Big banks Aug bad loans up 6.3% on-mth


But loan-loss provision hefty at 134%

Bad loans at the country’s biggest banks posted their highest month-on-month increase this year in August, rising 6.3 percent from July’s level.

Still, the central bank considered the NPL levels “low” across all economic sectors in August, with data showing loan-loss provisions far exceed total loans at 134 percent.

Figures released by the Bangko Sentral ng Pilipinas (BSP) on Tuesday showed gross non-performing loans (NPL) at universal and commercial banks (U/KBs) by the end of August stood at P101.20 billion, up from P95.19 billion in July.

Year-on-year, bad loans slightly eased from P101.93 billion recorded during the same month a year earlier.

The NPL ratio of U/KBs during the month also expanded but remained at manageable levels, the central bank said.

Based on the BSP data, big banks’ NPLs comprised 2.21 percent of their total loan portfolio (TLP) of P4.59 trillion in August, higher than the 2.11 percent ratio and P4.51 billion TLP recorded in July.

However, the data showed banks’ reserves for potential credit losses, despite falling from 140 percent in July, continued to exceed their NPLs at 134 percent in August.

“The BSP keenly monitors the loan quality of U/KBs as part of its efforts to ensure adherence to high credit standards. This is vital to maintaining the stability of individual banks and of the financial system,” it stated.


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