The non-performing loans (NPL) ratio of the commercial banking system as of August 31, 2000 slightly increased to 15.31 percent of total loan portfolio (TLP) from last month’s 15.26 percent. This was brought about by the 2.1 percent rise in NPLs which overtook the 1.8 percent increase in TLP. NPLs and TLP leveled at P237.8 billion and P1,553.4 billion, respectively.
The industry’s loan loss reserves (LLRs) also moved up to P104.7 billion, an increment of 3.0 percent from last month’s P101.7 billion. This propped up coverage ratio (LLRs divided by NPLs) to 44.0 percent from 43.7 percent a month ago as the 2.1 percent increase in NPLs fell below the 3.0 percent increase in LLRs. This month’s LLR level remained at 6.7 percent of TLP.
Gross restructured loans (RL) which rose by 4.1 percent from P81.7 billion a month ago to P85.0 billion, represented 5.5 percent of TLP, up from 5.4 percent last month.
Holdings of ROPOA (net) likewise inched up by 0.2 percent to P114.0 billion from last month’s P113.7 billion. Net ROPOA remained at 4.2 percent of total assets. ROPOA (gross), on the other hand, stood at 7.0 percent of ROPOA plus TLP compared to 7.1 percent last month.
Overall asset quality deteriorated slightly, as reflected by marginal hike in the ratio of non-performing assets (NPL plus net ROPOA) to total assets to 12.8 percent from previous month’s 12.7 percent, as the 1.5 percent hike in NPAs outpaced the 0.5 percent increase in total assets.