The Philippine banking system’s bad loan ratio rose in April as borrowers continued to feel the delayed impact of elevated interest rates, data from the Bangko Sentral ng Pilipinas showed.
Banks’ non-performing loan ratio increased to 3.37 percent in April from 3.29 percent in March.
Gross non-performing loans climbed to P579.89 billion during the month, higher than the P568.55 billion recorded in March and the P519.23 billion posted in April 2025.
Non-performing loans refer to borrowings that remain unpaid for a certain period and are considered at risk of default.
Total loans extended by banks eased to P17.20 trillion in April from P17.26 trillion in March, but remained well above the P15.34 trillion recorded in the same month last year.
Past-due loans also increased sharply to P763.59 billion in April from P653.26 billion in March.
The latest figures indicate that credit conditions remained under pressure despite the continued expansion of the banking sector’s loan portfolio compared with last year.