Member access

4-Traders Homepage  >  News

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
Recommend:
0

11.21.2013

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
Recommend :
0
React to this article
Latest news
Date Title
2m ago PREMIER FARNELL : element14 to present the newest dev kit solutions at ElectroneX 2014 in Sydney
2m ago HELVETIA : finalises takeover of Basler Austria
6m ago PubliGroupe with positive 1st half of 2014 operating result – strong digital growth – completion of Swisscom offer on 5 September 2014
7m ago ROBYG : Current Report no 61 - Conclusion by ROBYG S.A. of the Interest Rate Swap transaction
7m ago GLOBUS MARITIME : August 28, 2014 - Globus Maritime Announces Results of Annual Meeting of Shareholders
7m ago ELIA : Half year results 2014
7m ago SBM OFFSHORE : Announces Completion of Real Estate Divestment
9m ago MORGAN STANLEY : plans natural gas export plant in new commodities foray (Exclusive)
9m ago PUBLIGROUPE : with positive 1st half of 2014 operating result – strong digital growth – completion of Swisscom offer on 5 September 2014
11m ago SBM OFFSHORE : Announces Completion of Real Estate Divestment August 29, 2014
Latest news
Advertisement
Hot News 
NIMBLE STORAGE : Posts Second Quarter 2015 Financial Results
DESTINATION XL : to Present at CL King's Annual Best Ideas Conference Presentation to be Webcast Live
BALOISE : Sale of Basler Austria completed
HC : Clarification announcement
TMX : Montreal Exchange Sets New Volume Record
Most Read News
1d ago CARTER : Announces Participation at the Goldman Sachs Global Retailing Conference
1d ago UR ENERGY : Completes Technical Report on Shirley Basin Uranium Project
1d ago WELLS FARGO : CEO Shares Company Role in Community and Environment
1d ago VIRGIN AUSTRALIA : annual net loss triples, forgoes guidance
1d ago ROYAL GOLD USA : Announces Fourth Quarter Dividend
Most recommended articles
8m ago MORGAN STANLEY : plans natural gas export plant in new commodities foray (Exclusive)
25m ago Euro Looking for a Lifeline in Inflation Data as ECB Meeting Looms
31m ago Japan fund managers raise allocations to U.S. stocks and bonds in August
36m ago CHINA UNICOM HONG KONG : Tesla Motors, China Unicom to build charging facilities in 120 Chinese cities
39m ago ECB's Nowotny says worried about euro zone economy
Dynamic quotes  
ON
| OFF