Philippine banks' NPL ratio hits 9-month high in August

Philippine banks experienced a rise in their non-performing loan (NPL) ratio to a nine-month high of 3.5 percent in August.

This marks the highest NPL ratio since November 2024, indicating increased difficulty for borrowers in meeting their loan obligations.

Soured loans in nominal terms expanded by 7.3 percent year-on-year to P550.1 billion.

The total loan portfolio of Philippine banks stood at P15.709 trillion in August, a 9.9% climb from the previous year.

The slight uptick in banks' NPL ratio reflects softer economic momentum and early stress in consumer and MSME segments amid cost pressures, according to UnionBank Chief Economist Ruben Carlo O. Asuncion.