Preliminary results from the Other Financial Corporations Survey (OFCS) show that domestic claims of other financial corporations (OFCs) grew by 2.0 percent quarter-on-quarter (q-o-q) in the fourth quarter of 2024. Total domestic claims rose to ₱10,070.9 billion in Q4 2024, up from ₱9,870.4 billion in Q3 2024 and ₱8,942.3 billion in Q4 2023.
The q-o-q growth was primarily driven by increased claims on depository corporations, notably through higher bank deposits. However, this growth was partially offset by a decline in claims on the central government and other sectors. Claims on the central government fell due to reduced holdings of government-issued debt securities. Similarly, claims on other sectors declined as decreased investments in equity shares issued by nonfinancial corporations outweighed the increase in household loans.
Net foreign assets of OFCs declined by 4.2 percent q-o-q to ₱465.9 billion in Q4 2024, from ₱486.4 billion in Q3 2024. This was largely due to reduced deposits with nonresident banks and lower investments in nonresident-issued debt securities. Meanwhile, the sector’s other liabilities rose by 1.7 percent to ₱10,536.8 billion, driven mainly by an increase in share and equity issuances.
On a year-on-year (y-o-y) basis, domestic claims grew by 12.6 percent in Q4 2024, up from 11.9 percent in the previous quarter. This growth was fueled by higher claims on depository corporations, the central government, and other sectors. Increased deposits with banks, expanded holdings of equity shares issued by nonfinancial corporations, and more loans extended to households all contributed to the uptick. Additionally, investments in government-issued debt securities pushed claims on the central government higher.
Net foreign assets rose 20.6 percent y-o-y in Q4 2024, though at a slower pace compared to the 31.1 percent increase in Q3. Other liabilities also climbed by 13.0 percent, reflecting continued growth in equity and share issuances.
By component, claims on other sectors—particularly nonfinancial corporations—formed the largest share of OFCs’ domestic claims in Q4 2024, followed by claims on depository corporations and the central government.
Since the OFCS began in Q1 2017, OFCs’ domestic claims have more than doubled, growing by 100.2 percent from ₱5,030.9 billion to ₱10,070.9 billion in Q4 2024. Over the same period, the sector’s other liabilities increased by 109.8 percent, rising from ₱5,022.4 billion to ₱10,536.8 billion—highlighting the sector’s expanding role in the Philippine financial system.
