Philippine banks' nonperforming loans fell to 3.32% by November 2025, driven by stronger lending and better credit management.

Philippine banks' nonperforming loan ratio fell to 3.32% by November 2025, the lowest in two months, driven by lower interest rates, stronger loan growth, and improved credit management. Despite a rise in bad loans to P544.86 billion, the ratio declined due to a 11.49% year-on-year increase in the loan portfolio. Loan loss reserves rose, boosting coverage to 94.92%. Total bank assets reached P28.722 trillion, up 7.44% annually, fueled by growing loans and investments.