As of end-June 2011, the non-performing (NPL) ratio of the cooperative banking industry improved by 0.03 percentage point to 8.11 percent from last quarter’s 8.14 percent and by 0.41 percentage point from 8.52 percent ratio a year ago.
The quarter-on-quarter improvement in the NPL ratio came as the increment in NPLs by 0.54 percent to P0.97 billion from last quarter’s P0.96 billion was outpaced by the 0.81 percent expansion in TLP to P11.90 billion from P11.80 billion.
In terms of the three main geographical regions, cooperative banks in Mindanao posted the best NPL ratio at 5.28 percent compared with cooperative banks in Luzon and Visayas which reported NPL ratios of 8.41 percent and 15.46 percent, respectively.
Meanwhile, the ratio of restructured loans (RLs), gross to TLP declined to 0.96 percent from last quarter’s 1.02 percent as RLs contracted by 3.99 percent to P0.12 billion.
Real and other properties acquired (ROPA), gross, on the other hand, increased from last quarter by 11.01 percent to P0.41 billion raising the ratio of ROPA to gross assets by 0.20 percentage point to 2.42 percent from 2.22 percent.
With higher level of delinquent loans and ROPA, NPAs grew by 3.44 percent to P1.37 billion from last quarter’s P1.33 billion. Hence, NPA ratio of the industry rose to 8.21 percent from 8.02 percent last quarter. Likewise, this quarter’s ratio was higher compared to year ago’s 7.93 percent.
The NPL coverage ratio widened by 1.18 percentage points to 71.82 percent from 70.64 percent last quarter as loan loss reserves (LLRs) grew by 2.22 percent to P0.69 billion from last quarter’s P0.68 billion.
Likewise, the NPA coverage ratio got better at 53.07 percent from last quarter’s 52.52 percent as NPA reserves which amounted to P0.73 billion (up from P0.70 billion) more than covered for the 3.44 percent rise in NPAs. Similarly, this ratio was wider from year ago’s 45.34 percent ratio.