Philippine thrift banks grew profit, assets, and loans in the first quarter of 2026, even as the sector adapts to digital transformation, artificial intelligence, and tougher competition from digital banks and fintechs, according to the Chamber of Thrift Banks (CTB), as reported by Philstar.
Net profit rose 11.8% to PHP 5.86 billion in the first quarter from PHP 5.24 billion a year earlier, per BSP data.
Total operating income jumped 27.6% to PHP 28.84 billion, supported by a 24.7% increase in net interest income to PHP 24.77 billion.
Non-interest income climbed 48.7% to PHP 4.06 billion, while fees and commissions more than doubled to PHP 3.62 billion.
Total assets grew 11% to PHP 1.4 trillion as of end-May, from PHP 1.27 trillion a year earlier, on steady loan growth, stronger deposits, and a wider capital base.
Gross loans grew 13.4% to PHP 1.07 trillion, while deposits rose 10.5% to PHP 1.06 trillion.
CTB and Equicom Savings Bank President Jaime Valentin Araneta said thrift banks are not just growing but strengthening their role as community-based lenders for households and MSMEs, even as competition intensifies from digital banks, fintechs, and electronic money issuers.
“They are structural signals of strength,” he said of the sector’s latest performance.
Adapting to Digital Competition
Araneta’s comments echo a theme the CTB has raised before.
In 2024, then-CTB president Cecilio “Paul” San Pedro urged member banks to treat fintech collaboration as a strategic pathway to growth.
He pointed to digital platforms, mobile apps, and fintech partnerships as ways to compete.
The remarks come as the CTB marks its 52nd anniversary.
Araneta separately described the banking landscape as having “transformed beyond the conventional,” even as thrift banks’ core mission remains anchored on serving households and small businesses.
Araneta noted that thrift banks have weathered previous crises, including the Asian financial crisis of the 1990s, the global financial crisis of the 2000s, and the pandemic in 2020.
He said the sector’s capital strength, governance, and risk management would help it navigate current challenges, including the fallout from the flood control corruption scandal.
Featured image: Edited by Fintech News Philippines based on an image by nurfdesigns via Magnific.
