Philippine banks earned PHP 106.99 billion in the third quarter of 2026, their highest quarterly profit this year, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
That compares with PHP 104.82 billion in the first quarter and PHP 103.66 billion in the second.
Combined net income for the first nine months reached PHP 315.47 billion, up 4.2% from a year earlier, Philstar reported.
The Inquirer described the third-quarter result as a record.
Interest Income Keeps Climbing
Net interest income is the gap between what banks earn on loans and investments and what they pay on deposits.
It rose for a third straight quarter, reaching PHP 339.46 billion in the third quarter, up from PHP 329.04 billion in the second and PHP 310.59 billion in the first.
For the nine months, net interest income climbed 13.5% year on year to PHP 979.09 billion.
Fee and commission income held steady at about PHP 48 billion a quarter.
FX Losses Wipe Out Earlier Gains
Banks booked PHP 40.87 billion in foreign exchange losses in the third quarter.
This followed a gain of PHP 12.71 billion in the second quarter, and pushed the nine-month total to a PHP 35.87 billion loss.
Trading income largely made up for it. It swung to a PHP 37.10 billion gain in the third quarter, from a PHP 11.89 billion loss in the second.
Costs Hold Steady As Provisions Dip
Provisions for credit losses on loans and other financial assets fell to PHP 57.31 billion in the third quarter. It fell from PHP 63.74 billion in the second.
For the nine months, they totalled PHP 168.69 billion, 24.8% higher than a year earlier.
Operating expenses were steady at about PHP 216 billion in the quarter, bringing the nine-month total to PHP 638.46 billion.
Total banking assets reached PHP 31.6 trillion at the end of September, up 9.8% year on year, the Philippine News Agency noted.
The results follow the industry’s record first-quarter profit earlier this year.
Featured image: Edited by Fintech News Philippines based on images by Magnific and the Bangko Sentral ng Pilipinas via its website.
