MANILA: The proportion of non-performing loans (NPLs) of Philippine banks to their total loans settled at 3.23 percent as of end-December last year, the Bangko Sentral ng Pilipinas (BSP) said.
Data released by the BSP on Thursday showed that the NPL ratio during the month was lower than the 3.41 percent recorded in November 2023.
It, however, increased from 3.16 percent in December 2022.
BSP data showed that as of December 31 last year, gross non-performing loans amounted to PHP446.9 billion, down from PHP454.2 billion in November but higher than PHP398.7 billion in December 2022.
Rizal Commercial Banking Corp. chief economist Michael Ricafort said the NPL ratio in December was still the “lowest since December 2022.”
Ricafort attributed this to the improved business and economic conditions – easing inflation, improved data on employment, and strong economic growth after the pandemic, among others.
“All (these) improved the ability to pay by various borrowers, such as consumers, households, businesses, a
nd other institutions, thereby reducing NPLs,” he said.
Source: Philippines News Agency