As of end-April 2012, the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) improved to 2.30 percent, lower by 0.06 percentage point from the previous month’s 2.36 percent and by 0.65 percentage point from year ago’s 2.95 percent ratio.
The month-on-month easement in the NPL ratio stemmed from the combined effect of the 0.41 percent decline in NPLs to P74.34 billion from P74.65 billion and the 2.32 percent expansion in total loan portfolio (TLP) to P3,234.08 billion from P3,160.79 billion.
Net of interbank loans (IBL), the NPL ratio went down by 0.04 percent point to 2.43 percent from last month’s 2.47 percent and by 0.73 percentage point from year ago’s 3.16 percent ratio. Month-on-month, the ratio got better as the drop in NPLs accompanied the 1.19 percent growth in regular loans to P3,062.84 billion from P3,026.82 billion.
Meantime, the restructured loans (RLs) to TLP ratio tapered to 1.06 percent from last month’s 1.12 percent and from year ago’s 1.48 percent ratio. The decrease in the ratio from last month resulted from the 3.05 percent fall in gross RLs complemented by the expansion in TLP.
Real and other properties acquired (ROPA), gross to gross assets (GAs) stood at 1.64 percent, better than last month’s 1.68 percent and year ago’s 1.98 percent ratio. The cut in the ratio from last month was due to the 0.81 percent contraction in ROPA together with the increase in GAs.
The non-performing assets (NPA) to GAs ratio eased to 2.77 percent from last month’s 2.83 percent and from year ago’s 3.35 percent ratio. The ratio improved from last month as a result of the 0.65 percent decline in NPAs coupled with the 1.49 percent rise in GAs.
The industry’s provisioning against potential credit losses remained adequate. The NPL coverage ratio (loan loss reserves to NPLs) strengthened to 125.73 percent from last month’s 124.94 percent and from year ago’s 121.06 percent ratio. Likewise, the NPA coverage ratio (NPA reserves to NPA) widened to 65.77 percent from last month’s 65.28 percent and from year ago’s 62.88 percent ratio.