Monday, December 8, 2008

TBs’ NPL ratio up in August ‘08

December 3, 2008 5:44 pm by pna

MANILA, Dec. 3 -– Non-performing loans (NPLs) of thrift banks (TBs) in the country increased by 4.82 percent month-on-month in August 2008 resulting to a 0.29 percentage point jump of the industry’s NPL ratio to 6.63 percent.

The Bangko Sentral ng Pilipinas (BSP) on Wednesday said that amid the increase in TBs NPL ratio from the previous month’s 6.34 percent, the latest figure is 0.23 percentage point lower against year-ago’s 6.86 percent ratio.

It also said that “the industry was able to sustain a single-digit NPL ratio for the past 41 months and pinned it below the pre-crisis ratio of 7.74 percent (as of end-June 1997) for the past 14 months.”

Relatively, the industry’s NPL ratio exclusive of interbank loans (IBL) also rose to 7.08 percent from month-ago’s 6.90 percent since the higher NPLs surpassed the 2.20 percent growth in core lending, which amounted to P279.38 billion.

The central bank, however, said that the latest NPL ratio exclusive of IBL is better than the 9.12 percent during the same period last year after core lending went up by 19.17 percent year-on-year.

Restructured loans (RLs) also went up to P4.57 billion last August, 2.48 percent higher month-on-month, making the RLs to total loan portfolio (TLP) ratio higher at 1.52 percent from the previous month’s 1.49 percent.

An increase was also noted in the industry’s ratio on real and other properties acquired (ROPA), otherwise known as foreclosed assets, over gross assets (GAs) to 5.53 percent from 5.44 percent a month ago after foreclosed assets jump by 1.70 percent to P27.49 billion, “offsetting the negligible increment in GAs.” Year-ago’s ratio is lower at 6.83 percent.

And because of the higher NPLs, TBs non-performing assets (NPA) ratio went up to 9.55 percent from month-ago’s 9.28 percent but is better than year-ago’s 10.18 percent.

The NPL coverage ratio went down by 0.61 percentage points to 50.89 percent from last July’s 51.50 percent but this is better than year-ago’s 50.40 percent.

NPA coverage ratio stood at 27.89 percent from 27.79 percent last July because of the 3.33 percent improvement in NPA reserves. The latest NPA coverage ratio is better than year-ago’s 26.79 percent ratio. (PNA)

posted at: balita.ph

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