Fitch: PH banks lead regional profit race

Philippine banks are poised for sustained profitability through 2026, bolstered by robust loan demand and a global shift toward monetary easing, according to Fitch Ratings.

- By DERCO ROSAL

In a report dated Jan. 13. the debt watcher identified the Philippines, alongside India, Vietnam, and Indonesia, as a primary engine for regional banking growth, describing strong loan expansion as "critical lever" for maintaining bottom-line health in emerging markets.

"Strong loan growth in many emerging markets—particularly India, Vietnam, the Philippines and Indonesia—remains a critical lever for sustaining profitability," Fitch Ratings said.

Lending by big banks, or universal and commercial banks (U/KBs), held steady in November 2025 as private consumption remained robust.

Fitch added that the nearing-end monetary easing cycles across central banks in Asia Pacific (APAC) would prop up earnings growth for most banks in the region, including the highly profitable Philippine banks.

Despite steady loan growth in November, Reyes Tacandong & Co. Senior Adviser Jonathan Ravelas earlier said lingering flood-control issues still threaten to weigh on banks' lending confidence.

"When trust is shaken, investors hesitate, and banks become more cautious," said the economist.