As of end-September 2010, the non-performing (NPL) ratio of the cooperative banking industry rose by 0.14 percentage point to 8.56 percent from last quarter's 8.42 percent. Nevertheless, this was 0.07 percentage point better than year ago's 8.63 percent ratio.
The quarter-on-quarter movement in the NPL ratio came about as NPLs increased by 3.34 percent to P0.95 billion from P0.92 billion, surpassing the 1.64 percent growth in TLP to P11.06 billion from P10.88 billion.
In terms of the three main geographical regions, cooperative banks in Luzon posted the best NPL ratio at 8.15 percent compared with cooperative banks in Visayas and Mindanao which reported NPL ratios of 11.81 percent and 8.88 percent, respectively.
The ratio of restructured loans (RLs), gross to TLP slightly went up to 1.19 percent from last quarter's 1.11 percent as RLs grew by 9.09 percent to P0.13 billion.
Real and other properties acquired (ROPA), gross rose from last quarter by 0.77 percent to P0.33 billion. However, with faster expansion in gross assets, the ratio of ROPA, gross to gross assets slightly fell to 2.07 percent from 2.08 percent.
With bigger level of delinquent loans and ROPA, the non-performing assets (NPA) increased by 2.67 percent to P1.27 billion resulting to a higher NPA ratio of the industry at 8.04 percent from 7.93 percent last quarter. Nonetheless, this quarter's ratio was an improvement from year ago's 8.98 percent ratio.
The NPL coverage ratio widened to 66.11 percent from 59.70 percent last quarter. This resulted from the 14.44 percent growth in LLRs to P0.63 billion from P0.55 billion which more than covered the 3.34 percent rise in NPLs.
Likewise, the NPA coverage ratio of the industry expanded to 50.36 percent from last quarter's 45.25 percent and year ago's 38.18 percent ratio.