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Update on NPLs of Thrift Banks as of April 2002


The thrift banking industry sustained the quality of its loan portfolio as its Non-Performing Loan [NPL] ratio (NPL to total loan portfolio) remained practically unchanged at 14.41 percent this April from last month’s 14.42 percent as the 1.51 percent NPL hike from P20.49 billion to P20.80 billion closely matched the 1.57 percent total loan expansion from P142.07 billion to P144.29 billion. Previous year’s NPL ratio however stood lower at 11.98 percent. Net of Interbank Loans, NPL ratio climbed to 15.11 percent compared to 15.05 percent last month and 12.72 percent last year.

NPL coverage [loan loss reserves (LLR) to NPL] was reduced to 45.35 percent from 45.72 percent a month ago as the increase in loan loss reserves by 0.70 percent to P9.43 billion fell short of the 1.51 percent growth in NPLs to P20.80 billion. Last year’s ratio was higher at 47.88 percent.

The ratio of gross restructured loans (RLs) to TLP rose this month to 2.75 percent from 2.71 percent last month and 2.40 percent last year as 3.00 percent growth in RLs to P3.97 billion outpaced the 1.57 percent loan expansion during the period.

Asset quality slightly weakened as the non-performing assets [NPA] ratio (NPL+ ROPOA Gross to Gross Assets) inched up 18.80 percent from 18.67 percent last month, as the growth in NPAs by 2.67 percent from P46.93 billion to P48.19 billion outpaced the increase in gross assets by 1.95 percent from P251.35 billion to P256.26 billion. NPA ratio was lower last year at 15.76 percent.

NPA coverage ratio (LLR + provisions for ROPOA to NPA) dropped to 21.36 percent compared to 21.78 percent last month as the 0.69 percent reserve hike from P10.22 billion to P10.29 billion fell short of the 2.67 percent growth in NPA from P46.93 billion to P48.19 billion.

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