Member access

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

Bangko Sentral ng Pilipinas : TBs, RBs and Coop Banks Loan Quality Improves in Q2

11/21/2013 | 05:04am US/Eastern


The combined non-performing loans (NPLs) of thrift, rural and cooperative banks represented 7.32 percent of their total loan portfolio (TLP) of Php 597.57 billion at the end of second quarter this year. 

The gross NPL slightly improved from the 7.77 percent in March 2013 as the banks' NPLs declined by less than one percent amid a five percent quarter-on-quarter rise in TLP. 

The banks' loan loss reserves (LLR) for the soured loans, meanwhile, stood at 68.26 percent of NPLs in end-June from the 66.52 percent figure posted in March 2013. Provisioning for NPLs is a prudential measure for mitigating potential credit losses.

Thrift, rural and cooperative bank loans represented 10.76 percent, 2.74 percent and 0.22 percent, respectively, of the Philippine banking system's TLP amounting to Php 4.36 trillion in June this year.

Thrift banks' (TBs) posted a 5.94 percent gross NPL ratio in June, lower than the 6.13 percent registered in March this year. The drop in gross NPL ratio was matched by a rise in TBs' LLR, which grew to 72.28 in June from 70.43 percent last quarter.

Rural banks' (RBs) gross NPL ratio, meanwhile, stood at 12.36 percent in June, higher than the 11.83 percent posted a year ago. RBs' LLR for soured loans, however, decreased to 59.65 percent in June from 61.54 percent three months ago.

Cooperative banks' gross NPL ratio dropped to 12.38 in June from 28.46 percent in March this year, while their loan loss provisioning increased to 81.26 percent of NPLs from 55.63 percent during the same period.

The monitoring of banks' loan quality is part of measures to ensure that financial intermediaries continue to adhere to high credit standards. This is essential to maintaining financial stability, which is a primary objective of the Bangko Sentral ng Pilipinas.

distributed by
React to this article
Latest news
Date Title
<1m ago Spain retail sales post biggest rise in a year in Oct
1m ago ULTRA ELECTRONICS : *kepler cheuvreux cuts ultra electronics pt to 1950 pence - 'buy'
3m ago RTX A/S : Announcement 66-2014
3m ago CENTRAL BANK OF RUSSIA : The list of organizations mentioned in the point 3.6.1 of the Regulation No. 312-P (The List of the Bank of Russia)
3m ago CENTRAL BANK OF RUSSIA : On cancelling licences of professional securities market participant
3m ago CENTRAL BANK OF RUSSIA : On reissuing forms of licences of professional securities market participant
9m ago GRINDEKS : Riga Stradins University signs the cooperation agreement with «Grindeks»
9m ago FABRYKA OBRABIAREK RAFAMET : Current Report No. 26 27-11-2014 Shareholder's request to change wording of item of Extraordinary General Meeting agenda
9m ago ALTERNATIVE NETWORKS : Voting Rights and Capital
9m ago MYCELX TECHNOLOGIES : Blocklisting Interim Review
Latest news
Hot News 
MIRADA : New Commercial launch - Telefonica Peru
New Britain Palm Oil Takeover Offer to Get Extension For EU Regulators
POWERLAND POWERLAND CONTINUES SUSTAINABLE RECOVERY WITH STRONG THIRD QUARTER RESULT : Powerland AG: Powerland continues sustainable recovery with strong third quarter results (DGAP News)
NOVARTIS' : heart failure medicine LCZ696 granted accelerated assessment by CHMP in Europe
SCAPA : Additional Listing
Most Read News
1d ago WHOLE FOODS MARKET : Jordan named president of Whole Foods’ Rockies division
1d ago GLENCORE : invests in Congo hydropower as solution to blackouts
1d ago SIMON PROPERTY : May Be Looking to Buy Macerich, Recent Transactions Indicate
1d ago MACERICH : 10 Must Reads for the CRE Industry Today (November 20, 2014)
1d ago NAVISTAR : New disaster-relief truck design unveiled
Most recommended articles
9m ago PKP CARGO : says 1300 employees may leave the group
10m agoDJRussian Ruble Falls to New Lows
16m ago India plans to cut stake in state lenders to raise $14.4 billion
24m ago UK house price inflation slows to 11-month low - Nationwide
24m ago E.ON sells majority in U.S. wind farms to Enbridge
Dynamic quotes