• TBs, RBs and Coop Banks NPLs reach P568B in Q1


    The combined non-performing loans (NPLs) of thrift (TBs), rural (RBs) and cooperative banks reached P568.71 billion at the first quarter this year, data from the Bangko Sentral ng Pilipinas (BSP) showed.

    The bank’s NPLs represented 7.77 percent of their total loan portfolio (TLP), up slightly from the 7.61 percent NPL ratio in the same quarter last year.

    The data added that the banks’ NPLs grew by above 10 percent year-on-year vis-à-vis an 8 percent rise in TLP during the period.

    Meanwhile, the banks’ loan loss reserves for said soured loans stood at 66.52 percent of NPLs in March. It was higher compared to the 64.60 percent figure posted a year earlier.

    “Provisioning for NPLs is a prudential measure for mitigating potential credit losses,” the BSP said.

    The BSP data also showed that thrift, rural and cooperative bank loans represented 10.47 percent, 2.89 percent and 0.20 percent, respectively, of the Philippine banking system’s TLP in March this year.

    TBs posted a 6.13 percent gross NPL ratio in March, lower than the 6.48 percent registered a year ago.

    The central bank noted that the drop in gross NPL ratio was matched by a slight rise in TBs’ loan loss reserves, which grew to 70.43 in March from 69.64 percent last year.

    RBs’ gross NPL ratio stood at 13.26 percent in March, higher than the 11.37 percent posted a year ago. RBs’ loan loss reserves for NPLs, however, increased to 59.80 percent in March from 52.74 percent a year earlier.

    Cooperative banks’ gross NPL ratio rose to 14.22 in March from 10.36 percent a year ago, while their loan loss provisioning dropped to 68.66 percent of NPLs from 77.69 percent during the same period.


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