The Bangko Sentral ng Pilipinas (BSP) said the non-performing loans (NPL) ratio of universal and commercial banks (U/KBs) as of end-May 2012 improved further to 2.18 percent.
According to data provided by the BSP, the figure is  lower by 0.12 percentage point from the previous month’s 2.30 percent and by 0.62 percentage point from year ago’s 2.80 percent ratio.
The industry’s NPL ratio got better from last month as a result of the combined effect of the 4.52 percent drop in NPLs to P70.98 billion from P74.34 billion and the 0.48 percent growth in total loan portfolio (TLP) to P3,249.47 billion from P3,234.08 billion.
Net of interbank loans (IBL), the NPL ratio eased by 0.14 percentage point to 2.29 percent from last month’s 2.43 percent and by 0.71 percentage point from year ago’s 3.00 percent ratio.
The month-on-month movement took place as the drop in NPLs was complemented by the 1.36 percent expansion in regular loans to P3,104.44 billion from P3,062.84 billion.
Meantime, the restructured loans (RLs) to TLP ratio crawled up to 1.07 percent from last month’s 1.06 percent but went down from year ago’s 1.39 percent ratio. 
The increase in the ratio from last month stemmed from the 0.94 percent rise in gross RLs outpacing the growth in TLP.
Real and other properties acquired (ROPA), gross to gross assets (GAs) stood at 1.63 percent, better than last month’s 1.64 percent and year ago’s 1.94 percent ratio.
The cut in the ratio from last month was due to the 0.75 percent reduction in ROPA, which more than offset the decline in GAs.
The non-performing assets (NPA) to GAs ratio improved to 2.71 percent from last month’s 2.77 percent and from year ago’s 3.26 percent ratio.
The month-on-month easement in the NPA ratio occurred as the 2.28 percent contraction in NPAs surpassed the 0.10 percent decrease in GAs.
The industry’s provisioning against potential credit losses remained adequate.
The NPL coverage ratio (loan loss reserves to NPLs) strengthened to 128.93 percent from last month’s 125.73 percent and from year ago’s 123.31 percent ratio. 
In the same manner, the NPA coverage ratio (NPA reserves to NPA) widened to 66.16 percent from last month’s 65.77 percent and from year ago’s 63.49 percent ratio.