In a previous post, "BSP's Ampaw Accounting System", we detailed how quite a few banks had overstated capital as a result of BSP's policy of granting "regulatory relief" and allowed the deferment and amortization of unbooked losses arising from:
- SPV Transactions;
- Acquisitions of failed/failing banks;
- Large credit losses
The premise behind this policy is regulatory forbearance that would allow the banks to earn back and write off those losses over time, reducing their need to raise additional capital and avoid significant dilution of existing shareholders.
In other cases, such as in Asiatrust, banks were literally too weak to write down some additional charges and refused to take the losses.
These measures are not considered "kosher" under Philippine Financial Reporting Standards, resulting in qualified auditors opinions for the bulk of these banks accompanied by the auditor's own estimate on the impact of these unbooked losses on bank capital and assets.
However, the auditor's opinion is issued only once a year, making it difficult for the general public to gauge the financial health of a particular bank in between audited financial statements. Fortunately, these banks are required to report these unbooked losses in their quarterly Published Statement of Condition as "Deferred Charges Not Yet Written Down," giving the public a way to track these unbooked losses on a quarterly basis. (See www.bsp.gov.ph).
PBCom again tops the list of banks adversely affected by these unbooked losses in terms of its impact on stockholders equity. It's unbooked losses, if booked, would reduce its stockholders equity by 73.39%. This represents a substantial improvement over its unbooked losses as of September 30, 2011, which was calculated to wipe out its stockholders equity by 128.76%.
The third highest ranking bank on this list, Philippine National Bank, also showed some improvement. The impact of unbooked losses on its stockholders equity declined to 26.49% as of December 31, 2011 from 32.95% as of September 30, 2011.
Editors Note: Banks highlighted in yellow have been classified as distressed based on their ratio of Total Distressed Assets to their Total Capital Cushion. For more information regarding this, see a previous blog post, "Philippine Commercial Banks Show Improvement at Year End 2011"
| Philippine Commercial Banking System | ||||
| Deferred Charges Not Yet Written Down | ||||
| Impact on Stockholders Equity | ||||
| In PHP | ||||
| December 31, 2011 | ||||
| Bank | Unbooked Losses | SE | Adjusted SE | Impact on SE |
| Philippine Bank of Communications | 4,979,056,742.31 | 6,784,694,870.58 | 1,805,638,128.27 | 73.39% |
| United Coconut Planters Bank | 10,952,910,818.55 | 17,121,309,535.04 | 6,168,398,716.49 | 63.97% |
| Philippine National Bank | 9,590,483,171.28 | 36,201,856,906.15 | 26,611,373,734.87 | 26.49% |
| Rizal Commercial Banking Corporation | 2,540,684,281.44 | 39,700,472,551.33 | 37,159,788,269.89 | 6.40% |
| Bank of Commerce | 1,209,619,281.46 | 19,441,545,398.92 | 18,231,926,117.46 | 6.22% |
| Land Bank of the Philippines | 3,678,530,026.28 | 71,614,261,581.45 | 67,935,731,555.17 | 5.14% |
| Banco De Oro Unibank Inc. | 289,570,071.19 | 95,676,345,970.69 | 95,386,775,899.50 | 0.30% |
| Al Amanah Islamic Bank of the Philippines | 0.00 | 490,480,453.71 | 490,480,453.71 | 0.00% |
| Allied Banking Corporation | 0.00 | 17,967,352,274.08 | 17,967,352,274.08 | 0.00% |
| BDO Private Bank, Inc. | 0.00 | 5,016,379,598.09 | 5,016,379,598.09 | 0.00% |
| Bank of the Philippine Islands | 0.00 | 84,874,177,942.64 | 84,874,177,942.64 | 0.00% |
| China Banking Corporation | 0.00 | 35,918,017,352.58 | 35,918,017,352.58 | 0.00% |
| Development Bank of the Philippines | 0.00 | 41,730,949,783.88 | 41,730,949,783.88 | 0.00% |
| HongKong & Shanghai Banking Corporation | 0.00 | 5,832,718,641.11 | 5,832,718,641.11 | 0.00% |
| Internationale Nederlanden Groep Bank | 0.00 | 5,416,669,935.75 | 5,416,669,935.75 | 0.00% |
| Metropolitan Bank & Trust Company | 0.00 | 104,631,925,155.96 | 104,631,925,155.96 | 0.00% |
| Security Bank Corporation | 0.00 | 30,393,353,641.87 | 30,393,353,641.87 | 0.00% |
| Standard Chartered Bank | 0.00 | 1,856,348,170.44 | 1,856,348,170.44 | 0.00% |
| Union Bank of the Philippines | 0.00 | 39,452,815,431.78 | 39,452,815,431.78 | 0.00% |
| Asia United Bank | 0.00 | 9,095,224,451.73 | 9,095,224,451.73 | 0.00% |
| Chinatrust (Philippines) Commercial Banking Corporation | 0.00 | 5,987,360,440.47 | 5,987,360,440.47 | 0.00% |
| East West Banking Corporation | 0.00 | 10,917,559,972.25 | 10,917,559,972.25 | 0.00% |
| Maybank Philippines Inc. | 0.00 | 5,157,316,608.84 | 5,157,316,608.84 | 0.00% |
| Philippine Trust Company | 0.00 | 15,005,575,111.71 | 15,005,575,111.71 | 0.00% |
| Philippine Veterans Bank | 0.00 | 5,507,366,299.05 | 5,507,366,299.05 | 0.00% |
| Robinsons Bank Corporation | 0.00 | 5,327,219,673.85 | 5,327,219,673.85 | 0.00% |
| ANZ Banking Group Ltd | 0.00 | 2,305,439,007.97 | 2,305,439,007.97 | 0.00% |
| Bangkok Bank Public Co. Ltd. | 0.00 | 311,778,104.96 | 311,778,104.96 | 0.00% |
| Bank of America N.A. | 0.00 | 596,946,705.20 | 596,946,705.20 | 0.00% |
| Bank of China Limited - Manila Branch | 0.00 | 590,421,824.93 | 590,421,824.93 | 0.00% |
| Citibank N.A. | 0.00 | 7,996,168,491.50 | 7,996,168,491.50 | 0.00% |
| Deutsche Bank AG | 0.00 | 2,469,949,664.27 | 2,469,949,664.27 | 0.00% |
| JP Morgan Chase Bank National Association | 0.00 | 1,571,581,685.25 | 1,571,581,685.25 | 0.00% |
| Korea Exchange Bank | 0.00 | 689,757,756.03 | 689,757,756.03 | 0.00% |
| Mega International Commercial Bank Co. Ltd | 0.00 | 462,656,366.02 | 462,656,366.02 | 0.00% |
| Mizuho Corporate Bank Ltd - Manila Branch | 0.00 | 1,391,811,359.74 | 1,391,811,359.74 | 0.00% |
| The Bank of Tokyo - Mitsubishi UFJ Ltd | 0.00 | 862,316,642.64 | 862,316,642.64 | 0.00% |
| Grand Total | 33,240,854,392.51 | 736,368,125,362.46 | 703,127,270,969.95 | 4.51% |
Source: www.bsp.gov.ph
No comments:
Post a Comment