Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency, because a significant drop in the value of the Distressed Assets will eat into a significant amount of the bank's capital. A bank that has a Distressed Ratio greater than 100% is flagged as borderline insolvent (highlighted in yellow). For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks
This is a list of the top distressed Universal and Commercial (U/KB) as well as Thrift Banks in the Philippines as of June 30, 2012. It updates the previous blog post: "The Top Distressed Philippine Banks as of March 31, 2012".
To see where your bank stands relative to these banks, please check the following previous blog posts: "Philippine U/KBs Show Some Deterioration in the 2nd Qtr. of 2012" and "Philippine Thrift Banks Continue to Improve in the 2nd Quarter of 2012".
Top Distressed Philippine Banks | ||||
By Total Distressed Assets/ Total Capital Cushion | ||||
June 30, 2012 | ||||
In PhP | ||||
June 30, 2012 | ||||
Bank | Type of Bank | Total Distressed Assets (In PhP) | Total Capital Cushion (In PhP) | Distressed Assets/ Total Capital Cushion (In %) |
United Coconut Planters Bank | U/KB | 58,788,229,194.25 | 9,044,452,080.29 | 649.99% |
Village SLA, Inc. | Thrift | 461,071,117.97 | 85,601,162.41 | 538.63% |
Comsavings Bank | Thrift | 2,208,670,807.21 | 452,199,610.73 | 488.43% |
Legazpi Savings Bank Inc. | Thrift | 780,780,602.74 | 190,550,893.59 | 409.75% |
Iloilo City Development Bank | Thrift | 260,017,320.80 | 66,055,710.31 | 393.63% |
Planters Development Bank | Thrift | 11,165,041,937.84 | 4,493,071,814.41 | 248.49% |
Bataan Development Bank | Thrift | 183,018,354.25 | 79,075,920.15 | 231.45% |
Standard Chartered Bank | U/KB | 5,949,712,292.86 | 2,823,851,791.39 | 210.69% |
RCBC Savings Bank | Thrift | 13,878,811,926.12 | 7,131,983,741.37 | 194.60% |
Farmers Savings & Loan Bank | Thrift | 208,209,608.72 | 118,338,500.90 | 175.94% |
Business & Consumers Bank | Thrift | 134,035,191.32 | 78,955,187.35 | 169.76% |
Philippine Bank of Communications | U/KB | 8,982,915,157.84 | 5,375,920,381.27 | 167.10% |
Bank of Commerce | U/KB | 32,829,846,240.56 | 19,883,188,091.20 | 165.11% |
Opportunity Kauswagan Bank, Inc. | Thrift | 198,389,464.35 | 124,518,919.38 | 159.32% |
University Savings Bank | Thrift | 345,277,947.66 | 228,592,781.95 | 151.04% |
Philippine National Bank | U/KB | 59,734,643,323.51 | 41,035,624,017.49 | 145.57% |
China Bank Savings | Thrift | 1,446,154,272.29 | 1,019,400,071.90 | 141.86% |
Hiyas Savings & Loan Bank | Thrift | 240,065,531.78 | 171,902,352.90 | 139.65% |
Equicom SB | Thrift | 709,243,685.28 | 525,023,077.34 | 135.09% |
Malayan Bank Savings & Mortgage Bank | Thrift | 1,433,822,787.59 | 1,116,345,777.45 | 128.44% |
Luzon Development Bank | Thrift | 597,160,536.04 | 467,297,773.57 | 127.79% |
Philippine Resources Savings Banking Corporation | Thrift | 1,547,535,074.86 | 1,262,243,674.14 | 122.60% |
Philippine Veterans Bank | U/KB | 7,345,774,272.58 | 6,299,438,025.35 | 116.61% |
Silangan Savings and Loan Bank, Inc. | Thrift | 57,469,598.94 | 51,238,430.92 | 112.16% |
Philippine Postal Savings Bank | Thrift | 835,793,301.74 | 823,962,840.17 | 101.44% |
Grand Total | 210,321,689,549.10 | 102,948,832,627.93 | 204.30% |
Source: www.bsp.gov.ph
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' statement of condition as of June 30, 2012 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.
Hi David, how did you compute for Total Distressed Assets? NPL, ROPA, Past due DOSRI, Classified loans, unbooked losses?
ReplyDeleteI use Classified Loans and ROPA plus Deferred Charges
ReplyDeleteGotcha! Thanks!
Delete