THE nonperforming loan (NPL) ratio of Philippine banks rose to an 11-month high of 3.45 percent in April, data from the Bangko Sentral ng Pilipinas (BSP) showed.

The figure was up from March's 3.39 percent and the highest since May 2023's 3.46 percent.

Bad loans rose to P480.64 billion in March compared to P464.67 billion in the previous month. Year-on-year, it rose from P427.88 billion.

The central bank defines NPLs as past-due loans where the principal or interest is unpaid for 90 days or more after the due date, including the outstanding balance of loans payable in monthly installments when three or more installments are in arrears.

The BSP data showed that past-due loans rose to P618.04 billion from P588.45 billion in March. These accounted for 4.43 percent of total loans, higher than the previous month's 4.30 percent.

Year-on-year, past-due loans were at 4.13 percent of the total at P518.55 billion.

Restructured loans, meanwhile, declined to P290.37 billion in April from P294.53 billion in the previous month. This amount represents 2.08 percent of banks' gross loan portfolio.

In April last year, restructured loans were higher at P324.38 billion or 2.58 percent of banks' gross loan portfolio.

Meanwhile, lenders' loan loss reserves edged up to P471.35 billion, equivalent to 3.38 percent of total loans. This was lower than the 3.52 percent seen in the same month last year.

The NPL coverage ratio — which indicates banks' allowance for potential losses due to bad loans — was also lower at 98.07 percent from 103.3 percent last year.

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