Bangko Sentral ng Pilipinas : Cooperative Banks’ NPL Ratio Improves Anew to 7.44 Percent in the 3rd Quarter of 2011
07/06/2012| 04:05am US/Eastern
As of end-September 2011, the non-performing loans (NPL)
ratio of the cooperative banking industry improved further by
0.67 percentage point to 7.44 percent from last quarter's
8.11 percent and by 0.91 percentage point from 8.35 percent
ratio a year ago.
The industry's NPL ratio eased from last quarter as NPLs
contracted by 4.17 percent to P0.93 billion from last
quarter's P0.97 billion while total loan portfolio (TLP)
simultaneously expanded by 4.45 percent to P12.43 billion
from P11.90 billion.
In terms of the three main geographical regions, cooperative
banks in Mindanao reported the best NPL ratio at 5.26 percent
compared with cooperative banks in Luzon and Visayas which
posted NPL ratios of 7.93 percent and 8.98 percent,
Meanwhile, the ratio of restructured loans (RLs), gross to
TLP slightly rose to 0.98 percent from last quarter's 0.96
percent due to the 7.08 percent rise in RLs to P0.12 billion
outpacing the growth in TLP.
On the other hand, real and other properties acquired
(ROPA), gross, declined by 0.99 percent to P0.40 billion from
last quarter's P0.41 billion resulting to a lower ratio of
ROPA to gross assets of 2.34 percent from 2.42 percent last
With lower levels of delinquent loans and ROPA,
non-performing assets (NPA) decreased by 3.22 percent to
P1.33 billion from last quarter's P1.37 billion. Hence, the
NPA ratio of the industry eased to 7.75 percent from 8.21
percent last quarter as a result of the decline in NPAs
coupled with the rise in gross assets.
As a result of the combined effect of the contraction in NPLs
and the 5.45 percent expansion in loan loss reserves to P0.73
billion from last quarter's P0.69 billion, the NPL coverage
ratio strengthened to 79.03 percent from 71.82 percent last
Likewise, the NPA coverage ratio widened to 57.79 percent
from last quarter's 53.07 percent as the 5.40 percent growth
in NPA reserves to P0.77 billion from P0.73 billion last
quarter was complemented by the reduction in NPAs.