The debt watcher affirmed the two banks鈥� 鈥淏aa2/P-2鈥� long- and short-term foreign and local currency deposit ratings and 鈥渟table鈥� outlooks, it said in separate statements late on Wednesday.

Also affirmed were their counterparty risk ratings and assessments, baseline credit assessments, and the ratings for their respective medium-term note programs.

For BDO, Moody鈥檚 said the affirmed ratings reflect its strong asset quality, funding and liquidity, adding that it has ample buffers and good profitability.

鈥淭he bank鈥檚 funding and liquidity will remain its key strengths, with a robust and dominant deposit franchise supporting its very high deposit market share, and hence access to lower cost of funding and high current and savings account deposit ratio of 68% as of end-2025. Its less-stable funds ratio stood at an adequate 23.1% as of end-2025, while its core banking liquidity ratio was 20.6% as of the same date,鈥� it said.

It added that BDO鈥檚 nonperforming loan (NPL) ratio is likely to stay stable this year, still supported by write-offs on its fast-growing unsecured retail loans.

Meanwhile, its credit costs may stay elevated amid the surge in the share of consumer loans in its portfolio over the past two years, and amid preemptive provisioning as macroeconomic conditions become more challenging.

鈥淭he bank鈥檚 high concentration to large corporate loans and long-dated investment securities will also pose risks to its asset quality.鈥�

The credit rater sees BDO鈥檚 return on assets (RoA) to range from 1.4% to 1.5% this year as net interest margin (NIM) stabilizes, even while credit costs and operating expenses remain elevated.

Meanwhile, capitalization will stay adequate, although capital generation may grow slower as credit demand eases. Widening government bond yields could also hit its Tier 1 ratio.

Moody鈥檚 said BDO鈥檚 deposit ratings will depend largely on the movement of the Philippines鈥� sovereign rating as they are at the same level.

Meanwhile, a significant deterioration in its asset quality, which could drive up credit costs and hit its earnings, as well as increased risks from related party lending or loan concentration, could lead to a downgrade.

BPI
For BPI, Moody鈥檚 said it credit strengths are strong profitability, adequate capital, healthy liquidity, and stable funding supported by its solid deposit franchise.

These balance out its weakening loan quality as it continues to expand its higher-risk retail lending businesses and amid 鈥渃hallenges鈥� in its corporate segment after it reported in the first quarter that 鈥渟everal corporate loans slipped into problem loans due to challenges unrelated to the conflict in the Middle East.鈥�

It said the bank鈥檚 problem loan ratio and credit costs have increased amid the seasoning of its retail loans and heightened macroeconomic risks.

鈥淲e expect the retail segments to experience further strain in 2026, given the shrinking financial buffers of retail borrowers amid higher inflation in the Philippines,鈥� Moody鈥檚 said.

鈥淎lthough the bank has tightened credit underwriting and plans to moderate its retail loan growth, we expect the bank鈥檚 asset risks to remain elevated, with credit costs normalizing closer to the 0.9% range in 2026. The bank鈥檚 high concentration to large corporate loans and long-dated investment securities will also pose risks to its asset quality.鈥�

Meanwhile, the bank鈥檚 NIM will likely continue expanding in line with growth in its retail loan, while its RoA could decline slightly due to elevated credit costs.

鈥淎dditionally, lower repayment capacities of retail borrowers amid higher inflation will add further upside on the bank鈥檚 credit costs.鈥�

The debt watcher said BPI鈥檚 funding and liquidity will remain strong thanks to its strong deposit base.

鈥淎lthough the bank鈥檚 current and savings account deposit ratio has declined to 60% as of March 2026, from 63% the year before, the bank鈥檚 cost of funds remains one of the lowest among its domestic rated peers. As of end-2025, the bank鈥檚 less-stable funds ratio stood at a good level of 17.1% and its core banking liquid assets ratio was 21.7%.鈥�

Like BDO, BPI鈥檚 ratings will hinge on the movement of the Philippines鈥� sovereign rating as they are at the same level.

Downgrades could be possible if its solvency metrics, including its asset quality and liquidity ratios, worsen significantly. 鈥� Aaron Michael C. Sy

This came after the resignation of Philippine Savings Bank President Jose Vicente L. Alde as Metrobank director to focus on the thrift bank.

鈥淗is invaluable contributions over the past four years have been instrumental to Metrobank鈥檚 sustained success. He will continue to provide strategic leadership within the Metrobank Group,鈥� Metrobank said.

Meanwhile, Mr. Sison, who retired from Sun Life Philippines earlier this year, is the fifth independent director to serve Metrobank鈥檚 board.

鈥淎 renowned veteran of the insurance industry, Mr. Sison鈥檚 appointment underscored the bank鈥檚 commitment to upholding the highest standards of corporate governance.鈥�

Mr. Sison was also appointed as chairman of the board鈥檚 Audit Committee and a regular member of the Risk Oversight Committee.

Meanwhile, Metrobank鈥檚 board appointed Vice Chairman Francisco C. Sebastian as director of the Trust Committee, a seat previously held by director Anthony Paul C. Yap.

Mr. Sebastian鈥檚 previous role in the IT Steering Committee has now been assumed by Metrobank President and Director Fabian S. Dee.

Metrobank鈥檚 attributable net income grew by 2.68% year on year to P12.603 billion in the first quarter. Its shares closed at P63 apiece on Thursday, down 35 centavos or 0.55% from Wednesday鈥檚 finish. 鈥� Aaron Michael C. Sy

鈥淥ne of the things that we would really like to do is issue a blue bond which is linked to water-related investments. Not only because we put the effort to get the framework in, but also because we think that there is demand from some of the vendors. As we market the bond, we create awareness for some of these projects,鈥� BPI Chief Financial and Sustainability Officer Eric M. Luchangco said at a media briefing on Thursday.

The bank has over P50 billion in assets it can finance under the blue bond framework, he added.

However, higher interest rates due to the Middle East conflict have made the bank hesitant about tapping the debt market.

鈥淚 think the deeper issue potentially preventing or affecting the timing of the issue is probably the global circumstances. If you had asked us in February, for example, whether we thought the market would be open for us to do an issue, I think the answer would have been, 鈥榳e don鈥檛 have any issues there.鈥� But the Middle East conflict really created some more volatility in the market. And I mean, I鈥檓 sure you鈥檝e seen interest rates swing very high,鈥� he said at the sidelines of the same briefing.

The bank could also tap other funding options to refinance a coming maturity in the third quarter, such as how it issued a green bond last year with the International Finance Corp. (IFC) as the sole subscriber that invested $250 million to help boost climate finance in the country.

鈥淲ith IFC, it was not a widespread bond, but basically a corporate note that we bought.

If that turns out to be more efficient for us, then we may go down that route again. Or if the public market seems more efficient for us, then we may go down that route,鈥� Mr. Luchangco said.

The bank in June last year also raised P40 billion from 1.5-year SINAG or Supporting Inclusion, Nature, and Growth Bonds at 5.85% per annum, well above the P5-billion target.

He added that the bank is not under any pressure to issue bonds as market conditions remain uncertain.

BPI鈥檚 net income rose by 1.7% to P16.92 billion in the first quarter. Its shares went up by P2.4 or 2.76% to close at P89.50 each on Thursday. 鈥� Aaron Michael C. Sy

The state pension fund鈥檚 net income stood to P43.6 billion in the period from P16.1 billion in the same period last year.

This was already over 30% of its full-year profit target of P130.91 billion.

Insurance income, which is the GSIS鈥� primary revenue line, increased by 9.16% to P56.6 billion in the January-to-March period from P4.75 billion a year ago.

This came amid higher social insurance contributions as collections were supported by its growing member base and higher agency remittances.

Meanwhile, investment income from financial assets jumped to P27.4 billion from P1.2 billion, supported by gains from equity valuations and favorable foreign exchange movements.

Loan income stood at P10.7 billion in the first quarter amid higher disbursements across Ginhawa Loan facilities.

GSIS said the Ginhawa Solar Energy Loan contributed P890 million in its first week of operations after the state pension fund started accepting applications on March 25.

As a result, gross income stood at P95.8 billion in the quarter, up 43.83% from P66.6 billion a year ago.

Meanwhile, the pension fund鈥檚 total expenses went up by 3.3% year on year to P52.1 billion from P50.5 billion. It said 95% of total expenses were paid claims and benefits, which rose by 4.73% to P49.5 billion in the first quarter amid higher pension payments.

The average monthly old age pension rose to P18,874.58 in 2026 from P17,809.10 in 2025, it added.

鈥淭he fund grew this quarter and paid out more than it did a year ago. That is the baseline we hold ourselves to every reporting period,鈥� GSIS President and General Manager Jose Arnulfo 鈥淲ick鈥� A. Veloso said in a statement.

Administrative costs, covering personnel services and operating expenses, stood at P2.44 billion. This made up about 4.7% of total expenses, well below the 12% ceiling set by the GSIS Charter.

鈥淎dministrative costs at 4.7% means more than 95 centavos of every peso in expenses went directly to members,鈥� Mr. Veloso said.

GSIS booked total assets amounting to P2 trillion at end-March, up from P1.96 trillion as of end-2025.

This puts the fund on track to reach P2.1 trillion in total assets by the end of the year.

鈥淏ased on the fund鈥檚 latest actuarial study, the GSIS has a life extending to 2058, ensuring that benefits remain secure for the next generation of government workers and retirees,鈥� it said. 鈥� Aaron Michael C. Sy

The currency closed at P61.581 versus the dollar, gaining 15.9 centavos from its P61.74 finish on Wednesday, according to Bankers Association of the Philippines data posted on its website.

The local unit opened Thursday鈥檚 session sharply stronger at P61.50 per dollar. Its intraday best was at P61.45 against the greenback, while its weakest showing was at P61.665.

Dollars traded increased to $1.58 billion from $1.54 billion in the previous session.

鈥淭he peso appreciated after US President [Donald J.] Trump hinted about an impending end to the US-Iran conflict following his favorable remarks on the Iranian authorities in relation to their diplomatic talks,鈥� a trader said in an e-mail.

The currency was also supported by the downward correction in global crude oil prices following Mr. Trump鈥檚 remarks, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

For Friday, the trader said the peso could continue to strengthen amid market optimism over an eventual resumption of oil trade along the Strait of Hormuz.

The trader sees the peso moving between P61.45 and P61.70 against the dollar on Friday, while Mr. Ricafort expects it to move between P61.45 and P61.65.

The US dollar firmed on Thursday but stayed below a six-week peak as hopes that Washington was nearing a deal with Tehran to end the war in the Middle East capped further rises, Reuters reported.

Mr. Trump on Wednesday said negotiations with Tehran were in the final stages, while also warning of further attacks if Iran does not agree to a deal.

The dollar, often a safe haven for investors, firmed 0.1% against the yen to 楼159.060 after falling for the first time in eight sessions against the yen on Wednesday.

Bank of Japan policy board member Junko Koeda added a measure of support for the yen with hawkish comments on Thursday, saying in a speech that the central bank needs to continue to raise rates with underlying inflation already around a 2% target.

The euro was 0.2% down at $1.160050, after dipping on Wednesday to its weakest level since April 7 at $1.1583 before bouncing back.

The dollar index, which measures the currency against the euro, yen and four other rivals, rose 0.2% to 99.295, down from a peak of 99.472 on Wednesday, the strongest level since April 7.

鈥淭he 鈥榮afe haven鈥� flows reversed because of positive news about the Iran war,鈥� wrote Joseph Capurso, head of FX at Commonwealth Bank of Australia, in a client note.

At the same time, 鈥渨hile the US has domestic political incentives to seek peace, we would not be surprised if President Trump chooses military escalation to gain leverage in negotiations,鈥� he said.

Market focus has been on the potential inflationary impact of higher energy prices as the Strait of Hormuz remains largely closed to shipping.

In a note, Commerzbank FX analysts said many central banks may label the inflation shock as transitory should the Strait open in the next few days, but this would be incorrect as it does not take into account loss of purchasing power.

鈥淐onsequently, currencies are likely to benefit in countries where the central bank is slower to speak of transitory price spikes but may nevertheless tighten monetary policy,鈥� they wrote.

Notes from the Federal Reserve鈥檚 April meeting, published on Wednesday, revealed officials鈥� intensifying concerns about inflation, with a growing number open to the possibility that they may need to raise interest rates.

Elsewhere, the Australian dollar declined following a surprise rise in the unemployment rate to the highest since 2021, which reduced the case for higher interest rates.

Bitcoin softened a fraction to around $77,603.16. 鈥� Aaron Michael C. Sy with Reuters

鈥淢anish is a proven insurance leader who combines strategic clarity with disciplined execution,鈥� Manulife Philippines President and CEO Rahul Hora said in a statement on Thursday.

鈥淗is track record in agency development and digital transformation, along with his strong culture-building leadership, will help us accelerate our growth ambitions, strengthen our competitiveness, and create even more value for our customers and distribution partners in the Philippines.鈥�

Mr. Sangal will report directly to Mr. Hora and will work on the insurer鈥檚 priority transformation and business initiatives. These include advancing technology and artificial intelligence (AI) innovation and expanding its corporate solutions, among others.

鈥淚鈥檓 honored to take on this role and to partner with our talented teams across Manulife Philippines,鈥� Mr. Sangal said. 鈥淏acked by 119 years of rich understanding of the Filipino customer, we have an exciting opportunity to scale our agency strength, enhance customer engagement through data, digital, and AI, and bring innovative and market-leading health and life protection solutions 鈥� making decisions easier and lives better for more families in the Philippines.鈥�

Prior to his appointment to the post, he was chief agency officer at Manulife Vietnam for over three years.

Latest Insurance Commission data showed Manulife Philippines鈥� premium income stood at P14.39 billion in 2025, while net income was at P1.97 billion. 鈥� A.M.C. Sy

What might be a more useful approach is to focus on clear, discrete issues.

A panel discussion titled 鈥淵ou Prompt It, You Own It? Intellectual Property in the AI Era,鈥� conducted last March during The Legal 500 GC Summit 2026, tried to do just that. Despite the shortness of the session, the panel members were able to identify key legal issues arising from the impact of AI use on intellectual property (IP) and set out specific views under current law.

I am sharing some of the talking points below:

1. What is the core IP problem with AI?

It was pointed out that the foundational idea of IP law is that intellectual works are created by humans, and AI challenges that concept. Thus, the questions that need to be confronted: Are AI-generated works even protectable? Who owns AI-generated works? How do you enforce IP rights over AI-generated works?

2. Who owns AI-generated work under IP law?

So who owns AI-generated work? Resolving this question may depend on what kind of asset is involved. A panel member noted that AI-generated trademarks should be registrable because Section 121 of the Intellectual Property Code of the Philippines (IP Code) does not distinguish between trademarks that are created by humans and those generated by AI. Copyright, on the other hand, more readily triggers the IP law notion that only humans can create, and indeed the IP Code provides that only natural persons (i.e. 鈥渁uthors鈥�) can be owners of copyrighted works.

3. What are some of the IP risk mitigants in using AI?

A common (and probably the most practical) approach to dealing with AI-triggered risks for IP is documentation 鈥� whether it is about setting out who owns what (e.g., whatever is produced by developers for a client) or seeking representations of non-infringement. Of course, the context for the protection鈥檚 operation is defined 鈥� parties contractually dealing with each other, and essentially assigning risk via agreement. However, the utility of the protection can depend on whether there can be meaningful recourse against an infringing party.

4. How would enforcement play out when your AI produces infringing content?

One of the panel members, Intellectual Property Office of the Philippines (IPOPHL) Bureau of Legal Affairs, Director Christine V. Pangilinan-Canlapan, highlighted the dispute resolution mechanisms available at the IPOPHL, such as mediation through its Alternative Dispute Resolution Services (ADRS), as well as arbitration. Director Canlapan also pointed out that the Bureau of Legal Affairs of the IPOPHL, as a quasi-judicial entity, would likely follow the Supreme Court鈥檚 lead pursuant to the Supreme Court鈥檚 new governance framework on the use of 鈥渉uman-centered augmented intelligence.鈥�

5. What issues about AI and IP should rightly keep in-house counsel up at night?

The answers from the panel? It is crucial that businesses be transparent to the IPOPHL about their use of AI when seeking to register their IP.

General counsels should carefully vet the AI solutions that they will be using.

It is important that business teams understand that IP registrations and recordals are privileges and that companies should use their IP assets in a responsible way.

In-house counsels should be attentive and agile, and know where the risks are, particularly where AI is used in their IP.

Taking the cue from this panel, business teams that want to get a more useful, practical handle on AI should try to first identify which specific areas (labor, consumer protection privacy, special regulations) when juxtaposed with AI, worries them the most, and then seek more in-depth legal discussion about that juxtaposition.

Aside from Director Canlapan, the other panel members were Kristian Nico Calugay Acosta (Chief Legal Officer and General Counsel of the CTI Group), William Chino T. Adasa (Enterprise Account Director of Amazon Web Services), and Ma. Patricia B. Paz-Jacoba (Partner at SyCip Salazar Hernandez & Gatmaitan). Her colleague, Leo Abot, moderated the panel.

The views expressed herein are the author鈥檚 own and do not necessarily reflect the opinion of her office as well as FINEX.

Rose Marie M. King-Dominguez is a senior partner of SyCip Salazar Hernandez & Gatmaitan and the head of the firm鈥檚 Special Projects Department. She is a FINEX member.

According to a draft circular, the central bank is eyeing a phased implementation of the Philippine Financial Reporting Standards (PFRS) S1, or the General Requirements for Disclosure of Sustainability-related Financial Information, and S2, or Climate-related Disclosures, starting next year for universal and commercial banks.

鈥淪ubsequent global and local developments have underscored the need for more robust and consistent sustainability reporting, as climate change increasingly poses risks to financial stability and stakeholders demand more reliable and decision-useful information,鈥� the BSP said in an explanatory note.

鈥淭he amended requirements aim to enhance the quality, consistency, and comparability of sustainability-related information disclosed by banks, strengthen market discipline, and support stakeholders in making well-informed assessments of sustainability-related risks, opportunities, and long-term resilience,鈥� it said. 鈥淢oreover, the amendments promote better integration of sustainability-related risks and opportunities into banks鈥� corporate governance and risk management framework.鈥�

The implementation schedule will depend on the banks鈥� size and market capitalization, which will follow the principle of proportionality.

Under Tier 1, publicly listed banks holding over P50 billion in market capitalization as of Dec. 31, 2025 or as of listing date must comply with the new reporting standards starting 2027.

Meanwhile, Tier 2 covers publicly listed banks with P3 billion to P50 billion in capital and nonlisted large banks with P50-billion capital, with reporting beginning 2028.

Lastly, under Tier 3 are publicly listed lenders with capitalization under P3 billion, nonlisted large banks with less than P50 billion in capital, and listed banks whose debt securities are only listed on the Philippine Dealing & Exchange Corp. and without listed equity securities on the Philippine Stock Exchange. Their first reporting will be in 2029.

Based on the proposed circular, all banks may submit their reports later than their related audited financial statements for the first reporting year.

These may be filed either with their next second-quarter or half-year interim financial statements, or within nine months from the end of the reporting period if they do not issue interim financial statements.

The BSP will also grant banks transitory relief until the initial implementation phase next year, where they may observe the minimum disclosure requirements currently applicable to those not covered by the PFRS S1 and S2.

They were told to update their internal processes, data systems, and disclosures before implementation starts.

Meanwhile, additional implementation phases will be set for other financial institutions such as nonlisted thrift, rural, cooperative, digital, and Islamic banks.

However, they will be required to include related information in their annual reports, such as their overall sustainability strategic objectives and risk appetite; overview of their environmental and social (E&S) risk management system and its interactions with credit, operational, and/or liquidity risk management; their products or services aligned with sustainable finance frameworks; and the breakdown of their E&S risk exposures by industry, sector, or location.

The BSP鈥檚 proposed issuance comes as the Securities and Exchange Commission (SEC) released a memorandum circular last year that sets similar rules for publicly listed companies and large nonlisted entities.

It said that banks already covered by this measure may submit the same sustainability report to both the BSP and the SEC, which may be filed together with their annual report. 鈥� Katherine K. Chan

Bids for the term deposit facility (TDF) amounted to P138.544 billion, exceeding the P90 billion in seven-day papers placed on the auction block but below the P146.465 billion in tenders recorded for the same volume auctioned off last week.

This was equivalent to a bid-to-cover ratio of 1.5394 times, lower than the 1.6274 ratio in the previous auction.

Still, the central bank made a full award of its offer.

Accepted yields for the one-week papers were from 4% to 4.482%, a tad narrower versus the 4% to 4.4888% margin logged a week ago. With this, the average accepted rate climbed by 0.5 basis point week on week to 4.4432% from 4.4382%.

The central bank uses the TDF and BSP bills to mop up excess liquidity in the financial system and better guide market yields towards its policy rate.

The BSP last auctioned off both the seven-day and 14-day deposits on Oct. 29. Meanwhile, it has not offered 28-day term deposits for over five years to give way to its weekly offerings of securities with the same tenor.

In its latest Monetary Policy Report, the central bank said it limited its TDF offerings to a single tenor to rationalize liquidity operations and focus on tenors that would boost monetary policy transmission.

As of mid-February, the BSP鈥檚 market operations have absorbed P1.2 trillion in excess liquidity from the market, with 9% of this being siphoned off via the TDF. 鈥� Katherine K. Chan

The currency closed at P61.74 a dollar, gaining a centavo from Tuesday鈥檚 record-low finish of P61.75, according to Bankers Association of the Philippines data posted on its website.

The local unit opened Wednesday鈥檚 session stronger at P61.73 per dollar. It traded within a narrow range as its intraday best was at just P61.67 against the greenback, while its weakest showing was at P61.75.

Dollars traded rose to $1.54 billion from $1.21 billion in the previous session.

The peso rose a tad as the market was on wait-and-see mode about developments in the Middle East, a trader said by phone.

鈥楳arket players traded generally cautiously awaiting FOMC (Federal Open Market Committee) meeting minutes that will be released overnight,鈥� the trader added.

The peso was broadly steady following the downward correction in global crude oil prices, Rizal Commercial Banking Corp, Chief Economist Michael L. Ricafort said in a Viber message.

He added that the central bank may have intervened during the session again to support the currency.

For Thursday, the trader said the peso may stay rangebound between P61.50 and P61.75 amid a lack of leads, while Mr. Ricafort sees it ranging from P61.55 to P61.75.

The US dollar hit a six-week high on Wednesday as investors came to terms with the possible need for higher interest rates to tackle inflation resulting from the Iran war, Reuters reported.

The uncertainty over when the conflict may end has fanned inflation fears and triggered a global bond sell-off, with the yield on the US 30-year Treasury bond hitting its highest level since 2007.

President Donald J. Trump said the United States may need to strike Iran again but suggested Tehran wants a deal to end the war that has all but closed the key Strait of Hormuz, sending energy prices soaring and roiling markets.

The dollar index, which tracks the currency against six peers, rose 0.1% to its highest since April 7 at 99.47. The index is up more than 1.3% in May due to safe-haven demand and markets pricing in chances of the Federal Reserve hiking interest rates by the end of the year.

Brent crude futures were down 1.1% to $110 per barrel, but remained more than 50% higher than in late February before the war began. 鈥� Aaron Michael C. Sy with Reuters

Net interest income climbed by 20.4% to P2.8 billion backed by steady lending growth, it said in a statement on Wednesday.

Net loans stood at P155.5 billion, expanding by 11.5% year on year, driven mainly by the bank鈥檚 salary loan and business loan segments.

On the funding side, total deposits were at P191.4 billion, up by 12% from the previous year.

CBS booked total assets of P217.3 billion at end-March, backed by its growing customer base.

Asset quality remained stable as the bank posted a nonperforming loan (NPL) ratio of 2.9%. 鈥淭he bank鈥檚 NPLs continue to be adequately covered by loan-loss allowances, reflecting CBS鈥� conservative provisioning stance,鈥� it said.

鈥淭hese are interesting times, but a young bank like CBS, can be more agile and can adapt to the changing environment faster. Already, CBS is establishing itself in the thrift banking space as a significant player. Thanks to its mix of affordable and readily available loan products, and its competent and driven workforce which is in tune with the needs of the bank鈥檚 target market,鈥� CBS Chairman Ricardo R. Chua said.

For the rest of the year, the bank said it will continue to expand its higher-yielding loan segments and its low-cost deposit base, deepen customer relationships, and maintain its operational efficiency through sustained investments in both physical and digital capabilities.

鈥淐BS prides itself in maintaining strong relationships with its customers, and they have rewarded the bank with loyalty. There is no substitute for trust and dependability, and the bank provides that in spades whatever the circumstance,鈥� CBS President James Christian T. Dee said.

The bank ended the first quarter with 175 branches, 34 automatic payroll deduction (APD) lending centers, 73 APD branch-lite units, and more than 3,000 employees.

In April, it converted 10 branch-lite units into full-service branches. It added that it is set to open an additional five branches before the end of the second quarter, which would bring its network to 190 branches.

鈥淲e at CBS are eager to provide our 鈥楨asy Banking鈥� services nationwide, and that is why we continue to expand our branch network despite accelerating inflation. We are confident in the resilience of the Philippine economy, and we recognize the ingenuity and resourcefulness of the Filipino entrepreneur will require financial support from the banking sector to ensure sustainability as well as prosperity for their endeavors,鈥� CBS Senior Vice-President and Retail Banking Group Head Jan Nikolai M. Lim said.

Its listed parent听 Chinabank saw its net profit increase by 4% to P6.8 billion in the first quarter, backed by strong growth in its core businesses and stable asset quality. 鈥� A.M.C. Sy

The transition is part of the efforts to strengthen alignment across the Asialink Group to 鈥渆nhance operational synergies, and ensure that its organizational structure remains responsive to increasing scale and complexity, positioning the Group to more effectively capture emerging opportunities in the evolving financial services landscape…,鈥� it said in a statement on Wednesday.

The group has appointed former GDFI President and Chief Executive Officer (CEO) Patricia P. Palacios as new Asialink Group Deputy CEO.

鈥淚n this capacity, she will play a critical role in strengthening cross-functional collaboration, identifying growth opportunities, and advancing innovation initiatives that will further reinforce the group鈥檚 leadership in the financial services industry,鈥� it said.

She will work with Asialink Group CEO Robert B. Jordan, Jr. and fellow Group Deputy CEO Eillen B. Mangubat.

Meanwhile, GDFI will now be led by its new President and CEO Samuel Z. Cari帽o, who held the same posts at AFC. Mr. Cari帽o was previously GDFI鈥檚 deputy chief operating officer for sales.

鈥淭he Board of Directors expresses full confidence in Mr. Cari帽o鈥檚 leadership, citing his extensive expertise in people development, data analysis, and sales and marketing across various nonbanking sectors,鈥� it said. 鈥淲ith his proven track record, he is well-positioned to lead the company into its next phase of growth, strengthen operational capabilities, and drive innovation in an increasingly competitive financial services environment.鈥�

Taking over his post at AFC is Ana Katrina C. Ba帽ez, the company鈥檚 general manager for its Commercial and Consumer Loans (CCL) division in Visayas and Mindanao. Daisy D. Suba, general manager for the CCL Luzon division, will serve as Deputy CEO.

鈥淭hese leadership transitions mark an important step in strengthening the Asialink Group as we continue to position the organization for sustained growth and long-term success. With a strong and capable leadership team in place, we are confident in our ability to drive innovation, enhance operational excellence, and further expand our impact in the financial services industry,鈥� Mr. Jordan said. 鈥� AMCS

The Bureau of the Treasury (BTr) rejected all bids for the reissued 10-year bonds it auctioned off, even as total demand reached P33.675 billion, above the P30-billion on offer.

With this, the total outstanding volume for the series remained at P199.5 billion, the Treasury said in a statement after the auction.

Had the government made a full P30-billion award of the reissued bonds, which have a remaining life of seven years and three months, the average rate would have been at 7.915%. This was 127.2 basis points (bps) higher than the 6.643% fetched for the series鈥� last award on April 21 and 128.9 bps above the 6.625% coupon for the issue.

It was 30.3 bps higher than the 7.612% fetched for the same bond series and 31.1 bps above the 7.604% quoted for the seven-year paper 鈥� the benchmark tenor closest to the remaining life of the issue 鈥� at the secondary market before Tuesday鈥檚 auction, based on the PHP Bloomberg Valuation Service Reference Rates data provided by the BTr.

The government chose to turn down all tenders as bid yields surged well above comparable secondary market rates, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

鈥淚nvestors have been waiting for the peak in bond yields before taking investment positions to maximize the yield to be locked in amid higher inflation and inflation expectations recently as the Strait of Hormuz remains closed,鈥� he said.

Higher global oil prices due to the prolonged war have also pushed up bond yields worldwide, Mr. Ricafort said.

鈥淭he BTr fully rejected all the bids for the [reissued bonds] as the bids were too high, even on the low end,鈥� the first trader said in a text message. 鈥淭he BTr finally drew the line as the bids earlier were deemed too high. Subdued market activity and steady upward yield movement led to this.鈥�

鈥淭hat rejection is long overdue as it is one of the reasons why bond yields have been increasing. Investors think that the BTr has been aggressive in awarding bids in the past couple of auctions,鈥� the second trader added.

On Tuesday, bonds steadied following a steep sell-off after US President Donald J. Trump paused a planned attack on Iran and claimed there was a good chance of a nuclear deal, sending oil prices lower, Reuters reported.

Mr. Trump said on Monday he had paused an attack against Iran to allow time for negotiations to take place on a deal to end the war, after Tehran sent a new peace proposal to Washington.

He subsequently said there was a 鈥渧ery good chance鈥� the US could reach an agreement with Iran to prevent Tehran from obtaining a nuclear weapon.

Investors remained cautious after being rattled in the previous session by a weekend drone strike in the United Arab Emirates.

Brent crude futures fell nearly 2% to $109.94 a barrel on the back of Mr. Trump鈥檚 comments, while US crude was down 1.54% to $106.99 per barrel, though both remained more than 50% above their prewar levels.

The fall in oil prices helped stem a steep sell-off in global bonds on Tuesday, although worries remain about any lasting inflationary shock from the Iran war.

Yields on the benchmark 10-year US Treasury note eased from a more than one-year high to 4.6034% in Asian trade, and the two-year yield was down slightly to 4.0674%.

Overnight, G7 finance ministers acknowledged mounting concerns over public debt and bond market volatility as they met in Paris.

Markets are now pricing in rate hikes from major central banks this year on expectations policymakers will have to tighten policy to combat a resurgence in inflation driven by higher-for-longer energy prices.

Philippine headline inflation surged to 7.2% in April from the 4.1% in March and 1.4% a year ago as the global oil shock pushed up prices of food and utilities. This was the fastest print in over three years or since the 7.6% recorded in March 2023.

April also marked the second straight month that the consumer price index was above the Bangko Sentral ng Pilipinas鈥� (BSP) 2%-4% tolerance band.

For the first four months, inflation averaged 3.9%.

The Monetary Board on April 23 delivered its first hike in over two years, raising the policy rate by 25 bps to 4.5% in a preemptive move to temper the spillover effects of rising oil prices and ensure inflation expectations remain anchored.

BSP Governor Eli M. Remolona, Jr. has also left the door open to further tightening via a succession of modest hikes to help combat surging prices.

The BTr wants to raise P268 billion from the domestic market this month, or P128 billion via Treasury bills and P140 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.61 trillion or 5.3% of gross domestic product this year. 鈥� A.M.C. Sy with Reuters

In a memorandum signed by BSP Deputy Governor Lyn I. Javier, the BSP said rural and cooperative banks will not be penalized for reporting violations for their third-quarter 2025 submissions under the Enhanced Comprehensive Credit and Equity Exposures Report of 2023 (COCREE 2.0).

鈥淎ll rural banks and cooperative banks (RCBs) shall be eligible to a grace period from penalties for reporting violations covering the live maiden reporting period (for Sept. 30, 2025) of COCREE 2.0,鈥� the central bank said.

Banks that complied early with the maiden reporting period will be given even longer grace periods to submit upcoming reports this year.

RCBs that submitted their exposures reports on or before the live maiden reporting due date on Nov. 28 last year will be provided additional grace period covering the reporting periods ending Dec. 31, 2025, as well as March 31 and June 30 this year, the BSP said.

Those that complied after the due date but before the pilot testing in the BSP鈥檚 Reporting Management System (BRMS)-COCREE 2.0 Sandbox ended on Jan. 30 are allowed a grace period for the Dec. 31, 2025 reporting period.

However, the central bank clarified that all no-penalty windows are only valid for RCBs that 鈥渞emain actively engaged鈥� in submitting their reports through the BRMS Live Module.

According to the memorandum, RCBs have until May 26 to submit their quarterly report for the period ending Dec. 31, 2025 and until June 30 for reports covering the March 31 period.

Meanwhile, for reporting periods ending June 30 and onwards, banks must comply with the COCREE 2.0 live implementation within 25 business days after each reference period.

The BSP fully implemented the COCREE 2.0 in June last year to monitor the credit and equity exposures of universal and commercial banks, thrift banks, rural banks, cooperative banks, digital banks, nonbank financial institutions with quasi-banking functions, and trust corporations.

The COCREE is a collection of credit and equity exposures that forms part of the central bank鈥檚 surveillance of emerging risks in supervised entities and the financial system.

The report compiles a monthly average of 31.7 million records. This is composed of granular borrower demographics (11.3 million records) and credit and equity exposure details (20.4 million records), which account for about 95% of the outstanding loan portfolio of the banking system.

The enhanced reporting system is designed to capture granular information on borrowers and counterparties by addressing critical data gaps, and also allows the BSP to conduct an in-depth analysis of borrower performance and behavior, including the portfolio of retail consumers and micro and small borrowers. 鈥� Katherine K. Chan

The currency ended at its record low of P61.75, unchanged from Monday鈥檚 finish, according to Bankers Association of the Philippines data posted on its website.

The local unit opened Tuesday鈥檚 session stronger at P61.60 per dollar. Its intraday best was at P61.55 against the greenback, while its low was its closing value of P61.75.

Dollars traded rose to $1.21 billion from $1.001 billion in the previous session.

The peso was steady as it was supported by possible intervention from the Bangko Sentral ng Pilipinas (BSP), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP has said that it intervenes in the foreign exchange market to prevent sharp swings but does not have a target level for the currency.

鈥淭he peso closed unchanged amid lingering uncertainty over a potential US-Iran deal,鈥� a trader said in a Viber message.

For Wednesday, the trader said the peso could recover against the greenback on potential profit taking.

The trader sees the local unit moving between 61.50 and 61.75 per dollar on Wednesday, while Mr. Ricafort expects it to range from P61.60 to P61.80. 鈥� A.M.C. Sy

Under the program, eligible EastWest Bank employees can save and invest in accredited PERA products by giving the lender authority to make contributions on their behalf, together with their own personal contributions.

Participation is voluntary, and the bank is only facilitating awareness and onboarding support.

DragonFi Securities, as a PERA Administrator, will provide guided account setup, investment options, digital tools, and educational resources.

Employees may also choose other accredited PERA Administrators as the program is nonexclusive, EastWest Bank added.

鈥淔inancial empowerment is not only about access to products. It is also about building the knowledge and confidence to plan ahead,鈥� EastWest Bank Chief Executive Officer Jerry G. Ngo said in a press release. 鈥淏y facilitating access to PERA, EastWest is helping employees take a more active role in shaping their long-term financial future.鈥�

The bank added that this forms part of its efforts to promote financial literacy, employee well-being, and long-term financial resilience.

鈥淭his is also in support of the Bangko Sentral ng Pilipinas鈥� (BSP) direction to encourage businesses nationwide to adopt company-sponsored Personal Equity and Retirement Account programs, leveraging enhanced tax incentives under the Capital Markets Efficiency Promotion Act (CMEPA) to invest in their employees while contributing to national economic growth.鈥�

PERA, created under Republic Act No. 9505, is a voluntary retirement saving program meant to supplement retirement benefits from the Government Service Insurance System or Social Security System, as well as private employers.

A private employer may, as part of its compensation package for employees, opt to contribute to the PERA of its employees. This may be reflected in the employer鈥檚 income tax return as a deductible expense from its gross income.

The CMEPA also provides for a 50% additional tax deduction for private employers who contribute an amount equal to or greater than their employees鈥� PERA contributions.

The latest BSP data showed that accumulated PERA contributions reached P571.08 million at end-September 2025, rising by 21.34% year on year from P470.63 million. Bulk of these came from employee contributions (P396.54 million).

Meanwhile, the total number of PERA contributors also went up to 6,334 in the same period from 5,774 a year prior. 鈥� AMCS

The Bureau of the Treasury (BTr) raised only P25.41 billion via the T-bills it auctioned off, below the P30-billion plan, even as total tenders reached P40.68 billion, lower than the P44.861 billion in demand recorded on May 11.

鈥淩esults were mixed in today鈥檚 Treasury bills auction, with the Auction Committee upsizing the awarded bids for the 91-day T-bills to P13 billion, while partially awarding the 182-and 364-day securities,鈥� the Treasury said in a statement.

Broken down, the Treasury borrowed P13 billion via the 91-day T-bills, higher than the original P10-billion plan, as demand for the tenor reached P19.87 billion. The three-month paper fetched an average rate of 5.074%, increasing by 22.4 basis points (bps) from 4.85% last week. Bids accepted had yields ranging from 4.915 to 5.173%.

Meanwhile, the government raised just P8.6 billion via 182-day debt, below the P10-billion offering, even as tenders reached P15.15 billion. The average rate of the six-month T-bill was at 5.894%, surging by 62.4 bps from 5.27% previously. Tenders awarded carried rates from 5.59% to 6%.

For the 364-day securities, the BTr awarded just P3.81 billion, lower than the P10 billion on offer, as the tenor drew just P5.66 billion in demand. The one-year paper fetched an average yield of 6.037%, rising by 31.8 bps from 5.719% last week. Accepted bids had rates from 5.925% to 6.1%.

At the secondary market before Monday鈥檚 auction, the 91-, 182-, and 364-day T-bills were quoted at 4.9111%, 5.2914%, and 5.914%, respectively, based on PHP Bloomberg Valuation Service Reference Rates data provided by the Treasury.

鈥淵ields continue to rise as demand goes down, aligning with the past few weeks鈥� movements. The market continues to remain cautious about the lack of progress in the Middle East conflict,鈥� a trader said in a text message.

The government partially awarded its offer as T-bill yields rose for a fourth straight week due to surging inflation, which supports expectations of further tightening by the Bangko Sentral ng Pilipinas (BSP), which the central bank chief has also signaled, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Price risks continue to grow as the Strait of Hormuz remains shut amid the lack of a peace deal between the United States and Iran, he added.

The Philippines imports over 90% of its oil from the Middle East, making it vulnerable to global price shocks.

Headline inflation surged to 7.2% in April, up sharply from the 4.1% in March and 1.4% a year ago, as the crisis pushed up prices of food and utilities. This was the fastest print in over three years or since the 7.6% recorded in March 2023.

April also marked the second straight month that the consumer price index was above the BSP鈥檚 2%-4% tolerance band.

For the first four months, inflation averaged 3.9%.

On April 23, the Monetary Board hiked benchmark interest rates by 25 bps for the first time in over two years, bringing the policy rate to 4.5%, as the Middle East war has caused its inflation outlook to deteriorate further.

BSP Governor Eli M. Remolona, Jr. has signaled further tightening ahead via 鈥渁 succession of modest rate hikes鈥� to help temper spiraling prices.

On Tuesday, the government plans to raise P30 billion through reissued 10-year Treasury bonds (T-bonds) with a remaining life of seven years and three months.

The BTr wants to raise P268 billion from the domestic market this month, or P128 billion via T-bills and P140 billion through T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at P1.61 trillion or 5.3% of gross domestic product this year. 鈥� Aaron Michael C. Sy

Banks鈥� net profit grew by 2.86% to P104.816 billion in the first three months of the year from P101.903 billion in the comparable year-ago period, according to preliminary data.

The industry鈥檚 bottom line was boosted by the 1.87% year-on-year climb in universal and commercial banks鈥� earnings to P96.257 billion from P94.492 billion. This accounted for the bulk of the sector鈥檚 income for the period.

Thrift banks likewise posted higher net earnings in the first quarter, rising by 11.79% to P5.86 billion from P5.241 billion in the prior year. Rural and cooperative banks鈥� net profit climbed by 6.45% to P3.416 billion from P3.209 billion.

Meanwhile, the digital banking sector鈥檚 combined net loss narrowed by 30.96% to P717.71 million in the period from P1.04 billion a year ago.

Three of six BSP-licensed digital banks, namely, Tonik Digital Bank, Inc., Maya Bank, Inc. and Overseas Filipino Bank, Inc., earlier said they were profitable in the first quarter.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said banks鈥� profit growth is consistent with the Philippine economy鈥檚 continued expansion.

Higher earnings were supported by faster loan growth, which came as companies likely did 鈥渟ome hedging and frontloading of borrowings before interest rates go up further to fund purchases of materials and finished products before inflation goes up further,鈥� he said.

In March, big banks鈥� outstanding loans grew by 10.7% to P14.603 trillion from P13.192 trillion in the prior year. This was the fastest annual increase in seven months.

The banking system鈥檚 net interest income increased by 12.44% year on year to P310.593 billion in the first quarter from P276.229 billion a year ago, BSP data showed.

This came as interest earnings rose by 7.93% year on year to P427.409 billion, while interest expense fell by 2.74% to P116.045 billion.

Meanwhile, the industry鈥檚 non-interest earnings edged down by 0.93% to P60.109 billion in the period from P60.673 billion last year.

This came as banks鈥� other income plunged by 93.56% to P822.071 million from P12.769 billion due to a combined net loss from foreign exchange transactions.

Income from fees and commissions went up by 6.79% to P47.622 billion from P44.594 billion, while trading income stood at P6.216 billion, a turnaround from the P1.169-billion loss in the previous year.

On the other hand, the sector鈥檚 non-interest expenses climbed by 8.73% year on year to P207.731 billion in the first quarter from P191.056 billion.

Banks spent more on compensation, taxes and licenses, fees and commissions, other administrative expenses, and amortization during the period. They likewise incurred higher impairment losses but recorded lower provisioning.

Losses on financial assets widened to P43.495 billion in the period from P29.828 billion a year earlier.

Mr. Ricafort said banks鈥� profitability may come under pressure in the coming months, especially as they become more cautious in their lending activities as the Middle East conflict could affect borrowers鈥� repayment capacity as it pushes up inflation, which may cause central banks to hike rates. This could result in higher nonperforming loans.

The war could also slow domestic demand and economic growth, which would also impact banks鈥� operating environment.

鈥淗igher bond yields could lead to lower trading gains, also amid volatility in the global and local financial markets,鈥� he said.

鈥淗igher interest rates and more cautious lending standards amid slower global and local economic growth prospects could slow down demand for loans and other banking products.鈥澨�

The BSP has said that the war has minimal direct impact on the Philippine banking system as it has ample buffers to weather the crisis, although asset quality risks could emerge in specific areas, specifically fuel- and supply-chain-dependent sectors like transportation, manufacturing, wholesale and retail trade, construction, and utilities. 鈥� Katherine K. Chan

The currency edged down by 2.9 centavos to close at P61.75 a dollar from P61.721 on Friday, according to Bankers Association of the Philippines data posted on its website.

Year to date, the peso has depreciated by P2.96 or 4.79% from its P58.79 finish on Dec. 29, 2025.

The local unit opened the session slightly stronger at P61.69 per dollar and climbed to a high of P61.64 against the greenback. Meanwhile, it closed at its intraday low.

Dollars traded went down to $1 billion from $1.199 billion in the previous session.

The peso sank to a new historic low due to higher US retail sales data and elevated global crude oil prices, the first trader said by phone.

The market remains watchful of domestic political developments, although external factors were the main drivers for the peso鈥檚 latest slide, the first trader said.

The peso was mainly dragged down by oil-related dollar demand 鈥渁nd a market that is becoming more sensitive to domestic uncertainty,鈥� a second trader said in a Viber message.

鈥淭he peso is starting to trade less on valuation and more on sentiment,鈥� the second trader said. 鈥淎t these levels, positioning and momentum also matter, which can exaggerate moves in thin liquidity.鈥�

The Senate convened as an impeachment court on Monday that could decide the future of Vice-President Sara Duterte-Carpio, with a heated battle between two rival political camps set to be front and center in the trial, Reuters reported. It comes against a turbulent political backdrop, just days after chaos and a shootout in the upper house and a potentially decisive change in its leadership, both stemming from the re-emergence from hiding of a pro-Duterte senator wanted by the International Criminal Court.

Meanwhile, the dollar dipped against a range of major currencies on Monday, but held near last week鈥檚 highs, as fresh tensions in the Middle East pushed up global bond yields.

The dollar index was a touch softer at 99.12, having posted its strongest weekly performance in three months last week.

Oil prices climbed on Monday, with Brent crude futures rising more than 1% to over $110 a barrel, after a nuclear power plant in the United Arab Emirates came under attack and efforts to end the US-Israeli war on Iran appear to have stalled.

Demand for the greenback was also supported by expectations of rate hikes from the Federal Reserve, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Further denting risk appetite, a global bond rout deepened on Monday as rising energy prices fanned inflation fears and stoked wagers on rate hikes from global central banks.

Markets are now pricing in a more than 50% chance that the Fed would raise rates by December, according to the CME FedWatch tool.

For Tuesday, the first trader sees the peso moving between P61.45 and P61.75 per dollar, while Mr. Ricafort expects it to range from P61.60 to P61.80.

The second trader said the peso could reach the P62 level in the near term, but sharp swings in both directions are likely. 鈥� Aaron Michael C. Sy with Reuters

The bank鈥檚 net profit went up to a record P3.2 billion for the three-month period from P3.14 billion a year ago, it said in a disclosure to the stock exchange on Monday.

This translated to a return on assets of 3.2% and a return on equity of 19.3%, both down from 3.4% and 22.3% a year ago.

鈥�(O)ur historic-high financial results serve as a powerful validation of our ability to maintain stability and growth in a 鈥榩ermacrisis鈥� environment,鈥� AUB President Manuel A. Gomez said. 鈥淥ur robust internal controls and investment strategies are built to withstand extreme external shocks while delivering world-class service.鈥�

Net interest income climbed by 16.8% year on year to P5.02 billion in the first three months from P4.31 billion. This translated to a net interest margin of 5.3%, up from 5.1% a year ago.

Interest income grew by 11.9% to P6.29 billion from P5.62 billion, which it attributed to its loan portfolio鈥檚 growth, while interest expense declined by 2.16% to P1.28 billion from P1.31 billion amid lower high-cost deposits.

鈥淎UB saw sustained momentum across its core lending and deposit-taking operations,鈥� it said.

The bank鈥檚 loans and receivables grew by 9.4% year on year to P276.2 billion.

On the funding side, total deposit liabilities increased by 8.9% to P335.5 billion. Current and savings account deposits made up 78% of this total, up from 69% a year ago, 鈥渞eflecting a robust and low-cost funding base,鈥� it said.

This translated to a loan-to-deposit ratio of 82.3%, edging up from 82% previously.

Meanwhile, AUB鈥檚 other operating income went down by 7.67% to P1.18 billion from P1.28 billion, mainly due to lower fee earnings and foreign exchange gains.

Service charges, fees and commissions decreased by 14% to P411.3 million. Foreign exchange gains dropped by 9% to P192 million mainly due to fluctuations in the currency market.

As a result, total operating income was at P6.19 billion in the first quarter, up by 10.81% from P5.59 billion a year ago.

Meanwhile, the bank鈥檚 operating expenses rose by 17.39% to P2.22 billion in the first three months from P1.89 billion in the same period last year.

It said it 鈥減roactively鈥� increased its loan loss provisions to P331.29 million from just P65.89 million a year ago.

Cost-to-income ratio improved to 30.4% in the first quarter from 32.6% a year ago.

Meanwhile, the bank鈥檚 nonperforming loan (NPL) ratio stood at 0.44% at end-March, up from 0.38% at end-2025 and 0.4% a year prior.

Its NPL coverage ratio was at 111.2%.

AUB鈥檚 assets stood at P422.52 billion at end-March, growing by 10% from P384.09 billion a year ago.

Total equity stood at P70.76 billion in the first quarter, up by 14.43% year on year from P61.84 billion.

Its capital adequacy ratio rose to 19.28% from 18.19% a year ago, while common equity Tier 1 ratio went up to 18.73% from 17.49%.

鈥淏oth metrics remain comfortably above regulatory requirements, providing the bank with substantial capacity to cushion against macroeconomic pressures and support future expansion,鈥� it said.

AUB鈥檚 shares climbed by 70 centavos or 1.61% to close at P44.10 each on Monday. 鈥� Aaron Michael C. Sy

Customers can choose from different savings amount and tenors to take advantage of the revised rates that took effect on May 15.

The bank鈥檚 online time deposit product offers four placement tiers: P10,000 to P199,999; P200,000 to P999,999; P1 million to P9.999 million; and P10 million and up.

Yields depend on the term length or how long funds are kept with the bank, with the bank offering terms of one to 12 months. Rates per annum range from 4.125% to 5%.

鈥淭he higher rate comes as more people look for secure and practical ways to make their money work harder amid rising costs and growing financial responsibilities,鈥� Metrobank said.

鈥淒esigned for convenience and discipline, Metrobank鈥檚 Online Time Deposit allows customers to set aside funds digitally through the Metrobank App and Metrobank Online, helping them stay committed to their savings goals while earning higher returns.鈥�

This is meant to encourage long-term saving as these funds are separated from those used for daily expenses, it added.

Those who want to open an online time deposit must have Metrobank Online access and an eligible deposit account to serve as the settlement account for their placements.

Customers can manage their investment digitally and make placements at their convenience. 鈥� BVR

RATES of Treasury bills (T-bills) and Treasury bonds (T-bonds) to be offered this week could rise further as investors continue to demand higher returns amid market uncertainty, persistent inflation concerns and expectations of additional interest rate increases.

Yields might continue to climb following the rise in the secondary market amid concerns over the peso鈥檚 weakness and political tensions, said Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

T-bill and T-bond rates could follow the week-on-week increase in the secondary market on weakening sentiment after the peso broke a record low against the dollar and amid political unrest, he said in a Viber message.

The Bureau of the Treasury (BTr) will auction off as much as P39 billion in T-bills on Monday 鈥� P13 billion each in 91-, 182- and 364-day securities.

On Tuesday, the government plans to raise P30 billion through reissued 10-year Treasury bonds with a remaining life of seven years and three months.

Yields on short-term government debt rose sharply in the secondary market on Friday. The 91-day, 182-day and 364-day T-bills climbed to 4.91%, 5.29% and 5.91%, respectively, based on PHP Bloomberg Valuation reference rates published on the BTr website.

Meanwhile, the 10-year bond yield rose to 7.62%, while the seven-year rate climbed to 7.57%.

The peso closed at a fresh record low of P61.721 a dollar on Friday, weakening further from the previous day鈥檚 close.

The local currency has depreciated by nearly 5% against the dollar this year.

Analysts said the peso鈥檚 weakness, driven partly by elevated oil prices linked to the Middle East war, has added to inflation concerns and expectations of tighter monetary policy.

Political turmoil also continued to weigh on market sentiment after the Senate convened as an impeachment court for the trial of Vice-President Sara Duterte-Carpio.

Concerns over the International Criminal Court investigation linked to former President Rodrigo R. Duterte鈥檚 anti-drug campaign have also added to political uncertainty.

A trader said investors remained cautious in the secondary market last week amid growing expectations of further rate hikes by the Bangko Sentral ng Pilipinas (BSP).

The Monetary Board last month raised benchmark interest rates by 25 basis points to 4.5%, the central bank鈥檚 first rate hike since 2023.

BSP Governor Eli M. Remolona, Jr. has since signaled the possibility of further tightening through 鈥渁 succession of modest rate hikes鈥� as inflation risks persist following the oil price shock linked to the Iran war.

Last week, the Treasury raised P27.51 billion from its T-bill auction, below the P32-billion target, despite healthy investor demand.

The average rates for all three tenors rose sharply from the previous auction, reflecting investors鈥� demand for higher yields.

The Treasury bond to be auctioned on Tuesday was last offered in April, when the government raised P20 billion at an average rate of 6.643%.

The government plans to borrow P268 billion from the domestic market this month through T-bills and T-bonds as it seeks to help finance this year鈥檚 budget deficit.

THE PESO could weaken further and test the P62-a-dollar level this week as the unresolved US-Israel war on Iran continues to boost demand for the greenback and drive oil prices higher, while political tensions at home weigh on sentiment.

The local unit closed at a fresh record low of P61.721 a dollar on Friday, weakening by 8.1 centavos from Thursday鈥檚 P61.64 finish, based on Bankers Association of the Philippines data posted in its website.

Its intraday low of P61.73 was also near the previous all-time low of P61.75 recorded on April 30. Week on week, the peso declined by P1.108.

Since the start of the year, the currency has depreciated by 4.75% or P2.93.

A trader said the peso weakened on rising oil prices and stronger US retail data, which supported the dollar.

Reuters reported that the dollar strengthened for a fifth straight session on Friday and was on track for its biggest weekly gain in two months as investors increasingly expected the US Federal Reserve to keep rates elevated or possibly tighten further.

The benchmark 10-year US Treasury yield climbed to its highest level in a year as inflation concerns persisted amid supply disruptions linked to the Middle East war.

The dollar index, which measures the greenback against a basket of currencies, rose to 99.27.

Meanwhile, global oil prices surged further after renewed tensions surrounding the Strait of Hormuz dampened hopes for a ceasefire between the US and Iran.

West Texas Intermediate crude rose above $105 per barrel, while Brent crude climbed past $109.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said local political turmoil also weighed on the peso.

The Senate is set to convene as an impeachment court for the trial of Vice-President Sara Duterte-Carpio following moves in the House of Representatives to remove her from office.

Political tensions also intensified after Senator Ronald 鈥淏ato鈥� M. dela Rosa resurfaced after months in hiding over a possible arrest tied to the International Criminal Court investigation.

The trader expects the peso to test the P62 level this week as the prolonged Middle East war and disruptions in the Strait of Hormuz continue to support higher oil prices and the dollar.

The trader expects the peso to move at P61.50 to P62 a dollar this week, while Mr. Ricafort sees it ranging from P61.40 to P61.90.

Stronger-than-expected US inflation data reinforced expectations that the US Federal Reserve could keep interest rates elevated for longer, adding upward pressure on local yields, analysts said.

Government debt yields, which move opposite to prices, climbed by an average of 34.18 basis points (bps) week on week, based on PHP Bloomberg Valuation Service Reference Rates as of May 15 posted on the Philippine Dealing System鈥檚 website.

Yields rose across the curve, with increases seen in short-, medium- and long-term Treasury securities.

Trading volume for government securities slipped to P15.87 billion on Friday from P17.56 billion a week earlier.

A bond trader said investors continued to demand higher yields as inflation risks intensified following higher oil prices linked to the US-Iran war.

鈥淭he strong demand for government securities is being driven by domestic inflationary concerns and market expectations of a potential BSP rate hike,鈥� the trader said in an e-mailed reply to questions.

The trader added that stronger US inflation also reinforced expectations that the Federal Reserve would keep rates unchanged for an extended period.

Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said rising fuel prices continued to feed into broader inflation pressures.

鈥淭he increase is largely due to the effects of the sharply higher oil, fuel and petroleum prices on the prices of other goods and services or second-round inflation effects,鈥� he said in a Viber message.

Mr. Ricafort added that rising global oil prices and higher US Treasury yields also contributed to the increase in local bond yields.

鈥淚nvestors are waiting for the peak in bond yields before taking positions to lock in higher returns,鈥� he said.

Headline inflation accelerated to 7.2% in April from 4.1% in March, the fastest in more than three years and exceeding the BSP鈥檚 2%-4% target.

In April, the BSP raised benchmark interest rates by 25 bps to 4.5%, its first rate hike in more than two years.

Meanwhile, US consumer inflation rose in April for a second straight month, according to Reuters, reinforcing expectations that the Federal Reserve might keep borrowing costs elevated. 鈥� Abigail Marie P. Yraola

鈥淎mid prevailing economic challenges, the insurance industry remains firmly positioned to meet policyholder needs and deliver on its commitments with stability and resilience,鈥� Insurance Commissioner Reynaldo A. Regalado said in a statement.

The industry鈥檚 combined premium income rose to P140.85 billion in the January-to-March period from P124.48 billion a year earlier, based on preliminary data from the regulator.

Insurance penetration, or the ratio of insurance premiums to gross domestic product, stood at 2.03% as of end-March, matching the level recorded in the third quarter of 2021.

Insurance density, which measures average insurance spending per person, also increased to P1,231.61.

Meanwhile, the industry鈥檚 net income slipped by 1.75% in the first quarter due to higher benefit payments. Total benefit payments climbed to P43.44 billion from P39.01 billion a year earlier.

Despite the decline in earnings, the sector鈥檚 financial position improved, with total assets expanding to P2.65 trillion from P2.48 trillion a year earlier.

Total invested assets likewise increased to P2.37 trillion from P2.19 trillion. 鈥� Aaron Michael C. Sy

The 28-day BSP bills drew P90.884 billion in tenders on Friday, well above the P70-billion offer and higher than the previous week鈥檚 P81.892 billion in bids for the same volume.

This lifted the bid-to-cover ratio to 1.3 times from 1.17 times a week earlier. The BSP awarded its full P70-billion offer.

Accepted rates ranged from 4.6% to 4.715%, slightly narrower than 4.495% to 4.728% a week earlier. The weighted average rate rose to 4.6651% from 4.6483%.

The BSP has not offered 56-day bills since Nov. 3.

The central bank uses its securities and term deposit facility to absorb excess liquidity and guide short-term rates toward its policy rate. BSP bills also help improve price discovery and strengthen monetary policy transmission.

The BSP started weekly issuances in 2020, initially with 28-day bills, later adding 56-day debt in 2023 before scaling back to a single tenor.

As of mid-February, BSP liquidity operations have withdrawn about P1.2 trillion from the financial system, mainly through reverse repurchase operations, term deposits and BSP securities. 鈥� Katherine K. Chan

鈥淲e鈥檙e seeing GDP (gross domestic product) lower than expected, so asset growth will likely be in single digits rather than double digits,鈥� Fernand Antonio Tansingco, Metrobank financial markets sector head, said at a Philippine Stock Exchange event last week

He said higher rates should help profitability, with the bank expecting at least two more 25-basis-point increases this year that could push policy rates above 5%.

Metrobank said it could still meet earnings targets if credit quality holds, noting its loan book remains strong. Net interest margin is expected to rise by just under 5 bps for every 25-bp rate hike.听鈥� AMCS

鈥淪o, in a nutshell, what we鈥檇 like to emphasize is that while the environment has been volatile and difficult to predict, our balance sheet continues to show good growth… We hope that we can continue with the loan growth, although we recognize that if inflation persists longer, there is the risk that we may see growth slowing down at some point. That could also translate into potential challenges for asset quality,鈥� BDO Executive Vice-President and Investor Relations and Corporate Planning Head Luis S. Reyes, Jr. said at the virtual PSE STAR: Investor Day event on Thursday.

鈥淏ut at this stage, we are not seeing that yet.鈥�

BDO鈥檚 gross loans rose by 16% year on year to P3.77 trillion at end-March from P3.26 trillion amid double-digit growth across all market segments, it said last month.

The bank also hopes to sustain the fast growth in its low-cost current account, savings account (CASA) deposits seen in the first quarter. Total deposits rose by 15% to P4.429 trillion as of March from P3.847 trillion. Of this, P2.906 trillion were CASA deposits, up from P2.704 trillion in the prior year.

鈥淗istorically, we were seeing CASA growing in the mid-single digits. What we鈥檙e seeing now is a slightly better growth trajectory. We鈥檙e hoping that this is something we can continue with, given our strategy of opening more branches, complemented by our digital capabilities,鈥� Mr. Reyes said.

Meanwhile, the second half of the year could be 鈥渁 bit more difficult to predict鈥� as forecasts will depend largely on developments in the Middle East and their impact on global oil prices that could stoke Philippine inflation and hit consumer spending.

鈥淪o far, the good news is that consumption… will show positive growth, even though it鈥檚 at a decelerated trend.鈥�

Mr. Reyes added the bank has enough provisions for an expected increase in nonperforming loans due to the conflict, as they already saw an uptick in bad debt in the first quarter as its consumer business continued to grow.

鈥淲e are focusing more on cross-selling our consumer lending to existing bank clients, which we believe is also what is helping us sustain our asset quality where they are today,鈥� he said. 鈥淯sing our data analytics capabilities, we are mining our depositor base, checking how our depositors are actually showing capacity to pay, and therefore could be eligible for additional consumer products.鈥�

BDO will also increase its loan loss provisioning if inflation stays red-hot.

鈥淕iven how we see things developing, that may move us to continue strengthening this buffer until we feel that it may be sufficient to cover our potential losses going forward. So, it really depends on how we see our clients behaving over the next few months.鈥�

Loan loss provisioning stood at P6.1 billion in the first quarter, more than double the P3 billion a year ago.

Meanwhile, the bank also wants its loan book to be equally spread among institutional, consumer, and the middle market segments. At present, 25% of their portfolio is made up of consumer loans, Mr. Reyes said.

鈥淥ur ambition is to have an equal split of the loan book among the three sectors: large corporates, middle market, and consumer. The consumer book has been steadily increasing its share of the pie 鈥� maybe somewhere between 80 to 100 basis points a year. At that pace, it鈥檚 going to be a slow growth towards our target share of one third of the total.鈥�

The lender also expects to finish the overhaul of its IT system within two to three years as it looks to improve its digital services, he said.

BDO鈥檚 net profit grew by 2% to P20.1 billion in the first quarter from P19.7 billion in the same period last year.

Its shares dropped by P2 or P1.64 to end at P120 each on Thursday. 鈥� Aaron Michael C. Sy

The bank鈥檚 attributable net income went down to P2.704 billion in the period from P2.82 billion a year ago, it said in a disclosure to the stock exchange on Thursday.

This translated to a return on average assets of 0.9% and a return of average equity of 7.03%, down from the previous year鈥檚 1.01% and 7.92%, respectively.

鈥淲e had a solid start to the year, driven by stronger core earnings and disciplined cost management. We remain focused on sustaining operational discipline, growing responsibly, and making banking simpler, faster, and more responsive for our customers,鈥� Security Bank President and Chief Executive Officer Victor Lee Meng Teck said.

Net interest income climbed by 27.61% to P15.16 billion from P11.88 billion a year ago, mainly driven by higher interest earnings on loans as its credit cards, time loan, auto loan and home loan portfolios grew.

Net interest margin rose to 5.36% from 4.51% a year ago.

Meanwhile, other income declined to P1.9 billion in the quarter from P3.5 billion last year.

This was mainly due to the P712.48-million net trading and securities loss and the P977.55-million net FX loss it booked in the period amid unfavorable market movements during the period influenced by geopolitical developments.

Service charges, fees, and commissions also dropped to P2.06 billion in the quarter from P2.16 billion in the same period last year.

Still, total operating income grew by 10.48% year on year to P17.03 billion.

Meanwhile, Security Bank鈥檚 operating expenses went up by 14.36% to P13.4 billion in the first three months from P11.72 billion in the same period last year, driven mainly by a 63.2% increase in loan loss provisions to P3.88 billion from P2.38 billion, which it said is part of its 鈥減rudent risk management approach amid evolving operating conditions.鈥�

It said its pre-provision operating profit rose 24% year on year to P7.5 billion.

The bank鈥檚 cost-to-income ratio improved to 55.89% from 60.59% a year ago.

Net loans stood at P679.44 billion at end-March, up 5% year on year, supported by efforts to rebalance its portfolio towards higher-quality segments, it said.

鈥淎sset quality metrics remain manageable, with gross nonperforming loan (NPL) ratio at 3.08% and NPL reserve cover at 81%.鈥�

On the funding side, total deposits were at P937.98 billion, rising by 12% year on year. Current account, savings account deposits grew by 13%, comprising 51% of the total.

Its net loans-to-deposit ratio was at 72.44%.

Security Bank鈥檚 assets stood at P1.22 trillion as of March, up from P1.19 trillion at end-2025 and also rising by 10% year on year.

Meanwhile, total equity edged down to P153.48 billion from P154.23 billion at end-2025, but was up 7% from the prior year.

Security Bank鈥檚 common equity Tier 1 ratio was at 12.2%, while total capital adequacy ratio stood at 13.09%.

鈥淭he bank maintains healthy liquidity, with liquidity coverage ratio at 198% and net stable funding ratio at 145% as of March 31.鈥�

Security Bank shares rose by 65 centavos or 1% to close at P65.75 each on Thursday. 鈥� A.M.C. Sy

The currency sank by 26 centavos to close at P61.64 per dollar from P61.38 on Wednesday, according to Bankers Association of the Philippines data posted on its website.

This beat the previous record close of P61.567 on April 30.

Year to date, the peso has depreciated by 4.62% or P2.85 from its end-2025 finish of P58.79.

The currency opened Thursday鈥檚 session slightly stronger at P61.35 a dollar, which was also its intraday best. Meanwhile, its worst showing was at P61.66 against the greenback.

Dollars traded dropped to $1.58 billion from $1.8 billion in the previous session.

鈥淭he peso is no longer reacting to just a strong dollar and high US rates. Today鈥檚 move suggests markets are also pricing in a higher political and uncertainty premium, especially as the peso underperformed regional peers,鈥� the first trader said in a Viber message.

The Philippine Senate president said on Thursday that the lawmaker wanted by the International Criminal Court, Ronald dela Rosa, was no longer in the Senate building, Reuters reported.

Mr. dela Rosa, the former national police chief and top enforcer of ex-President Rodrigo Duterte鈥檚 bloody 鈥渨ar on drugs,鈥� had been under Senate protection and is wanted for crimes against humanity, the same charges Mr. Duterte is accused of.

Meanwhile, the House of Representatives earlier this week impeached Vice-President Sara Duterte-Carpio. The Senate is expected to convene as an impeachment court on May 18.

鈥淭he dollar-peso ended higher on peso weakness amid rising political tensions, alongside reinforced hawkish Fed bets after hotter-than-expected US producer price inflation data overnight,鈥� a second trader said by phone.

鈥淭he peso reached record lows after the stronger than expected US producer inflation report听 amplified views that the Federal Reserve might not be able to deliver rate cuts this year despite Kevin Warsh鈥檚 confirmation as the next US central bank chairman, replacing Jerome Powell,鈥� a third trader said in an e-mail.

Christopher Wong, FX strategist at OCBC Group Research, said in a note that the peso continued to be pressured by weakening economic fundamentals due to elevated oil prices, citing the weaker than expected first quarter economic growth and faster than expected April inflation figures.

He added this 鈥渓eaves the Bangko Sentral ng Pilipinas (BSP) facing an uncomfortable inflation-growth trade-off.鈥�

鈥淧olitical noise may also be adding a layer of caution at a time when oil, rates and risk-off dynamics are already unfavorable,鈥� Mr. Wong said.

For Friday, the second trader said the peso could test the P61.75 mark, which is the lowest level it has touched so far, adding that trading could be driven by the outcome of the meeting between US President Donald J. Trump and China President Xi Jinping and scheduled US data releases, including initial jobless claims and retail sales data.

The third trader said the peso could move between P61.50 and P61.75 against the dollar on Friday due to a likely weaker US retail sales report overnight.

The first trader said the peso could test the P62 level in the near term if volatility persists and if risk sentiment deteriorates further, but added that the BSP still has enough credibility and reserves to prevent disorderly swings. 鈥� Aaron Michael C. Sy