CHALLENGES FOR BIG BANKS CONTINUE IN Q4 2020 AS TOTAL LOANS DECLINE, SOURED LOANS GROW

Aggregate loans from the country’s big banks declined by 3.96% year on year to P9.582 trillion in the fourth quarter, the biggest decline since the 4.17% contraction recorded in the fourth quarter of 2003. Meanwhile, the nonperforming loans ratio, or the ratio of bad loans to total gross loans, was recorded at 3.68% in the fourth quarter. This was the highest since the Bangko Sentral ng Pilipinas introduced a new reporting standard that took effect in the first quarter of 2013.