Banks' bad loans ratio eases to 3-month low

The non-performing loan (NPL) ratio of Philippine banks eased to a three-month low of 3.30 percent in March, from 3.38 percent in February, as the growth in total loan portfolios outpaced the increase in bad debts.

- KEISHA TA-ASAN

This marked the lowest NPL ratio for the country's banking sector since it hit 3.27 percent in December last year, reflecting improved asset quality amid steady economic activity.

Data released by the Bangko Sentral ng Pilipinas (BSP) showed that the soured loans of Philippine banks rose by 11.2 percent to P516.12 billion in March from P464.67 billion in the same month last year.

On the other hand, the industry's loan book grew at a faster rate of 14.2 percent to P15.63 trillion in March from P13.69 trillion a year ago amid sustained credit demand from both households and businesses.