DOSRI. Short for DOSRI Loans and Transactions. Otherwise known as loans to Directors, Officers, Stockholders, and Related Interests (DOSRI). Regulators and Legislators have established laws and regulations that limit DOSRI loans. The General Banking Act and BSP regulations limit the amount of the loans granted by a bank to a single borrower to 25% of equity. The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the amount of the deposit and book value of the investment in the bank. In the aggregate, loans to DOSRI generally should not exceed the total equity or 15% of the total loan portfolio of the bank, whichever is lower.
In the Philippine Commercial Banking Industry, DOSRI Loans stood at PHP 175.83 billion, or 6.01% of a Total Loan Portfolio - Net (TLP-Net) of PHP 2.928 trillion as of September 30, 2011.
Editor's Note: Data is culled from the Published Statements of Condition of individual commercial 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: "Export and Industry Bank Becomes Even More Insolvent! - September 30, 2011
| Philippine Commercial Banking System | |||
| DOSRI as % of TLP-Net | |||
| September 30, 2011 | |||
| DOSRI | TLP-Net | DOSRI/TLP-Net | |
| Bank | (In PHP) | (In PHP) | (In %) |
| Development Bank of the Philippines | 34,880,706,231.54 | 122,350,112,280.51 | 28.51% |
| Land Bank of the Philippines | 66,214,268,832.15 | 249,043,330,164.20 | 26.59% |
| Banco De Oro Unibank Inc. | 31,162,432,793.03 | 597,719,760,683.43 | 5.21% |
| Allied Banking Corporation | 4,165,006,448.04 | 80,576,527,592.32 | 5.17% |
| Metropolitan Bank & Trust Company | 14,096,191,617.34 | 322,224,675,897.59 | 4.37% |
| East West Banking Corporation | 1,971,686,870.23 | 45,595,902,848.73 | 4.32% |
| Rizal Commercial Banking Corporation | 4,836,272,234.27 | 126,087,844,971.60 | 3.84% |
| Robinsons Bank Corporation | 653,559,386.24 | 17,256,284,149.06 | 3.79% |
| China Banking Corporation | 4,419,707,274.23 | 126,085,836,777.34 | 3.51% |
| Philippine National Bank | 3,398,668,985.36 | 124,956,756,757.78 | 2.72% |
| Bank of Commerce | 1,107,858,132.27 | 43,147,132,203.22 | 2.57% |
| Maybank Philippines Inc. | 532,118,192.29 | 21,436,482,574.46 | 2.48% |
| Asia United Bank | 489,991,967.54 | 22,302,345,192.16 | 2.20% |
| Bank of the Philippine Islands | 5,493,465,740.72 | 301,051,784,138.57 | 1.82% |
| HongKong & Shanghai Banking Corporation | 558,044,992.78 | 47,792,413,204.21 | 1.17% |
| Bank of America N.A. | 31,844,886.32 | 4,380,554,126.38 | 0.73% |
| Union Bank of the Philippines | 600,756,594.29 | 106,908,372,927.56 | 0.56% |
| Citibank N.A. | 643,489,289.10 | 149,510,197,442.11 | 0.43% |
| Philippine Bank of Communications | 30,412,288.94 | 8,126,615,172.52 | 0.37% |
| United Coconut Planters Bank | 196,320,194.15 | 53,204,250,492.65 | 0.37% |
| Philippine Veterans Bank | 63,541,286.13 | 24,351,077,322.34 | 0.26% |
| Standard Chartered Bank | 96,432,876.78 | 50,010,212,239.78 | 0.19% |
| Security Bank Corporation | 124,518,585.41 | 79,394,000,001.36 | 0.16% |
| Chinatrust (Philippines) Commercial Banking Corporation | 18,116,024.57 | 14,065,584,800.98 | 0.13% |
| ANZ Banking Group Ltd | 30,173,095.29 | 25,481,676,839.04 | 0.12% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 12,238,049.91 | 21,131,200,246.84 | 0.06% |
| Korea Exchange Bank | 798,588.00 | 5,311,331,158.81 | 0.02% |
| Philippine Trust Company | 0.00 | 27,747,876,491.09 | 0.00% |
| Mega International Commercial Bank Co. Ltd | 0.00 | 5,813,577,780.71 | 0.00% |
| Bangkok Bank Public Co. Ltd. | 0.00 | 2,939,463,049.26 | 0.00% |
| Al Amanah Islamic Bank of the Philippines | 0.00 | 158,854,606.19 | 0.00% |
| Bank of China Limited - Manila Branch | 0.00 | 3,846,074,821.63 | 0.00% |
| Internationale Nederlanden Groep Bank | 0.00 | 18,081,565,050.02 | 0.00% |
| BDO Private Bank, Inc. | 0.00 | 4,471,406,138.48 | 0.00% |
| Deutsche Bank AG | 0.00 | 29,284,533,573.53 | 0.00% |
| JP Morgan Chase Bank National Association | 0.00 | 15,860,553,330.45 | 0.00% |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 30,237,307,300.56 | 0.00% |
| Grand Total | 175,828,621,456.92 | 2,927,943,474,347.47 | 6.01% |
Source: www.bsp.gov.ph
Out of the 37 banks in this list, ten banks or roughly 27% of the banks had no DOSRI loans as of September 30, 2011. Of the 27 banks that reported DOSRI Loans, the ratio of DOSRI Loans to Total Loan Portfolio - Net was slightly higher (6.30%) than the 6.01% ratio reported for all commercial banks as of September 30, 2011. The banks with the highest ratio of DOSRI Loans to TLP-Net were government banks, namely:
- Development Bank of the Philippines (28.51% of TLP-Net)
- Land Bank of the Philippines (26.59% of TLP-Net)
DOSRI rules indicate that DOSRI Loans, in the aggregate, should not exceed the total equity of the bank. Therefore banks with significantly high DOSRI Loans as a percentage of Total Stockholders Equity (SE) may be approaching DOSRI Limits. In this matter, two government banks again stand out:
- Land Bank of the Philippines (100.87% of SE)
- Development Bank of the Philippines (89.18% of SE)
A third bank, Banco De Oro Unibank has DOSRI Loans equivalent to 35.02% of its Stockholders Equity.
| Philippine Commercial Banking System | |||
| DOSRI as % of SE | |||
| September 30, 2011 | |||
| DOSRI | SE | DOSRI/SE | |
| Bank | (In PHP) | (In PHP) | (In %) |
| Land Bank of the Philippines | 66,214,268,832.15 | 65,642,839,960.25 | 100.87% |
| Development Bank of the Philippines | 34,880,706,231.54 | 39,111,276,979.79 | 89.18% |
| Banco De Oro Unibank Inc. | 31,162,432,793.03 | 88,975,509,887.06 | 35.02% |
| Allied Banking Corporation | 4,165,006,448.04 | 16,956,676,338.10 | 24.56% |
| East West Banking Corporation | 1,971,686,870.23 | 10,363,422,827.73 | 19.03% |
| Maybank Philippines Inc. | 532,118,192.29 | 3,229,189,616.24 | 16.48% |
| Metropolitan Bank & Trust Company | 14,096,191,617.34 | 98,546,088,987.74 | 14.30% |
| China Banking Corporation | 4,419,707,274.23 | 33,346,295,133.54 | 13.25% |
| Robinsons Bank Corporation | 653,559,386.24 | 5,068,300,216.25 | 12.90% |
| Rizal Commercial Banking Corporation | 4,836,272,234.27 | 40,739,143,784.29 | 11.87% |
| Philippine National Bank | 3,398,668,985.36 | 31,740,513,590.20 | 10.71% |
| HongKong & Shanghai Banking Corporation | 558,044,992.78 | 5,312,053,255.20 | 10.51% |
| Citibank N.A. | 643,489,289.10 | 8,416,476,308.62 | 7.65% |
| Bank of the Philippine Islands | 5,493,465,740.72 | 82,819,658,436.74 | 6.63% |
| Bank of Commerce | 1,107,858,132.27 | 17,216,195,258.88 | 6.43% |
| Asia United Bank | 489,991,967.54 | 8,696,451,178.16 | 5.63% |
| Bank of America N.A. | 31,844,886.32 | 596,946,705.20 | 5.33% |
| Standard Chartered Bank | 96,432,876.78 | 2,084,570,659.58 | 4.63% |
| Union Bank of the Philippines | 600,756,594.29 | 33,802,457,673.54 | 1.78% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 12,238,049.91 | 798,272,818.08 | 1.53% |
| United Coconut Planters Bank | 196,320,194.15 | 15,700,882,354.87 | 1.25% |
| Philippine Veterans Bank | 63,541,286.13 | 5,338,983,472.43 | 1.19% |
| ANZ Banking Group Ltd | 30,173,095.29 | 2,541,203,929.44 | 1.19% |
| Philippine Bank of Communications | 30,412,288.94 | 4,088,965,572.94 | 0.74% |
| Security Bank Corporation | 124,518,585.41 | 28,137,051,304.08 | 0.44% |
| Chinatrust (Philippines) Commercial Banking Corporation | 18,116,024.57 | 5,943,623,655.41 | 0.30% |
| Korea Exchange Bank | 798,588.00 | 622,999,254.69 | 0.13% |
| Al Amanah Islamic Bank of the Philippines | 0.00 | 500,709,874.02 | 0.00% |
| Bangkok Bank Public Co. Ltd. | 0.00 | 300,705,341.04 | 0.00% |
| Bank of China Limited - Manila Branch | 0.00 | 599,578,966.35 | 0.00% |
| BDO Private Bank, Inc. | 0.00 | 4,786,066,028.40 | 0.00% |
| Deutsche Bank AG | 0.00 | 2,237,137,603.64 | 0.00% |
| Internationale Nederlanden Groep Bank | 0.00 | 5,299,477,995.43 | 0.00% |
| JP Morgan Chase Bank National Association | 0.00 | 1,776,303,428.35 | 0.00% |
| Mega International Commercial Bank Co. Ltd | 0.00 | 518,994,163.50 | 0.00% |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 1,290,955,398.99 | 0.00% |
| Philippine Trust Company | 0.00 | 14,306,872,181.03 | 0.00% |
| Grand Total | 175,828,621,456.92 | 687,452,850,139.80 | 25.58% |
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 “on commercial, arm's length terms, i.e., substantially on the same terms as loans to other individuals and businesses of comparable risks” (See RCBC's Consolidated Financial Statements as of December 31, 2010. http://www.docstoc.com/docs/111840464/RCBC-Financial-Statements-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; or are
- Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due).
| Philippine Commercial 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 %) |
| Robinsons Bank Corporation | 640,208,141.93 | 653,559,386.24 | 97.96% |
| Rizal Commercial Banking Corporation | 525,364,195.43 | 4,836,272,234.27 | 10.86% |
| Philippine Veterans Bank | 4,294,816.06 | 63,541,286.13 | 6.76% |
| United Coconut Planters Bank | 4,386,057.66 | 196,320,194.15 | 2.23% |
| Philippine Bank of Communications | 537,169.15 | 30,412,288.94 | 1.77% |
| Asia United Bank | 7,454,609.16 | 489,991,967.54 | 1.52% |
| Chinatrust (Philippines) Commercial Banking Corporation | 68,976.33 | 18,116,024.57 | 0.38% |
| East West Banking Corporation | 4,649,571.57 | 1,971,686,870.23 | 0.24% |
| Bank of the Philippine Islands | 1,436,826.85 | 5,493,465,740.72 | 0.03% |
| China Banking Corporation | 74,714.58 | 4,419,707,274.23 | 0.00% |
| Bank of America N.A. | 0.09 | 31,844,886.32 | 0.00% |
| Allied Banking Corporation | 0.00 | 4,165,006,448.04 | 0.00% |
| Development Bank of the Philippines | 0.00 | 34,880,706,231.54 | 0.00% |
| HongKong & Shanghai Banking Corporation | 0.00 | 558,044,992.78 | 0.00% |
| Land Bank of the Philippines | 0.00 | 66,214,268,832.15 | 0.00% |
| Metropolitan Bank & Trust Company | 0.00 | 14,096,191,617.34 | 0.00% |
| Philippine National Bank | 0.00 | 3,398,668,985.36 | 0.00% |
| Security Bank Corporation | 0.00 | 124,518,585.41 | 0.00% |
| Standard Chartered Bank | 0.00 | 96,432,876.78 | 0.00% |
| Union Bank of the Philippines | 0.00 | 600,756,594.29 | 0.00% |
| Banco De Oro Unibank Inc. | 0.00 | 31,162,432,793.03 | 0.00% |
| Bank of Commerce | 0.00 | 1,107,858,132.27 | 0.00% |
| Maybank Philippines Inc. | 0.00 | 532,118,192.29 | 0.00% |
| ANZ Banking Group Ltd | 0.00 | 30,173,095.29 | 0.00% |
| Citibank N.A. | 0.00 | 643,489,289.10 | 0.00% |
| Korea Exchange Bank | 0.00 | 798,588.00 | 0.00% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 0.00 | 12,238,049.91 | 0.00% |
| Al Amanah Islamic Bank of the Philippines | 0.00 | 0.00 | NA |
| Bangkok Bank Public Co. Ltd. | 0.00 | 0.00 | NA |
| Bank of China Limited - Manila Branch | 0.00 | 0.00 | NA |
| BDO Private Bank, Inc. | 0.00 | 0.00 | NA |
| Deutsche Bank AG | 0.00 | 0.00 | NA |
| Internationale Nederlanden Groep Bank | 0.00 | 0.00 | NA |
| JP Morgan Chase Bank National Association | 0.00 | 0.00 | NA |
| Mega International Commercial Bank Co. Ltd | 0.00 | 0.00 | NA |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 0.00 | NA |
| Philippine Trust Company | 0.00 | 0.00 | NA |
| Grand Total | 1,188,475,078.81 | 175,828,621,456.92 | 0.68% |
Source: www.bsp.gov.ph
Of the 27 banks that reported having DOSRI Loans, an astounding 17 or 63% of them had no or absolutely zero Past Due DOSRI Loans. Yet all but two of the 17 banks with no Past Due DOSRI Loans were not able to repeat the same performance for their general loan portfolio, of which 2.71% was non-performing as of September 30, 2011.
| Philippine Commercial Banks | |||
| w/ No DOSRI Past Due | |||
| NPL as % of TLP-Net | |||
| September 30, 2011 | |||
| NPL | TLP-Net | NPL/TLP-Net | |
| Bank | (In PHP) | (In PHP) | (In %) |
| Allied Banking Corporation | 3,660,176,304.19 | 80,576,527,592.32 | 4.54% |
| Banco De Oro Unibank Inc. | 14,023,958,640.75 | 597,719,760,683.43 | 2.35% |
| Bank of Commerce | 3,851,255,555.30 | 43,147,132,203.22 | 8.93% |
| Citibank N.A. | 1,378,522,167.76 | 149,510,197,442.11 | 0.92% |
| Development Bank of the Philippines | 5,621,768,112.13 | 122,350,112,280.51 | 4.59% |
| HongKong & Shanghai Banking Corporation | 823,740,194.16 | 47,792,413,204.21 | 1.72% |
| Korea Exchange Bank | 34,553,448.15 | 5,311,331,158.81 | 0.65% |
| Land Bank of the Philippines | 7,442,273,855.28 | 249,043,330,164.20 | 2.99% |
| Maybank Philippines Inc. | 604,504,545.94 | 21,436,482,574.46 | 2.82% |
| Metropolitan Bank & Trust Company | 5,237,059,619.25 | 322,224,675,897.59 | 1.63% |
| Philippine National Bank | 6,917,965,723.74 | 124,956,756,757.78 | 5.54% |
| Security Bank Corporation | 765,020,059.96 | 79,394,000,001.36 | 0.96% |
| Standard Chartered Bank | 1,158,110,555.43 | 50,010,212,239.78 | 2.32% |
| Union Bank of the Philippines | 2,599,204,871.14 | 106,908,372,927.56 | 2.43% |
| Grand Total | 54,118,113,653.18 | 2,000,381,305,127.34 | 2.71% |
Source: www.bsp.gov.ph
Given all the measures banks can take to prevent a DOSRI Loan from falling past due, it is not surprising to find past due rates of DOSRI Loans significantly below the NPL ratios of their Total Loan Portfolios. What is generally surprising is to find DOSRI Loans that fall past due in significantly higher proportions than the banks NPL ratio on their Total Loan Portfolios. Only two banks fall into this category:
- Robinsons Bank Corporation (DOSRI Past Due Ratio of 97.96% versus an NPL Ratio of 2.35%)
- Rizal Commercial Banking Corporation (DOSRI Past Due Ratio of 10.86% versus an NPL Ratio of 1.26%)
Robinsons Bank Corporation's (Robinsons Bank) case is particularly telling. Of the PHP 650 million plus in DOSRI Loans outstanding, PHP 640 million or 98% fell past due. This could indicate further trouble at the bank and/or one of the related interests companies. In this case, most likely one of the Gokongwei family's many business interests. Disclosures on these DOSRI Loans are very limited. As such, it is difficult to determine whether further deterioration in the DOSRI Loans may happen. See a previous blog post "Sunlight is the Best Disinfectant to Purge the Rot in the Philippine Banking System" for more details.
Robinsons Bank tried to disguise the fact that practically all its DOSRI Loans fell past due by not reporting the absolute amount of past due DOSRI Loans, as is standard practice by other banks. Instead, they skipped that line and went on to report the ratio of past due DOSRI Loans to its Total Loan Portfolio, which was 3.71% as of September 30, 2011. See: http://www.bsp.gov.ph/banking/psoc/by_banks/ROBINSONS%20BANK.htm. At first glance, the 3.71% figure looked deceptively low. But considering that around 3.79% of Robinsons Bank's Total Loan Portfolio is DOSRI, approximately 97.96% of Robinsons Banking Corporation's DOSRI Loans fell past due.
The bank with the second highest ratio of past due DOSRI Loans, Rizal Commercial Banking Corporation (RCBC), in contrast to Robinsons Bank, reported the absolute amount of past due DOSRI Loans as PHP 525.36 million, which is consistent with the way other Philippine banks have generally reported the level of their past due DOSRI Loans. See: http://www.bsp.gov.ph/banking/psoc/by_banks/R%20C%20B%20C%20.htm
Robinsons Bank tried to disguise the fact that practically all its DOSRI Loans fell past due by not reporting the absolute amount of past due DOSRI Loans, as is standard practice by other banks. Instead, they skipped that line and went on to report the ratio of past due DOSRI Loans to its Total Loan Portfolio, which was 3.71% as of September 30, 2011. See: http://www.bsp.gov.ph/banking/psoc/by_banks/ROBINSONS%20BANK.htm. At first glance, the 3.71% figure looked deceptively low. But considering that around 3.79% of Robinsons Bank's Total Loan Portfolio is DOSRI, approximately 97.96% of Robinsons Banking Corporation's DOSRI Loans fell past due.
The bank with the second highest ratio of past due DOSRI Loans, Rizal Commercial Banking Corporation (RCBC), in contrast to Robinsons Bank, reported the absolute amount of past due DOSRI Loans as PHP 525.36 million, which is consistent with the way other Philippine banks have generally reported the level of their past due DOSRI Loans. See: http://www.bsp.gov.ph/banking/psoc/by_banks/R%20C%20B%20C%20.htm
The NPL Ratio of the Philippine Commercial Banking System is at historic lows: 2.67%
| Philippine Commercial Banking System | |||
| NPL as % of TLP-Net | |||
| September 30, 2011 | |||
| NPL | TLP-Net | NPL/TLP-Net | |
| Bank | (In PHP) | (In PHP) | (In %) |
| Bank of Commerce | 3,851,255,555.30 | 43,147,132,203.22 | 8.93% |
| Philippine Bank of Communications | 679,377,640.04 | 8,126,615,172.52 | 8.36% |
| United Coconut Planters Bank | 4,387,542,765.62 | 53,204,250,492.65 | 8.25% |
| East West Banking Corporation | 3,150,811,043.45 | 45,595,902,848.73 | 6.91% |
| Philippine Veterans Bank | 1,602,325,102.64 | 24,351,077,322.34 | 6.58% |
| Philippine National Bank | 6,917,965,723.74 | 124,956,756,757.78 | 5.54% |
| Development Bank of the Philippines | 5,621,768,112.13 | 122,350,112,280.51 | 4.59% |
| Allied Banking Corporation | 3,660,176,304.19 | 80,576,527,592.32 | 4.54% |
| Chinatrust (Philippines) Commercial Banking Corporation | 617,505,709.02 | 14,065,584,800.98 | 4.39% |
| Philippine Trust Company | 965,742,692.64 | 27,747,876,491.09 | 3.48% |
| Mega International Commercial Bank Co. Ltd | 199,851,603.12 | 5,813,577,780.71 | 3.44% |
| China Banking Corporation | 4,145,797,772.59 | 126,085,836,777.34 | 3.29% |
| Land Bank of the Philippines | 7,442,273,855.28 | 249,043,330,164.20 | 2.99% |
| Maybank Philippines Inc. | 604,504,545.94 | 21,436,482,574.46 | 2.82% |
| Union Bank of the Philippines | 2,599,204,871.14 | 106,908,372,927.56 | 2.43% |
| Robinsons Bank Corporation | 404,879,571.84 | 17,256,284,149.06 | 2.35% |
| Banco De Oro Unibank Inc. | 14,023,958,640.75 | 597,719,760,683.43 | 2.35% |
| Standard Chartered Bank | 1,158,110,555.43 | 50,010,212,239.78 | 2.32% |
| Asia United Bank | 456,560,832.07 | 22,302,345,192.16 | 2.05% |
| Bank of the Philippine Islands | 5,920,673,288.29 | 301,051,784,138.57 | 1.97% |
| HongKong & Shanghai Banking Corporation | 823,740,194.16 | 47,792,413,204.21 | 1.72% |
| Metropolitan Bank & Trust Company | 5,237,059,619.25 | 322,224,675,897.59 | 1.63% |
| Rizal Commercial Banking Corporation | 1,594,412,116.37 | 126,087,844,971.60 | 1.26% |
| Bangkok Bank Public Co. Ltd. | 36,157,072.29 | 2,939,463,049.26 | 1.23% |
| Security Bank Corporation | 765,020,059.96 | 79,394,000,001.36 | 0.96% |
| Citibank N.A. | 1,378,522,167.76 | 149,510,197,442.11 | 0.92% |
| Al Amanah Islamic Bank of the Philippines | 1,232,146.27 | 158,854,606.19 | 0.78% |
| Korea Exchange Bank | 34,553,448.15 | 5,311,331,158.81 | 0.65% |
| Bank of China Limited - Manila Branch | 8,660,895.91 | 3,846,074,821.63 | 0.23% |
| ANZ Banking Group Ltd | 23,339,114.85 | 25,481,676,839.04 | 0.09% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 125,938.80 | 21,131,200,246.84 | 0.00% |
| Internationale Nederlanden Groep Bank | 89.44 | 18,081,565,050.02 | 0.00% |
| BDO Private Bank, Inc. | 0.00 | 4,471,406,138.48 | 0.00% |
| Bank of America N.A. | 0.00 | 4,380,554,126.38 | 0.00% |
| Deutsche Bank AG | 0.00 | 29,284,533,573.53 | 0.00% |
| JP Morgan Chase Bank National Association | 0.00 | 15,860,553,330.45 | 0.00% |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 30,237,307,300.56 | 0.00% |
| Grand Total | 78,313,109,048.43 | 2,927,943,474,347.47 | 2.67% |
Source: www.bsp.gov.ph
However, quite a few banks have significantly high NPLs as a percentage of their stockholders equity as of September 30, 2011. These are as follows:
However, quite a few banks have significantly high NPLs as a percentage of their stockholders equity as of September 30, 2011. These are as follows:
- Standard Chartered Bank (NPL/SE Ratio of 55.56%)
- Mega International Commercial Bank Co. Ltd (NPL/SE Ratio of 38.51%)
- East West Banking Corporation (NPL/SE Ratio of 30.40%)
- Philippine Veterans Bank (NPL/SE Ratio of 30.01%)
Again, any further deterioration in the value of these banks NPLs may lead to a significant reduction of the bank's capital, particularly if the bank has not adequately reserved capital for future losses on these NPLs. But of the four banks listed above, only one bank, Philippine Veterans Bank, is very distressed. See a previous blog post: http://bancofilipinofailure.blogspot.com/2012/02/slight-improvement-in-philippine.html for more information.
| Philippine Commercial Banking System | |||
| NPL as % of SE | |||
| September 30, 2011 | |||
| NPL | SE | NPL/SE | |
| Bank | (In PHP) | (In PHP) | (In %) |
| Standard Chartered Bank | 1,158,110,555.43 | 2,084,570,659.58 | 55.56% |
| Mega International Commercial Bank Co. Ltd | 199,851,603.12 | 518,994,163.50 | 38.51% |
| East West Banking Corporation | 3,150,811,043.45 | 10,363,422,827.73 | 30.40% |
| Philippine Veterans Bank | 1,602,325,102.64 | 5,338,983,472.43 | 30.01% |
| United Coconut Planters Bank | 4,387,542,765.62 | 15,700,882,354.87 | 27.94% |
| Bank of Commerce | 3,851,255,555.30 | 17,216,195,258.88 | 22.37% |
| Philippine National Bank | 6,917,965,723.74 | 31,740,513,590.20 | 21.80% |
| Allied Banking Corporation | 3,660,176,304.19 | 16,956,676,338.10 | 21.59% |
| Maybank Philippines Inc. | 604,504,545.94 | 3,229,189,616.24 | 18.72% |
| Philippine Bank of Communications | 679,377,640.04 | 4,088,965,572.94 | 16.61% |
| Citibank N.A. | 1,378,522,167.76 | 8,416,476,308.62 | 16.38% |
| Banco De Oro Unibank Inc. | 14,023,958,640.75 | 88,975,509,887.06 | 15.76% |
| HongKong & Shanghai Banking Corporation | 823,740,194.16 | 5,312,053,255.20 | 15.51% |
| Development Bank of the Philippines | 5,621,768,112.13 | 39,111,276,979.79 | 14.37% |
| China Banking Corporation | 4,145,797,772.59 | 33,346,295,133.54 | 12.43% |
| Bangkok Bank Public Co. Ltd. | 36,157,072.29 | 300,705,341.04 | 12.02% |
| Land Bank of the Philippines | 7,442,273,855.28 | 65,642,839,960.25 | 11.34% |
| Chinatrust (Philippines) Commercial Banking Corporation | 617,505,709.02 | 5,943,623,655.41 | 10.39% |
| Robinsons Bank Corporation | 404,879,571.84 | 5,068,300,216.25 | 7.99% |
| Union Bank of the Philippines | 2,599,204,871.14 | 33,802,457,673.54 | 7.69% |
| Bank of the Philippine Islands | 5,920,673,288.29 | 82,819,658,436.74 | 7.15% |
| Philippine Trust Company | 965,742,692.64 | 14,306,872,181.03 | 6.75% |
| Korea Exchange Bank | 34,553,448.15 | 622,999,254.69 | 5.55% |
| Metropolitan Bank & Trust Company | 5,237,059,619.25 | 98,546,088,987.74 | 5.31% |
| Asia United Bank | 456,560,832.07 | 8,696,451,178.16 | 5.25% |
| Rizal Commercial Banking Corporation | 1,594,412,116.37 | 40,739,143,784.29 | 3.91% |
| Security Bank Corporation | 765,020,059.96 | 28,137,051,304.08 | 2.72% |
| Bank of China Limited - Manila Branch | 8,660,895.91 | 599,578,966.35 | 1.44% |
| ANZ Banking Group Ltd | 23,339,114.85 | 2,541,203,929.44 | 0.92% |
| Al Amanah Islamic Bank of the Philippines | 1,232,146.27 | 500,709,874.02 | 0.25% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 125,938.80 | 798,272,818.08 | 0.02% |
| Internationale Nederlanden Groep Bank | 89.44 | 5,299,477,995.43 | 0.00% |
| Bank of America N.A. | 0.00 | 596,946,705.20 | 0.00% |
| BDO Private Bank, Inc. | 0.00 | 4,786,066,028.40 | 0.00% |
| Deutsche Bank AG | 0.00 | 2,237,137,603.64 | 0.00% |
| JP Morgan Chase Bank National Association | 0.00 | 1,776,303,428.35 | 0.00% |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 1,290,955,398.99 | 0.00% |
| Grand Total | 78,313,109,048.43 | 687,452,850,139.80 | 11.39% |
Source: www.bsp.gov.ph
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