CEBU FEDERATION OF RURAL BANKS, CEBU INC.

Taiwan

NPL Ratio of Rural and Coop Banks Declines


06.17.2015

The non-performing loans (NPLs) of rural (RBs) and cooperative banks (CBs) represented 11.85 percent of the combined total loan portfolio (TLP) of these banks at end-2014.

The latest figure is the lowest gross NPL ratio posted collectively by RBs and CBs since the 11.49 percent recorded at end-September 2012.

Compared with September 2014 figures, the NPL ratio for RBs and CBs declined following a rise in the banks’ TLP and a slight decrease in their gross NPLs.

At end-2014, the banks’ TLP stood at Php 138.44 billion, 2.84 percent higher than the Php 134.61 billion posted a quarter earlier. The gross NPLs of RBs and CBs, on the other hand, dropped by 0.45 percent from Php 16.48 billion to Php 16.40 billion during the period.

Meanwhile, the banks’ reserves for potential credit losses also rose quarter-on-quarter. At end-2014, RBs and CBs provisioned for 58.30 percent of their gross NPLs. The banks’ NPL coverage ratio stood at 57.58 percent at the end of the third quarter last year.