Local banks have lent a total Php518.6 billion pesos to the property sector in 2011 of which real estate loans accounted for the bulk of 97.5 percent, the Bangko Sentral ng Pilipinas (BSP) reported.
Based on the BSP data, the banking sector's exposure to the property market was 6.8 percent higher than the 2010 figure.
The banks' property sector exposure refers to real estate loans and property-related securities, while real estate loans refer to borrowings for housing and commercial developments.
Of the total amount, BSP said real estate loans in 2011 amounted to Php505.87 billion pesos, 19.96 percent higher compared to end-2010's total loans.
Of this amount, Php478.93 million pesos is current real estate loans and Php25.36 billion pesos is non-performing real estate loans. The sourced loans are lower compared to 2010's Php28.5 billion and the third quarter of 2011's Php25.97 billion pesos.
Data show that universal, commercial and thrift banks' non-performing real estate loans ratio improved to five percent from previous quarter's 5.5 percent and from 2010's 6.8 percent ratio.
As a percentage of total loan portfolio for 2011, the central bank noted that delinquent real estate loans dipped to 0.7 percent from September 2011's 0.8 percent.
The non-performing residential real estate loans ratio, in the meantime, stood at 4.3 percent from 4.7 percent end-September 2011 but was better than the non-performing commercial real estate ratio of 5.5 percent from the previous quarter's 6.1 percent.
At the end of 2011, residential real estate loans totaled Php220.84 billion pesos, higher than previous quarter's Php207.4 billion pesos and 2010's Php188.35 billion pesos. Commercial real estate loans amounted to 285 billion from September 2011's Php264.4 billion pesos and 2010's Php233.35 billion pesos.
The BSP also said that even with the increasing real estate loans, the ratio of real estate loans to total loan portfolio, exclusive of interbank loans, went down to 14.5 percent from the previous quarter's 14.6 percent as the 7.8 percent expansion in total loan portfolio outmatched the 7.2 percent rise in real estate loans. The ratio however is higher compared to 2010's 14.3 percent.
Bankers noted that in 2011, improved financing schemes helped spike interests in buying real estate and borrowers were able to avail of low rates. (LCC)
Source from Manila Bulletin under Business Bulletin, Monday, March 26, 2012
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