Bank arrears spike to P8bn

The arrears figures steadied to P6.6 billion in February, a level roughly representing the average in 2025. In January, most of the arrears, or 32 percent, were classified as “specific provision” meaning dues that are over 180 days old and subject to enhanced collection methods. Specific provision loans are also closest to being unrecoverable.

In February, the majority of loans were classified as being over 180 days old, but not in specific provisions, suggesting the maturation of old arrears over time. According to BoB figures, the country’s commercial banks reported P517.3 million in collective after-tax profits for the first two months of the year, a 24% drop from the same period last year, as tighter economic conditions slow down the sector. The performance in January and February underlines the pressures seen in a sector that is traditionally one of the country’s most profitable.