The rural banking industry’s NPL ratio slightly improved to 14.99 percent from 15.02 percent last quarter as the 2.29 percent rise in TLP outpaced the 2.10 percent increase in NPL level. NPL ratios of cooperative rural banks (CRBs) improved to 14.94 percent from 16.23 percent while regular rural banks (RRBs) deteriorated to 15.00 percent from 14.92 percent a quarter ago.
However, NPL coverage ratio (LLRs to NPLs) contracted to 35.70 percent from 36.37 percent due to the higher NPL level. This downtrend in coverage ratios was noted in all groups except for CRBs, which inched up to 36.76 percent from 35.11 percent last quarter.
The ratio of ROPOA-gross to total assets (gross of NPA reserves) went up to 9.39 percent from 9.10 percent last quarter on account of increased ROPOA holdings this quarter. Likewise, ratio of NPAs (ROPOA + NPLs) to gross assets rose to 18.50 percent from 18.30 percent last quarter.
NPA coverage ratio (LLRs + Reserves for ROPOA to NPAs) reduced to 18.68 percent from 19.38 percent in the previous quarter as the 4.17 percent hike in NPA level highly surpassed the 0.40 percent rise in NPA loss reserves. All other sub-groups decreased their coverage ratios except for CRBs, which climbed to 27.56 percent.
Meanwhile, the ratio of the reported gross restructured loans (RLs) to TLP contracted to 2.32 percent from 2.65 percent over the previous quarter as loan level grew by 2.29 percent and RLs lessened by 10.62 percent.
On a regional basis, Western Visayas still posted the highest NPL ratio at 19.28 percent while CARAGA Region was lowest at 7.75 percent. Coverage ratio ranged from 31.24 percent (Cagayan Valley) to 55.36 percent (Eastern Visayas).