Real estate exposure of Philippine banks and trust entities slightly declined to 19.54 percent at the end of September 2025 from 19.61 percent in June, according to data released by the Bangko Sentral ng Pilipinas.
The third-quarter ratio of real estate exposure to the banking industry’s total loan portfolio was also marginally lower than the 19.55 percent recorded in the same period last year.
Data from the BSP showed that total loans and investments to the sector grew 7.19 percent year-on-year to P3.45 trillion in the third quarter.
Real estate loans rose 8.90 percent to P3.10 trillion at end-September from P2.84 trillion a year earlier. Commercial real estate loans accounted for the bulk of the volume at P1.91 trillion, while residential real estate loans amounted to P1.19 trillion.
Asset quality showed mixed results as past due real estate loans increased 7.06 percent to P158.62 billion from P148.16 billion.
While gross non-performing real estate loans climbed 4.06 percent to P116.09 billion, the gross non-performing loan ratio for the sector fell to 3.75 percent from 3.92 percent in September 2024.
