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U/KBs' NPL Ratio at 2.35 Percent

03.12.2012

As of end-January 2012, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) stood at 2.35 percent, higher by 0.12 percentage point from the previous month’s 2.23 percent but better by 0.66 percentage point from year ago’s 3.01 percent ratio. 

The month-on-month movement in the NPL ratio occurred as the 1.75 percent rise in NPLs to P73.20 billion from P71.94 billion came with the 3.14 percent drop in total loan portfolio (TLP) to P3,120.69 billion from P3,221.77 billion.

Net of interbank loans (IBL), the NPL ratio edged up by 0.15 percentage point to 2.50 percent from last month’s 2.35 percent but improved by 0.74 percentage point from year ago’s 3.24 percent ratio.  The ratio increased from last month as the growth in NPLs was accompanied by the 4.56 percent fall in regular loans to P2,927.40 billion from P3,067.42 billion.

Meantime, the restructured loans (RLs) to TLP ratio remained at 1.24 percent from last month but eased from year ago’s 1.65 percent ratio. The ratio was the same as last month since the 3.03 percent decrease in gross RLs offset the drop in TLP.

Real and other properties acquired (ROPA), gross to gross assets (GAs) climbed to 1.70 percent from last month’s 1.67 percent but got better from year ago’s 2.06 percent ratio.  The ratio rose from last month as a result of the reduction in GAs outpacing the 0.83 percent cut in ROPA.

The non-performing assets (NPA) to GAs ratio went up to 2.83 percent from last month’s 2.76 percent but improved from year ago’s 3.42 percent ratio. The ratio edged up from the previous month due to the 0.18 percent hike in NPAs coupled with the 2.56 percent fall in GAs.

The industry’s provisioning against potential credit losses remained adequate despite some decline. The NPL coverage ratio (loan loss reserves to NPLs) slipped to 124.73 percent from last month’s 126.36 percent but strengthened from year ago’s 117.47 percent ratio. On the other hand, the NPA coverage ratio (NPA reserves to NPA) widened to 64.69 percent from 64.44 percent last month and from year ago’s 59.94 percent ratio.

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