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Sunday, December 10, 2017

Philippine Postal Savings Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2017

Editor's Note: Data is culled from  the Published Statements of Condition of individual Philippine Banks found in www.bsp.gov.ph.  

This blog post updates previous blog posts such as Luzon Development Bank Ranks Third in Non-Performing Loans as % of Stockholder's Equity as of March 31, 2017 .


NPLs.  Short for Non-Performing Loans.  The NPL Ratio or the ratio of a bank's Non-Performing Loans (NPL) to Total Loan Portfolio (TLP) is a frequently cited figure in the general media to indicate a bank's financial health or the health of the banking system as a whole.  See: "Banks reduce exposure to bad debts, have more cash to loan out—BSP".

In the Philippine Banking Industry, Gross Non-Performing Loans stood at Php 141.16 billion as of June 30, 2017 - approximately 1.79% of the Philippine Banking Industry's Total Loan Portfolio of Php 7.89 trillion.



 
Philippine Banking System
NPL as % of TLP
June 30, 2017











Gross NPL/ Gross TLP
Bank Gross NPLs Gross TLP (In %)
PHIL STAR DEVELOPMENT BANK INC 13,618,385.28 24,003,889.89 56.73%
PHIL POSTAL SAVINGS BANK INC 2,508,468,000.93 5,744,862,007.68 43.66%
WORLD PARTNERS BANK (A THRIFT BANK) 133,433,965.51 369,686,690.87 36.09%
NORTHPOINT DEV'T BANK INC 149,218,964.78 449,150,708.70 33.22%
LEGAZPI SAVINGS BANK INC 443,499,654.38 1,415,760,781.53 31.33%
MALASIQUI PROGRESSIVE SLB, INC 10,424,229.25 36,431,051.83 28.61%
YUANTA SAVINGS BANK PHILIPPINES INC 111,437,808.32 516,512,250.10 21.58%
LUZON DEVELOPMENT BANK 620,534,810.05 2,991,488,024.55 20.74%
LIFE SAVINGS BANK INC 11,872,651.42 58,531,181.65 20.28%
PACIFIC ACE SAVINGS BANK INC 3,119,385.69 15,772,750.69 19.78%
MARITIME SAVINGS BANK CORPORATION 20,199,537.87 107,466,906.20 18.80%
BATAAN SAVINGS AND LOAN BANK 1,743,509.11 10,128,350.43 17.21%
CENTURY SAVINGS BANK CORPORATION 116,834,579.97 692,822,210.86 16.86%
ENTERPRISE BANK INC (A THRIFT BANK) 265,460,226.74 1,604,064,367.90 16.55%
HIYAS BANKING CORPORATION 33,790,616.12 208,215,849.28 16.23%
PAMPANGA DEVELOPMENT BANK 57,099,117.06 366,944,718.65 15.56%
BATAAN DEVELOPMENT BANK 24,610,014.94 174,057,468.61 14.14%
MALAYAN BANK SAVINGS AND MORT BANK INC 546,986,749.49 4,201,270,875.90 13.02%
FARMERS SAVINGS & LOAN BANK INC 23,955,544.69 188,594,771.12 12.70%
BANK OF MAKATI (A SAVINGS BANK) INC 2,426,621,205.73 20,957,004,378.31 11.58%
EQUICOM SAVINGS BANK INC 687,413,287.67 5,988,643,157.14 11.48%
PHILIPPINE VETERANS BANK 1,885,539,254.64 16,758,858,562.76 11.25%
BUSINESS AND CONSUMERS BANK (A DB) 16,128,146.05 154,460,142.22 10.44%
CITYSTATE SAVINGS BANK INC 193,616,529.68 1,887,050,253.00 10.26%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 181,830,591.66 1,797,510,042.45 10.12%
UCPB SAVINGS BANK 1,395,757,892.22 15,055,328,522.20 9.27%
METRO CEBU PUBLIC SAVINGS BANK 9,340,189.11 101,996,846.47 9.16%
UNIVERSITY SAVINGS BANK INC 45,539,112.82 526,361,065.61 8.65%
1ST VALLEY BANK INC A DEVELOPMENT BANK 477,431,496.72 5,527,314,375.37 8.64%
CORDILLERA SAVINGS BANK INC 14,699,719.72 178,797,531.30 8.22%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 761,527,575.16 9,299,769,222.36 8.19%
STANDARD CHARTERED BANK 2,124,358,234.46 26,517,602,158.24 8.01%
LEMERY SAVINGS & LOAN BANK, INC. 7,191,014.95 96,905,299.22 7.42%
THE PALAWAN BANK (PALAWAN DB) INC 18,005,142.63 258,528,705.91 6.96%
DUMAGUETE CITY DEV BANK INC 36,781,599.06 539,055,946.49 6.82%
WEALTH DEVELOPMENT BANK CORPORATION 403,775,183.43 5,984,334,601.14 6.75%
BPI DIRECT BANKO INC A SAVINGS BANK 418,418,339.45 6,424,193,135.91 6.51%
CHINA BANK SAVINGS INC 4,191,683,659.84 65,112,160,447.20 6.44%
RCBC SAVINGS BANK INC 4,652,860,907.38 76,554,903,760.24 6.08%
VILLAGE BANK INC (A THRIFT BANK) 27,161,103.56 456,263,485.47 5.95%
FIRST CONSOLIDATED BANK INC (A PDB) 627,943,191.24 11,487,688,139.91 5.47%
PRODUCERS SAVINGS BANK CORPORATION 422,122,515.34 8,223,544,581.17 5.13%
PHIL BANK OF COMMUNICATIONS 2,211,964,696.92 43,666,737,720.78 5.07%
EAST WEST BANKING CORP 8,861,543,566.15 195,935,086,514.69 4.52%
BANK ONE SAVINGS AND TRUST CORP. 49,945,137.26 1,177,424,186.44 4.24%
UNION BANK OF THE PHILS 8,259,433,549.04 208,888,293,486.98 3.95%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 976,793,580.15 25,308,236,991.16 3.86%
SUN SAVINGS BANK INC 30,479,368.03 790,707,284.98 3.85%
BPI FAMILY SAVINGS BANK INC 7,359,361,449.90 206,978,789,915.21 3.56%
PHIL SAVINGS BANK 4,663,782,199.22 137,284,935,320.22 3.40%
UNITED COCONUT PLANTERS BANK 4,917,354,031.38 151,898,678,830.37 3.24%
PNB SAVINGS BANK 1,239,695,234.28 38,448,538,161.78 3.22%
CITY SAVINGS BANK INC 1,971,533,165.39 64,808,566,114.24 3.04%
ASIA UNITED BANK CORPORATION 3,267,908,554.18 110,259,117,838.05 2.96%
BANK OF COMMERCE 1,873,088,010.81 64,572,419,929.18 2.90%
PHIL TRUST COMPANY 1,133,451,145.23 40,718,796,617.74 2.78%
OPTIMUM DEVELOPMENT BANK INC 46,514,017.84 1,824,062,451.72 2.55%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,506,845,532.18 59,832,170,952.55 2.52%
DEVELOPMENT BANK OF THE PHIL 5,997,967,764.28 255,357,901,271.69 2.35%
MAYBANK PHILIPPINES INCORPORATED 1,482,324,528.48 63,782,916,232.95 2.32%
PHIL NATIONAL BANK 8,741,296,203.55 406,007,564,166.96 2.15%
CARD SME BANK INC A THRIFT BANK 61,198,081.08 2,964,812,948.68 2.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 28,404,608.06 1,467,332,065.22 1.94%
MERCHANTS SAVINGS & LOAN ASSN INC 19,239,366.24 1,063,808,033.42 1.81%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 27,111,347.52 1,531,093,176.15 1.77%
INTER-ASIA DEVELOPMENT BANK 3,360,500.59 196,740,751.31 1.71%
HSBC SAVINGS BANK (PHILS) INC 55,779,275.15 3,326,551,492.83 1.68%
ROBINSONS BANK CORPORATION 728,263,391.43 45,002,536,685.69 1.62%
LAND BANK OF THE PHILIPPINES 9,262,350,625.37 597,070,440,527.28 1.55%
CTBC BANK (PHILIPPINES) CORP 445,600,591.58 30,113,559,202.69 1.48%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,213.72 13,511,454,457.84 1.40%
HONGKONG & SHANGHAI BANKING CORP 730,992,187.04 53,411,187,868.54 1.37%
ANZ BANKING GROUP LTD 404,087,064.26 30,258,183,641.96 1.34%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,222,336.47 441,949,465.84 1.18%
BDO UNIBANK INC 17,219,995,831.01 1,602,911,962,754.99 1.07%
CHINA BANKING CORP 3,584,955,716.65 346,056,738,479.43 1.04%
RIZAL COMM'L BANKING CORP 2,421,878,939.03 246,322,414,902.50 0.98%
BANK OF THE PHIL ISLANDS 8,232,869,548.41 858,088,783,388.17 0.96%
QUEZON COCONUT BANK INC (A THRIFT BANK) 487,619.50 62,550,620.15 0.78%
SECURITY BANK CORP 2,060,467,178.32 338,404,646,885.15 0.61%
BANGKOK BANK PUBLIC CO LTD 36,877,890.77 7,625,207,728.72 0.48%
METROPOLITAN BANK & TCO 4,034,181,576.50 937,179,787,242.82 0.43%
CITIBANK, N.A. 865,034,706.52 202,718,403,105.17 0.43%
KEB HANA BANK - MANILA BRANCH 28,097,202.88 6,711,417,348.85 0.42%
ING BANK N.V. 102.94 11,504,576,871.46 0.00%
BANK OF AMERICA N.A. 0.00 4,401,490,978.48 0.00%
BDO PRIVATE BANK, INC. 0.00 16,275,984,461.02 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 1,366,393,509.90 0.00%
DEUTSCHE BANK AG 0.00 26,625,764,812.98 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 13,000,000.00 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 1,399,236,007.52 0.00%
ISLA BANK(A THRIFT BANK) INC 0.00 648,537,760.12 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 24,535,367,101.15 0.00%
MEGA INT'L COMM'L BANK CO LTD 0.00 9,932,870,219.05 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0.00 43,606,223,152.87 0.00%
SHINHAN BANK - MANILA BRANCH 0.00 1,068,439,760.98 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 14,084,589,215.26 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 33,808,483,135.44 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 919,249,265.00 0.00%
Grand Total 141,158,760,279.43 7,893,236,752,228.85 1.79%





There are six Philippine Banks with a Gross NPL Ratio greater than 25.00% of Total Loan Portfolio (TLP).  These are as follows:

  1. Philippine Star Development Bank, Inc. (56.73% of TLP)
  2. Philippine Postal Savings Bank Inc. (43.66% of TLP)
  3. World Partners Bank (36.09% of TLP)
  4. Northpoint Development Bank, Inc. (33.22% of TLP)
  5. Legazpi Savings Bank Inc. (31.33% of TLP)
  6. Malasiqui Progressive SLB, Inc. (28.61% of TLP)


The ratio of a bank's NPLs to its total Stockholders Equity (SE) maybe more important than the ratio of its NPLs to Total Loan Portfolio.  The idea behind this is that NPLs are fragile things.  As a loan deteriorates, its recoverable value will deteriorate as well.  A foreclosure will most likely result in a loan recovery that is a mere fraction of the loan's original value.  Therefore, banks with high NPL Ratios relative to their Stockholders Equity may face a significant loss of capital if a substantial amount of their NPLs are written off as a loss.

On an overall basis, the Gross NPLs of Philippine Banks amounted to 8.79% of Stockholders Equity as of June 30, 2017.
 
 
Philippine Banking System
NPL as % of SE
June 30, 2017









NPL SE NPL/SE
Bank (In PHP) (In PHP) (In %)
PHIL POSTAL SAVINGS BANK INC 2,508,468,000.93 912,190,817.96 274.99%
WORLD PARTNERS BANK (A THRIFT BANK) 133,433,965.51 52,424,149.24 254.53%
ENTERPRISE BANK INC (A THRIFT BANK) 265,460,226.74 260,554,304.83 101.88%
LUZON DEVELOPMENT BANK 620,534,810.05 629,229,248.68 98.62%
EQUICOM SAVINGS BANK INC 687,413,287.67 698,949,675.95 98.35%
LEGAZPI SAVINGS BANK INC 443,499,654.38 523,899,957.52 84.65%
MARITIME SAVINGS BANK CORPORATION 20,199,537.87 36,992,452.11 54.60%
PHILIPPINE VETERANS BANK 1,885,539,254.64 3,656,411,884.82 51.57%
UCPB SAVINGS BANK 1,395,757,892.22 2,874,860,911.74 48.55%
MALAYAN BANK SAVINGS AND MORT BANK INC 546,986,749.49 1,150,344,697.77 47.55%
THE PALAWAN BANK (PALAWAN DB) INC 18,005,142.63 38,796,966.79 46.41%
CHINA BANK SAVINGS INC 4,191,683,659.84 9,092,992,464.87 46.10%
NORTHPOINT DEV'T BANK INC 149,218,964.78 353,822,818.80 42.17%
RCBC SAVINGS BANK INC 4,652,860,907.38 11,066,842,802.53 42.04%
PAMPANGA DEVELOPMENT BANK 57,099,117.06 148,804,323.34 38.37%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 976,793,580.15 2,575,933,166.93 37.92%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 181,830,591.66 508,641,109.11 35.75%
BANK OF MAKATI (A SAVINGS BANK) INC 2,426,621,205.73 6,841,303,912.90 35.47%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 761,527,575.16 2,241,413,365.37 33.98%
VILLAGE BANK INC (A THRIFT BANK) 27,161,103.56 82,448,387.65 32.94%
STANDARD CHARTERED BANK 2,124,358,234.46 6,626,619,569.47 32.06%
BATAAN DEVELOPMENT BANK 24,610,014.94 79,339,385.37 31.02%
1ST VALLEY BANK INC A DEVELOPMENT BANK 477,431,496.72 1,559,682,991.33 30.61%
CITYSTATE SAVINGS BANK INC 193,616,529.68 679,648,386.14 28.49%
BPI FAMILY SAVINGS BANK INC 7,359,361,449.90 26,009,110,830.94 28.30%
UNITED COCONUT PLANTERS BANK 4,917,354,031.38 17,763,321,160.41 27.68%
WEALTH DEVELOPMENT BANK CORPORATION 403,775,183.43 1,460,127,640.46 27.65%
PRODUCERS SAVINGS BANK CORPORATION 422,122,515.34 1,673,043,542.61 25.23%
EAST WEST BANKING CORP 8,861,543,566.15 36,123,097,471.69 24.53%
PHIL SAVINGS BANK 4,663,782,199.22 19,934,184,692.96 23.40%
METRO CEBU PUBLIC SAVINGS BANK 9,340,189.11 42,310,913.26 22.08%
PHIL BANK OF COMMUNICATIONS 2,211,964,696.92 10,478,096,577.25 21.11%
BPI DIRECT BANKO INC A SAVINGS BANK 418,418,339.45 2,009,459,844.76 20.82%
HIYAS BANKING CORPORATION 33,790,616.12 168,276,907.07 20.08%
MALASIQUI PROGRESSIVE SLB, INC 10,424,229.25 52,405,777.66 19.89%
BUSINESS AND CONSUMERS BANK (A DB) 16,128,146.05 88,581,716.32 18.21%
LIFE SAVINGS BANK INC 11,872,651.42 66,621,234.31 17.82%
FARMERS SAVINGS & LOAN BANK INC 23,955,544.69 139,534,469.05 17.17%
CITY SAVINGS BANK INC 1,971,533,165.39 11,948,734,053.08 16.50%
SUN SAVINGS BANK INC 30,479,368.03 188,151,300.87 16.20%
FIRST CONSOLIDATED BANK INC (A PDB) 627,943,191.24 4,069,474,830.97 15.43%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,506,845,532.18 9,994,689,897.65 15.08%
PHIL STAR DEVELOPMENT BANK INC 13,618,385.28 95,515,586.09 14.26%
DEVELOPMENT BANK OF THE PHIL 5,997,967,764.28 45,033,443,004.31 13.32%
DUMAGUETE CITY DEV BANK INC 36,781,599.06 278,933,034.72 13.19%
ASIA UNITED BANK CORPORATION 3,267,908,554.18 25,064,533,136.71 13.04%
UNION BANK OF THE PHILS 8,259,433,549.04 64,204,605,698.79 12.86%
BANK OF COMMERCE 1,873,088,010.81 15,424,614,405.04 12.14%
MAYBANK PHILIPPINES INCORPORATED 1,482,324,528.48 12,511,305,008.97 11.85%
CENTURY SAVINGS BANK CORPORATION 116,834,579.97 990,519,115.21 11.80%
YUANTA SAVINGS BANK PHILIPPINES INC 111,437,808.32 981,621,561.60 11.35%
UNIVERSITY SAVINGS BANK INC 45,539,112.82 413,906,362.05 11.00%
PNB SAVINGS BANK 1,239,695,234.28 11,581,800,819.39 10.70%
CORDILLERA SAVINGS BANK INC 14,699,719.72 141,590,159.34 10.38%
ANZ BANKING GROUP LTD 404,087,064.26 4,135,436,214.83 9.77%
LAND BANK OF THE PHILIPPINES 9,262,350,625.37 97,365,420,357.98 9.51%
LEMERY SAVINGS & LOAN BANK, INC. 7,191,014.95 80,394,408.65 8.94%
BANK ONE SAVINGS AND TRUST CORP. 49,945,137.26 578,405,928.29 8.63%
PHIL NATIONAL BANK 8,741,296,203.55 104,375,401,959.76 8.37%
CARD SME BANK INC A THRIFT BANK 61,198,081.08 803,246,783.04 7.62%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,213.72 2,548,322,917.53 7.42%
CTBC BANK (PHILIPPINES) CORP 445,600,591.58 7,015,996,583.56 6.35%
ROBINSONS BANK CORPORATION 728,263,391.43 12,194,350,959.91 5.97%
BDO UNIBANK INC 17,219,995,831.01 288,498,827,105.70 5.97%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 27,111,347.52 461,655,272.10 5.87%
CITIBANK, N.A. 865,034,706.52 15,937,194,194.65 5.43%
OPTIMUM DEVELOPMENT BANK INC 46,514,017.84 860,541,306.24 5.41%
HONGKONG & SHANGHAI BANKING CORP 730,992,187.04 13,714,790,245.53 5.33%
INTER-ASIA DEVELOPMENT BANK 3,360,500.59 64,662,908.40 5.20%
BANK OF THE PHIL ISLANDS 8,232,869,548.41 169,327,181,092.42 4.86%
CHINA BANKING CORP 3,584,955,716.65 74,140,331,250.87 4.84%
PACIFIC ACE SAVINGS BANK INC 3,119,385.69 65,069,098.63 4.79%
PHIL TRUST COMPANY 1,133,451,145.23 24,847,284,852.16 4.56%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 28,404,608.06 653,165,592.73 4.35%
RIZAL COMM'L BANKING CORP 2,421,878,939.03 63,346,291,997.40 3.82%
MERCHANTS SAVINGS & LOAN ASSN INC 19,239,366.24 618,763,558.14 3.11%
BATAAN SAVINGS AND LOAN BANK 1,743,509.11 57,872,042.86 3.01%
HSBC SAVINGS BANK (PHILS) INC 55,779,275.15 1,860,699,367.91 3.00%
METROPOLITAN BANK & TCO 4,034,181,576.50 194,923,419,998.34 2.07%
SECURITY BANK CORP 2,060,467,178.32 99,567,769,614.34 2.07%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,222,336.47 273,304,452.83 1.91%
KEB HANA BANK - MANILA BRANCH 28,097,202.88 1,597,687,658.29 1.76%
BANGKOK BANK PUBLIC CO LTD 36,877,890.77 3,129,192,807.98 1.18%
QUEZON COCONUT BANK INC (A THRIFT BANK) 487,619.50 58,516,892.71 0.83%
ING BANK N.V. 102.94 2,500,805,709.15 0.00%
BANK OF AMERICA N.A. 0.00 2,091,322,952.20 0.00%
BDO PRIVATE BANK, INC. 0.00 5,603,416,533.66 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 2,137,859,788.27 0.00%
DEUTSCHE BANK AG 0.00 2,364,070,153.81 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 2,025,837,707.46 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 2,247,987,353.43 0.00%
ISLA BANK(A THRIFT BANK) INC 0.00 670,867,337.69 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 1,295,542,287.45 0.00%
MEGA INT'L COMM'L BANK CO LTD 0.00 1,824,886,709.42 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0.00 5,510,141,315.34 0.00%
SHINHAN BANK - MANILA BRANCH 0.00 2,202,945,627.45 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 12,958,404,539.93 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 4,594,769,708.68 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 2,362,004,659.17 0.00%
Grand Total 141,158,760,279.43 1,605,115,818,311.65 8.79%
 
 
 
 
 
 
Of the 99 banks in this list, twenty-three banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of June 30, 2017.  These banks are as follows:

  1. Philippine Postal Savings Bank (274.99% of SE)
  2. World Partners Bank (254.53% of SE)
  3. Enterprise Bank (101.88% of SE)
  4. Luzon Development Bank (98.62% of SE)
  5. Equicom Savings Bank (98.35% of SE)
  6. Legazpi Savings Bank (84.65% of SE)
  7. Maritime Savings Bank Corporation (54.60% of SE)
  8. Philippine Veterans Bank (51.57% of SE)
  9. UCPB Savings Bank (48.55% of SE)
  10. Malayan Bank Savings and Mortgage Bank (47.55% of SE)
  11. The Palawan Bank (46.41% of SE)
  12. China Bank Savings (46.10% of SE)
  13. Northpoint Development Bank (42.17% of SE)
  14. RCBC Savings Bank (42.04% of SE)
  15. Pampanga Development Bank (38.37% of SE)
  16. Sterling Bank of Asia (37.92% of SE)
  17. Penbank Inc (35.75% of SE)
  18. Bank of Makati (35.47% of SE)
  19. Philippine Resources Savings Banking Corporation (33.98% of SE)
  20. Village Bank Inc (32.94% of SE)
  21. Standard Chartered Bank (32.06% of SE)
  22. Bataan Development Bank (31.02% of SE)
  23. 1st Valley Bank Inc (30.61% of SE)
Source: www.bsp.gov.ph

Sunday, December 3, 2017

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - June 30, 2017

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of June 30, 2017", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 2.05% as of March 31, 2017, is below the historic average of 4.14% for the last thirty-four years.
 

Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses. Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 36 banks (highlighted in yellow, failed banks in red) fall into this deficiency.




Philippine Banking System
NPL Coverage Ratio
June 30, 2017








Bank Loan Loss Provisions Gross NPLs NPL Coverage Ratio
PHIL POSTAL SAVINGS BANK INC 357,874,671.93 2,508,468,000.93 14.27%
CENTURY SAVINGS BANK CORPORATION 19,702,529.95 116,834,579.97 16.86%
LUZON DEVELOPMENT BANK 160,155,920.54 620,534,810.05 25.81%
CITYSTATE SAVINGS BANK INC 59,994,294.63 193,616,529.68 30.99%
MALAYAN BANK SAVINGS AND MORT BANK INC 175,509,963.35 546,986,749.49 32.09%
WEALTH DEVELOPMENT BANK CORPORATION 135,603,476.89 403,775,183.43 33.58%
MARITIME SAVINGS BANK CORPORATION 6,948,645.24 20,199,537.87 34.40%
LIFE SAVINGS BANK INC 4,875,321.67 11,872,651.42 41.06%
PRODUCERS SAVINGS BANK CORPORATION 186,386,253.06 422,122,515.34 44.15%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 343,270,818.50 761,527,575.16 45.08%
ENTERPRISE BANK INC (A THRIFT BANK) 121,353,813.66 265,460,226.74 45.71%
UCPB SAVINGS BANK 658,576,971.59 1,395,757,892.22 47.18%
OPTIMUM DEVELOPMENT BANK INC 23,226,813.08 46,514,017.84 49.94%
PNB SAVINGS BANK 619,148,631.20 1,239,695,234.28 49.94%
RCBC SAVINGS BANK INC 2,336,453,414.48 4,652,860,907.38 50.22%
CHINA BANK SAVINGS INC 2,104,998,233.03 4,191,683,659.84 50.22%
1ST VALLEY BANK INC A DEVELOPMENT BANK 242,450,059.72 477,431,496.72 50.78%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 93,321,723.07 181,830,591.66 51.32%
DUMAGUETE CITY DEV BANK INC 19,299,237.59 36,781,599.06 52.47%
PAMPANGA DEVELOPMENT BANK 30,044,816.72 57,099,117.06 52.62%
SUN SAVINGS BANK INC 16,623,106.68 30,479,368.03 54.54%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 2,895,858.92 5,222,336.47 55.45%
BUSINESS AND CONSUMERS BANK (A DB) 9,000,644.49 16,128,146.05 55.81%
WORLD PARTNERS BANK (A THRIFT BANK) 74,823,694.59 133,433,965.51 56.08%
EQUICOM SAVINGS BANK INC 386,892,724.13 687,413,287.67 56.28%
LEMERY SAVINGS & LOAN BANK, INC. 4,199,311.94 7,191,014.95 58.40%
CITY SAVINGS BANK INC 1,284,737,999.34 1,971,533,165.39 65.16%
EAST WEST BANKING CORP 5,818,548,434.79 8,861,543,566.15 65.66%
NORTHPOINT DEV'T BANK INC 98,469,145.17 149,218,964.78 65.99%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 650,798,038.92 976,793,580.15 66.63%
MALASIQUI PROGRESSIVE SLB, INC 6,951,706.48 10,424,229.25 66.69%
PHIL STAR DEVELOPMENT BANK INC 9,276,107.75 13,618,385.28 68.11%
ASIA UNITED BANK CORPORATION 2,229,528,418.29 3,267,908,554.18 68.22%
STANDARD CHARTERED BANK 1,456,478,430.25 2,124,358,234.46 68.56%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 21,768,684.13 28,404,608.06 76.64%
UNITED COCONUT PLANTERS BANK 3,852,480,912.89 4,917,354,031.38 78.34%
VILLAGE BANK INC (A THRIFT BANK) 21,809,265.59 27,161,103.56 80.30%
PHILIPPINE VETERANS BANK 1,535,198,406.41 1,885,539,254.64 81.42%
BANK OF MAKATI (A SAVINGS BANK) INC 2,005,105,929.08 2,426,621,205.73 82.63%
ANZ BANKING GROUP LTD 342,757,553.61 404,087,064.26 84.82%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,279,994,157.48 1,506,845,532.18 84.95%
HIYAS BANKING CORPORATION 28,859,545.81 33,790,616.12 85.41%
LEGAZPI SAVINGS BANK INC 384,298,646.39 443,499,654.38 86.65%
BANK ONE SAVINGS AND TRUST CORP. 44,384,460.48 49,945,137.26 88.87%
BATAAN SAVINGS AND LOAN BANK 1,595,044.62 1,743,509.11 91.48%
PHIL BANK OF COMMUNICATIONS 2,092,521,170.10 2,211,964,696.92 94.60%
UNIVERSITY SAVINGS BANK INC 43,142,434.66 45,539,112.82 94.74%
BATAAN DEVELOPMENT BANK 23,381,061.33 24,610,014.94 95.01%
CORDILLERA SAVINGS BANK INC 14,015,675.60 14,699,719.72 95.35%
MAYBANK PHILIPPINES INCORPORATED 1,436,842,704.45 1,482,324,528.48 96.93%
PHIL SAVINGS BANK 4,527,930,996.18 4,663,782,199.22 97.09%
PACIFIC ACE SAVINGS BANK INC 3,128,611.95 3,119,385.69 100.30%
FIRST CONSOLIDATED BANK INC (A PDB) 633,649,703.87 627,943,191.24 100.91%
YUANTA SAVINGS BANK PHILIPPINES INC 113,002,632.40 111,437,808.32 101.40%
BPI DIRECT BANKO INC A SAVINGS BANK 426,727,495.49 418,418,339.45 101.99%
BPI FAMILY SAVINGS BANK INC 7,616,560,134.69 7,359,361,449.90 103.49%
ROBINSONS BANK CORPORATION 761,921,536.86 728,263,391.43 104.62%
UNION BANK OF THE PHILS 8,774,213,022.72 8,259,433,549.04 106.23%
FARMERS SAVINGS & LOAN BANK INC 26,399,254.88 23,955,544.69 110.20%
BANK OF COMMERCE 2,086,719,395.96 1,873,088,010.81 111.41%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 30,536,538.60 27,111,347.52 112.63%
DEVELOPMENT BANK OF THE PHIL 6,802,472,785.88 5,997,967,764.28 113.41%
LAND BANK OF THE PHILIPPINES 11,053,909,581.50 9,262,350,625.37 119.34%
THE PALAWAN BANK (PALAWAN DB) INC 22,860,428.44 18,005,142.63 126.97%
PHIL NATIONAL BANK 11,348,888,348.51 8,741,296,203.55 129.83%
HONGKONG & SHANGHAI BANKING CORP 953,505,195.76 730,992,187.04 130.44%
MERCHANTS SAVINGS & LOAN ASSN INC 27,097,442.64 19,239,366.24 140.84%
RIZAL COMM'L BANKING CORP 3,606,671,541.39 2,421,878,939.03 148.92%
BDO UNIBANK INC 26,220,282,031.37 17,219,995,831.01 152.27%
CHINA BANKING CORP 5,691,144,793.68 3,584,955,716.65 158.75%
CTBC BANK (PHILIPPINES) CORP 710,167,055.45 445,600,591.58 159.37%
METRO CEBU PUBLIC SAVINGS BANK 15,330,468.00 9,340,189.11 164.13%
CARD SME BANK INC A THRIFT BANK 103,002,490.35 61,198,081.08 168.31%
HSBC SAVINGS BANK (PHILS) INC 97,132,862.18 55,779,275.15 174.14%
BANK OF CHINA LIMITED-MANILA BRANCH 345,633,304.81 188,969,213.72 182.90%
BANK OF THE PHIL ISLANDS 15,604,216,249.63 8,232,869,548.41 189.54%
INTER-ASIA DEVELOPMENT BANK 7,516,272.01 3,360,500.59 223.67%
PHIL TRUST COMPANY 2,548,490,220.90 1,133,451,145.23 224.84%
SECURITY BANK CORP 5,062,176,525.28 2,060,467,178.32 245.68%
KEB HANA BANK - MANILA BRANCH 75,282,710.49 28,097,202.88 267.94%
QUEZON COCONUT BANK INC (A THRIFT BANK) 1,532,986.81 487,619.50 314.38%
METROPOLITAN BANK & TCO 13,301,874,284.70 4,034,181,576.50 329.73%
CITIBANK, N.A. 3,777,566,405.06 865,034,706.52 436.70%
BANGKOK BANK PUBLIC CO LTD 397,961,875.00 36,877,890.77 1079.13%
ING BANK N.V. 89,189,915.61 102.94 86642622.51%
BANK OF AMERICA N.A. 27,700,000.00 0.00 NA
BDO PRIVATE BANK, INC. 70,399,580.54 0.00 NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH 10,864,796.19 0.00 NA
DEUTSCHE BANK AG 131,762,906.86 0.00 NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH 130,000.00 0.00 NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH 14,009,143.61 0.00 NA
ISLA BANK(A THRIFT BANK) INC 4,290,580.33 0.00 NA
JP MORGAN CHASE BANK NATIONAL ASSN. 19,265,114.78 0.00 NA
MEGA INT'L COMM'L BANK CO LTD 117,954,871.21 0.00 NA
MIZUHO BANK LTD - MANILA BRANCH 411,989,429.55 0.00 NA
SHINHAN BANK - MANILA BRANCH 10,458,964.04 0.00 NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 90,545,929.42 0.00 NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 388,210,030.46 0.00 NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 6,848,912.55 0.00 NA
Grand Total 167,045,700,242.86 141,158,760,279.43 118.34%





Raising the NPL Coverage Ratio to a minimum of 80% will entail additional loan loss provisions for some banks that could eat into a substantial chunk (20% or more) of their Stockholder's Equity.  Based on the table below, four banks will be severely affected:



Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
June 30, 2017










Bank Gross NPLs Minimum Loan Loss Provisions at 80% NPL Coverage Ratio Stockholder's Equity Impact on SE
PHIL POSTAL SAVINGS BANK INC 2,508,468,000.93 2,006,774,400.74 912,190,817.96 -180.76%
WORLD PARTNERS BANK (A THRIFT BANK) 133,433,965.51 106,747,172.41 52,424,149.24 -60.89%
LUZON DEVELOPMENT BANK 620,534,810.05 496,427,848.04 629,229,248.68 -53.44%
ENTERPRISE BANK INC (A THRIFT BANK) 265,460,226.74 212,368,181.39 260,554,304.83 -34.93%
MARITIME SAVINGS BANK CORPORATION 20,199,537.87 16,159,630.30 36,992,452.11 -24.90%
EQUICOM SAVINGS BANK INC 687,413,287.67 549,930,630.14 698,949,675.95 -23.33%
MALAYAN BANK SAVINGS AND MORT BANK INC 546,986,749.49 437,589,399.59 1,150,344,697.77 -22.78%
UCPB SAVINGS BANK 1,395,757,892.22 1,116,606,313.78 2,874,860,911.74 -15.93%
CITYSTATE SAVINGS BANK INC 193,616,529.68 154,893,223.74 679,648,386.14 -13.96%
CHINA BANK SAVINGS INC 4,191,683,659.84 3,353,346,927.87 9,092,992,464.87 -13.73%
WEALTH DEVELOPMENT BANK CORPORATION 403,775,183.43 323,020,146.74 1,460,127,640.46 -12.84%
RCBC SAVINGS BANK INC 4,652,860,907.38 3,722,288,725.90 11,066,842,802.53 -12.52%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 761,527,575.16 609,222,060.13 2,241,413,365.37 -11.87%
PAMPANGA DEVELOPMENT BANK 57,099,117.06 45,679,293.65 148,804,323.34 -10.51%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 181,830,591.66 145,464,473.33 508,641,109.11 -10.25%
PRODUCERS SAVINGS BANK CORPORATION 422,122,515.34 337,698,012.27 1,673,043,542.61 -9.04%
1ST VALLEY BANK INC A DEVELOPMENT BANK 477,431,496.72 381,945,197.38 1,559,682,991.33 -8.94%
CENTURY SAVINGS BANK CORPORATION 116,834,579.97 93,467,663.98 990,519,115.21 -7.45%
LIFE SAVINGS BANK INC 11,872,651.42 9,498,121.14 66,621,234.31 -6.94%
NORTHPOINT DEV'T BANK INC 149,218,964.78 119,375,171.82 353,822,818.80 -5.91%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 976,793,580.15 781,434,864.12 2,575,933,166.93 -5.07%
BUSINESS AND CONSUMERS BANK (A DB) 16,128,146.05 12,902,516.84 88,581,716.32 -4.40%
SUN SAVINGS BANK INC 30,479,368.03 24,383,494.42 188,151,300.87 -4.12%
STANDARD CHARTERED BANK 2,124,358,234.46 1,699,486,587.57 6,626,619,569.47 -3.67%
DUMAGUETE CITY DEV BANK INC 36,781,599.06 29,425,279.25 278,933,034.72 -3.63%
EAST WEST BANKING CORP 8,861,543,566.15 7,089,234,852.92 36,123,097,471.69 -3.52%
PNB SAVINGS BANK 1,239,695,234.28 991,756,187.42 11,581,800,819.39 -3.22%
MALASIQUI PROGRESSIVE SLB, INC 10,424,229.25 8,339,383.40 52,405,777.66 -2.65%
CITY SAVINGS BANK INC 1,971,533,165.39 1,577,226,532.31 11,948,734,053.08 -2.45%
LEMERY SAVINGS & LOAN BANK, INC. 7,191,014.95 5,752,811.96 80,394,408.65 -1.93%
PHIL STAR DEVELOPMENT BANK INC 13,618,385.28 10,894,708.22 95,515,586.09 -1.69%
OPTIMUM DEVELOPMENT BANK INC 46,514,017.84 37,211,214.27 860,541,306.24 -1.63%
ASIA UNITED BANK CORPORATION 3,267,908,554.18 2,614,326,843.34 25,064,533,136.71 -1.54%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,222,336.47 4,177,869.18 273,304,452.83 -0.47%
UNITED COCONUT PLANTERS BANK 4,917,354,031.38 3,933,883,225.10 17,763,321,160.41 -0.46%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 28,404,608.06 22,723,686.45 653,165,592.73 -0.15%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 0.00 2,025,837,707.46 0.01%
VILLAGE BANK INC (A THRIFT BANK) 27,161,103.56 21,728,882.85 82,448,387.65 0.10%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 0.00 2,362,004,659.17 0.29%
BATAAN SAVINGS AND LOAN BANK 1,743,509.11 1,394,807.29 57,872,042.86 0.35%
ANZ BANKING GROUP LTD 404,087,064.26 323,269,651.41 4,135,436,214.83 0.47%
SHINHAN BANK - MANILA BRANCH 0.00 0.00 2,202,945,627.45 0.47%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 0.00 2,137,859,788.27 0.51%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 0.00 2,247,987,353.43 0.62%
ISLA BANK(A THRIFT BANK) INC 0.00 0.00 670,867,337.69 0.64%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 0.00 12,958,404,539.93 0.70%
PHILIPPINE VETERANS BANK 1,885,539,254.64 1,508,431,403.71 3,656,411,884.82 0.73%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,506,845,532.18 1,205,476,425.74 9,994,689,897.65 0.75%
BANK ONE SAVINGS AND TRUST CORP. 49,945,137.26 39,956,109.81 578,405,928.29 0.77%
BANK OF MAKATI (A SAVINGS BANK) INC 2,426,621,205.73 1,941,296,964.58 6,841,303,912.90 0.93%
PACIFIC ACE SAVINGS BANK INC 3,119,385.69 2,495,508.55 65,069,098.63 0.97%
HIYAS BANKING CORPORATION 33,790,616.12 27,032,492.90 168,276,907.07 1.09%
BDO PRIVATE BANK, INC. 0.00 0.00 5,603,416,533.66 1.26%
BANK OF AMERICA N.A. 0.00 0.00 2,091,322,952.20 1.32%
ROBINSONS BANK CORPORATION 728,263,391.43 582,610,713.14 12,194,350,959.91 1.47%
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 0.00 1,295,542,287.45 1.49%
CORDILLERA SAVINGS BANK INC 14,699,719.72 11,759,775.78 141,590,159.34 1.59%
UNIVERSITY SAVINGS BANK INC 45,539,112.82 36,431,290.26 413,906,362.05 1.62%
MERCHANTS SAVINGS & LOAN ASSN INC 19,239,366.24 15,391,492.99 618,763,558.14 1.89%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 27,111,347.52 21,689,078.02 461,655,272.10 1.92%
QUEZON COCONUT BANK INC (A THRIFT BANK) 487,619.50 390,095.60 58,516,892.71 1.95%
MAYBANK PHILIPPINES INCORPORATED 1,482,324,528.48 1,185,859,622.78 12,511,305,008.97 2.01%
YUANTA SAVINGS BANK PHILIPPINES INC 111,437,808.32 89,150,246.66 981,621,561.60 2.43%
RIZAL COMM'L BANKING CORP 2,421,878,939.03 1,937,503,151.22 63,346,291,997.40 2.63%
HONGKONG & SHANGHAI BANKING CORP 730,992,187.04 584,793,749.63 13,714,790,245.53 2.69%
HSBC SAVINGS BANK (PHILS) INC 55,779,275.15 44,623,420.12 1,860,699,367.91 2.82%
PHIL BANK OF COMMUNICATIONS 2,211,964,696.92 1,769,571,757.54 10,478,096,577.25 3.08%
FIRST CONSOLIDATED BANK INC (A PDB) 627,943,191.24 502,354,552.99 4,069,474,830.97 3.23%
KEB HANA BANK - MANILA BRANCH 28,097,202.88 22,477,762.30 1,597,687,658.29 3.31%
UNION BANK OF THE PHILS 8,259,433,549.04 6,607,546,839.23 64,204,605,698.79 3.37%
SECURITY BANK CORP 2,060,467,178.32 1,648,373,742.66 99,567,769,614.34 3.43%
ING BANK N.V. 102.94 82.35 2,500,805,709.15 3.57%
LAND BANK OF THE PHILIPPINES 9,262,350,625.37 7,409,880,500.30 97,365,420,357.98 3.74%
CHINA BANKING CORP 3,584,955,716.65 2,867,964,573.32 74,140,331,250.87 3.81%
BANK OF COMMERCE 1,873,088,010.81 1,498,470,408.65 15,424,614,405.04 3.81%
PHIL SAVINGS BANK 4,663,782,199.22 3,731,025,759.38 19,934,184,692.96 4.00%
PHIL NATIONAL BANK 8,741,296,203.55 6,993,036,962.84 104,375,401,959.76 4.17%
BDO UNIBANK INC 17,219,995,831.01 13,775,996,664.81 288,498,827,105.70 4.31%
DEVELOPMENT BANK OF THE PHIL 5,997,967,764.28 4,798,374,211.42 45,033,443,004.31 4.45%
BPI DIRECT BANKO INC A SAVINGS BANK 418,418,339.45 334,734,671.56 2,009,459,844.76 4.58%
BATAAN DEVELOPMENT BANK 24,610,014.94 19,688,011.95 79,339,385.37 4.65%
CTBC BANK (PHILIPPINES) CORP 445,600,591.58 356,480,473.26 7,015,996,583.56 5.04%
METROPOLITAN BANK & TCO 4,034,181,576.50 3,227,345,261.20 194,923,419,998.34 5.17%
FARMERS SAVINGS & LOAN BANK INC 23,955,544.69 19,164,435.75 139,534,469.05 5.18%
BANK OF THE PHIL ISLANDS 8,232,869,548.41 6,586,295,638.73 169,327,181,092.42 5.33%
DEUTSCHE BANK AG 0.00 0.00 2,364,070,153.81 5.57%
LEGAZPI SAVINGS BANK INC 443,499,654.38 354,799,723.50 523,899,957.52 5.63%
MEGA INT'L COMM'L BANK CO LTD 0.00 0.00 1,824,886,709.42 6.46%
PHIL TRUST COMPANY 1,133,451,145.23 906,760,916.18 24,847,284,852.16 6.61%
BPI FAMILY SAVINGS BANK INC 7,359,361,449.90 5,887,489,159.92 26,009,110,830.94 6.65%
CARD SME BANK INC A THRIFT BANK 61,198,081.08 48,958,464.86 803,246,783.04 6.73%
INTER-ASIA DEVELOPMENT BANK 3,360,500.59 2,688,400.47 64,662,908.40 7.47%
MIZUHO BANK LTD - MANILA BRANCH 0.00 0.00 5,510,141,315.34 7.48%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,213.72 151,175,370.98 2,548,322,917.53 7.63%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 0.00 4,594,769,708.68 8.45%
BANGKOK BANK PUBLIC CO LTD 36,877,890.77 29,502,312.62 3,129,192,807.98 11.77%
METRO CEBU PUBLIC SAVINGS BANK 9,340,189.11 7,472,151.29 42,310,913.26 18.57%
CITIBANK, N.A. 865,034,706.52 692,027,765.22 15,937,194,194.65 19.36%
THE PALAWAN BANK (PALAWAN DB) INC 18,005,142.63 14,404,114.10 38,796,966.79 21.80%
Grand Total 141,158,760,279.43 112,927,008,223.54 1,605,115,818,311.65 3.37%





Source: www.bsp.gov.ph


All four banks highlighted in yellow have been regularly listed as one of the "The Top Distressed Philippine Banks as of June 30, 2017".

Philippine Postal Savings Bank Inc faces a shortfall of 180.76% of its stated stockholder's equity of Php 912.19 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%.