Inquirer
Bad loans jumped to 8-mo high in July
The non-performing loan (NPL) ratio in the Philippine banking sector rose to 3.4 percent in July, indicating a slight increase in soured loans after a two-month decline.
This uptick in bad loans, reaching its highest point since November 2024, suggests ongoing financial strain for households and small businesses.
In absolute terms, bad loans increased by 5.4 percent year-on-year to P535.45 billion, although this was partially offset by an 11 percent growth in the total loan portfolio.
Experts attribute the rise to persistent post-pandemic adjustments, global economic uncertainties, and tariff disputes impacting household and business resilience.
Despite the increase in NPLs, banks are proactively strengthening their loan loss provisions, signaling a cautious approach to lending.
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