Editor's Note: For the purposes of this article, Philippine Banks or the Philippine Banking System refers to the Philippine Commercial and Universal Banking System and the Philippine Thrift Banking System. We are ignoring the Philippine Rural and Cooperative Banking System whose asset base is tiny in comparison to the whole banking system (Php 195.959 billion or 2.27% of the Php 8,616.530 billion in assets held in the Philippine Banking System as of June 30, 2013).
In an April 9, 2012 article entitled "Stress Test Proves Strength of PH Banks", "Philippine banks are seen to survive a disaster in which the various lenders are forced to write off loans as large as PhP 36 billion without asking shareholders, the central bank, or the national government for bailout money." This assertion stems from a recent stress test conducted by the Bangko Sentral ng Pilipinas (BSP) on all 55 regular and commercial and expanded license banks.
For Philippine Banks, these NPLs currently comprise PhP 128.520 billion or 12.93% of the PhP 994.173 billion in Stockholders Equity (SE) as of June 30, 2013. So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholders equity by a little more than 6%.
Naturally, some banks would be more affected than others. (Weak banks are highlighted in yellow. (For more information regarding this, please read "The Top Distressed Philippine Banks as of June 30, 2013").
The stockholder's equity of The Real Bank would be completely wiped out. Two other banks, Silangan Savings and Loan Bank, Inc. and Citibank Savings, Inc., would almost be completely wiped out. Citibank Savings Inc. is the local subsidiary of a foreign bank and, as such, has little or no capital. In a crisis, it would rely on its "home-host" arrangement wherein the mother ship (the foreign parent) sends more funds and/or capital when local regulators or counterparties require it. Six other banks, namely, Opportunity Kauswagan Bank, Inc. (49.64% decline in SE), United Overseas Bank Philippines (49.21% decline in SE), Planters Development Bank (48.38% decline in SE), World Partners Bank (43.60% decline in SE), Legazpi Savings Bank (37.08% decline in SE), Security Bank Savings Corporation (33.90% decline in SE) would be severely affected.
Philippine Banking System | |||
NPL as % of SE | |||
June 30, 2013 | |||
NPL | SE | NPL/SE | |
Bank | (In PHP) | (In PHP) | (In %) |
THE REAL BANK (A THRIFT BANK) INC | 3,395,898,471.33 | 954,716,904.11 | 355.70% |
SILANGAN SAVINGS & LOAN BANK INC | 19,424,309.99 | 10,024,231.84 | 193.77% |
CITIBANK SAVINGS INC | 2,668,682,418.84 | 1,505,092,916.36 | 177.31% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 65,317,160.61 | 65,785,965.21 | 99.29% |
UNITED OVERSEAS BANK PHILIPPINES | 664,852,621.65 | 675,479,081.15 | 98.43% |
PLANTERS DEVELOPMENT BANK | 3,329,762,667.28 | 3,441,566,343.20 | 96.75% |
WORLD PARTNERS BANK (A THRIFT BANK) | 89,792,832.06 | 102,977,631.01 | 87.20% |
LEGAZPI SAVINGS BANK, INC. | 136,824,757.59 | 184,484,675.09 | 74.17% |
SECURITY BANK SAVINGS CORPORATION | 748,232,954.74 | 1,103,700,790.10 | 67.79% |
BATAAN DEVELOPMENT BANK | 40,375,571.40 | 67,429,814.21 | 59.88% |
COMSAVINGS BANK | 180,958,895.39 | 336,787,294.99 | 53.73% |
ENTERPRISE BANK INC (A THRIFT BANK) | 101,704,523.03 | 190,206,158.92 | 53.47% |
BPI GLOBE BANKO INC A SAVINGS BANK | 182,062,708.60 | 347,672,013.20 | 52.37% |
PHILIPPINE POSTAL SAVINGS BANK INC | 373,508,253.37 | 753,072,008.18 | 49.60% |
LUZON DEVELOPMENT BANK | 209,405,965.66 | 422,218,858.87 | 49.60% |
FARMERS SAVINGS & LOAN BANK INC | 49,778,999.14 | 102,665,008.26 | 48.49% |
ILOILO CITY DEVELOPMENT BANK | 33,566,491.04 | 72,516,124.72 | 46.29% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 840,644,785.84 | 1,855,253,921.92 | 45.31% |
SAMPAGUITA SAVINGS BANK INC | 25,352,585.39 | 56,198,308.44 | 45.11% |
STANDARD CHARTERED BANK | 1,098,898,477.63 | 2,436,791,613.93 | 45.10% |
PAMPANGA DEVELOPMENT BANK | 45,826,800.12 | 113,624,759.84 | 40.33% |
EQUICOM SAVINGS BANK INC | 182,093,052.34 | 474,402,836.24 | 38.38% |
ALLIED SAVINGS BANK | 357,228,320.30 | 970,670,969.63 | 36.80% |
PHILIPPINE RESOURCES SAVINGS BANKING | 506,120,298.59 | 1,444,810,331.28 | 35.03% |
VILLAGE BANK INC (A THRIFT BANK) | 25,354,756.32 | 74,691,166.15 | 33.95% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 90,230,745.42 | 266,175,154.05 | 33.90% |
TONG YANG SAVINGS BANK INC | 117,135,782.39 | 370,323,576.74 | 31.63% |
MARITIME SAVINGS BANK CORPORATION | 20,891,930.08 | 66,536,138.15 | 31.40% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 315,811,222.29 | 1,081,422,213.27 | 29.20% |
WEALTH DEVELOPMENT BANK CORPORATION | 112,359,183.78 | 386,675,687.50 | 29.06% |
MALASIQUI PROGRESSIVE SLB, INC | 15,416,574.15 | 53,228,171.60 | 28.96% |
UNIVERSITY SAVINGS BANK INC | 56,688,206.71 | 213,182,990.10 | 26.59% |
UNITED COCONUT PLANTERS BANK | 5,418,035,459.56 | 20,469,896,934.55 | 26.47% |
RCBC SAVINGS BANK INC | 1,888,113,779.49 | 7,446,561,848.19 | 25.36% |
PHILIPPINE SAVINGS BANK | 4,078,386,173.61 | 16,431,300,642.56 | 24.82% |
BANK OF COMMERCE | 3,974,275,557.76 | 16,207,283,504.94 | 24.52% |
PHILIPPINE BANK OF COMMUNICATIONS | 1,294,790,670.10 | 5,368,160,351.75 | 24.12% |
BPI FAMILY SAVINGS BANK INC | 4,202,527,605.71 | 17,933,631,550.55 | 23.43% |
UNION BANK OF THE PHILIPPINES | 9,455,821,843.24 | 40,873,093,422.58 | 23.13% |
EAST WEST BANKING CORPORATION | 4,123,947,638.15 | 18,367,165,525.46 | 22.45% |
BUSINESS AND CONSUMERS BANK (A DB) | 17,314,239.78 | 79,466,088.60 | 21.79% |
HIYAS BANKING CORPORATION | 32,746,038.55 | 159,435,298.25 | 20.54% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 16,046,296.68 | 84,752,873.74 | 18.93% |
FIRST CONSOLIDATED BANK INC (A PDB) | 353,652,603.04 | 1,984,315,768.51 | 17.82% |
CORDILLERA SAVINGS BANK INC | 17,598,967.60 | 99,002,411.81 | 17.78% |
PRODUCERS SAVINGS BANK CORPORATION | 201,998,125.29 | 1,143,633,294.44 | 17.66% |
BPI DIRECT SAVINGS BANK INC | 139,044,497.30 | 872,759,218.43 | 15.93% |
LEMERY SAVINGS & LOAN BANK, INC. | 10,169,554.92 | 67,666,272.11 | 15.03% |
DUMAGUETE CITY DEV BANK INC | 28,750,511.17 | 205,618,290.98 | 13.98% |
PHILIPPINE NATIONAL BANK | 10,537,323,358.47 | 75,389,633,814.34 | 13.98% |
BDO UNIBANK, INC. | 21,736,582,292.44 | 157,961,876,170.48 | 13.76% |
PRIDE STAR DEVELOPMENT BANK INC | 9,559,935.83 | 69,952,802.55 | 13.67% |
DEVELOPMENT BANK OF THE PHILIPPINES | 5,466,014,506.37 | 40,019,086,743.04 | 13.66% |
PHILIPPINE VETERANS BANK | 980,823,653.30 | 7,274,715,194.50 | 13.48% |
THE HONGKONG & SHANGHAI BANKING CORPORATION | 729,673,833.25 | 5,581,816,737.16 | 13.07% |
METRO CEBU PUBLIC SAVINGS BANK | 8,297,465.14 | 64,176,816.41 | 12.93% |
LAND BANK OF THE PHILIPPINES | 9,453,523,258.07 | 74,490,631,217.21 | 12.69% |
CHINA BANKING CORPORATION | 4,782,057,740.47 | 41,282,070,248.73 | 11.58% |
CITIBANK, N.A. | 836,380,944.02 | 7,307,790,974.29 | 11.45% |
CHINA BANK SAVINGS INC | 129,836,374.62 | 1,149,391,251.67 | 11.30% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 6,222,043.61 | 58,137,795.88 | 10.70% |
ROBINSONS BANK CORPORATION | 580,065,444.02 | 5,593,386,942.73 | 10.37% |
LIFE SAVINGS BANK INC | 6,665,816.07 | 64,480,923.50 | 10.34% |
MAYBANK PHILIPPINES, INC. | 970,046,462.92 | 10,011,074,288.81 | 9.69% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 673,765,617.19 | 7,154,855,472.70 | 9.42% |
CITY SAVINGS BANK INC | 238,915,692.77 | 2,616,360,671.62 | 9.13% |
NORTHPOINT DEVELOPMENT BANK INC | 6,664,184.61 | 74,784,706.83 | 8.91% |
UCPB SAVINGS BANK | 221,016,118.63 | 2,481,150,558.49 | 8.91% |
TOWER DEVELOPMENT BANK | 10,247,473.00 | 115,297,510.57 | 8.89% |
ASIA UNITED BANK CORPORATION | 1,596,944,586.65 | 18,004,493,277.37 | 8.87% |
BANK OF THE PHILIPPINE ISLANDS | 7,789,025,813.91 | 96,984,409,795.53 | 8.03% |
RIZAL COMMERCIAL BANKING CORPORATION | 3,666,770,696.69 | 45,733,731,017.79 | 8.02% |
KOREA EXCHANGE BANK | 41,388,628.80 | 535,093,060.19 | 7.73% |
CARD SME BANK INC A THRIFT BANK | 16,475,214.84 | 225,355,623.11 | 7.31% |
PACIFIC ACE SAVINGS BANK INC | 5,366,428.71 | 74,197,418.90 | 7.23% |
PHILIPPINE TRUST COMPANY | 1,163,844,952.40 | 19,325,487,937.77 | 6.02% |
CITYSTATE SAVINGS BANK INC | 43,862,623.29 | 797,606,384.96 | 5.50% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 34,915,854.31 | 665,872,938.03 | 5.24% |
SUN SAVINGS BANK INC | 5,626,766.85 | 107,378,430.56 | 5.24% |
CENTURY SAVINGS BANK CORPORATION | 44,181,100.51 | 908,388,275.05 | 4.86% |
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION | 299,214,016.73 | 6,416,703,004.47 | 4.66% |
HSBC SAVINGS BANK(PHILS) INC | 114,182,022.24 | 2,779,512,080.98 | 4.11% |
BANK ONE SAVINGS AND TRUST CORP. | 20,832,453.89 | 534,632,634.91 | 3.90% |
BATAAN SAVINGS AND LOAN BANK | 2,565,639.77 | 75,794,949.19 | 3.38% |
METROPOLITAN BANK & TRUST COMPANY | 4,131,775,569.43 | 129,811,488,118.47 | 3.18% |
MICROFINANCE MAXIMUM SB INC | 1,414,730.90 | 59,380,718.51 | 2.38% |
OPTIMUM DEVELOPMENT BANK INC | 16,184,888.53 | 712,005,019.73 | 2.27% |
SECURITY BANK CORPORATION | 745,283,264.55 | 38,031,802,693.36 | 1.96% |
PROGRESS SAVINGS AND LOAN BANK INC | 1,257,692.79 | 83,851,283.88 | 1.50% |
BANK OF CHINA LIMITED-MANILA BRANCH | 8,660,895.91 | 702,151,897.91 | 1.23% |
ANZ BANKING GROUP LTD. | 23,339,114.85 | 2,638,076,062.74 | 0.88% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 2,738,383.86 | 518,764,567.97 | 0.53% |
BANGKOK BANK PUBLIC CO. LTD. | 5,114,155.55 | 1,151,237,103.16 | 0.44% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES | 1,156,048.97 | 417,807,663.99 | 0.28% |
JP MORGAN CHASE BANK, N.A. | 734,885.22 | 2,112,614,494.20 | 0.03% |
INTERNATIONALE NEDERLANDEN GROEP BK | 88.40 | 2,978,631,660.50 | 0.00% |
BANK OF AMERICA, N.A. | 4.00 | 596,946,705.20 | 0.00% |
BDO ELITE SAVINGS BANK INC | 0.00 | 1,587,282,037.51 | 0.00% |
BDO PRIVATE BANK, INC. | 0.00 | 5,876,167,394.59 | 0.00% |
DEUTSCHE BANK AG | 0.00 | 2,154,472,213.73 | 0.00% |
ISLA BANK (A THRIFT BANK) INC | 0.00 | 639,029,859.97 | 0.00% |
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. | 0.00 | 690,973,487.79 | 0.00% |
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH | 0.00 | 1,441,815,862.96 | 0.00% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 2,045,511,752.87 | 0.00% |
Grand Total | 128,519,960,622.37 | 994,173,465,225.07 | 12.93% |
Source: www.bsp.gov.ph
Are NPLs the Right Numbers to Look At?
In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off. The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.
Investopedia.com defines "Classified Loans" as:
"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."
The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:
"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."
In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off. The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.
Investopedia.com defines "Classified Loans" as:
"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."
The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:
"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."
In Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:
- Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
- Substandard Loans are loans which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics;
- Doubtful Loans are Substandard Loans with the added characteristics that existing facts, conditions, and values make collection or liquidation in full highly improbable and in which substantial loss is probable;
- Loss are loans that are considered uncollectible or worthless and are of such little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.
- Loans Especially Mentioned: 5%
- Substandard - Secured: 6% - 25%
- Substandard - Unsecured: 25%
- Doubtful: 50%
- Loss: 100%
Philippine Banking System | |||
Classified Loans vs. NPLs | |||
June 30, 2013 | |||
Bank | Classified Loans | Gross NPLs | Classified Loans/ Gross NPLs |
INTERNATIONALE NEDERLANDEN GROEP BK | 455,183,734.92 | 88.40 | 514913727.29% |
BANK OF AMERICA, N.A. | 5,534,000.00 | 4.00 | 138350000.00% |
BANK OF CHINA LIMITED-MANILA BRANCH | 6,805,685,496.00 | 8,660,895.91 | 78579.46% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES | 72,205,000.00 | 1,156,048.97 | 6245.84% |
CITIBANK, N.A. | 33,218,279,000.00 | 836,380,944.02 | 3971.67% |
KOREA EXCHANGE BANK | 843,572,088.12 | 41,388,628.80 | 2038.17% |
VILLAGE BANK INC (A THRIFT BANK) | 464,895,661.08 | 25,354,756.32 | 1833.56% |
BANK ONE SAVINGS AND TRUST CORP. | 206,906,492.63 | 20,832,453.89 | 993.19% |
ILOILO CITY DEVELOPMENT BANK | 310,273,532.06 | 33,566,491.04 | 924.35% |
UNIVERSITY SAVINGS BANK INC | 440,667,822.30 | 56,688,206.71 | 777.35% |
SECURITY BANK CORPORATION | 5,766,000,000.00 | 745,283,264.55 | 773.67% |
COMSAVINGS BANK | 1,275,879,789.57 | 180,958,895.39 | 705.07% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 5,418,035,459.56 | 680.43% |
UCPB SAVINGS BANK | 1,468,145,007.88 | 221,016,118.63 | 664.27% |
BUSINESS AND CONSUMERS BANK (A DB) | 109,442,099.86 | 17,314,239.78 | 632.09% |
BANK OF COMMERCE | 24,857,960,000.00 | 3,974,275,557.76 | 625.47% |
DUMAGUETE CITY DEV BANK INC | 165,608,000.00 | 28,750,511.17 | 576.02% |
METROPOLITAN BANK & TRUST COMPANY | 22,013,188,544.22 | 4,131,775,569.43 | 532.78% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 1,888,113,779.49 | 472.19% |
LEGAZPI SAVINGS BANK, INC. | 627,281,000.00 | 136,824,757.59 | 458.46% |
PHILIPPINE NATIONAL BANK | 46,458,216,537.13 | 10,537,323,358.47 | 440.89% |
PRIDE STAR DEVELOPMENT BANK INC | 34,046,248.59 | 9,559,935.83 | 356.13% |
PHILIPPINE VETERANS BANK | 3,384,501,137.74 | 980,823,653.30 | 345.07% |
CHINA BANK SAVINGS INC | 430,117,715.94 | 129,836,374.62 | 331.28% |
PHILIPPINE TRUST COMPANY | 3,596,510,491.76 | 1,163,844,952.40 | 309.02% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,617,372.17 | 6,222,043.61 | 299.22% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 944,194,502.56 | 315,811,222.29 | 298.97% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 117,135,782.39 | 296.14% |
ASIA UNITED BANK CORPORATION | 4,695,648,613.05 | 1,596,944,586.65 | 294.04% |
PHILIPPINE SAVINGS BANK | 11,986,773,290.06 | 4,078,386,173.61 | 293.91% |
METRO CEBU PUBLIC SAVINGS BANK | 23,611,539.35 | 8,297,465.14 | 284.56% |
BANK OF THE PHILIPPINE ISLANDS | 22,055,091,689.87 | 7,789,025,813.91 | 283.16% |
RIZAL COMMERCIAL BANKING CORPORATION | 10,382,641,580.40 | 3,666,770,696.69 | 283.15% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,487,152.19 | 1,257,692.79 | 277.27% |
LIFE SAVINGS BANK INC | 17,917,170.04 | 6,665,816.07 | 268.79% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 40,375,571.40 | 253.62% |
UNION BANK OF THE PHILIPPINES | 22,397,330,686.68 | 9,455,821,843.24 | 236.86% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 580,065,444.02 | 233.60% |
FARMERS SAVINGS & LOAN BANK INC | 115,951,877.35 | 49,778,999.14 | 232.93% |
WORLD PARTNERS BANK (A THRIFT BANK) | 205,874,859.78 | 89,792,832.06 | 229.28% |
CHINA BANKING CORPORATION | 10,863,742,622.39 | 4,782,057,740.47 | 227.18% |
LAND BANK OF THE PHILIPPINES | 20,942,965,976.08 | 9,453,523,258.07 | 221.54% |
EQUICOM SAVINGS BANK INC | 392,606,970.92 | 182,093,052.34 | 215.61% |
TOWER DEVELOPMENT BANK | 21,070,264.24 | 10,247,473.00 | 205.61% |
CORDILLERA SAVINGS BANK INC | 35,230,171.27 | 17,598,967.60 | 200.18% |
FIRST CONSOLIDATED BANK INC (A PDB) | 707,211,549.91 | 353,652,603.04 | 199.97% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 67,814,851.34 | 34,915,854.31 | 194.22% |
THE REAL BANK (A THRIFT BANK) INC | 6,594,213,304.20 | 3,395,898,471.33 | 194.18% |
HSBC SAVINGS BANK(PHILS) INC | 218,978,691.68 | 114,182,022.24 | 191.78% |
BPI FAMILY SAVINGS BANK INC | 8,002,699,308.38 | 4,202,527,605.71 | 190.43% |
BPI GLOBE BANKO INC A SAVINGS BANK | 343,112,708.70 | 182,062,708.60 | 188.46% |
PHILIPPINE RESOURCES SAVINGS BANKING | 913,828,987.75 | 506,120,298.59 | 180.56% |
PRODUCERS SAVINGS BANK CORPORATION | 358,029,943.68 | 201,998,125.29 | 177.24% |
BDO UNIBANK, INC. | 38,354,846,555.95 | 21,736,582,292.44 | 176.45% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 673,765,617.19 | 175.85% |
MAYBANK PHILIPPINES, INC. | 1,681,368,825.01 | 970,046,462.92 | 173.33% |
SECURITY BANK SAVINGS CORPORATION | 1,284,028,653.09 | 748,232,954.74 | 171.61% |
PHILIPPINE POSTAL SAVINGS BANK INC | 629,718,969.98 | 373,508,253.37 | 168.60% |
DEVELOPMENT BANK OF THE PHILIPPINES | 9,181,141,688.49 | 5,466,014,506.37 | 167.97% |
PLANTERS DEVELOPMENT BANK | 5,427,443,797.18 | 3,329,762,667.28 | 163.00% |
OPTIMUM DEVELOPMENT BANK INC | 25,969,898.73 | 16,184,888.53 | 160.46% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 143,942,509.19 | 90,230,745.42 | 159.53% |
MARITIME SAVINGS BANK CORPORATION | 31,120,976.10 | 20,891,930.08 | 148.96% |
EAST WEST BANKING CORPORATION | 5,919,925,900.00 | 4,123,947,638.15 | 143.55% |
ANZ BANKING GROUP LTD. | 29,843,500.44 | 23,339,114.85 | 127.87% |
THE HONGKONG & SHANGHAI BANKING CORPORATION | 886,123,533.75 | 729,673,833.25 | 121.44% |
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION | 349,681,771.85 | 299,214,016.73 | 116.87% |
UNITED OVERSEAS BANK PHILIPPINES | 770,597,269.90 | 664,852,621.65 | 115.90% |
BPI DIRECT SAVINGS BANK INC | 159,802,614.01 | 139,044,497.30 | 114.93% |
STANDARD CHARTERED BANK | 1,211,997,322.26 | 1,098,898,477.63 | 110.29% |
CITIBANK SAVINGS INC | 2,864,125,015.82 | 2,668,682,418.84 | 107.32% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 17,200,486.03 | 16,046,296.68 | 107.19% |
LUZON DEVELOPMENT BANK | 212,791,152.95 | 209,405,965.66 | 101.62% |
SAMPAGUITA SAVINGS BANK INC | 25,438,631.09 | 25,352,585.39 | 100.34% |
LEMERY SAVINGS & LOAN BANK, INC. | 10,177,581.48 | 10,169,554.92 | 100.08% |
BANGKOK BANK PUBLIC CO. LTD. | 5,114,155.55 | 5,114,155.55 | 100.00% |
BATAAN SAVINGS AND LOAN BANK | 2,565,639.77 | 2,565,639.77 | 100.00% |
HIYAS BANKING CORPORATION | 32,746,038.55 | 32,746,038.55 | 100.00% |
JP MORGAN CHASE BANK, N.A. | 734,885.22 | 734,885.22 | 100.00% |
MALASIQUI PROGRESSIVE SLB, INC | 15,416,574.15 | 15,416,574.15 | 100.00% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 65,317,160.61 | 65,317,160.61 | 100.00% |
ALLIED SAVINGS BANK | 355,151,094.37 | 357,228,320.30 | 99.42% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 45,826,800.12 | 90.91% |
SUN SAVINGS BANK INC | 5,110,728.18 | 5,626,766.85 | 90.83% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 759,230,533.00 | 840,644,785.84 | 90.32% |
SILANGAN SAVINGS & LOAN BANK INC | 16,112,679.99 | 19,424,309.99 | 82.95% |
CITY SAVINGS BANK INC | 171,595,343.48 | 238,915,692.77 | 71.82% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 112,359,183.78 | 70.25% |
CENTURY SAVINGS BANK CORPORATION | 28,788,369.93 | 44,181,100.51 | 65.16% |
PHILIPPINE BANK OF COMMUNICATIONS | 75,880,403.95 | 1,294,790,670.10 | 5.86% |
CARD SME BANK INC A THRIFT BANK | 0.00 | 16,475,214.84 | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 43,862,623.29 | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 101,704,523.03 | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 2,738,383.86 | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 1,414,730.90 | 0.00% |
NORTHPOINT DEVELOPMENT BANK INC | 0.00 | 6,664,184.61 | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 5,366,428.71 | 0.00% |
BDO ELITE SAVINGS BANK INC | 0.00 | 0.00 | NA |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 0.00 | NA |
DEUTSCHE BANK AG | 496,385,022.21 | 0.00 | NA |
ISLA BANK (A THRIFT BANK) INC | 32,930,429.26 | 0.00 | NA |
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. | 708,393,027.00 | 0.00 | NA |
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH | 675,844,667.60 | 0.00 | NA |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 0.00 | NA |
Grand Total | 397,516,602,045.98 | 128,519,960,622.37 | 309.30% |
This level of classified loans should be measured against the bank's "capital cushion" or its ability to absorb losses. Capital Cushion is normally defined as a bank's "Tangible Common Equity" plus its Loan Loss Reserves. Tangible Common Equity (TCE) refers to the subset of shareholders' equity that is not preferred equity and not intangible assets. So it excludes such items as Hybrid equity (like preferred shares) and goodwill.
By this measure, the level of "Classified Loans and other Risky Assets" amounts to 39.55% of the PhP 1.005 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2013.
By this measure, the level of "Classified Loans and other Risky Assets" amounts to 39.55% of the PhP 1.005 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2013.
Philippine Banking System | |||
Classified Loans as % of Total Capital Cushion | |||
June 30, 2013 | |||
Classified Loans | Total Capital Cushion | Classified Loans/Total Capital Cushion | |
Bank | (In Php) | (In Php) | (In %) |
THE REAL BANK (A THRIFT BANK) INC | 6,594,213,304.20 | 403,147,751.48 | 1635.68% |
BANK OF CHINA LIMITED-MANILA BRANCH | 6,805,685,496.00 | 691,729,423.89 | 983.87% |
VILLAGE BANK INC (A THRIFT BANK) | 464,895,661.08 | 87,144,473.36 | 533.48% |
ILOILO CITY DEVELOPMENT BANK | 310,273,532.06 | 73,862,437.99 | 420.07% |
COMSAVINGS BANK | 1,275,879,789.57 | 335,887,558.21 | 379.85% |
LEGAZPI SAVINGS BANK, INC. | 627,281,000.00 | 194,120,410.23 | 323.14% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 12,448,548,502.92 | 296.15% |
CITIBANK, N.A. | 33,218,279,000.00 | 12,818,896,927.70 | 259.14% |
UNIVERSITY SAVINGS BANK INC | 440,667,822.30 | 236,579,775.75 | 186.27% |
KOREA EXCHANGE BANK | 843,572,088.12 | 615,452,065.13 | 137.07% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 77,165,974.30 | 132.70% |
BANK OF COMMERCE | 24,857,960,000.00 | 18,850,764,599.62 | 131.87% |
BUSINESS AND CONSUMERS BANK (A DB) | 109,442,099.86 | 84,866,201.63 | 128.96% |
PLANTERS DEVELOPMENT BANK | 5,427,443,797.18 | 4,460,571,956.35 | 121.68% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 8,554,603,721.31 | 104.22% |
FARMERS SAVINGS & LOAN BANK INC | 115,951,877.35 | 120,342,960.18 | 96.35% |
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. | 708,393,027.00 | 805,678,178.60 | 87.93% |
SECURITY BANK SAVINGS CORPORATION | 1,284,028,653.09 | 1,644,620,558.89 | 78.07% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 944,194,502.56 | 1,231,401,672.29 | 76.68% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 65,317,160.61 | 85,693,754.49 | 76.22% |
DUMAGUETE CITY DEV BANK INC | 165,608,000.00 | 223,461,033.96 | 74.11% |
EQUICOM SAVINGS BANK INC | 392,606,970.92 | 543,104,334.15 | 72.29% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 496,857,371.46 | 69.82% |
CITIBANK SAVINGS INC | 2,864,125,015.82 | 4,114,074,370.30 | 69.62% |
PHILIPPINE POSTAL SAVINGS BANK INC | 629,718,969.98 | 919,505,927.58 | 68.48% |
WORLD PARTNERS BANK (A THRIFT BANK) | 205,874,859.78 | 309,353,459.99 | 66.55% |
PHILIPPINE SAVINGS BANK | 11,986,773,290.06 | 18,236,150,781.97 | 65.73% |
PHILIPPINE RESOURCES SAVINGS BANKING | 913,828,987.75 | 1,547,784,682.35 | 59.04% |
UNITED OVERSEAS BANK PHILIPPINES | 770,597,269.90 | 1,313,192,957.05 | 58.68% |
BPI GLOBE BANKO INC A SAVINGS BANK | 343,112,708.70 | 601,368,752.92 | 57.06% |
UCPB SAVINGS BANK | 1,468,145,007.88 | 2,594,684,680.50 | 56.58% |
PHILIPPINE NATIONAL BANK | 46,458,216,537.13 | 84,004,145,075.40 | 55.30% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 143,942,509.19 | 286,198,061.70 | 50.29% |
PHILIPPINE VETERANS BANK | 3,384,501,137.74 | 6,973,725,217.49 | 48.53% |
CHINA BANK SAVINGS INC | 430,117,715.94 | 919,642,073.51 | 46.77% |
PRIDE STAR DEVELOPMENT BANK INC | 34,046,248.59 | 74,397,380.79 | 45.76% |
MARITIME SAVINGS BANK CORPORATION | 31,120,976.10 | 69,581,122.89 | 44.73% |
UNION BANK OF THE PHILIPPINES | 22,397,330,686.68 | 50,533,622,148.40 | 44.32% |
STANDARD CHARTERED BANK | 1,211,997,322.26 | 2,774,968,941.19 | 43.68% |
LUZON DEVELOPMENT BANK | 212,791,152.95 | 501,008,291.74 | 42.47% |
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH | 675,844,667.60 | 1,624,031,583.41 | 41.62% |
BPI FAMILY SAVINGS BANK INC | 8,002,699,308.38 | 20,094,610,163.90 | 39.83% |
BANK ONE SAVINGS AND TRUST CORP. | 206,906,492.63 | 534,351,269.17 | 38.72% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 759,230,533.00 | 2,028,825,527.90 | 37.42% |
LAND BANK OF THE PHILIPPINES | 20,942,965,976.08 | 56,273,884,754.04 | 37.22% |
METRO CEBU PUBLIC SAVINGS BANK | 23,611,539.35 | 64,099,611.67 | 36.84% |
ALLIED SAVINGS BANK | 355,151,094.37 | 1,029,626,610.77 | 34.49% |
DEUTSCHE BANK AG | 496,385,022.21 | 1,447,862,733.62 | 34.28% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 126,272,694.59 | 32.99% |
PRODUCERS SAVINGS BANK CORPORATION | 358,029,943.68 | 1,094,762,708.86 | 32.70% |
SAMPAGUITA SAVINGS BANK INC | 25,438,631.09 | 78,941,352.97 | 32.22% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,617,372.17 | 58,606,037.28 | 31.77% |
SILANGAN SAVINGS & LOAN BANK INC | 16,112,679.99 | 51,238,430.87 | 31.45% |
CORDILLERA SAVINGS BANK INC | 35,230,171.27 | 112,653,108.29 | 31.27% |
FIRST CONSOLIDATED BANK INC (A PDB) | 707,211,549.91 | 2,273,868,281.87 | 31.10% |
EAST WEST BANKING CORPORATION | 5,919,925,900.00 | 20,258,028,616.80 | 29.22% |
LIFE SAVINGS BANK INC | 17,917,170.04 | 66,253,767.56 | 27.04% |
MALASIQUI PROGRESSIVE SLB, INC | 15,416,574.15 | 60,238,932.04 | 25.59% |
DEVELOPMENT BANK OF THE PHILIPPINES | 9,181,141,688.49 | 36,950,526,617.34 | 24.85% |
CHINA BANKING CORPORATION | 10,863,742,622.39 | 44,517,432,468.25 | 24.40% |
ASIA UNITED BANK CORPORATION | 4,695,648,613.05 | 19,939,132,704.03 | 23.55% |
RIZAL COMMERCIAL BANKING CORPORATION | 10,382,641,580.40 | 45,606,071,310.72 | 22.77% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 6,061,486,326.02 | 22.35% |
BDO UNIBANK, INC. | 38,354,846,555.95 | 171,722,608,997.60 | 22.34% |
BANK OF THE PHILIPPINE ISLANDS | 22,055,091,689.87 | 98,795,615,856.91 | 22.32% |
METROPOLITAN BANK & TRUST COMPANY | 22,013,188,544.22 | 112,721,419,440.37 | 19.53% |
PHILIPPINE TRUST COMPANY | 3,596,510,491.76 | 18,421,879,406.35 | 19.52% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 17,200,486.03 | 89,042,850.13 | 19.32% |
HIYAS BANKING CORPORATION | 32,746,038.55 | 171,977,277.24 | 19.04% |
MAYBANK PHILIPPINES, INC. | 1,681,368,825.01 | 9,010,454,249.12 | 18.66% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 437,402,752.84 | 18.05% |
TOWER DEVELOPMENT BANK | 21,070,264.24 | 120,813,623.14 | 17.44% |
INTERNATIONALE NEDERLANDEN GROEP BK | 455,183,734.92 | 2,648,726,280.98 | 17.19% |
THE HONGKONG & SHANGHAI BANKING CORPORATION | 886,123,533.75 | 5,180,919,192.02 | 17.10% |
BPI DIRECT SAVINGS BANK INC | 159,802,614.01 | 952,277,854.73 | 16.78% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES | 72,205,000.00 | 445,486,889.99 | 16.21% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 7,688,104,210.04 | 15.41% |
SECURITY BANK CORPORATION | 5,766,000,000.00 | 38,660,747,119.81 | 14.91% |
LEMERY SAVINGS & LOAN BANK, INC. | 10,177,581.48 | 71,094,084.23 | 14.32% |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 5,284,200,527.12 | 12.15% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 67,814,851.34 | 682,273,505.85 | 9.94% |
HSBC SAVINGS BANK(PHILS) INC | 218,978,691.68 | 2,717,679,040.23 | 8.06% |
CITY SAVINGS BANK INC | 171,595,343.48 | 2,511,807,134.43 | 6.83% |
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION | 349,681,771.85 | 6,614,395,412.13 | 5.29% |
ISLA BANK (A THRIFT BANK) INC | 32,930,429.26 | 640,002,124.71 | 5.15% |
SUN SAVINGS BANK INC | 5,110,728.18 | 105,957,260.62 | 4.82% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,487,152.19 | 84,156,596.20 | 4.14% |
OPTIMUM DEVELOPMENT BANK INC | 25,969,898.73 | 722,623,123.19 | 3.59% |
CENTURY SAVINGS BANK CORPORATION | 28,788,369.93 | 857,054,950.39 | 3.36% |
BATAAN SAVINGS AND LOAN BANK | 2,565,639.77 | 76,527,304.60 | 3.35% |
PHILIPPINE BANK OF COMMUNICATIONS | 75,880,403.95 | 4,791,341,160.87 | 1.58% |
ANZ BANKING GROUP LTD. | 29,843,500.44 | 2,492,347,801.95 | 1.20% |
BANK OF AMERICA, N.A. | 5,534,000.00 | 607,196,709.20 | 0.91% |
BANGKOK BANK PUBLIC CO. LTD. | 5,114,155.55 | 1,235,346,677.00 | 0.41% |
JP MORGAN CHASE BANK, N.A. | 734,885.22 | 1,403,804,000.00 | 0.05% |
BDO ELITE SAVINGS BANK INC | 0.00 | 1,546,549,042.92 | 0.00% |
CARD SME BANK INC A THRIFT BANK | 0.00 | 235,488,638.18 | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 806,301,387.23 | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 221,400,839.94 | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 546,403,727.42 | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 55,697,972.23 | 0.00% |
NORTHPOINT DEVELOPMENT BANK INC | 0.00 | 80,887,073.69 | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 79,219,210.42 | 0.00% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 2,278,627,961.84 | 0.00% |
Grand Total | 397,516,602,045.98 | 1,005,026,570,449.49 | 39.55% |
Source: www.bsp.gov.ph
Stress Test Scenarios
Aggregate
So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?
In the aggregate, if Classified Loans amount to 39.55% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 3.96% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 19.78%.
Individual Banks
A 10% write-off of Classified Loans would wipe out one bank (highlighted in red) and severely impact (by 30% or more) the Total Capital Cushion of five banks (severely affected banks highlighted in yellow).
A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely impact the Total Capital Cushion of six more banks:
Aggregate
So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?
In the aggregate, if Classified Loans amount to 39.55% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 3.96% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 19.78%.
Individual Banks
A 10% write-off of Classified Loans would wipe out one bank (highlighted in red) and severely impact (by 30% or more) the Total Capital Cushion of five banks (severely affected banks highlighted in yellow).
- The Real Bank (163.57% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (98.39% reduction in Total Capital Cushion)
- Village SLA, Inc. (53.35% reduction in Total Capital Cushion)
- Iloilo City Development Bank (42.01% reduction in Total Capital Cushion)
- Comsavings Bank (37.99% reduction in Total Capital Cushion
- Legazpi Savings Bank, Inc. (32.31% reduction in Total Capital Cushion)
A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely impact the Total Capital Cushion of six more banks:
- The Real Bank (327.14% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (196.77% reduction in Total Capital Cushion)
- Village SLA, Inc. (106.70% reduction in Total Capital Cushion)
- Iloilo City Development Bank (84.01% reduction in Total Capital Cushion)
- Comsavings Bank (75.97% reduction in Total Capital Cushion)
- Legazpi Savings Bank (64.63% reduction in Total Capital Cushion)
- United Coconut Planters Bank (59.23% reduction in Total Capital Cushion)
- Citibank N.A. (51.83% reduction in Total Capital Cushion)
- University Savings Bank (37.25% reduction in Total Capital Cushion)
- The Real Bank (490.70% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (295.16% reduction in Total Capital Cushion)
- Village SLA, Inc. (160.04% reduction in Total Capital Cushion)
- Iloilo City Development Bank (126.02% reduction in Total Capital Cushion)
- Comsavings Bank (113.96% reduction in Total Capital Cushion)
- Legazpi Savings Bank, Inc. (96.94% reduction in Total Capital Cushion)
- United Coconut Planters Bank (88.84% reduction in Total Capital Cushion)
- Citibank N.A. (77.74% reduction in Total Capital Cushion)
- University Savings Bank (55.88% reduction in Total Capital Cushion)
- Korea Exchange Bank (41.12% reduction in Total Capital Cushion)
- Bataan Development Bank (39.81% reduction in Total Capital Cushion)
- Bank of Commerce (39.56% reduction in Total Capital Cushion)
- Business and Consumers Bank (38.69% reduction in Total Capital Cushion)
- Planters Development Bank (36.50% reduction in Total Capital Cushion)
- RCBC Savings Bank (31.27% reduction in Total Capital Cushion)
A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of eight banks and severely affect (reduce by 30% or more) the Total Capital Cushion of twelve more banks:
- The Real Bank (654.27% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (393.55% reduction in Total Capital Cushion)
- Village SLA, Inc. (213.39% reduction in Total Capital Cushion)
- Iloilo City Development Bank (168.03% reduction in Total Capital Cushion)
- Comsavings Bank (151.94% reduction in Total Capital Cushion)
- Legazpi Savings Bank, Inc. (129.26% reduction in Total Capital Cushion)
- United Coconut Planters Bank (123.42% reduction in Total Capital Cushion)
- Citibank N.A. (103.65% reduction in Total Capital Cushion)
- University Savings Bank (74.51% reduction in Total Capital Cushion)
- Korea Exchange Bank (54.83% reduction in Total Capital Cushion)
- Bataan Development Bank (53.08% reduction in Total Capital Cushion)
- Bank of Commerce (52.75% reduction in Total Capital Cushion)
- Business & Consumers Bank (51.58% reduction in Total Capital Cushion)
- Planters Development Bank (48.67% reduction in Total Capital Cushion)
- RCBC Savings Bank (41.69% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank (38.54% reduction in Total Capital Cushion)
- Mega International Commercial Bank Co., Ltd. (35.17% reduction in Total Capital Cushion)
- Security Bank Savings Corporation (31.23% reduction in Total Capital Cushion)
- Malayan Bank Savings & Mortgage Bank (30.67% reduction in Total Capital Cushion)
- Opportunity Kauswagan Bank, Inc. (30.49% reduction in Total Capital Cushion)
A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of eight banks and severely affect (reduce by 30% or more) the Total Capital Cushion of nineteen more banks:
- The Real Bank (817.84% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (491.93% reduction in Total Capital Cushion)
- Village SLA, Inc. (266.74% reduction in Total Capital Cushion)
- Iloilo City Development Bank (210.03% reduction in Total Capital Cushion)
- Comsavings Bank (189.93% reduction in Total Capital Cushion)
- Legazpi Savings Bank (161.57% reduction in Total Capital Cushion)
- United Coconut Planters Bank (148.07% reduction in Total Capital Cushion)
- Citibank N.A. (129.57% reduction in Total Capital Cushion)
- University Savings Bank (93.13% reduction in Total Capital Cushion)
- Korea Exchange Bank (68.53% reduction in Total Capital Cushion)
- Bataan Development Bank (66.35% reduction in Total Capital Cushion)
- Bank of Commerce (65.93% reduction in Total Capital Cushion)
- Business & Consumers Bank (64.48% reduction in Total Capital Cushion)
- Planters Development Bank (60.84% reduction in Total Capital Cushion)
- RCBC Savings Bank (52.11% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank (48.18% reduction in Total Capital Cushion)
- Mega International Commercial Bank Co., Ltd. (43.96% reduction in Total Capital Cushion)
- Security Bank Savings Corporation (39.04% reduction in Total Capital Cushion)
- Malayan Bank Savings & Mortgage Bank (38.34% reduction in Total Capital Cushion)
- Opportunity Kauswagan Bank, Inc. (38.11% reduction in Total Capital Cushion)
- Dumaguete City Development Bank (37.06% reduction in Total Capital Cushion)
- Equicom Savings Bank Inc. (36.14% reduction in Total Capital Cushion)
- Tong Yang Savings Bank (34.91% reduction in Total Capital Cushion)
- Citibank Savings Inc. (34.81% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc. (34.24% reduction in Total Capital Cushion)
- World Partners Bank (33.28% reduction in Total Capital Cushion)
- Philippine Savings Bank (32.87% reduction in Total Capital Cushion)
Please bear in mind that a number of these banks are already very weak and are in distress. Please see a previous blog post: "The Top Distressed Philippine Banks as of June 30, 2013". Moreover, their capital can be overstated. See a previous blog post "Can Philippine Banks Charge their Unbooked Losses Against Retained Earnings? - June 30, 2013". As such, any reduction in their capital cushion could knock down an already weak bank.
Philippine Banking System | ||||||||
Impact Analysis of Classified Loan Loss on Total Capital Cushion | ||||||||
June 30, 2013 | ||||||||
Classified Loans | Total Capital Cushion | Classified Loans/Total Capital Cushion | Impact of 10% Loss on Total Capital Cushion | Impact of 20% Loss on Total Capital Cushion | Impact of 30% Loss on Total Capital Cushion | Impact of 40% Loss on Total Capital Cushion | Impact of 50% Loss on Total Capital Cushion | |
Bank | (In Php) | (In Php) | (In %) | (In %) | (In %) | (In %) | (In %) | (In %) |
THE REAL BANK (A THRIFT BANK) INC | 6,594,213,304.20 | 403,147,751.48 | 1635.68% | 163.57% | 327.14% | 490.70% | 654.27% | 817.84% |
BANK OF CHINA LIMITED-MANILA BRANCH | 6,805,685,496.00 | 691,729,423.89 | 983.87% | 98.39% | 196.77% | 295.16% | 393.55% | 491.93% |
VILLAGE BANK INC (A THRIFT BANK) | 464,895,661.08 | 87,144,473.36 | 533.48% | 53.35% | 106.70% | 160.04% | 213.39% | 266.74% |
ILOILO CITY DEVELOPMENT BANK | 310,273,532.06 | 73,862,437.99 | 420.07% | 42.01% | 84.01% | 126.02% | 168.03% | 210.03% |
COMSAVINGS BANK | 1,275,879,789.57 | 335,887,558.21 | 379.85% | 37.99% | 75.97% | 113.96% | 151.94% | 189.93% |
LEGAZPI SAVINGS BANK, INC. | 627,281,000.00 | 194,120,410.23 | 323.14% | 32.31% | 64.63% | 96.94% | 129.26% | 161.57% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 12,448,548,502.92 | 296.15% | 29.61% | 59.23% | 88.84% | 118.46% | 148.07% |
CITIBANK, N.A. | 33,218,279,000.00 | 12,818,896,927.70 | 259.14% | 25.91% | 51.83% | 77.74% | 103.65% | 129.57% |
UNIVERSITY SAVINGS BANK INC | 440,667,822.30 | 236,579,775.75 | 186.27% | 18.63% | 37.25% | 55.88% | 74.51% | 93.13% |
KOREA EXCHANGE BANK | 843,572,088.12 | 615,452,065.13 | 137.07% | 13.71% | 27.41% | 41.12% | 54.83% | 68.53% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 77,165,974.30 | 132.70% | 13.27% | 26.54% | 39.81% | 53.08% | 66.35% |
BANK OF COMMERCE | 24,857,960,000.00 | 18,850,764,599.62 | 131.87% | 13.19% | 26.37% | 39.56% | 52.75% | 65.93% |
BUSINESS AND CONSUMERS BANK (A DB) | 109,442,099.86 | 84,866,201.63 | 128.96% | 12.90% | 25.79% | 38.69% | 51.58% | 64.48% |
PLANTERS DEVELOPMENT BANK | 5,427,443,797.18 | 4,460,571,956.35 | 121.68% | 12.17% | 24.34% | 36.50% | 48.67% | 60.84% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 8,554,603,721.31 | 104.22% | 10.42% | 20.84% | 31.27% | 41.69% | 52.11% |
FARMERS SAVINGS & LOAN BANK INC | 115,951,877.35 | 120,342,960.18 | 96.35% | 9.64% | 19.27% | 28.91% | 38.54% | 48.18% |
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD. | 708,393,027.00 | 805,678,178.60 | 87.93% | 8.79% | 17.59% | 26.38% | 35.17% | 43.96% |
SECURITY BANK SAVINGS CORPORATION | 1,284,028,653.09 | 1,644,620,558.89 | 78.07% | 7.81% | 15.61% | 23.42% | 31.23% | 39.04% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 944,194,502.56 | 1,231,401,672.29 | 76.68% | 7.67% | 15.34% | 23.00% | 30.67% | 38.34% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 65,317,160.61 | 85,693,754.49 | 76.22% | 7.62% | 15.24% | 22.87% | 30.49% | 38.11% |
DUMAGUETE CITY DEV BANK INC | 165,608,000.00 | 223,461,033.96 | 74.11% | 7.41% | 14.82% | 22.23% | 29.64% | 37.06% |
EQUICOM SAVINGS BANK INC | 392,606,970.92 | 543,104,334.15 | 72.29% | 7.23% | 14.46% | 21.69% | 28.92% | 36.14% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 496,857,371.46 | 69.82% | 6.98% | 13.96% | 20.94% | 27.93% | 34.91% |
CITIBANK SAVINGS INC | 2,864,125,015.82 | 4,114,074,370.30 | 69.62% | 6.96% | 13.92% | 20.89% | 27.85% | 34.81% |
PHILIPPINE POSTAL SAVINGS BANK INC | 629,718,969.98 | 919,505,927.58 | 68.48% | 6.85% | 13.70% | 20.55% | 27.39% | 34.24% |
WORLD PARTNERS BANK (A THRIFT BANK) | 205,874,859.78 | 309,353,459.99 | 66.55% | 6.66% | 13.31% | 19.97% | 26.62% | 33.28% |
PHILIPPINE SAVINGS BANK | 11,986,773,290.06 | 18,236,150,781.97 | 65.73% | 6.57% | 13.15% | 19.72% | 26.29% | 32.87% |
PHILIPPINE RESOURCES SAVINGS BANKING | 913,828,987.75 | 1,547,784,682.35 | 59.04% | 5.90% | 11.81% | 17.71% | 23.62% | 29.52% |
UNITED OVERSEAS BANK PHILIPPINES | 770,597,269.90 | 1,313,192,957.05 | 58.68% | 5.87% | 11.74% | 17.60% | 23.47% | 29.34% |
BPI GLOBE BANKO INC A SAVINGS BANK | 343,112,708.70 | 601,368,752.92 | 57.06% | 5.71% | 11.41% | 17.12% | 22.82% | 28.53% |
UCPB SAVINGS BANK | 1,468,145,007.88 | 2,594,684,680.50 | 56.58% | 5.66% | 11.32% | 16.97% | 22.63% | 28.29% |
PHILIPPINE NATIONAL BANK | 46,458,216,537.13 | 84,004,145,075.40 | 55.30% | 5.53% | 11.06% | 16.59% | 22.12% | 27.65% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 143,942,509.19 | 286,198,061.70 | 50.29% | 5.03% | 10.06% | 15.09% | 20.12% | 25.15% |
PHILIPPINE VETERANS BANK | 3,384,501,137.74 | 6,973,725,217.49 | 48.53% | 4.85% | 9.71% | 14.56% | 19.41% | 24.27% |
CHINA BANK SAVINGS INC | 430,117,715.94 | 919,642,073.51 | 46.77% | 4.68% | 9.35% | 14.03% | 18.71% | 23.39% |
PRIDE STAR DEVELOPMENT BANK INC | 34,046,248.59 | 74,397,380.79 | 45.76% | 4.58% | 9.15% | 13.73% | 18.31% | 22.88% |
MARITIME SAVINGS BANK CORPORATION | 31,120,976.10 | 69,581,122.89 | 44.73% | 4.47% | 8.95% | 13.42% | 17.89% | 22.36% |
UNION BANK OF THE PHILIPPINES | 22,397,330,686.68 | 50,533,622,148.40 | 44.32% | 4.43% | 8.86% | 13.30% | 17.73% | 22.16% |
STANDARD CHARTERED BANK | 1,211,997,322.26 | 2,774,968,941.19 | 43.68% | 4.37% | 8.74% | 13.10% | 17.47% | 21.84% |
LUZON DEVELOPMENT BANK | 212,791,152.95 | 501,008,291.74 | 42.47% | 4.25% | 8.49% | 12.74% | 16.99% | 21.24% |
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH | 675,844,667.60 | 1,624,031,583.41 | 41.62% | 4.16% | 8.32% | 12.48% | 16.65% | 20.81% |
BPI FAMILY SAVINGS BANK INC | 8,002,699,308.38 | 20,094,610,163.90 | 39.83% | 3.98% | 7.97% | 11.95% | 15.93% | 19.91% |
BANK ONE SAVINGS AND TRUST CORP. | 206,906,492.63 | 534,351,269.17 | 38.72% | 3.87% | 7.74% | 11.62% | 15.49% | 19.36% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 759,230,533.00 | 2,028,825,527.90 | 37.42% | 3.74% | 7.48% | 11.23% | 14.97% | 18.71% |
LAND BANK OF THE PHILIPPINES | 20,942,965,976.08 | 56,273,884,754.04 | 37.22% | 3.72% | 7.44% | 11.16% | 14.89% | 18.61% |
METRO CEBU PUBLIC SAVINGS BANK | 23,611,539.35 | 64,099,611.67 | 36.84% | 3.68% | 7.37% | 11.05% | 14.73% | 18.42% |
ALLIED SAVINGS BANK | 355,151,094.37 | 1,029,626,610.77 | 34.49% | 3.45% | 6.90% | 10.35% | 13.80% | 17.25% |
DEUTSCHE BANK AG | 496,385,022.21 | 1,447,862,733.62 | 34.28% | 3.43% | 6.86% | 10.29% | 13.71% | 17.14% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 126,272,694.59 | 32.99% | 3.30% | 6.60% | 9.90% | 13.20% | 16.50% |
PRODUCERS SAVINGS BANK CORPORATION | 358,029,943.68 | 1,094,762,708.86 | 32.70% | 3.27% | 6.54% | 9.81% | 13.08% | 16.35% |
SAMPAGUITA SAVINGS BANK INC | 25,438,631.09 | 78,941,352.97 | 32.22% | 3.22% | 6.44% | 9.67% | 12.89% | 16.11% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,617,372.17 | 58,606,037.28 | 31.77% | 3.18% | 6.35% | 9.53% | 12.71% | 15.88% |
SILANGAN SAVINGS & LOAN BANK INC | 16,112,679.99 | 51,238,430.87 | 31.45% | 3.14% | 6.29% | 9.43% | 12.58% | 15.72% |
CORDILLERA SAVINGS BANK INC | 35,230,171.27 | 112,653,108.29 | 31.27% | 3.13% | 6.25% | 9.38% | 12.51% | 15.64% |
FIRST CONSOLIDATED BANK INC (A PDB) | 707,211,549.91 | 2,273,868,281.87 | 31.10% | 3.11% | 6.22% | 9.33% | 12.44% | 15.55% |
EAST WEST BANKING CORPORATION | 5,919,925,900.00 | 20,258,028,616.80 | 29.22% | 2.92% | 5.84% | 8.77% | 11.69% | 14.61% |
LIFE SAVINGS BANK INC | 17,917,170.04 | 66,253,767.56 | 27.04% | 2.70% | 5.41% | 8.11% | 10.82% | 13.52% |
MALASIQUI PROGRESSIVE SLB, INC | 15,416,574.15 | 60,238,932.04 | 25.59% | 2.56% | 5.12% | 7.68% | 10.24% | 12.80% |
DEVELOPMENT BANK OF THE PHILIPPINES | 9,181,141,688.49 | 36,950,526,617.34 | 24.85% | 2.48% | 4.97% | 7.45% | 9.94% | 12.42% |
CHINA BANKING CORPORATION | 10,863,742,622.39 | 44,517,432,468.25 | 24.40% | 2.44% | 4.88% | 7.32% | 9.76% | 12.20% |
ASIA UNITED BANK CORPORATION | 4,695,648,613.05 | 19,939,132,704.03 | 23.55% | 2.35% | 4.71% | 7.06% | 9.42% | 11.77% |
RIZAL COMMERCIAL BANKING CORPORATION | 10,382,641,580.40 | 45,606,071,310.72 | 22.77% | 2.28% | 4.55% | 6.83% | 9.11% | 11.38% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 6,061,486,326.02 | 22.35% | 2.24% | 4.47% | 6.71% | 8.94% | 11.18% |
BDO UNIBANK, INC. | 38,354,846,555.95 | 171,722,608,997.60 | 22.34% | 2.23% | 4.47% | 6.70% | 8.93% | 11.17% |
BANK OF THE PHILIPPINE ISLANDS | 22,055,091,689.87 | 98,795,615,856.91 | 22.32% | 2.23% | 4.46% | 6.70% | 8.93% | 11.16% |
METROPOLITAN BANK & TRUST COMPANY | 22,013,188,544.22 | 112,721,419,440.37 | 19.53% | 1.95% | 3.91% | 5.86% | 7.81% | 9.76% |
PHILIPPINE TRUST COMPANY | 3,596,510,491.76 | 18,421,879,406.35 | 19.52% | 1.95% | 3.90% | 5.86% | 7.81% | 9.76% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 17,200,486.03 | 89,042,850.13 | 19.32% | 1.93% | 3.86% | 5.80% | 7.73% | 9.66% |
HIYAS BANKING CORPORATION | 32,746,038.55 | 171,977,277.24 | 19.04% | 1.90% | 3.81% | 5.71% | 7.62% | 9.52% |
MAYBANK PHILIPPINES, INC. | 1,681,368,825.01 | 9,010,454,249.12 | 18.66% | 1.87% | 3.73% | 5.60% | 7.46% | 9.33% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 437,402,752.84 | 18.05% | 1.80% | 3.61% | 5.41% | 7.22% | 9.02% |
TOWER DEVELOPMENT BANK | 21,070,264.24 | 120,813,623.14 | 17.44% | 1.74% | 3.49% | 5.23% | 6.98% | 8.72% |
INTERNATIONALE NEDERLANDEN GROEP BK | 455,183,734.92 | 2,648,726,280.98 | 17.19% | 1.72% | 3.44% | 5.16% | 6.87% | 8.59% |
THE HONGKONG & SHANGHAI BANKING CORPORATION | 886,123,533.75 | 5,180,919,192.02 | 17.10% | 1.71% | 3.42% | 5.13% | 6.84% | 8.55% |
BPI DIRECT SAVINGS BANK INC | 159,802,614.01 | 952,277,854.73 | 16.78% | 1.68% | 3.36% | 5.03% | 6.71% | 8.39% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES | 72,205,000.00 | 445,486,889.99 | 16.21% | 1.62% | 3.24% | 4.86% | 6.48% | 8.10% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 7,688,104,210.04 | 15.41% | 1.54% | 3.08% | 4.62% | 6.16% | 7.71% |
SECURITY BANK CORPORATION | 5,766,000,000.00 | 38,660,747,119.81 | 14.91% | 1.49% | 2.98% | 4.47% | 5.97% | 7.46% |
LEMERY SAVINGS & LOAN BANK, INC. | 10,177,581.48 | 71,094,084.23 | 14.32% | 1.43% | 2.86% | 4.29% | 5.73% | 7.16% |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 5,284,200,527.12 | 12.15% | 1.22% | 2.43% | 3.65% | 4.86% | 6.08% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 67,814,851.34 | 682,273,505.85 | 9.94% | 0.99% | 1.99% | 2.98% | 3.98% | 4.97% |
HSBC SAVINGS BANK(PHILS) INC | 218,978,691.68 | 2,717,679,040.23 | 8.06% | 0.81% | 1.61% | 2.42% | 3.22% | 4.03% |
CITY SAVINGS BANK INC | 171,595,343.48 | 2,511,807,134.43 | 6.83% | 0.68% | 1.37% | 2.05% | 2.73% | 3.42% |
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION | 349,681,771.85 | 6,614,395,412.13 | 5.29% | 0.53% | 1.06% | 1.59% | 2.11% | 2.64% |
ISLA BANK (A THRIFT BANK) INC | 32,930,429.26 | 640,002,124.71 | 5.15% | 0.51% | 1.03% | 1.54% | 2.06% | 2.57% |
SUN SAVINGS BANK INC | 5,110,728.18 | 105,957,260.62 | 4.82% | 0.48% | 0.96% | 1.45% | 1.93% | 2.41% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,487,152.19 | 84,156,596.20 | 4.14% | 0.41% | 0.83% | 1.24% | 1.66% | 2.07% |
OPTIMUM DEVELOPMENT BANK INC | 25,969,898.73 | 722,623,123.19 | 3.59% | 0.36% | 0.72% | 1.08% | 1.44% | 1.80% |
CENTURY SAVINGS BANK CORPORATION | 28,788,369.93 | 857,054,950.39 | 3.36% | 0.34% | 0.67% | 1.01% | 1.34% | 1.68% |
BATAAN SAVINGS AND LOAN BANK | 2,565,639.77 | 76,527,304.60 | 3.35% | 0.34% | 0.67% | 1.01% | 1.34% | 1.68% |
PHILIPPINE BANK OF COMMUNICATIONS | 75,880,403.95 | 4,791,341,160.87 | 1.58% | 0.16% | 0.32% | 0.48% | 0.63% | 0.79% |
ANZ BANKING GROUP LTD. | 29,843,500.44 | 2,492,347,801.95 | 1.20% | 0.12% | 0.24% | 0.36% | 0.48% | 0.60% |
BANK OF AMERICA, N.A. | 5,534,000.00 | 607,196,709.20 | 0.91% | 0.09% | 0.18% | 0.27% | 0.36% | 0.46% |
BANGKOK BANK PUBLIC CO. LTD. | 5,114,155.55 | 1,235,346,677.00 | 0.41% | 0.04% | 0.08% | 0.12% | 0.17% | 0.21% |
JP MORGAN CHASE BANK, N.A. | 734,885.22 | 1,403,804,000.00 | 0.05% | 0.01% | 0.01% | 0.02% | 0.02% | 0.03% |
BDO ELITE SAVINGS BANK INC | 0.00 | 1,546,549,042.92 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
CARD SME BANK INC A THRIFT BANK | 0.00 | 235,488,638.18 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 806,301,387.23 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 221,400,839.94 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 546,403,727.42 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 55,697,972.23 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
NORTHPOINT DEVELOPMENT BANK INC | 0.00 | 80,887,073.69 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 79,219,210.42 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 2,278,627,961.84 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Grand Total | 397,516,602,045.98 | 1,005,026,570,449.49 | 39.55% | 3.96% | 7.91% | 11.87% | 15.82% | 19.78% |
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