PNB sees NPL ratio to hit 7.5% this year


Posted at Jun 24 2008 09:29 PM | Updated as of Jun 25 2008 05:29 AM


Philippine National Bank (PNB) expects its non-performing loans (NPL) to fall between P7 - 7.5 billion by end-2008, and P6 - 6.5 billion by end-2009, as the bank improves its collection efficiency and restructures more delinquent accounts.

PNB's non-performing loans dropped 47% in 2007, with its bad loans as a percentage of total loans now down to 10.9% last year from 15.89% in 2006.

PNB President Omar Mier said the bank's current non-performing loans portfolio is at about P9.6 - 9.7-B.

Meanwhile, PNB is in discussions with Eton Properties Philippines Inc. for joint venture developments several properties. The properties will serve as PNB's equity in the project. Like PNB, Eton Properties is also controlled by taipan Lucio Tan.

Mier said they plan to enter into joint ventures with Eton for several real and other property assets (ROPA) worth P4 - 4.5 billion and another set of ROPA's worth P4 - 4.5 billion for joint ventures with other companies.

Another P11 billion worth of bad assets would reportedly be sold through auctions, while a portfolio of "damaged accounts" worth P1.6 -1.8 billion would be sold as a bloc. The latter are delinquent accounts with pending litigation and other problems.