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. 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 September 30, 2013. It updates the six previous blog posts:"The Top Distressed Philippine Banks as of June 30, 2013", "The Top Distressed Philippine Banks as of March 31, 2013", "The Top Distressed Philippine Banks as of December 31, 2012", "The Top Distressed Philippine Banks as of September 30, 2012", "The Top Distressed Philippine Banks as of June 30, 2012" and "The Top Distressed Philippine Banks as of March 31, 2012".
Failed Bank:
It is important to note that one of the banks on this list of distressed banks, namely,Silangan Savings & Loan Bank Inc., failed as of January 9, 2014. As of September 30, 2013, it had a Distressed Ratio of 124.22%. For more information regarding this, please refer to the previous blog post: "A Short Analysis of Recent Bank Failures since the Failure of Banco Filipino - Updated"
To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Improve in the 3rd Qtr. of 2013".
The Top Distressed Banks in the Philippines | ||||
September 30, 2013 | ||||
In Php | ||||
September 30, 2013 | ||||
Bank | Type of Bank | Total Distressed Assets | Total Capital Cushion | Distressed Assets/ Total Capital Cushion (In %) |
THE REAL BANK (A THRIFT BANK) INC | Thrift Bank | 8,524,192,979.10 | 403,897,117.56 | 2110.49% |
BANK OF CHINA LIMITED-MANILA BRANCH | U/KB | 5,413,268,714.84 | 677,275,685.72 | 799.27% |
VILLAGE BANK INC (A THRIFT BANK) | Thrift Bank | 687,677,082.87 | 86,744,428.80 | 792.76% |
COMSAVINGS BANK | Thrift Bank | 2,181,731,382.42 | 324,037,558.21 | 673.30% |
UNITED COCONUT PLANTERS BANK | U/KB | 62,683,146,880.44 | 12,441,512,075.45 | 503.82% |
ILOILO CITY DEVELOPMENT BANK | Thrift Bank | 357,993,018.50 | 74,068,482.77 | 483.33% |
INTER-ASIA DEVELOPMENT BANK | Thrift Bank | 175,020,938.69 | 59,391,398.86 | 294.69% |
THE PALAWAN BANK (PALAWAN DB) INC | Thrift Bank | 77,068,340.15 | 27,180,689.84 | 283.54% |
PLANTERS DEVELOPMENT BANK | Thrift Bank | 12,037,164,005.99 | 4,435,504,297.84 | 271.38% |
BATAAN DEVELOPMENT BANK | Thrift Bank | 159,894,410.86 | 77,646,386.19 | 205.93% |
DEUTSCHE BANK AG | U/KB | 3,067,613,129.87 | 1,491,605,872.17 | 205.66% |
STANDARD CHARTERED BANK | U/KB | 5,481,987,266.08 | 2,746,581,696.80 | 199.59% |
WORLD PARTNERS BANK (A THRIFT BANK) | Thrift Bank | 331,710,971.69 | 168,429,784.45 | 196.94% |
UNIVERSITY SAVINGS BANK INC | Thrift Bank | 465,380,380.07 | 237,367,686.97 | 196.06% |
CITIBANK, N.A. | U/KB | 25,141,192,359.18 | 12,988,072,447.69 | 193.57% |
FARMERS SAVINGS & LOAN BANK INC | Thrift Bank | 206,034,010.40 | 120,445,949.31 | 171.06% |
BANK OF COMMERCE | U/KB | 31,965,699,305.28 | 18,938,602,086.54 | 168.79% |
ENTERPRISE BANK INC (A THRIFT BANK) | Thrift Bank | 369,899,499.76 | 227,755,866.40 | 162.41% |
EQUICOM SAVINGS BANK INC | Thrift Bank | 862,156,303.88 | 547,774,008.61 | 157.39% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | Thrift Bank | 152,715,466.78 | 99,188,170.54 | 153.97% |
BUSINESS AND CONSUMERS BANK (A DB) | Thrift Bank | 125,799,957.15 | 83,997,066.23 | 149.77% |
RCBC SAVINGS BANK INC | Thrift Bank | 12,882,048,142.17 | 8,712,884,410.13 | 147.85% |
PHILIPPINE BANK OF COMMUNICATIONS | U/KB | 7,076,143,296.69 | 4,791,505,760.04 | 147.68% |
MALAYAN BANK SAVINGS AND MORT BANK INC | Thrift Bank | 1,655,811,844.54 | 1,231,401,672.29 | 134.47% |
HIYAS BANKING CORPORATION | Thrift Bank | 226,640,660.66 | 169,268,776.65 | 133.89% |
CHINA BANK SAVINGS INC | Thrift Bank | 1,236,939,434.71 | 959,961,776.24 | 128.85% |
SILANGAN SAVINGS & LOAN BANK INC | Thrift Bank | 64,269,096.58 | 51,738,430.87 | 124.22% |
LUZON DEVELOPMENT BANK | Thrift Bank | 619,898,218.14 | 501,040,949.74 | 123.72% |
PHILIPPINE VETERANS BANK | U/KB | 8,068,969,382.11 | 7,003,198,360.29 | 115.22% |
PHILIPPINE NATIONAL BANK | U/KB | 92,180,432,184.65 | 83,697,635,640.24 | 110.14% |
MICROFINANCE MAXIMUM SB INC | Thrift Bank | 59,066,646.76 | 55,912,948.55 | 105.64% |
KOREA EXCHANGE BANK | U/KB | 620,702,964.29 | 590,448,140.37 | 105.12% |
Grand Total | 285,158,268,275.30 | 164,022,075,622.36 | 173.85% |
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 September 30, 2013 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.
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 September 30, 2013 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.
No comments:
Post a Comment