MANILA - Thrift banks are expecting non-performing loans to slightly increase in the coming months as some people affected by the twin devastating storms that hit the country experience difficulty meeting payments.

"We are seeing a slight increase in the NPL ratio, but we don't see it reaching 10%. We are not experiencing the worst-case scenario," Pascual Garcia III, president of the Chamber of Thrift Bank, told reporters following the group's annual meeting on Friday.

He said that at present, the average NPL ratio of thrift banks stands at 7%.

While some borrowers affected by the calamities may have difficulty paying their loans, Garcia said many of them, whose incomes were not substantially disrupted, have already recovered from the devastations.

He noted that loans for purchases of appliances and furniture will rise as households affected by heavy flooding start to buy replacements for damaged properties.

"By average, the positive and negative impacts of the calamities as far as lending is concerned would simply be offsetting themselves," he said.