Philippine universal, commercial banks' NPL ratio increases to 1.94%

There's still solid asset quality.

It has been noted that solid asset quality remains as NPL ratio improves to 1.94%.

According to a research note from Maybank ATR Kim Eng, non-performing loans (NPL) ratio of universal and commercial banks further improved to 1.94% in May.

This was from 1.96% last month and from 2.17% a year ago.

Here's more from Maybank ATR Kim Eng:

In absolute amounts, NPLs inched up 0.9% YoY to PHP96.9b while total loan portfolio grew 12.9%. NPL cover remains ample at 141.9%.

Real and other properties acquired declined 8.8% YoY to PHP88b while non-performing assets (NPA) fell 4% to PHP184.97b.

NPA to gross assets ratio improved to 1.84% from 1.87% last month and 2.09% a year ago.