The industry’s non-performing loans (NPL) ratio slightly improved to 13.83 percent from 13.85 percent last quarter as the 1.68 percent rise in total loan portfolio (TLP) outweighed the 1.51 percent increase in NPLs.
Loan loss reserves (LLR) to NPL or NPL coverage ratio decreased to 34.46 percent from 34.78 percent last quarter with both rural banks (RBs) and cooperative banks (CBs) exhibiting lower coverage ratios of 34.67 percent from 34.86 percent and 32.27 percent from 33.88 percent, respectively, from last quarter.
The ratio of Real and Other Properties Owned or Acquired (ROPOA), gross to gross assets slightly went up to 8.91 percent from 8.90 percent last quarter as ROPOA increased by 2.35 percent. RBs reported a higher ROPOA to gross assets ratio this quarter at 9.26 percent from 9.24 percent last quarter while CBs’ ROPOA to gross assets ratio decreased to 4.13 percent from a quarter ago’s 4.14 percent. Meanwhile, the ratio of Non-Performing Assets or NPA (NPL plus ROPOA) to gross assets improved by 0.05 percentage point to 17.26 percent from 17.31 percent last quarter.
The NPA coverage ratio (LLR plus ROPOA reserves to NPA) was down to 17.90 percent from 18.14 percent a quarter ago as the 1.94 percent increase in NPA outmatched the 0.63 percent hike in NPA reserves.
The ratio of gross restructured loans (RL) to TLP decreased to 2.28 percent from 2.41 percent last quarter as RLs decreased by 3.67 percent or P0.04 billion to P1.17 billion.
Total past due (past due plus items in litigation) of the industry rose by 3.67 percent or P0.31 billion (P8.80 billion from P8.49 billion last quarter) resulting in a higher past due ratio (total past due over TLP) of 17.17 percent against last quarter’s 16.83 percent.