THE gross non-performing loans or “soured loans” of local banks remain low despite the increase in their total loan portfolio, Bangko Sentral ng Pilipinas said Friday.
The gross non-performing loans ratio of universal and commercial banks stood at 1.75 percent of their total loan portfolio as of end-November 2015, lower than 1.77 percent a month ago.
“The U/KBs’ NPL ratio improved slightly from the 1.77 percent recorded at end-October last year as the banks’ TLP rose at a slightly faster pace than their gross NPLs month-on-month. The industry’s NPL ratio has been below 2 percent since November 2014,” Bangko Sentral said in a statement.
Lending by U/KBs in November expanded by 1.6 percent month-on-month to P5.44 trillion. The U/KBs’ gross NPLs, meanwhile, rose by 0.9 percent to P95.37 billion during the period.
While the U/KB industry maintained a low NPL ratio, U/KBs continued to set aside adequate reserves for potential credit losses. At end-November last year, the industry provisioned for 139.98 percent of its gross NPLs. The NPL coverage ratio stood at 140.97 percent a month earlier.
