As of end-December 2008, Other Consumer Loans (Other CLs) of universal/commercial banks (U/KBs) and thrift banks (TBs) amounted to P37.0 billion, down by 12.1 percent from last quarter’s P42.1 billion. Similarly, the ratio of Other CLs to total loan portfolio (TLP), exclusive of interbank loans (IBL) went down to 1.4 percent from last quarter’s 1.8 percent ratio.
Other CLs refer to loans granted to individuals to finance other personal and household needs such as purchase of household appliances, furniture and fixtures and/or to pay taxes, hospital and educational bills.
By industry, TBs held the larger share of the Other CL exposure of the banking industry at 57.7 percent (P21.4 billion) while U/KBs held the remaining 42.3 percent (P15.6 billion).
In terms of loan quality, the ratio of non-performing Other CLs to total Other CLs of U/KBs and TBs rose to 16.9 percent from last quarter’s 13.2 percent ratio. The increase in the ratio transpired as the hike in non-performing Other CLs came with the decline in Other CLs. The level of non-performing Other CLs stood at P6.2 billion, up by 12.3 percent from last quarter.
Meantime, the non-performing Other CLs to total non-performing loans (NPLs) ratio stood at 4.9 percent (up from 4.2 percent last quarter). In contrast, the non-performing Other CLs to TLP ratio remained unchanged at 0.2 percent.
The quality of Other CLs of U/KBs stood better than that of TBs as indicated by the following ratios of U/KBs: non-performing Other CLs to total Other CLs (15.4 percent), non-performing Other CLs to total NPLs (2.3 percent) and non-performing Other CLs to TLP (0.1 percent) compared to TBs’ relatively higher ratios at 18.0 percent, 16.5 percent and 1.4 percent, respectively.