THE nonperforming loan (NPL) ratio of Philippine banks hit a six-month high of 3.33 percent in January, Bangko Sentral ng Pilipinas (BSP) data showed.
The credit-risk indicator — which covers past-due loans where the principal or interest is unpaid for 90 days or more after the due date — rose from 3.31 percent in January but was lower than the year-earlier 3.38 percent.
It was highest since August 2025’s 3.50 percent and matched the 3.33 percent recorded in October that year.
Soured loans rose to P553.68 billion in February from P550.81 billion a month earlier. These were also higher than the yearago P513.35 billion.
Past due loans picked up to P715.66 billion from P711.58 billion and P637.81 billion a month and a year ago, respectively. These accounted for 4.31 percent of total loans, up from 4.28 percent in January and 4.20 percent last year.
Restructured loans slid to P335.39 billion from P336.99 billion, comprising 2.02 percent — down from January’s 2.03 percent — of banks’ gross loan portfolio.
A year earlier, restructured loans were lower at P311.11 billion.
Lenders’ loan loss reserves went up to P519.53 billion, equivalent to 3.13 percent of total loans but were lower than the 3.23 percent a year earlier.
The NPL coverage coverage ratio — a measure of banks’ allowance for potential losses — eased to 93.83 percent from 95.36 percent a year earlier.
Sought for comment, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the increase could be linked to slower economic growth as business activity weakened amid a massive flood control project scandal.
This also led to government underspending on infrastructure that reduced employment, sales and incomes for suppliers and other affected industries nationwide, he added.
“Slower global and local economy due to Trump’s higher tariffs, trade wars and protectionist measures also slowed down business and other economic activities that led to reduced ability by some borrowers to pay their debt/loans,” Ricafort continued.
