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RRELs Post at 5.3 Percent Increase in the First Quarter


By end-March 2012, total residential real estate loans (RRELs) was at P232.6 billion, 5.3 percent (P11.7 billion) more than last quarter’s P220.8 billion and 21.1 percent (P40.5 billion) higher than year ago’s P192.1 billion.  As in the previous years, the growth was driven by universal/commercial banks (U/KBs), which posted an P8.2 billion (6.6 percent) increment whereas thrift banks (TBs) generated a P3.6 billion (3.7 percent) increase.  Year-on-year, U/KBs grew by P35.1 billion (36.3 percent) while TBs moved up by P5.4 billion (5.7 percent).

Despite the rise in both U/KBs and TBs, the former grabbed a bigger share of total RRELs at 56.8 percent (P132.0 billion) from 56.1 percent (123.9 billion) last quarter whereas the share of TBs slid to 43.2 percent (P100.6 billion) from 43.9 percent (P97.0 billion).

Relative to total loan portfolio (TLP), total RRELs was bigger this quarter at 6.7 percent as against 6.3 percent last quarter and year ago’s 6.5 percent.  The quarter-on-quarter growth followed the 0.9 percent (P32.4 billion) decline in TLP while the year-on-year expansion was brought on by the 21.1 percent (P40.5 billion) increase in total RRELs.

Meanwhile, the ratio of non-performing RRELs to total RRELs improved to 4.2 percent from last quarter’s 4.3 percent as well as year ago’s 5.1 percent ratio.  In comparison, the ratio of non-performing RRELs to total non-performing loans (NPLs) was mixed, maintaining year ago’s ratio of 7.4 percent and improving over last quarter’s 7.5 percent.  On the other hand, the result of the non-performing RRELs to TLP ratio was steady at 0.3 percent over the three comparative periods.

 By industry, U/KBs outperformed TBs in all ratios except the non-performing RRELs to total RRELs ratio where U/KBs had a 4.6 percent ratio while the TBs had a 3.7 percent ratio.  In the non-performing RRELs to total NPLs ratio, U/KBs registered 5.7 percent while TBs posted 14.2 percent.  Lastly, for the non-performing RRELs to TLP ratio, U/KBs scored 0.2 percent whereas TBs reflected a 0.9 percent ratio.

 In terms of loan loss reserves (RRELs) to non-performing RRELs, the ratio slid to 38.7 percent ratio from last quarter’s 41.7 percent following the dip in loan loss reserves (LLRs) by 5.1 percent (P0.2 billion) in the same period.

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