Tonik Digital Bank, the first standalone digital bank licensed by the BSP, has reached sustained profitability in Q1 2026. Its regulated arm, Tonik Digital Bank, Inc., also reported IFRS profitability, making it the first of its kind in the Philippines to cross that milestone.
Unlike most fintechs that chase user growth, Tonik built its model around credit-led lending. The bank focuses on the 90% of Filipinos underserved by traditional lenders, pointing out that loan clients generate far more revenue than payment users.
By April 2026, Tonik’s loan portfolio hit USD 110 million, more than double compared to last year. Its annualized revenue run-rate exceeded USD 60 million, with lending making up 99% of the total. The bank posted a Net Interest Margin of 51% and a RAROC of 25%, the highest in the market.
Tonik credits its profitability to AI-driven risk management for thin-file borrowers, a diverse lending mix that includes salary-deduction loans, merchant installment networks, and digital personal loans, plus a deposit advantage with retail funding costs at 3–6% versus 15% or more for non-bank lenders.
CEO Greg Krasnov said Tonik avoided vanity metrics like idle deposits, choosing instead to focus on sustainable lending growth. The bank now aims to scale into the country’s USD 50–100 billion credit gap, expanding employer-channel lending through Tendo and strengthening its merchant network.
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Launched in 2021, Tonik has grown into one of the country’s leading digital banks, showing that profitability in fintech is possible with a focused lending strategy.
