Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  News


Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

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

share with twitter share with LinkedIn share with facebook
share via e-mail
11/21/2013 | 11:04am CET


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
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news
Date Title
12:35p LONDON STOCK EXCHANGE : welcomes Welsh medical device manufacturer Creo Medical Group’s AIM IPO
12:35p CHARLES TAYLOR : Director PDMR Shareholding - 9 December 2016 - Jeffrey More
12:35p CHINA GREEN : Announcements and Notices - Profit Warning
12:34p NIELSEN : Total Commitment To Total Audience
12:34p DISCOVERY COMMUNICATIONS : The Brown Family Returns for an All-New Season of 'Alaskan Bush People' Premiering January 4 at 9PM - Discovery Communications, Inc.
12:32p Mellanox begins shipments of ConnectX-5 adapter to leading server and storage OEMs and key end-users
12:32p CIENA : South Africa's DFA automates and virtualises service offerings using Ciena Blue Planet
12:32p Telkomsel debuts 4.5G in nine Indonesian cities
12:32p HND FILMS : reinventing itself with SAP Business One from 4most
Latest news
Hot News 
8.70%GEMALTO : 3M to sell identity management business to Gemalto
-2.25%FTSE gains, on track for best week since July
2.25%France's Elior eyes further profit, sales growth
-2.64%UK watchdog defers decision on deadline for PPI claims against banks
1.59%AIXTRON : China criticizes U.S. for blocking German Aixtron deal
Most Read News
05:48a Macau eases gambling crackdown concerns after casino shares tumble
12/08 U.S. SEC enforcement chief Ceresney to depart at year-end
06:01a TOKYO ELECTRIC POWER : Japan nearly doubles Fukushima disaster-related cost to $188 billion
12/08 GEMALTO : 3M to sell identity management business to Gemalto
02:48a France's Elior eyes further profit, sales growth
Most recommended articles
12/02 Platts considers first addition to Brent basket since 2007
06:25a AIXTRON : considers partial sell-off after Chinese deal blocked
06:17a FTSE gains, on track for best week since July
06:14a Recruiter SThree says annual profit to beat consensus
06:10a BRP : Ski-Doo snowmobile maker's profit rises 20 percent