As of end-December 2004, loan quality improved as the non-performing loans (NPL) ratio of the thrift banking industry dropped to 10.96 percent from 11.05 percent last month and 12.08 percent last year. This developed as the 1.7 percent hike in NPLs was outmatched by a 2.5 percent expansion in total loan portfolio (TLP) from last month.
Exclusive of interbank loans (IBL), the NPL ratio, in contrast, rose to 11.37 percent from last month’s 11.31 percent. This transpired as the rise in NPLs outpaced the 1.2 percent expansion in regular lending to P163.07 billion from P161.13 billion last month. This month’s ratio, nonetheless, is an improvement from last year’s 12.55 percent.
Meanwhile, the real and other properties owned or acquired (ROPOA) to gross assets ratio fell to 10.99 percent from 11.11 percent last month. This came about as the 1.4 percent climb in ROPOA to P34.66 billion was surpassed by the growth in gross assets. This month’s ratio, however, was still higher than the 10.25 percent ratio posted last year.
The ratio of restructured loans (RLs) to TLP stood at 2.51 percent, down from 2.57 percent last month but up from 2.45 percent last year. The cut in the ratio was fueled by the 0.23 percent reduction in RLs to P4.28 billion from P4.29 billion last month.
The non-performing assets (NPA) ratio improved to 15.85 percent from 16.07 percent last month and 16.16 percent last year. This took place as the 1.3 percent increase in NPAs was trounced by the 2.7 percent rise in gross assets from last month.
The NPL coverage ratio widened to 37.04 percent from 36.49 percent last month as the 3.3 percent growth in LLRs to P6.87 billion dampened the effect of the NPL hike. This month’s ratio, however, was lower than the 38.84 percent last year.
Similarly, the NPA coverage ratio expanded to 17.18 percent from the 16.83 percent ratio a month ago. The improvement stemmed from the 3.4 percent increase in NPA reserves to P8.55 billion from P8.27 billion. But this month’s ratio was still lower than the 18.70 percent ratio last year.