BUSINESS: Banks’ bad loan ratio higher in July | Sept. 10, 2026

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1:01That's Q-U-O.com slash tech. This podcast is brought to you by Thompson Reuters. The best don't just do their work, they change what's possible. Case is won, audits completed, jobs saved. Behind every one of those moments is a professional who needed to get it right, and did. Thompson Reuters builds the technology that sharpens insights, speeds up decision making, and powers the outcomes that matter. So when professionals act, the impact is felt by everyone. Be a change maker. Visit tr.com forward slash change makers. You're a pro at running your life, at committing to your workout, at showing up every day. At Bombas, we're pros too. Pro is at making socks. Our sportist Orban has specialized socks for whatever sport you're committed to. Running, hiking, golf, pilates, and so much more. Mabas, sweat wicking yarns, blister fighting details, and targeted art support. Bombas sport is pro level socks from the pros of socks. For another pro, you go to bombas.com slash audio and use code audio for 20% off your

2:02first purchase. That's bombas.com and use code audio. Banks bad loan ratio higher in July. The non-performing loan, NPL, ratio of Philippine banks climbed to 3.35% in July as borrower struggle with debt repayments amid high inflation and interest rates. Data from the bank co-centraling PiliPina showed. NPL or bad loan ratio, which covers past due debts whose principal or interest is unpaid for 90 days or more, rose from June's six-month low of 3.29%, but slightly lower than your earlier's 3.4%. Reyes Taken-Dong and company senior advisor Jonathan Ravola said the rise in non-performing loans shows that some households and businesses are still facing financial stress after a prolonged period of high borrowing costs and inflation. He argued that while the economy continues to grow, some sectors and borrowers are recovering more slowly, making it harder for them to repay their loans. As bank lending expands, a modest rise in NPLs is a normal part of the credit cycle, Ravola said. The good news is that this does not point to a systemic banking issue, he added.

3:06Sowered loans rose to P585.08 billion in July from month earlier's P584.97 billion. It is also markedly higher than July 2025's P535.45 billion. Past due loans, meanwhile, declined to P738.77 billion in July from P753.4 billion and P687.59 billion a month in year earlier, respectively. These accounted for 4.23% of total loans, down from 4.24% in June but higher than the 4.36% in July 2025. Restructured loans, however, rose to P341.95 billion from P337.98 billion in June and P329.64 billion in July 2025. This accounts for 1.96% of bank's gross loan portfolio, up from 1.90% a month earlier but lower than 2.09% a year earlier. Lenders loan loss reserves recorded a down tick of P540.89 billion in July or 3.1% of total loans.

4:13This was, however, lower than the 3.25% a year earlier. The NPL coverage ratio, a measure of bank's allowance for potential losses, was lower at 92.35% from 95.63% in 2025. Despite the increase, Ravolas said banks remain financially strong, with enough capital and provisions to cover potential losses while the NPL ratio remains manageable by historical standards. Moving forward, the key will be continued economic growth, easing inflation, lower interest rates and prudent credit risk management to help improve borrowers debt servicing capacity, Ravolas said. This podcast is brought to you by Thompson Reuters. The best don't just do their work, they change what's possible. Cases 1, audits completed, jobs saved. Behind every one of those moments is a professional who needed to get it right and did. Thompson Reuters builds the technology that sharpens insights, speeds up decision making and powers the outcomes that matter. So when

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