The NPL ratio of the thrift banking industry as of end-June 2010 was up by 0.08 percentage point to 7.93 percent from quarter ago’s 7.85 percent and by 0.46 percentage point from year ago’s 7.47 percent. The quarter-on-quarter development occurred as the 2.70 percent expansion in NPLs was faster than the 1.67 percent rise in total loan portfolio (TLP).
Exclusive of interbank loans (IBL), the NPL ratio also rose by 0.19 percentage point to 8.19 percent from 8.00 percent last quarter with TLP, net of interbank borrowings, expanding by only 0.36 percent to P315.99 billion from last quarter’s P314.86 billion. Similarly, the ratio for this period is higher by 0.57 percentage point from year ago’s 7.62 percent.
The proportion of restructured loans (RLs) to TLP remained the same as last quarter’s 1.34 percent, but declined from year ago’s 1.36 percent ratio. Quarter-on-quarter, RLs grew by 1.85 percent to P4.41 billion.
Meanwhile, the real and other properties acquired (ROPA) to gross assets (GAs) ratio moved down to 4.41 percent from last quarter’s 4.50 percent. This occurred as the decline of ROPA by 1.1 percent to P24.50 billion was accompanied by the expansion in GAs. Year-on-year, this quarter’s ratio was higher by 0.10 percentage point from the base figure of 4.31 percent.
The non-performing assets (NPA) ratio improved to 9.08 percent or by 0.03 percentage point from last quarter’s 9.11 percent. However, this quarter’s ratio was higher by 0.45 percentage point from year ago’s 8.63 percent ratio.
The NPL coverage ratio widened to 53.05 percent from 50.43 percent last quarter as the loan loss reserves rose faster by 8.04 percent to P13.72 billion from P12.70 billion compared to the increase in the NPLs. Likewise, the NPL cover for the quarter was better by 0.29 percentage point from year ago’s 52.76 percent ratio.
The NPA coverage ratio reached 31.94 percent this period. This was wider than last quarter’s 30.05 percent and year ago’s 31.00 percent. The quarter-on-quarter movement was due to the faster growth in NPA reserves at 7.15 percent as opposed to the 0.81 percent growth in NPAs.