August 13, 2025 | 12:00am
MANILA, Philippines — Philippine banks booked increased earnings within the first half, lifted by regular mortgage demand and stronger buying and selling beneficial properties, whilst provisions for dangerous loans surged.
Preliminary Bangko Sentral ng Pilipinas (BSP) knowledge confirmed the trade’s mixed web earnings elevated by 4.1 % to P198.14 billion from P190.26 billion a 12 months earlier.
Complete working earnings climbed by 12.2 % to P684.71 billion in January to June from P610.3 billion in the identical interval final 12 months.
This got here as web curiosity earnings, or earnings from core lending and funding actions, grew by 11.7 % to P564.98 billion.
Curiosity earnings went up by 10 % to P800.86 billion, whereas curiosity bills rose at a slower tempo of 5 % to P234.66 billion.
Likewise, banks’ non-interest earnings jumped by 14.6 % to P119.74 billion, pushed by a 15-percent enhance in charges and commissions, to P89 billion and a greater than threefold soar in buying and selling beneficial properties to P46.86 billion.
On the expense facet, banks’ non-interest prices resembling salaries, lease and administrative bills rose by 12.5 % to P384 billion.
Banks additionally put aside extra funds to protect in opposition to attainable credit score losses, with provisions for dangerous money owed surging by 63.9 % to P84.19 billion from P51.38 billion. Mortgage write-offs additionally jumped by 83 % to P2.75 billion from P1.5 billion.
For common and business banks, their web earnings inched up by 2.5 % to P184.46 billion within the first half from a year-ago degree of P179.9 billion.
Sy-led BDO Unibank reported a three-percent enhance in web earnings to P40.6 billion, adopted by Ayala-owned Financial institution of the Philippine Islands (BPI) with a 7.8-percent surge to P33 billion. Ty-led Metropolitan Financial institution & Belief Co. (Metrobank) posted a web earnings of P24.8 billion.
In the meantime, the sector’s complete property expanded by 7.7 % to P28.21 trillion from P26.19 trillion a 12 months earlier, reflecting regular mortgage progress and elevated investments.
