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U/KBs’ NPL Ratio Improves From Last Year’s 2.99% to 2.36%

05.25.2012

As of end-March 2012, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) stood at 2.36 percent, better by 0.63 percentage point from year ago’s 2.99 percent ratio but higher by 0.02 percentage point from the previous month’s 2.34 percent. 

The month-on-month increase in the NPL ratio came about as the 1.04 percent hike in NPLs to P74.65 billion from P73.88 billion outpaced the 0.27 percent expansion in total loan portfolio (TLP) to P3,160.79 billion from P3,152.19 billion.

Net of interbank loans (IBL), the NPL ratio remained at 2.47 percent from last month but eased by 0.74 percentage point from year ago’s 3.21 percent ratio.  The ratio was the same as last month since the rise in NPLs was offset the by 1.37 percent growth in regular loans to P3,026.82 billion from P2,986.00 billion.

Meantime, the restructured loans (RLs) to TLP ratio dropped to 1.12 percent from last month’s 1.21 percent and from year ago’s 1.54 percent ratio.  The cut in the ratio from last month stemmed from the 7.09 percent fall in gross RLs which was accompanied by the expansion in TLP.

Real and other properties acquired (ROPA), gross to gross assets (GAs) slightly went up to 1.68 percent from last month’s 1.67 percent but got better from year ago’s 1.98 percent ratio. The ratio crawled up from last month since the 1.02 percent contraction in ROPA was surpassed by the decrease in GAs.

The non-performing assets (NPA) to GAs ratio edged up to 2.83 percent from last month’s 2.79 percent but improved from year ago’s 3.32 percent ratio.  The ratio rose from last month with the 1.66 percent decline in GAs outpacing the 0.19 percent drop in NPAs.

The industry’s provisioning against potential credit losses remained adequate. The NPL coverage ratio (loan loss reserves to NPLs) strengthened to 124.94 percent from last month’s 124.20 percent and from year ago’s 120.37 percent ratio.  Likewise, the NPA coverage ratio (NPA reserves to NPA) widened to 65.28 percent from last month’s 64.57 percent and from year ago’s 62.07 percent ratio.

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