Philippine Banks Earn ₱315.5 Billion From January to September 2026 — What Pushed Their Profits Up
PHILIPPINE BANKS NET INCOME 2026 – The country’s banks earned a combined net income of ₱315.47 billion in the first nine months of 2026, up about 4.2 percent from ₱302.62 billion in the same period last year, based on preliminary data from the Bangko Sentral ng Pilipinas (BSP).
The ₱12.85-billion increase came mainly from higher interest earnings on loans, The Philippine Star reported. The Philippine Daily Inquirer described the haul as the industry’s highest third-quarter earnings since comparable records began in 2008.
Where the Banks’ Earnings Came From
Here are the key figures from the BSP data, as reported by BusinessWorld and The Philippine Star:
- Net interest income – up 13.5 percent to ₱979.09 billion from ₱862.44 billion
- Interest income – up 9.8 percent to ₱1.34 trillion
- Interest expense – up only 0.7 percent to ₱356.35 billion
- Non-interest income – down 5 percent to ₱178.09 billion from ₱187.39 billion
- Fees and commissions – up 7 percent to ₱144.30 billion
- Trading income – jumped more than fivefold to ₱31.43 billion from ₱5.59 billion
- Non-interest expenses – up 9.8 percent to ₱638.46 billion
In simple terms, banks earned much more from the interest they charge on loans, while the interest they pay on deposits and borrowings barely moved. This gap is what lifted their bottom line.
What Pulled Profits Down
Not everything went the banks’ way. According to The Philippine Star, the industry booked ₱35.87 billion in foreign exchange losses, a reversal of the ₱9.06 billion in gains a year earlier. Banks also set aside ₱168.69 billion in provisions for credit losses on loans and other financial assets, 24.8 percent more than the ₱135.16 billion a year ago. These provisions cover loans that may not be fully repaid.
Personnel costs, taxes and licenses, and other administrative expenses also pushed operating costs higher, BusinessWorld noted.
Banking Assets, Loans and Deposits at New Highs
- Total assets of the banking system reached ₱31.6 trillion as of end-September, up 9.8 percent from ₱28.78 trillion a year earlier.
- Gross loans grew 11.4 percent to ₱18.13 trillion.
- Deposits rose 7.5 percent to ₱22.64 trillion, of which ₱18.59 trillion were peso deposits and ₱4.05 trillion were foreign currency deposits.
RCBC chief economist Michael Ricafort told BusinessWorld that sustained growth in loans and deposits allowed banks to post higher income in the nine-month period, and that sound risk management would remain important in dealing with global and local risks in the coming months.
What It Means for Borrowers
The strong earnings came as borrowing costs stayed high. The Inquirer noted that the BSP’s Monetary Board raised its benchmark interest rate by half a percentage point to 5.5 percent on October 22 to fight persistent inflation, which the central bank expects to average 6.1 percent this year. For Filipinos planning to take out a cash loan, car loan or housing loan, this means interest rates are likely to remain elevated for now, so it pays to compare offers from different banks before signing up.
Are you planning to apply for a bank loan this year? Check out our guide on the RCBC Cash Loan 2026.
