Philtrust Bank's century of stability: A lesson in banking longevity

Harking back to 1916, when disruptors meant war and depression rather than apps and algorithms, Philtrust Bank (Philippine Trust Co.) stands as a study in financial defiance, proving that in an era saturated with fintech noise, mega-mergers, and venture capital haste, stability is the ultimate disruption.

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As the bank marks its 109th anniversary, Philtrust Bank's continued existence is less a story of radical reinvention and more a testament to a foundational principle: calculated, almost austere conservatism in managing other people's money.

Jaime "Jimmy" Laya, Philtrust Bank co-vice chairman and president, and a figure whose professional history mirrors pivotal junctures in Philippine finance-having served as the first Secretary of the Department of Budget and Management and the 5th Governor of the Central Bank of the Philippines articulates the bank's philosophy with a directness that bypasses contemporary business jargon.

"Philtrust Bank began life in 1916 as Philippine Trust Company, entrusted with pensions and benefits due veterans and the widows and children of American participants in the Filipino-American War," Laya noted in an interview. "It was a heavy responsibility requiring utmost care in the management of trust funds. The same care is embedded in all aspects of Philtrust Bank operations that considers of utmost importance the security of depositor funds." This founding mandate-themeticulous safeguarding of what were, essentially, life-sustaining benefits for a vulnerable population-is the core principle that Laya contends has secured the bank's passage through more than a century of economic tumult.

The resilience calculus The Philippine financial landscape has, since 1916, been subjected to external shocks ranging from global depressions to geopolitical conflict, and internal crises fueled by political instability and economic policy shifts.

The bank's ability to survive and subsequently recover from the severe impact of World War II illustrates its crisis playbook.