Manila, Sept. 9 -- The ratio of non-performing loans (NPLs) to total loans at Philippine banks rose in July this year.

Latest data from the Bangko Sentral ng Pilipinas (BSP) showed that the NPL ratio rose to 3.35 percent in July from 3.29 percent in June. It was, however, slightly lower than the 3.40 percent NPL ratio recorded in July 2025.

The gross non-performing loans during the month amounted to PHP585.08 billion.

"The increase in non-performing loans in July reflects pockets of financial stress among some households and businesses after an extended period of high borrowing costs and elevated inflation," Reyes Tacandong & Co. Senior Adviser Jonathan Ravelas said.

Ravelas said that while economic growth continues, not all sectors a...