The NPL ratio of commercial banks further rose to 18.03 percent in August 2001, 0.31 percentage points higher than the 17.72 percent in July 2001. NPL levels increased by P2.5 billion or 0.9 percent during the month even as total loan portfolio (TLP) dropped by P13.3 billion or 0.9 percent. Net of interbank loans (IBL), NPL ratio also moved up to 19.93 percent from 19.52 percent last month.
With the exception of Government Banks whose NPL ratio improved to 18.58 percent from 19.15 percent last month, all groups registered higher ratio levels: Private Domestic EKBs from 20.27 percent to 20.67 percent, Other Private KBs from 21.54 percent to 22.23 percent and Foreign Branches from 4.56 percent to 4.77 percent.
Coverage ratio (loan loss reserves (LLRs) to NPLs) inched up to 43.6 percent from 43.5 percent last month, as the increase in LLRs of P1.4 billion or 1.1 percent outpaced the P2.5 billion or 0.89 percent rise in NPLs. All groups except Other Private KBs posted increments in loan loss reserves.
The growth in gross restructured loans (RLs) of P13.2 billion or 0.2 percent accompanied by the 0.9 percent contraction in TLP raised RLs to 6.93 percent of TLP from 6.86 percent last month. Past due portion of gross RLs rose to 45.6 percent from 43.1 percent last month.
Holdings of gross Real and Other Properties Owned and Acquired (ROPOA) also grew by 1.2 percent to P147.6 billion from last month’s P145.8 billion while gross assets simultaneously dropped by 1.0 percent pushing up ROPOA to 4.7 percent of gross assets from 4.6 percent last month. Likewise, ROPOA also increased to 8.7 percent of ROPOA plus TLP from last month’s 8.5 percent.
Overall asset quality as measured by the non-performing asset (NPA) ratio deteriorated to 13.7 percent from 13.5 percent last month as non-performing assets (NPL plus gross ROPOA) increased by 1.0 percent.
Using another broad definition of loan quality, the ratio of NPL plus current restructured loans plus gross ROPOA to TLP plus ROPOA deteriorated to 28.6 percent from 28.3 percent last month and last year’s 24.2 percent.
The growth in total provisions (loan loss reserves plus provisions for ROPOA) by 1.1 percent to P129.8 billion from P128.4 billion, boosted NPA coverage ratio (total provisions divided by NPAs) to 30.30 percent from 30.27 percent last month.