As of end-December 2009, the NPL ratio of the cooperative banking industry eased by 0.76 percentage point to 7.87 percent from last quarter’s 8.63 percent. Likewise, this was 0.91 percentage point better from last year’s 8.78 percent ratio.
The quarter-on-quarter improvement in the NPL ratio came about as NPLs declined by 5.30 percent to P0.86 billion from P0.91 billion. Simultaneously, TLP expanded by 3.83 percent to P10.90 billion from P10.50 billion.
In terms of the three main geographical regions, cooperative banks in Luzon area had better NPL ratio at 6.66 percent compared with cooperative banks situated in the Visayas (at 11.93 percent) and Mindanao (at 11.18 percent).
The ratio of restructured loans (RLs), gross to TLP went down to 1.96 percent from last quarter’s 2.21 percent. The quarter-on-quarter reduction came about as RLs, gross dropped by 8.08 percent to P0.21 billion.
Real and other properties acquired (ROPA), gross likewise declined to P0.37 billion from its previous quarter’s level of P0.44 billion. Consequently, the ratio of ROPA, gross to gross assets fell to 2.32 percent from 2.92 percent.
The non-performing assets (NPA) dropped from last quarter by 8.93 percent to P1.22 billion resulting to an improved NPA ratio of the industry at 7.77 percent from 8.98 percent last quarter. Year-on-year, this quarter’s ratio was also an improvement from the reference ratio of 9.30 percent.
The NPL coverage ratio widened by 4.84 percentage points to 60.09 percent from 55.25 percent last quarter. This resulted from the 2.98 percent growth in loan loss reserves (LLRs) to P0.52 billion from P0.50 billion matched by the 5.30 percent decline in NPLs.
Meantime, the NPA coverage ratio of the industry expanded to 43.14 percent from last quarter’s 38.18 percent and last year’s 36.01 percent ratio.