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Monday, November 4, 2013

Planters Development Bank has the 4th highest Net NPLs as a Percentage of Stockholders Equity as of March 31, 2013

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 March 31, 2013.  See a previous blog post: "Philippine Thrift Banks Improve in the 1st Quarter of 2013".

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: "Banks reduce exposure to bad debts, have more cash to loan out—BSP".

In the Philippine Thrift Banking Industry, Gross Non-Performing Loans stood at Php 23.687 billion as of March 31, 2013 - approximately 5.49% of the Philippine Thrift Banking Industry's Total Loan Portfolio of Php 431.577 billion.


Philippine Thrift Banking System
Gross NPL as % of TLP
March 31, 2013









Gross NPL TLP Gross NPL/TLP
Bank (In Php) (In Php) (In %)
Comsavings Bank 206,207,435.20 344,291,827.31 59.89%
Silangan Savings and Loan Bank, Inc. 19,671,049.99 36,484,719.98 53.92%
Sampaguita SLA 22,445,192.56 55,515,181.64 40.43%
United Overseas Bank Philippines 669,199,636.35 1,734,542,455.74 38.58%
Malasiqui Progressive SLB, Inc. 16,401,428.95 50,620,701.86 32.40%
Citibank Savings Inc. 2,582,409,401.88 8,508,101,011.06 30.35%
Bataan Development Bank 48,944,063.79 165,236,645.59 29.62%
Opportunity Kauswagan Bank, Inc. 76,591,260.61 277,859,510.89 27.56%
Pacific Ace Savings Bank 7,078,580.74 29,339,883.10 24.13%
Lemery Savings & Loan Bank, Inc. 15,073,450.87 65,009,029.02 23.19%
Pridestar Development Bank 8,464,216.23 37,322,257.03 22.68%
Progress SLA 1,301,818.45 6,724,287.54 19.36%
Pampanga Development Bank 35,205,062.27 198,159,507.34 17.77%
Century Savings Bank 80,379,583.03 478,049,332.49 16.81%
Quezon Coconut Producers SLB Inc. 6,052,627.60 36,041,771.17 16.79%
Security Bank Savings Corporation 617,312,582.61 3,750,356,759.27 16.46%
Philippine Postal Savings Bank 484,550,891.29 2,980,095,576.65 16.26%
Hiyas Savings & Loan Bank 36,676,387.24 231,626,004.78 15.83%
Allied Savings Bank 381,815,184.79 2,564,876,786.11 14.89%
Dungganon Bank 13,531,254.95 98,166,682.99 13.78%
Tong Yang Savings Bank Inc. 109,820,855.14 860,340,646.70 12.76%
Business & Consumers Bank 16,909,638.23 139,944,920.01 12.08%
Maritime SLA 16,914,321.10 143,504,761.73 11.79%
University Savings Bank 55,372,853.41 475,119,576.87 11.65%
Iloilo City Development Bank 34,871,302.17 310,974,958.14 11.21%
Luzon Development Bank 185,391,103.62 1,691,236,241.54 10.96%
Cordillera Savings Bank 17,567,254.20 167,912,262.43 10.46%
Farmers Savings & Loan Bank 24,608,039.65 245,277,396.79 10.03%
Planters Development Bank 3,072,249,879.11 32,400,691,864.14 9.48%
The Palawan Bank 15,467,103.88 173,202,573.70 8.93%
Life Savings Bank 5,199,792.75 60,521,028.42 8.59%
Malayan Bank Savings & Mortgage Bank 325,643,706.53 3,889,588,482.47 8.37%
Microfinance Maximum SB (Maxbank) 1,899,696.25 22,889,848.38 8.30%
Sterling Bank of Asia Inc. 1,067,092,272.87 13,553,415,029.11 7.87%
Penbank, Inc. 81,182,208.22 1,045,050,592.40 7.77%
World Partners Bank (A Thrift Bank) 56,209,010.88 748,502,808.48 7.51%
Metro Cebu Public Savings Bank 6,624,623.46 93,059,558.16 7.12%
Wealth Bank - A Development Bank 155,007,342.60 2,184,132,101.71 7.10%
Enterprise Bank Inc. 101,407,539.68 1,491,585,311.90 6.80%
Village Bank, Inc. 25,659,354.68 386,417,014.05 6.64%
Bataan SLA 2,474,043.37 37,404,404.66 6.61%
Philippine Resources Savings Banking Corporation 445,973,321.49 6,855,536,325.20 6.51%
Dumaguete City Development Bank 27,282,762.41 443,997,466.66 6.14%
First Consolidated Bank 369,169,020.56 6,503,750,281.79 5.68%
Producers Savings Bank 205,208,650.59 3,932,021,218.38 5.22%
RCBC Savings Bank 1,903,321,080.36 37,343,039,964.90 5.10%
Philippine Savings Bank 4,226,876,186.15 88,478,988,651.95 4.78%
Bank One Savings and Trust Corp. 20,832,453.89 501,717,966.71 4.15%
Equicom SB 115,263,744.92 3,231,375,928.72 3.57%
Sun Savings Bank 5,123,997.18 148,075,602.45 3.46%
The Queen City Development Bank 37,266,323.29 1,099,406,894.46 3.39%
BPI Family Savings Bank 4,125,879,733.63 128,464,008,561.69 3.21%
BPI Globe Banko Inc. Savings Bank 69,907,056.66 2,299,022,553.61 3.04%
UCPB Savings Bank 219,587,052.61 7,454,456,482.10 2.95%
Card SME Bank Inc. (A Thrift Bank) 14,679,663.30 515,986,769.16 2.84%
Philippine Business Bank 581,652,363.51 21,743,850,913.01 2.68%
Tower Development Bank 4,160,915.95 158,349,113.03 2.63%
BPI Direct Savings Bank 174,526,663.29 6,704,913,106.84 2.60%
Northpoint Development Bank 3,157,575.23 122,991,413.22 2.57%
Optimum Development Bank 18,274,821.84 734,603,915.95 2.49%
China Bank Savings 107,827,016.51 4,836,228,487.70 2.23%
CityState Savings Bank 30,021,381.87 1,690,270,481.70 1.78%
City Savings Bank 170,052,316.64 14,756,549,251.84 1.15%
HSBC Savings Bank (Phils) Inc. 102,383,683.94 10,320,765,329.41 0.99%
Merchants Savings & Loan Association Inc. 2,210,767.48 360,385,266.76 0.61%
BDO Elite Savings Bank 0.00 955,000,000.00 0.00%
Isla Bank (A Thrift Bank) Inc. 0.00 152,081,606.97 0.00%
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 23,687,521,604.50 431,576,564,867.56 5.49%

Source: www.bsp.gov.ph


There are six Thrift Banks with an Gross NPL Ratio greater than 30% of Total Loan Portfolio  (TLP).  These are as follows:
  1. Comsavings Bank (59.89% of TLP)
  2. Silangan Savings and Loan Bank, Inc. (53.92% of TLP)
  3. Sampaguita SLA (40.43% of TLP)
  4. United Overseas Bank Philippines (38.58% of TLP)
  5. Malasiqui Progressive SLB, Inc. (32.40% of TLP)
  6. Citibank Savings Inc. (30.35% of TLP)

Of these banks, two banks are considered distressed:
  1. Comsavings Bank (formerly GSIS Family Bank)
  2. Silangan Savings and Loan Bank, Inc.


Net NPLs, which are derived from Gross NPLs minus provisions for credit losses held are much lower.  Net NPLs amounted to only Php 9.498 billion as of March 31, 2013 or approximately 2.20% of TLP.




Philippine Thrift Banking System
Net NPL as % of TLP
March 31, 2013









Net NPL TLP Net NPL/TLP
Bank (In Php) (In Php) (In %)
Comsavings Bank 145,306,865.78 344,291,827.31 42.20%
Silangan Savings and Loan Bank, Inc. 11,602,949.48 36,484,719.98 31.80%
Bataan Development Bank 34,654,351.48 165,236,645.59 20.97%
Malasiqui Progressive SLB, Inc. 9,134,395.89 50,620,701.86 18.04%
Quezon Coconut Producers SLB Inc. 6,052,627.60 36,041,771.17 16.79%
Lemery Savings & Loan Bank, Inc. 10,748,572.35 65,009,029.02 16.53%
Progress SLA 1,086,663.56 6,724,287.54 16.16%
Opportunity Kauswagan Bank, Inc. 43,624,934.38 277,859,510.89 15.70%
Century Savings Bank 73,929,845.56 478,049,332.49 15.46%
Allied Savings Bank 331,375,975.15 2,564,876,786.11 12.92%
Farmers Savings & Loan Bank 30,924,153.28 245,277,396.79 12.61%
Pampanga Development Bank 22,088,091.67 198,159,507.34 11.15%
Hiyas Savings & Loan Bank 25,765,559.01 231,626,004.78 11.12%
Iloilo City Development Bank 31,322,163.87 310,974,958.14 10.07%
Philippine Postal Savings Bank 293,357,943.42 2,980,095,576.65 9.84%
Maritime SLA 13,418,290.29 143,504,761.73 9.35%
Dungganon Bank 8,594,872.63 98,166,682.99 8.76%
Business & Consumers Bank 11,210,003.12 139,944,920.01 8.01%
Luzon Development Bank 132,623,670.53 1,691,236,241.54 7.84%
Pridestar Development Bank 2,837,829.57 37,322,257.03 7.60%
Planters Development Bank 2,435,903,001.70 32,400,691,864.14 7.52%
Sterling Bank of Asia Inc. 910,612,118.83 13,553,415,029.11 6.72%
Metro Cebu Public Savings Bank 5,898,388.27 93,059,558.16 6.34%
Pacific Ace Savings Bank 1,832,586.28 29,339,883.10 6.25%
Penbank, Inc. 65,251,428.90 1,045,050,592.40 6.24%
Wealth Bank - A Development Bank 123,076,301.82 2,184,132,101.71 5.64%
Enterprise Bank Inc. 80,610,501.25 1,491,585,311.90 5.40%
Life Savings Bank 3,233,539.42 60,521,028.42 5.34%
University Savings Bank 25,253,787.21 475,119,576.87 5.32%
The Palawan Bank 8,920,407.98 173,202,573.70 5.15%
World Partners Bank (A Thrift Bank) 36,257,044.03 748,502,808.48 4.84%
Malayan Bank Savings & Mortgage Bank 181,314,030.64 3,889,588,482.47 4.66%
Tong Yang Savings Bank Inc. 39,055,553.21 860,340,646.70 4.54%
Philippine Resources Savings Banking Corporation 298,542,149.20 6,855,536,325.20 4.35%
Producers Savings Bank 169,586,359.88 3,932,021,218.38 4.31%
Bank One Savings and Trust Corp. 20,832,453.89 501,717,966.71 4.15%
Bataan SLA 1,466,619.63 37,404,404.66 3.92%
Microfinance Maximum SB (Maxbank) 796,852.02 22,889,848.38 3.48%
Security Bank Savings Corporation 122,747,234.54 3,750,356,759.27 3.27%
Dumaguete City Development Bank 13,647,281.76 443,997,466.66 3.07%
Village Bank, Inc. 11,724,043.66 386,417,014.05 3.03%
RCBC Savings Bank 982,867,284.19 37,343,039,964.90 2.63%
Equicom SB 84,611,432.98 3,231,375,928.72 2.62%
Optimum Development Bank 16,761,721.77 734,603,915.95 2.28%
Sampaguita SLA 999,587.22 55,515,181.64 1.80%
Tower Development Bank 2,637,618.02 158,349,113.03 1.67%
China Bank Savings 74,755,509.70 4,836,228,487.70 1.55%
BPI Family Savings Bank 1,645,050,556.64 128,464,008,561.69 1.28%
Philippine Business Bank 211,860,173.46 21,743,850,913.01 0.97%
City Savings Bank 128,590,455.41 14,756,549,251.84 0.87%
Citibank Savings Inc. 69,438,575.11 8,508,101,011.06 0.82%
BPI Direct Savings Bank 49,111,186.12 6,704,913,106.84 0.73%
HSBC Savings Bank (Phils) Inc. 65,434,829.13 10,320,765,329.41 0.63%
CityState Savings Bank 10,664,925.38 1,690,270,481.70 0.63%
First Consolidated Bank 40,129,139.37 6,503,750,281.79 0.62%
Philippine Savings Bank 318,432,668.44 88,478,988,651.95 0.36%
BDO Elite Savings Bank 0.00 955,000,000.00 0.00%
BPI Globe Banko Inc. Savings Bank 0.00 2,299,022,553.61 0.00%
Card SME Bank Inc. (A Thrift Bank) 0.00 515,986,769.16 0.00%
Cordillera Savings Bank 0.00 167,912,262.43 0.00%
Isla Bank (A Thrift Bank) Inc. 0.00 152,081,606.97 0.00%
Merchants Savings & Loan Association Inc. 0.00 360,385,266.76 0.00%
Northpoint Development Bank 0.00 122,991,413.22 0.00%
Sun Savings Bank 0.00 148,075,602.45 0.00%
The Queen City Development Bank 0.00 1,099,406,894.46 0.00%
UCPB Savings Bank 0.00 7,454,456,482.10 0.00%
United Overseas Bank Philippines 0.00 1,734,542,455.74 0.00%
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 9,497,567,105.68 431,576,564,867.56 2.20%


Source: www.bsp.gov.ph


Despite the netting of provisions for credit losses, there are still two Thrift Banks with a Net NPL Ratio greater than 30% of Total Loan Portfolio  (TLP).  These are as follows:
  1. Comsavings Bank (42.20% of TLP)
  2. Silangan Savings and Loan Bank, Inc. (31.80% of TLP)

Both Philippine banks and the BSP like to cite Net NPLs in their financial reporting.  However, the use of Net NPLs can be misleading because provisions are actually shareholder's money that has been put to unproductive use to improve the solvency ratios of financial institutions.  Generally, bankers, if they are good, tend to target recoveries above the Net NPL figure so that the excess recoveries can flow back to earnings.  Therefore, for better decision making and financial sector reporting, gross NPLs are the way to go.

The ratio of a bank's NPLs to its total Stockholders Equity (SE) maybe more important than the ratio of its NPLs to Total Loan Portfolio.  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.

On an overall basis, the Gross NPLs of Philippine Thrift Banks amounted to 26.69% of Stockholders Equity as of March 31, 2013.


Philippine Thrift Banking System
Gross NPL as % of SE
March 31, 2013









Gross NPL SE Gross NPL/SE
Bank (In PHP) (In PHP) (In %)
Silangan Savings and Loan Bank, Inc. 19,671,049.99 10,391,308.19 189.30%
Citibank Savings Inc. 2,582,409,401.88 1,472,870,648.62 175.33%
Village Bank, Inc. 25,659,354.68 16,134,714.28 159.03%
Opportunity Kauswagan Bank, Inc. 76,591,260.61 61,323,344.55 124.90%
United Overseas Bank Philippines 669,199,636.35 702,252,001.37 95.29%
The Palawan Bank 15,467,103.88 16,444,109.52 94.06%
Planters Development Bank 3,072,249,879.11 3,894,550,868.90 78.89%
Bataan Development Bank 48,944,063.79 63,580,789.69 76.98%
Philippine Postal Savings Bank 484,550,891.29 759,927,280.94 63.76%
Security Bank Savings Corporation 617,312,582.61 1,123,967,139.31 54.92%
Comsavings Bank 206,207,435.20 382,581,265.01 53.90%
Enterprise Bank Inc. 101,407,539.68 195,255,759.76 51.94%
Iloilo City Development Bank 34,871,302.17 70,911,147.62 49.18%
Sterling Bank of Asia Inc. 1,067,092,272.87 2,308,153,826.27 46.23%
Luzon Development Bank 185,391,103.62 434,085,634.37 42.71%
Sampaguita SLA 22,445,192.56 53,013,204.79 42.34%
Wealth Bank - A Development Bank 155,007,342.60 393,951,279.14 39.35%
Allied Savings Bank 381,815,184.79 997,482,772.75 38.28%
World Partners Bank (A Thrift Bank) 56,209,010.88 156,960,687.78 35.81%
Philippine Resources Savings Banking Corporation 445,973,321.49 1,370,795,921.72 32.53%
Pampanga Development Bank 35,205,062.27 112,503,628.25 31.29%
Malasiqui Progressive SLB, Inc. 16,401,428.95 52,663,015.28 31.14%
Malayan Bank Savings & Mortgage Bank 325,643,706.53 1,056,259,592.22 30.83%
Penbank, Inc. 81,182,208.22 271,010,894.61 29.96%
Tong Yang Savings Bank Inc. 109,820,855.14 392,789,225.10 27.96%
University Savings Bank 55,372,853.41 206,998,198.47 26.75%
Maritime SLA 16,914,321.10 65,560,548.63 25.80%
Equicom SB 115,263,744.92 459,838,990.18 25.07%
RCBC Savings Bank 1,903,321,080.36 7,815,557,867.68 24.35%
Farmers Savings & Loan Bank 24,608,039.65 101,626,945.31 24.21%
Philippine Savings Bank 4,226,876,186.15 17,631,397,452.60 23.97%
BPI Family Savings Bank 4,125,879,733.63 17,306,461,368.33 23.84%
Hiyas Savings & Loan Bank 36,676,387.24 157,773,949.33 23.25%
Lemery Savings & Loan Bank, Inc. 15,073,450.87 66,176,078.88 22.78%
BPI Direct Savings Bank 174,526,663.29 803,918,092.43 21.71%
Business & Consumers Bank 16,909,638.23 77,927,239.65 21.70%
Dungganon Bank 13,531,254.95 64,479,298.55 20.99%
First Consolidated Bank 369,169,020.56 1,939,239,317.62 19.04%
Producers Savings Bank 205,208,650.59 1,087,630,484.52 18.87%
Cordillera Savings Bank 17,567,254.20 97,373,694.03 18.04%
BPI Globe Banko Inc. Savings Bank 69,907,056.66 499,613,168.62 13.99%
Pridestar Development Bank 8,464,216.23 69,963,653.77 12.10%
Dumaguete City Development Bank 27,282,762.41 233,849,354.48 11.67%
Quezon Coconut Producers SLB Inc. 6,052,627.60 58,040,408.94 10.43%
Pacific Ace Savings Bank 7,078,580.74 74,386,714.64 9.52%
Metro Cebu Public Savings Bank 6,624,623.46 70,198,454.65 9.44%
UCPB Savings Bank 219,587,052.61 2,412,138,206.81 9.10%
Century Savings Bank 80,379,583.03 901,370,505.91 8.92%
China Bank Savings 107,827,016.51 1,336,209,020.05 8.07%
Life Savings Bank 5,199,792.75 64,608,956.87 8.05%
Philippine Business Bank 581,652,363.51 7,978,879,476.66 7.29%
Card SME Bank Inc. (A Thrift Bank) 14,679,663.30 207,351,272.15 7.08%
City Savings Bank 170,052,316.64 2,472,118,775.49 6.88%
The Queen City Development Bank 37,266,323.29 667,259,864.54 5.58%
Sun Savings Bank 5,123,997.18 115,048,743.38 4.45%
Northpoint Development Bank 3,157,575.23 72,537,441.93 4.35%
Bank One Savings and Trust Corp. 20,832,453.89 530,389,484.18 3.93%
CityState Savings Bank 30,021,381.87 795,043,341.21 3.78%
HSBC Savings Bank (Phils) Inc. 102,383,683.94 2,748,084,259.69 3.73%
Tower Development Bank 4,160,915.95 114,617,272.75 3.63%
Bataan SLA 2,474,043.37 75,118,952.34 3.29%
Microfinance Maximum SB (Maxbank) 1,899,696.25 66,733,990.88 2.85%
Optimum Development Bank 18,274,821.84 728,125,103.12 2.51%
Progress SLA 1,301,818.45 83,299,483.73 1.56%
Merchants Savings & Loan Association Inc. 2,210,767.48 535,527,047.95 0.41%
BDO Elite Savings Bank 0.00 1,587,605,708.24 0.00%
Isla Bank (A Thrift Bank) Inc. 0.00 0.00 NA
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 23,687,521,604.50 88,749,938,249.23 26.69%


Source: www.bsp.gov.ph


Of the seventy thrift banks in this list, twenty-three have a Gross NPL to Stockholders Equity Ratio of 30% or more.  These banks are as follows:
  1. Silangan Savings and Loan Bank, Inc. (189.30% of SE)
  2. Citibank Savings Inc. (175.33% of SE)
  3. Village Bank, Inc. (159.03% of SE)
  4. Opportunity Kauswagan Bank, Inc. (124.90% of SE)
  5. United Overseas Bank Philippines (95.29% of SE)
  6. The Palawan Bank (94.06% of SE)
  7. Planters Development Bank (78.89% of SE)
  8. Bataan Development Bank (76.98% of SE)
  9. Philippine Postal Savings Bank (63.76% of SE)
  10. Security Bank Savings Corporation (54.92% of SE)
  11. Comsavings Bank (53.90% of SE)
  12. Enterprise Bank Inc. (51.94% of SE)
  13. Iloilo City Development Bank (49.18% of SE)
  14. Sterling Bank of Asia, Inc. (46.23% of SE)
  15. Luzon Development Bank (42.71% of SE)
  16. Sampaguita SLA (42.34% of SE)
  17. Wealth Bank (39.35% of SE)
  18. Allied Savings Bank (38.28% of SE)
  19. World Partners Bank (35.81% of SE)
  20. Philippine Resources Savings Banking Corporation (32.53% of SE)
  21. Pampanga Development Bank (31.29% of SE)
  22. Malasiqui Progressive SLB, Inc. (31.14% of SE)
  23. Malayan Bank Savings and Mortgage Bank (30.83% of SE)

Net NPLs amounted to 10.63% of Stockholders Equity as of March 31, 2013:


Philippine Thrift Banking System
Net NPL as % of SE
March 31, 2013









Net NPL SE Net NPL/SE
Bank (In PHP) (In PHP) (In %)
Silangan Savings and Loan Bank, Inc. 11,602,949.48 10,391,308.19 111.66%
Village Bank, Inc. 11,724,043.66 16,134,714.28 72.66%
Opportunity Kauswagan Bank, Inc. 43,624,934.38 61,323,344.55 71.14%
Planters Development Bank 2,435,903,001.70 3,894,550,868.90 62.55%
Bataan Development Bank 34,654,351.48 63,580,789.69 54.50%
The Palawan Bank 8,920,407.98 16,444,109.52 54.25%
Iloilo City Development Bank 31,322,163.87 70,911,147.62 44.17%
Enterprise Bank Inc. 80,610,501.25 195,255,759.76 41.28%
Sterling Bank of Asia Inc. 910,612,118.83 2,308,153,826.27 39.45%
Philippine Postal Savings Bank 293,357,943.42 759,927,280.94 38.60%
Comsavings Bank 145,306,865.78 382,581,265.01 37.98%
Allied Savings Bank 331,375,975.15 997,482,772.75 33.22%
Wealth Bank - A Development Bank 123,076,301.82 393,951,279.14 31.24%
Luzon Development Bank 132,623,670.53 434,085,634.37 30.55%
Farmers Savings & Loan Bank 30,924,153.28 101,626,945.31 30.43%
Penbank, Inc. 65,251,428.90 271,010,894.61 24.08%
World Partners Bank (A Thrift Bank) 36,257,044.03 156,960,687.78 23.10%
Philippine Resources Savings Banking Corporation 298,542,149.20 1,370,795,921.72 21.78%
Maritime SLA 13,418,290.29 65,560,548.63 20.47%
Pampanga Development Bank 22,088,091.67 112,503,628.25 19.63%
Equicom SB 84,611,432.98 459,838,990.18 18.40%
Malasiqui Progressive SLB, Inc. 9,134,395.89 52,663,015.28 17.34%
Malayan Bank Savings & Mortgage Bank 181,314,030.64 1,056,259,592.22 17.17%
Hiyas Savings & Loan Bank 25,765,559.01 157,773,949.33 16.33%
Lemery Savings & Loan Bank, Inc. 10,748,572.35 66,176,078.88 16.24%
Producers Savings Bank 169,586,359.88 1,087,630,484.52 15.59%
Business & Consumers Bank 11,210,003.12 77,927,239.65 14.39%
Dungganon Bank 8,594,872.63 64,479,298.55 13.33%
RCBC Savings Bank 982,867,284.19 7,815,557,867.68 12.58%
University Savings Bank 25,253,787.21 206,998,198.47 12.20%
Security Bank Savings Corporation 122,747,234.54 1,123,967,139.31 10.92%
Quezon Coconut Producers SLB Inc. 6,052,627.60 58,040,408.94 10.43%
Tong Yang Savings Bank Inc. 39,055,553.21 392,789,225.10 9.94%
BPI Family Savings Bank 1,645,050,556.64 17,306,461,368.33 9.51%
Metro Cebu Public Savings Bank 5,898,388.27 70,198,454.65 8.40%
Century Savings Bank 73,929,845.56 901,370,505.91 8.20%
BPI Direct Savings Bank 49,111,186.12 803,918,092.43 6.11%
Dumaguete City Development Bank 13,647,281.76 233,849,354.48 5.84%
China Bank Savings 74,755,509.70 1,336,209,020.05 5.59%
City Savings Bank 128,590,455.41 2,472,118,775.49 5.20%
Life Savings Bank 3,233,539.42 64,608,956.87 5.00%
Citibank Savings Inc. 69,438,575.11 1,472,870,648.62 4.71%
Pridestar Development Bank 2,837,829.57 69,963,653.77 4.06%
Bank One Savings and Trust Corp. 20,832,453.89 530,389,484.18 3.93%
Philippine Business Bank 211,860,173.46 7,978,879,476.66 2.66%
Pacific Ace Savings Bank 1,832,586.28 74,386,714.64 2.46%
HSBC Savings Bank (Phils) Inc. 65,434,829.13 2,748,084,259.69 2.38%
Optimum Development Bank 16,761,721.77 728,125,103.12 2.30%
Tower Development Bank 2,637,618.02 114,617,272.75 2.30%
First Consolidated Bank 40,129,139.37 1,939,239,317.62 2.07%
Bataan SLA 1,466,619.63 75,118,952.34 1.95%
Sampaguita SLA 999,587.22 53,013,204.79 1.89%
Philippine Savings Bank 318,432,668.44 17,631,397,452.60 1.81%
CityState Savings Bank 10,664,925.38 795,043,341.21 1.34%
Progress SLA 1,086,663.56 83,299,483.73 1.30%
Microfinance Maximum SB (Maxbank) 796,852.02 66,733,990.88 1.19%
BDO Elite Savings Bank 0.00 1,587,605,708.24 0.00%
BPI Globe Banko Inc. Savings Bank 0.00 499,613,168.62 0.00%
Card SME Bank Inc. (A Thrift Bank) 0.00 207,351,272.15 0.00%
Cordillera Savings Bank 0.00 97,373,694.03 0.00%
Isla Bank (A Thrift Bank) Inc. 0.00 637,164,919.99 0.00%
Merchants Savings & Loan Association Inc. 0.00 535,527,047.95 0.00%
Northpoint Development Bank 0.00 72,537,441.93 0.00%
Sun Savings Bank 0.00 115,048,743.38 0.00%
The Queen City Development Bank 0.00 667,259,864.54 0.00%
UCPB Savings Bank 0.00 2,412,138,206.81 0.00%
United Overseas Bank Philippines 0.00 702,252,001.37 0.00%
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 9,497,567,105.68 89,387,103,169.22 10.63%




Source: www.bsp.gov.ph


In terms of Net NPLs, fifteen banks still had Net NPLs greater than 30% of SE as of March 31, 2013.
  1. Silangan Savings and Loan Bank, Inc. (111.66% of SE)
  2. Village Bank, Inc. (72.66% of SE)
  3. Opportunity Kauswagan Bank, Inc. (71.14% of SE)
  4. Planters Development Bank (62.55% of SE)
  5. Bataan Development Bank (54.50% of SE)
  6. The Palawan Bank (54.25% of SE)
  7. Iloilo City Development Bank (44.17% of SE)
  8. Enterprise Bank Inc. (41.28% of SE)
  9. Sterling Bank of Asia, Inc. (39.45% of SE)
  10. Philippine Postal Savings Bank (38.60% of SE)
  11. Comsavings Bank (37.98% of SE)
  12. Allied Savings Bank (33.22% of SE)
  13. Wealth Bank (31.24% of SE)
  14. Luzon Development Bank (30.55% of SE)
  15. Farmers Savings & Loan Bank (30.43% 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 ratios may be bumping up or exceeding the limits of compliance with DOSRI regulations.

On an overall basis, the DOSRI Loans of Philippine Thrift Banks amounted to only 1.31% of their Total Loan Portfolio as of March 31, 2013.  Of the seventy banks listed as Thrift Banks, twenty-one banks reported having no DOSRI Loans.  Of the forty-six thrift banks with DOSRI Loans, seventeen 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. The Queen City Development Bank (26.57% of TLP)
  2. CityState Savings Bank (21.94% of TLP)
  3. Penbank, Inc. (21.31% of TLP)
  4. Life Savings Bank (16.31% of TLP)
  5. World Partners Bank (15.22% of TLP)



Philippine Thrift Banking System
DOSRI as % of TLP
March 31, 2013









DOSRI TLP DOSRI/TLP
Bank (In Php) (In PHP) (In %)
The Queen City Development Bank 292,086,484.52 1,099,406,894.46 26.57%
CityState Savings Bank 370,886,711.43 1,690,270,481.70 21.94%
Penbank, Inc. 222,745,980.91 1,045,050,592.40 21.31%
Life Savings Bank 9,873,698.71 60,521,028.42 16.31%
World Partners Bank (A Thrift Bank) 113,910,362.30 748,502,808.48 15.22%
Malasiqui Progressive SLB, Inc. 5,715,000.00 50,620,701.86 11.29%
Village SLA, Inc. 40,896,706.37 386,417,014.05 10.58%
Tower Development Bank 16,517,153.24 158,349,113.03 10.43%
Optimum Development Bank 70,285,944.36 734,603,915.95 9.57%
Silangan Savings and Loan Bank, Inc. 3,311,630.00 36,484,719.98 9.08%
Pampanga Development Bank 16,314,140.50 198,159,507.34 8.23%
Hiyas Savings & Loan Bank 15,657,847.34 231,626,004.78 6.76%
Quezon Coconut Producers SLB Inc. 2,312,499.35 36,041,771.17 6.42%
Bank One Savings and Trust Corp. 29,906,666.66 501,717,966.71 5.96%
Opportunity Kauswagan Bank, Inc. 16,318,883.35 277,859,510.89 5.87%
Sampaguita SLA 3,150,000.00 55,515,181.64 5.67%
Century Savings Bank 27,037,276.81 478,049,332.49 5.66%
Philippine Business Bank 1,203,691,098.39 21,743,850,913.01 5.54%
Luzon Development Bank 88,762,308.87 1,691,236,241.54 5.25%
Philippine Postal Savings Bank 132,931,646.91 2,980,095,576.65 4.46%
Producers Savings Bank 137,666,787.71 3,932,021,218.38 3.50%
Dumaguete City Development Bank 14,369,961.04 443,997,466.66 3.24%
Comsavings Bank 9,702,929.61 344,291,827.31 2.82%
Maritime SLA 3,821,550.00 143,504,761.73 2.66%
Wealth Bank - A Development Bank 53,030,314.84 2,184,132,101.71 2.43%
Philippine Savings Bank 1,910,010,540.57 88,478,988,651.95 2.16%
Planters Development Bank 631,965,370.32 32,400,691,864.14 1.95%
Cordillera Savings Bank 3,175,340.99 167,912,262.43 1.89%
Lemery Savings & Loan Bank, Inc. 860,554.45 65,009,029.02 1.32%
Malayan Bank Savings & Mortgage Bank 38,614,356.46 3,889,588,482.47 0.99%
The Palawan Bank 1,676,804.05 173,202,573.70 0.97%
HSBC Savings Bank (Phils) Inc. 70,371,669.80 10,320,765,329.41 0.68%
University Savings Bank 3,199,448.37 475,119,576.87 0.67%
Security Bank Savings Corporation 15,116,055.87 3,750,356,759.27 0.40%
Tong Yang Savings Bank Inc. 1,912,663.74 860,340,646.70 0.22%
China Bank Savings 9,921,880.24 4,836,228,487.70 0.21%
First Consolidated Bank 10,489,910.34 6,503,750,281.79 0.16%
City Savings Bank 18,555,582.06 14,756,549,251.84 0.13%
Farmers Savings & Loan Bank 258,669.27 245,277,396.79 0.11%
Equicom SB 2,471,765.37 3,231,375,928.72 0.08%
BPI Direct Savings Bank 5,015,771.15 6,704,913,106.84 0.07%
UCPB Savings Bank 2,374,662.49 7,454,456,482.10 0.03%
Isla Bank (A Thrift Bank) Inc. 46,961.76 152,081,606.97 0.03%
BPI Family Savings Bank 39,026,461.22 128,464,008,561.69 0.03%
Sterling Bank of Asia Inc. 2,539,287.48 13,553,415,029.11 0.02%
Iloilo City Development Bank 50,000.00 310,974,958.14 0.02%
Allied Savings Bank 0.00 2,564,876,786.11 0.00%
Bataan Development Bank 0.00 165,236,645.59 0.00%
Bataan SLA 0.00 37,404,404.66 0.00%
BDO Elite Savings Bank 0.00 955,000,000.00 0.00%
BPI Globe Banko Inc. Savings Bank 0.00 2,299,022,553.61 0.00%
Business & Consumers Bank 0.00 139,944,920.01 0.00%
Card SME Bank Inc. (A Thrift Bank) 0.00 515,986,769.16 0.00%
Citibank Savings Inc. 0.00 8,508,101,011.06 0.00%
Dungganon Bank 0.00 98,166,682.99 0.00%
Enterprise Bank Inc. 0.00 1,491,585,311.90 0.00%
Merchants Savings & Loan Association Inc. 0.00 360,385,266.76 0.00%
Metro Cebu Public Savings Bank 0.00 93,059,558.16 0.00%
Microfinance Maximum SB (Maxbank) 0.00 22,889,848.38 0.00%
Northpoint Development Bank 0.00 122,991,413.22 0.00%
Pacific Ace Savings Bank 0.00 29,339,883.10 0.00%
Philippine Resources Savings Banking Corporation 0.00 6,855,536,325.20 0.00%
Pridestar Development Bank 0.00 37,322,257.03 0.00%
Progress SLA 0.00 6,724,287.54 0.00%
RCBC Savings Bank 0.00 37,343,039,964.90 0.00%
Sun Savings Bank 0.00 148,075,602.45 0.00%
United Overseas Bank Philippines 0.00 1,734,542,455.74 0.00%
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 5,668,557,339.22 431,576,564,867.56 1.31%
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.  Generally speaking, the DOSRI Loans of Philippine Thrift Banks amounted to only 6.34% of Stockholders Equity as of March 31, 2013.

Philippine Thrift Banking System
DOSRI as % of Stockholders Equity
March 31, 2013









DOSRI SE DOSRI/SE
Bank (In Php) (In PHP) (In %)
Village Bank, Inc. 40,896,706.37 16,134,714.28 253.47%
Penbank, Inc. 222,745,980.91 271,010,894.61 82.19%
World Partners Bank (A Thrift Bank) 113,910,362.30 156,960,687.78 72.57%
CityState Savings Bank 370,886,711.43 795,043,341.21 46.65%
The Queen City Development Bank 292,086,484.52 667,259,864.54 43.77%
Silangan Savings and Loan Bank, Inc. 3,311,630.00 10,391,308.19 31.87%
Opportunity Kauswagan Bank, Inc. 16,318,883.35 61,323,344.55 26.61%
Luzon Development Bank 88,762,308.87 434,085,634.37 20.45%
Philippine Postal Savings Bank 132,931,646.91 759,927,280.94 17.49%
Planters Development Bank 631,965,370.32 3,894,550,868.90 16.23%
Life Savings Bank 9,873,698.71 64,608,956.87 15.28%
Philippine Business Bank 1,203,691,098.39 7,978,879,476.66 15.09%
Pampanga Development Bank 16,314,140.50 112,503,628.25 14.50%
Tower Development Bank 16,517,153.24 114,617,272.75 14.41%
Wealth Bank - A Development Bank 53,030,314.84 393,951,279.14 13.46%
Producers Savings Bank 137,666,787.71 1,087,630,484.52 12.66%
Malasiqui Progressive SLB, Inc. 5,715,000.00 52,663,015.28 10.85%
Philippine Savings Bank 1,910,010,540.57 17,631,397,452.60 10.83%
The Palawan Bank 1,676,804.05 16,444,109.52 10.20%
Hiyas Savings & Loan Bank 15,657,847.34 157,773,949.33 9.92%
Optimum Development Bank 70,285,944.36 728,125,103.12 9.65%
Dumaguete City Development Bank 14,369,961.04 233,849,354.48 6.14%
Sampaguita SLA 3,150,000.00 53,013,204.79 5.94%
Maritime SLA 3,821,550.00 65,560,548.63 5.83%
Bank One Savings and Trust Corp. 29,906,666.66 530,389,484.18 5.64%
Quezon Coconut Producers SLB Inc. 2,312,499.35 58,040,408.94 3.98%
Malayan Bank Savings & Mortgage Bank 38,614,356.46 1,056,259,592.22 3.66%
Cordillera Savings Bank 3,175,340.99 97,373,694.03 3.26%
Century Savings Bank 27,037,276.81 901,370,505.91 3.00%
HSBC Savings Bank (Phils) Inc. 70,371,669.80 2,748,084,259.69 2.56%
Comsavings Bank 9,702,929.61 382,581,265.01 2.54%
University Savings Bank 3,199,448.37 206,998,198.47 1.55%
Security Bank Savings Corporation 15,116,055.87 1,123,967,139.31 1.34%
Lemery Savings & Loan Bank, Inc. 860,554.45 66,176,078.88 1.30%
City Savings Bank 18,555,582.06 2,472,118,775.49 0.75%
China Bank Savings 9,921,880.24 1,336,209,020.05 0.74%
BPI Direct Savings Bank 5,015,771.15 803,918,092.43 0.62%
First Consolidated Bank 10,489,910.34 1,939,239,317.62 0.54%
Equicom SB 2,471,765.37 459,838,990.18 0.54%
Tong Yang Savings Bank Inc. 1,912,663.74 392,789,225.10 0.49%
Farmers Savings & Loan Bank 258,669.27 101,626,945.31 0.25%
BPI Family Savings Bank 39,026,461.22 17,306,461,368.33 0.23%
Sterling Bank of Asia Inc. 2,539,287.48 2,308,153,826.27 0.11%
UCPB Savings Bank 2,374,662.49 2,412,138,206.81 0.10%
Iloilo City Development Bank 50,000.00 70,911,147.62 0.07%
Isla Bank (A Thrift Bank) Inc. 46,961.76 637,164,919.99 0.01%
Allied Savings Bank 0.00 997,482,772.75 0.00%
Bataan Development Bank 0.00 63,580,789.69 0.00%
Bataan SLA 0.00 75,118,952.34 0.00%
BDO Elite Savings Bank 0.00 1,587,605,708.24 0.00%
BPI Globe Banko Inc. Savings Bank 0.00 499,613,168.62 0.00%
Business & Consumers Bank 0.00 77,927,239.65 0.00%
Card SME Bank Inc. (A Thrift Bank) 0.00 207,351,272.15 0.00%
Citibank Savings Inc. 0.00 1,472,870,648.62 0.00%
Dungganon Bank 0.00 64,479,298.55 0.00%
Enterprise Bank Inc. 0.00 195,255,759.76 0.00%
Merchants Savings & Loan Association Inc. 0.00 535,527,047.95 0.00%
Metro Cebu Public Savings Bank 0.00 70,198,454.65 0.00%
Microfinance Maximum SB (Maxbank) 0.00 66,733,990.88 0.00%
Northpoint Development Bank 0.00 72,537,441.93 0.00%
Pacific Ace Savings Bank 0.00 74,386,714.64 0.00%
Philippine Resources Savings Banking Corporation 0.00 1,370,795,921.72 0.00%
Pridestar Development Bank 0.00 69,963,653.77 0.00%
Progress SLA 0.00 83,299,483.73 0.00%
RCBC Savings Bank 0.00 7,815,557,867.68 0.00%
Sun Savings Bank 0.00 115,048,743.38 0.00%
United Overseas Bank Philippines 0.00 702,252,001.37 0.00%
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 5,668,557,339.22 89,387,103,169.22 6.34%


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 507.801 million, or 8.96% of its DOSRI Loans fell past due as of March 31, 2013.  Of the forty-six banks with DOSRI Loans, forty had zero past due DOSRI Loans.  Of the six remaining banks  in this list, two banks had past due DOSRI Loans exceeding 30% of their Total DOSRI Loan Portfolio: 

  1. Quezon Coconut Producers SLB Inc.
  2. Silangan Savings and Loan Bank, Inc.
Philippine Thrift Banking System
DOSRI Past Due as % of DOSRI
March 31, 2013





DOSRI Past Due DOSRI DOSRI Past Due/DOSRI
Bank (In PHP) (In PHP) (In %)
Quezon Coconut Producers SLB Inc. 2,312,499.35 2,312,499.35 100.00%
Silangan Savings and Loan Bank, Inc. 3,311,630.00 3,311,630.00 100.00%
Philippine Savings Bank 498,818,279.54 1,910,010,540.57 26.12%
Dumaguete City Development Bank 2,600,000.00 14,369,961.04 18.09%
Life Savings Bank 758,788.68 9,873,698.71 7.68%
UCPB Savings Bank 4.00 2,374,662.49 0.00%
Bank One Savings and Trust Corp. 0.00 29,906,666.66 0.00%
BPI Direct Savings Bank 0.00 5,015,771.15 0.00%
BPI Family Savings Bank 0.00 39,026,461.22 0.00%
Century Savings Bank 0.00 27,037,276.81 0.00%
China Bank Savings 0.00 9,921,880.24 0.00%
City Savings Bank 0.00 18,555,582.06 0.00%
CityState Savings Bank 0.00 370,886,711.43 0.00%
Comsavings Bank 0.00 9,702,929.61 0.00%
Cordillera Savings Bank 0.00 3,175,340.99 0.00%
Equicom SB 0.00 2,471,765.37 0.00%
Farmers Savings & Loan Bank 0.00 258,669.27 0.00%
First Consolidated Bank 0.00 10,489,910.34 0.00%
Hiyas Savings & Loan Bank 0.00 15,657,847.34 0.00%
HSBC Savings Bank (Phils) Inc. 0.00 70,371,669.80 0.00%
Iloilo City Development Bank 0.00 50,000.00 0.00%
Isla Bank (A Thrift Bank) Inc. 0.00 46,961.76 0.00%
Lemery Savings & Loan Bank, Inc. 0.00 860,554.45 0.00%
Luzon Development Bank 0.00 88,762,308.87 0.00%
Malasiqui Progressive SLB, Inc. 0.00 5,715,000.00 0.00%
Malayan Bank Savings & Mortgage Bank 0.00 38,614,356.46 0.00%
Maritime SLA 0.00 3,821,550.00 0.00%
Opportunity Kauswagan Bank, Inc. 0.00 16,318,883.35 0.00%
Optimum Development Bank 0.00 70,285,944.36 0.00%
Pampanga Development Bank 0.00 16,314,140.50 0.00%
Penbank, Inc. 0.00 222,745,980.91 0.00%
Philippine Business Bank 0.00 1,203,691,098.39 0.00%
Philippine Postal Savings Bank 0.00 132,931,646.91 0.00%
Planters Development Bank 0.00 631,965,370.32 0.00%
Producers Savings Bank 0.00 137,666,787.71 0.00%
Sampaguita SLA 0.00 3,150,000.00 0.00%
Security Bank Savings Corporation 0.00 15,116,055.87 0.00%
Sterling Bank of Asia Inc. 0.00 2,539,287.48 0.00%
The Palawan Bank 0.00 1,676,804.05 0.00%
The Queen City Development Bank 0.00 292,086,484.52 0.00%
Tong Yang Savings Bank Inc. 0.00 1,912,663.74 0.00%
Tower Development Bank 0.00 16,517,153.24 0.00%
University Savings Bank 0.00 3,199,448.37 0.00%
Village Bank, Inc. 0.00 40,896,706.37 0.00%
Wealth Bank - A Development Bank 0.00 53,030,314.84 0.00%
World Partners Bank (A Thrift Bank) 0.00 113,910,362.30 0.00%
Allied Savings Bank 0.00 0.00 NA
Bataan Development Bank 0.00 0.00 NA
Bataan SLA 0.00 0.00 NA
BDO Elite Savings Bank 0.00 0.00 NA
BPI Globe Banko Inc. Savings Bank 0.00 0.00 NA
Business & Consumers 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
Dungganon Bank 0.00 0.00 NA
Enterprise Bank Inc. 0.00 0.00 NA
Merchants Savings & Loan Association Inc. 0.00 0.00 NA
Metro Cebu Public Savings Bank 0.00 0.00 NA
Microfinance Maximum SB (Maxbank) 0.00 0.00 NA
Northpoint Development Bank 0.00 0.00 NA
Pacific Ace Savings Bank 0.00 0.00 NA
Philippine Resources Savings Banking Corporation 0.00 0.00 NA
Pridestar Development Bank 0.00 0.00 NA
Progress SLA 0.00 0.00 NA
RCBC Savings Bank 0.00 0.00 NA
Sun Savings Bank 0.00 0.00 NA
United Overseas Bank Philippines 0.00 0.00 NA
Inter-Asia Development Bank NA NA NA
Legazpi Savings Bank Inc. NA NA NA
The Real Bank (A Thrift Bank) Inc. NA NA NA
Grand Total 507,801,201.57 5,668,557,339.22 8.96%

Source: www.bsp.gov.ph

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