Loans for cars and housing up 5 percent in Q1 2011

Automobile loans posted the highest growth among consumer loans in the first quarter of 2011, rising by 5.6-percent to P124.2 billion as of end-March, the Bangko Sentral ng Pilipinas (BSP) said on Monday. In a statement, the BSP also noted that total residential real estate loans (RREL) during the period stood at P192.1 billion, or a 2-percent jump from the previous quarter's P188.3 billion. By industry group, universal and commercial banks accounted for 96.6 percent of the total auto loans in the quarter, amounting to about P120.2 billion. Thrift banks, on the other hand, made up the remaining 3.4 percent, representing 0.6 percent of the total quarter-on-quarter increase. The ratio of non-performing auto loans to the total auto loans, meanwhile, eased to 4.4 percent during the period. The non-performing auto loans to non-performing loans (NPL) ratio increased slightly to 4.1 percent “was due to declining total NPLs that accompanied the increase posted by non-performing auto loans during the period," the BSP explained. Rising real estate loans RRELs of universal and commercial banks during the quarter, meanwhile, climbed by 5.1-percent increase P96.9 billion in loans in the first quarter. By industry, universal and commercial banks and thrift banks held almost equal share in the total RRELs, which 50.4-percent and 49.6-percent shares, respectively. The BSP noted that the non-performing RRELs to total RRELs ratio improved to 5.1 percent while the non-performing RRELs to total NPLs ratio settled to 7.4 percent. The BSP also said even with the sharp 43.4 percent drop in the non-performing loans of thrift banks during the period, universal and commercial banks still fared better due to the closure of Banco Filipino in March. "However, despite having higher [ratios], thrift banks had better provisions for losses," it said. Thrift banks had higher loan loss reserves for RRELs to non-performing RRELs ratio of 53.6 percent versus the 15.3 percent provision of universal and commercial banks, according to the BSP. —ELR/TJD, GMA News