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Manila Bulletin devider Business devider Banking & Finance devider Philippine banks' property exposure hits six-year low—BSP data

Philippine banks' property exposure hits six-year low—BSP data

Published Jun 23, 2025 12:01 am  |  Updated Jun 21, 2025 04:22 pm
The real estate exposure of banks and their trust units at end-March, fell to 19.41 percent of the total loan portfolio, excluding interbank loans, down from 20.31 percent the previous year.
Based on the latest data from the Bangko Sentral ng Pilipinas (BSP), the overall property exposure ratio has been the lowest in six years, or since March 2019.
The total real estate exposure of banks and trust units, based on real estate loans (REL) and real estate investments (REI), for the first three months, totaled ₱372.4 billion, a 1.9 percent decrease from last year’s ₱379.4 billion.
As of March, real estate exposure as residential REL totaled ₱1.13 trillion, up 10.8 percent from last year’s ₱1.02 trillion. Commercial REL, at ₱183 trillion, was also 7.7 percent higher than the previous year’s ₱1.70 trillion.
REI is a debt and equity security. During the period, real estate exposure as debt securities totaled P256 billion, 1.9 percent higher than the previous year’s ₱251.2 billion. Meanwhile, equity securities amounted to ₱116.4 billion, down by 9.3 percent compared to ₱128.3 billion last year.
As of the end of the first quarter, bank proper REL meanwhile amounted to ₱2.96 trillion, up by 8.8 percent versus the same time in 2024 of ₱2.72 trillion.Banks’ REI totaled ₱97.3 billion, down 10.1 percent from ₱108.2 billion last year. 
Although the condominium market within Metro Manila “sees challenges, developers have been very aggressive in offering ready for occupancy (RFO) promos and these have been lifting take up for units either for long-term lease or sale,” according to Colliers’ Metro Manila residential report for the period, published last month.
Colliers’ latest briefing polls showed that demand for condominium units is picking up, suggesting that the ready-for-occupancy promos offered by developers are paying off.
“Colliers believes that it is not all doom and gloom for the Metro Manila residential market. Developers have been launching less pre-selling units as they remain aggressive in introducing new residential projects in competitive localities outside of the capital region,” Colliers said.
It further said that “recovery will focus around launching the ideal residential product at the right location with a viable price and favorable terms.”
It can be recalled that the BSP relaxed its rules on banks’ real estate loan limits, raising the cap from 20 percent to 25 percent. The move was aimed at encouraging bank lending to households for the acquisition or construction of a residential real estate property. 

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Bangko Sentral ng Pilipinas (BSP)
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