ASSETS held by Philippine banks’ trust units surged by over 41% year on year as of end-June to its highest level so far, data from the Bangko Sentral ng Pilipinas (BSP) showed.
The industry’s trust assets reached P6.648 trillion as of June, ballooning by 41.21% from P4.708 trillion at end-June 2025.
It was also 0.93% higher than the previous all-time high of P6.586 trillion seen as of end-March.
“The faster, double-digit growth could be largely attributed to increased financial literacy of Filipinos, especially on trust investment products, especially UITFs (unit investment trust funds) and other trust funds managed by fund managers or professionals with proven track records,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
The wide variety and accessibility of fund management products also spurred the growth of banks’ trust assets during the period, he added.
He said these products managed by established trust entities help customers better manage risks while also diversifying their investments locally and globally to optimize potential returns that are usually higher than those from traditional bank offerings like deposits.
A trust business covers activities performed under a trustor-trustee arrangement, where a trustee manages funds or properties for the trustor’s benefit. Banks or nonbank financial institutions may operate trust units, with industry assets made up of security investments, bank deposits, and other holdings.
Of the total, universal and commercial banks held P6.622 trillion of the sector’s trust assets, surging by 41.46% year on year from P4.681 trillion.
Meanwhile, thrift banks had trust assets worth P25.253 billion, 3.52% lower than the P26.175 billion seen a year ago.
Based on central bank data, net deposits in banks’ trust units jumped by 21.68% to P1.414 trillion from P1.162 trillion a year prior.
Net financial assets also inched up by 4.2% to P2.948 trillion from P2.829 trillion the previous year.
Meanwhile, trust units had no cash and due from banks as of end-June. In the same period last year, this stood at P650 million.
Net loans edged up by 1.74% to P45.659 billion from P44.88 billion a year earlier.
BSP data also showed that total accountabilities amounted to P6.648 trillion as of the first half, jumping by 41.21% from the P4.708 trillion recorded a year ago.
Broken down, trust accountabilities climbed by 8.07% year on year to P1.802 trillion from P1.667 trillion, with UITFs up 5.95% to P707.050 billion.
Employee benefits likewise climbed by 7.31% annually to P392.781 billion, while pre-need rose by 9.46% to P109.845 billion.
Agency trusts under total accountabilities also went up by 9.85% to P2.427 trillion from P2.21 trillion.
On the other hand, other fiduciary services tripled (204.69%) to P2.355 trillion from P772.905 billion in the same period last year. — Katherine K. Chan
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