BSP says RRELS high­est at P244 bil­lion

The Pak Banker - - Front Page -

MANILA

Bangko Sen­tral ng Pilip­inas says to­tal res­i­den­tial real es­tate loans ( RRELs) reached P244.4 bil­lion at end­sec­ond quar­ter 2012, the high­est so far since end-March 2008 with the re­def­i­ni­tion of com­po­nents of RRELs per Cir­cu­lar No. 600 dated 04 Fe­bru­ary 2008.

This was 5.1 per­cent (P11.9 bil­lion) higher than last quar­ter's P232.6 bil­lion and 23.2 per­cent (P46.1 bil­lion) more than year ago's P198.4 bil­lion.

Growth stemmed mostly from U/KBs, which ac­counted for 70.2 per­cent (P8.3 bil­lion) of the P11.9 bil­lion quar­ter-on­quar­ter hike and 79.7 per­cent (P36.7 bil­lion) of the P46.1 bil­lion rise, year-on-year.

On the other hand, TBs held the re­main­ing 29.8 per­cent (P3.5 bil­lion) and 20.3 per­cent (P9.4 bil­lion) of the cited quar­terly and yearly in­cre­ments.

By type of bank, univer­sal/com­mer­cial banks (U/KBs) cor­nered a big­ger share of to­tal RRELs at 57.4 per­cent (P140.3 bil­lion), bet­ter than the 56.8 per­cent (P132.0 bil­lion) reg­is­tered last quar­ter.

Con­se­quently, thrift banks' (TBs) share of RRELs shrank to 42.6 per­cent (P104.1 bil­lion) of to­tal RRELs from 43.2 per­cent (P100.6 bil­lion).

As a pro­por­tion of to­tal loan port­fo­lio (TLP), RRELs main­tained the pre­vi­ous quar­ter's 6.7 per­cent ra­tio fol­low­ing the ap­prox­i­mately equal growth rates earned by TLP (5.8 per­cent) and RRELs (5.1 per­cent).

Said ra­tio how­ever in­creased over year ago's 6.2 per­cent ow­ing to the faster growth rate of RRELs (23.2 per­cent), which was al­most twice that of TLP (13.4 per­cent).

The con­tin­ued growth of RRELs not­with­stand­ing, the qual­ity of home loans im­proved to 4.0 per­cent as the re­duc­tion in non-per­form­ing RRELs to P9.7 bil­lion from last quar­ter's P9.8 bil­lion com­ple­mented the in­crease in RRELs.

Like­wise, non-per­form­ing RRELs to to­tal RRELs eased on a year-on-year com­par­i­son from 5.1 per­cent. In con­trast, non-per­form­ing RRELs to to­tal NPLs ra­tio rose to 7.7 per­cent from 7.4 per­cent last quar­ter al­beit bet­ter than year ago's 7.8 per­cent. De­spite the im­prov­ing loan per­for­mance ra­tios, banks in­creased their buf­fers, reach­ing 43.0 per­cent.

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