest data from the BSP showed. Consumer loans to residents grew 23.7% to P1.699 trillion during the month. 

“Continued growth in deposits is crucial for banks’ financial intermediation business that supports growth in both loans and investments that add to earnings of banks,” he added.

The latest central bank data showed the share of Filipinos with bank accounts reached 65% of the adult population in 2022.