Forecast: Total Non-Performing Loans in Philippines

The total non-performing loans (NPL) in the Philippines showed a significant decrease over the years. From a value of 1.10 in 2023, the forecasted data projects a decline to 1.01 in 2024, further lowering to 0.91 in 2025, 0.81 in 2026, 0.72 in 2027, and 0.62 in 2028. This trend illustrates a steady improvement in the quality of loans.

Year-on-year variation:

• 2024 vs 2023: -8.18%
• 2025 vs 2024: -9.90%
• 2026 vs 2025: -10.99%
• 2027 vs 2026: -11.11%
• 2028 vs 2027: -13.89%

The compound annual growth rate (CAGR) over the forecast period from 2023 to 2028 stands at -9.55%, indicating a consistent yearly reduction in NPLs.

Future trends to watch for:

• Impact of macroeconomic factors on loan performance
• Government policies and regulations affecting banking and finance
• Technological advancements improving risk assessment and loan monitoring