A Simple Stress Test of Philippine Banks as of December 31, 2013

Editor's Note: This is an updated version of an earlier blog post "A Simple Stress Test of Philippine Banks as of September 30, 2013"

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 202.327 billion or 2.03% of the Php 9,970.839 billion in assets held in the Philippine Banking System as of December 31, 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 118.116 billion or 11.80% of the PhP 1,000.788 billion in Stockholders Equity (SE) as of December 31, 2013.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholders equity by a little less 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 December 31, 2013").

The stockholder's equity of two banks, The Real Bank and Opportunity Kauswagan Bank, would be completely wiped out.  Seven other banks, namely, Citibank Savings (72.64% decline in SE), Planters Development Bank (60.31% decline in SE), United Overseas Bank Philippines (47.48% decline in SE), World Partners Bank (45.55% decline in SE), BPI Globe Banko (45.36% decline in SE), Comsavings Bank (41.03% decline in SE), Enterprise Bank (39.43% decline in SE) would be severely affected.

Philippine Banking System
NPL as % of SE
December 31, 2013
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
THE REAL BANK (A THRIFT BANK) INC	3,222,282,611.51	806,215,196.88	399.68%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	129,775,492.78	61,638,110.53	210.54%
CITIBANK SAVINGS INC	2,308,133,797.81	1,588,734,573.60	145.28%
PLANTERS DEVELOPMENT BANK	3,267,592,729.96	2,709,190,353.46	120.61%
UNITED OVERSEAS BANK PHILIPPINES	664,931,491.65	700,169,994.52	94.97%
WORLD PARTNERS BANK (A THRIFT BANK)	88,682,976.78	97,350,763.11	91.10%
BPI GLOBE BANKO INC A SAVINGS BANK	201,814,159.62	222,466,942.65	90.72%
COMSAVINGS BANK	189,798,517.04	230,763,397.64	82.25%
ENTERPRISE BANK INC (A THRIFT BANK)	169,661,344.38	206,730,309.57	82.07%
SECURITY BANK SAVINGS CORPORATION	838,735,420.10	1,063,659,584.16	78.85%
PHILIPPINE POSTAL SAVINGS BANK INC	392,952,272.30	655,747,468.09	59.92%
DUNGGANON BANK (A MICROFINANCE THRIFT	47,508,153.45	84,914,347.98	55.95%
THE PALAWAN BANK (PALAWAN DB) INC	14,232,122.87	26,205,515.71	54.31%
EQUICOM SAVINGS BANK INC	253,955,691.53	498,166,589.96	50.98%
WEALTH DEVELOPMENT BANK CORPORATION	184,239,801.85	363,668,842.05	50.66%
NORTHPOINT DEV'T BANK INC	37,110,605.65	74,030,797.44	50.13%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	779,111,419.36	1,617,042,495.35	48.18%
FARMERS SAVINGS & LOAN BANK INC	48,471,260.01	114,015,222.56	42.51%
BATAAN DEVELOPMENT BANK	28,911,402.09	68,240,142.11	42.37%
ALLIED SAVINGS BANK	401,441,372.70	966,841,559.87	41.52%
SAMPAGUITA SAVINGS BANK INC	22,719,477.39	56,674,898.04	40.09%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	94,745,384.44	242,349,904.07	39.09%
TONG YANG SAVINGS BANK INC	148,666,358.33	390,716,494.64	38.05%
PHILIPPINE RESOURCES SAVINGS BANKING	568,270,831.20	1,600,287,621.08	35.51%
PAMPANGA DEVELOPMENT BANK	40,745,518.38	117,192,461.70	34.77%
VILLAGE BANK INC (A THRIFT BANK)	25,784,609.74	74,607,045.44	34.56%
STANDARD CHARTERED BANK	1,086,525,758.42	3,310,605,442.92	32.82%
LUZON DEVELOPMENT BANK	153,927,139.62	481,131,559.05	31.99%
METRO CEBU PUBLIC SAVINGS BANK	19,055,765.67	63,038,890.96	30.23%
MALASIQUI PROGRESSIVE SLB, INC	16,092,906.25	54,034,929.02	29.78%
MALAYAN BANK SAVINGS AND MORT BANK INC	315,155,109.94	1,097,017,961.88	28.73%
BANK OF COMMERCE	3,903,798,967.05	13,817,646,787.11	28.25%
RCBC SAVINGS BANK INC	1,828,298,222.91	6,899,395,315.46	26.50%
CHINA BANK SAVINGS INC	268,611,569.73	1,048,818,111.09	25.61%
PHIL BANK OF COMMUNICATIONS	1,240,984,212.26	4,884,526,700.64	25.41%
UNITED COCONUT PLANTERS BANK	4,791,102,973.68	18,923,327,348.00	25.32%
BPI FAMILY SAVINGS BANK INC	4,370,697,474.80	17,631,547,816.22	24.79%
EAST WEST BANKING CORP	4,648,406,663.92	19,118,256,899.86	24.31%
PHILIPPINE SAVINGS BANK	3,655,420,772.73	15,121,817,848.77	24.17%
MARITIME SAVINGS BANK CORPORATION	16,368,803.56	67,829,316.54	24.13%
UNIVERSITY SAVINGS BANK INC	48,120,002.84	213,776,498.41	22.51%
UNION BANK OF THE PHILIPPINES	8,949,967,078.89	40,738,622,254.61	21.97%
BUSINESS AND CONSUMERS BANK (A DB)	16,884,925.63	80,500,827.25	20.97%
FIRST CONSOLIDATED BANK INC (A PDB)	443,718,187.84	2,189,760,426.95	20.26%
DUMAGUETE CITY DEVELOPMENT BANK INC	41,156,519.67	216,227,266.65	19.03%
1ST VALLEY BANK INC A DEVELOPMENT BANK	191,253,994.34	1,024,055,944.77	18.68%
HIYAS BANKING CORPORATION	29,217,436.77	161,385,481.39	18.10%
PRODUCERS SAVINGS BANK CORPORATION	200,833,871.97	1,182,102,090.12	16.99%
PHILIPPINE VETERANS BANK	960,196,997.18	6,209,367,453.06	15.46%
LIFE SAVINGS BANK INC	9,639,927.96	66,553,066.52	14.48%
CORDILLERA SAVINGS BANK INC	14,750,218.80	103,395,121.60	14.27%
HONGKONG & SHANGHAI BANKING CORPORATION	829,841,922.61	5,856,722,324.95	14.17%
LEMERY SAVINGS & LOAN BANK, INC.	9,750,997.76	68,914,048.64	14.15%
PHILIPPINE NATIONAL BANK	10,686,422,376.48	75,851,044,114.67	14.09%
DEVELOPMENT BANK OF THE PHILIPPINES	5,639,214,503.34	40,750,998,289.34	13.84%
BPI DIRECT SAVINGS BANK INC	121,202,841.76	972,616,889.68	12.46%
CITY SAVINGS BANK INC	391,518,685.68	3,155,445,882.46	12.41%
CITIBANK, N.A.	844,338,675.22	7,545,425,770.57	11.19%
UCPB SAVINGS BANK	284,342,672.31	2,645,570,961.14	10.75%
BDO UNIBANK INC	17,239,114,625.78	163,633,762,916.89	10.54%
PHILIPPINE BUSINESS BANK INC A SAVINGS	745,484,055.76	7,110,533,709.94	10.48%
MAYBANK PHILIPPINES INC	1,036,927,723.27	10,219,650,372.27	10.15%
LAND BANK OF THE PHILIPPINES	7,317,990,983.02	72,317,804,694.85	10.12%
CHINA BANKING CORPORATION	4,117,935,690.11	41,787,498,261.93	9.85%
TOWER DEVELOPMENT BANK	11,026,032.92	112,560,495.06	9.80%
PRIDE STAR DEVELOPMENT BANK INC	6,473,437.72	69,890,199.26	9.26%
INTER-ASIA DEVELOPMENT BANK	4,504,816.66	52,276,134.45	8.62%
ROBINSONS BANK CORPORATION	421,843,064.16	5,172,343,787.97	8.16%
RIZAL COMMERCIAL BANKING CORP	3,527,950,432.52	45,974,823,788.29	7.67%
CARD SME BANK INC A THRIFT BANK	19,612,047.57	274,434,454.71	7.15%
SUN SAVINGS BANK INC	7,460,733.37	104,623,612.45	7.13%
BANK OF THE PHILIPPINE ISLANDS	6,787,741,471.65	99,164,800,917.73	6.84%
CTBC BANK (PHILIPPINES) CORPORATION	388,279,116.49	6,359,806,854.09	6.11%
QUEZON COCONUT BANK INC (A THRIFT BANK)	3,566,888.20	58,839,248.19	6.06%
ASIA UNITED BANK CORPORATION	1,073,013,698.39	18,014,404,268.37	5.96%
PHILIPPINE TRUST COMPANY	1,148,806,061.17	20,441,716,930.88	5.62%
CITYSTATE SAVINGS BANK INC	42,355,159.83	771,935,670.79	5.49%
CENTURY SAVINGS BANK CORPORATION	40,116,374.32	911,497,011.92	4.40%
KOREA EXCHANGE BANK	24,799,833.58	618,026,086.10	4.01%
BATAAN SAVINGS AND LOAN BANK	2,842,178.92	71,501,666.95	3.97%
BANK ONE SAVINGS AND TRUST CORP.	15,304,127.53	542,290,082.23	2.82%
PACIFIC ACE SAVINGS BANK INC	2,030,876.69	75,606,367.84	2.69%
OPTIMUM DEVELOPMENT BANK INC	17,197,495.99	713,108,078.00	2.41%
METROPOLITAN BANK & TRUST CO	3,124,797,642.79	130,413,414,436.45	2.40%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	14,540,829.34	656,548,271.48	2.21%
HSBC SAVINGS BANK (PHILS) INC	52,860,163.68	2,825,066,001.29	1.87%
SECURITY BANK CORPORATION	679,832,902.36	40,658,066,501.58	1.67%
PROGRESS SAVINGS AND LOAN BANK INC	1,269,493.88	83,008,094.43	1.53%
BANK OF CHINA LIMITED-MANILA BRANCH	8,660,895.91	746,794,923.86	1.16%
ANZ BANKING GROUP LTD	23,339,114.85	2,312,184,822.81	1.01%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	4,003,853.45	488,242,200.45	0.82%
MICROFINANCE MAXIMUM SB INC	374,895.56	45,791,031.87	0.82%
BANGKOK BANK PUBLIC CO LTD	4,954,155.55	1,170,854,993.88	0.42%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,156,048.97	392,277,101.62	0.29%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	1,556,917,580.74	0.05%
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%
BDO ELITE SAVINGS BANK INC	0.00	1,592,542,542.62	0.00%
BDO PRIVATE BANK, INC.	0.00	6,182,595,239.49	0.00%
DEUTSCHE BANK AG	0.00	2,038,174,079.87	0.00%
ISLA BANK (A THRIFT BANK) INC	0.00	648,121,453.33	0.00%
MBANK PHILIPPINES	0.00	125,138,767.06	0.00%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	0.00	757,011,827.28	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	1,319,435,712.15	0.00%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	2,284,664,024.91	0.00%
Grand Total	118,115,994,900.77	1,000,788,644,101.93	11.80%

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 Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:

1. Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
2. 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;
3. 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;
4. 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.

The circular mandates that an allowance for probable losses should be set up in accordance with the following schedule:

1. Loans Especially Mentioned: 5%
2. Substandard - Secured: 6% - 25%
3. Substandard - Unsecured: 25%
4. Doubtful: 50%
5. Loss: 100%

 As of December 31, 2013, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 358.025 billion or 3 times the size of the Philippine Banking System's NPLs of PhP 118.115 billion for the same period.  Consequently, any write-offs of Classified Loans will have three times the impact of an NPL write-off.

Philippine Banking System
Classified Loans vs. NPLs
December 31, 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.	5,664,000.00	4.00	141600000.00%
BANK OF CHINA LIMITED-MANILA BRANCH	6,423,063,461.39	8,660,895.91	74161.65%
INTER-ASIA DEVELOPMENT BANK	141,652,118.35	4,504,816.66	3144.46%
VILLAGE BANK INC (A THRIFT BANK)	630,919,242.58	25,784,609.74	2446.88%
CITIBANK, N.A.	20,364,644,000.00	844,338,675.22	2411.90%
KOREA EXCHANGE BANK	462,734,104.62	24,799,833.58	1865.88%
BANK ONE SAVINGS AND TRUST CORP.	199,061,737.27	15,304,127.53	1300.71%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	1,156,048.97	1208.64%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	166,032,945.97	14,540,829.34	1141.84%
SECURITY BANK CORPORATION	7,003,000,000.00	679,832,902.36	1030.11%
UNIVERSITY SAVINGS BANK INC	420,470,684.88	48,120,002.84	873.80%
BUSINESS AND CONSUMERS BANK (A DB)	118,939,496.32	16,884,925.63	704.41%
COMSAVINGS BANK	1,275,879,789.57	189,798,517.04	672.23%
METROPOLITAN BANK & TRUST CO	19,937,207,389.16	3,124,797,642.79	638.03%
BANK OF COMMERCE	24,857,960,000.00	3,903,798,967.05	636.76%
PRIDE STAR DEVELOPMENT BANK INC	36,470,704.16	6,473,437.72	563.39%
UCPB SAVINGS BANK	1,497,725,219.35	284,342,672.31	526.73%
RCBC SAVINGS BANK INC	8,915,418,143.00	1,828,298,222.91	487.63%
PHILIPPINE VETERANS BANK	4,394,587,487.40	960,196,997.18	457.68%
QUEZON COCONUT BANK INC (A THRIFT BANK)	15,821,814.27	3,566,888.20	443.57%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	4,791,102,973.68	422.14%
DUMAGUETE CITY DEVELOPMENT BANK INC	165,608,000.00	41,156,519.67	402.39%
OPTIMUM DEVELOPMENT BANK INC	63,898,835.09	17,197,495.99	371.56%
PHILIPPINE SAVINGS BANK	13,572,483,226.67	3,655,420,772.73	371.30%
PHILIPPINE NATIONAL BANK	38,615,100,403.38	10,686,422,376.48	361.35%
ROBINSONS BANK CORPORATION	1,506,082,604.60	421,843,064.16	357.02%
BATAAN DEVELOPMENT BANK	102,400,000.00	28,911,402.09	354.19%
CHINA BANKING CORPORATION	13,570,568,672.07	4,117,935,690.11	329.55%
PHILIPPINE TRUST COMPANY	3,552,475,217.30	1,148,806,061.17	309.23%
ASIA UNITED BANK CORPORATION	3,310,754,128.57	1,073,013,698.39	308.55%
MALAYAN BANK SAVINGS AND MORT BANK INC	959,569,720.14	315,155,109.94	304.48%
HSBC SAVINGS BANK (PHILS) INC	154,961,408.38	52,860,163.68	293.15%
WORLD PARTNERS BANK (A THRIFT BANK)	257,438,161.07	88,682,976.78	290.29%
CORDILLERA SAVINGS BANK INC	41,790,914.38	14,750,218.80	283.32%
UNION BANK OF THE PHILIPPINES	25,064,492,417.02	8,949,967,078.89	280.05%
BANK OF THE PHILIPPINE ISLANDS	18,861,609,694.25	6,787,741,471.65	277.88%
PROGRESS SAVINGS AND LOAN BANK INC	3,498,953.28	1,269,493.88	275.62%
RIZAL COMMERCIAL BANKING CORP	9,263,393,417.47	3,527,950,432.52	262.57%
LAND BANK OF THE PHILIPPINES	17,225,692,056.55	7,317,990,983.02	235.39%
LIFE SAVINGS BANK INC	22,621,905.68	9,639,927.96	234.67%
CHINA BANK SAVINGS INC	604,189,537.80	268,611,569.73	224.93%
BDO UNIBANK INC	37,051,289,808.23	17,239,114,625.78	214.93%
STANDARD CHARTERED BANK	2,214,531,168.10	1,086,525,758.42	203.82%
THE REAL BANK (A THRIFT BANK) INC	6,506,704,228.28	3,222,282,611.51	201.93%
FARMERS SAVINGS & LOAN BANK INC	97,094,614.94	48,471,260.01	200.31%
BPI FAMILY SAVINGS BANK INC	8,431,281,652.24	4,370,697,474.80	192.90%
PRODUCERS SAVINGS BANK CORPORATION	371,754,242.51	200,833,871.97	185.11%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	568,270,831.20	184.58%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	779,111,419.36	183.26%
METRO CEBU PUBLIC SAVINGS BANK	34,166,271.92	19,055,765.67	179.30%
MARITIME SAVINGS BANK CORPORATION	29,010,121.50	16,368,803.56	177.23%
TOWER DEVELOPMENT BANK	19,497,163.81	11,026,032.92	176.83%
EQUICOM SAVINGS BANK INC	441,359,893.70	253,955,691.53	173.79%
PLANTERS DEVELOPMENT BANK	5,673,533,243.13	3,267,592,729.96	173.63%
MAYBANK PHILIPPINES INC	1,755,119,272.26	1,036,927,723.27	169.26%
FIRST CONSOLIDATED BANK INC (A PDB)	734,464,124.70	443,718,187.84	165.52%
DEVELOPMENT BANK OF THE PHILIPPINES	9,106,934,448.90	5,639,214,503.34	161.49%
CENTURY SAVINGS BANK CORPORATION	63,596,012.11	40,116,374.32	158.53%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,905,358.58	94,745,384.44	154.00%
BPI GLOBE BANKO INC A SAVINGS BANK	310,264,159.68	201,814,159.62	153.74%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,085,632,000.00	745,484,055.76	145.63%
PHILIPPINE POSTAL SAVINGS BANK INC	568,903,048.35	392,952,272.30	144.78%
SECURITY BANK SAVINGS CORPORATION	1,201,960,406.01	838,735,420.10	143.31%
ANZ BANKING GROUP LTD	32,038,277.57	23,339,114.85	137.27%
BPI DIRECT SAVINGS BANK INC	154,745,791.04	121,202,841.76	127.68%
EAST WEST BANKING CORP	5,919,925,900.00	4,648,406,663.92	127.35%
CTBC BANK (PHILIPPINES) CORPORATION	485,081,947.89	388,279,116.49	124.93%
TONG YANG SAVINGS BANK INC	174,717,508.90	148,666,358.33	117.52%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	40,745,518.38	116.32%
UNITED OVERSEAS BANK PHILIPPINES	766,586,322.90	664,931,491.65	115.29%
HONGKONG & SHANGHAI BANKING CORPORATION	955,317,377.76	829,841,922.61	115.12%
CITIBANK SAVINGS INC	2,481,161,966.78	2,308,133,797.81	107.50%
LUZON DEVELOPMENT BANK	158,621,292.41	153,927,139.62	103.05%
SAMPAGUITA SAVINGS BANK INC	23,076,275.29	22,719,477.39	101.57%
DUNGGANON BANK (A MICROFINANCE THRIFT	48,221,875.09	47,508,153.45	101.50%
LEMERY SAVINGS & LOAN BANK, INC.	9,760,779.60	9,750,997.76	100.10%
BANGKOK BANK PUBLIC CO LTD	4,954,155.55	4,954,155.55	100.00%
BATAAN SAVINGS AND LOAN BANK	2,842,178.92	2,842,178.92	100.00%
HIYAS BANKING CORPORATION	29,217,436.77	29,217,436.77	100.00%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	734,885.22	100.00%
MALASIQUI PROGRESSIVE SLB, INC	16,092,906.25	16,092,906.25	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	129,775,492.78	129,775,492.78	100.00%
ALLIED SAVINGS BANK	328,078,239.68	401,441,372.70	81.73%
SUN SAVINGS BANK INC	5,971,161.13	7,460,733.37	80.03%
CITY SAVINGS BANK INC	204,143,879.33	391,518,685.68	52.14%
WEALTH DEVELOPMENT BANK CORPORATION	78,815,732.80	184,239,801.85	42.78%
PHIL BANK OF COMMUNICATIONS	135,959,426.52	1,240,984,212.26	10.96%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	191,253,994.34	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	19,612,047.57	0.00%
CITYSTATE SAVINGS BANK INC	0.00	42,355,159.83	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	169,661,344.38	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	4,003,853.45	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	374,895.56	0.00%
NORTHPOINT DEV'T BANK INC	0.00	37,110,605.65	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	2,030,876.69	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	14,232,122.87	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	1,110,203,116.56	0.00	NA
ISLA BANK (A THRIFT BANK) INC	31,396,553.74	0.00	NA
MBANK PHILIPPINES	0.00	0.00	NA
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	622,758,906.60	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	631,010,474.71	0.00	NA
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	1,946,036.98	0.00	NA
Grand Total	358,025,166,994.85	118,115,994,900.77	303.11%

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 34.87% of the Php 1.027 trillion in Total Capital Cushion of Philippine Banks as of December 31, 2013.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
December 31, 2013
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)
THE REAL BANK (A THRIFT BANK) INC	6,506,704,228.28	617,617,621.91	1053.52%
BANK OF CHINA LIMITED-MANILA BRANCH	6,423,063,461.39	687,867,475.30	933.76%
COMSAVINGS BANK	1,275,879,789.57	169,764,780.11	751.56%
VILLAGE BANK INC (A THRIFT BANK)	630,919,242.58	87,430,352.92	721.62%
INTER-ASIA DEVELOPMENT BANK	141,652,118.35	61,127,067.06	231.73%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	10,300,012,660.82	196.36%
UNIVERSITY SAVINGS BANK INC	420,470,684.88	239,274,961.57	175.73%
CITIBANK, N.A.	20,364,644,000.00	12,867,020,795.08	158.27%
WORLD PARTNERS BANK (A THRIFT BANK)	257,438,161.07	165,320,245.34	155.72%
BUSINESS AND CONSUMERS BANK (A DB)	118,939,496.32	84,101,508.34	141.42%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,829,490.82	131.57%
BANK OF COMMERCE	24,857,960,000.00	19,406,106,800.71	128.09%
PLANTERS DEVELOPMENT BANK	5,673,533,243.13	4,533,178,786.23	125.16%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	129,775,492.78	103,950,857.21	124.84%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,006,173,745.56	111.36%
PHILIPPINE SAVINGS BANK	13,572,483,226.67	16,721,608,527.38	81.17%
FARMERS SAVINGS & LOAN BANK INC	97,094,614.94	120,781,764.62	80.39%
KOREA EXCHANGE BANK	462,734,104.62	576,874,833.55	80.21%
EQUICOM SAVINGS BANK INC	441,359,893.70	555,794,079.97	79.41%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	622,758,906.60	815,063,759.54	76.41%
MALAYAN BANK SAVINGS AND MORT BANK INC	959,569,720.14	1,273,775,693.89	75.33%
DUMAGUETE CITY DEVELOPMENT BANK INC	165,608,000.00	223,461,033.96	74.11%
STANDARD CHARTERED BANK	2,214,531,168.10	3,033,029,089.73	73.01%
DEUTSCHE BANK AG	1,110,203,116.56	1,546,247,754.32	71.80%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	1,496,007,114.51	70.11%
CITIBANK SAVINGS INC	2,481,161,966.78	3,752,623,823.14	66.12%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	2,184,688,001.97	65.35%
SECURITY BANK SAVINGS CORPORATION	1,201,960,406.01	1,865,593,388.29	64.43%
PHILIPPINE VETERANS BANK	4,394,587,487.40	7,028,324,797.93	62.53%
PHILIPPINE POSTAL SAVINGS BANK INC	568,903,048.35	918,613,955.58	61.93%
CHINA BANK SAVINGS INC	604,189,537.80	1,039,014,641.03	58.15%
UNITED OVERSEAS BANK PHILIPPINES	766,586,322.90	1,375,216,457.82	55.74%
BPI GLOBE BANKO INC A SAVINGS BANK	310,264,159.68	593,397,946.28	52.29%
DUNGGANON BANK (A MICROFINANCE THRIFT	48,221,875.09	92,876,893.49	51.92%
METRO CEBU PUBLIC SAVINGS BANK	34,166,271.92	65,999,333.92	51.77%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,905,358.58	290,958,063.44	50.15%
UNION BANK OF THE PHILIPPINES	25,064,492,417.02	50,105,002,868.05	50.02%
UCPB SAVINGS BANK	1,497,725,219.35	3,035,715,339.35	49.34%
PRIDE STAR DEVELOPMENT BANK INC	36,470,704.16	75,980,514.74	48.00%
BPI FAMILY SAVINGS BANK INC	8,431,281,652.24	18,581,283,691.41	45.38%
PHILIPPINE NATIONAL BANK	38,615,100,403.38	88,657,028,404.88	43.56%
MARITIME SAVINGS BANK CORPORATION	29,010,121.50	70,584,513.90	41.10%
BANK ONE SAVINGS AND TRUST CORP.	199,061,737.27	536,648,276.23	37.09%
MIZUHO BANK LTD - MANILA BRANCH	631,010,474.71	1,704,943,963.71	37.01%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	129,705,015.33	36.54%
CORDILLERA SAVINGS BANK INC	41,790,914.38	120,993,917.19	34.54%
LIFE SAVINGS BANK INC	22,621,905.68	66,353,767.56	34.09%
TONG YANG SAVINGS BANK INC	174,717,508.90	516,428,342.05	33.83%
PRODUCERS SAVINGS BANK CORPORATION	371,754,242.51	1,113,407,913.24	33.39%
FIRST CONSOLIDATED BANK INC (A PDB)	734,464,124.70	2,275,046,263.65	32.28%
LUZON DEVELOPMENT BANK	158,621,292.41	500,708,076.86	31.68%
LAND BANK OF THE PHILIPPINES	17,225,692,056.55	55,932,170,783.19	30.80%
ALLIED SAVINGS BANK	328,078,239.68	1,070,923,264.94	30.64%
SAMPAGUITA SAVINGS BANK INC	23,076,275.29	78,867,526.48	29.26%
ROBINSONS BANK CORPORATION	1,506,082,604.60	5,176,785,182.12	29.09%
EAST WEST BANKING CORP	5,919,925,900.00	20,386,434,312.57	29.04%
CHINA BANKING CORPORATION	13,570,568,672.07	47,996,880,610.80	28.27%
QUEZON COCONUT BANK INC (A THRIFT BANK)	15,821,814.27	58,239,382.25	27.17%
MALASIQUI PROGRESSIVE SLB, INC	16,092,906.25	60,505,691.07	26.60%
DEVELOPMENT BANK OF THE PHILIPPINES	9,106,934,448.90	37,125,961,483.18	24.53%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	166,032,945.97	683,600,672.25	24.29%
BDO UNIBANK INC	37,051,289,808.23	167,933,860,670.95	22.06%
RIZAL COMMERCIAL BANKING CORP	9,263,393,417.47	44,894,874,885.17	20.63%
BANK OF THE PHILIPPINE ISLANDS	18,861,609,694.25	96,728,666,469.42	19.50%
PHILIPPINE TRUST COMPANY	3,552,475,217.30	18,421,300,653.21	19.28%
SECURITY BANK CORPORATION	7,003,000,000.00	37,876,804,493.66	18.49%
HONGKONG & SHANGHAI BANKING CORPORATION	955,317,377.76	5,347,398,652.15	17.87%
WEALTH DEVELOPMENT BANK CORPORATION	78,815,732.80	445,387,684.02	17.70%
TOWER DEVELOPMENT BANK	19,497,163.81	114,305,443.14	17.06%
ASIA UNITED BANK CORPORATION	3,310,754,128.57	19,529,598,162.27	16.95%
HIYAS BANKING CORPORATION	29,217,436.77	173,831,800.64	16.81%
INTERNATIONALE NEDERLANDEN GROEP BK	447,955,000.00	2,667,503,858.26	16.79%
MAYBANK PHILIPPINES INC	1,755,119,272.26	10,691,946,465.00	16.42%
BPI DIRECT SAVINGS BANK INC	154,745,791.04	959,699,370.21	16.12%
METROPOLITAN BANK & TRUST CO	19,937,207,389.16	136,308,328,561.06	14.63%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,085,632,000.00	7,768,677,209.19	13.97%
LEMERY SAVINGS & LOAN BANK, INC.	9,760,779.60	73,922,873.28	13.20%
BDO PRIVATE BANK, INC.	642,113,300.16	5,299,706,623.13	12.12%
OPTIMUM DEVELOPMENT BANK INC	63,898,835.09	721,724,742.05	8.85%
CITY SAVINGS BANK INC	204,143,879.33	2,611,202,131.58	7.82%
CTBC BANK (PHILIPPINES) CORPORATION	485,081,947.89	6,721,688,370.33	7.22%
CENTURY SAVINGS BANK CORPORATION	63,596,012.11	897,543,805.05	7.09%
HSBC SAVINGS BANK (PHILS) INC	154,961,408.38	2,628,939,606.37	5.89%
SUN SAVINGS BANK INC	5,971,161.13	106,922,612.14	5.58%
ISLA BANK (A THRIFT BANK) INC	31,396,553.74	639,972,124.71	4.91%
PROGRESS SAVINGS AND LOAN BANK INC	3,498,953.28	83,310,687.78	4.20%
BATAAN SAVINGS AND LOAN BANK	2,842,178.92	73,639,250.93	3.86%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	445,345,926.52	3.14%
PHIL BANK OF COMMUNICATIONS	135,959,426.52	4,674,290,207.54	2.91%
ANZ BANKING GROUP LTD	32,038,277.57	2,470,064,525.73	1.30%
BANK OF AMERICA N.A.	5,664,000.00	607,196,709.20	0.93%
BANGKOK BANK PUBLIC CO LTD	4,954,155.55	1,265,156,864.50	0.39%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	1,946,036.98	2,280,627,961.84	0.09%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	1,408,167,950.00	0.05%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	1,089,331,888.45	0.00%
BDO ELITE SAVINGS BANK INC	0.00	1,546,549,042.92	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	269,353,237.08	0.00%
CITYSTATE SAVINGS BANK INC	0.00	790,996,767.32	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	227,625,329.81	0.00%
MBANK PHILIPPINES	0.00	207,926,965.58	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	547,873,402.38	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	54,916,771.27	0.00%
NORTHPOINT DEV'T BANK INC	0.00	83,568,781.61	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	76,004,399.27	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	35,969,012.75	0.00%
Grand Total	358,025,166,994.85	1,026,838,650,829.81	34.87%

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 34.87% 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 3.49% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 17.43%.

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 three other banks (severely affected banks highlighted in yellow).

1. The Real Bank (105.35% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (93.38% reduction in Total Capital Cushion)
3. Comsavings Bank (75.16% reduction in Total Capital Cushion)
4. Village SLA, Inc. (72.16% reduction in Total Capital Cushion)

A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of four banks and severely impact the Total Capital Cushion of five more banks:

1. The Real Bank (210.70% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (186.75% reduction in Total Capital Cushion)
3. Comsavings Bank (150.31% reduction in Total Capital Cushion)
4. Village SLA, Inc. (144.32% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (46.35% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (39.27% reduction in Total Capital Cushion)
7. University Savings Bank (35.15% reduction in Total Capital Cushion)
8. Citibank, N.A. (31.65% reduction in Total Capital Cushion)
9. World Partners Bank (31.14% reduction in Total Capital Cushion)

A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of four banks and severely affect (reduce by 30% or more) the Total Capital Cushion of eleven other banks:

1. The Real Bank (316.05% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (280.13% reduction in Total Capital Cushion)
3. Comsavings Bank (225.47% reduction in Total Capital Cushion)
4. Village SLA, Inc. (216.49% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (69.52% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (58.91% reduction in Total Capital Cushion)
7. University Savings Bank (52.72% reduction in Total Capital Cushion)
8. Citibank N.A. (47.48% reduction in Total Capital Cushion)
9. World Partners Bank (46.72% reduction in Total Capital Cushion)
10. Business and Consumers Bank (42.43% reduction in Total Capital Cushion)
11. Bataan Development Bank (39.47% reduction in Total Capital Cushion)
12. Bank of Commerce (38.43% reduction in Total Capital Cushion)
13. Planters Development Bank (37.55% reduction in Total Capital Cushion)
14. Opportunity Kauswagan Bank (37.45% reduction in Total Capital Cushion)
15. RCBC Savings Bank (33.41% reduction in Total Capital Cushion)

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of four banks and severely affect (reduce by 30% or more) the Total Capital Cushion of seventeen more banks:

1. The Real Bank (421.41% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (373.51% reduction in Total Capital Cushion)
3. Comsavings Bank (300.62% reduction in Total Capital Cushion)
4. Village SLA, Inc. (288.65% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (92.69% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (78.54% reduction in Total Capital Cushion)
7. University Savings Bank (70.29% reduction in Total Capital Cushion)
8. Citibank, N.A. (63.31% reduction in Total Capital Cushion)
9. World Partners Bank (62.29% reduction in Total Capital Cushion)
10. Business & Consumers Bank (56.57% reduction in Total Capital Cushion)
11. Bataan Development Bank (52.63% reduction in Total Capital Cushion)
12. Bank of Commerce (51.24% reduction in Total Capital Cushion)
13. Planters Development Bank (50.06% reduction in Total Capital Cushion)
14. Opportunity Kauswagan Bank, Inc. (49.94% reduction in Total Capital Cushion)
15. RCBC Savings Bank (44.54% reduction in Total Capital Cushion)
16. Philippine Savings Bank (32.47% reduction in Total Capital Cushion)
17. Farmers Savings & Loan Bank (32.16% reduction in Total Capital Cushion)
18. Korea Exchange Bank (32.09% reduction in Total Capital Cushion)
19. Equicom Savings Bank Inc. (31.76% reduction in Total Capital Cushion)
20. Mega International Commercial Bank Co., Ltd. (30.56% reduction in Total Capital Cushion)
21. Malayan Bank Savings & Mortgage Bank (30.13% reduction in Total Capital Cushion)

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of five banks and severely affect (reduce by 30% or more) the Total Capital Cushion of twenty-five more banks:

1. The Real Bank (526.76% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (466.88% reduction in Total Capital Cushion)
3. Comsavings Bank (375.78% reduction in Total Capital Cushion)
4. Village SLA, Inc. (360.81% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (115.87% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (98.16% reduction in Total Capital Cushion)
7. University Savings Bank (87.86% reduction in Total Capital Cushion)
8. Citibank, N.A. (79.14% reduction in Total Capital Cushion)
9. World Partners Bank (77.86% reduction in Total Capital Cushion)
10. Business & Consumers Bank (70.71% reduction in Total Capital Cushion)
11. Bataan Development Bank (65.78% reduction in Total Capital Cushion)
12. Bank of Commerce (64.05% reduction in Total Capital Cushion)
13. Planters Development Bank (62.58% reduction in Total Capital Cushion)
14. Opportunity Kauswagan Bank, Inc. (62.42% reduction in Total Capital Cushion)
15. RCBC Savings Bank (55.68% reduction in Total Capital Cushion)
16. Philippine Savings Bank (40.58% reduction in Total Capital Cushion)
17. Farmers Savings & Loan Bank (40.19% reduction in Total Capital Cushion)
18. Korea Exchange Bank (40.11% reduction in Total Capital Cushion)
19. Equicom Savings Bank Inc. (39.71% reduction in Total Capital Cushion)
20. Mega International Commercial Bank Co., Ltd. (38.20% reduction in Total Capital Cushion)
21. Malayan Bank Savings & Mortgage Bank (37.67% reduction in Total Capital Cushion)
22. Dumaguete City Development Bank (37.06% reduction in Total Capital Cushion)
23. Standard Chartered Bank (36.51% reduction in Total Capital Cushion)
24. Deutsche Bank AG (35.90% reduction in Total Capital Cushion)
25. Philippine Resources Savings Banking (35.06% reduction in Total Capital Cushion)
26. Citibank Savings Inc. (33.06% reduction in Total Capital Cushion)
27. Sterling Bank of Asia Inc. (32.68% reduction in Total Capital Cushion)
28. Security Bank Savings Corporation (32.21% reduction in Total Capital Cushion)
29. Philippine Veterans Bank (31.26% reduction in Total Capital Cushion)
30. Philippine Postal Savings Bank Inc. (30.97% 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 December 31, 2013".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of December 31, 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
December 31, 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	6,506,704,228.28	617,617,621.91	1053.52%	105.35%	210.70%	316.05%	421.41%	526.76%
BANK OF CHINA LIMITED-MANILA BRANCH	6,423,063,461.39	687,867,475.30	933.76%	93.38%	186.75%	280.13%	373.51%	466.88%
COMSAVINGS BANK	1,275,879,789.57	169,764,780.11	751.56%	75.16%	150.31%	225.47%	300.62%	375.78%
VILLAGE BANK INC (A THRIFT BANK)	630,919,242.58	87,430,352.92	721.62%	72.16%	144.32%	216.49%	288.65%	360.81%
INTER-ASIA DEVELOPMENT BANK	141,652,118.35	61,127,067.06	231.73%	23.17%	46.35%	69.52%	92.69%	115.87%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	10,300,012,660.82	196.36%	19.64%	39.27%	58.91%	78.54%	98.18%
UNIVERSITY SAVINGS BANK INC	420,470,684.88	239,274,961.57	175.73%	17.57%	35.15%	52.72%	70.29%	87.86%
CITIBANK, N.A.	20,364,644,000.00	12,867,020,795.08	158.27%	15.83%	31.65%	47.48%	63.31%	79.14%
WORLD PARTNERS BANK (A THRIFT BANK)	257,438,161.07	165,320,245.34	155.72%	15.57%	31.14%	46.72%	62.29%	77.86%
BUSINESS AND CONSUMERS BANK (A DB)	118,939,496.32	84,101,508.34	141.42%	14.14%	28.28%	42.43%	56.57%	70.71%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,829,490.82	131.57%	13.16%	26.31%	39.47%	52.63%	65.78%
BANK OF COMMERCE	24,857,960,000.00	19,406,106,800.71	128.09%	12.81%	25.62%	38.43%	51.24%	64.05%
PLANTERS DEVELOPMENT BANK	5,673,533,243.13	4,533,178,786.23	125.16%	12.52%	25.03%	37.55%	50.06%	62.58%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	129,775,492.78	103,950,857.21	124.84%	12.48%	24.97%	37.45%	49.94%	62.42%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,006,173,745.56	111.36%	11.14%	22.27%	33.41%	44.54%	55.68%
PHILIPPINE SAVINGS BANK	13,572,483,226.67	16,721,608,527.38	81.17%	8.12%	16.23%	24.35%	32.47%	40.58%
FARMERS SAVINGS & LOAN BANK INC	97,094,614.94	120,781,764.62	80.39%	8.04%	16.08%	24.12%	32.16%	40.19%
KOREA EXCHANGE BANK	462,734,104.62	576,874,833.55	80.21%	8.02%	16.04%	24.06%	32.09%	40.11%
EQUICOM SAVINGS BANK INC	441,359,893.70	555,794,079.97	79.41%	7.94%	15.88%	23.82%	31.76%	39.71%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	622,758,906.60	815,063,759.54	76.41%	7.64%	15.28%	22.92%	30.56%	38.20%
MALAYAN BANK SAVINGS AND MORT BANK INC	959,569,720.14	1,273,775,693.89	75.33%	7.53%	15.07%	22.60%	30.13%	37.67%
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%
STANDARD CHARTERED BANK	2,214,531,168.10	3,033,029,089.73	73.01%	7.30%	14.60%	21.90%	29.21%	36.51%
DEUTSCHE BANK AG	1,110,203,116.56	1,546,247,754.32	71.80%	7.18%	14.36%	21.54%	28.72%	35.90%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	1,496,007,114.51	70.11%	7.01%	14.02%	21.03%	28.05%	35.06%
CITIBANK SAVINGS INC	2,481,161,966.78	3,752,623,823.14	66.12%	6.61%	13.22%	19.84%	26.45%	33.06%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	2,184,688,001.97	65.35%	6.54%	13.07%	19.61%	26.14%	32.68%
SECURITY BANK SAVINGS CORPORATION	1,201,960,406.01	1,865,593,388.29	64.43%	6.44%	12.89%	19.33%	25.77%	32.21%
PHILIPPINE VETERANS BANK	4,394,587,487.40	7,028,324,797.93	62.53%	6.25%	12.51%	18.76%	25.01%	31.26%
PHILIPPINE POSTAL SAVINGS BANK INC	568,903,048.35	918,613,955.58	61.93%	6.19%	12.39%	18.58%	24.77%	30.97%
CHINA BANK SAVINGS INC	604,189,537.80	1,039,014,641.03	58.15%	5.82%	11.63%	17.45%	23.26%	29.08%
UNITED OVERSEAS BANK PHILIPPINES	766,586,322.90	1,375,216,457.82	55.74%	5.57%	11.15%	16.72%	22.30%	27.87%
BPI GLOBE BANKO INC A SAVINGS BANK	310,264,159.68	593,397,946.28	52.29%	5.23%	10.46%	15.69%	20.91%	26.14%
DUNGGANON BANK (A MICROFINANCE THRIFT	48,221,875.09	92,876,893.49	51.92%	5.19%	10.38%	15.58%	20.77%	25.96%
METRO CEBU PUBLIC SAVINGS BANK	34,166,271.92	65,999,333.92	51.77%	5.18%	10.35%	15.53%	20.71%	25.88%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,905,358.58	290,958,063.44	50.15%	5.01%	10.03%	15.04%	20.06%	25.07%
UNION BANK OF THE PHILIPPINES	25,064,492,417.02	50,105,002,868.05	50.02%	5.00%	10.00%	15.01%	20.01%	25.01%
UCPB SAVINGS BANK	1,497,725,219.35	3,035,715,339.35	49.34%	4.93%	9.87%	14.80%	19.73%	24.67%
PRIDE STAR DEVELOPMENT BANK INC	36,470,704.16	75,980,514.74	48.00%	4.80%	9.60%	14.40%	19.20%	24.00%
BPI FAMILY SAVINGS BANK INC	8,431,281,652.24	18,581,283,691.41	45.38%	4.54%	9.08%	13.61%	18.15%	22.69%
PHILIPPINE NATIONAL BANK	38,615,100,403.38	88,657,028,404.88	43.56%	4.36%	8.71%	13.07%	17.42%	21.78%
MARITIME SAVINGS BANK CORPORATION	29,010,121.50	70,584,513.90	41.10%	4.11%	8.22%	12.33%	16.44%	20.55%
BANK ONE SAVINGS AND TRUST CORP.	199,061,737.27	536,648,276.23	37.09%	3.71%	7.42%	11.13%	14.84%	18.55%
MIZUHO BANK LTD - MANILA BRANCH	631,010,474.71	1,704,943,963.71	37.01%	3.70%	7.40%	11.10%	14.80%	18.51%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	129,705,015.33	36.54%	3.65%	7.31%	10.96%	14.62%	18.27%
CORDILLERA SAVINGS BANK INC	41,790,914.38	120,993,917.19	34.54%	3.45%	6.91%	10.36%	13.82%	17.27%
LIFE SAVINGS BANK INC	22,621,905.68	66,353,767.56	34.09%	3.41%	6.82%	10.23%	13.64%	17.05%
TONG YANG SAVINGS BANK INC	174,717,508.90	516,428,342.05	33.83%	3.38%	6.77%	10.15%	13.53%	16.92%
PRODUCERS SAVINGS BANK CORPORATION	371,754,242.51	1,113,407,913.24	33.39%	3.34%	6.68%	10.02%	13.36%	16.69%
FIRST CONSOLIDATED BANK INC (A PDB)	734,464,124.70	2,275,046,263.65	32.28%	3.23%	6.46%	9.69%	12.91%	16.14%
LUZON DEVELOPMENT BANK	158,621,292.41	500,708,076.86	31.68%	3.17%	6.34%	9.50%	12.67%	15.84%
LAND BANK OF THE PHILIPPINES	17,225,692,056.55	55,932,170,783.19	30.80%	3.08%	6.16%	9.24%	12.32%	15.40%
ALLIED SAVINGS BANK	328,078,239.68	1,070,923,264.94	30.64%	3.06%	6.13%	9.19%	12.25%	15.32%
SAMPAGUITA SAVINGS BANK INC	23,076,275.29	78,867,526.48	29.26%	2.93%	5.85%	8.78%	11.70%	14.63%
ROBINSONS BANK CORPORATION	1,506,082,604.60	5,176,785,182.12	29.09%	2.91%	5.82%	8.73%	11.64%	14.55%
EAST WEST BANKING CORP	5,919,925,900.00	20,386,434,312.57	29.04%	2.90%	5.81%	8.71%	11.62%	14.52%
CHINA BANKING CORPORATION	13,570,568,672.07	47,996,880,610.80	28.27%	2.83%	5.65%	8.48%	11.31%	14.14%
QUEZON COCONUT BANK INC (A THRIFT BANK)	15,821,814.27	58,239,382.25	27.17%	2.72%	5.43%	8.15%	10.87%	13.58%
MALASIQUI PROGRESSIVE SLB, INC	16,092,906.25	60,505,691.07	26.60%	2.66%	5.32%	7.98%	10.64%	13.30%
DEVELOPMENT BANK OF THE PHILIPPINES	9,106,934,448.90	37,125,961,483.18	24.53%	2.45%	4.91%	7.36%	9.81%	12.26%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	166,032,945.97	683,600,672.25	24.29%	2.43%	4.86%	7.29%	9.72%	12.14%
BDO UNIBANK INC	37,051,289,808.23	167,933,860,670.95	22.06%	2.21%	4.41%	6.62%	8.83%	11.03%
RIZAL COMMERCIAL BANKING CORP	9,263,393,417.47	44,894,874,885.17	20.63%	2.06%	4.13%	6.19%	8.25%	10.32%
BANK OF THE PHILIPPINE ISLANDS	18,861,609,694.25	96,728,666,469.42	19.50%	1.95%	3.90%	5.85%	7.80%	9.75%
PHILIPPINE TRUST COMPANY	3,552,475,217.30	18,421,300,653.21	19.28%	1.93%	3.86%	5.79%	7.71%	9.64%
SECURITY BANK CORPORATION	7,003,000,000.00	37,876,804,493.66	18.49%	1.85%	3.70%	5.55%	7.40%	9.24%
HONGKONG & SHANGHAI BANKING CORPORATION	955,317,377.76	5,347,398,652.15	17.87%	1.79%	3.57%	5.36%	7.15%	8.93%
WEALTH DEVELOPMENT BANK CORPORATION	78,815,732.80	445,387,684.02	17.70%	1.77%	3.54%	5.31%	7.08%	8.85%
TOWER DEVELOPMENT BANK	19,497,163.81	114,305,443.14	17.06%	1.71%	3.41%	5.12%	6.82%	8.53%
ASIA UNITED BANK CORPORATION	3,310,754,128.57	19,529,598,162.27	16.95%	1.70%	3.39%	5.09%	6.78%	8.48%
HIYAS BANKING CORPORATION	29,217,436.77	173,831,800.64	16.81%	1.68%	3.36%	5.04%	6.72%	8.40%
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%
MAYBANK PHILIPPINES INC	1,755,119,272.26	10,691,946,465.00	16.42%	1.64%	3.28%	4.92%	6.57%	8.21%
BPI DIRECT SAVINGS BANK INC	154,745,791.04	959,699,370.21	16.12%	1.61%	3.22%	4.84%	6.45%	8.06%
METROPOLITAN BANK & TRUST CO	19,937,207,389.16	136,308,328,561.06	14.63%	1.46%	2.93%	4.39%	5.85%	7.31%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,085,632,000.00	7,768,677,209.19	13.97%	1.40%	2.79%	4.19%	5.59%	6.99%
LEMERY SAVINGS & LOAN BANK, INC.	9,760,779.60	73,922,873.28	13.20%	1.32%	2.64%	3.96%	5.28%	6.60%
BDO PRIVATE BANK, INC.	642,113,300.16	5,299,706,623.13	12.12%	1.21%	2.42%	3.63%	4.85%	6.06%
OPTIMUM DEVELOPMENT BANK INC	63,898,835.09	721,724,742.05	8.85%	0.89%	1.77%	2.66%	3.54%	4.43%
CITY SAVINGS BANK INC	204,143,879.33	2,611,202,131.58	7.82%	0.78%	1.56%	2.35%	3.13%	3.91%
CTBC BANK (PHILIPPINES) CORPORATION	485,081,947.89	6,721,688,370.33	7.22%	0.72%	1.44%	2.17%	2.89%	3.61%
CENTURY SAVINGS BANK CORPORATION	63,596,012.11	897,543,805.05	7.09%	0.71%	1.42%	2.13%	2.83%	3.54%
HSBC SAVINGS BANK (PHILS) INC	154,961,408.38	2,628,939,606.37	5.89%	0.59%	1.18%	1.77%	2.36%	2.95%
SUN SAVINGS BANK INC	5,971,161.13	106,922,612.14	5.58%	0.56%	1.12%	1.68%	2.23%	2.79%
ISLA BANK (A THRIFT BANK) INC	31,396,553.74	639,972,124.71	4.91%	0.49%	0.98%	1.47%	1.96%	2.45%
PROGRESS SAVINGS AND LOAN BANK INC	3,498,953.28	83,310,687.78	4.20%	0.42%	0.84%	1.26%	1.68%	2.10%
BATAAN SAVINGS AND LOAN BANK	2,842,178.92	73,639,250.93	3.86%	0.39%	0.77%	1.16%	1.54%	1.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	445,345,926.52	3.14%	0.31%	0.63%	0.94%	1.25%	1.57%
PHIL BANK OF COMMUNICATIONS	135,959,426.52	4,674,290,207.54	2.91%	0.29%	0.58%	0.87%	1.16%	1.45%
ANZ BANKING GROUP LTD	32,038,277.57	2,470,064,525.73	1.30%	0.13%	0.26%	0.39%	0.52%	0.65%
BANK OF AMERICA N.A.	5,664,000.00	607,196,709.20	0.93%	0.09%	0.19%	0.28%	0.37%	0.47%
BANGKOK BANK PUBLIC CO LTD	4,954,155.55	1,265,156,864.50	0.39%	0.04%	0.08%	0.12%	0.16%	0.20%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	1,946,036.98	2,280,627,961.84	0.09%	0.01%	0.02%	0.03%	0.03%	0.04%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	1,408,167,950.00	0.05%	0.01%	0.01%	0.02%	0.02%	0.03%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	1,089,331,888.45	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
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	269,353,237.08	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CITYSTATE SAVINGS BANK INC	0.00	790,996,767.32	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	227,625,329.81	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MBANK PHILIPPINES	0.00	207,926,965.58	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	547,873,402.38	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	54,916,771.27	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEV'T BANK INC	0.00	83,568,781.61	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	76,004,399.27	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	35,969,012.75	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Grand Total	358,025,166,994.85	1,026,838,650,829.81	77.64	3.49%	6.97%	10.46%	13.95%	17.43%