Banks’ bad loan ratio eases in February

Universal and commercial banks’ bad loan ratio slightly eased in February — the 17th consecutive month that the ratio has been below 4 percent — following a cut in bad loans and a rise in their lending portfolio. As of end-February, the bad loan ratio eased by 0.04 percentage point to 3.18 percent from the prior month and by 0.55 point from the year-ago level, the central bank said on Monday. Bad loans went down by 1.12 percent to P82.28 billion, while total loans went up by 0.08 percent to P2.58 trillion. Nonperforming loans are those whose interest has become due after nonpayment for 90 days, and collection of the principal amount is uncertain. The central bank noted that excluding bank-to-bank loans, the bad loan ratio also improved to 3.62 percent from 3.7 percent in January and 4.19 percent a year earlier. Meanwhile, the ratio of banks’ bad assets to gross assets improved by 0.07 point to 3.87 percent from January and by 0.71 point from a year earlier. Nonperforming assets slid by 0.93 percent, while gross assets grew by 0.78 percent, the central bank said. The ratio of real and other properties acquired — mostly foreclosed properties — to gross assets got better by 0.04 point to 2.38 percent from the January figure and by 0.41 point from a year earlier. — N.P. Aquino, GMANews.TV