Banks' bad debt ratio declines to eight-year low
11/20/2009 | 06:44 PM
Soured loans of universal and commercial banks fell to an eight-year low as the industry continued to lend steadily, the Bangko Sentral ng Pilipinas reported on Friday.
Data from the BSP showed that the non-performing loans ratio of universal and commercial banks declined 3.25 percent as of end-September from 3.5 percent as of end-August.
The BSP said the NPL ratio last September was the lowest recorded figure after the ratio peaked at 18.81 percent at end-October 2001. It was also lower by 0.78-percentage point from a year-ago level of 4.03 percent.
The central bank figures showed that the industry’s total loan portfolio grew by 7.65 percent to P2.505 trillion as of end-September from P2.397 trillion as of end-August.
On the other hand, NPLs improved by 2.9 percent to P81.42 billion as of end-September from P83.84 billion as of end-August.
NPLs refer to past due loan accounts whose principal and/or interest is unpaid for 30 days.
The gross assets of universal and commercial banks grew 2.53 percent to P5.311 trillion as of end-September from P5.18 trillion as of end-August while the industry’s non-performing assets (NPA) improved 1.05 percent to P219.8 billion from P222.14 billion.
This resulted to a NPA ratio of 4.14 percent as of end-September from 4.29 percent as of end-August.
Amando Tetangco Jr., BSP governor, earlier said the country’s banking sector has remained fundamentally sound amid the global financial crisis.
A BSP poll among senior bank loan officers showed that banks continued to keep their credit standards unchanged for corporate and individual borrowers after surviving the impact of the financial crisis that started in the United States.
In 1997 when Asia was hit by the financial crisis, the Philippine banking system suffered significant losses from loan defaults that led to a dramatic accumulation of bad loans. - GMANews.TV
Data from the BSP showed that the non-performing loans ratio of universal and commercial banks declined 3.25 percent as of end-September from 3.5 percent as of end-August.
The BSP said the NPL ratio last September was the lowest recorded figure after the ratio peaked at 18.81 percent at end-October 2001. It was also lower by 0.78-percentage point from a year-ago level of 4.03 percent.
The central bank figures showed that the industry’s total loan portfolio grew by 7.65 percent to P2.505 trillion as of end-September from P2.397 trillion as of end-August.
On the other hand, NPLs improved by 2.9 percent to P81.42 billion as of end-September from P83.84 billion as of end-August.
NPLs refer to past due loan accounts whose principal and/or interest is unpaid for 30 days.
The gross assets of universal and commercial banks grew 2.53 percent to P5.311 trillion as of end-September from P5.18 trillion as of end-August while the industry’s non-performing assets (NPA) improved 1.05 percent to P219.8 billion from P222.14 billion.
This resulted to a NPA ratio of 4.14 percent as of end-September from 4.29 percent as of end-August.
Amando Tetangco Jr., BSP governor, earlier said the country’s banking sector has remained fundamentally sound amid the global financial crisis.
A BSP poll among senior bank loan officers showed that banks continued to keep their credit standards unchanged for corporate and individual borrowers after surviving the impact of the financial crisis that started in the United States.
In 1997 when Asia was hit by the financial crisis, the Philippine banking system suffered significant losses from loan defaults that led to a dramatic accumulation of bad loans. - GMANews.TV
