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Tuesday, October 11, 2011

Are there other banks ready to implode? - Thrift Bank Edition as of March 31, 2011



The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.


List of Philippine Thrift Banks
with a High % of
Distressed Assets to Total Capital Cushion
As of March 31, 2011
Bank
Total Distressed Assets (In PHP Million)1
Total Capital Cushion (In PHP Million)2
Distressed Assets/
Total Capital Cushion
(In %)3
Legaspi Savings Bank
798.630
35.263
1730.43%
Village SLA
593.227
56.950
813.24%
Real Bank (A Thrift Bank) Inc.
9,851.599
874.628
788.74%
LBC Development Bank
5,038.581
511.151
703.67%
City Savngs Bank
7,041.887
1,350.343
520.21%
The Palawan Development Bank
96.953
7.082
449.30%
China Bank Savings
2,779.894
1,130.651
392.93%
Planters Development Bank
13,533.951
3,757.840
322.90%
GSIS Family Bank
2,215.126
591.880
306.51%
Iloilo City Development Bank
177.436
57.731
294.71%
Bataan Development Bank
166.968
62.455
233.55%
Farmers Savings and Loan Association
232.837
95.014
202.55%
Business & Consumers Bank A DB
145.180
74.181
183.31%
CityState Savings Bank
1,400.328
781.363
173.56%
Hiyas Savings & Loan Bank
265.453
143.482
167.25%
Opportunity Microfinance Bank
192.736
122.773
152.68%
University SLA
365.425
224.967
151.59%
Equicom Savings Bank
654.065
405.726
145.38%
Dumaguete City Development Bank
272.395
194.208
140.79%
RCBC Savings Bank Inc.
10,694.841
6,571.828
140.74%
Premiere Development Bank
1,287.037
824.669
140.05%
Dungganon Bank
67.114
59.548
111.01%
Malayan Bank Savings & Mortgage Bank
1,085.088
925.197
108.84%
Luzon Development Bank
477.413
419.409
104.48%
Philippine Postal Savings Bank
571.295
427.861
103.29%
Citibank Savings Inc.
3,641.379
1,275.600
99.06%
Producers Savings Bank Corporation
481.180
571.159
91.05%
Metro Cebu Public Savings Bank
63.055
60.724
87.44%
Penbank Inc.
196.750
219.602
86.35%
BPI Family Savings Bank
11,775.509
12,563.940
79.26%
Wealth Bank
299.331
350.603
78.00%
Philippine Savings Bank
10,860.177
10,554.402
76.58%
Tong Yang Savings Bank Inc.
338.577
393.492
76.31%
Cordillera Savings Bank
86.503
97.066
72.96%
United Overseas Bank Philippines
1,040.712
678.813
70.78%
Pampanga Development Bank
82.510
99.964
70.33%
Liberty Savings & Loan
41.524
57.563
69.29%
Philippine Business Bank
1,841.275
2,442.174
66.34%
First Consolidated Bank Inc.
981.161
1,418.425
63.11%
Pridestar Development Bank
42.818
66.988
60.30%
Tower Development Bank
59.849
105.400
57.03%
Sampaguita SLA, Inc.
38.646
59.722
54.00%
Life Savings Bank
34.368
62.545
53.51%
Microfinance Maximum SB (Maxbank)
32.698
61.726
51.30%
Northpoint Development Bank
26.731
54.037
45.72%
Lemery Savings & Loan Bank, Inc.
34.063
71.682
45.40%
Sterling Bank of Asia Inc. (A SB)
720.860
1,185.992
44.70%
UCPB Savings Bank
824.448
1,784.927
43.42%
Robinsons Savings Bank
1,054.429
2,295.879
40.56%
World Partners Bank
67.473
164.047
38.05%
Malasiqui Progressive SLB
21.049
49.475
36.31%
Quezon Coconut Producers SLB
20.594
54.973
35.97%
Allied Savings Bank
349.224
947.920
35.04%
Maritime SLA Inc.
15.638
64.426
23.43%
The Queen City Development Bank
154.557
681.828
22.25%
Optimum Development Bank
141.863
613.451
20.80%
Pacific Ace Savings Bank
13.507
66.580
18.83%
BPI Direct Savings Bank
104.808
619.541
15.39%
HSBC Savings Bank (Philippines) Inc.
306.362
2,139.402
13.31%
Bank One Savings and Trust Corp.
63.092
509.441
12.25%
Bataan SLA
9.134
77.555
11.57%
Isla bank (A Thrift Bank) Inc.
56.019
622.551
8.95%
EIB Savings Bank Inc.
6.394
67.718
8.66%
BPI Globe Bank Inc. Savings Bank
27.906
324.653
8.32%
Progress SLA
5.755
85.219
6.70%
BDO Elite Savings Bank
93.326
1,478.233
6.35%
Merchants Savings & Loan Association
11.583
219.619
5.14%
Century Savings Bank
22.696
846.043
2.93%

Disclaimer:

This list only serves as a screening guide. It is not a definitive guide and must be taken in the context of other factors. The figures are based on the individual banks' published statement of condition as of March 31, 2011 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.

1Includes Classified Loans and Other Risk Assets, Acquired Real Estate, Non-Current Assets Held for Sale, Other Assets
2Includes Stockholder's Equity less Other Capital Accounts plus Allowance for Credit and Impairment Losses
3A ratio of Distressed Assets to Total Capital Cushion greater than 100% signals the danger of insolvency


In the past ten years, there have been numerous bank failures: 1 commercial bank, 21 thrift banks, and 187 rural banks

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