The banking sector’s asset quality recovered slightly last month, with the bad loan ratio dropping marginally and the coverage ratio edging up, statistics released by the Financial Supervisory Commission showed yesterday.
The average non-performing loan (NPL) ratio of 41 local banks dropped by 0.02 percentage points sequentially to 2.33 percent last month, the data showed.
Meanwhile, the coverage ratio, an indicator used to gauge the sufficiency of reserves for loan defaults, rose 0.35 percentage points to 54.5 percent, the data showed.
Aggregate profits shrank by half from a year ago to NT$17.28 billion (US$526 million) last month amid the lingering shadow of the consumer credit abuse storm, the data showed.
The asset quality of troubled Bowa Bank (寶華銀行), one of three remaining blacklisted financial institutions, worsened further, with its net worth becoming minus NT$579 million from NT$41 million in April. Continue reading »
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