Summary of Components of Net Deferred Income Tax Assets (Liabilities)

The components of our consolidated net deferred income tax assets (liabilities) as at December 31, 2025 and 2024 are as follows:


	2025			2024
	(in million pesos)
Net deferred income tax assets:
Accumulated provision for expected credit losses		3,990			3,618
Lease liability over ROU assets under IFRS 16(1)		3,185			3,240
Unearned revenues		2,781			3,914
Depreciation due to shortened estimated useful life of assets		2,550			2,480
Pension and other employee benefits		1,680			2,607
Unrealized foreign exchange losses		1,605			1,404
Unamortized past service pension costs		1,439			1,908
Accumulated write-down of inventories to net realizable values		284			371
NOLCO		13			266
Excess MCIT over RCIT		13			13
Taxes and duties capitalized		(176	)		(167	)
Derivative financial instruments		265			(203	)
Customer list and trademark		(456	)		(361	)
Capitalized charges and others		(5,591	)		(4,447	)
Total deferred income tax assets – net		11,582			14,643
Net deferred income tax liabilities:
Investment property		388			389
Unrealized foreign exchange gains		7			22
Accumulated provision for expected credit losses		(194	)		(173	)
Others		(126	)		(178	)
Total deferred income tax liabilities - net		75			60

(1) As at December 31, 2025 and 2024, the deferred tax asset on lease liability amounted to Php15,731 million and Php13,234 million, respectively while the deferred tax liability on right of use asset amounted to Php12,546 million and Php9,994 million, respectively.

Summary of Analysis of Net Deferred Income Tax Assets

The analysis of our consolidated net deferred income tax assets as at December 31, 2025 and 2024 are as follows:


	2025		2024
	(in million pesos)
Deferred income tax assets:
Deferred income tax assets to be recovered after 12 months		8,090		11,449
Deferred income tax assets to be recovered within 12 months		3,492		3,194
Net deferred income tax assets		11,582		14,643

Summary of Provision for Income Tax

Provision for income tax for the years ended December 31, 2025, 2024 and 2023 consists of:


	2025		2024		2023
	(in million pesos)
Current		5,111		6,200		7,964
Deferred (Note 3)		3,710		3,401		1,206
		8,821		9,601		9,170

Summary of Amount of Unrecognized Deferred Income Tax Assets

The breakdown of our consolidated deductible temporary differences, carryforward benefits of unused tax credits from excess of MCIT over RCIT, and NOLCO (excluding those not recognized due to the adoption of the OSD method) for which no deferred income tax assets were recognized and the equivalent amount of unrecognized deferred income tax assets as at December 31, 2025 and 2024 are as follows:


	2025			2024
	(in million pesos)
Accumulated provision for expected credit losses		2,001			1,266
NOLCO		718			1,208
Provisions		621			25
Customer list and trademark		365			428
Derivative financial instruments		56			35
Lease liability over ROU assets under IFRS 16		21			3
Accumulated write-down of inventories to net realizable values		15			15
Unearned revenues		10			9
Excess MCIT over RCIT		6			2
Depreciation due to shortened estimated useful life of assets		—			169
Pension and other employee benefits		(15	)		(5	)
Unrealized foreign exchange (gains) losses		(79	)		50
		3,719			3,205
Unrecognized deferred income tax assets		934			803