The Weekly Rewind: June flows turn negative despite easing oil prices

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The Weekly Rewind: June flows turn negative despite easing oil prices

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Philippine Perspective

The Weekly Rewind: June flows turn

negative despite easing oil prices

Country Overview

Market: Weak peso offset weakening oil 26 June 2026

The PSE index (PSEi) fell 1% this week even as Brent fell 10% this week and -22% over Equity Strategy

the last three weeks, which should be supportive of sentiment. Foreigners sold ASEAN

US$35mn this week to turn the choppy MTD flow negative (-$22mn). Peso shed 2% Jojo Gonzales ^^

since the hawkish FOMC message mid-June. Research Analyst

Philippine Equity Partners

Banks: DBs are gathering mass but not profit as yet +63jojo.gonzales@pep.com.ph2 8640 6767

Digital Banks (DB) are gaining mass, improving asset quality, but still lacking profit. Philip Albert Felix ^^

Digital loans grew 94% YoY thru Apr-2026, outpacing deposit growth of 54% YoY. The ResearchPhilippineAnalystEquity Partners

NPL ratio of DBs fell to 5.7% from a peak of 25%. DBs also look provisioned with NPL philip.felix@pep.com.ph

cover at 140%. Buoyant NIMs led to narrowing losses for the sector. Of the 6 DBs, Maya Julian Roxas ^^

stands out as it accounts for half of sector loans/deposits, has the highest NIMs (18.9%) ResearchPhilippineAnalystEquity Partners

and is currently 1 of 2 profitable DBs. Despite the positive trends, DBs are not a threat julian.roxas@pep.com.ph

to the market share of incumbent UK/Bs as it is still less than 1% of total banking Russ Toribio ^^

system loans/deposits. Stay positive on incumbent banks. Reiterate Buy on BDO, BPI, ResearchPhilippineAnalystEquity Partners

MBT and SECB. Neutral UBP. See our PH Banks report: Digital banks gain mass, maintain russ.toribio@pep.com.ph

asset quality, but most lack profit. Ryle Daniel Mungcal ^^