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KB NPLs and NPAs in April 2003

06.12.2003

The industry’s NPL ratio slightly rose to 15.52 percent from 15.50 percent last month even as the NPL level broke its upward trek with a 0.07 percent contraction, but was outmatched by the 0.22 percent reduction in Total Loan Portfolio (TLP).

Similarly, the NPA ratio increased to 13.72 percent from 13.43 percent last month with the 0.74 percent build-up of NPAs.

This month’s NPL and NPA ratios remained lower than the year ago’s ratios of 18.23 percent and 14.89 percent, respectively.

Net of Interbank Loans (IBL), NPL ratio improved by 0.04 percentage point to 17.44 percent from 17.48 percent last month with the 0.14 percent expansion in regular lending activities (i.e., TLP, net of IBL).

The industry heightened efforts to restructure and foreclose on collateral securities. Surpassing the previous months marginal growth, Restructured Loans (RL) swelled by 4.00 percent to P135.12 billion, whereas Real and Other Properties Owned or Acquired (ROPOA) posted an upsurge of 1.85 percent to P188.83 billion.

The industry, nevertheless, posted favorable NPL and NPA coverages. The NPL coverage ratio (Loan Loss Reserves to NPLs) improved to 50.61 percent from 49.93 percent last month and from 43.93 percent a year ago. This was set off by the 1.29 percent increment in LLR to P128.41 billion. Moreover, as the industry raised its NPA reserves (LLRs plus provision for ROPOA) by an impressive 3.05 percent to P141.32 billion, the NPA coverage ratio (NPA valuation reserves to NPAs) posted a boost from 31.22 percent last month to 31.93 percent.

Ratio of Gross RLs to TLP sustained its advance with a marginal growth of 0.33 percentage point to 8.26 percent from 7.93 percent last month as gross RLs surged by 4.00 percent to P135.12 billion and further induced by the contraction of TLP by 0.22 percent to P1,634.87 billion.

Past due ratio went up further to 16.51 percent from 16.34 percent last month as total past due loans of the industry surged to P272.75 billion from P270.48 billion last month.

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