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U/KBs' NPL Ratio Stands at 3.40 Percent in April

06.11.2010

As of end-April 2010, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) stood at 3.40 percent. This is higher by 0.12 percentage point than last month’s 3.28 percent but an improvement by 0.24 percentage point from year ago’s 3.64 percent ratio. This is the nineteenth consecutive month that the NPL ratio has been below four percent.


The increase in the ratio from last month occurred as the 4.47 percent hike in NPLs was faster than the 0.77 percent expansion in total loan portfolio (TLP). NPLs went up to P86.78 billion from last month’s P83.06 billion while TLP grew to P2,551.79 billion from P2,532.35 billion.

Net of interbank loans, the NPL ratio also moved up to 3.86 percent from last month’s 3.76 percent but eased from year ago’s 4.09 percent ratio. The month-on-month movement transpired as the growth in NPLs outpaced the 1.67 percent rise in regular loans to P2,247.72 billion.

Meantime, the real and other properties acquired (ROPA) to gross assets (GA) ratio got better to 2.35 percent from last month’s 2.36 percent and year ago’s 2.83 percent ratio. The month-on-month development stemmed from the 0.53 percent reduction in ROPA to P131.57 billion.

The non-performing assets (NPA) to GA ratio rose to 3.91 percent from last month’s 3.86 percent but improved from year ago’s 4.55 percent ratio. The increase in the ratio from last month was fueled by the 1.40 percent rise in NPAs. The NPA level stood at P218.35 billion, up from last month’s P215.33 billion but down from year ago’s P229.37 billion.

The restructured loans (RLs) to TLP ratio fell to 1.74 percent from last month’s 1.76 percent and year ago’s 2.08 percent ratio. The ratio dropped from last month as the 0.22 percent reduction in gross RLs to P44.73 billion came with the growth in loans.

In terms of provisioning for bad loans, the NPL coverage ratio narrowed to 108.72 percent from last month’s 112.76 percent. Similarly, the NPA coverage ratio slid to 56.27 percent from last month’s 56.67 percent. Nonetheless, this month’s NPL and NPA coverage ratios fared better than their year ago ratios of 99.65 percent and 49.33 percent, respectively.

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