GCash Profit Climbs 17% to ₱16.45 Billion as Lending Business Drives Growth

 

GCash Parent Mynt Posts ₱16.45 Billion Profit as Digital Lending Expands

Mynt Inc., the parent company of GCash, recorded a 17% increase in net profit to ₱16.45 billion as of September, reinforcing its position as a major force in the Philippine financial technology industry following its stock market debut.

The company reported earnings growth from ₱14.02 billion during the same period last year, supported largely by rising demand for digital credit services. Revenue likewise advanced 12% to ₱67.08 billion, reflecting the expanding contribution of financial products beyond its core electronic payment business.

Digital lending becomes a major revenue driver

Digital financial services emerged as Mynt's strongest growth segment, generating ₱29.1 billion in revenue, up 38% year over year. The expansion was primarily fueled by GCash's growing lending operations.

Credit-related revenue increased 39% to ₱28.55 billion, while the platform's active borrower population reached 7.8 million by September. These borrowers represented 19% of GCash's monthly active users.

The company's outstanding loan portfolio also expanded considerably, climbing 43% to ₱79.28 billion. The figures underscore how GCash is evolving beyond its original role as a digital payment platform into a broader financial services provider, offering accessible credit to millions of Filipinos.

By comparison, revenue from payment solutions declined 2% to ₱37.98 billion. Despite the contraction, payments remained the company's largest individual revenue contributor.

Rising credit exposure increases operating costs

The rapid expansion of lending also brought higher expenses and greater exposure to potential loan defaults.

Mynt's direct costs rose 21% to ₱18.45 billion. Credit loss provisions increased 28% to ₱12.29 billion as the company allocated more resources to cover potential unpaid loans. Meanwhile, borrowing and funding expenses associated with its lending operations climbed 33% to ₱1.38 billion.

These developments highlight the financial trade-offs involved in scaling a digital lending business. A larger loan portfolio can generate stronger interest income, but it also requires more capital, careful borrower assessment and sufficient reserves against repayment risks.

Economic pressures weigh on wealth management

Not all segments experienced growth. Revenue from wealth management products slipped 7% to ₱546.2 million.

Mynt attributed the decline to difficult economic conditions that have affected household purchasing power. Persistent inflation and a weaker peso have left many Filipinos with less disposable income, prompting consumers to prioritize essential expenses over investments, insurance coverage and savings products.

The slowdown suggests that while digital borrowing remains in demand, consumers are becoming more cautious about setting aside money for longer-term financial products.

GCash maintains extensive nationwide reach

GCash continued to demonstrate its scale in the Philippine market, processing ₱15.15 trillion worth of transactions during the first nine months of the year.

The platform recorded 42.1 million monthly active users, equivalent to approximately 57% of the country's adult population. Its extensive reach gives Mynt a substantial distribution network for introducing additional financial products and services.

Mynt completes record-breaking stock market debut

The latest financial results follow a major milestone for the company. In October, Mynt completed its listing on the main board of the Philippine Stock Exchange through an initial public offering that raised ₱60.9 billion.

The record-setting fundraising marked a significant development for the Philippine technology and financial services sector, giving investors an opportunity to participate in the growth of one of the country's largest fintech businesses.

With lending now accounting for an increasingly significant share of its financial performance, Mynt faces the challenge of sustaining growth while managing credit risks and responding to economic pressures affecting Filipino households.