The thrift banking industry’s non-performing loans (NPL) ratio in December 2003 improved by 0.42 percentage point to 12.03 percent from 12.45 percent last month as NPLs declined by 3.8 percent to P19.00 billion from P19.75 billion. Likewise, the NPL ratio, net of Interbank Loans narrowed down to 12.50 percent from last month’s 12.98 percent.
In like manner, the non-performing assets (NPA) ratio improved by 0.29 percentage point to 15.72 percent from 16.01 last month. This developed as the level of NPAs decreased by 0.4 percent to P44.08 billion from P44.28 billion last month.
Meanwhile, the NPL and NPA coverage ratios both contracted by 0.06 percentage point and 0.50 percentage point to 39.04 percent and 19.33 percent from 39.10 percent and 19.83 percent, respectively, last month. The preceding resulted from the decline in loan loss reserves by 3.9 percent to P7.42 billion and in NPA reserves by 2.9 percent to P8.52 billion.