The Non-Performing Loans (NPL) ratio of the industry slightly rose to 12.82 percent from 12.80 percent last month as NPLs increased by 1.58 percent to P18.96 billion. Net of Interbank Loans (IBL), NPL ratio also moved up to 13.25 percent from 13.16 percent last month as regular lending activities (Total Loan Portfolio, net of IBL) merely expanded by 0.91 percent during the month.
On the other hand, the Non-Performing Assets (NPA) ratio improved to 17.16 percent from 17.29 percent a month ago as the 1.12 percent expansion in Gross Assets to P258.90 billion outmatched the 0.36 percent increase in NPAs to P45.41 billion.
This month’s NPL and NPA ratios nevertheless remained lower than last year’s NPL and NPA ratios of 14.33 percent and 18.73 percent, respectively.
The NPL coverage ratio narrowed down to 38.63 percent from 39.20 percent the previous month as the 0.11 percent rise in Loan Loss Reserves (LLRs) to P7.33 billion was outweighed by the 1.58 percent increase in NPLs. Likewise, NPA coverage ratio [LLR + provisions for Real and Other Properties Owned or Acquired (ROPOA) to NPA] slid to 18.83 percent from 18.88 percent last month as the hike in NPAs by 0.36 percent dampened the 0.09 percent increase in NPA reserves (LLR and provisions for ROPOA).
Restructured Loans (RL), meanwhile declined by 11.27 percent to P3.19 billion, which lowered RL to TLP ratio to 2.14 percent from 2.45 percent last month. Likewise, ROPOA to Gross Assets ratio receded to 9.80 percent from 9.96 percent last month as ROPOA fell by 0.53 percent to P25.47 billion.