Tonik Digital Bank said it became the first standalone digital bank in the Philippines to achieve profitability, a major milestone for the country’s fast-growing digital banking sector.
The digital lender reported consolidated positive cash net income in the first quarter of 2026, after accounting for all costs, including credit risk. Its regulated bank subsidiary, Tonik Digital Bank Inc., also posted profitability under International Financial Reporting Standards (IFRS) during the same period.
Tonik, holder of BSP Digital Banking License No. 001, said the result validates its strategy of focusing on consumer lending instead of aggressively growing users or payment transactions.
“We chose not to chase users as a vanity metric. We chose not to build deposits we couldn’t deploy,” said Greg Krasnov, founder and CEO of Tonik Digital Bank. “We built a credit bank, with the best unit economics in the market, and let the income statement follow.”
Unlike many digital banks that rely on ecosystems tied to telecom, retail, or payments businesses, Tonik operates as a standalone digital bank focused mainly on lending. The company said 99% of its more than $60 million annualized revenue run rate now comes from loans.
As of April 2026, Tonik’s loan portfolio reached $110 million, growing 2.3 times year-on-year. The bank also reported an 82% loan-to-deposit ratio, which it said is the highest among Philippine digital banks.
Tonik said its business targets Filipinos who remain underserved by traditional lenders, particularly borrowers with limited formal credit history.
The company attributed its profitability to three key factors: artificial intelligence (AI)-driven risk management, diversified lending products, and lower funding costs enabled by its BSP digital banking license.
Tonik said its AI-based underwriting system allows it to lend profitably to “thin-file” borrowers or customers with limited credit records. Its lending portfolio includes salary-deduction loans through employer channels, merchant installment financing, and digital personal loans.
The bank added that access to retail deposits gives it a funding advantage, allowing it to source funds at 3% to 6%, compared with more than 15% for many non-bank lenders.
“We are now the only player that is both cleanly profitable and structurally positioned with a digital bank deposit license to scale into the $50-100 billion credit gap,” Krasnov said.
Tonik said it plans to expand employer-channel lending through Tendo, grow its merchant network, and improve revolving credit products as it targets repeat borrowers and long-term customer growth.
For the Philippine banking industry, Tonik’s profitability could signal a shift in the digital banking market, where many players are still prioritizing customer acquisition over sustainable earnings.