S&P Global Ratings believes the Philippines’ top 10 banks can weather the effects of higher U.S. tariffs due to strong capitalization, solid liquidity buffers, and limited exposure to exports.
The Philippine economy should be resilient to tariffs due to low reliance on exports. Philippine banks’ credit quality will stay strong amid relatively benign economic conditions,” said S&P credit analyst Nikita Anand.
These top-tier banks account for about 85% of total industry assets, giving them scale and stability to ride out volatility.
S&P noted that banking profitability has improved, supported by wider margins and tighter cost control.
With interest rates expected to ease, the firm anticipates an increase in higher-yielding loans that could boost returns.
However, S&P warned that expanding into consumer lending comes with risks tied to asset quality.
