The Non-Performing Loan (NPL) ratio of the thrift banking industry as of end December 2001 dropped to 12.03 percent from 12.18 percent last month due to decline in the NPL level by P0.17 billion or 1.01 percent to P16.91 billion even as total loans rose by P0.33 billion or 0.23 percent to P140.53 billion. Previous year’s ratio however, was lower at 11.33 percent. Net of Interbank Loans, NPL ratio receded at 12.45 percent from 12.71 percent last month and 11.88 percent last year.
The P0.13 billion or 1.52 percent hike in loan loss reserves accompanied by the 1.01 percent drop in NPLs propped up the NPL coverage ratio [loan loss reserves (LLR) to NPL] this month, which rose to 51.13 percent from 49.86 percent a month ago.
Gross restructured loans (RLs) decreased this month by 2.65 percent to P3.66 billion or equivalent to 2.60 percent of TLP from P3.76 billion or 2.68 percent of TLP last month. RLs, however, stood lower last year at P3.27 billion or 2.44 percent of TLP.
Overall asset quality, on the other hand, slightly weakened as reflected by the Non-Performing Assets [NPA] ratio (NPLs+ Gross Real and Other Properties Owned and Acquired (ROPOA), to Total Assets), which inched up to 16.85 percent from 16.79 percent as the 1.97 percent expansion in NPAs from P41.61 billion to P42.43 billion overtook 1.61 percent growth in total assets (incl. of NPA reserves) to P251.82 billion. Growth in NPAs was largely influenced by the rising inventory of ROPOA (gross) holdings, which grew by another 4.05 percent from P24.52 billion a month ago to P25.52 billion this month. Year ago level stood lower at P20.99 billion.>
NPA coverage ratio (LLR + provision for ROPOA to NPA) narrowed down to 22.31 percent from 22.79 percent last month as a result of the P0.02 billion or 0.20 percent drop in reserves to P9.46 billion and the 1.97 percent hike in NPAs. Year ago’s NPA coverage ratio was higher at 24.54 percent.