Philippine banks report 4.1% earnings gain in H1 2025

Philippine banks reported higher earnings in the first half of 2025 due to steady loan demand and stronger trading gains.

Combined net income for the banking industry rose by 4.1 percent to P198.14 billion from P190.26 billion a year earlier, according to Bangko Sentral ng Pilipinas data.

Total operating income increased by 12.2 percent to P684.71 billion in the first half of the year compared to P610.3 billion during the same period last year, driven by significant growth in trading income and fees.

Despite this growth, provisions for bad loans surged by 63.9 percent to P84.19 billion from P51.38 billion a year earlier, reflecting banks' efforts to guard against potential credit losses.

Universal and commercial banks saw their net income rise by 2.5 percent to P184.46 billion in the first half of the year, with BDO Unibank, Bank of the Philippine Islands (BPI), and Metropolitan Bank & Trust Co. (Metrobank) posting significant gains.

The sector's total assets expanded by 7.7 percent to P28.21 trillion from P26.19 trillion a year earlier, indicating steady loan growth and increased investments.