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U/KBs' NPL Ratio Stands at 3.22 Percent in January

03.12.2010

As of end-January 2010, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) stood at 3.22 percent, up by 0.25 percentage point from last month’s 2.97 percent but an improvement by 0.60 percentage point from year ago’s 3.82 percent ratio. This is the sixteenth consecutive month that the NPL ratio has been below four percent.

The month-on-month movement took place as the 2.84 percent hike in NPLs came with the 5.22 percent decline in total loan portfolio (TLP). NPLs grew to P83.21 billion from last month’s P80.91 billion while TLP fell to P2,582.64 billion from P2,724.87 billion.

Net of interbank loans, the NPL ratio went up to 3.70 percent from last month’s 3.40 percent but eased from year ago’s 4.35 percent ratio. The rise in the ratio from last month transpired as the growth in NPLs was accompanied by the 5.41 percent drop in regular loans to P2,251.74 billion.

Meantime, the real and other properties acquired (ROPA) to gross assets (GA) ratio slightly rose to 2.42 percent from last month’s 2.41 percent but got better from year ago’s 2.81 percent ratio. The ratio went up from last month as the 0.99 percent reduction in ROPA to P134.06 billion was outweighed by the larger fall in GAs.

The non-performing assets (NPA) to GA ratio climbed to 3.94 percent from last month’s 3.86 percent but improved from year ago’s 4.62 percent ratio. The month-on-month increase in the ratio occurred as the 0.44 percent growth in NPAs was accompanied by the 1.50 percent drop in GAs. The NPA level stood at P217.27 billion, up from last month’s P216.32 billion but down from year ago’s P233.47 billion.

The restructured loans (RLs) to TLP ratio went up to 1.75 percent from last month’s 1.65 percent but dropped from year ago’s 2.29 percent ratio. The month-on-month increase in the ratio was fueled by the decline in loans as gross RLs barely changed at P45.44 billion.

In terms of provisioning for bad loans, the NPL coverage ratio narrowed to 110.70 percent from last month’s 112.34 percent. In contrast, the NPA coverage ratio widened to 55.12 percent from last month’s 54.88 percent. Year-on-year, this month’s NPL and NPA coverage ratios fared better than their reference ratios of 96.82 percent and 49.47 percent, respectively.

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