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MANILA, Philippines — Philippine banks’ bad loans fell to a six-month low in June, a welcome sign of resilience even as lenders quietly built bigger financial cushions against mounting economic risks.
Nonperforming loans (NPL), or debts overdue by at least 90 days and at risk of default, accounted for 3.29 percent of the local banking sector’s total lending portfolio last month, figures from the Bangko Sentral ng Pilipinas (BSP) showed.
READ: Banks’ bad loans rise as loss buffers fall
That marked the lowest gross NPL ratio since December 2025, when the share stood at 3.07 percent.
