As of end-March 2010, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) stood at 3.25 percent. This is higher by 0.07 percentage point than last month’s 3.18 percent but an improvement by 0.31 percentage point from year ago’s 3.56 percent ratio. This is the eighteenth consecutive month that the NPL ratio has been below four percent.
The month-on-month movement transpired as the 0.06 percent growth in NPLs was accompanied by the 2.05 percent decline in total loan portfolio (TLP). NPLs went up to P82.33 billion from last month’s P82.28 billion while TLP dropped to P2,531.62 billion from P2,584.67 billion.
Net of interbank loans, the NPL ratio also rose to 3.73 percent from last month’s 3.62 percent but improved by 0.25 percentage point from year ago’s 3.98 percent ratio. The month-on-month increase in the ratio occurred as the hike in NPLs came with the 2.87 percent drop in regular loans to P2,210.03 billion.
Meantime, the real and other properties acquired (ROPA) to gross assets (GA) ratio got better to 2.36 percent from last month’s 2.38 percent and year ago’s 2.79 percent ratio. The easing of the ratio from last month took place as the 0.53 percent fall in ROPA to P132.27 billion was complemented by the expansion in GAs.
The non-performing assets (NPA) to GA ratio eased to 3.85 percent from last month’s 3.87 percent and year ago’s 4.53 percent ratio. The favorable decline in the ratio from last month came about as the 0.31 percent fall in NPAs was accompanied by the 0.31 percent growth in GAs. The NPA level stood at P214.59 billion, down from last month’s P215.26 billion and year ago’s P231.51 billion.
The restructured loans (RLs) to TLP ratio climbed to 1.76 percent from last month’s 1.72 percent but fell from year ago’s 2.03 percent ratio. The ratio rose from last month as the 0.23 percent reduction in gross RLs to P44.83 billion was outpaced by the larger decline in loans.
The industry provided adequate provisioning against potential credit losses. The NPL coverage ratio strengthened to 112.87 percent from last month’s 111.50 percent. Similarly, the NPA coverage ratio widened to 56.52 percent from last month’s 55.60 percent. Year-on-year, this month’s NPL and NPA coverage ratios also fared better than their reference ratios of 99.30 percent and 49.66 percent, respectively.