PHL bank’s bad loans ratio drops to record low 2.06% in August

Non-performing loans (NPL) or bad loans held by Philippine banks declined to a record low of 2.06 percent in June from 2.18 percent in May, the Bangko Sentral ng Pilipinas reported Friday.   The NPL ratio was also a marked improvement from 2.45 percent in June 2012.   “The month-on-month decline in the industry’s NPL ratio resulted from the simultaneous 2.73 percent cut in NPLs to P69.05 billion from P70.98 billion and the 3.25 percent expansion in total loan portfolio to P3.355 trillion from P3.249 trillion,” the central bank said in a statement.   Bad loans consist of unpaid obligations – under the name of bank clients – that remain unsettled after maturity or settlement date. — VS, GMA News