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Other Consumer Loans Continue to Trend Up in 1Q12


Other consumer loans (Other CLs) posted an increase, reaching P54.6 billion as of end-March 2012 from P53.7 billion last quarter and P46.1 billion from year ago.  These reflect increments of 1.7 percent (P0.9 billion) and 18.4 percent (P8.5 billion) from the two periods, respectively.  As a percentage of total loan portfolio (TLP) net of interbank loans, Other CLs maintained the year ago ratio of 1.6 percent but rose slightly from previous quarter’s 1.5 percent.
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) held more than half (55.1 percent or P30.1 billion) of total Other CLs, albeit their share is slowly being eroded by universal/commercial banks (U/KBs), which accounted for 44.9 percent (P24.5 billion) from 43.8 percent (P23.5 billion) last quarter and 33.6 percent (P15.5 billion) a year ago.

Loan quality wise, non-performing Other CLs to total non-performing loans (NPL) was maintained at last quarter’s ratio of 5.9 percent, but improved over year ago’s 6.4 percent.  The same held true for non-performing Other CLs to TLP, which was kept steady at end-March 2012’s 0.2 percent ratio, but eased from year ago’s 0.3 percent.  Only the ratio of non-performing Other CLs to total Other CLs did not fare well (14.3 percent) compared to previous quarter’s data (14.1 percent) although, it did better than year ago (18.2 percent).

 By type of bank, U/KBs registered better delinquency ratios than TBs.  However, TBs’ delinquency ratios showed improvements from both last quarter and year ago.  TBs’ non-performing Other CLs to total NPLs ratio stood at 21.3 percent (21.7 percent last quarter and 22.7 percent a year ago) while non-performing Other CLs to TLP ratio was at 1.4 percent (1.5 percent last quarter and 1.7 percent a year ago).  Non-performing Other CLs to Other CLs ratio on the other hand, retained previous quarter’s ratio of 18.5 percent, easing from year ago’s 19.2 percent.  The improved ratio of the TBs resulted from the decrease in non-performing Other CLs by 0.4 percent (less than half of P0.1 billion) from end-December 2011 and the 5.4 percent (P0.3 billion) reduction in non-performing Other CLs from year ago.

 In terms of provisioning, the ratio of LLRs (Other CLs) to non-performing Other CLs narrowed to 83.9 percent from 84.8 percent last quarter, but improved over year ago’s 81.9 percent ratio.

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