Other consumer loans (Other CLs) was up by 5.4 percent to P53.7 billion by end-December 2011 from P50.9 billion last quarter and by 15.8 percent from last year’s P46.4 billion. As a proportion of total loan portfolio (TLP) net of interbank loans however, Other CLs fell slightly to 1.5 percent from last quarter’s and last year’s 1.6 percent ratio.
Other CLs refer to loans granted to individuals to finance other personal and household needs such as purchase of household appliances, furniture and fixtures and/or to pay taxes, hospital and educational bills.
Thrift banks (TBs) accounted for more than half (56.2 percent or P30.1 billion from 58.8 percent or P30.0 billion last quarter) of the total Other CLs while U/KBs held 43.8 percent or P23.5 billion (from 41.2 percent or P20.9 billion).
In terms of loan quality, all loan performance indicators point towards their improvement. Non-performing Other CLs to total Other CLs ratio was on a constant decline, reaching 14.1 percent from 16.2 percent last quarter; non-performing Other CLs to total non-performing loans (NPLs) also went down to 5.9 percent from 6.3 percent in the previous quarter; and relative to TLP non-performing Other CLs eased to 0.2 percent from 0.3 percent last quarter.
By type of bank, U/KBs fared better than TBs across all the stated loan performance indicators by a wide margin. U/KBs’ non-performing Other CLs to Other CLs ratio stood at 8.4 percent whereas that of TBs was at 18.5 percent non-performing other CLs to total NPLs of U/KBs was at 1.9 percent while the ratio of TBs was at 21.7 percent; and finally, where the non-performing Other CLs to TLP of U/KBs was at 0.1 percent, the TBs’ was at 1.5 percent.
In terms of provisioning, the ratio of loan loss reserves (Other CLs) to non-performing Other CLs narrowed to 84.8 percent from the other comparative periods’ 87.4 percent following the decline in loan loss reserves by 11.1 percent (P0.8 billion).