MAKATI CITY — The thrift banking sector is projecting continued growth in total assets this year, building on a 25 percent expansion that brought assets to PHP1.4 trillion. Core lending also rose by 26 percent to PHP977.32 billion last year, reflecting sustained credit support for micro, small and medium enterprises, housing finance, and consumer borrowers nationwide. The sector's nonperforming loan ratio remained manageable, indicating disciplined risk management despite strong loan growth, while total deposits showed corresponding increases. Industry leaders made these announcements during the Chamber of Thrift Banks (CTB) 52nd anniversary convention held in Makati City, underscoring the city's role as the center of the country's banking and financial activities.
Financial Inclusion and Digital Transformation Driving Growth
The basic driver of the sector's optimism is financial inclusion, with new services expanding credit access to underserved markets. Thrift banks play a crucial role in providing credit to MSMEs, which comprise the vast majority of registered business establishments in the Philippines. Industry leaders emphasized that the challenge today is not choosing between physical branches and digital banking, but creating a seamless customer experience by integrating traditional banking, digital channels, and artificial intelligence. The CTB's convention theme, "Staying True to Customer Relevance, Through the Nexus of Traditional, Digital, and Artificial Intelligence," reflects the sector's commitment to modernizing without losing the personal relationships that have long defined their role in the financial system.
