Question: how is npl ratio calculated?
Answer: The calculation method for the NPL ratio is simple: Divide the NPL total by the total amount of outstanding loans in the bank's portfolio. The ratio can also be expressed as a percentage of the bank's nonperforming loans. ... Alpha Bank's NPL ratio is ($5,000,000/$200,000,000) = (5/200) = 0.025, or 2.5 percent.