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;
- Liberty Savings & Loan
- BPI Direct Savings Bank
- Tower Development Bank
- Philippine Business Bank
- World Partners Bank
- Bank One Savings and Trust Corp.
- The Queen City Development Bank
Non-borderline banks that exhibited significant deteriorations in their ratios were as follows:
- BPI Globe Bank Inc. Savings Bank
- 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
I'll answer that. The Garcia family put their trust on him, and they couldn't find someone to replace him. I'll admit that last part isn't quite easy to pull off. Still, I'm saying it is ultimately the fault of the Garcias; they should have fired Ong long before 2012. It's a classic case of old-school managment. You put your trust on someone based on things like school ties, familiarity with regard to work experience, and the propensity of company owners not to trust new comers. A fancy college diploma or work experience in Citibank of Bancom, on the other hand, count more than real competence.
ReplyDeleteUnfortunately, there are many other banks like Asiatrust. Export and Industry Bank comes to mind: http://bancofilipinofailure.blogspot.com/2013/04/export-and-industry-bank-getting-back.html
ReplyDeleteThe people who get hurt the most are the uninsured depositors, many of whom often lose their life savings in a failing bank. This blog aims to help people avoid the worst of the worst banks. You can help too by spreading the word about this blog by liking my Facebook Page: https://www.facebook.com/pages/Why-Banco-Filipino-Failed/508485329180188 or following me on Twitter: https://twitter.com/davidcarlgrimes
I've been depositing for 43 years now and not once did I see my depository bank close or merge with another. While young, I noticed that PNB was the biggest bank and that's all that mattered. As I gradually learned the industry, I took to reading the annual listing. Bank with the top-five locals and you'll never worry about a closure.
ReplyDeleteBy the way, a Cavite-based thrift bank, Silangan Savings and Loan Bank, Inc., failed last January 9, 2014. Based on its last Published Statement of Financial Condition, it had a Distressed Asset Ratio of 125.55% as of June 30, 2013 - slightly below PNB's level of Distressed Assets of 126.34% for the same period. It was the third bank to fail that was flagged on this blog to be borderline insolvent. Three out of three bank failures were flagged by this blog. Check it out:
ReplyDeletehttp://bancofilipinofailure.blogspot.com/2014/01/a-short-analysis-of-recent-bank.html
I appreciate all your research and postings. However all the info is regarding the commercial and savings banks. Do you think it's possible to get similar statistics on rural banks, maybe just the top 5 or top 10 RBs?
ReplyDeleteCommercial and savings banks pay far less interest than RBs... it's 1% vs 7%.
The BSP does not publish them. You have to go to the individual bank websites to get their Published Statements of Condition. Most of them don't have websites or their websites contain almost no financial information.
ReplyDeleteA lot of the Rural and Cooperative Banks are in bad shape.
ReplyDeletehttp://bancofilipinofailure.blogspot.com/2011/12/current-state-of-philippine-rural-and.html
In the first nine months of 2013, 11 closed: http://www.bsp.gov.ph/banking/pbs_new/1.1.htm
The Araneta s own the the LBC group of companies and they are in partner with the LBC express. Why is it that the LBC express seem to be very very stable in their capital now. That means the advances given by the LBC bank is true. Its about 3 years now and still the Philippine goverment has no investigation as of now...Kawawa ang mga depositor, Dapat si G Araneta ang sasagot sa mga unpaid deposits . Salamat po
ReplyDeleteSecretary DeLima kung talagang sicero ka sa inyong trabaho ,dapat ungkatin din ninyo ang kaso ng LBC bank, kung saan napunta ang mga deposito ng mga tao. Dapat paimbestigahan din ninyo sa Senado ang may ari na Si Ginoong Araneta, kung saan napunta ang mag milyong milyong pisong deposito . Baka meron silang ibang kompanyang pinaglagakan? Salamat po..
ReplyDeleteThe officers behind LBC Bank were charged this year. I don't know what progress has been made.
ReplyDeletehttp://www.philstar.com/business/2013/03/25/923575/bsp-urged-proactively-protect-depositors
Hi David, how do you compute distressed assets and capital cushion? Kindly assist me. I'm not able to reconcile the figures above with the statement of condition uploaded at the BSP website. Thank you.
ReplyDeleteHi Randyb,
ReplyDeleteFor Distressed Assets, I generally use the following:
Classified Loans is a better indicator than NPLs because it can quantify what loans look doubtful and can go bad (become NPLs). For more information on this reasoning, look at: http://bancofilipinofailure.blogspot.com/2014/03/a-simple-stress-test-of-philippine.html)
ROPA (tells you how much acquired assets they have that can decline in value significantly if it had to be liquidated quickly. High levels indicate that the bank is not earning much from these assets and has a lot of illiquid assets.
Non-Current Assets HFS is another form of non-earning assets that can decline significantly in a liquidation.
Other Assets often contains unbooked losses or deferred charges, also contains goodwill, deferred tax assets that can have little or no value in a liquidation. High levels of other assets can indicate accounting irregularities. This is very relevant in the Philippine situation. LBC Development Bank is a prime example of this. (See: http://bancofilipinofailure.blogspot.com/2012/03/lbc-development-bank-where-did-money-go.html). Another example of this is Banco Filipino: http://bancofilipinofailure.blogspot.com/2011/09/bsps-ampaw-accounting-system.html
Total Capital Cushion:
Stockholders Equity
Less: Preferred Stock, etc.
to arrive at Tangible Common Equity
Plus:
Loan Loss Reserves: this provides the extra cushion against a decline in the value of distressed assets.
I hope this helps.
So by next year, it'll be an open field even for foreign banks?
ReplyDeleteYes, if Congress allows it to happen. This might take some time. So, it's not a giiven that it will happen next year.
ReplyDeletehttp://business.inquirer.net/164366/entry-of-more-foreign-banks-eyed
Great i am 22 years old and my analysis is homes are too expensive for an employee's salary in the philippines. Imagine a 20k salary per month and a 800k peso home.
ReplyDeleteCompared to american standards their monthly salaries are 6k US dollars and a $100k dollar home. Basically in common man terms ( i also can give economic language) the philippine employees cannot buy homes with a very little salary. My heart is american and i will migrate.
Most homes in the US sell for 3 to 5 times annual salary. So the average US salary of $50K will afford the worker a $200K to $250K home
ReplyDeletehi, that is why there is a gain/loss on repossessed properties in the annual report since these properties were included again in the inventory. please read the financial statement
ReplyDeletethe TCT of the house is not transferred to the buyer unless the property has already been fully paid to the developer. That's why it's very easy for the company to 'reinstate' the classification (i.e. from receivables to inventory, the difference in fair value will be reported in the income statement (gain/loss on repossessed property). Hope this clarifies.
ReplyDeleteAny comment as to how SIlangan bank with a 125% distressed ratio gets shut down yet some 10x greater stay open? I'm fascinated by this.
ReplyDeleteI've been doing a lot of research about financial statements. Just curious - don't you think a better way to calculate how distressed a bank is is to add classified loans and non performing loans then subtract equity?
ReplyDeleteYour calculation includes just the classified loans and not the npls.
Classified Loans include NPLs.
ReplyDeleteThe US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:
"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."
In Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:
Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
Substandard Loans are loans which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics;
Doubtful Loans are Substandard Loans with the added characteristics that existing facts, conditions, and values make collection or liquidation in full highly improbable and in which substantial loss is probable;
Loss are loans that are considered uncollectible or worthless and are of such little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.The circular mandates that an allowance for probable losses should be set up in accordance with the following schedule:
Loans Especially Mentioned: 5%
Substandard - Secured: 6% - 25%
Substandard - Unsecured: 25%
Doubtful: 50%
Loss: 100% As of June 30, 2014, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 413.842 billion or more than 3 times the size of the Philippine Banking System's NPLs of PhP 119.321 billion for the same period. Consequently, any write-offs of Classified Loans will have three times the impact of an NPL write-off.
http://bancofilipinofailure.blogspot.com/2015/01/a-simple-stress-test-of-philippine.html
PDIC did not give a reason why it was shut down. Other banks, like Banco Filipino and LBC Development Bank, there were strong indications of malversation of depositor's funds by the bank owners.
ReplyDeletehttp://bancofilipinofailure.blogspot.com/2012/03/lbc-development-bank-where-did-money-go.html
Other banks, like Export and Industry Bank, simply ran out of money.
http://bancofilipinofailure.blogspot.com/2012/03/time-is-running-out-for-export-and.html
Lately, the BSP has been encouraging stronger banks to acquire weaker banks. China Bank did this with Planters Development Bank
http://bancofilipinofailure.blogspot.com/2014/05/the-near-death-experience-of-planters.html
Yes I assumed classified loans include NPLs until I saw a balance sheet where the gross NPLs were higher than gross classified loans. Maybe it was an error in their reporting.
ReplyDeletehttp://www.bsp.gov.ph/banking/psoc_tb/SUN%20SAVINGS%20BANK%20INC.htm
It happens very regularly to all sorts of banks. Take a look at the table Classified Loans vs. NPLs from this blog post. More than ten banks report classified loans lower than NPLs.
ReplyDeletehttp://bancofilipinofailure.blogspot.com/2015/01/a-simple-stress-test-of-philippine.html
If classified loans include NPLs, how can NPLs be higher?
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