NPLs. Short for Non-Performing Loans. The NPL Ratio, or the ratio of a bank's Non-Performing Loans (NPL) to Total Loan Portfolio (TLP) is a frequently cited figure in the general media to indicate a bank's financial health, or the health of the banking system as a whole. See: http://business.inquirer.net/48943/banks-reduce-exposure-to-bad-debts-have-more-cash-to-loan-out%E2%80%94bsp.
In the Philippine Thrift Banking Industry, Non-Performing Loans stood at PHP 23.29 billion as of September 30, 2011 - approximately 6.72% of the Philippine Thrift Banking Industry's Total Loan Portfolio - Net of PHP 346.83 billion.
Editor's Note: Data is culled from the Published Statements of Condition of individual thrift banks found in www.bsp.gov.ph. Banks highlighted in yellow are classified as Distressed Banks. The level of distressed is measured by the Ratio of their Total Distressed Assets/Total Capital Cushion as of September 30, 2011. See a previous blog post: "Thrift Banks Improve Due to Survivorship Bias"
Philippine Thrift Banking System | |||
NPL as % of TLP-Net | |||
September 30, 2011 | |||
NPL | TLP | NPL/TLP | |
Bank | (In PHP) | (In PHP) | (In %) |
EIB Savings Bank | 5,558,771.67 | 407,358.76 | 1364.59% |
Northpoint Development Bank | 16,425,683.09 | 13,737,069.35 | 119.57% |
Metro Cebu Public Savings Bank | 37,856,042.68 | 50,957,512.10 | 74.29% |
GSIS Family Bank (A Thrift Bank) | 307,649,489.76 | 425,963,994.13 | 72.22% |
Pacific Ace Savings Bank | 10,028,485.77 | 15,029,316.95 | 66.73% |
Real Bank (A Thrift Bank) Inc. | 3,871,129,413.42 | 8,096,153,183.35 | 47.81% |
Malasiqui Progressive SLB, Inc. | 16,467,018.15 | 45,354,122.61 | 36.31% |
Farmers Savings & Loan Bank Inc. | 57,707,612.50 | 209,469,020.18 | 27.55% |
Citibank Savings Inc. | 2,077,920,453.63 | 7,788,484,569.65 | 26.68% |
Quezon Coconut Producers SLB Inc. | 9,681,064.02 | 39,679,980.47 | 24.40% |
Lemery Savings & Loan Bank, Inc. | 18,831,103.00 | 78,612,329.38 | 23.95% |
Sampaguita SLA, Inc. | 11,797,675.77 | 51,126,432.91 | 23.08% |
Bataan Development Bank | 31,345,872.98 | 135,954,678.78 | 23.06% |
Hiyas Savings & Loan Bank | 60,893,871.92 | 280,775,709.31 | 21.69% |
Microfinance Maximum SB (Maxbank) | 3,298,372.37 | 15,271,044.95 | 21.60% |
Progress SLA | 1,754,897.01 | 9,099,422.80 | 19.29% |
Opportunity Microfinance Bank | 56,812,828.15 | 314,741,319.07 | 18.05% |
Pampanga Development Bank | 30,626,623.25 | 177,891,778.82 | 17.22% |
Business & Consumers Bank (A Development Bank) | 11,671,701.42 | 88,300,321.00 | 13.22% |
Village SLA, Inc. | 31,795,202.25 | 243,237,660.54 | 13.07% |
Premiere Development Bank | 409,178,308.39 | 3,190,593,198.30 | 12.82% |
Optimum Development Bank | 79,419,606.43 | 623,004,251.28 | 12.75% |
Cordillera Savings Bank | 16,811,023.57 | 135,089,191.62 | 12.44% |
University Savings Bank | 58,888,378.45 | 476,347,342.19 | 12.36% |
Pridestar Development Bank | 8,765,713.90 | 71,870,565.76 | 12.20% |
Philippine Postal Savings Bank | 297,208,322.18 | 2,713,919,501.33 | 10.95% |
Tong Yang Savings Bank Inc. | 80,863,517.25 | 855,740,635.20 | 9.45% |
Allied Savings Bank | 181,224,806.62 | 2,044,862,496.58 | 8.86% |
Penbank Inc. | 85,324,343.16 | 1,032,194,314.54 | 8.27% |
Dumaguete City Development Bank | 30,833,616.48 | 387,709,383.15 | 7.95% |
Bataan SLA | 2,541,535.60 | 32,850,773.44 | 7.74% |
Philippine Savings Bank | 4,573,382,906.29 | 60,592,345,818.26 | 7.55% |
Planters Development Bank | 2,356,838,195.38 | 33,319,900,012.03 | 7.07% |
Malayan Bank Savings & Mortgage Bank | 286,028,580.29 | 4,118,543,440.28 | 6.94% |
Maritime SLA Inc. | 7,061,284.40 | 118,140,447.99 | 5.98% |
First Consolidated Bank Inc. | 279,969,598.69 | 4,725,906,907.30 | 5.92% |
Luzon Development Bank | 74,024,820.03 | 1,307,774,734.97 | 5.66% |
Philippine Business Bank | 815,301,791.48 | 14,709,592,378.77 | 5.54% |
Iloilo City Development Bank | 10,832,820.45 | 200,697,414.92 | 5.40% |
Century Savings Bank | 22,501,783.77 | 424,838,704.98 | 5.30% |
Sterling Bank of Asia | 669,795,061.57 | 13,641,567,867.71 | 4.91% |
RCBC Savings Bank | 1,741,798,621.00 | 35,752,487,528.78 | 4.87% |
Liberty Savings Bank | 5,608,757.86 | 125,608,001.27 | 4.47% |
Tower Development Bank | 4,884,196.83 | 110,395,325.24 | 4.42% |
World Partners Bank (A Thrift Bank) | 35,278,101.49 | 803,537,018.84 | 4.39% |
Wealth Bank (A Development Bank) | 57,819,521.96 | 1,367,715,067.60 | 4.23% |
Life Savings Bank Inc. | 2,541,743.57 | 61,858,613.42 | 4.11% |
BPI Family Savings Bank | 3,727,349,287.02 | 99,021,450,670.68 | 3.76% |
Producers Savings Bank Corporation | 108,518,517.03 | 3,078,323,687.42 | 3.53% |
China Bank Savings | 56,947,092.18 | 1,734,802,684.18 | 3.28% |
Equicom SB | 102,783,977.50 | 3,246,956,337.31 | 3.17% |
UCPB Savings Bank | 151,938,092.83 | 4,876,786,749.99 | 3.12% |
Card SME Bank Inc. (A Thrift Bank) | 7,629,777.80 | 305,084,478.25 | 2.50% |
The Queen City Development Bank | 23,699,513.65 | 977,017,807.12 | 2.43% |
Bank One Savings and Trust Corporation | 14,520,006.00 | 663,368,550.00 | 2.19% |
Citystate Savings Bank | 24,237,166.78 | 1,192,140,061.14 | 2.03% |
BPI Direct Savings Bank | 76,163,822.37 | 4,705,808,370.52 | 1.62% |
City Savings Bank | 66,367,976.71 | 8,129,858,133.17 | 0.82% |
Merchants Savings & Loan Association Inc. | 430,465.95 | 73,135,035.47 | 0.59% |
HSBC Savings Bank | 64,002,157.67 | 14,808,670,676.95 | 0.43% |
BPI Globe Banko Inc. Savings Bank | 4,924,855.16 | 1,747,379,022.61 | 0.28% |
Isla Bank (A Thrift Bank) Inc. | 0.00 | 633,102,353.68 | 0.00% |
United Overseas Bank Philippines | 0.00 | 554,615,201.22 | 0.00% |
Dungganon Bank | 0.00 | 56,115,109.80 | 0.00% |
BDO Elite Savings Bank Inc. | 0.00 | 0.00 | NA |
Grand Total | 23,293,491,848.55 | 346,829,952,690.37 | 6.72% |
Source: www.bsp.gov.ph
- EIB Savings Bank (1364.59% of TLP-Net)
- Northpoint Development Bank (119.57% of TLP-Net)
- Metro Cebu Public Savings Bank (74.29% of TLP-Net)
- GSIS Family Bank (72.22% of TLP-Net)
- Pacific Ace Savings Bank (66.73% of TLP-Net)
- Real Bank (47.81% of TLP-Net)
- Malasiqui Progressive SLB, Inc. (36.31% of TLP-Net)
Of these banks, only Real Bank is considered distressed. A more important NPL ratio may be the ratio of a bank's NPLs to its total Stockholders Equity (SE). The idea behind this is that NPLs are fragile things. As a loan deteriorates, its recoverable value will deteriorate as well. A foreclosure might result in a loan recovery that is a fraction of the loans original value. Therefore, banks with high NPL Ratios relative to their Stockholders Equity may face a significant loss of capital if a substantial amount of their NPLs are written of as a loss.
Philippine Thrift Banking System | |||
NPL as % of SE | |||
September 30, 2011 | |||
NPL | SE | NPL/SE | |
Bank | (In PHP) | (In PHP) | (In %) |
Real Bank (A Thrift Bank) Inc. | 3,871,129,413.42 | 538,954,556.95 | 718.27% |
Citibank Savings Inc. | 2,077,920,453.63 | 1,779,432,800.72 | 116.77% |
Metro Cebu Public Savings Bank | 37,856,042.68 | 47,862,077.33 | 79.09% |
Philippine Postal Savings Bank | 297,208,322.18 | 412,083,203.45 | 72.12% |
GSIS Family Bank (A Thrift Bank) | 307,649,489.76 | 448,823,253.98 | 68.55% |
Farmers Savings & Loan Bank Inc. | 57,707,612.50 | 94,563,391.59 | 61.03% |
Sterling Bank of Asia | 669,795,061.57 | 1,222,952,920.62 | 54.77% |
Premiere Development Bank | 409,178,308.39 | 768,276,843.83 | 53.26% |
Village SLA, Inc. | 31,795,202.25 | 62,091,439.98 | 51.21% |
Planters Development Bank | 2,356,838,195.38 | 4,699,048,148.39 | 50.16% |
Bataan Development Bank | 31,345,872.98 | 67,898,427.98 | 46.17% |
Opportunity Microfinance Bank | 56,812,828.15 | 129,288,834.77 | 43.94% |
Hiyas Savings & Loan Bank | 60,893,871.92 | 145,019,077.71 | 41.99% |
Penbank Inc. | 85,324,343.16 | 229,619,270.61 | 37.16% |
Philippine Savings Bank | 4,573,382,906.29 | 12,955,783,472.56 | 35.30% |
Malasiqui Progressive SLB, Inc. | 16,467,018.15 | 51,410,073.54 | 32.03% |
Northpoint Development Bank | 16,425,683.09 | 51,898,263.72 | 31.65% |
Malayan Bank Savings & Mortgage Bank | 286,028,580.29 | 951,555,667.97 | 30.06% |
Pampanga Development Bank | 30,626,623.25 | 105,629,668.63 | 28.99% |
BPI Family Savings Bank | 3,727,349,287.02 | 13,215,459,607.20 | 28.20% |
Lemery Savings & Loan Bank, Inc. | 18,831,103.00 | 69,264,950.06 | 27.19% |
Philippine Business Bank | 815,301,791.48 | 3,078,009,090.67 | 26.49% |
University Savings Bank | 58,888,378.45 | 232,846,311.91 | 25.29% |
Equicom SB | 102,783,977.50 | 413,669,902.29 | 24.85% |
RCBC Savings Bank | 1,741,798,621.00 | 7,350,378,695.23 | 23.70% |
World Partners Bank (A Thrift Bank) | 35,278,101.49 | 163,604,634.27 | 21.56% |
Tong Yang Savings Bank Inc. | 80,863,517.25 | 393,913,694.90 | 20.53% |
Luzon Development Bank | 74,024,820.03 | 379,670,512.51 | 19.50% |
Sampaguita SLA, Inc. | 11,797,675.77 | 60,638,793.77 | 19.46% |
Allied Savings Bank | 181,224,806.62 | 968,554,794.81 | 18.71% |
First Consolidated Bank Inc. | 279,969,598.69 | 1,514,731,131.38 | 18.48% |
Iloilo City Development Bank | 10,832,820.45 | 59,936,963.98 | 18.07% |
Cordillera Savings Bank | 16,811,023.57 | 93,886,591.83 | 17.91% |
Quezon Coconut Producers SLB Inc. | 9,681,064.02 | 56,146,490.46 | 17.24% |
Producers Savings Bank Corporation | 108,518,517.03 | 635,624,074.79 | 17.07% |
Wealth Bank (A Development Bank) | 57,819,521.96 | 350,541,914.67 | 16.49% |
Dumaguete City Development Bank | 30,833,616.48 | 198,626,212.37 | 15.52% |
Business & Consumers Bank (A Development Bank) | 11,671,701.42 | 75,576,087.80 | 15.44% |
Pacific Ace Savings Bank | 10,028,485.77 | 67,473,628.50 | 14.86% |
Pridestar Development Bank | 8,765,713.90 | 66,223,603.92 | 13.24% |
Optimum Development Bank | 79,419,606.43 | 634,287,677.54 | 12.52% |
BPI Direct Savings Bank | 76,163,822.37 | 696,788,887.77 | 10.93% |
Maritime SLA Inc. | 7,061,284.40 | 66,464,810.00 | 10.62% |
Liberty Savings Bank | 5,608,757.86 | 59,477,296.86 | 9.43% |
UCPB Savings Bank | 151,938,092.83 | 1,931,050,254.27 | 7.87% |
EIB Savings Bank | 5,558,771.67 | 71,672,922.39 | 7.76% |
Card SME Bank Inc. (A Thrift Bank) | 7,629,777.80 | 133,830,679.61 | 5.70% |
Microfinance Maximum SB (Maxbank) | 3,298,372.37 | 61,572,830.22 | 5.36% |
China Bank Savings | 56,947,092.18 | 1,224,675,478.65 | 4.65% |
Tower Development Bank | 4,884,196.83 | 107,938,662.82 | 4.52% |
City Savings Bank | 66,367,976.71 | 1,609,624,035.57 | 4.12% |
Life Savings Bank Inc. | 2,541,743.57 | 63,382,539.73 | 4.01% |
The Queen City Development Bank | 23,699,513.65 | 685,600,185.63 | 3.46% |
Bataan SLA | 2,541,535.60 | 75,403,679.17 | 3.37% |
Citystate Savings Bank | 24,237,166.78 | 780,126,791.84 | 3.11% |
Bank One Savings and Trust Corporation | 14,520,006.00 | 511,804,029.18 | 2.84% |
HSBC Savings Bank | 64,002,157.67 | 2,409,524,105.69 | 2.66% |
Century Savings Bank | 22,501,783.77 | 863,184,238.96 | 2.61% |
Progress SLA | 1,754,897.01 | 84,589,381.44 | 2.07% |
BPI Globe Banko Inc. Savings Bank | 4,924,855.16 | 489,761,849.54 | 1.01% |
Merchants Savings & Loan Association Inc. | 430,465.95 | 211,302,268.20 | 0.20% |
Isla Bank (A Thrift Bank) Inc. | 0.00 | 626,953,633.38 | 0.00% |
BDO Elite Savings Bank Inc. | 0.00 | 1,497,352,922.60 | 0.00% |
United Overseas Bank Philippines | 0.00 | 677,818,259.21 | 0.00% |
Dungganon Bank | 0.00 | 59,995,203.59 | 0.00% |
Grand Total | 23,293,491,848.55 | 69,841,151,705.51 | 33.35% |
Source: www.bsp.gov.ph
Of the sixty-five thrift banks in this list, eighteen have an NPL to Stockholders Equity Ratio of 30% or more. These banks are as follows:
Of the sixty-five thrift banks in this list, eighteen have an NPL to Stockholders Equity Ratio of 30% or more. These banks are as follows:
- Real Bank (718.27% of SE)
- Citibank Savings Inc. (116.77% of SE)
- Metro Cebu Public Savings Bank (79.09% of SE)
- Philippine Postal Savings Bank (72.12% of SE)
- GSIS Family Bank (68.55% of SE)
- Farmers Savings & Loan Bank Inc. (61.03% of SE)
- Sterling Bank of Asia (54.77% of SE)
- Premiere Development Bank (53.26% of SE)
- Village SLA, Inc. (51.21% of SE)
- Planters Development Bank (50.16% of SE)
- Bataan Development Bank (46.17% of SE)
- Opportunity Microfinance Bank (43.94% of SE)
- Hiyas Savings & Loan Bank (41.99% of SE)
- Penbank, Inc. (37.16% of SE)
- Philippine Savings Bank (35.30% of SE)
- Malasiqui Progressive SLB, Inc. (32.03% of SE)
- Northpoint Development Bank (31.65% of SE)
- Malayan Bank Savings and Mortgage Bank (30.06% of SE)
Another indicator of a bank's financial health is the level of DOSRI Loans in relation to a bank's Total Loan Portfolio. Under current banking regulations, the limit on the amount of individual loans to DOSRI, of which 70% must be secured, should not exceed a bank's parent company's regulatory capital or 15% of the bank's parent company's total loan portfolio, whichever is lower. These limits do not apply to loans secured by assets considered as non-risk as defined in the regulations. Therefore banks with significantly high DOSRI Loan to Total Loan Portfolio - Net ratios may be bumping up or exceeding the limits of compliance with DOSRI regulations.
Of the sixty-five banks listed as Thrift Banks, twenty-three reported having no DOSRI Loans. Of the forty-two thrift banks with DOSRI Loans, fourteen had DOSRI Loans that made up less than 1% of their Total Loan Portfolios. However, several thrift banks had DOSRI Loans that comprised more than 15% of their Total Loan Portfolios. They are as follows:
- Penbank Inc. (24.32% of TLP-Net)
- Citystate Savings Bank (22.66% of TLP-Net)
- Life Savings Bank Inc. (19.65% of TLP-Net)
- Village SLA, Inc. (16.85% of TLP-Net)
- Metro Cebu Public Savings Bank (16.59% of TLP-Net)
Philippine Thrift Banking System | |||
DOSRI as % of TLP-Net | |||
September 30, 2011 | |||
DOSRI | TLP | DOSRI/TLP | |
Bank | DOSRI NPL | (In PHP) | (In %) |
Penbank Inc. | 251,071,423.18 | 1,032,194,314.54 | 24.32% |
Citystate Savings Bank | 270,175,814.67 | 1,192,140,061.14 | 22.66% |
Life Savings Bank Inc. | 12,153,942.32 | 61,858,613.42 | 19.65% |
Village SLA, Inc. | 40,989,576.89 | 243,237,660.54 | 16.85% |
Metro Cebu Public Savings Bank | 8,455,130.82 | 50,957,512.10 | 16.59% |
World Partners Bank (A Thrift Bank) | 119,110,094.22 | 803,537,018.84 | 14.82% |
Malasiqui Progressive SLB, Inc. | 5,100,000.00 | 45,354,122.61 | 11.24% |
Pampanga Development Bank | 17,059,722.62 | 177,891,778.82 | 9.59% |
The Queen City Development Bank | 91,738,125.13 | 977,017,807.12 | 9.39% |
Sampaguita SLA, Inc. | 4,500,000.00 | 51,126,432.91 | 8.80% |
Philippine Postal Savings Bank | 211,581,010.42 | 2,713,919,501.33 | 7.80% |
Luzon Development Bank | 84,664,481.36 | 1,307,774,734.97 | 6.47% |
Dumaguete City Development Bank | 24,062,000.00 | 387,709,383.15 | 6.21% |
Hiyas Savings & Loan Bank | 17,123,182.22 | 280,775,709.31 | 6.10% |
Century Savings Bank | 25,501,500.00 | 424,838,704.98 | 6.00% |
Tower Development Bank | 5,707,777.47 | 110,395,325.24 | 5.17% |
Real Bank (A Thrift Bank) Inc. | 343,830,314.17 | 8,096,153,183.35 | 4.25% |
Quezon Coconut Producers SLB Inc. | 1,536,347.32 | 39,679,980.47 | 3.87% |
Cordillera Savings Bank | 4,852,497.37 | 135,089,191.62 | 3.59% |
Producers Savings Bank Corporation | 110,428,245.30 | 3,078,323,687.42 | 3.59% |
Opportunity Microfinance Bank | 7,522,299.83 | 314,741,319.07 | 2.39% |
Philippine Savings Bank | 1,385,516,792.21 | 60,592,345,818.26 | 2.29% |
Maritime SLA Inc. | 2,649,333.32 | 118,140,447.99 | 2.24% |
Wealth Bank (A Development Bank) | 20,327,439.65 | 1,367,715,067.60 | 1.49% |
Planters Development Bank | 481,995,059.24 | 33,319,900,012.03 | 1.45% |
University Savings Bank | 6,880,332.42 | 476,347,342.19 | 1.44% |
GSIS Family Bank (A Thrift Bank) | 6,095,470.36 | 425,963,994.13 | 1.43% |
Malayan Bank Savings & Mortgage Bank | 43,021,325.41 | 4,118,543,440.28 | 1.04% |
HSBC Savings Bank | 93,377,868.01 | 14,808,670,676.95 | 0.63% |
Premiere Development Bank | 19,895,392.06 | 3,190,593,198.30 | 0.62% |
China Bank Savings | 9,716,349.45 | 1,734,802,684.18 | 0.56% |
RCBC Savings Bank | 153,142,966.21 | 35,752,487,528.78 | 0.43% |
Tong Yang Savings Bank Inc. | 1,877,934.66 | 855,740,635.20 | 0.22% |
Farmers Savings & Loan Bank Inc. | 447,546.50 | 209,469,020.18 | 0.21% |
First Consolidated Bank Inc. | 9,365,197.88 | 4,725,906,907.30 | 0.20% |
Philippine Business Bank | 27,182,935.08 | 14,709,592,378.77 | 0.18% |
BPI Direct Savings Bank | 3,497,695.41 | 4,705,808,370.52 | 0.07% |
BPI Family Savings Bank | 53,477,271.99 | 99,021,450,670.68 | 0.05% |
UCPB Savings Bank | 2,281,157.53 | 4,876,786,749.99 | 0.05% |
Equicom SB | 1,480,881.85 | 3,246,956,337.31 | 0.05% |
Sterling Bank of Asia | 6,016,323.30 | 13,641,567,867.71 | 0.04% |
Isla Bank (A Thrift Bank) Inc. | 85,671.86 | 633,102,353.68 | 0.01% |
Allied Savings Bank | 0.00 | 2,044,862,496.58 | 0.00% |
Bank One Savings and Trust Corporation | 0.00 | 663,368,550.00 | 0.00% |
EIB Savings Bank | 0.00 | 407,358.76 | 0.00% |
Citibank Savings Inc. | 0.00 | 7,788,484,569.65 | 0.00% |
Pacific Ace Savings Bank | 0.00 | 15,029,316.95 | 0.00% |
BPI Globe Banko Inc. Savings Bank | 0.00 | 1,747,379,022.61 | 0.00% |
United Overseas Bank Philippines | 0.00 | 554,615,201.22 | 0.00% |
Card SME Bank Inc. (A Thrift Bank) | 0.00 | 305,084,478.25 | 0.00% |
Bataan Development Bank | 0.00 | 135,954,678.78 | 0.00% |
Business & Consumers Bank (A Development Bank) | 0.00 | 88,300,321.00 | 0.00% |
Iloilo City Development Bank | 0.00 | 200,697,414.92 | 0.00% |
Northpoint Development Bank | 0.00 | 13,737,069.35 | 0.00% |
Optimum Development Bank | 0.00 | 623,004,251.28 | 0.00% |
Pridestar Development Bank | 0.00 | 71,870,565.76 | 0.00% |
Bataan SLA | 0.00 | 32,850,773.44 | 0.00% |
City Savings Bank | 0.00 | 8,129,858,133.17 | 0.00% |
Lemery Savings & Loan Bank, Inc. | 0.00 | 78,612,329.38 | 0.00% |
Liberty Savings Bank | 0.00 | 125,608,001.27 | 0.00% |
Merchants Savings & Loan Association Inc. | 0.00 | 73,135,035.47 | 0.00% |
Progress SLA | 0.00 | 9,099,422.80 | 0.00% |
Dungganon Bank | 0.00 | 56,115,109.80 | 0.00% |
Microfinance Maximum SB (Maxbank) | 0.00 | 15,271,044.95 | 0.00% |
BDO Elite Savings Bank Inc. | 0.00 | 0.00 | NA |
Grand Total | 3,985,494,429.71 | 346,829,952,690.37 | 1.15% |
Source: www.bsp.gov.ph
DOSRI Rules indicate that, in the aggregate, DOSRI Loans should not exceed the total equity of the bank. Therefore banks with a significantly high DOSRI Loans as a percentage of Stockholders Equity may be approaching DOSRI Limits. In this matter, two banks stand out:
- Penbank Inc. (109.34% of SE)
- World Partners Bank (72.80% of SE).
Philippine Thrift Banking System | |||
DOSRI as % of SE | |||
September 30, 2011 | |||
DOSRI | SE | DOSRI/SE | |
Bank | (In PHP) | (In PHP) | (In %) |
Penbank Inc. | 251,071,423.18 | 229,619,270.61 | 109.34% |
World Partners Bank (A Thrift Bank) | 119,110,094.22 | 163,604,634.27 | 72.80% |
Village SLA, Inc. | 40,989,576.89 | 62,091,439.98 | 66.01% |
Real Bank (A Thrift Bank) Inc. | 343,830,314.17 | 538,954,556.95 | 63.80% |
Philippine Postal Savings Bank | 211,581,010.42 | 412,083,203.45 | 51.34% |
Citystate Savings Bank | 270,175,814.67 | 780,126,791.84 | 34.63% |
Luzon Development Bank | 84,664,481.36 | 379,670,512.51 | 22.30% |
Life Savings Bank Inc. | 12,153,942.32 | 63,382,539.73 | 19.18% |
Metro Cebu Public Savings Bank | 8,455,130.82 | 47,862,077.33 | 17.67% |
Producers Savings Bank Corporation | 110,428,245.30 | 635,624,074.79 | 17.37% |
Pampanga Development Bank | 17,059,722.62 | 105,629,668.63 | 16.15% |
The Queen City Development Bank | 91,738,125.13 | 685,600,185.63 | 13.38% |
Dumaguete City Development Bank | 24,062,000.00 | 198,626,212.37 | 12.11% |
Hiyas Savings & Loan Bank | 17,123,182.22 | 145,019,077.71 | 11.81% |
Philippine Savings Bank | 1,385,516,792.21 | 12,955,783,472.56 | 10.69% |
Planters Development Bank | 481,995,059.24 | 4,699,048,148.39 | 10.26% |
Malasiqui Progressive SLB, Inc. | 5,100,000.00 | 51,410,073.54 | 9.92% |
Sampaguita SLA, Inc. | 4,500,000.00 | 60,638,793.77 | 7.42% |
Opportunity Microfinance Bank | 7,522,299.83 | 129,288,834.77 | 5.82% |
Wealth Bank (A Development Bank) | 20,327,439.65 | 350,541,914.67 | 5.80% |
Tower Development Bank | 5,707,777.47 | 107,938,662.82 | 5.29% |
Cordillera Savings Bank | 4,852,497.37 | 93,886,591.83 | 5.17% |
Malayan Bank Savings & Mortgage Bank | 43,021,325.41 | 951,555,667.97 | 4.52% |
Maritime SLA Inc. | 2,649,333.32 | 66,464,810.00 | 3.99% |
HSBC Savings Bank | 93,377,868.01 | 2,409,524,105.69 | 3.88% |
University Savings Bank | 6,880,332.42 | 232,846,311.91 | 2.95% |
Century Savings Bank | 25,501,500.00 | 863,184,238.96 | 2.95% |
Quezon Coconut Producers SLB Inc. | 1,536,347.32 | 56,146,490.46 | 2.74% |
Premiere Development Bank | 19,895,392.06 | 768,276,843.83 | 2.59% |
RCBC Savings Bank | 153,142,966.21 | 7,350,378,695.23 | 2.08% |
GSIS Family Bank (A Thrift Bank) | 6,095,470.36 | 448,823,253.98 | 1.36% |
Philippine Business Bank | 27,182,935.08 | 3,078,009,090.67 | 0.88% |
China Bank Savings | 9,716,349.45 | 1,224,675,478.65 | 0.79% |
First Consolidated Bank Inc. | 9,365,197.88 | 1,514,731,131.38 | 0.62% |
BPI Direct Savings Bank | 3,497,695.41 | 696,788,887.77 | 0.50% |
Sterling Bank of Asia | 6,016,323.30 | 1,222,952,920.62 | 0.49% |
Tong Yang Savings Bank Inc. | 1,877,934.66 | 393,913,694.90 | 0.48% |
Farmers Savings & Loan Bank Inc. | 447,546.50 | 94,563,391.59 | 0.47% |
BPI Family Savings Bank | 53,477,271.99 | 13,215,459,607.20 | 0.40% |
Equicom SB | 1,480,881.85 | 413,669,902.29 | 0.36% |
UCPB Savings Bank | 2,281,157.53 | 1,931,050,254.27 | 0.12% |
Isla Bank (A Thrift Bank) Inc. | 85,671.86 | 626,953,633.38 | 0.01% |
Allied Savings Bank | 0.00 | 968,554,794.81 | 0.00% |
Bank One Savings and Trust Corporation | 0.00 | 511,804,029.18 | 0.00% |
EIB Savings Bank | 0.00 | 71,672,922.39 | 0.00% |
Citibank Savings Inc. | 0.00 | 1,779,432,800.72 | 0.00% |
BDO Elite Savings Bank Inc. | 0.00 | 1,497,352,922.60 | 0.00% |
Pacific Ace Savings Bank | 0.00 | 67,473,628.50 | 0.00% |
BPI Globe Banko Inc. Savings Bank | 0.00 | 489,761,849.54 | 0.00% |
United Overseas Bank Philippines | 0.00 | 677,818,259.21 | 0.00% |
Card SME Bank Inc. (A Thrift Bank) | 0.00 | 133,830,679.61 | 0.00% |
Bataan Development Bank | 0.00 | 67,898,427.98 | 0.00% |
Business & Consumers Bank (A Development Bank) | 0.00 | 75,576,087.80 | 0.00% |
Iloilo City Development Bank | 0.00 | 59,936,963.98 | 0.00% |
Northpoint Development Bank | 0.00 | 51,898,263.72 | 0.00% |
Optimum Development Bank | 0.00 | 634,287,677.54 | 0.00% |
Pridestar Development Bank | 0.00 | 66,223,603.92 | 0.00% |
Bataan SLA | 0.00 | 75,403,679.17 | 0.00% |
City Savings Bank | 0.00 | 1,609,624,035.57 | 0.00% |
Lemery Savings & Loan Bank, Inc. | 0.00 | 69,264,950.06 | 0.00% |
Liberty Savings Bank | 0.00 | 59,477,296.86 | 0.00% |
Merchants Savings & Loan Association Inc. | 0.00 | 211,302,268.20 | 0.00% |
Progress SLA | 0.00 | 84,589,381.44 | 0.00% |
Dungganon Bank | 0.00 | 59,995,203.59 | 0.00% |
Microfinance Maximum SB (Maxbank) | 0.00 | 61,572,830.22 | 0.00% |
Grand Total | 3,985,494,429.71 | 69,841,151,705.51 | 5.71% |
Source: www.bsp.gov.ph
Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “substantially on the same terms as with other individuals and businesses of comparable risks. (See Planters Development Bank Annual Report December 31, 2010). Loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank. DOSRI Loans that fall past due are often:
- Written off as soon as possible;
- Refinanced or Restructured to become current (this requires Board of Directors Approval); or are
- Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due).
As a result, the Thrift Bank Industry reported that PHP 558.32 billion, or 14.01% of its DOSRI Loans fell past due as of September 30, 2011. This ratio is almost double the Thrift Bank Industry's NPL to TLP-Net Ratio of 7.97% as of the same period. Of the forty-two banks with DOSRI Loans, thirty-seven had zero past due DOSRI Loans. Of the four remaining banks in this list, three had past due DOSRI Loans exceeding 30% of their Total DOSRI Loan Portfolio. These three are as follows:
- Metro Cebu Public Savings Bank (100% of DOSRI Loans)
- Philippine Savings Bank (39.47% of DOSRI Loans)
- Universtiy Savings Bank (31.60% of DOSRI Loans)
Philippine Thrift Banking System | |||
DOSRI Past Due as % of DOSRI | |||
September 30, 2011 | |||
DOSRI Past Due | DOSRI | DOSRI Past Due/DOSRI | |
Bank | (In PHP) | (In PHP) | (In %) |
Metro Cebu Public Savings Bank | 8,455,130.82 | 8,455,130.82 | 100.00% |
Philippine Savings Bank | 546,865,651.06 | 1,385,516,792.21 | 39.47% |
University Savings Bank | 2,174,098.28 | 6,880,332.42 | 31.60% |
Cordillera Savings Bank | 826,522.57 | 4,852,497.37 | 17.03% |
UCPB Savings Bank | 4.00 | 2,281,157.53 | 0.00% |
Equicom SB | 0.00 | 1,480,881.85 | 0.00% |
BPI Direct Savings Bank | 0.00 | 3,497,695.41 | 0.00% |
BPI Family Savings Bank | 0.00 | 53,477,271.99 | 0.00% |
Century Savings Bank | 0.00 | 25,501,500.00 | 0.00% |
Citystate Savings Bank | 0.00 | 270,175,814.67 | 0.00% |
Sterling Bank of Asia | 0.00 | 6,016,323.30 | 0.00% |
HSBC Savings Bank | 0.00 | 93,377,868.01 | 0.00% |
Isla Bank (A Thrift Bank) Inc. | 0.00 | 85,671.86 | 0.00% |
Malayan Bank Savings & Mortgage Bank | 0.00 | 43,021,325.41 | 0.00% |
Tong Yang Savings Bank Inc. | 0.00 | 1,877,934.66 | 0.00% |
Philippine Postal Savings Bank | 0.00 | 211,581,010.42 | 0.00% |
Philippine Business Bank | 0.00 | 27,182,935.08 | 0.00% |
Producers Savings Bank Corporation | 0.00 | 110,428,245.30 | 0.00% |
RCBC Savings Bank | 0.00 | 153,142,966.21 | 0.00% |
China Bank Savings | 0.00 | 9,716,349.45 | 0.00% |
World Partners Bank (A Thrift Bank) | 0.00 | 119,110,094.22 | 0.00% |
Dumaguete City Development Bank | 0.00 | 24,062,000.00 | 0.00% |
First Consolidated Bank Inc. | 0.00 | 9,365,197.88 | 0.00% |
Luzon Development Bank | 0.00 | 84,664,481.36 | 0.00% |
Pampanga Development Bank | 0.00 | 17,059,722.62 | 0.00% |
Planters Development Bank | 0.00 | 481,995,059.24 | 0.00% |
Premiere Development Bank | 0.00 | 19,895,392.06 | 0.00% |
The Queen City Development Bank | 0.00 | 91,738,125.13 | 0.00% |
Penbank Inc. | 0.00 | 251,071,423.18 | 0.00% |
Tower Development Bank | 0.00 | 5,707,777.47 | 0.00% |
Wealth Bank (A Development Bank) | 0.00 | 20,327,439.65 | 0.00% |
Farmers Savings & Loan Bank Inc. | 0.00 | 447,546.50 | 0.00% |
GSIS Family Bank (A Thrift Bank) | 0.00 | 6,095,470.36 | 0.00% |
Hiyas Savings & Loan Bank | 0.00 | 17,123,182.22 | 0.00% |
Life Savings Bank Inc. | 0.00 | 12,153,942.32 | 0.00% |
Malasiqui Progressive SLB, Inc. | 0.00 | 5,100,000.00 | 0.00% |
Maritime SLA Inc. | 0.00 | 2,649,333.32 | 0.00% |
Quezon Coconut Producers SLB Inc. | 0.00 | 1,536,347.32 | 0.00% |
Real Bank (A Thrift Bank) Inc. | 0.00 | 343,830,314.17 | 0.00% |
Sampaguita SLA, Inc. | 0.00 | 4,500,000.00 | 0.00% |
Village SLA, Inc. | 0.00 | 40,989,576.89 | 0.00% |
Opportunity Microfinance Bank | 0.00 | 7,522,299.83 | 0.00% |
Allied Savings Bank | 0.00 | 0.00 | NA |
Bank One Savings and Trust Corporation | 0.00 | 0.00 | NA |
Bataan Development Bank | 0.00 | 0.00 | NA |
Bataan SLA | 0.00 | 0.00 | NA |
BDO Elite Savings Bank Inc. | 0.00 | 0.00 | NA |
BPI Globe Banko Inc. Savings Bank | 0.00 | 0.00 | NA |
Business & Consumers Bank (A Development Bank) | 0.00 | 0.00 | NA |
Card SME Bank Inc. (A Thrift Bank) | 0.00 | 0.00 | NA |
Citibank Savings Inc. | 0.00 | 0.00 | NA |
City Savings Bank | 0.00 | 0.00 | NA |
Dungganon Bank | 0.00 | 0.00 | NA |
EIB Savings Bank | 0.00 | 0.00 | NA |
Iloilo City Development Bank | 0.00 | 0.00 | NA |
Lemery Savings & Loan Bank, Inc. | 0.00 | 0.00 | NA |
Liberty Savings Bank | 0.00 | 0.00 | NA |
Merchants Savings & Loan Association Inc. | 0.00 | 0.00 | NA |
Microfinance Maximum SB (Maxbank) | 0.00 | 0.00 | NA |
Northpoint Development Bank | 0.00 | 0.00 | NA |
Optimum Development Bank | 0.00 | 0.00 | NA |
Pacific Ace Savings Bank | 0.00 | 0.00 | NA |
Pridestar Development Bank | 0.00 | 0.00 | NA |
Progress SLA | 0.00 | 0.00 | NA |
United Overseas Bank Philippines | 0.00 | 0.00 | NA |
Grand Total | 558,321,406.73 | 3,985,494,429.71 | 14.01% |
Source: www.bsp.gov.ph
I don't get how City Savings Bank is considered distressed?
ReplyDeleteNPL 66 million, TLP 8 billion, NPL/TLP 0.82%, SE 1.6 billion, NPL/SE 4.12%, DOSRI 0.
What am I missing?
On another page you listed their distressed assets at around 8 billion, so performing loans are part of distressed assets? I just don't get it..
Classified Loans and other Risk Assets. In other words, loans that are past due but not yet listed as non-performing (i.e. more than 90 days past due). That amount is more than PHP 8 billion, which is staggering considering that their capital base is only PHP 1.6 billion. So even a 5% to 10% deterioration can take out a substantial chunk of the bank's capital. But don't take my word for it. Check this out on the BSP website: http://www.bsp.gov.ph/banking/psoc_tb/citysla.htm
DeleteThat honestly doesn't make sense because it would mean their total loan portfolio of PHP 8 billion is past due.
ReplyDeleteFrom what I understand their loans are to teachers and low-risk, and they get paid back automatically by DepEd (department of education) payroll deductions or something to that effect.
Their NPLs are less than 1% of total loan portfolio and have been for the few years I've been banking with them, yet 100% of the loan portfolio is past due? How can this even be possible?
It appears they have listed their entire (performing) loan portfolio under the "classified loans and other risk assets" column.
It's all very confusing to me..
Don't look now but City Savings Bank has deteriorated even further. Its distressed assets increased by 23.67% or PHP 2.178 billion to reach PHP 10.777 billion in the fourth quarter of 2011. http://bancofilipinofailure.blogspot.com/2012/05/city-savings-bank-is-now-2nd-most.html. You can check it out yourself at http://www.bsp.gov.ph/banking/psoc_tb/CITY%20SABINGS%20BANK.htm
DeleteI have no idea. That's what the data is saying: that their entire loan portfolio is past due. Unless the data from BSP says something otherwise or is in error, only can you draw other conclusions. But the data has been like that since December 2010. In fact, classified loans have increased every quarter since December 2010. Check this out: http://bancofilipinofailure.blogspot.com/2012/02/thrift-banks-improve-due-to.html and this: http://bancofilipinofailure.blogspot.com/2011/11/borderline-thrift-banks-still.html. Also, go to www.bsp.gov.ph. You can download the data yourself from the statistics page. If this was in error, then it's been in error in the BSP website since December 2010.
ReplyDelete