Digital banks’ NPL ratio at near 2-year low

DIGITAL BANKS’ nonperforming loan (NPL) ratio fell to anear two-year low in May as soured debts declined even as they disbursed more loans, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.

- 

The digital banking sector’s gross NPL ratio declined to 7.15% as of May from 9.5% at end-April and 20.64% a year prior. This was the lowest ratio seen since the 6.1% recorded in June 2023.

The BSP began consolidating data from digital banks starting March 2023.

The data showed that digital banks’ gross nonperforming loans were at P3.87 billion as of May, 21.66% lower than the P4.94 billion seen a year prior.

Loans are considered nonperforming once they remain unpaid for at least 90 days after the due date. These are deemed risk assets since borrowers are unlikely to pay.

Meanwhile, the sector’s total gross loan portfolio, exclusive of interbank loans receivable, was at P54.097 billion, more than doubling from the P23.92 billion in the comparable year-ago period.