PHILIPPINE banks generated record earnings in the first nine months of the year, supported by strong interest earnings and income from other banking activities.
Preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed that banks net profit reached P315.47 billion in January to September 2026 period, a 4.2-percent jump from the P302.62 billion recorded in the same period last year.
The central bank said the figures reflect the cumulative earnings of universal and commercial banks, thrift banks, rural and cooperative banks, and digital banks operating in the country.
Total operating income reached P1.16 trillion in the first nine months, significantly higher than the P761.75 billion and P1.05 trillion three months and year earlier, respectively.
Net interest income, which measures the difference between interest earned and interest paid, accounted for the bulk of operating income at P979.09 billion.
This is higher than the P639.63 billion recorded in April to June period and P862.44 billion in July to September 2025.
Interest income reached P1.34 trillion in the January-to-September period, while interest expenses amounted to P356.35 billion.
Banks also recorded P1.99 billion in provisions for losses on accrued interest income from financial assets. This is higher than the P1.05 billion recorded three months earlier.
Meanwhile, non-interest income reached P178.09 billion, up from the P122.12 billion in April to June 2026, providing an additional source of revenue for banks beyond their traditional interest-earning activities.
Fees and commissions generated P144.30 billion, making them the largest component of non-interest income. This is higher than the P95.69 billion three months ago.
Trading income contributed P31.43 billion, while profits and losses from the sale of other assets generated a net P10.40 billion.
Other income, however, registered a loss of P8.04 billion during the period, a reversal from the P23.62 billion recorded three months earlier.
Gains from the sale or redemption of financial instruments reached P14.94 billion, while unrealized gains from marking assets to market amounted to P23.36 billion.
These gains were partly offset by P6.86 billion in realized losses from foreign exchange transactions.
Non-interest expenses reached P638.46 billion in the first nine months, led by other administrative expenses of P244.95 billion and compensation and fringe benefits of P206.10 billion.
Fees and commissions expenses amounted to P48.73 billion, while taxes and licenses reached P82.43 billion.
Depreciation and amortization totaled P46.70 billion, while provisions under non-interest expenses amounted to P8.34 billion. Impairment losses reached P1.21 billion.
Before income taxes and minority interests, the banking system’s profit reached P389.33 billion.
Income tax expenses amounted to P73.86 billion, bringing total profit after tax and before minority interest to P315.47 billion.
