Banks' bad loans ratio highest in 8 months

The share of bad loans to the banking sector's total loan book went up to an eight-month high in January, snapping two straight months of decline, as borrowers felt the pinch of elevated interest rates.

- KEISHA TA-ASAN

Preliminary data released by the Bangko Sentral ng Pilipinas (BSP) showed that the non-performing loan (NPL) ratio of Philippine banks rose to 3.44 percent in January from the revised 3.24 percent in December, the highest in eight months or since the 3.46 percent in May 2023.

After improving for four straight months to hit a six-month low of 3.40 percent in September, the NPL ratio picked up to 3.44 percent in October before easing to 3.41 percent in November.