The Non-Performing Loan (NPL) ratio of the industry went up to 13.00 percent from last month’s 12.82 percent as NPLs expanded by 2.04 percent to P19.54 billion. Net of Interbank Loans (IBL), NPL ratio also rose to 13.50 percent from last month’s 13.28 percent.
The Non-Performing Assets (NPA) ratio, likewise rose to 16.31 percent from 16.16 percent a month ago as NPAs grew by 1.31 percent to P43.08 billion.
This month’s NPL and NPA ratios were nonetheless lower compared to the previous year’s NPL and NPA ratios of 13.22 percent and 17.84 percent, respectively.
The NPL coverage ratio [Loan Loss Reserves (LLR) to NPL] narrowed down to 37.71 percent from 38.29 percent last month as the 0.48 percent increment in LLR to P7.37 billion was outpaced by the higher increase in NPL. Moreover, NPA coverage ratio [LLR + provisions for Real and Other Properties Owned or Acquired (ROPOA) to NPA] receded to 19.56 percent from 19.72 percent last month, as the 1.31 percent hike in NPAs offset the 0.49 percent increase in NPA reserves to P8.43 billion.
Gross restructured loans (RL) to TLP ratio slightly slid to 2.31 percent from 2.32 percent last month as RLs dropped by a 0.03 percent to P3.49 billion. ROPOA to Gross Assets, meanwhile, was maintained at 9.72 percent from the previous month as ROPOA inched up by 0.41 percent to P25.8 billion while Gross Assets also grew by 0.38 percent to P264.17 billion.