Bangko Sentral ng Pilipinas : 3rd Quarter 2011 NPL Ratio of Thrift Banks at 6.23 Percent
07/06/2012| 04:05am US/Eastern
The non-performing loans (NPL) ratio of the thrift banking
industry as of end-September 2011 stood at 6.23 percent,
better by 1.98 percentage points from year ago's 8.21 percent
but higher by 0.05 percentage point from previous quarter's
6.18 percent ratio.
The quarter-on-quarter movement in the industry's NPL ratio
came about as total loan portfolio (TLP) contracted faster at
0.92 percent to P364.47 billion from P367.87 billion compared
with the 0.22 percent reduction in delinquent loans to P22.70
billion from P22.75 billion.
Exclusive of interbank loans, the NPL ratio improved by 0.02
percentage point to 6.31 percent from 6.33 percent last
quarter and by 1.99 percentage points from year ago's 8.21
The industry resorted to restructuring and foreclosure
proceedings to lessen the holdings of delinquent loans. The
proportion of restructured loans (RLs) to TLP rose to 1.25
percent from previous quarter's 1.19 percent as RLs grew by
4.31 percent to P4.62 billion from P4.43 billion last
In the same manner, real and other properties acquired (ROPA)
edged up by 0.51 percent to P21.21 billion from last
quarter's P21.10 billion. However, with simultaneous
expansion in gross assets, the ratio of ROPA to gross assets
remained unchanged at 3.60 percent. Nevertheless, this ratio
was still lower than year ago's 4.17 percent.
With higher increment in ROPA outpacing the decline in NPLs,
non-performing assets (NPA) increased by 0.13 percent to
P43.91 billion from previous quarter's P43.85 billion.
However, with faster growth in gross assets, the NPA ratio of
the industry slightly eased to 7.51 percent from 7.52 percent
As loan loss reserves climbed by 1.46 percent to P13.62
billion from previous quarter's P13.42 billion, the NPL
coverage ratio strengthened to 59.99 percent from 59.00
percent last quarter.
Similarly, the NPA coverage ratio widened to 38.10 percent
from 37.74 percent last quarter. This transpired as NPA
reserves went up by 1.10 percent to P16.73 billion from
previous quarter's P16.55 billion.