The industry’s non-performing loan (NPL) ratio as of end-December 2004 improved by 0.11 percentage point to 11.50 percent from last quarter’s 11.61 percent. This developed as the 1.5 percent increase in NPLs was completely diluted by the 2.4 percent rise in total loan portfolio (TLP). Year-on-year, this quarter’s ratio also improved by 0.26 percentage point from the 11.76 percent ratio.
Across the three major geographical regions, R/CBs in Mindanao still had better loan quality even if their average NPL ratio rose to 9.16 percent from last quarter’s 8.47 percent. Though improving from last quarter, R/CBs in Luzon and Visayas continued to have double digit NPL ratios at 11.88 percent (down from 12.19 percent) and 12.93 percent (down from 13.28 percent), respectively.
The ratio of real and other properties owned or acquired (ROPOA), gross to gross assets dropped to 7.84 percent from 8.03 percent last quarter as ROPOA, gross slid by 0.6 percent to P7.98 billion.
Asset quality was better as the ratio of non-performing assets (NPAs) to gross assets was reduced to 14.89 percent from 15.11 percent last quarter. The 0.4 percent growth in NPAs to P15.10 billion was outweighed by the 1.8 percent rise in gross assets.
Meantime, The NPL coverage ratio remained almost unchanged at 36.96 percent (from last quarter’s 36.95 percent) as the growth in LLRs matched the 1.5 percent increase in NPLs. Nevertheless, the ratio strengthened by 1.44 percentage points from last year’s 35.52 percent.
Likewise, the NPA coverage ratio was further enhanced to 19.08 percent from 18.83 percent last quarter and from 18.10 percent last year. NPA reserves stood at P2.88 billion, an increase of 1.8 percent from last quarter and 15.3 percent from last year.