PH banks’ bad loan ratio rises to 8-mo high

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Philippine banks’ bad loan ratio rose to an eight-month high in April as borrowers felt the sting of inflation, slow economic growth and higher borrowing costs amid the war in the Middle East.

Nonperforming loans (NPL), or debts overdue by at least 90 days and at risk of default, accounted for 3.37 percent of the local banking sector’s total lending portfolio as of April, figures from the Bangko Sentral ng Pilipinas (BSP) showed.

READ: Philippine banks’ bad loans swelled to 6-month high in February

That marked the highest gross NPL ratio since August 2025, when the share stood at 3.5 percent.