The Bangko Sentral ng Pilipinas (BSP) stated yesterday that banks’ total residential property or home loans have reported their highest loan amount in four years.
As of the end of the second quarter, the universal/commercial and thrift banks’ residential real estate loans totaled P244.4 billion, 5.1 percent or P11.9 billion higher compared to the first quarter ending in March, and 23.2 percent or by P46.1 billion higher than loans reported in the same period in 2011.
The P244.4 billion home loans was the highest since March of 2008, BSP data showed. During that year, the central bank revised the components of residential real estate loans.
The 38 big banks accounted for 70.2 percent or P8.3 billion of the P11.9 billion quarterly growth and about 80 percent or P36.7 billion of the increase over last year.
The mid-sized thrift banks of which there are 69 under BSP supervision, accounted for 29.8 percent or P3.5 billion of the quarterly increase and 20.3 percent or P9.4 billion year-on-year.
Overall the BSP said the big banks have 57.4 percent or P140.3 billion of total residential real estate loans while thrift banks have 42.6 percent or P104.1 billion.
Further data indicated that as a proportion of the industry’s total loan portfolio of P3.85 trillion, the residential real estate loans have a 6.7 percent ratio, higher than last year’s 6.2 percent because of the faster growth rate of the real estate segment.
Non-performing residential real estate loans improved during the quarter, added BSP. The NPL ratio improved to 4.4 percent as NPLs decreased to P9.7 billion from 9.8 percent in the first quarter.
The thrift banks’ NPL for home loans was better compared to the big banks at 3.5 percent but based on the non-performing residential real estate loans to total NPLs ratio, the big banks’ six percent ratio was “more acceptable” than the thrift banks’ 14.8 percent.
The Monetary Board of the BSP last August amended real estate data capture by including investments in debt and equity securities and by expanding the scope of activities that are real estate-financing related.
BSP Deputy Governor Nestor A. Espenilla said the objective is to improve what are currently being reported by the banks and the ratio of the real estate loans to overall loan portfolio.
To implement the new rules, the BSP is requiring all universal/commercial and thrift banks and their trust departments to submit a quarterly expanded report on real estate exposures on a solo- and consolidated-basis. The first report should use the fourth quarter data for 2012.
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