Philippine banks' loan growth slowed to 10.3% YoY in Nov 2025, driven by rising consumer credit, with stable ratings and expected rate cuts ahead.

Philippine banks saw steady loan growth of 10.3% year-on-year in November 2025, the slowest pace since June 2024, with consumer credit surging, especially in credit cards and auto loans. Despite a corruption scandal affecting economic confidence and contributing to a 4% Q3 GDP growth rate, Fitch Ratings maintains a BBB- rating for the banking sector, citing stable conditions and projected 5%+ growth through 2027. Loan expansion remains moderate, supported by ongoing demand and potential further monetary easing by the Bangko Sentral ng Pilipinas, which may cut rates by 25–50 basis points in early 2026.