Uptick in soured loans pushes banks' NPL ratio to 3.38% in Jan

After easing for two straight months, the gross non-performing loan (NPL) ratio of banks rose to 3.38 percent in January from 3.27 percent in December last year.

- By KEISHA TA-ASAN

Latest data from the Bangko Sentral ng Pilipinas showed that the NPLs or soured loans of the banking sector went up by 11.3 percent to P512.83 billion in January from P460.76 billion in the same month last year.

NPLs refer to credit obligations that have not been repaid for at least 90 days past their due date. These loans are categorized as high-risk assets because they indicate a borrower's diminished ability or willingness to meet their financial obligations.

Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the uptick in NPLs to the seasonal slowdown in sales, earnings and overall business activity after the Christmas season.