As of end-December 2010, the total ALs of universal and commercial banks (U/KBs) and thrift banks (TBs) inclusive of U/KBs' subsidiary non-bank financial institutions (NBFIs) summed up to P117.8 billion, up by 4.5 percent from P112.7 billion last quarter and by 24.5 percent from P94.6 billion last year.
U/KBs and their subsidiary TBs and NBFIs with a 96.5 percent share or P113.6 billion were the lead providers of ALs. Unaffiliated TBs accounted for the remaining 3.5 percent or P4.2 billion.
Meantime, the total ALs to total loan portfolio, net of interbank loans ratio slowed down to 3.9 percent from last quarter's 4.0 percent but still higher than last year's 3.4 percent ratio.
In terms of loan quality, non-performing ALs to total ALs ratio of U/KBs and TBs including U/KBs' subsidiary NBFIs slightly went up to 4.6 percent from previous quarter's 4.5 percent, but eased from last year's 5.2 percent. The quarter-on-quarter increase came as the growth in non-performing ALs (7.4 percent) outpaced the rise in total ALs. By industry, U/KBs and their subsidiary TBs and NBFIs (at 4.6 percent) had a better non-performing ALs to total ALs ratio as opposed to non-linked TBs' 5.6 percent ratio.
On the matter of provisioning against bad loans, loan loss reserves (LLRs) of ALs to non-performing ALs ratio of U/KBs and TBs inclusive of U/KBs' subsidiary NBFIs narrowed to 59.0 percent from 63.4 percent last quarter but widened against last year's 49.9 percent ratio. The quarter-on-quarter decline came as LLRs of ALs slid by 0.1 percent despite the 4.5 percent increase in non-performing ALs.