Philippine banks' NPL dropped to an all-time low of 2%

It's a 54-bp improvement from last year.

According to Maybank Kim Eng, non-performing loans ratio of universal and commercial banks dropped even further to an all-time low of 2% in October from 2.05% in September. This is a 54-bp improvement from 2.54% in the same period last year and reflects continued strong asset quality for the seventh consecutive month in 2012.

Here's more from Maybank Kim Eng:

In absolute amounts, NPLs fell 1.2% MoM to PHP69.1b, while total loan portfolio went up to 1.4% to PHP3.5t. Foreclosed assets to total assets ration slightly rose to 1.55% from 1.54% last month, while non-performing assets to gross assets declined a bit to 2.55% from 2.56%.

Provisioning against potential credit losses remained strong at 138.73% from 136% the previous month.