MANILA, Philippines - The non-performing loans (NPL) ratio for universal and commercial banks showed an improvement in July, the Bangko Sentral ng Pilipinas (BSP) said.
The NPL ratio, or the proportion of bad debts to outstanding loans, stood at 2.18% in July from 2.45% in the same period last year.
The banks' combined loan portfolio hit P3.37 trillion in July, up 13.1% from only P2.98 trillion in the same period last year.
Bad debts reached a total of P73.36 billion in July, inching up 0.4% from P73.05 billion a year ago.
As of end-March this year, the NPL ratio stood at 2.06, the lowest on record.
The BSP said the proportion of bad debts to the loan portfolio of banks may be considered very comfortable.