Bad loans held by Philippine banks eased slightly in May 2025, even as demand for credit continued to rise, according to data from the Bangko Sentral ng Pilipinas (BSP).
Non-performing loans (NPLs) of Philippine banks declined to 3.38 percent in May from 3.39 percent in April. This was also lower than the 3.57 percent recorded in May 2024.
Gross non-performing loans amounted to P527.45 billion against total loans of more than P15.3 trillion as of end-May 2025.
Data showed that outstanding loans from universal and commercial banks in the Philippines grew 11.3 percent year-on-year in May, a quicker pace than the 11.2-percent increase seen in April. After adjusting for seasonal fluctuations, outstanding loans increased 0.9 percent in May compared with the previous month.
Outstanding loans to residents expanded 11.8 percent year-on-year in May, a slight dip from 11.9 percent in April. However, outstanding loans to non-residents declined 6.6 percent in May, following a 10-percent decrease in the previous month.
Loans to fund business activities increased 10.2 percent in May from 10.3 percent in April.
Meanwhile, the BSP issued a memorandum circular reminding banks “to ensure non-discrimination against certain types of customers or against a certain religion, race or ethnic origin, or such other attributes or profiles” when implementing anti-money laundering/countering terrorism and proliferation financing (AML/CTPF) laws.
“POC [persons of concern] shall be ensured access to financial services and connectivity as part of their fundamental rights,” the memorandum read.
