NPLs at ₧537B in Oct, ratio eases to 3.3% By Reine Juvierre S. Alberto
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OURED loans held by the Philippine banking system eased in October 2025, as banks demonstrated effective risk management and borrowers continued to pay on time. Latest data from the Bangko Sentral ng Pilipinas (BSP) showed the Philippine banking system logged a 3.33-percent non-performing loans (NPLs) ratio for the month of October 2025. This is lower than the 3.60 percent recorded in the same month last year, but slightly higher than the 3.31 percent posted in September 2025.
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In absolute terms, the NPLs of the Philippine banking system stood at P537.027 billion in October 2025, slightly lower than the P538.923 billion reported a month earlier and higher than the P524.311 billion a year ago. Meanwhile, the gross total loan portfolio of the banking system amounted to P16.103 trillion as of October 2025, BSP data showed. NPLs, also known as “bad” or “soured” loans, are credit accommodations that have not been paid for 90 days or more after the due date. A lower NPL ratio is indicative of a bank that is less susceptible to loan quality erosion as its loan assets are healthy, with only a small
percentage of bad loans. According to Jonathan Ravelas, senior adviser at professional services firm Reyes Tacandong & Co., the improving NPL ratio is the effect of previous cuts, improving consumer spending and tightening credit standards of banks post-pandemic. “It shows resilience—banks are managing risks well and borrowers are paying on time,” Ravelas said. However, he cautioned that global headwinds and higher rates could still pressure some sectors, such as construction and real estate. Meanwhile, past due loans (PDLs) grew to P685.585 bil-
lion as of October 2025, up from P675.603 billion a month ago and P640.881 billion a year ago. The PDL ratio settled at 4.27 percent of the total loans, higher than the 4.16 percent in September 2025, but lower than last year’s 4.40 percent. BSP data further showed the NPL ratio of universal and commercial banks is higher month-onmonth at 3.05 percent in October 2025, amounting to P16.103 trillion, from 3.02 percent. Compared to the level a year ago, this is lower than 3.31 percent. In the case of thrift or savings banks, their NPL ratio declined to 6.15 percent, equivalent to See “NPLs,” A2
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Tuesday, December 9, 2025 Vol. 21 No. 62
P25.00 nationwide | 2 sections 20 pages | 7 DAYS A WEEK
By Andrea San Juan @andreasanjuan
NVESTMENTS approved by the Board of Investments (BOI) plunged to P817 billion in the January to November 2025 period, nearly 50 percent down from the P1.58 trillion approved in the 11-month period in the same period a year ago.
In a statement, the investment promotion agency attached to the Department of Trade and In-
dustry (DTI) announced that BOI investment approvals for January See “Investments,” A2
AS PHL MISSES UMIC BY P1,531, EXPERTS FLAG RANGE OF ISSUES By Malou Talosig-Bartolome
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HE Philippines failed to achieve Upper MiddleIncome Country (UMIC) status in 2025, missing the World Bank threshold by just USD26 per capita—around P1,531. Economists warn the narrow miss reflects not weak fundamentals but eroding investor confidence amid corruption scandals, stalled infrastructure, and governance lapses. The World Bank classifies UMIC economies as those with a Gross National Income (GNI) per capita between USD4,516 and USD13,205 (about P266,000 to P777,000). The Philippines reached USD4,490 per capita— around P264,500—in 2025, falling short despite solid macroeconomic indicators.
A report by the Philippine Institute for Development Studies (PIDS), authored by John Paolo R. Rivera, Mark Gerald C. Ruiz, and Ramona Maria L. Miral, noted: “The country missed UMIC status by only USD 26… This milestone remains within reach if the Philippines sustains its momentum through strategic investments, targeted reforms, and a stable macroeconomic environment.”
Peso plunge, market volatility
• Inflation averaged 3.2 percent in 2024 and dropped further to 1.7 percent from January to October 2025, within the BSP’s target range. • Yet the Philippine Peso sank to a record P59 per US dollar See “UMIC,” A5
BARGAIN BUSTLE With the long Philippine holiday season already in full swing, the familiar rush fills the streets of Divisoria in Manila, where crowds from all walks of life weave through busy stalls in search of affordable gift items. Known for its vast selection of goods priced far lower than mall offerings, the district remains a top destination for shoppers hoping to find something meaningful for their loved ones without overspending. For many, the annual trip to Divisoria is more than bargain-hunting—it is a cherished part of their extended Christmas tradition. NONIE REYES
DA watchdog to monitor infra projects By Ada Pelonia
T STAMP OF FAITH The Philippine Postal Corporation (PHLPost) unveiled its 2025 Christmas Stamps featuring a Filipino-inspired Nativity scene during the Christmas Tree Lighting Ceremony at the Kartilya ng Katipunan in Manila on Friday, December 5. Led by Postmaster General Maximo Sta. Maria III, together with Mayor Francisco “Isko” Moreno Domagoso and Vice Mayor Chi Atienza, the launch highlighted a vibrant Belen artwork that reflects the nation’s deep-rooted traditions of faith, family, and hope. The stamp, designed by PHLPost artist Eunice Dabu, features gold foil accents that honor the sacred story at the heart of the season. PHLPOST
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HE Department of Agriculture (DA) has established a watchdog unit to ensure the implementation of infrastructure programs, particularly farm-to-market roads (FMRs), amid the controversial flood control projects. “The recent controversy surrounding flood control projects underscores why we need a strong safeguards system,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “We cannot afford gray areas or blind spots. This watchdog unit ensures that every DA project is transparent, accountable, and fully aligned with environmental and social standards,” he added. The DA will take over the development of FMRs from the Department of Public Works and Highways (DPWH) starting 2026.
The agency noted that infrastructure oversight would be strengthened under the DA’s newly formed Interim Social and Environmental Safeguards (SES) Unit. The unit institutionalizes safeguarding tools first developed under the World Bank, which supported Philippine Rural Development Project (PRDP). These tools include environmental assessments, social risk reviews, and stakeholder engagement protocols that would be integrated into all DA offices, bureaus, attached agencies, and regional field units as it ramps up climateresilient programs. Tiu Laurel said the unit will create a department-wide SES institutionalization roadmap, harmonize standards, embed safeguards into every stage of project planning and procurement, and ensure compliance with national regulations and development-partner requirements. A nationwide network of trained safeguards
officers will provide oversight at both central and regional levels, he added. Furthermore, the DA said the unit will coordinate with various government agencies. These include the Department of Environment and Natural Resources (DENR), National Commission on Indigenous Peoples (NCIP), and the Department of Economy, Planning, and Development (DepDev), along with financing partners including the World Bank and IFAD. The move follows a World Bank recommendation under the PRDP Scale-Up to establish permanent safeguards positions for continuity, it added. At the national level, the DA said the SES Unit will be led by a supervisor and senior specialists, while regional field offices will form their own teams led by junior specialists. The creation of the unit comes amid the “scale of enormous task,” especially for FMRs. In particular, the DA noted that the national FMR roadmap details 131,000 kilometers of
needed rural roads, but over 60,000 kilometers remain a backlog. “These roads are vital for lowering transport costs, reducing post-harvest losses, and enhancing the movement of produce from farms to markets,” the DA said. Alongside FMRs, the agency said it was expanding its infrastructure with food hubs, cold storage facilities, and rice mills. France has pledged support for around 300 steel bridges in 52 provinces, aimed at improving access for farmers in remote areas, it added. For Tiu Laurel, the strengthened structure is crucial as the DA advances “sustainable, accountable, and community-protective” agricultural development. “With billions of pesos in rural infrastructure in the pipeline, the department aims to minimize environmental risks, protect communities, and close compliance gaps that have historically slowed projects.”
PESO EXCHANGE RATES n US 59.0700 n JAPAN 0.3809 n UK 78.7285 n HK 7.5904 n CHINA 8.3539 n SINGAPORE 45.5998 n AUSTRALIA 39.0394 n EU 68.7870 n KOREA 0.0400 n SAUDI ARABIA 15.7415 Source: BSP (December 5, 2025)