The industry’s non-performing loans (NPL) ratio improved to 13.68 percent from 13.83 percent last quarter as the 3.16 percent rise in total loan portfolio (TLP) outweighed the 2.03 percent increase in NPLs. This quarter’s ratio also reflected an improvement from a year ago’s 14.82 percent.
The ratio of gross restructured loans (RL) to TLP declined to 2.10 percent from 2.28 percent last quarter as RLs decreased by 4.73 percent or P0.06 billion to P1.11 billion.
Total past due (past due plus items in litigation) of the industry rose by 3.52 percent or P0.31 billion (P9.11 billion from P8.80 billion last quarter) resulting in a higher past due ratio of 17.23 percent against last quarter’s 17.17 percent.
The ratio of Real and Other Properties Owned or Acquired (ROPOA), gross to gross assets went down to 8.62 percent from 8.91 percent last quarter as ROPOA decreased by 0.84 percent. RBs reported a lower ROPOA to gross assets ratio this quarter at 8.94 percent from 9.26 percent last quarter while CBs’ ROPOA to gross assets ratio increased to 4.19 percent from a quarter ago’s 4.13 percent. Meanwhile, the ratio of Non-Performing Assets or NPA to gross assets improved by 0.33 percentage point to 16.93 percent from 17.26 percent last quarter. Likewise, this quarter’s NPA ratio was lower than a year ago’s 17.89 percent.
Loan loss reserves (LLR) to NPL or NPL coverage ratio increased to 34.91 percent from 34.46 percent last quarter. Likewise, rural banks’ (RBs) coverage ratio increased to 35.20 percent from 34.67 percent while cooperative banks (CBs) exhibited a lower coverage ratio of 31.91 percent from 32.27 percent from last quarter.
The NPA coverage ratio went up to 18.35 percent from 17.90 percent a quarter ago as NPA reserves increased by 3.07.