Thrift banks Q2 NPL ratio down at 4.83%

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GRoss non-performing loans (NPL) at thrift banks in the Philippines fell sequentially in the second quarter of this year to 4.83 percent of the segment’s P562.85 billion total loan portfolio, the Bangko Sentral ng Pilipinas (BSP) said in a statement on Friday.

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The new ratio was lower than the 4.94 percent recorded in the earlier quarter as the amount of NPLs carried by thrift banks dropped in relation to the higher total loan portfolio, the BSP said.

“This decline in the NPL comes amid a more conservative handling of reserves for loan- losses. Thrift banks set aside loan-loss reserves equivalent to 70.27 percent of their gross NPLS in June, [which is]slightly higher than the 69.37 percent posted a quarter earlier,” the BSP added.

The banks’ NPL fell by 2.44 percent to P27.16 billion in June from the same time last year.

Total loans portfolio, on the other hand, was 2.75 percent higher at P562.85 billion as of end-June from P547.79 billion in the comparative period.

“The NPLs of the thrift bank industry also remained low across economic activities as seen in real estate, renting and business activities; loans to individuals for consumption purposes; financial intermediation; wholesale and retail trade; agriculture, hunting, forestry and fishing; and other community, social and personal service act,” the BSP said.

“The latest NPL figures indicate the bank’s continued efforts to adhere to sound credit risk management systems and to maintain high loan quality. These are essential in sustaining the viability of individual banks and in maintaining the overall stability of the domestic financial system,” it added.

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