Bad loans ratio eases to 2.75 pct in May

MANILA, Philippines (Xinhua) - The non-performing loans (NPL) ratio of Philippine universal and commercial banks (U/KBs) eased to 2.75 percent in May, the country's central bank said today.

This is the ninth consecutive month that this ratio has been below or equal to three percent.

The central bank said in a statement that May's figures reflect the steady decline in the NPL ratio for the past few years and the local banks' strong credit risk management.

The improved NPL ratio came with the 1.10 percent expansion in the total loan portfolio (TLP).

The central bank said U/KBs continue to pro-actively set aside reserves for potential losses from loans. As of May, the gross NPL coverage ratio is at 128.50 percent.