Non-performing loans (NPL) ratio of thrift banks rose by 0.37 percentage point to 5.34 percent as of end-December from 4.97 percent as of end-June 2012, the Bangko Sentral ng Pilipinas said Wednesday.
"The expansion in the NPL in real estate, wholesale and retail trade loans of most thrift banks triggered the build-up in the industry's non-performing loans," the central bank noted in a statement.
A non-performing loan is in default or nearly in default. Such loans become totally non-performing after being declared in default for 90 days.
Bangko Sentral said the thrift banking industry's total loan portfolio of P446.56 billion as of end-December accounted for 10.65 percent of the total loans of all Philippine banks and reflected a general uptrend since end-December 2011.
Thrift banks held total assets of P666.17 billion as of end-2012, up by over 9 percent from P607.43 billion a year earlier. — VS, GMA News
