As of end-December 2008, the total residential real estate loans (RRELs) of universal/commercial banks (U/KBs) and thrift banks (TBs) amounted to P153.9 billion, up by 7.1 percent from last quarter’s P143.7 billion. Meantime, the ratio of total RRELs to total loan portfolio (TLP), exclusive of interbank loans (IBL) slid to 6.0 percent from last quarter’s 6.1 percent ratio with the faster 9.0 percent growth in TLP, net of IBL.
TBs accounted for the bigger slice of the total residential real estate exposure at 53.5 percent (P82.3 billion) while U/KBs held the remaining 46.5 percent (P71.6 billion).
Loan quality improved as the ratio of non-performing RRELs to total RRELs of U/KBs and TBs eased to 7.0 percent from the previous quarter’s 7.7 percent ratio. This developed as the 3.4 percent reduction in non-performing RRELs was complemented by the expansion in total RRELs. Non-performing RRELs stood at P10.7 billion, down by P0.4 billion from last quarter.
The non-performing RRELs to total non-performing loans (NPLs) ratio together with non-performing RRELs to TLP ratio got better to 8.3 percent (from 8.5 percent last quarter) and 0.4 percent (from 0.5 percent), respectively.
The RREL quality of U/KBs was better than that of TBs as indicated by the following ratios: non-performing RRELs to total RRELs (6.1 percent), non-performing RRELs to total NPLs (4.2 percent) and non-performing RRELs to TLP (0.2 percent). TBs posted relatively higher ratios at 7.7 percent, 27.2 percent and 2.2 percent, respectively.