WebClick Tracer

March 01, 2024

Banks soured loans post 2-digit rise to P462B in January

Soured loans of the country’s banking sector posted a double-digit increase of 16.7 percent to P461.66 billion in January from P395.46 billion in the same month last year, preliminary data from the Bangko Sentral ng Pilipinas (BSP) show.

This was faster than the 4.9 percent increase in bank lending to P11.14 trillion from P10.62 trillion as the industry recovers from the impact of the COVID-19 pandemic.

As a result, the non-performing loan (NPL) ratio of Philippine banks increased to 4.14 percent in January after easing for four straight months to 3.99 percent in December.

The NPL ratio of Philippine banks stayed above four percent from February to November last year due to uncertainties brought about by the COVID-19 pandemic. It peaked last year at a 13-year high of 4.51 percent in July and August before declining steadily to below four percent in December.

Despite the uptick, the NPL ratio of the banking system is far from the double-digit levels seen during the Asian financial crisis.

The past due loans, referring to all types of loans left unsettled beyond payment date, increased by six percent to P539.42 billion, while restructured loans jumped by 81.8 percent to P356.45 billion.

Provisioning for loan losses increased by 8.5 percent to P402.89 billion, translating to an NPL coverage ratio of 87.27 percent.

The BSP sees the NPL ratio of Philippine banks accelerating and peaking at 8.2 percent for this year.


Security Bank posts net income of PHP9.1 billion in 2023

Security Bank Corporation (PSE: SECB) posted net income of PHP9.1 billion in 2023. Total revenues grew 8% year-on-year to PHP43.0 billion. Net interest income increased 19% to PHP34.7 billion. Net interest margin for the full year was 4.49%, higher compared to 4.23% in 2022. Total non-interest income was at PHP8.2 billion. Service charges, fees and commissions grew 15% to PHP6.1 billion, led by increase in fees from credit cards, remittances (which include Instapay fees) and bancassurance.

Read More ...