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Update on NSSLAs as of December 2002


As of end-December 2002, the 85 non-stock savings & loan associations (NSSLAs) operating in the country sustained a strong performance, as asset levels reached P54.472 billion, up by P6.579 billion or 13.74 percent on a year-on-year basis or a 0.52 percent increment a quarter ago. Profitability leveled off as reflected by return on assets (ROA) and return on equity (ROE) which dipped to 36.98 percent and 42.61 percent respectively, compared to 38.64 percent and 45.25 percent a year ago. In absolute amounts, however, net income after tax (NIAT) at P6.367 billion, exceeded year ago level by P.056 billion or .89 percent.

Increased holdings of Cash and Due from Banks by 2.15 percent three months ago to P3.233 billion boosted the industry’s liquidity position during the quarter.  Total loan portfolio which comprised 83.49 percent of total assets, stood at P45.479 billion, for a growth of P6.027 billion or 15.28 percent from year ago level.  Deposits rose to P4.011 billion from P3.953 billion three months ago and P3.526 billion a year ago, for an increase of 1.47 percent and 13.75 percent, respectively. Percent growth in deposits outmatched loan hikes during the quarter which trimmed down loans to deposit ratio to 1.133.86 percent from 1,145.76 percent three months ago although still higher compared to year ago’s 1,118.89 percent.  

Overall loan quality of the industry slightly weakened as non-performing loans (NPLs) moved up by 1.171 percent to P2.802 billion, an increase of P.047 billion three months ago. This raised NPL ratio to 6.16 percent from 6.08 percent three months ago. Incremental NPLs, percentage-wise and in absolute terms outmatched additional reserves for loan losses. This caused NPL coverage ratio to recede to 83.12 percent from 83.56 percent last quarter though much higher than 64.39 percent a year ago.

Buildup in the inventory of NPLs and Real and Other Properties Owned or Acquired (ROPOAs) weighed down on asset quality as indicated by increased holdings of non-performing assets (NPAs) which swelled by 12.37 percent to P3.098 billion, from P2.757 billion a year ago and by 1.61 percent compared to last quarter. ROPOAs also grew by 0.68 percent to P0.296 billion from P0.294 billion three months ago and P0.224 billion a year ago. Compared to 5.76 percent a year ago, NPA ratio level stood lower at 5.69 percent at end-December 2002 although slightly higher than 5.63 percent last quarter.

The total capital accounts of NSSLAs peaked at P47.573 billion from P41.288 billion a year ago and P47.245 billion in previous quarter, for an increase of P6.285 billion or 15.22 percent and P0.328 billion or 0.69 percent, respectively. The industry remained highly solvent as total capital accounts to total assets ratio stood at 87.33 percent, up from 87.18 percent three months ago and 86.21 percent a year go.

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