Philippine Savings Bank takes the Silver in DOSRI Past Due Loans!

Editor's Note:  This blog was inspired by the spectacular failure of Banco Filipino Savings and Mortgage Bank for the second time in its 38 years of existence.  This blog post and other blog posts like it attempt to describe why the bank failed.  But it also attempts to assess what other Philippine Banks have the potential to fail in the not too distant future. To see blog posts on other banks, click on the Banco Filipino Graphic at the top of the blog or click on the blog archive on the right hand column, or simply go to bancofilipinofailure.blogspot.com.




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

The NPL Ratio, taken by itself, is often meaningless.  For instance, the NPL Ratio of EIB Savings Bank is a staggering 1364.59% of its Total Loan Portfolio -Net as of September 30, 2011.  This is due to the fact that its Total Loan Portfolio only amounts to PHP 407.36 K versus NPLs of PHP 5.56 billion. The bulk of its earning assets are in financial instruments and receivables from other banks. See: http://www.bsp.gov.ph/banking/psoc_tb/eibsb.htm.  Nevertheless, there are several banks that have NPL ratios higher than 30% of their Total Loan Portfolio - Net.  These are:

1. EIB Savings Bank (1364.59% of TLP-Net)
2. Northpoint Development Bank (119.57% of TLP-Net)
3. Metro Cebu Public Savings Bank (74.29% of TLP-Net)
4. GSIS Family Bank (72.22% of TLP-Net)
5. Pacific Ace Savings Bank (66.73% of TLP-Net)
6. Real Bank (47.81% of TLP-Net)
7. 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:

1. Real Bank (718.27% of SE)
2. Citibank Savings Inc. (116.77% of SE)
3. Metro Cebu Public Savings Bank (79.09% of SE)
4. Philippine Postal Savings Bank (72.12% of SE)
5. GSIS Family Bank (68.55% of SE)
6. Farmers Savings & Loan Bank Inc. (61.03% of SE)
7. Sterling Bank of Asia (54.77% of SE)
8. Premiere Development Bank (53.26% of SE)
9. Village SLA, Inc. (51.21% of SE)
10. Planters Development Bank (50.16% of SE)
11. Bataan Development Bank (46.17% of SE)
12. Opportunity Microfinance Bank (43.94% of SE)
13. Hiyas Savings & Loan Bank (41.99% of SE)
14. Penbank, Inc. (37.16% of SE)
15. Philippine Savings Bank (35.30% of SE)
16. Malasiqui Progressive SLB, Inc. (32.03% of SE)
17. Northpoint Development Bank (31.65% of SE)
18. 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: 

1. Penbank Inc. (24.32% of TLP-Net)
2. Citystate Savings Bank (22.66% of TLP-Net)
3. Life Savings Bank Inc. (19.65% of TLP-Net)
4. Village SLA, Inc. (16.85% of TLP-Net)
5. 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:

1. Penbank Inc. (109.34% of SE)
2. 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:

1. Written off as soon as possible;
2. Refinanced or Restructured to become current (this requires Board of Directors Approval); or are
3. 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:

1. Metro Cebu Public Savings Bank (100% of DOSRI Loans)
2. Philippine Savings Bank (39.47% of DOSRI Loans)
3. 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