Philippine banks post record P403 billion profit in 2025

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February 21, 2026 | 12:00am

MANILA, Philippines — Philippine banks posted a combined net profit of P403.1 billion in 2025, rising by three percent from P391.33 billion in 2024, as strong interest income and higher fee-based revenues offset rising costs and credit provisions.

Data from the Bangko Sentral ng Pilipinas (BSP) showed the operating income of the banking sector climbed by 11 percent to P1.41 trillion last year from P1.27 trillion in 2024.

Net interest income, a key profitability driver for banks, rose by 10.6 percent to P1.15 trillion from P1.04 trillion, as interest earnings increased by 8.7 percent to P1.63 trillion from P1.5 trillion.

Interest expenses, meanwhile, grew at a slower pace of 1.1 percent to P469.86 billion from P464.65 billion.

The sector’s earnings growth came as the BSP shifted toward monetary easing, slashing key policy rates by a cumulative 225 basis points since August 2024, helping support lending activity and easing funding pressures after a prolonged period of elevated borrowing costs.

Non-interest income also provided support, expanding by 9.9 percent to P256.91 billion from P233.73 billion. Fees and commission income registered double-digit growth of 10.1 percent, reaching P179.87 billion from P163.36 billion, reflecting stronger transaction volumes and continued digital banking adoption.

On the cost side, non-interest expenses rose by 10.1 percent to P784.3 billion from P712.41 billion, partly due to higher operating and technology-related expenditures.

Banks likewise set aside larger buffers against potential loan losses. Industry provisions for credit losses surged by 55.5 percent to P184.66 billion in 2025 from P118.77 billion in 2024, amid lingering risks from elevated borrowing costs and uneven recovery across sectors.

Meanwhile, soured loans written off by banks jumped by 52.1 percent to P5.08 billion from P3.34 billion.