OFCs’ domestic assets hit PHP 10.6T in Q1 2025

The domestic assets of other financial corporations (OFCs) in the Philippines reached PHP 10.6 trillion in the first quarter of 2025, up 4.9 percent from the previous quarter and 14.6 percent higher year-on-year, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).

OFCs include a broad range of financial entities outside the traditional banking system, such as non-money market investment funds, financial auxiliaries, captive financial institutions and money lenders, insurance corporations, and pension funds.

The BSP’s Other Financial Corporations Survey (OFCS) showed that the sector’s liabilities totaled PHP 11.2 trillion as of the end of March, a 6.2 percent increase from the previous quarter and 16.2 percent higher than a year ago.

These liabilities consisted mainly of issued shares, bonds, and other debt instruments, as well as loans sourced from various domestic sectors. (Figure 2).

Claims on depository corporations amounted to PHP 3.1 trillion, reflecting the sector’s significant deposits in banks and other financial institutions.

OFCs also held PHP 2.7 trillion in claims on the central government, mostly in the form of investments in government securities such as treasury bills and bonds.

Additionally, the sector recorded PHP 4.8 trillion in claims on other sectors, including equity holdings in nonfinancial corporations and loans extended to households.

This composition indicates OFCs’ increasingly diverse investment portfolios, which support both public and private sector financing needs.

From an external standpoint, OFCs had PHP 0.8 trillion in claims on nonresidents, while their obligations to foreign creditors and investors totaled PHP 0.2 trillion.

As a result, the sector’s net foreign assets stood at PHP 0.6 trillion in Q1 2025, a substantial increase of 34.1 percent from the previous quarter and 52.8 percent from the same period last year.

The growth of OFCs reflects their expanding role in the broader financial ecosystem, acting as alternative sources of capital and credit for businesses and consumers alike.