BSP: Thrift bank loans improve on Banco Filipino closure

Local banks' consumer loan profiles improved in the first quarter of this year due partly to a double-digit drop in non-performing loans (NPLs) of thrift banks after the shutdown of Banco Filipino, according to the Bangko Sentral ng Pilipinas (BSP). The BSP said in a statement that the NPLs of thrift banks (TBs) “fell by 17.6 percent to P12.8 billion from P15.6 billion with the closure of Banco Filipino last March" on a quarter-on-quarter basis. This improvement had the effect of reducing to 8.1 percent the ratio of non-performing consumer loans to total consumer loans, which was at 9.4 percent last year and 8.7 percent last December 31. Thrift banks’ loan posture was better than that of the universal and commercial banks. The TBs’ ratio of non-performing consumer loans to total consumer loans was 6.8 percent while the U/KBs had 9 percent. Banks issued a total of P481.2 billion in consumer loans from January to March this year, higher by P8.5 billion or 1.8 percent than the last quarter of 2010. Residential real estate loans were nearly 40 percent of total consumer loans issued. Auto loans had the second-biggest share at 25.8 percent. Credit card debts were the third-biggest chunk at 24.7 percent. — TJD, GMA News