Philippine banks report 25% H1 earnings growth

Philippine banks reported a 25% growth in earnings in the first half of the year, with net income reaching PHP178.5bn (USD3.56bn), up PHP35.38bn from the previous year, according to data from the Bangko Sentral ng Pilipinas (BSP). This growth comes as the industry's non-performing loan (NPL) ratio improved to 3.42% in June, down from 3.55% in May. Despite rising interest expenses, which nearly tripled to PHP162.6bn, the banks' total operating income surged by 56.2% to PHP736.16bn, driven by a 17% increase in net interest income. BSP Governor Eli Remolona Jr. praised the robust banking system for helping the Philippines recover from the COVID-19 pandemic faster than its neighbours. The BSP has raised its key policy rates to 6.25% since last year to stabilise inflation and the peso, but has held rates steady in recent months.