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Cooperative Banks’ NPL Ratio Stands at 8.63 Percent

02.05.2010

As of end-September 2009, the NPL ratio of the cooperative banking industry slightly rose by 0.03 percentage point to 8.63 percent from last quarter’s 8.60 percent but eased by 0.99 percentage point from year ago’s 9.62 percent ratio).

The quarter-on-quarter rise in the NPL ratio came about as NPLs rose by 5.03 percent to P0.91 billion from P0.86 billion, outpacing the 4.75 percent expansion in total loan portfolio (TLP) to P10.50 billion from P10.02 billion.

In terms of the three main geographical regions, cooperative banks in Luzon area had better NPL ratio at 6.56 percent compared with cooperative banks situated in the Visayas (at 13.63 percent) and Mindanao (at 14.41 percent).

The ratio of restructured loans (RLs), gross to TLP moved up to 2.21 percent from last quarter’s 2.17 percent. The quarter-on-quarter increment came about as RLs, gross grew by 6.65 percent to P0.23 billion.

Real and other properties acquired (ROPA), gross slightly moved up to P0.44 billion from its previous quarter’s level of P0.43 billion. However, with gross assets expanding faster, the ratio of ROPA, gross to gross assets fell to 2.92 percent from 3.02 percent.

The ratio of non-performing assets (NPAs) to gross assets improved to 8.98 percent from last quarter’s 9.04 percent and year ago’s 10.12 percent ratio. The quarter-on-quarter development transpired as the 3.66 percent growth in NPAs to P1.34 billion was outpaced by the expansion in gross assets.

The industry’s loan loss reserves rose by 3.06 percent to P0.50 billion from last quarter’s P0.49 billion. However, the NPL coverage ratio narrowed to 55.25 percent from 56.31 percent last quarter as NPLs increased at a faster rate.

Meantime, the NPA coverage ratio of the industry dropped to 38.18 percent from last quarter’s 38.37 percent but was still better than year ago’s 34.59 percent ratio.

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