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Tuesday, November 22, 2011

Borderline Thrift Banks Still Borderline

Based on the individual Published Statements of Condition for the Thrift Banking Industry (from www.bsp.gov.ph), Total Distressed Assets of the thrift banks increased by PHP 2.7 billion of 2.9% from December 31, 2010 to March 31, 2011.  This was offset by an increase of PHP 7.2 billion (or 10.1%)  in the Total Capital Cushion of the Thrift Banks during the same period.  As a result, the Thrift Bank's Ratio of Distressed Assets to Total Capital Cushion declined by 8.52%, from 130.22% as of December 31, 2010 to 121.70% as of March 31, 2011.

Please note that the overall ratio of 121.70% is still way above the borderline level of 100%.  This ratio has been skewed upward by the presence of around 25 thrift banks that are above the 100% borderline level.  Although levels have improved somewhat, most of the banks that were borderline insolvent as of December 31, 2010 still remained borderline insolvent as of March 31, 2011.  The borderline banks that exhibited a significant drop in their Total Distressed Assets/Total Capital Cushion Ratios include Legaspi Savings Bank (20.3% drop) and City Savings Bank (32.4% drop).  The borderline banks that exhibited a significant increase in this ratio include CityState Savings Bank (342.9% increase), and the now defunct LBC Development Bank (24.0% increase).


Philippine Thrift Banking System



Total Distressed Assets/ Total Capital Cushion



December 31, 2010 to March 31, 2011














December 31, 2010 March 31, 2011 Variance % Variance
CityState Savings Bank 39.18% 173.56% 134.37% 342.94%
BPI Globe Bank Inc. Savings Bank 5.38% 8.32% 2.94% 54.78%
LBC Development Bank 567.42% 703.67% 136.25% 24.01%
Opportunity Microfinance Bank 129.43% 152.68% 23.26% 17.97%
Maritime SLA Inc. 19.95% 23.43% 3.48% 17.44%
Citibank Savings Inc. 91.00% 99.06% 8.06% 8.86%
Hiyas Savings & Loan Bank 156.01% 167.25% 11.24% 7.21%
GSIS Family Bank 286.92% 306.51% 19.59% 6.83%
Dumaguete City Development Bank 132.38% 140.79% 8.41% 6.35%
Bataan SLA 10.98% 11.57% 0.59% 5.38%
Malayan Bank Savings & Mortgage Bank 103.44% 108.84% 5.40% 5.22%
Century Savings Bank 2.81% 2.93% 0.13% 4.46%
Iloilo City Development Bank 283.69% 294.71% 11.02% 3.89%
United Overseas Bank Philippines 68.26% 70.78% 2.52% 3.70%
Bataan Development Bank 226.07% 233.55% 7.48% 3.31%
China Bank Savings 381.64% 392.93% 11.28% 2.96%
Microfinance Maximum SB (Maxbank) 49.89% 51.30% 1.41% 2.82%
Progress SLA 6.59% 6.70% 0.11% 1.70%
Northpoint Development Bank 45.22% 45.72% 0.50% 1.10%
Luzon Development Bank 103.77% 104.48% 0.71% 0.69%
UCPB Savings Bank 43.21% 43.42% 0.21% 0.48%
Cordillera Savings Bank 72.68% 72.96% 0.28% 0.38%
Malasiqui Progressive SLB 36.32% 36.31% -0.01% -0.03%
Pacific Ace Savings Bank 18.87% 18.83% -0.04% -0.21%
Metro Cebu Public Savings Bank 87.66% 87.44% -0.22% -0.25%
Sampaguita SLA, Inc. 54.38% 54.00% -0.39% -0.71%
Isla bank (A Thrift Bank) Inc. 9.02% 8.95% -0.07% -0.77%
Business & Consumers Bank A DB 185.14% 183.31% -1.83% -0.99%
Dungganon Bank 112.33% 111.01% -1.31% -1.17%
Village SLA 823.93% 813.24% -10.69% -1.30%
University SLA 154.21% 151.59% -2.62% -1.70%
Pridestar Development Bank 61.47% 60.30% -1.17% -1.90%
Optimum Development Bank 21.28% 20.80% -0.48% -2.26%
Premiere Development Bank 143.89% 140.05% -3.84% -2.67%
Equicom Savings Bank 149.92% 145.38% -4.54% -3.03%
Wealth Bank 80.48% 78.00% -2.49% -3.09%
Pampanga Development Bank 73.19% 70.33% -2.87% -3.92%
Allied Savings Bank 36.47% 35.04% -1.43% -3.92%
BDO Elite Savings Bank 6.62% 6.35% -0.27% -4.11%
Tong Yang Savings Bank Inc. 79.85% 76.31% -3.54% -4.43%
EIB Savings Bank Inc. 9.18% 8.66% -0.52% -5.70%
Lemery Savings & Loan Bank, Inc. 48.16% 45.40% -2.76% -5.74%
Planters Development Bank 344.85% 322.90% -21.95% -6.36%
Philippine Postal Savings Bank 111.34% 103.29% -8.05% -7.23%
Philippine Savings Bank 83.15% 76.58% -6.57% -7.90%
Real Bank (A Thrift Bank) Inc. 868.10% 788.74% -79.36% -9.14%
Life Savings Bank 59.44% 53.51% -5.93% -9.98%
Sterling Bank of Asia Inc. (A SB) 50.13% 44.70% -5.43% -10.83%
Producers Savings Bank Corporation 102.49% 91.05% -11.44% -11.16%
Farmers Savings and Loan Association 228.64% 202.55% -26.09% -11.41%
The Palawan Development Bank 513.90% 449.30% -64.60% -12.57%
BPI Family Savings Bank 92.13% 79.26% -12.86% -13.96%
RCBC Savings Bank Inc. 166.80% 140.74% -26.06% -15.63%
First Consolidated Bank Inc. 75.89% 63.11% -12.79% -16.85%
HSBC Savings Bank (Philippines) Inc. 16.15% 13.31% -2.84% -17.60%
Quezon Coconut Producers SLB 44.00% 35.97% -8.03% -18.25%
Merchants Savings & Loan Association 6.31% 5.14% -1.17% -18.58%
Robinsons Savings Bank 50.59% 40.56% -10.03% -19.83%
Legaspi Savings Bank 2170.01% 1730.43% -439.58% -20.26%
Liberty Savings & Loan 87.06% 69.29% -17.77% -20.41%
BPI Direct Savings Bank 20.02% 15.39% -4.63% -23.15%
Tower Development Bank 75.62% 57.03% -18.59% -24.58%
City Savngs Bank 769.30% 520.21% -249.09% -32.38%
Philippine Business Bank 98.94% 66.34% -32.60% -32.95%
World Partners Bank 59.37% 38.05% -21.32% -35.91%
Bank One Savings and Trust Corp. 20.00% 12.25% -7.75% -38.75%
The Queen City Development Bank 37.85% 22.25% -15.60% -41.21%


Non-borderline banks that exhibited the greatest improvements in their ratios were as follows;


  1. Liberty Savings & Loan
  2. BPI Direct Savings Bank
  3. Tower Development Bank
  4. Philippine Business Bank
  5. World Partners Bank
  6. Bank One Savings and Trust Corp.
  7. The Queen City Development Bank


Non-borderline banks that exhibited significant deteriorations in their ratios were as follows:


  1. BPI Globe Bank Inc. Savings Bank
  2. Maritime SLA Inc.

Philippine Thrift Banking System









Total Distressed Assets/ Total Capital Cushion









December 31, 2010 to March 31, 2011























December 31, 2010



March 31, 2011



Variance


Total Distressed Assets (In PHP)1
Total Capital Cushion (In PHP)2
Distressed Assets/ Total Capital Cushion (In %)3

Total Distressed Assets (In PHP)1
Total Capital Cushion (In PHP)2
Distressed Assets/ Total Capital Cushion (In %)3

Total Distressed Assets (In PHP)1
Total Capital Cushion (In PHP)2
Distressed Assets/ Total Capital Cushion (In %)3
Legaspi Savings Bank
790,787,568.23
36,441,639.05
2170.01%

798,630,111.18
46,152,061.13
1730.43%

7,842,542.95
9,710,422.08
-439.58%
Village SLA
577,043,128.17
70,035,289.50
823.93%

593,227,159.00
72,946,206.19
813.24%

16,184,030.83
2,910,916.69
-10.69%
Real Bank (A Thrift Bank) Inc.
9,954,853,974.90
1,146,746,391.09
868.10%

9,851,599,352.69
1,249,036,156.19
788.74%

-103,254,622.21
102,289,765.10
-79.36%
LBC Development Bank
4,048,655,003.33
713,516,676.64
567.42%

5,038,581,463.69
716,044,399.24
703.67%

989,926,460.36
2,527,722.60
136.25%
City Savngs Bank
6,911,180,484.23
898,376,680.13
769.30%

7,041,887,200.09
1,353,669,542.94
520.21%

130,706,715.86
455,292,862.81
-249.09%
The Palawan Development Bank
109,060,886.46
21,222,213.57
513.90%

96,953,206.81
21,578,520.32
449.30%

-12,107,679.65
356,306.75
-64.60%
China Bank Savings
2,703,868,715.65
708,478,836.05
381.64%

2,779,893,794.60
707,482,430.32
392.93%

76,025,078.95
-996,405.73
11.28%
Planters Development Bank
13,204,820,165.74
3,829,162,254.99
344.85%

13,533,950,955.06
4,191,355,884.93
322.90%

329,130,789.32
362,193,629.94
-21.95%
GSIS Family Bank
2,108,934,873.50
735,035,754.66
286.92%

2,215,126,011.31
722,703,846.64
306.51%

106,191,137.81
-12,331,908.02
19.59%
Iloilo City Development Bank
164,491,227.09
57,982,389.96
283.69%

177,436,124.14
60,206,324.58
294.71%

12,944,897.05
2,223,934.62
11.02%
Bataan Development Bank
157,591,208.54
69,709,822.28
226.07%

166,967,608.04
71,491,113.71
233.55%

9,376,399.50
1,781,291.43
7.48%
Farmers Savings and Loan Association
255,557,581.90
111,770,882.28
228.64%

232,836,973.06
114,952,036.06
202.55%

-22,720,608.84
3,181,153.78
-26.09%
Business & Consumers Bank A DB
142,609,963.06
77,028,484.73
185.14%

145,179,649.34
79,199,417.20
183.31%

2,569,686.28
2,170,932.47
-1.83%
CityState Savings Bank
315,909,914.49
806,239,256.05
39.18%

1,400,328,486.11
806,839,256.05
173.56%

1,084,418,571.62
600,000.00
134.37%
Hiyas Savings & Loan Bank
247,645,321.52
158,736,197.28
156.01%

265,452,938.70
158,711,645.03
167.25%

17,807,617.18
-24,552.25
11.24%
Opportunity Microfinance Bank
175,764,860.63
135,802,109.03
129.43%

192,736,268.36
126,233,191.43
152.68%

16,971,407.73
-9,568,917.60
23.26%
University SLA
355,031,641.89
230,220,475.89
154.21%

365,424,986.56
241,060,100.32
151.59%

10,393,344.67
10,839,624.43
-2.62%
Equicom Savings Bank
704,023,800.85
469,594,025.42
149.92%

654,064,843.08
449,902,880.38
145.38%

-49,958,957.77
-19,691,145.04
-4.54%
Dumaguete City Development Bank
271,148,295.04
204,824,439.66
132.38%

272,395,329.87
193,474,401.90
140.79%

1,247,034.83
-11,350,037.76
8.41%
RCBC Savings Bank Inc.
10,930,316,206.04
6,552,835,277.90
166.80%

10,694,840,952.48
7,599,027,233.14
140.74%

-235,475,253.56
1,046,191,955.24
-26.06%
Premiere Development Bank
1,313,359,662.84
912,783,669.96
143.89

1,287,037,216.65
918,978,255.91
140.05%

-26,322,446.19
6,194.585.95
-3.83%
Dungganon Bank
66,486,816.72
59,191,429.00
112.33%

67,114,414.83
60,457,554.56
111.01%

627,598.11
1,266,125.56
-1.31%
Malayan Bank Savings & Mortgage Bank
1,036,493,541.66
1,002,030,653.05
103.44%

1,085,088,462.39
996,941,501.60
108.84%

48,594,920.73
-5,089,151.45
5.40%
Luzon Development Bank
436,163,079.47
420,334,380.17
103.77%

477,413,342.50
456,953,152.00
104.48%

41,250,263.03
36,618,771.83
0.71%
Philippine Postal Savings Bank
590,501,600.10
530,342,731.83
111.34%

571,294,747.74
553,099,431.39
103.29%

-19,206,852.36
22,756,699.56
-8.05%
Citibank Savings Inc.
3,606,546,835.07
3,963,330,681.74
91.00%

3,641,378,536.57
3,675,927,419.81
99.06%

34,831,701.50
-287,403,261.93
8.06%
Producers Savings Bank Corporation
435,368,499.59
424,781,801.37
102.49%

481,179,954.20
528,456,241.18
91.05%

45,811,454.61
103,674,439.81
-11.44%
Metro Cebu Public Savings Bank
62,681,149.84
71,505,839.15
87.66%

63,055,090.72
72,112,596.25
87.44%

373,940.88
606,757.10
-0.22%
BPI Family Savings Bank
11,502,835,442.66
12,485,535,541.67
92.13%

11,775,508,662.49
14,855,958,256.88
79.26%

272,673,219.83
2,370,422,715.21
-12.86%
Wealth Bank
308,872,937.46
383,780,751.22
80.48%

299,330,539.41
383,780,751.22
78.00%

-9,542,398.05
0.00
-2.49%
Philippine Savings Bank
10,683,005,572.25
12,847,187,428.93
83.15%

10,860,177,427.02
14,180,778,447.16
76.58%

177,171,854.77
1,333,591,018.23
-6.57%
Tong Yang Savings Bank Inc.
344,928,566.28
431,990,127.62
79.85%

338,576,606.94
443,685,592.60
76.31%

-6,351,959.34
11,695,464.98
-3.54%
Cordillera Savings Bank
86,778,100.36
119,389,723.48
72.68%

86,502,732.68
118,556,006.75
72.96%

-275,367.68
-833,716.73
0.28%
United Overseas Bank Philippines
1,003,700,326.61
1,470,393,906.97
68.26%

1,040,712,097.34
1,470,262,516.31
70.78%

37,011,770.73
-131,390.66
2.52%
Pampanga Development Bank
81,967,250.32
111,985,923.34
73.19%

82,510,420.65
117,322,641.41
70.33%

543,170.33
5,336,718.07
-2.87%
Liberty Savings & Loan
43,654,225.43
50,143,836.27
87.06%

41,524,004.44
59,928,329.41
69.29%

-2,130,220.99
9,784,493.14
-17.77%
Philippine Business Bank
1,884,264,957.92
1,904,439,283.82
98.94%

1,841,274,990.78
2,775,632,541.34
66.34%

-42,989,967.14
871,193,257.52
-32.60%
First Consolidated Bank Inc.
1,034,951,184.84
1,363,683,144.87
75.89%

981,161,467.18
1,554,784,769.47
63.11%

-53,789,717.66
191,101,624.60
-12.79%
Pridestar Development Bank
44,016,527.30
71,601,171.40
61.47%

42,817,731.41
71,002,884.05
60.30%

-1,198,795.89
-598,287.35
-1.17%
Tower Development Bank
79,350,494.02
104,939,329.22
75.62%

59,849,277.51
104,945,435.32
57.03%

-19,501,216.51
6,106.10
-18.59%
Sampaguita SLA, Inc.
38,657,771.38
71,082,533.12
54.38%

38,645,789.03
71,570,976.34
54.00%

-11,982.35
488,443.22
-0.39%
Life Savings Bank
35,172,000.07
59,167,925.68
59.44%

34,367,905.76
64,226,085.27
53.51%

-804,094.31
5,058,159.59
-5.93%
Microfinance Maximum SB (Maxbank)
30,663,335.03
61,461,310.99
49.89%

32,698,325.77
63,741,361.59
51.30%

2,034,990.74
2,280,050.60
1.41%
Northpoint Development Bank
25,863,193.48
57,194,102.23
45.22%

26,731,268.87
58,473,177.23
45.72%

868,075.39
1,279,075.00
0.50%
Lemery Savings & Loan Bank, Inc.
36,137,539.38
75,034,616.55
48.16%

34,063,373.04
75,034,616.55
45.40%

-2,074,166.34
0.00
-2.76%
Sterling Bank of Asia Inc. (A SB)
596,824,755.93
1,190,619,356.86
50.13%

720,860,292.05
1,612,798,867.17
44.70%

124,035,536.12
422,179,510.31
-5.43%
UCPB Savings Bank
814,959,455.76
1,886,042,145.04
43.21%

824,447,663.73
1,898,798,490.84
43.42%

9,488,207.97
12,756,345.80
0.21%
Robinsons Savings Bank
1,170,870,711.81
2,314,318,928.72
50.59%

1,054,429,091.36
2,599,586,008.31
40.56%

-116,441,620.45
285,267,079.59
-10.03%
World Partners Bank
95,390,282.26
160,681,566.86
59.37%

67,472,503.28
177,331,708.61
38.05%

-27,917,778.98
16,650,141.75
-21.32%
Malasiqui Progressive SLB
21,058,505.59
57,973,153.04
36.32%

21,048,584.58
57,973,153.04
36.31%

-9,921.01
0.00
-0.02%
Quezon Coconut Producers SLB
23,896,040.23
54,303,866.14
44.00%

20,594,343.62
57,249,027.19
35.97%

-3,301,696.61
2,945,161.05
-8.03%
Allied Savings Bank
358,775,483.44
983,879,721.95
36.47%

349,223,975.65
996,683,174.47
35.04%

-9,551,507.79
12,803,452.52
-1.43%
Maritime SLA Inc.
13,316,004.88
66,734,039.41
19.95%

15,637,944.69
66,734,039.41
23.43%

2,321,939.81
0.00
3.48%
The Queen City Development Bank
259,528,011.18
685,609,787.74
37.85%

154,556,696.85
694,530,564.40
22.25%

-104,971,314.33
8,920,776.66
-15.60%
Optimum Development Bank
142,488,878.81
669,683,547.67
21.28%

141,863,496.44
682,187,578.12
20.80%

-625,382.37
12,504,030.45
-0.48%
Pacific Ace Savings Bank
12,967,650.24
68,711,003.79
18.87%

13,507,271.13
71,722,910.75
18.83%

539,620.89
3,011,906.96
-0.04%
BPI Direct Savings Bank
124,225,810.48
620,434,936.32
20.02%

104,808,406.42
681,100,718.48
15.39%

-19,417,404.06
60,665,782.16
-4.63%
HSBC Savings Bank (Philippines) Inc.
294,444,104.57
1,822,689,072.79
16.15%

306,361,602.65
2,301,615,321.52
13.31%

11,917,498.08
478,926,248.73
-2.84%
Bank One Savings and Trust Corp.
98,838,353.98
494,240,370.50
20.00%

63,092,255.00
515,107,000.38
12.25%

-35,746,098.98
20,866,629.88
-7.75%
Bataan SLA
8,675,561.43
79,014,317.75
10.98%

9,134,396.80
78,949,231.51
11.57%

458,835.37
-65,086.24
0.59%
Isla bank (A Thrift Bank) Inc.
56,067,036.87
621,455,601.99
9.02%

56,019,093.92
625,758,388.23
8.95%

-47,942.95
4,302,786.24
-0.07%
EIB Savings Bank Inc.
6,417,709.59
69,892,198.75
9.18%

6,393,755.90
73,842,233.73
8.66%

-23,953.69
3,950,034.98
-0.52%
BPI Globe Bank Inc. Savings Bank
19,109,957.15
355,511,236.95
5.38%

27,905,564.04
335,411,294.54
8.32%

8,795,606.89
-20,099,942.41
2.94%
Progress SLA
5,651,459.23
85,767,506.19
6.59%

5,755,292.32
85,879,775.20
6.70%

103,833.09
112,269.01
0.11%
BDO Elite Savings Bank
96,958,473.32
1,464,922,522.32
6.62%

93,326,314.25
1,470,452,260.33
6.35%

-3,632,159.07
5,529,738.01
-0.27%
Merchants Savings & Loan Association
15,178,229.59
240,410,556.71
6.31%

11,583,344.55
225,331,989.32
5.14%

-3,594,885.04
-15,078,567.39
-1.17%
Century Savings Bank
22,888,349.10
815,090,459.16
2.81%

22,695,931.71
773,706,380.01
2.93%

-192,417.39
-41,384,079.15
0.13%
Total
93,200,246,256.78
71,569,278,405.98
130.22%

95,898,245,621.03
78,797,427,304.86
121.70%

-2,697,999,364.25
-7,228,148,898.88
-8.52%

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