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THE
diminishing incidence of soured loans among banks has
started approximating levels attained prior to the
regionwide financial crisis in 1997, according to the
Bangko Sentral ng Pilipinas.
As at
end-November 2006, the banks’ nonperforming loans moved
lower still to 6.96 percent, or 0.2 percentage point
better than the October average of 7.16 percent and from
year ago of 8.76 percent.
In
absolute terms, the banks’ soured loans dropped in only
a month by P1.22 billion to only P140.98 billion, even
as their total loan portfolio grew by P40.11 billion to
P2.026 trillion.
Net of
so-called interbank loans, the industry’s NPL Ratio,
improved by 0.15 percentage point to 8.47 percent from a
month ago of 8.62 percent with their regular loans
lifting by 0.94 percent.
Loan
restructuring slowed during the month, resulting in the
lowering also of restructured loans as percentage of the
total loan portfolio to 4.63 percent in November from
4.75 percent in October.
The BSP
reported progress in the sale of foreclosed properties,
its stock of real and other properties acquired or ROPA
having fallen by 3.41 percent to P180.12 billion from
P186.47 billion.
As a
result, the ROPA to gross assets ratio fell to 4.15
percent from 4.39 percent.
Funds
set aside as reserve for nonperforming assets fell
during the month to just P127.05 billion, translating to
a 41.09-percent NPA coverage ratio or an improvement
from 41.47 percent the previous October.
Loan-loss reserves in November totaled only P110.67
billion from P112.93 billion the previous month and
P118.05 billion a year earlier. |
