Philippine banks' NPL ratio hits a 23-month high of 3.57% in May, driven by high interest rates.

The nonperforming loan (NPL) ratio of Philippine banks rose to a 23-month high of 3.57% in May, driven by a high interest rate environment affecting borrowers' paying capacity. This is the highest ratio since June 2022's 3.60% and above the 3.46% recorded in May 2022. Bad loans rose to P495.67 billion in May, up from P480.64 billion a month earlier and a 13.7% year-on-year increase from P436.12 billion.

July 04, 2024
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