Growth in big banks' assets, loans slowed sharply in Q3

THE PHILIPPINES' largest banks saw the weakest asset growth in over three years in the third quarter as the flood control mess weighed on economic activity.

- By Matthew Miguel L. Castillo Researcher

At the same time, loan growth also logged its slowest expansion in over a year.

According to the latest release of BusinessWorld's quarterly banking report, the aggregate assets of 44 universal and commercial banks grew annually by 7.42% in the third quarter to P27.91 trillion from P25.98 trillion in the same period a year earlier.

Asset growth slowed from the 9.05% seen in the previous quarter and the 11.17% in the same period last year.

This was the weakest growth in assets in 14 quarters or since the 7.37% expansion in the first quarter of 2022.

Total loans grew by 10.91% to P14.6 trillion at end-September, slowing from the 12.38% in the second quarter and from 15.07% a year ago.

This was the weakest loan expansion in seven quarters or since the 10.22% growth logged in the last three months of 2023.

The third-quarter slowdown in asset and loan growth came amid the investigation into anomalous flood control projects, which has dampened consumer and investor confidence.

Some government officials, lawmakers and contractors were accused of getting kickbacks from substandard or nonexistent infrastructure projects.

The economy grew by 4.5% in the third quarter - the slowest in four years, mainly due to sluggish government spending and household expenditure.