Bank bad loans drop to 3.31% in September

The proportion of banks' bad loans, or non-performing loans (NPLs), decreased to its lowest point in six months in September, reaching 3.31 percent.

This improvement is attributed to better weather conditions in September compared to previous months, which allowed for increased business activity and more working days.

The improved economic activity enabled households and businesses to earn more, thereby enhancing their capacity to meet their debt obligations.

Despite the decrease in the NPL ratio, the total amount of soured loans slightly increased by 4.1 percent year-on-year, reaching P538.66 billion in September.

Concurrently, overall loan disbursements saw a significant rise of 9.1 percent, indicating continued lending growth within the banking sector.