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TBs NPL Levels Remain Low

06.05.2015

The total loan portfolio (TLP) of thrift banks (TBs) stood at Php 574.63 billion at end-December 2014. Of this amount, Php 25.17 billion or 4.38 percent represented the banks’ gross non-performing loans in the end of 2014.

The end-December 2014 gross NPL of TBs improved from the 4.52 percent recorded a quarter earlier. The latest figure sustains the industry’s quarter-on-quarter decline in NPL ratio since June 2013.

Aside from low NPL levels, the banks’ TLP grew by 13.07 percent at end-December 2014 to Php 574.63 billion from the Php 508.20 billion posted in the same period in 2013.

Meanwhile, the loan loss reserves of TBs stood at 76.98 percent of their gross NPLs in end-December last year. This shows that the industry continues to set aside substantial reserves for potential credit losses.

The TB industry’s NPLs also remained low across economic activities as seen in loans to individuals for consumption purposes; real estate, renting and business activities; agriculture, hunting, forestry and fishing; wholesale and retail trade; and other community, social and personal service activities.

The latest NPL figures indicate TBs’ continued efforts to adhere to sound credit risk management systems and to maintain high loan quality. The Bangko Sentral ng Pilipinas keenly monitors these indicators as part of its efforts to foster the stability of the financial system.

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