The Bangko Sentral ng Pilipinas (BSP) said the big banks bad loans ratio dropped to 3.25 percent in September.

The BSP said the universal and commercial banks non-performing loans (NPL) ratio is “the lowest recorded figure since the ratio peaked at 18.81 percent at end-October 2001.”

Compared to August, NPL ratio decreased by 0.25 percentage point, and by 0.78 percentage point from the same period last year of 4.03 percent ratio.

Total NPLs continue to decline in September at P81.42 billion from August’s P83.84 billion and 2008’s P93.83 billion.

BSP said the 2.9 percent decline in NPLs was complemented by the 4.51 percent expansion in total loan portfolio of P2.5 trillion during the same period, from P2.39 trillion in the previous month.

The central bank also reported that the big banks real and other properties acquired (ROPA) amounted to P26.96 billion, which was lower than August’s P27.23 billion and from P27.07 billion the same period in 2008.

ROPA to gross assets ratio favorably dropped to 2.59 percent from last month’s 2.66 percent and September 2008,s 2.96 percent ratio. “The ratio improved from last month as the 0.06 percent growth in ROPA was outmatched by the expansion in gross assets,” explained the BSP.

The sector’s non-performing assets (NPA), in the meantime, totaled P219.8 billion from P222.14 billion in August and P237.5 billion the same time last year.

“The ratio got better (from August) as the 1.05 percent reduction in NPAs was accompanied by the 2.53 percent growth in gross assets,” said the BSP.