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U/KBs' NPL Ratio at 2.34 Percent

04.20.2012

As of end-February 2012, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) slightly eased to 2.34 percent from previous month’s 2.35 percent and by 0.59 percentage point from year ago’s 2.93 percent ratio. 

The month-on-month improvement in the NPL ratio took place as the 0.94 percent rise in NPLs to P73.88 billion from P73.20 billion was surpassed by the 1.01 percent hike in total loan portfolio (TLP) to P3,152.19 billion from P3,120.69 billion.

Net of interbank loans (IBL), the NPL ratio went down by 0.03 percentage point to 2.47 percent from last month’s 2.50 percent and by 0.71 percentage point from year ago’s 3.18 percent ratio.  Month-on-month, the ratio tapered as the growth in NPLs was outpaced by the 2.00 percent hike in regular loans to P2,986.00 billion from P2,927.40 billion.

Meantime, the restructured loans (RLs) to TLP ratio stood at 1.21 percent, better than last month’s 1.24 percent and year ago’s 1.57 percent ratio.  The cut in the ratio from last month occurred as the 1.05 percent fall in gross RLs was complemented by the expansion in TLP.

Real and other properties acquired (ROPA), gross to gross assets (GAs) got better to 1.67 percent from last month’s 1.70 percent and from year ago’s 2.02 percent ratio.  The ratio slid from last month as a result of the 0.07 percent reduction in ROPA, coupled with the increase in GAs.

The non-performing assets (NPA) to GAs ratio improved to 2.79 percent from last month’s 2.83 percent and from year ago’s 3.37 percent ratio.  The ratio decreased from last month with the 1.83 percent rise in GAs surpassing the 0.33 percent hike in NPAs.

The industry’s provisioning against potential credit losses remained adequate despite some decline. The NPL coverage ratio (loan loss reserves to NPLs) slipped to 124.20 percent from last month’s 124.73 percent but strengthened from year ago’s 119.57 percent ratio.  Likewise, the NPA coverage ratio (NPA reserves to NPA) went down to 64.57 percent from 64.69 percent last month but widened from year ago’s 61.00 percent ratio.

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