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 193.100 billion or 2.11% of the Php 9,134.605 billion in assets held in the Philippine Banking System as of September 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 129.096 billion or 12.78% of the PhP 1,010.514 billion in Stockholders Equity (SE) as of September 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. Failed banks are highlighted in red. For more information regarding this, please read "The Top Distressed Philippine Banks as of September 30, 2013").
The stockholder's equity of The Real Bank would be completely wiped out. Two other banks, Silangan Savings and Loan Bank, Inc. (which failed last January 9, 2014: See a previous blog post: "A Short Analysis of Recent Bank Failures since the Failure of Banco Filipino - Updated") 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. (57.94% decline in SE), Planters Development Bank (52.75% decline in SE), United Overseas Bank Philippines (50.84% decline in SE), World Partners Bank (42.05% decline in SE), Security Bank Savings Corporation (35.24% decline in SE), Enterprise Bank Inc. (32.05% decline in SE), Comsavings Bank (31.14% decline in SE) would be severely affected.
Philippine Banking System | |||
NPL as % of SE | |||
September 30, 2013 | |||
NPL | SE | NPL/SE | |
Bank | (In PHP) | (In PHP) | (In %) |
THE REAL BANK (A THRIFT BANK) INC | 3,676,265,796.17 | 760,367,463.02 | 483.49% |
SILANGAN SAVINGS & LOAN BANK INC | 19,342,509.99 | 10,025,580.13 | 192.93% |
CITIBANK SAVINGS INC | 2,725,163,565.91 | 1,574,388,139.34 | 173.09% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 86,081,823.47 | 74,291,602.90 | 115.87% |
PLANTERS DEVELOPMENT BANK | 3,305,372,801.44 | 3,133,227,648.33 | 105.49% |
UNITED OVERSEAS BANK PHILIPPINES | 664,875,061.65 | 653,858,984.70 | 101.68% |
WORLD PARTNERS BANK (A THRIFT BANK) | 88,154,241.39 | 104,831,569.74 | 84.09% |
SECURITY BANK SAVINGS CORPORATION | 771,924,973.74 | 1,095,151,496.40 | 70.49% |
ENTERPRISE BANK INC (A THRIFT BANK) | 121,575,888.04 | 189,654,635.05 | 64.10% |
COMSAVINGS BANK | 180,956,095.42 | 290,532,377.98 | 62.28% |
BPI GLOBE BANKO INC A SAVINGS BANK | 184,972,059.46 | 326,013,506.53 | 56.74% |
NORTHPOINT DEV'T BANK INC | 41,343,785.62 | 76,016,688.85 | 54.39% |
BATAAN DEVELOPMENT BANK | 35,501,329.21 | 65,886,982.35 | 53.88% |
PHILIPPINE POSTAL SAVINGS BANK INC | 365,776,413.52 | 679,474,343.21 | 53.83% |
THE PALAWAN BANK (PALAWAN DB) INC | 12,816,840.35 | 24,105,699.34 | 53.17% |
LUZON DEVELOPMENT BANK | 219,963,748.95 | 422,992,285.10 | 52.00% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 782,703,074.20 | 1,668,574,318.71 | 46.91% |
EQUICOM SAVINGS BANK INC | 226,206,776.15 | 486,433,820.41 | 46.50% |
SAMPAGUITA SAVINGS BANK INC | 24,566,592.56 | 55,513,886.63 | 44.25% |
ALLIED SAVINGS BANK | 427,675,246.13 | 972,514,395.43 | 43.98% |
PAMPANGA DEVELOPMENT BANK | 40,236,948.19 | 106,022,568.94 | 37.95% |
FARMERS SAVINGS & LOAN BANK INC | 41,146,586.00 | 112,083,965.94 | 36.71% |
STANDARD CHARTERED BANK | 1,073,584,225.34 | 2,965,820,722.31 | 36.20% |
VILLAGE BANK INC (A THRIFT BANK) | 26,309,046.44 | 73,694,723.45 | 35.70% |
PHILIPPINE RESOURCES SAVINGS BANKING | 530,093,760.55 | 1,527,666,933.73 | 34.70% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 90,697,987.61 | 266,219,853.55 | 34.07% |
MALASIQUI PROGRESSIVE SLB, INC | 17,567,906.25 | 54,435,015.90 | 32.27% |
MARITIME SAVINGS BANK CORPORATION | 21,081,945.79 | 66,310,245.43 | 31.79% |
WEALTH DEVELOPMENT BANK CORPORATION | 127,076,803.11 | 401,547,654.84 | 31.65% |
ILOILO CITY DEVELOPMENT BANK | 24,049,605.18 | 76,402,736.36 | 31.48% |
TONG YANG SAVINGS BANK INC | 117,167,791.14 | 389,060,296.20 | 30.12% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 307,337,266.81 | 1,081,058,516.12 | 28.43% |
RCBC SAVINGS BANK INC | 2,058,816,470.70 | 7,385,685,863.54 | 27.88% |
UNITED COCONUT PLANTERS BANK | 5,741,683,988.58 | 20,746,333,625.69 | 27.68% |
UNIVERSITY SAVINGS BANK INC | 56,256,741.84 | 211,977,767.06 | 26.54% |
BPI FAMILY SAVINGS BANK INC | 4,587,952,154.71 | 17,392,299,117.83 | 26.38% |
BANK OF COMMERCE | 4,016,356,222.98 | 15,518,003,350.98 | 25.88% |
PHIL BANK OF COMMUNICATIONS | 1,331,723,088.72 | 5,172,743,757.18 | 25.75% |
EAST WEST BANKING CORP | 4,729,518,467.90 | 18,780,806,566.60 | 25.18% |
UNION BANK OF THE PHILIPPINES | 9,281,609,151.50 | 40,225,927,291.79 | 23.07% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 19,265,232.54 | 84,133,843.30 | 22.90% |
PHILIPPINE SAVINGS BANK | 3,746,195,124.94 | 16,615,065,526.25 | 22.55% |
FIRST CONSOLIDATED BANK INC (A PDB) | 439,534,380.11 | 2,060,481,532.50 | 21.33% |
CHINA BANK SAVINGS INC | 226,221,032.39 | 1,082,493,058.81 | 20.90% |
BUSINESS AND CONSUMERS BANK (A DB) | 16,543,047.39 | 81,435,262.58 | 20.31% |
HIYAS BANKING CORPORATION | 31,733,803.62 | 159,014,472.02 | 19.96% |
PRODUCERS SAVINGS BANK CORPORATION | 202,521,421.54 | 1,173,120,829.04 | 17.26% |
LIFE SAVINGS BANK INC | 11,066,411.65 | 64,886,737.17 | 17.05% |
BPI DIRECT SAVINGS BANK INC | 154,650,566.46 | 927,369,890.78 | 16.68% |
CORDILLERA SAVINGS BANK INC | 16,690,807.03 | 101,030,080.16 | 16.52% |
PHILIPPINE VETERANS BANK | 1,126,133,863.31 | 6,992,435,561.67 | 16.11% |
METRO CEBU PUBLIC SAVINGS BANK | 9,259,450.09 | 63,907,837.08 | 14.49% |
DEVELOPMENT BANK OF THE PHILIPPINES | 5,747,728,689.61 | 40,032,419,521.04 | 14.36% |
BDO UNIBANK INC | 22,361,024,360.61 | 161,661,538,506.02 | 13.83% |
PHILIPPINE NATIONAL BANK | 10,326,705,113.23 | 76,832,904,546.38 | 13.44% |
DUMAGUETE CITY DEVELOPMENT BANK INC | 27,051,197.57 | 207,683,079.52 | 13.03% |
LEMERY SAVINGS & LOAN BANK, INC. | 8,615,082.76 | 68,438,323.19 | 12.59% |
LAND BANK OF THE PHILIPPINES | 9,217,532,081.02 | 74,177,444,655.41 | 12.43% |
HONGKONG & SHANGHAI BANKING CORPORATION | 719,591,328.75 | 5,814,019,507.53 | 12.38% |
PRIDE STAR DEVELOPMENT BANK INC | 8,634,935.83 | 69,970,467.36 | 12.34% |
CHINA BANKING CORPORATION | 4,718,030,496.01 | 41,068,572,860.31 | 11.49% |
MAYBANK PHILIPPINES INC | 1,086,048,088.92 | 10,140,595,987.28 | 10.71% |
CITIBANK, N.A. | 790,687,359.90 | 7,472,192,198.87 | 10.58% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 6,021,526.16 | 58,237,618.64 | 10.34% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 713,515,607.33 | 7,262,313,325.38 | 9.82% |
UCPB SAVINGS BANK | 238,181,901.40 | 2,567,896,185.64 | 9.28% |
TOWER DEVELOPMENT BANK | 9,855,607.32 | 110,445,201.58 | 8.92% |
CITY SAVINGS BANK INC | 248,807,968.00 | 2,910,703,059.42 | 8.55% |
ASIA UNITED BANK CORPORATION | 1,484,724,998.75 | 17,857,415,118.55 | 8.31% |
RIZAL COMMERCIAL BANKING CORP | 3,813,174,399.56 | 46,084,616,203.42 | 8.27% |
ROBINSONS BANK CORPORATION | 426,874,861.97 | 5,351,042,759.62 | 7.98% |
CARD SME BANK INC A THRIFT BANK | 18,325,325.68 | 237,063,154.84 | 7.73% |
BANK OF THE PHILIPPINE ISLANDS | 7,459,301,933.47 | 101,513,950,073.79 | 7.35% |
PACIFIC ACE SAVINGS BANK INC | 5,392,641.51 | 74,921,481.62 | 7.20% |
KOREA EXCHANGE BANK | 41,519,190.16 | 594,713,419.54 | 6.98% |
INTER-ASIA DEVELOPMENT BANK | 3,346,585.72 | 52,621,713.94 | 6.36% |
CITYSTATE SAVINGS BANK INC | 47,071,949.74 | 790,545,549.10 | 5.95% |
SUN SAVINGS BANK INC | 6,245,559.79 | 108,751,688.11 | 5.74% |
PHILIPPINE TRUST COMPANY | 1,147,542,163.55 | 20,331,893,875.73 | 5.64% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 32,495,043.40 | 656,057,455.54 | 4.95% |
HSBC SAVINGS BANK (PHILS) INC | 130,672,215.76 | 2,844,445,241.76 | 4.59% |
CTBC BANK (PHILIPPINES) CORPORATION | 293,736,854.58 | 6,445,548,838.27 | 4.56% |
CENTURY SAVINGS BANK CORPORATION | 40,262,101.54 | 911,189,647.34 | 4.42% |
BATAAN SAVINGS AND LOAN BANK | 2,770,214.85 | 71,221,347.13 | 3.89% |
BANK ONE SAVINGS AND TRUST CORP. | 20,076,854.81 | 540,089,692.66 | 3.72% |
MICROFINANCE MAXIMUM SB INC | 1,195,287.06 | 53,366,623.19 | 2.24% |
METROPOLITAN BANK & TRUST CO | 2,923,573,649.37 | 132,913,338,941.49 | 2.20% |
OPTIMUM DEVELOPMENT BANK INC | 13,837,575.70 | 718,776,831.06 | 1.93% |
SECURITY BANK CORPORATION | 740,210,526.40 | 40,439,589,096.64 | 1.83% |
PROGRESS SAVINGS AND LOAN BANK INC | 1,239,886.20 | 83,394,670.11 | 1.49% |
ANZ BANKING GROUP LTD | 23,339,114.85 | 3,033,597,583.83 | 0.77% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 3,144,449.34 | 506,500,666.78 | 0.62% |
BANGKOK BANK PUBLIC CO LTD | 5,034,155.55 | 1,160,083,398.87 | 0.43% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 1,156,048.97 | 406,949,575.79 | 0.28% |
JP MORGAN CHASE BANK NATIONAL ASSOCIATION | 734,885.22 | 2,148,653,104.95 | 0.03% |
INTERNATIONALE NEDERLANDEN GROEP BK | 89.08 | 3,132,011,905.89 | 0.00% |
BANK OF AMERICA N.A. | 4.00 | 596,946,705.20 | 0.00% |
BANK OF CHINA LIMITED-MANILA BRANCH | 0.00 | 731,115,002.59 | 0.00% |
BDO ELITE SAVINGS BANK INC | 0.00 | 1,600,883,444.68 | 0.00% |
BDO PRIVATE BANK, INC. | 0.00 | 6,254,571,149.37 | 0.00% |
DEUTSCHE BANK AG | 0.00 | 2,210,540,126.62 | 0.00% |
ISLA BANK (A THRIFT BANK) INC | 0.00 | 640,603,002.19 | 0.00% |
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD | 0.00 | 716,962,280.46 | 0.00% |
MIZUHO BANK LTD - MANILA BRANCH | 0.00 | 1,418,575,146.28 | 0.00% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 0.00 | 2,202,443,873.38 | 0.00% |
Grand Total | 129,096,349,834.78 | 1,010,513,696,062.85 | 12.78% |
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 | |||
September 30, 2013 | |||
Classified Loans | NPL | Classified Loans/NPL | |
Bank | (In PHP) | (In PHP) | (In %) |
INTERNATIONALE NEDERLANDEN GROEP BK | 447,955,000.00 | 89.08 | 502868208.35% |
BANK OF AMERICA N.A. | 5,534,000.00 | 4.00 | 138350000.00% |
INTER-ASIA DEVELOPMENT BANK | 151,247,965.90 | 3,346,585.72 | 4519.47% |
VILLAGE BANK INC (A THRIFT BANK) | 653,169,873.68 | 26,309,046.44 | 2482.68% |
CITIBANK, N.A. | 17,164,250,000.00 | 790,687,359.90 | 2170.80% |
ILOILO CITY DEVELOPMENT BANK | 328,357,308.71 | 24,049,605.18 | 1365.33% |
KOREA EXCHANGE BANK | 565,189,489.03 | 41,519,190.16 | 1361.27% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 13,972,461.61 | 1,156,048.97 | 1208.64% |
BANK ONE SAVINGS AND TRUST CORP. | 205,058,819.72 | 20,076,854.81 | 1021.37% |
SECURITY BANK CORPORATION | 7,108,000,000.00 | 740,210,526.40 | 960.27% |
UNIVERSITY SAVINGS BANK INC | 425,628,809.59 | 56,256,741.84 | 756.58% |
COMSAVINGS BANK | 1,275,879,789.57 | 180,956,095.42 | 705.08% |
METROPOLITAN BANK & TRUST CO | 20,381,938,722.63 | 2,923,573,649.37 | 697.16% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 5,741,683,988.58 | 642.08% |
UCPB SAVINGS BANK | 1,482,639,304.35 | 238,181,901.40 | 622.48% |
BANK OF COMMERCE | 24,857,960,000.00 | 4,016,356,222.98 | 618.92% |
DUMAGUETE CITY DEVELOPMENT BANK INC | 165,608,000.00 | 27,051,197.57 | 612.20% |
BUSINESS AND CONSUMERS BANK (A DB) | 100,032,724.08 | 16,543,047.39 | 604.68% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 189,946,399.46 | 32,495,043.40 | 584.54% |
PHILIPPINE NATIONAL BANK | 45,761,897,524.58 | 10,326,705,113.23 | 443.14% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 2,058,816,470.70 | 433.04% |
PRIDE STAR DEVELOPMENT BANK INC | 35,384,598.67 | 8,634,935.83 | 409.78% |
PHILIPPINE SAVINGS BANK | 13,051,496,508.14 | 3,746,195,124.94 | 348.39% |
ASIA UNITED BANK CORPORATION | 4,868,617,040.63 | 1,484,724,998.75 | 327.91% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 426,874,861.97 | 317.43% |
PHILIPPINE TRUST COMPANY | 3,574,288,585.83 | 1,147,542,163.55 | 311.47% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 949,372,884.50 | 307,337,266.81 | 308.90% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,327,617.41 | 6,021,526.16 | 304.37% |
PHILIPPINE VETERANS BANK | 3,379,645,500.37 | 1,126,133,863.31 | 300.11% |
FARMERS SAVINGS & LOAN BANK INC | 121,927,770.99 | 41,146,586.00 | 296.33% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 117,167,791.14 | 296.06% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 35,501,329.21 | 288.44% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,469,345.60 | 1,239,886.20 | 279.81% |
WORLD PARTNERS BANK (A THRIFT BANK) | 237,295,083.50 | 88,154,241.39 | 269.18% |
METRO CEBU PUBLIC SAVINGS BANK | 24,627,760.91 | 9,259,450.09 | 265.97% |
BANK OF THE PHILIPPINE ISLANDS | 18,961,198,735.37 | 7,459,301,933.47 | 254.20% |
RIZAL COMMERCIAL BANKING CORP | 9,477,060,505.63 | 3,813,174,399.56 | 248.53% |
CHINA BANK SAVINGS INC | 543,117,062.40 | 226,221,032.39 | 240.08% |
UNION BANK OF THE PHILIPPINES | 22,163,722,063.62 | 9,281,609,151.50 | 238.79% |
CORDILLERA SAVINGS BANK INC | 38,955,630.21 | 16,690,807.03 | 233.40% |
CHINA BANKING CORPORATION | 10,892,647,673.90 | 4,718,030,496.01 | 230.87% |
LAND BANK OF THE PHILIPPINES | 20,683,545,365.77 | 9,217,532,081.02 | 224.39% |
TOWER DEVELOPMENT BANK | 20,244,894.57 | 9,855,607.32 | 205.41% |
PHILIPPINE RESOURCES SAVINGS BANKING | 1,048,915,147.74 | 530,093,760.55 | 197.87% |
PRODUCERS SAVINGS BANK CORPORATION | 399,820,701.03 | 202,521,421.54 | 197.42% |
PLANTERS DEVELOPMENT BANK | 6,099,092,824.88 | 3,305,372,801.44 | 184.52% |
THE REAL BANK (A THRIFT BANK) INC | 6,748,046,322.16 | 3,676,265,796.17 | 183.56% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 1,427,778,000.00 | 782,703,074.20 | 182.42% |
EQUICOM SAVINGS BANK INC | 410,870,229.58 | 226,206,776.15 | 181.63% |
LIFE SAVINGS BANK INC | 20,016,071.21 | 11,066,411.65 | 180.87% |
BDO UNIBANK INC | 40,241,256,099.54 | 22,361,024,360.61 | 179.96% |
FIRST CONSOLIDATED BANK INC (A PDB) | 778,906,653.23 | 439,534,380.11 | 177.21% |
BPI FAMILY SAVINGS BANK INC | 7,979,322,145.42 | 4,587,952,154.71 | 173.92% |
PHILIPPINE POSTAL SAVINGS BANK INC | 625,851,100.05 | 365,776,413.52 | 171.10% |
HSBC SAVINGS BANK (PHILS) INC | 218,753,608.51 | 130,672,215.76 | 167.41% |
CENTURY SAVINGS BANK CORPORATION | 67,123,782.43 | 40,262,101.54 | 166.72% |
OPTIMUM DEVELOPMENT BANK INC | 23,022,356.80 | 13,837,575.70 | 166.38% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 713,515,607.33 | 166.05% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 144,208,348.75 | 90,697,987.61 | 159.00% |
MARITIME SAVINGS BANK CORPORATION | 32,860,991.81 | 21,081,945.79 | 155.87% |
MAYBANK PHILIPPINES INC | 1,676,979,661.20 | 1,086,048,088.92 | 154.41% |
SECURITY BANK SAVINGS CORPORATION | 1,182,987,585.01 | 771,924,973.74 | 153.25% |
CTBC BANK (PHILIPPINES) CORPORATION | 414,894,799.82 | 293,736,854.58 | 141.25% |
DEVELOPMENT BANK OF THE PHILIPPINES | 7,751,266,591.60 | 5,747,728,689.61 | 134.86% |
ANZ BANKING GROUP LTD | 31,324,888.26 | 23,339,114.85 | 134.22% |
EAST WEST BANKING CORP | 5,919,925,900.00 | 4,729,518,467.90 | 125.17% |
HONGKONG & SHANGHAI BANKING CORPORATION | 890,262,857.67 | 719,591,328.75 | 123.72% |
UNITED OVERSEAS BANK PHILIPPINES | 770,619,709.52 | 664,875,061.65 | 115.90% |
BPI DIRECT SAVINGS BANK INC | 175,184,243.39 | 154,650,566.46 | 113.28% |
STANDARD CHARTERED BANK | 1,188,901,323.71 | 1,073,584,225.34 | 110.74% |
CITIBANK SAVINGS INC | 2,937,759,064.98 | 2,725,163,565.91 | 107.80% |
BPI GLOBE BANKO INC A SAVINGS BANK | 195,005,392.86 | 184,972,059.46 | 105.42% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 20,025,074.33 | 19,265,232.54 | 103.94% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 40,236,948.19 | 103.54% |
SAMPAGUITA SAVINGS BANK INC | 25,001,275.29 | 24,566,592.56 | 101.77% |
LEMERY SAVINGS & LOAN BANK, INC. | 8,625,579.31 | 8,615,082.76 | 100.12% |
BANGKOK BANK PUBLIC CO LTD | 5,034,155.55 | 5,034,155.55 | 100.00% |
BATAAN SAVINGS AND LOAN BANK | 2,770,214.85 | 2,770,214.85 | 100.00% |
HIYAS BANKING CORPORATION | 31,733,803.62 | 31,733,803.62 | 100.00% |
JP MORGAN CHASE BANK NATIONAL ASSOCIATION | 734,885.22 | 734,885.22 | 100.00% |
MALASIQUI PROGRESSIVE SLB, INC | 17,567,906.25 | 17,567,906.25 | 100.00% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 86,081,823.47 | 86,081,823.47 | 100.00% |
SUN SAVINGS BANK INC | 6,150,546.57 | 6,245,559.79 | 98.48% |
ALLIED SAVINGS BANK | 378,134,572.81 | 427,675,246.13 | 88.42% |
LUZON DEVELOPMENT BANK | 190,234,732.35 | 219,963,748.95 | 86.48% |
SILANGAN SAVINGS & LOAN BANK INC | 16,030,879.99 | 19,342,509.99 | 82.88% |
CITY SAVINGS BANK INC | 159,231,185.28 | 248,807,968.00 | 64.00% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 127,076,803.11 | 62.12% |
PHIL BANK OF COMMUNICATIONS | 75,880,403.95 | 1,331,723,088.72 | 5.70% |
CARD SME BANK INC A THRIFT BANK | 0.00 | 18,325,325.68 | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 47,071,949.74 | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 121,575,888.04 | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 3,144,449.34 | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 1,195,287.06 | 0.00% |
NORTHPOINT DEV'T BANK INC | 0.00 | 41,343,785.62 | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 5,392,641.51 | 0.00% |
THE PALAWAN BANK (PALAWAN DB) INC | 0.00 | 12,816,840.35 | 0.00% |
BANK OF CHINA LIMITED-MANILA BRANCH | 5,360,742,006.36 | 0.00 | NA |
BDO ELITE SAVINGS BANK INC | 0.00 | 0.00 | NA |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 0.00 | NA |
DEUTSCHE BANK AG | 926,375,764.86 | 0.00 | NA |
ISLA BANK (A THRIFT BANK) INC | 33,211,214.70 | 0.00 | NA |
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD | 670,070,516.60 | 0.00 | NA |
MIZUHO BANK LTD - MANILA BRANCH | 926,655,582.43 | 0.00 | NA |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 118,261,613.40 | 0.00 | NA |
Grand Total | 378,321,974,515.30 | 129,096,349,834.78 | 293.05% |
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 37.81% of the Php 1.001 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2013.
By this measure, the level of "Classified Loans and other Risky Assets" amounts to 37.81% of the Php 1.001 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2013.
Philippine Banking System | |||
Classified Loans as % of Total Capital Cushion | |||
September 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 | 6,748,046,322.16 | 403,897,117.56 | 1670.73% |
BANK OF CHINA LIMITED-MANILA BRANCH | 5,360,742,006.36 | 677,275,685.72 | 791.52% |
VILLAGE BANK INC (A THRIFT BANK) | 653,169,873.68 | 86,744,428.80 | 752.98% |
ILOILO CITY DEVELOPMENT BANK | 328,357,308.71 | 74,068,482.77 | 443.32% |
COMSAVINGS BANK | 1,275,879,789.57 | 324,037,558.21 | 393.74% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 12,441,512,075.45 | 296.31% |
INTER-ASIA DEVELOPMENT BANK | 151,247,965.90 | 59,391,398.86 | 254.66% |
UNIVERSITY SAVINGS BANK INC | 425,628,809.59 | 237,367,686.97 | 179.31% |
WORLD PARTNERS BANK (A THRIFT BANK) | 237,295,083.50 | 168,429,784.45 | 140.89% |
PLANTERS DEVELOPMENT BANK | 6,099,092,824.88 | 4,435,504,297.84 | 137.51% |
CITIBANK, N.A. | 17,164,250,000.00 | 12,988,072,447.69 | 132.15% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 77,646,386.19 | 131.88% |
BANK OF COMMERCE | 24,857,960,000.00 | 18,938,602,086.54 | 131.26% |
BUSINESS AND CONSUMERS BANK (A DB) | 100,032,724.08 | 83,997,066.23 | 119.09% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 8,712,884,410.13 | 102.32% |
FARMERS SAVINGS & LOAN BANK INC | 121,927,770.99 | 120,445,949.31 | 101.23% |
KOREA EXCHANGE BANK | 565,189,489.03 | 590,448,140.37 | 95.72% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 86,081,823.47 | 99,188,170.54 | 86.79% |
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD | 670,070,516.60 | 812,000,716.20 | 82.52% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 949,372,884.50 | 1,231,401,672.29 | 77.10% |
EQUICOM SAVINGS BANK INC | 410,870,229.58 | 547,774,008.61 | 75.01% |
DUMAGUETE CITY DEVELOPMENT BANK INC | 165,608,000.00 | 223,461,033.96 | 74.11% |
PHILIPPINE SAVINGS BANK | 13,051,496,508.14 | 17,859,204,813.32 | 73.08% |
CITIBANK SAVINGS INC | 2,937,759,064.98 | 4,176,845,927.32 | 70.33% |
PHILIPPINE POSTAL SAVINGS BANK INC | 625,851,100.05 | 911,995,295.61 | 68.62% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 515,251,334.74 | 67.32% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 1,427,778,000.00 | 2,127,596,805.78 | 67.11% |
SECURITY BANK SAVINGS CORPORATION | 1,182,987,585.01 | 1,769,284,078.33 | 66.86% |
PHILIPPINE RESOURCES SAVINGS BANKING | 1,048,915,147.74 | 1,571,917,417.14 | 66.73% |
DEUTSCHE BANK AG | 926,375,764.86 | 1,491,605,872.17 | 62.11% |
CHINA BANK SAVINGS INC | 543,117,062.40 | 959,961,776.24 | 56.58% |
UCPB SAVINGS BANK | 1,482,639,304.35 | 2,625,532,458.92 | 56.47% |
MIZUHO BANK LTD - MANILA BRANCH | 926,655,582.43 | 1,644,448,818.10 | 56.35% |
UNITED OVERSEAS BANK PHILIPPINES | 770,619,709.52 | 1,370,055,770.87 | 56.25% |
PHILIPPINE NATIONAL BANK | 45,761,897,524.58 | 83,697,635,640.24 | 54.68% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 144,208,348.75 | 286,197,997.27 | 50.39% |
PHILIPPINE VETERANS BANK | 3,379,645,500.37 | 7,003,198,360.29 | 48.26% |
PRIDE STAR DEVELOPMENT BANK INC | 35,384,598.67 | 74,397,380.79 | 47.56% |
MARITIME SAVINGS BANK CORPORATION | 32,860,991.81 | 69,581,122.89 | 47.23% |
UNION BANK OF THE PHILIPPINES | 22,163,722,063.62 | 50,253,147,440.40 | 44.10% |
BPI FAMILY SAVINGS BANK INC | 7,979,322,145.42 | 18,350,578,929.29 | 43.48% |
STANDARD CHARTERED BANK | 1,188,901,323.71 | 2,746,581,696.80 | 43.29% |
BANK ONE SAVINGS AND TRUST CORP. | 205,058,819.72 | 535,201,269.17 | 38.31% |
METRO CEBU PUBLIC SAVINGS BANK | 24,627,760.91 | 64,737,773.49 | 38.04% |
LUZON DEVELOPMENT BANK | 190,234,732.35 | 501,040,949.74 | 37.97% |
PRODUCERS SAVINGS BANK CORPORATION | 399,820,701.03 | 1,095,533,079.50 | 36.50% |
LAND BANK OF THE PHILIPPINES | 20,683,545,365.77 | 57,010,913,487.30 | 36.28% |
ALLIED SAVINGS BANK | 378,134,572.81 | 1,046,384,945.13 | 36.14% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 117,517,088.00 | 35.45% |
CORDILLERA SAVINGS BANK INC | 38,955,630.21 | 111,967,588.52 | 34.79% |
FIRST CONSOLIDATED BANK INC (A PDB) | 778,906,653.23 | 2,275,152,006.57 | 34.24% |
BPI GLOBE BANKO INC A SAVINGS BANK | 195,005,392.86 | 578,113,217.91 | 33.73% |
SAMPAGUITA SAVINGS BANK INC | 25,001,275.29 | 79,121,079.46 | 31.60% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,327,617.41 | 58,343,632.25 | 31.41% |
SILANGAN SAVINGS & LOAN BANK INC | 16,030,879.99 | 51,738,430.87 | 30.98% |
LIFE SAVINGS BANK INC | 20,016,071.21 | 66,353,767.56 | 30.17% |
MALASIQUI PROGRESSIVE SLB, INC | 17,567,906.25 | 58,975,324.14 | 29.79% |
EAST WEST BANKING CORP | 5,919,925,900.00 | 20,596,543,042.02 | 28.74% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 189,946,399.46 | 684,569,581.75 | 27.75% |
ASIA UNITED BANK CORPORATION | 4,868,617,040.63 | 18,733,147,083.25 | 25.99% |
CHINA BANKING CORPORATION | 10,892,647,673.90 | 43,074,933,075.29 | 25.29% |
BDO UNIBANK INC | 40,241,256,099.54 | 171,664,281,366.41 | 23.44% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 6,083,919,644.63 | 22.27% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 20,025,074.33 | 91,281,109.97 | 21.94% |
DEVELOPMENT BANK OF THE PHILIPPINES | 7,751,266,591.60 | 36,963,006,438.33 | 20.97% |
RIZAL COMMERCIAL BANKING CORP | 9,477,060,505.63 | 45,470,229,139.28 | 20.84% |
PHILIPPINE TRUST COMPANY | 3,574,288,585.83 | 18,423,173,545.16 | 19.40% |
BANK OF THE PHILIPPINE ISLANDS | 18,961,198,735.37 | 98,934,355,228.89 | 19.17% |
HIYAS BANKING CORPORATION | 31,733,803.62 | 169,268,776.65 | 18.75% |
MAYBANK PHILIPPINES INC | 1,676,979,661.20 | 9,008,257,701.36 | 18.62% |
SECURITY BANK CORPORATION | 7,108,000,000.00 | 38,628,238,040.19 | 18.40% |
BPI DIRECT SAVINGS BANK INC | 175,184,243.39 | 952,277,854.73 | 18.40% |
METROPOLITAN BANK & TRUST CO | 20,381,938,722.63 | 111,999,909,833.93 | 18.20% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 437,282,929.29 | 18.05% |
TOWER DEVELOPMENT BANK | 20,244,894.57 | 114,305,443.14 | 17.71% |
HONGKONG & SHANGHAI BANKING CORPORATION | 890,262,857.67 | 5,114,880,317.76 | 17.41% |
INTERNATIONALE NEDERLANDEN GROEP BK | 447,955,000.00 | 2,667,503,858.26 | 16.79% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 7,708,104,210.04 | 15.37% |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 5,281,205,927.12 | 12.16% |
LEMERY SAVINGS & LOAN BANK, INC. | 8,625,579.31 | 71,094,084.23 | 12.13% |
HSBC SAVINGS BANK (PHILS) INC | 218,753,608.51 | 2,747,492,714.64 | 7.96% |
CENTURY SAVINGS BANK CORPORATION | 67,123,782.43 | 895,985,103.05 | 7.49% |
CTBC BANK (PHILIPPINES) CORPORATION | 414,894,799.82 | 6,621,899,085.40 | 6.27% |
CITY SAVINGS BANK INC | 159,231,185.28 | 2,565,461,612.04 | 6.21% |
SUN SAVINGS BANK INC | 6,150,546.57 | 106,281,667.66 | 5.79% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 118,261,613.40 | 2,278,627,961.84 | 5.19% |
ISLA BANK (A THRIFT BANK) INC | 33,211,214.70 | 639,992,124.71 | 5.19% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,469,345.60 | 84,145,795.60 | 4.12% |
BATAAN SAVINGS AND LOAN BANK | 2,770,214.85 | 71,545,429.60 | 3.87% |
OPTIMUM DEVELOPMENT BANK INC | 23,022,356.80 | 721,724,742.05 | 3.19% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 13,972,461.61 | 445,966,783.26 | 3.13% |
PHIL BANK OF COMMUNICATIONS | 75,880,403.95 | 4,791,505,760.04 | 1.58% |
ANZ BANKING GROUP LTD | 31,324,888.26 | 2,474,333,079.88 | 1.27% |
BANK OF AMERICA N.A. | 5,534,000.00 | 607,196,709.20 | 0.91% |
BANGKOK BANK PUBLIC CO LTD | 5,034,155.55 | 1,249,396,547.00 | 0.40% |
JP MORGAN CHASE BANK NATIONAL ASSOCIATION | 734,885.22 | 1,403,159,400.00 | 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 | 241,492,678.42 | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 806,301,387.22 | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 227,755,866.40 | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 475,529,722.81 | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 55,912,948.55 | 0.00% |
NORTHPOINT DEV'T BANK INC | 0.00 | 83,322,600.83 | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 79,443,628.36 | 0.00% |
THE PALAWAN BANK (PALAWAN DB) INC | 0.00 | 27,180,689.84 | 0.00% |
Grand Total | 378,321,974,515.30 | 1,000,610,234,493.81 | 37.81% |
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 four 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 five 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 four banks (severely affected banks highlighted in yellow).
- The Real Bank (167.07% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (79.15% reduction in Total Capital Cushion)
- Village SLA, Inc. (75.30% reduction in Total Capital Cushion)
- Iloilo City Development Bank (44.33% reduction in Total Capital Cushion)
- Comsavings Bank (39.37% reduction in Total Capital Cushion)
- The Real Bank (334.15% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (158.30% reduction in Total Capital Cushion)
- Village SLA, Inc. (150.60% reduction in Total Capital Cushion)
- Iloilo City Development Bank (88.66% reduction in Total Capital Cushion)
- Comsavings Bank (78.75% reduction in Total Capital Cushion)
- United Coconut Planters Bank (59.26% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (50.93% reduction in Total Capital Cushion)
- University Savings Bank (35.86% reduction in Total Capital Cushion)
- The Real Bank (501.22% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (237.45% reduction in Total Capital Cushion)
- Village SLA, Inc. (225.89% reduction in Total Capital Cushion)
- Iloilo City Development Bank (132.99% reduction in Total Capital Cushion)
- Comsavings Bank (118.12% reduction in Total Capital Cushion)
- United Coconut Planters Bank (88.89% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (76.40% reduction in Total Capital Cushion)
- University Savings Bank (53.79% reduction in Total Capital Cushion)
- World Partners Bank (42.27% reduction in Total Capital Cushion)
- Planters Development Bank (41.25% reduction in Total Capital Cushion)
- Citibank N.A. (39.65% reduction in Total Capital Cushion)
- Bataan Development Bank (39.56% reduction in Total Capital Cushion)
- Bank of Commerce (39.38% reduction in Total Capital Cushion)
- Business and Consumers Bank (35.73% reduction in Total Capital Cushion)
- RCBC Savings Bank (30.70% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank Inc (30.37% reduction in Total Capital Cushion)
A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of seven banks and severely affect (reduce by 30% or more) the Total Capital Cushion of fourteen more banks:
- The Real Bank (668.29% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (316.61% reduction in Total Capital Cushion)
- Village SLA, Inc. (301.19% reduction in Total Capital Cushion)
- Iloilo City Development Bank (177.33% reduction in Total Capital Cushion)
- Comsavings Bank (157.50% reduction in Total Capital Cushion)
- United Coconut Planters Bank (118.53% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (101.87% reduction in Total Capital Cushion)
- University Savings Bank (71.72% reduction in Total Capital Cushion)
- World Partners Bank (56.35% reduction in Total Capital Cushion)
- Planters Development Bank (55.00% reduction in Total Capital Cushion)
- Citibank, N.A. (52.86% reduction in Total Capital Cushion)
- Bataan Development Bank (52.75% reduction in Total Capital Cushion)
- Bank of Commerce (52.50% reduction in Total Capital Cushion)
- Business & Consumers Bank (47.64% reduction in Total Capital Cushion)
- RCBC Savings Bank (40.93% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank (40.49% reduction in Total Capital Cushion)
- Korea Exchange Bank (38.29% reduction in Total Capital Cushion)
- Opportunity Kauswagan Bank, Inc. (34.71% reduction in Total Capital Cushion)
- Mega International Commercial Bank Co., Ltd. (33.01% reduction in Total Capital Cushion)
- Malayan Bank Savings & Mortgage Bank (30.84% reduction in Total Capital Cushion)
- Equicom Savings Bank Inc. (30.00% reduction in Total Capital Cushion)
A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of seven banks and severely affect (reduce by 30% or more) the Total Capital Cushion of twenty-three more banks:
- The Real Bank (835.37% reduction in Total Capital Cushion)
- Bank of China Limited - Manila Branch (395.76% reduction in Total Capital Cushion)
- Village SLA, Inc. (376.49% reduction in Total Capital Cushion)
- Iloilo City Development Bank (221.66% reduction in Total Capital Cushion)
- Comsavings Bank (196.87% reduction in Total Capital Cushion)
- United Coconut Planters Bank (148.16% reduction in Total Capital Cushion)
- Inter-Asia Development Bank (127.33% reduction in Total Capital Cushion)
- University Savings Bank (89.66% reduction in Total Capital Cushion)
- World Partners Bank (70.44% reduction in Total Capital Cushion)
- Planters Development Bank (68.75% reduction in Total Capital Cushion)
- Citibank, N.A. (66.08% reduction in Total Capital Cushion)
- Bataan Development Bank (65.94% reduction in Total Capital Cushion)
- Bank of Commerce (65.63% reduction in Total Capital Cushion)
- Business & Consumers Bank (59.55% reduction in Total Capital Cushion)
- RCBC Savings Bank (51.16% reduction in Total Capital Cushion)
- Farmers Savings & Loan Bank (50.62% reduction in Total Capital Cushion)
- Korea Exchange Bank (47.86% reduction in Total Capital Cushion)
- Opportunity Kauswagan Bank, Inc. (43.39% reduction in Total Capital Cushion)
- Mega International Commercial Bank Co., Ltd. (41.26% reduction in Total Capital Cushion)
- Malayan Bank Savings & Mortgage Bank (38.55% reduction in Total Capital Cushion)
- Equicom Savings Bank Inc. (37.50% reduction in Total Capital Cushion)
- Dumaguete City Development Bank (37.06% reduction in Total Capital Cushion)
- Philippine Savings Bank (36.54% reduction in Total Capital Cushion)
- Citibank Savings Inc. (34.81% reduction in Total Capital Cushion)
- Philippine Postal Savings Bank Inc. (34.31% reduction in Total Capital Cushion)
- Tong Yang Savings Bank Inc (33.66% reduction in Total Capital Cushion)
- Sterling Bank of Asia Inc. (33.55% reduction in Total Capital Cushion)
- Security Bank Savings Corporation (33.43% reduction in Total Capital Cushion)
- Philippine Resources Savings Banking (33.36% reduction in Total Capital Cushion)
- Deutsche Bank AG (31.05% 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 September 30, 2013". Moreover, their capital can be overstated. See a previous blog post "Overstated Capital of Philippine Banks as of September 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 | ||||||||
September 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 | 6,748,046,322.16 | 403,897,117.56 | 1670.73% | 167.07% | 334.15% | 501.22% | 668.29% | 835.37% |
BANK OF CHINA LIMITED-MANILA BRANCH | 5,360,742,006.36 | 677,275,685.72 | 791.52% | 79.15% | 158.30% | 237.45% | 316.61% | 395.76% |
VILLAGE BANK INC (A THRIFT BANK) | 653,169,873.68 | 86,744,428.80 | 752.98% | 75.30% | 150.60% | 225.89% | 301.19% | 376.49% |
ILOILO CITY DEVELOPMENT BANK | 328,357,308.71 | 74,068,482.77 | 443.32% | 44.33% | 88.66% | 132.99% | 177.33% | 221.66% |
COMSAVINGS BANK | 1,275,879,789.57 | 324,037,558.21 | 393.74% | 39.37% | 78.75% | 118.12% | 157.50% | 196.87% |
UNITED COCONUT PLANTERS BANK | 36,866,000,000.00 | 12,441,512,075.45 | 296.31% | 29.63% | 59.26% | 88.89% | 118.53% | 148.16% |
INTER-ASIA DEVELOPMENT BANK | 151,247,965.90 | 59,391,398.86 | 254.66% | 25.47% | 50.93% | 76.40% | 101.87% | 127.33% |
UNIVERSITY SAVINGS BANK INC | 425,628,809.59 | 237,367,686.97 | 179.31% | 17.93% | 35.86% | 53.79% | 71.72% | 89.66% |
WORLD PARTNERS BANK (A THRIFT BANK) | 237,295,083.50 | 168,429,784.45 | 140.89% | 14.09% | 28.18% | 42.27% | 56.35% | 70.44% |
PLANTERS DEVELOPMENT BANK | 6,099,092,824.88 | 4,435,504,297.84 | 137.51% | 13.75% | 27.50% | 41.25% | 55.00% | 68.75% |
CITIBANK, N.A. | 17,164,250,000.00 | 12,988,072,447.69 | 132.15% | 13.22% | 26.43% | 39.65% | 52.86% | 66.08% |
BATAAN DEVELOPMENT BANK | 102,400,000.00 | 77,646,386.19 | 131.88% | 13.19% | 26.38% | 39.56% | 52.75% | 65.94% |
BANK OF COMMERCE | 24,857,960,000.00 | 18,938,602,086.54 | 131.26% | 13.13% | 26.25% | 39.38% | 52.50% | 65.63% |
BUSINESS AND CONSUMERS BANK (A DB) | 100,032,724.08 | 83,997,066.23 | 119.09% | 11.91% | 23.82% | 35.73% | 47.64% | 59.55% |
RCBC SAVINGS BANK INC | 8,915,418,143.00 | 8,712,884,410.13 | 102.32% | 10.23% | 20.46% | 30.70% | 40.93% | 51.16% |
FARMERS SAVINGS & LOAN BANK INC | 121,927,770.99 | 120,445,949.31 | 101.23% | 10.12% | 20.25% | 30.37% | 40.49% | 50.62% |
KOREA EXCHANGE BANK | 565,189,489.03 | 590,448,140.37 | 95.72% | 9.57% | 19.14% | 28.72% | 38.29% | 47.86% |
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK) | 86,081,823.47 | 99,188,170.54 | 86.79% | 8.68% | 17.36% | 26.04% | 34.71% | 43.39% |
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD | 670,070,516.60 | 812,000,716.20 | 82.52% | 8.25% | 16.50% | 24.76% | 33.01% | 41.26% |
MALAYAN BANK SAVINGS AND MORT BANK INC | 949,372,884.50 | 1,231,401,672.29 | 77.10% | 7.71% | 15.42% | 23.13% | 30.84% | 38.55% |
EQUICOM SAVINGS BANK INC | 410,870,229.58 | 547,774,008.61 | 75.01% | 7.50% | 15.00% | 22.50% | 30.00% | 37.50% |
DUMAGUETE CITY DEVELOPMENT BANK INC | 165,608,000.00 | 223,461,033.96 | 74.11% | 7.41% | 14.82% | 22.23% | 29.64% | 37.06% |
PHILIPPINE SAVINGS BANK | 13,051,496,508.14 | 17,859,204,813.32 | 73.08% | 7.31% | 14.62% | 21.92% | 29.23% | 36.54% |
CITIBANK SAVINGS INC | 2,937,759,064.98 | 4,176,845,927.32 | 70.33% | 7.03% | 14.07% | 21.10% | 28.13% | 35.17% |
PHILIPPINE POSTAL SAVINGS BANK INC | 625,851,100.05 | 911,995,295.61 | 68.62% | 6.86% | 13.72% | 20.59% | 27.45% | 34.31% |
TONG YANG SAVINGS BANK INC | 346,887,404.45 | 515,251,334.74 | 67.32% | 6.73% | 13.46% | 20.20% | 26.93% | 33.66% |
STERLING BANK OF ASIA INC (A SAVINGS BANK) | 1,427,778,000.00 | 2,127,596,805.78 | 67.11% | 6.71% | 13.42% | 20.13% | 26.84% | 33.55% |
SECURITY BANK SAVINGS CORPORATION | 1,182,987,585.01 | 1,769,284,078.33 | 66.86% | 6.69% | 13.37% | 20.06% | 26.75% | 33.43% |
PHILIPPINE RESOURCES SAVINGS BANKING | 1,048,915,147.74 | 1,571,917,417.14 | 66.73% | 6.67% | 13.35% | 20.02% | 26.69% | 33.36% |
DEUTSCHE BANK AG | 926,375,764.86 | 1,491,605,872.17 | 62.11% | 6.21% | 12.42% | 18.63% | 24.84% | 31.05% |
CHINA BANK SAVINGS INC | 543,117,062.40 | 959,961,776.24 | 56.58% | 5.66% | 11.32% | 16.97% | 22.63% | 28.29% |
UCPB SAVINGS BANK | 1,482,639,304.35 | 2,625,532,458.92 | 56.47% | 5.65% | 11.29% | 16.94% | 22.59% | 28.24% |
MIZUHO BANK LTD - MANILA BRANCH | 926,655,582.43 | 1,644,448,818.10 | 56.35% | 5.64% | 11.27% | 16.91% | 22.54% | 28.18% |
UNITED OVERSEAS BANK PHILIPPINES | 770,619,709.52 | 1,370,055,770.87 | 56.25% | 5.62% | 11.25% | 16.87% | 22.50% | 28.12% |
PHILIPPINE NATIONAL BANK | 45,761,897,524.58 | 83,697,635,640.24 | 54.68% | 5.47% | 10.94% | 16.40% | 21.87% | 27.34% |
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) | 144,208,348.75 | 286,197,997.27 | 50.39% | 5.04% | 10.08% | 15.12% | 20.16% | 25.19% |
PHILIPPINE VETERANS BANK | 3,379,645,500.37 | 7,003,198,360.29 | 48.26% | 4.83% | 9.65% | 14.48% | 19.30% | 24.13% |
PRIDE STAR DEVELOPMENT BANK INC | 35,384,598.67 | 74,397,380.79 | 47.56% | 4.76% | 9.51% | 14.27% | 19.02% | 23.78% |
MARITIME SAVINGS BANK CORPORATION | 32,860,991.81 | 69,581,122.89 | 47.23% | 4.72% | 9.45% | 14.17% | 18.89% | 23.61% |
UNION BANK OF THE PHILIPPINES | 22,163,722,063.62 | 50,253,147,440.40 | 44.10% | 4.41% | 8.82% | 13.23% | 17.64% | 22.05% |
BPI FAMILY SAVINGS BANK INC | 7,979,322,145.42 | 18,350,578,929.29 | 43.48% | 4.35% | 8.70% | 13.04% | 17.39% | 21.74% |
STANDARD CHARTERED BANK | 1,188,901,323.71 | 2,746,581,696.80 | 43.29% | 4.33% | 8.66% | 12.99% | 17.31% | 21.64% |
BANK ONE SAVINGS AND TRUST CORP. | 205,058,819.72 | 535,201,269.17 | 38.31% | 3.83% | 7.66% | 11.49% | 15.33% | 19.16% |
METRO CEBU PUBLIC SAVINGS BANK | 24,627,760.91 | 64,737,773.49 | 38.04% | 3.80% | 7.61% | 11.41% | 15.22% | 19.02% |
LUZON DEVELOPMENT BANK | 190,234,732.35 | 501,040,949.74 | 37.97% | 3.80% | 7.59% | 11.39% | 15.19% | 18.98% |
PRODUCERS SAVINGS BANK CORPORATION | 399,820,701.03 | 1,095,533,079.50 | 36.50% | 3.65% | 7.30% | 10.95% | 14.60% | 18.25% |
LAND BANK OF THE PHILIPPINES | 20,683,545,365.77 | 57,010,913,487.30 | 36.28% | 3.63% | 7.26% | 10.88% | 14.51% | 18.14% |
ALLIED SAVINGS BANK | 378,134,572.81 | 1,046,384,945.13 | 36.14% | 3.61% | 7.23% | 10.84% | 14.45% | 18.07% |
PAMPANGA DEVELOPMENT BANK | 41,660,931.67 | 117,517,088.00 | 35.45% | 3.55% | 7.09% | 10.64% | 14.18% | 17.73% |
CORDILLERA SAVINGS BANK INC | 38,955,630.21 | 111,967,588.52 | 34.79% | 3.48% | 6.96% | 10.44% | 13.92% | 17.40% |
FIRST CONSOLIDATED BANK INC (A PDB) | 778,906,653.23 | 2,275,152,006.57 | 34.24% | 3.42% | 6.85% | 10.27% | 13.69% | 17.12% |
BPI GLOBE BANKO INC A SAVINGS BANK | 195,005,392.86 | 578,113,217.91 | 33.73% | 3.37% | 6.75% | 10.12% | 13.49% | 16.87% |
SAMPAGUITA SAVINGS BANK INC | 25,001,275.29 | 79,121,079.46 | 31.60% | 3.16% | 6.32% | 9.48% | 12.64% | 15.80% |
QUEZON COCONUT BANK INC (A THRIFT BANK) | 18,327,617.41 | 58,343,632.25 | 31.41% | 3.14% | 6.28% | 9.42% | 12.57% | 15.71% |
SILANGAN SAVINGS & LOAN BANK INC | 16,030,879.99 | 51,738,430.87 | 30.98% | 3.10% | 6.20% | 9.30% | 12.39% | 15.49% |
LIFE SAVINGS BANK INC | 20,016,071.21 | 66,353,767.56 | 30.17% | 3.02% | 6.03% | 9.05% | 12.07% | 15.08% |
MALASIQUI PROGRESSIVE SLB, INC | 17,567,906.25 | 58,975,324.14 | 29.79% | 2.98% | 5.96% | 8.94% | 11.92% | 14.89% |
EAST WEST BANKING CORP | 5,919,925,900.00 | 20,596,543,042.02 | 28.74% | 2.87% | 5.75% | 8.62% | 11.50% | 14.37% |
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK | 189,946,399.46 | 684,569,581.75 | 27.75% | 2.77% | 5.55% | 8.32% | 11.10% | 13.87% |
ASIA UNITED BANK CORPORATION | 4,868,617,040.63 | 18,733,147,083.25 | 25.99% | 2.60% | 5.20% | 7.80% | 10.40% | 12.99% |
CHINA BANKING CORPORATION | 10,892,647,673.90 | 43,074,933,075.29 | 25.29% | 2.53% | 5.06% | 7.59% | 10.12% | 12.64% |
BDO UNIBANK INC | 40,241,256,099.54 | 171,664,281,366.41 | 23.44% | 2.34% | 4.69% | 7.03% | 9.38% | 11.72% |
ROBINSONS BANK CORPORATION | 1,355,020,000.00 | 6,083,919,644.63 | 22.27% | 2.23% | 4.45% | 6.68% | 8.91% | 11.14% |
DUNGGANON BANK (A MICROFINANCE THRIFT | 20,025,074.33 | 91,281,109.97 | 21.94% | 2.19% | 4.39% | 6.58% | 8.78% | 10.97% |
DEVELOPMENT BANK OF THE PHILIPPINES | 7,751,266,591.60 | 36,963,006,438.33 | 20.97% | 2.10% | 4.19% | 6.29% | 8.39% | 10.49% |
RIZAL COMMERCIAL BANKING CORP | 9,477,060,505.63 | 45,470,229,139.28 | 20.84% | 2.08% | 4.17% | 6.25% | 8.34% | 10.42% |
PHILIPPINE TRUST COMPANY | 3,574,288,585.83 | 18,423,173,545.16 | 19.40% | 1.94% | 3.88% | 5.82% | 7.76% | 9.70% |
BANK OF THE PHILIPPINE ISLANDS | 18,961,198,735.37 | 98,934,355,228.89 | 19.17% | 1.92% | 3.83% | 5.75% | 7.67% | 9.58% |
HIYAS BANKING CORPORATION | 31,733,803.62 | 169,268,776.65 | 18.75% | 1.87% | 3.75% | 5.62% | 7.50% | 9.37% |
MAYBANK PHILIPPINES INC | 1,676,979,661.20 | 9,008,257,701.36 | 18.62% | 1.86% | 3.72% | 5.58% | 7.45% | 9.31% |
SECURITY BANK CORPORATION | 7,108,000,000.00 | 38,628,238,040.19 | 18.40% | 1.84% | 3.68% | 5.52% | 7.36% | 9.20% |
BPI DIRECT SAVINGS BANK INC | 175,184,243.39 | 952,277,854.73 | 18.40% | 1.84% | 3.68% | 5.52% | 7.36% | 9.20% |
METROPOLITAN BANK & TRUST CO | 20,381,938,722.63 | 111,999,909,833.93 | 18.20% | 1.82% | 3.64% | 5.46% | 7.28% | 9.10% |
WEALTH DEVELOPMENT BANK CORPORATION | 78,935,556.35 | 437,282,929.29 | 18.05% | 1.81% | 3.61% | 5.42% | 7.22% | 9.03% |
TOWER DEVELOPMENT BANK | 20,244,894.57 | 114,305,443.14 | 17.71% | 1.77% | 3.54% | 5.31% | 7.08% | 8.86% |
HONGKONG & SHANGHAI BANKING CORPORATION | 890,262,857.67 | 5,114,880,317.76 | 17.41% | 1.74% | 3.48% | 5.22% | 6.96% | 8.70% |
INTERNATIONALE NEDERLANDEN GROEP BK | 447,955,000.00 | 2,667,503,858.26 | 16.79% | 1.68% | 3.36% | 5.04% | 6.72% | 8.40% |
PHILIPPINE BUSINESS BANK INC A SAVINGS | 1,184,818,220.39 | 7,708,104,210.04 | 15.37% | 1.54% | 3.07% | 4.61% | 6.15% | 7.69% |
BDO PRIVATE BANK, INC. | 642,113,300.16 | 5,281,205,927.12 | 12.16% | 1.22% | 2.43% | 3.65% | 4.86% | 6.08% |
LEMERY SAVINGS & LOAN BANK, INC. | 8,625,579.31 | 71,094,084.23 | 12.13% | 1.21% | 2.43% | 3.64% | 4.85% | 6.07% |
HSBC SAVINGS BANK (PHILS) INC | 218,753,608.51 | 2,747,492,714.64 | 7.96% | 0.80% | 1.59% | 2.39% | 3.18% | 3.98% |
CENTURY SAVINGS BANK CORPORATION | 67,123,782.43 | 895,985,103.05 | 7.49% | 0.75% | 1.50% | 2.25% | 3.00% | 3.75% |
CTBC BANK (PHILIPPINES) CORPORATION | 414,894,799.82 | 6,621,899,085.40 | 6.27% | 0.63% | 1.25% | 1.88% | 2.51% | 3.13% |
CITY SAVINGS BANK INC | 159,231,185.28 | 2,565,461,612.04 | 6.21% | 0.62% | 1.24% | 1.86% | 2.48% | 3.10% |
SUN SAVINGS BANK INC | 6,150,546.57 | 106,281,667.66 | 5.79% | 0.58% | 1.16% | 1.74% | 2.31% | 2.89% |
THE BANK OF TOKYO-MITSUBISHI UFJ LTD | 118,261,613.40 | 2,278,627,961.84 | 5.19% | 0.52% | 1.04% | 1.56% | 2.08% | 2.60% |
ISLA BANK (A THRIFT BANK) INC | 33,211,214.70 | 639,992,124.71 | 5.19% | 0.52% | 1.04% | 1.56% | 2.08% | 2.59% |
PROGRESS SAVINGS AND LOAN BANK INC | 3,469,345.60 | 84,145,795.60 | 4.12% | 0.41% | 0.82% | 1.24% | 1.65% | 2.06% |
BATAAN SAVINGS AND LOAN BANK | 2,770,214.85 | 71,545,429.60 | 3.87% | 0.39% | 0.77% | 1.16% | 1.55% | 1.94% |
OPTIMUM DEVELOPMENT BANK INC | 23,022,356.80 | 721,724,742.05 | 3.19% | 0.32% | 0.64% | 0.96% | 1.28% | 1.59% |
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS | 13,972,461.61 | 445,966,783.26 | 3.13% | 0.31% | 0.63% | 0.94% | 1.25% | 1.57% |
PHIL BANK OF COMMUNICATIONS | 75,880,403.95 | 4,791,505,760.04 | 1.58% | 0.16% | 0.32% | 0.48% | 0.63% | 0.79% |
ANZ BANKING GROUP LTD | 31,324,888.26 | 2,474,333,079.88 | 1.27% | 0.13% | 0.25% | 0.38% | 0.51% | 0.63% |
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 | 5,034,155.55 | 1,249,396,547.00 | 0.40% | 0.04% | 0.08% | 0.12% | 0.16% | 0.20% |
JP MORGAN CHASE BANK NATIONAL ASSOCIATION | 734,885.22 | 1,403,159,400.00 | 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 | 241,492,678.42 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
CITYSTATE SAVINGS BANK INC | 0.00 | 806,301,387.22 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
ENTERPRISE BANK INC (A THRIFT BANK) | 0.00 | 227,755,866.40 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MERCHANTS SAVINGS & LOAN ASSOCIATION INC | 0.00 | 475,529,722.81 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
MICROFINANCE MAXIMUM SB INC | 0.00 | 55,912,948.55 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
NORTHPOINT DEV'T BANK INC | 0.00 | 83,322,600.83 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
PACIFIC ACE SAVINGS BANK INC | 0.00 | 79,443,628.36 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
THE PALAWAN BANK (PALAWAN DB) INC | 0.00 | 27,180,689.84 | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
Grand Total | 378,321,974,515.30 | 1,000,610,234,493.81 | 37.81% | 3.78% | 7.56% | 11.34% | 15.12% | 18.90% |
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