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Sunday, September 17, 2017

A Simple Stress Test of Philippine Banks as of March 31, 2017

Editor's Note: This is an updated version of an earlier blog post A Simple Stress Test of Philippine Banks as of December 31, 2016

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 217.88 billion or 1.58% of the Php 13,777.29 billion in assets held in the Philippine Banking System as of March 31, 2017).


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 139.25 billion or 8.97% of the PhP 1,552.38 billion in Stockholders Equity (SE) as of March 31, 2017.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

Naturally, some banks would be more affected than others. For more information regarding this, please read The Top Distressed Philippine Banks as of March 31, 2017).

The stockholder's equity of seven banks would be severely affected.  These banks are:


  1. Philippine Postal Savings Bank Inc (132.39% decline in SE)
  2. World Partners Bank (130.76% decline in SE)
  3. Luzon Development Bank (89.87% decline in SE)
  4. Enterprise Bank Inc (45.46% decline in SE)
  5. Equicom Savings Bank (43.55% decline in SE)
  6. Legazpi Savings Bank Inc (43.04% decline in SE)
  7. Maritime Savings Bank Corporation (33.20% decline in SE)
Philippine Banking System
NPL as % of SE
March 31, 2017









NPL SE NPL/SE
Bank (In PHP) (In PHP) (In %)
PHIL POSTAL SAVINGS BANK INC 2,526,517,914.79 954,200,832.74 264.78%
WORLD PARTNERS BANK (A THRIFT BANK) 112,362,449.20 42,964,068.18 261.53%
LUZON DEVELOPMENT BANK 620,878,345.67 345,425,448.65 179.74%
ENTERPRISE BANK INC (A THRIFT BANK) 252,043,502.46 277,185,285.45 90.93%
EQUICOM SAVINGS BANK INC 646,533,823.35 742,357,199.11 87.09%
LEGAZPI SAVINGS BANK INC 445,995,447.33 518,168,423.03 86.07%
MARITIME SAVINGS BANK CORPORATION 24,499,153.86 36,899,584.35 66.39%
MALAYAN BANK SAVINGS AND MORT BANK INC 565,547,649.98 1,021,229,750.21 55.38%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 980,710,424.09 1,922,167,223.77 51.02%
CHINA BANK SAVINGS INC 4,410,355,252.20 9,163,202,511.71 48.13%
PHILIPPINE VETERANS BANK 1,875,995,021.68 4,046,296,276.43 46.36%
UCPB SAVINGS BANK 1,254,581,397.45 2,819,058,997.52 44.50%
THE PALAWAN BANK (PALAWAN DB) INC 16,672,400.66 39,837,931.33 41.85%
RCBC SAVINGS BANK INC 4,431,477,476.10 10,695,425,583.02 41.43%
PAMPANGA DEVELOPMENT BANK 55,028,244.04 135,300,585.57 40.67%
METRO CEBU PUBLIC SAVINGS BANK 24,372,080.98 61,356,495.52 39.72%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 942,498,137.44 2,562,739,122.29 36.78%
UNITED COCONUT PLANTERS BANK 6,385,518,030.66 17,451,124,244.88 36.59%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 168,397,257.81 462,780,457.04 36.39%
BATAAN DEVELOPMENT BANK 27,407,967.11 77,568,284.11 35.33%
BANK OF MAKATI (A SAVINGS BANK) INC 2,272,945,790.64 6,556,445,019.72 34.67%
CITYSTATE SAVINGS BANK INC 221,868,254.68 692,872,698.83 32.02%
STANDARD CHARTERED BANK 2,124,976,632.70 6,667,508,845.95 31.87%
NORTHPOINT DEV'T BANK INC 99,959,947.40 344,690,779.53 29.00%
BPI FAMILY SAVINGS BANK INC 7,729,608,998.38 26,770,809,993.57 28.87%
1ST VALLEY BANK INC A DEVELOPMENT BANK 428,729,538.30 1,488,039,794.90 28.81%
PHIL SAVINGS BANK 4,666,176,343.64 19,291,936,376.39 24.19%
BPI DIRECT BANKO INC A SAVINGS BANK 429,252,061.73 1,808,195,890.33 23.74%
PRODUCERS SAVINGS BANK CORPORATION 386,138,239.27 1,644,599,363.96 23.48%
EAST WEST BANKING CORP 8,291,599,642.55 35,333,154,415.37 23.47%
VILLAGE BANK INC (A THRIFT BANK) 19,616,446.39 84,544,831.29 23.20%
PHIL BANK OF COMMUNICATIONS 2,279,691,946.18 10,278,350,767.42 22.18%
MALASIQUI PROGRESSIVE SLB, INC 11,106,429.25 52,213,426.23 21.27%
HIYAS BANKING CORPORATION 34,360,654.43 162,196,397.10 21.18%
WEALTH DEVELOPMENT BANK CORPORATION 292,932,364.95 1,428,158,118.24 20.51%
OPTIMUM DEVELOPMENT BANK INC 174,457,924.11 862,100,904.11 20.24%
LIFE SAVINGS BANK INC 12,898,716.79 66,685,537.96 19.34%
FARMERS SAVINGS & LOAN BANK INC 22,411,351.29 123,861,508.80 18.09%
BUSINESS AND CONSUMERS BANK (A DB) 14,191,495.90 87,093,685.39 16.29%
CITY SAVINGS BANK INC 1,760,688,973.83 11,258,212,430.01 15.64%
PHIL STAR DEVELOPMENT BANK INC 13,667,597.78 95,600,562.55 14.30%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,387,192,466.80 9,865,174,936.23 14.06%
MAYBANK PHILIPPINES INCORPORATED 1,661,195,995.76 11,942,769,431.31 13.91%
FIRST CONSOLIDATED BANK INC (A PDB) 525,049,637.72 3,921,398,077.44 13.39%
UNION BANK OF THE PHILS 7,993,445,459.90 62,091,195,752.80 12.87%
ASIA UNITED BANK CORPORATION 2,937,364,441.27 24,339,526,209.83 12.07%
CENTURY SAVINGS BANK CORPORATION 117,161,921.87 977,594,202.51 11.98%
CORDILLERA SAVINGS BANK INC 16,446,654.05 137,922,232.19 11.92%
DEVELOPMENT BANK OF THE PHIL 5,464,419,478.74 45,934,092,718.50 11.90%
BANK OF COMMERCE 1,799,079,182.21 15,153,876,740.35 11.87%
YUANTA SAVINGS BANK PHILIPPINES INC 110,104,219.27 984,463,916.70 11.18%
UNIVERSITY SAVINGS BANK INC 45,003,866.22 413,430,545.96 10.89%
SUN SAVINGS BANK INC 18,959,809.67 186,900,409.10 10.14%
ANZ BANKING GROUP LTD 404,087,064.26 4,104,226,806.61 9.85%
LEMERY SAVINGS & LOAN BANK, INC. 7,700,249.95 78,452,926.42 9.82%
LAND BANK OF THE PHILIPPINES 8,258,481,213.76 88,633,984,423.30 9.32%
PHIL NATIONAL BANK 9,094,274,085.32 102,462,349,335.36 8.88%
PNB SAVINGS BANK 1,015,744,779.07 11,591,387,229.87 8.76%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 36,229,903.75 450,501,970.48 8.04%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,213.72 2,441,975,318.50 7.74%
CARD SME BANK INC A THRIFT BANK 55,309,326.70 730,971,718.18 7.57%
INTER-ASIA DEVELOPMENT BANK 4,613,153.85 63,960,230.92 7.21%
DUMAGUETE CITY DEV BANK INC 17,886,472.35 262,559,613.94 6.81%
CHINA BANKING CORP 3,614,348,811.57 59,031,464,070.10 6.12%
CITIBANK, N.A. 850,812,713.59 14,095,242,099.44 6.04%
BDO UNIBANK INC 16,529,874,745.48 281,630,888,488.73 5.87%
ROBINSONS BANK CORPORATION 683,406,976.50 12,115,260,786.73 5.64%
HONGKONG & SHANGHAI BANKING CORP 746,769,210.95 13,344,344,650.98 5.60%
CTBC BANK (PHILIPPINES) CORP 357,499,065.12 6,943,609,350.32 5.15%
BANK OF THE PHIL ISLANDS 8,425,699,430.98 167,104,837,324.17 5.04%
PHIL TRUST COMPANY 1,138,050,603.05 24,035,572,042.30 4.73%
RIZAL COMM'L BANKING CORP 2,570,930,099.09 63,296,711,382.13 4.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 26,305,413.66 654,099,419.31 4.02%
BANK ONE SAVINGS AND TRUST CORP. 23,096,226.26 580,064,633.75 3.98%
BATAAN SAVINGS AND LOAN BANK 1,635,781.28 57,924,599.63 2.82%
MERCHANTS SAVINGS & LOAN ASSN INC 17,112,936.55 622,416,521.47 2.75%
SECURITY BANK CORP 2,209,369,283.42 98,491,544,960.42 2.24%
METROPOLITAN BANK & TCO 3,755,149,756.43 189,844,343,707.17 1.98%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,387,619.28 286,499,778.84 1.88%
KEB HANA BANK - MANILA BRANCH 28,066,201.64 1,587,936,331.22 1.77%
QUEZON COCONUT BANK INC (A THRIFT BANK) 764,046.72 59,014,544.28 1.29%
BANGKOK BANK PUBLIC CO LTD 37,877,890.77 3,098,933,162.94 1.22%
ING BANK N.V. 102.32 2,502,824,099.02 0.00%
BANK OF AMERICA N.A. 0.00 2,096,035,697.20 0.00%
BDO PRIVATE BANK, INC. 0.00 5,410,232,810.34 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 2,130,401,780.67 0.00%
DEUTSCHE BANK AG 0.00 2,257,001,851.98 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 2,031,188,854.41 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 2,222,941,066.65 0.00%
ISLA BANK(A THRIFT BANK) INC 0.00 667,526,085.03 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 1,318,053,765.87 0.00%
MEGA INT'L COMM'L BANK CO LTD 0.00 1,861,262,054.27 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0.00 5,574,888,253.17 0.00%
SHINHAN BANK - MANILA BRANCH 0.00 2,201,303,656.55 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 13,001,887,788.35 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 4,580,114,852.15 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 2,412,646,568.87 0.00%
MICROFINANCE MAXIMUM SB INC 11,538,108.54 -10,270,099.95 -112.35%
Grand Total 139,247,084,946.46 1,552,380,021,337.57 8.97%


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 loans 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 March 31, 2017, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 349.93 billion or almost 3 times the size of the Philippine Banking System's NPLs of PhP 139.25 billion for the same period.  Consequently, any write-offs of Classified Loans will have almost three times the impact of an NPL write-off.

Philippine Banking System
Classified Loans vs. NPLs
March 31, 2017







Classified Loans/NPL
Bank Classified Loans Gross NPLs (In %)
ING BANK N.V. 30,000,000.00 102.32 29319781.08%
BANK OF CHINA LIMITED-MANILA BRANCH 16,279,051,512.77 188,969,213.72 8614.66%
INTER-ASIA DEVELOPMENT BANK 248,961,155.00 4,613,153.85 5396.77%
QUEZON COCONUT BANK INC (A THRIFT BANK) 13,296,687.24 764,046.72 1740.30%
ROBINSONS BANK CORPORATION 7,399,721,000.00 683,406,976.50 1082.77%
YUANTA SAVINGS BANK PHILIPPINES INC 1,177,923,196.08 110,104,219.27 1069.83%
BANK ONE SAVINGS AND TRUST CORP. 211,776,802.54 23,096,226.26 916.93%
VILLAGE BANK INC (A THRIFT BANK) 171,691,000.00 19,616,446.39 875.24%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 223,630,937.63 26,305,413.66 850.13%
DUMAGUETE CITY DEV BANK INC 128,333,200.58 17,886,472.35 717.49%
PHIL TRUST COMPANY 7,695,000,000.00 1,138,050,603.05 676.16%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 220,917,762.55 36,229,903.75 609.77%
KEB HANA BANK - MANILA BRANCH 146,061,987.74 28,066,201.64 520.42%
BANK OF COMMERCE 8,733,341,364.12 1,799,079,182.21 485.43%
METROPOLITAN BANK & TCO 17,518,898,738.49 3,755,149,756.43 466.53%
CITIBANK, N.A. 3,640,116,299.87 850,812,713.59 427.84%
SECURITY BANK CORP 9,018,000,000.00 2,209,369,283.42 408.17%
BATAAN DEVELOPMENT BANK 102,400,000.00 27,407,967.11 373.61%
CHINA BANKING CORP 12,857,852,127.70 3,614,348,811.57 355.74%
CORDILLERA SAVINGS BANK INC 58,369,467.39 16,446,654.05 354.90%
PHIL NATIONAL BANK 31,117,271,203.83 9,094,274,085.32 342.16%
MAYBANK PHILIPPINES INCORPORATED 5,529,372,467.16 1,661,195,995.76 332.85%
UNIVERSITY SAVINGS BANK INC 140,047,123.16 45,003,866.22 311.19%
MALAYAN BANK SAVINGS AND MORT BANK INC 1,730,590,795.34 565,547,649.98 306.00%
UNION BANK OF THE PHILS 24,448,609,028.56 7,993,445,459.90 305.86%
PHIL SAVINGS BANK 14,064,980,690.81 4,666,176,343.64 301.42%
METRO CEBU PUBLIC SAVINGS BANK 69,873,900.28 24,372,080.98 286.70%
RIZAL COMM'L BANKING CORP 7,275,070,052.17 2,570,930,099.09 282.97%
BDO UNIBANK INC 45,944,748,586.32 16,529,874,745.48 277.95%
UNITED COCONUT PLANTERS BANK 17,194,349,897.69 6,385,518,030.66 269.27%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 14,086,000.00 5,387,619.28 261.45%
LAND BANK OF THE PHILIPPINES 20,316,296,990.17 8,258,481,213.76 246.01%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 2,305,455,320.91 980,710,424.09 235.08%
WORLD PARTNERS BANK (A THRIFT BANK) 233,248,015.31 112,362,449.20 207.59%
ASIA UNITED BANK CORPORATION 5,870,585,956.47 2,937,364,441.27 199.86%
LEGAZPI SAVINGS BANK INC 883,980,000.00 445,995,447.33 198.20%
DEVELOPMENT BANK OF THE PHIL 10,789,223,948.04 5,464,419,478.74 197.45%
PHIL STAR DEVELOPMENT BANK INC 26,922,007.94 13,667,597.78 196.98%
PHILIPPINE VETERANS BANK 3,486,613,522.42 1,875,995,021.68 185.85%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 306,709,326.96 168,397,257.81 182.13%
FIRST CONSOLIDATED BANK INC (A PDB) 952,700,667.65 525,049,637.72 181.45%
UCPB SAVINGS BANK 2,181,355,529.00 1,254,581,397.45 173.87%
BANK OF THE PHIL ISLANDS 14,421,243,615.42 8,425,699,430.98 171.16%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 2,367,490,000.00 1,387,192,466.80 170.67%
RCBC SAVINGS BANK INC 6,940,955,925.00 4,431,477,476.10 156.63%
CHINA BANK SAVINGS INC 6,731,417,361.15 4,410,355,252.20 152.63%
MARITIME SAVINGS BANK CORPORATION 37,130,657.86 24,499,153.86 151.56%
CTBC BANK (PHILIPPINES) CORP 534,693,605.84 357,499,065.12 149.57%
BPI FAMILY SAVINGS BANK INC 10,918,914,754.04 7,729,608,998.38 141.26%
LIFE SAVINGS BANK INC 17,512,163.62 12,898,716.79 135.77%
BANK OF MAKATI (A SAVINGS BANK) INC 2,977,949,117.72 2,272,945,790.64 131.02%
PRODUCERS SAVINGS BANK CORPORATION 494,118,240.10 386,138,239.27 127.96%
PHIL POSTAL SAVINGS BANK INC 3,207,201,326.40 2,526,517,914.79 126.94%
PNB SAVINGS BANK 1,246,507,690.93 1,015,744,779.07 122.72%
BPI DIRECT BANKO INC A SAVINGS BANK 519,601,077.18 429,252,061.73 121.05%
EQUICOM SAVINGS BANK INC 772,828,274.78 646,533,823.35 119.53%
OPTIMUM DEVELOPMENT BANK INC 204,039,798.99 174,457,924.11 116.96%
CENTURY SAVINGS BANK CORPORATION 136,054,603.51 117,161,921.87 116.13%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 1,080,783,000.00 942,498,137.44 114.67%
CITY SAVINGS BANK INC 1,967,614,331.37 1,760,688,973.83 111.75%
LUZON DEVELOPMENT BANK 662,154,665.50 620,878,345.67 106.65%
EAST WEST BANKING CORP 8,692,840,178.42 8,291,599,642.55 104.84%
1ST VALLEY BANK INC A DEVELOPMENT BANK 447,623,271.20 428,729,538.30 104.41%
NORTHPOINT DEV'T BANK INC 102,839,228.57 99,959,947.40 102.88%
STANDARD CHARTERED BANK 2,168,529,703.48 2,124,976,632.70 102.05%
LEMERY SAVINGS & LOAN BANK, INC. 7,706,907.84 7,700,249.95 100.09%
BANGKOK BANK PUBLIC CO LTD 37,877,890.77 37,877,890.77 100.00%
BATAAN SAVINGS AND LOAN BANK 1,635,781.28 1,635,781.28 100.00%
HIYAS BANKING CORPORATION 34,360,654.43 34,360,654.43 100.00%
MALASIQUI PROGRESSIVE SLB, INC 11,106,429.25 11,106,429.25 100.00%
SUN SAVINGS BANK INC 18,294,765.36 18,959,809.67 96.49%
PAMPANGA DEVELOPMENT BANK 51,802,617.57 55,028,244.04 94.14%
WEALTH DEVELOPMENT BANK CORPORATION 174,873,766.38 292,932,364.95 59.70%
PHIL BANK OF COMMUNICATIONS 1,208,974,290.46 2,279,691,946.18 53.03%
HONGKONG & SHANGHAI BANKING CORP 333,592,923.25 746,769,210.95 44.67%
ANZ BANKING GROUP LTD 246,404.86 404,087,064.26 0.06%
BUSINESS AND CONSUMERS BANK (A DB) 0.00 14,191,495.90 0.00%
CARD SME BANK INC A THRIFT BANK 0.00 55,309,326.70 0.00%
CITYSTATE SAVINGS BANK INC 0.00 221,868,254.68 0.00%
ENTERPRISE BANK INC (A THRIFT BANK) 0.00 252,043,502.46 0.00%
FARMERS SAVINGS & LOAN BANK INC 0.00 22,411,351.29 0.00%
MERCHANTS SAVINGS & LOAN ASSN INC 0.00 17,112,936.55 0.00%
MICROFINANCE MAXIMUM SB INC 0.00 11,538,108.54 0.00%
THE PALAWAN BANK (PALAWAN DB) INC 0.00 16,672,400.66 0.00%
BANK OF AMERICA N.A. 2,184,000.00 0.00 NA
BDO PRIVATE BANK, INC. 0.00 0.00 NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 0.00 NA
DEUTSCHE BANK AG 0.00 0.00 NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 0.00 NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 0.00 NA
ISLA BANK(A THRIFT BANK) INC 0.00 0.00 NA
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 0.00 NA
MEGA INT'L COMM'L BANK CO LTD 364,681,701.01 0.00 NA
MIZUHO BANK LTD - MANILA BRANCH 238,072,677.39 0.00 NA
SHINHAN BANK - MANILA BRANCH 0.00 0.00 NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 0.00 NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 35,862,400.00 0.00 NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 0.00 NA
Grand Total 349,928,750,070.82 139,247,084,946.46 251.30%

This level of classified loans should be measured against the bank's "capital cushion" or its ability to absorb losses.  Capital Cushion is normally defined as a bank's "Tangible Common Equity" plus its Loan Loss Reserves.  Tangible Common Equity (TCE) refers to the subset of shareholders' equity that is not preferred equity and not intangible assets.  So it excludes such items as Hybrid equity (like preferred shares) and goodwill.

By this measure, the level of "Classified Loans and other Risky Assets" amounts to Php 349.93 billion or 20.66% of the Php 1.69 trillion in Total Capital Cushion of Philippine Banks as of March 31, 2017.

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 20.66% 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 2.07% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 10.33%.

Individual Banks

A 10% write-off of Classified Loans would severely impact (by 30% or more) the Total Capital Cushion of two banks (severely affected banks highlighted in yellow).
  1. Bank of China Limited - Manila Branch (60.60% reduction in Total Capital Cushion)
  2. Inter-Asia Development Bank (37.34% reduction in Total Capital Cushion)

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


  1. Bank of China Limited - Manila Branch (121.20% reduction in Total Capital Cushion)
  2. Inter-Asia Development Bank (74.69% reduction in Total Capital Cushion)
  3. Philippine Postal Savings Bank Inc (46.26% reduction in Total Capital Cushion)
  4. World Partners Bank (45.45% reduction in Total Capital Cushion)
  5. Village Bank Inc (33.11% reduction in Total Capital Cushion)
  6. United Coconut Planters Bank (32.63% reduction in Total Capital Cushion)


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


  1. Bank of China Limited - Manila Branch (181.80% reduction in Total Capital Cushion)
  2. Inter-Asia Development Bank (112.03% reduction in Total Capital Cushion)
  3. Philippine Postal Savings Bank Inc (69.40% reduction in Total Capital Cushion)
  4. World Partners Bank (68.18% reduction in Total Capital Cushion)
  5. Village Bank Inc (49.67% reduction in Total Capital Cushion)
  6. United Coconut Planters Bank (48.94% reduction in Total Capital Cushion)
  7. Malayan Bank Savings and Mort Bank (40.69% reduction in Total Capital Cushion)
  8. Luzon Development Bank (38.06% reduction in Total Capital Cushion)
  9. Yuanta Savings Bank Philippines Inc (31.88% reduction in Total Capital Cushion)
  10. Bataan Development Bank (30.89% reduction in Total Capital Cushion)


A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of two banks and severely affect (reduce by 30% or more) the Total Capital Cushion of fourteen more banks:
  1. Bank of China Limited - Manila Branch (242.40% reduction in Total Capital Cushion)
  2. Inter-Asia Development Bank (149.37% reduction in Total Capital Cushion)
  3. Philippine Postal Savings Bank Inc (92.53% reduction in Total Capital Cushion)
  4. World Partners Bank (90.91% reduction in Total Capital Cushion)
  5. Village Bank Inc (66.22% reduction in Total Capital Cushion)
  6. United Coconut Planters Bank (65.25% reduction in Total Capital Cushion)
  7. Malayan Bank Savings and Mort Bank (54.26% reduction in Total Capital Cushion)
  8. Luzon Development Bank (50.75% reduction in Total Capital Cushion)
  9. Yuanta Savings Bank Philippines Inc (42.51% reduction in Total Capital Cushion)
  10. Bataan Development Bank (41.19% reduction in Total Capital Cushion)
  11. Legazpi Savings Bank (39.29% reduction in Total Capital Cushion)
  12. Metro Cebu Public Savings Bank (35.55% reduction in Total Capital Cushion)
  13. Philippine Resources Savings Banking Corporation (34.97% reduction in Total Capital Cushion)
  14. Equicom Savings Bank (33.63% reduction in Total Capital Cushion)
  15. Maritime Savings Bank Corporation (33.59% reduction in Total Capital Cushion)
  16. China Bank Savings Inc (30.70% reduction in Total Capital Cushion)

A 50% 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 thirteen more banks:

  1. Bank of China Limited - Manila Branch (303.00% reduction in Total Capital Cushion)
  2. Inter-Asia Development Bank (186.71% reduction in Total Capital Cushion)
  3. Philippine Postal Savings Bank Inc (115.66% reduction in Total Capital Cushion)
  4. World Partners Bank (113.64% reduction in Total Capital Cushion)
  5. Village Bank Inc (82.72% reduction in Total Capital Cushion)
  6. United Coconut Planters Bank (81.57% reduction in Total Capital Cushion)
  7. Malayan Bank Savings and Mort Bank (67.82% reduction in Total Capital Cushion)
  8. Luzon Development Bank (63.43% reduction in Total Capital Cushion)
  9. Yuanta Savings Bank Philippines Inc (53.14% reduction in Total Capital Cushion)
  10. Bataan Development Bank (51.49% reduction in Total Capital Cushion)
  11. Legazpi Savings Bank (49.12% reduction in Total Capital Cushion)
  12. Metro Cebu Public Savings Bank (44.44% reduction in Total Capital Cushion)
  13. Philippine Resources Savings Banking Corporation (43.71% reduction in Total Capital Cushion)
  14. Equicom Savings Bank (42.04% reduction in Total Capital Cushion)
  15. Maritime Savings Bank Corporation (41.99% reduction in Total Capital Cushion)
  16. China Bank Savings Inc (38.37% reduction in Total Capital Cushion)
  17. UCPB Savings Bank (31.88% 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 March 31, 2017".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of March 31, 2017".  As such, any reduction in their capital cushion could knock down an already weak bank.

Sunday, September 10, 2017

Luzon Development Bank Ranks Third in Non-Performing Loans as % of Stockholder's Equity as of March 31, 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 Philippine Postal Savings Bank Ranks First in Non-Performing Loans as % of Stockholder's Equity as of December 31, 2016.


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 139.25 billion as of March 31, 2017 - approximately 1.85% of the Philippine Banking Industry's Total Loan Portfolio of Php 7.54 trillion.




Philippine Banking System
NPL as % of TLP
March 31, 2017











Gross NPL/ Gross TLP
Bank Gross NPLs Gross TLP (In %)
MICROFINANCE MAXIMUM SB INC 11,538,108.54 15,789,931.64 73.07%
PHIL STAR DEVELOPMENT BANK INC 13,667,597.78 26,922,007.94 50.77%
PHIL POSTAL SAVINGS BANK INC 2,526,517,914.79 5,952,990,857.03 42.44%
WORLD PARTNERS BANK (A THRIFT BANK) 112,362,449.20 331,610,576.47 33.88%
LEGAZPI SAVINGS BANK INC 445,995,447.33 1,375,147,797.08 32.43%
MALASIQUI PROGRESSIVE SLB, INC 11,106,429.25 38,077,734.18 29.17%
NORTHPOINT DEV'T BANK INC 99,959,947.40 397,327,582.49 25.16%
CENTURY SAVINGS BANK CORPORATION 117,161,921.87 511,508,769.87 22.91%
MARITIME SAVINGS BANK CORPORATION 24,499,153.86 109,497,336.40 22.37%
METRO CEBU PUBLIC SAVINGS BANK 24,372,080.98 112,723,782.72 21.62%
LIFE SAVINGS BANK INC 12,898,716.79 60,989,350.20 21.15%
LUZON DEVELOPMENT BANK 620,878,345.67 3,050,468,366.53 20.35%
YUANTA SAVINGS BANK PHILIPPINES INC 110,104,219.27 547,304,392.00 20.12%
BATAAN DEVELOPMENT BANK 27,407,967.11 145,642,670.18 18.82%
HIYAS BANKING CORPORATION 34,360,654.43 204,845,015.67 16.77%
PAMPANGA DEVELOPMENT BANK 55,028,244.04 340,066,681.27 16.18%
ENTERPRISE BANK INC (A THRIFT BANK) 252,043,502.46 1,595,578,063.82 15.80%
MALAYAN BANK SAVINGS AND MORT BANK INC 565,547,649.98 3,889,720,830.40 14.54%
BATAAN SAVINGS AND LOAN BANK 1,635,781.28 12,697,262.51 12.88%
EQUICOM SAVINGS BANK INC 646,533,823.35 5,021,465,073.28 12.88%
FARMERS SAVINGS & LOAN BANK INC 22,411,351.29 174,896,503.48 12.81%
PHILIPPINE VETERANS BANK 1,875,995,021.68 15,728,250,984.71 11.93%
OPTIMUM DEVELOPMENT BANK INC 174,457,924.11 1,482,188,151.81 11.77%
BANK OF MAKATI (A SAVINGS BANK) INC 2,272,945,790.64 20,299,727,190.44 11.20%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 980,710,424.09 9,209,618,417.68 10.65%
BUSINESS AND CONSUMERS BANK (A DB) 14,191,495.90 144,505,589.58 9.82%
CITYSTATE SAVINGS BANK INC 221,868,254.68 2,329,661,781.57 9.52%
CORDILLERA SAVINGS BANK INC 16,446,654.05 178,461,063.33 9.22%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 168,397,257.81 1,892,335,961.92 8.90%
UCPB SAVINGS BANK 1,254,581,397.45 14,326,146,194.67 8.76%
BPI DIRECT BANKO INC A SAVINGS BANK 429,252,061.73 5,056,006,796.34 8.49%
UNIVERSITY SAVINGS BANK INC 45,003,866.22 548,941,614.69 8.20%
1ST VALLEY BANK INC A DEVELOPMENT BANK 428,729,538.30 5,567,784,109.25 7.70%
LEMERY SAVINGS & LOAN BANK, INC. 7,700,249.95 105,207,477.44 7.32%
CHINA BANK SAVINGS INC 4,410,355,252.20 62,195,273,571.95 7.09%
THE PALAWAN BANK (PALAWAN DB) INC 16,672,400.66 252,731,186.91 6.60%
STANDARD CHARTERED BANK 2,124,976,632.70 32,749,454,237.36 6.49%
RCBC SAVINGS BANK INC 4,431,477,476.10 74,478,345,026.33 5.95%
WEALTH DEVELOPMENT BANK CORPORATION 292,932,364.95 5,420,119,923.32 5.40%
PHIL BANK OF COMMUNICATIONS 2,279,691,946.18 42,941,852,188.24 5.31%
PRODUCERS SAVINGS BANK CORPORATION 386,138,239.27 7,734,811,170.35 4.99%
FIRST CONSOLIDATED BANK INC (A PDB) 525,049,637.72 11,066,132,150.09 4.74%
UNITED COCONUT PLANTERS BANK 6,385,518,030.66 137,433,358,525.34 4.65%
VILLAGE BANK INC (A THRIFT BANK) 19,616,446.39 442,314,584.09 4.43%
EAST WEST BANKING CORP 8,291,599,642.55 192,179,528,731.62 4.31%
UNION BANK OF THE PHILS 7,993,445,459.90 194,584,015,704.60 4.11%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 942,498,137.44 24,866,955,539.75 3.79%
BPI FAMILY SAVINGS BANK INC 7,729,608,998.38 214,342,598,121.29 3.61%
PHIL SAVINGS BANK 4,666,176,343.64 135,120,278,090.58 3.45%
DUMAGUETE CITY DEV BANK INC 17,886,472.35 523,323,608.83 3.42%
PNB SAVINGS BANK 1,015,744,779.07 32,594,056,218.51 3.12%
SUN SAVINGS BANK INC 18,959,809.67 632,510,494.61 3.00%
ASIA UNITED BANK CORPORATION 2,937,364,441.27 101,281,084,697.97 2.90%
BANK OF COMMERCE 1,799,079,182.21 62,176,905,315.23 2.89%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 36,229,903.75 1,358,113,428.10 2.67%
INTER-ASIA DEVELOPMENT BANK 4,613,153.85 177,450,355.22 2.60%
CITY SAVINGS BANK INC 1,760,688,973.83 67,990,770,288.46 2.59%
MAYBANK PHILIPPINES INCORPORATED 1,661,195,995.76 66,720,488,899.94 2.49%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,387,192,466.80 56,492,794,577.93 2.46%
PHIL TRUST COMPANY 1,138,050,603.05 46,936,988,541.09 2.42%
PHIL NATIONAL BANK 9,094,274,085.32 384,394,857,214.06 2.37%
DEVELOPMENT BANK OF THE PHIL 5,464,419,478.74 232,096,886,468.94 2.35%
MERCHANTS SAVINGS & LOAN ASSN INC 17,112,936.55 738,696,466.12 2.32%
BANK ONE SAVINGS AND TRUST CORP. 23,096,226.26 1,036,033,421.44 2.23%
CARD SME BANK INC A THRIFT BANK 55,309,326.70 2,677,386,929.57 2.07%
ROBINSONS BANK CORPORATION 683,406,976.50 39,848,707,667.63 1.72%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 26,305,413.66 1,658,852,722.86 1.59%
ANZ BANKING GROUP LTD 404,087,064.26 25,930,560,180.40 1.56%
LAND BANK OF THE PHILIPPINES 8,258,481,213.76 539,797,305,223.28 1.53%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,387,619.28 389,794,595.89 1.38%
CTBC BANK (PHILIPPINES) CORP 357,499,065.12 26,184,578,428.10 1.37%
QUEZON COCONUT BANK INC (A THRIFT BANK) 764,046.72 56,483,915.90 1.35%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,213.72 15,980,027,362.50 1.18%
HONGKONG & SHANGHAI BANKING CORP 746,769,210.95 64,103,366,885.02 1.16%
CHINA BANKING CORP 3,614,348,811.57 321,093,535,439.61 1.13%
RIZAL COMM'L BANKING CORP 2,570,930,099.09 235,547,958,490.68 1.09%
BDO UNIBANK INC 16,529,874,745.48 1,515,526,852,845.28 1.09%
BANK OF THE PHIL ISLANDS 8,425,699,430.98 825,677,042,965.19 1.02%
SECURITY BANK CORP 2,209,369,283.42 304,894,419,011.73 0.72%
KEB HANA BANK - MANILA BRANCH 28,066,201.64 4,545,236,742.99 0.62%
CITIBANK, N.A. 850,812,713.59 192,932,389,729.81 0.44%
BANGKOK BANK PUBLIC CO LTD 37,877,890.77 8,823,692,689.91 0.43%
METROPOLITAN BANK & TCO 3,755,149,756.43 929,386,375,489.53 0.40%
ING BANK N.V. 102.32 14,590,109,545.69 0.00%
BANK OF AMERICA N.A. 0.00 3,873,567,874.87 0.00%
BDO PRIVATE BANK, INC. 0.00 11,175,949,229.30 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0.00 1,376,169,736.00 0.00%
DEUTSCHE BANK AG 0.00 30,069,031,538.27 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0.00 13,000,000.00 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0.00 1,281,070,741.84 0.00%
ISLA BANK(A THRIFT BANK) INC 0.00 670,433,046.60 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0.00 22,871,361,751.62 0.00%
MEGA INT'L COMM'L BANK CO LTD 0.00 10,494,533,264.19 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0.00 43,859,245,146.42 0.00%
SHINHAN BANK - MANILA BRANCH 0.00 1,210,302,000.00 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 14,185,200,726.43 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 35,211,664,550.48 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0.00 1,032,555,520.00 0.00%
Grand Total 139,247,084,946.46 7,538,711,596,654.45 1.85%


There are seven Philippine Banks with a Gross NPL Ratio greater than 25.16% of Total Loan Portfolio (TLP).  These are as follows:

  1. Microfinance Maximum Savings Bank (73.04% of TLP)
  2. Philippine Star Development Bank, Inc. (50.77% of TLP)
  3. Philippine Postal Savings Bank Inc. (42.44% of TLP)
  4. World Partners Bank (33.88% of TLP)
  5. Legazpi Savings Bank Inc. (32.43% of TLP)
  6. Malasiqui Progressive SLB, Inc. (29.17% of TLP)
  7. Northpoint Development Bank, Inc. (25.16% 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 8.97% of Stockholders Equity as of March 31, 2017.


Philippine Banking System
NPL as % of SE
March 31, 2017









NPL SE NPL/SE
Bank (In PHP) (In PHP) (In %)
PHIL POSTAL SAVINGS BANK INC 2,526,517,915 954,200,833 264.78%
WORLD PARTNERS BANK (A THRIFT BANK) 112,362,449 42,964,068 261.53%
LUZON DEVELOPMENT BANK 620,878,346 345,425,449 179.74%
ENTERPRISE BANK INC (A THRIFT BANK) 252,043,502 277,185,285 90.93%
EQUICOM SAVINGS BANK INC 646,533,823 742,357,199 87.09%
LEGAZPI SAVINGS BANK INC 445,995,447 518,168,423 86.07%
MARITIME SAVINGS BANK CORPORATION 24,499,154 36,899,584 66.39%
MALAYAN BANK SAVINGS AND MORT BANK INC 565,547,650 1,021,229,750 55.38%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 980,710,424 1,922,167,224 51.02%
CHINA BANK SAVINGS INC 4,410,355,252 9,163,202,512 48.13%
PHILIPPINE VETERANS BANK 1,875,995,022 4,046,296,276 46.36%
UCPB SAVINGS BANK 1,254,581,397 2,819,058,998 44.50%
THE PALAWAN BANK (PALAWAN DB) INC 16,672,401 39,837,931 41.85%
RCBC SAVINGS BANK INC 4,431,477,476 10,695,425,583 41.43%
PAMPANGA DEVELOPMENT BANK 55,028,244 135,300,586 40.67%
METRO CEBU PUBLIC SAVINGS BANK 24,372,081 61,356,496 39.72%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 942,498,137 2,562,739,122 36.78%
UNITED COCONUT PLANTERS BANK 6,385,518,031 17,451,124,245 36.59%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 168,397,258 462,780,457 36.39%
BATAAN DEVELOPMENT BANK 27,407,967 77,568,284 35.33%
BANK OF MAKATI (A SAVINGS BANK) INC 2,272,945,791 6,556,445,020 34.67%
CITYSTATE SAVINGS BANK INC 221,868,255 692,872,699 32.02%
STANDARD CHARTERED BANK 2,124,976,633 6,667,508,846 31.87%
NORTHPOINT DEV'T BANK INC 99,959,947 344,690,780 29.00%
BPI FAMILY SAVINGS BANK INC 7,729,608,998 26,770,809,994 28.87%
1ST VALLEY BANK INC A DEVELOPMENT BANK 428,729,538 1,488,039,795 28.81%
PHIL SAVINGS BANK 4,666,176,344 19,291,936,376 24.19%
BPI DIRECT BANKO INC A SAVINGS BANK 429,252,062 1,808,195,890 23.74%
PRODUCERS SAVINGS BANK CORPORATION 386,138,239 1,644,599,364 23.48%
EAST WEST BANKING CORP 8,291,599,643 35,333,154,415 23.47%
VILLAGE BANK INC (A THRIFT BANK) 19,616,446 84,544,831 23.20%
PHIL BANK OF COMMUNICATIONS 2,279,691,946 10,278,350,767 22.18%
MALASIQUI PROGRESSIVE SLB, INC 11,106,429 52,213,426 21.27%
HIYAS BANKING CORPORATION 34,360,654 162,196,397 21.18%
WEALTH DEVELOPMENT BANK CORPORATION 292,932,365 1,428,158,118 20.51%
OPTIMUM DEVELOPMENT BANK INC 174,457,924 862,100,904 20.24%
LIFE SAVINGS BANK INC 12,898,717 66,685,538 19.34%
FARMERS SAVINGS & LOAN BANK INC 22,411,351 123,861,509 18.09%
BUSINESS AND CONSUMERS BANK (A DB) 14,191,496 87,093,685 16.29%
CITY SAVINGS BANK INC 1,760,688,974 11,258,212,430 15.64%
PHIL STAR DEVELOPMENT BANK INC 13,667,598 95,600,563 14.30%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,387,192,467 9,865,174,936 14.06%
MAYBANK PHILIPPINES INCORPORATED 1,661,195,996 11,942,769,431 13.91%
FIRST CONSOLIDATED BANK INC (A PDB) 525,049,638 3,921,398,077 13.39%
UNION BANK OF THE PHILS 7,993,445,460 62,091,195,753 12.87%
ASIA UNITED BANK CORPORATION 2,937,364,441 24,339,526,210 12.07%
CENTURY SAVINGS BANK CORPORATION 117,161,922 977,594,203 11.98%
CORDILLERA SAVINGS BANK INC 16,446,654 137,922,232 11.92%
DEVELOPMENT BANK OF THE PHIL 5,464,419,479 45,934,092,719 11.90%
BANK OF COMMERCE 1,799,079,182 15,153,876,740 11.87%
YUANTA SAVINGS BANK PHILIPPINES INC 110,104,219 984,463,917 11.18%
UNIVERSITY SAVINGS BANK INC 45,003,866 413,430,546 10.89%
SUN SAVINGS BANK INC 18,959,810 186,900,409 10.14%
ANZ BANKING GROUP LTD 404,087,064 4,104,226,807 9.85%
LEMERY SAVINGS & LOAN BANK, INC. 7,700,250 78,452,926 9.82%
LAND BANK OF THE PHILIPPINES 8,258,481,214 88,633,984,423 9.32%
PHIL NATIONAL BANK 9,094,274,085 102,462,349,335 8.88%
PNB SAVINGS BANK 1,015,744,779 11,591,387,230 8.76%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 36,229,904 450,501,970 8.04%
BANK OF CHINA LIMITED-MANILA BRANCH 188,969,214 2,441,975,319 7.74%
CARD SME BANK INC A THRIFT BANK 55,309,327 730,971,718 7.57%
INTER-ASIA DEVELOPMENT BANK 4,613,154 63,960,231 7.21%
DUMAGUETE CITY DEV BANK INC 17,886,472 262,559,614 6.81%
CHINA BANKING CORP 3,614,348,812 59,031,464,070 6.12%
CITIBANK, N.A. 850,812,714 14,095,242,099 6.04%
BDO UNIBANK INC 16,529,874,745 281,630,888,489 5.87%
ROBINSONS BANK CORPORATION 683,406,977 12,115,260,787 5.64%
HONGKONG & SHANGHAI BANKING CORP 746,769,211 13,344,344,651 5.60%
CTBC BANK (PHILIPPINES) CORP 357,499,065 6,943,609,350 5.15%
BANK OF THE PHIL ISLANDS 8,425,699,431 167,104,837,324 5.04%
PHIL TRUST COMPANY 1,138,050,603 24,035,572,042 4.73%
RIZAL COMM'L BANKING CORP 2,570,930,099 63,296,711,382 4.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 26,305,414 654,099,419 4.02%
BANK ONE SAVINGS AND TRUST CORP. 23,096,226 580,064,634 3.98%
BATAAN SAVINGS AND LOAN BANK 1,635,781 57,924,600 2.82%
MERCHANTS SAVINGS & LOAN ASSN INC 17,112,937 622,416,521 2.75%
SECURITY BANK CORP 2,209,369,283 98,491,544,960 2.24%
METROPOLITAN BANK & TCO 3,755,149,756 189,844,343,707 1.98%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 5,387,619 286,499,779 1.88%
KEB HANA BANK - MANILA BRANCH 28,066,202 1,587,936,331 1.77%
QUEZON COCONUT BANK INC (A THRIFT BANK) 764,047 59,014,544 1.29%
BANGKOK BANK PUBLIC CO LTD 37,877,891 3,098,933,163 1.22%
ING BANK N.V. 102 2,502,824,099 0.00%
BANK OF AMERICA N.A. 0 2,096,035,697 0.00%
BDO PRIVATE BANK, INC. 0 5,410,232,810 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0 2,130,401,781 0.00%
DEUTSCHE BANK AG 0 2,257,001,852 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0 2,031,188,854 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0 2,222,941,067 0.00%
ISLA BANK(A THRIFT BANK) INC 0 667,526,085 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0 1,318,053,766 0.00%
MEGA INT'L COMM'L BANK CO LTD 0 1,861,262,054 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0 5,574,888,253 0.00%
SHINHAN BANK - MANILA BRANCH 0 2,201,303,657 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0 13,001,887,788 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0 4,580,114,852 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0 2,412,646,569 0.00%
MICROFINANCE MAXIMUM SB INC 11,538,109 -10,270,100 -112.35%
Grand Total 139,247,084,946 1,552,380,021,338 8.97%

Of the 98 banks in this list, twenty-three banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of March 31, 2017.  These banks are as follows:

  1. Philippine Postal Savings Bank Inc (264.78% of SE)
  2. World Partners Bank (261.53% of SE)
  3. Luzon Development Bank (179.74% of SE)
  4. Enterprise Bank Inc (90.93% of SE)
  5. Equicom Savings Bank Inc. (87.09% of SE)
  6. Legazpi Savings Bank Inc (86.07% of SE)
  7. Maritime Savings Bank Corporation (66.39% of SE)
  8. Malayan Bank Savings and Mortgage Bank Inc (55.38% of SE)
  9. Philippine Resources Savings Banking Corporation (51.02% of SE)
  10. China Bank Savings Inc (48.13% of SE)
  11. Philippine Veterans Bank (46.36%of SE)
  12. UCPB Savings Bank (44.50% of SE)
  13. The Palawan Bank (41.85% of SE)
  14. RCBC Savings Bank Inc (41.43% of SE)
  15. Pampanga Development Bank (40.67% of SE)
  16. Metro Cebu Public Savings Bank (39.72% of SE)
  17. Sterling Bank of Asia Inc (36.78% of SE)
  18. United Coconut Planters Bank (36.59% of SE)
  19. Penbank Inc. (36.39% of SE)
  20. Bataan Development Bank (35.33% of SE)
  21. Bank of Makati (34.67% of SE)
  22. CityState Savings Bank (32.02% of SE)
  23. Standard Chartered Bank (31.87% of SE)
  24. Bataan Development Bank (35.77% of SE)


Another indicator of a bank's financial health is the level of DOSRI Loans (Loans made by the bank to related parties such as Directors, Officers, Stockholders, and Related Interests) in relation to a bank's Total Loan Portfolio.  Under current banking regulations, the limit on individual loans to DOSRI, of which 70% must be secured, should not exceed a bank's parent company's regulatory capital or 15% of the bank's parent company's total loan portfolio, whichever is lower.  These limits do not apply to loans secured by assets considered as non-risk as defined in the regulations.Therefore banks with significantly high DOSRI Loan to Total Loan Portfolio ratios may be bumping up or exceeding the limits of compliance with DOSRI regulations.

On an overall basis, the DOSRI Loans of Philippine Banks amounted to only 2.39% of their Total Loan Portfolio as of March 31, 2017.  Of the 98 banks, thirty-one banks reported having no DOSRI Loans.  Of the sixty-seven banks with DOSRI Loans, forty banks had DOSRI Loans that made up less than 1% of their Total Loan Portfolios.  However, three banks had DOSRI Loans that comprised more than 15% of their Total Loan Portfolios.  They are as follows:
  1. Malasiqui Progressive SLB, Inc. (26.91% of TLP)
  2. Development Bank of the Philippines (19.50% of TLP)
  3. Queen City Development Bank (16.49% of TLP)

Philippine Banking System
DOSRI as % of TLP
March 31, 2017









DOSRI TLP DOSRI/TLP
Bank (In Php) (In PHP) (In %)
MALASIQUI PROGRESSIVE SLB, INC 10,245,912 38,077,734 26.91%
DEVELOPMENT BANK OF THE PHIL 45,257,816,989 232,096,886,469 19.50%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 273,539,175 1,658,852,723 16.49%
PAMPANGA DEVELOPMENT BANK 48,659,060 340,066,681 14.31%
UNIVERSITY SAVINGS BANK INC 71,048,934 548,941,615 12.94%
LIFE SAVINGS BANK INC 7,436,523 60,989,350 12.19%
LAND BANK OF THE PHILIPPINES 65,298,283,473 539,797,305,223 12.10%
DUMAGUETE CITY DEV BANK INC 55,507,885 523,323,609 10.61%
HIYAS BANKING CORPORATION 16,606,310 204,845,016 8.11%
INTER-ASIA DEVELOPMENT BANK 10,436,389 177,450,355 5.88%
EAST WEST BANKING CORP 11,138,403,344 192,179,528,732 5.80%
CENTURY SAVINGS BANK CORPORATION 27,013,792 511,508,770 5.28%
VILLAGE BANK INC (A THRIFT BANK) 21,545,100 442,314,584 4.87%
PHIL TRUST COMPANY 2,138,000,000 46,936,988,541 4.56%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 83,944,968 1,892,335,962 4.44%
BANK OF MAKATI (A SAVINGS BANK) INC 864,705,059 20,299,727,190 4.26%
CHINA BANKING CORP 8,841,728,940 321,093,535,440 2.75%
PHIL NATIONAL BANK 9,705,423,751 384,394,857,214 2.52%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,209,020,164 56,492,794,578 2.14%
LEMERY SAVINGS & LOAN BANK, INC. 2,103,818 105,207,477 2.00%
CORDILLERA SAVINGS BANK INC 3,524,419 178,461,063 1.97%
ROBINSONS BANK CORPORATION 785,300,481 39,848,707,668 1.97%
PHIL SAVINGS BANK 1,772,691,145 135,120,278,091 1.31%
BDO UNIBANK INC 19,018,682,797 1,515,526,852,845 1.25%
QUEZON COCONUT BANK INC (A THRIFT BANK) 675,054 56,483,916 1.20%
PRODUCERS SAVINGS BANK CORPORATION 86,726,734 7,734,811,170 1.12%
BANK OF AMERICA N.A. 40,359,368 3,873,567,875 1.04%
BANK OF THE PHIL ISLANDS 7,553,613,521 825,677,042,965 0.91%
THE PALAWAN BANK (PALAWAN DB) INC 2,192,447 252,731,187 0.87%
ENTERPRISE BANK INC (A THRIFT BANK) 13,257,996 1,595,578,064 0.83%
CITYSTATE SAVINGS BANK INC 17,031,223 2,329,661,782 0.73%
PHIL POSTAL SAVINGS BANK INC 39,378,590 5,952,990,857 0.66%
FARMERS SAVINGS & LOAN BANK INC 1,099,986 174,896,503 0.63%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 151,079,216 24,866,955,540 0.61%
HONGKONG & SHANGHAI BANKING CORP 313,984,231 64,103,366,885 0.49%
SECURITY BANK CORP 1,102,150,439 304,894,419,012 0.36%
ASIA UNITED BANK CORPORATION 280,598,184 101,281,084,698 0.28%
UNION BANK OF THE PHILS 484,998,803 194,584,015,705 0.25%
RIZAL COMM'L BANKING CORP 529,214,492 235,547,958,491 0.22%
LUZON DEVELOPMENT BANK 6,421,460 3,050,468,367 0.21%
METROPOLITAN BANK & TCO 1,928,839,867 929,386,375,490 0.21%
MARITIME SAVINGS BANK CORPORATION 220,000 109,497,336 0.20%
PHILIPPINE VETERANS BANK 28,782,299 15,728,250,985 0.18%
UNITED COCONUT PLANTERS BANK 243,300,545 137,433,358,525 0.18%
WEALTH DEVELOPMENT BANK CORPORATION 9,273,669 5,420,119,923 0.17%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 2,146,975 1,358,113,428 0.16%
JP MORGAN CHASE BANK NATIONAL ASSN. 35,671,980 22,871,361,752 0.16%
ISLA BANK(A THRIFT BANK) INC 1,004,151 670,433,047 0.15%
CTBC BANK (PHILIPPINES) CORP 36,793,351 26,184,578,428 0.14%
ANZ BANKING GROUP LTD 34,413,523 25,930,560,180 0.13%
FIRST CONSOLIDATED BANK INC (A PDB) 13,315,292 11,066,132,150 0.12%
YUANTA SAVINGS BANK PHILIPPINES INC 538,549 547,304,392 0.10%
CITY SAVINGS BANK INC 56,465,654 67,990,770,288 0.08%
1ST VALLEY BANK INC A DEVELOPMENT BANK 3,425,796 5,567,784,109 0.06%
PNB SAVINGS BANK 18,822,928 32,594,056,219 0.06%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,208,961 3,889,720,830 0.06%
CITIBANK, N.A. 93,900,504 192,932,389,730 0.05%
MAYBANK PHILIPPINES INCORPORATED 24,500,000 66,720,488,900 0.04%
PHIL BANK OF COMMUNICATIONS 15,284,113 42,941,852,188 0.04%
UCPB SAVINGS BANK 4,336,764 14,326,146,195 0.03%
LEGAZPI SAVINGS BANK INC 332,152 1,375,147,797 0.02%
BPI FAMILY SAVINGS BANK INC 42,619,269 214,342,598,121 0.02%
CHINA BANK SAVINGS INC 8,677,477 62,195,273,572 0.01%
KEB HANA BANK - MANILA BRANCH 477,600 4,545,236,743 0.01%
BANK OF COMMERCE 3,528,976 62,176,905,315 0.01%
BPI DIRECT BANKO INC A SAVINGS BANK 280,547 5,056,006,796 0.01%
RCBC SAVINGS BANK INC 2,180,356 74,478,345,026 0.00%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 0 389,794,596 0.00%
BANGKOK BANK PUBLIC CO LTD 0 8,823,692,690 0.00%
BANK OF CHINA LIMITED-MANILA BRANCH 0 15,980,027,363 0.00%
BANK ONE SAVINGS AND TRUST CORP. 0 1,036,033,421 0.00%
BATAAN DEVELOPMENT BANK 0 145,642,670 0.00%
BATAAN SAVINGS AND LOAN BANK 0 12,697,263 0.00%
BDO PRIVATE BANK, INC. 0 11,175,949,229 0.00%
BUSINESS AND CONSUMERS BANK (A DB) 0 144,505,590 0.00%
CARD SME BANK INC A THRIFT BANK 0 2,677,386,930 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0 1,376,169,736 0.00%
DEUTSCHE BANK AG 0 30,069,031,538 0.00%
EQUICOM SAVINGS BANK INC 0 5,021,465,073 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0 13,000,000 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0 1,281,070,742 0.00%
ING BANK N.V. 0 14,590,109,546 0.00%
MEGA INT'L COMM'L BANK CO LTD 0 10,494,533,264 0.00%
MERCHANTS SAVINGS & LOAN ASSN INC 0 738,696,466 0.00%
METRO CEBU PUBLIC SAVINGS BANK 0 112,723,783 0.00%
MICROFINANCE MAXIMUM SB INC 0 15,789,932 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0 43,859,245,146 0.00%
NORTHPOINT DEV'T BANK INC 0 397,327,582 0.00%
OPTIMUM DEVELOPMENT BANK INC 0 1,482,188,152 0.00%
PHIL STAR DEVELOPMENT BANK INC 0 26,922,008 0.00%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 0 9,209,618,418 0.00%
SHINHAN BANK - MANILA BRANCH 0 1,210,302,000 0.00%
STANDARD CHARTERED BANK 0 32,749,454,237 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0 14,185,200,726 0.00%
SUN SAVINGS BANK INC 0 632,510,495 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0 35,211,664,550 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0 1,032,555,520 0.00%
WORLD PARTNERS BANK (A THRIFT BANK) 0 331,610,576 0.00%
Grand Total 179,895,791,472 7,538,711,596,654 2.39%

DOSRI Rules indicate that, in the aggregate, DOSRI Loans should not exceed the total equity of the bank.  Therefore, banks with a significantly high DOSRI Loans as a percentage of Stockholders Equity may be approaching DOSRI Limits.  Generally speaking, the DOSRI Loans of Philippine Banks amounted to 11.59% of Stockholders Equity as of March 31, 2017. One bank has DOSRI Loans that exceeds 80% of its capital: Development Bank of the Philippines (98.53% of SE).


Philippine Banking System
DOSRI as % of Stockholders Equity
March 31, 2017









DOSRI SE DOSRI/SE
Bank (In Php) (In PHP) (In %)
DEVELOPMENT BANK OF THE PHIL 45,257,816,989 45,934,092,719 98.53%
LAND BANK OF THE PHILIPPINES 65,298,283,473 88,633,984,423 73.67%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 273,539,175 654,099,419 41.82%
PAMPANGA DEVELOPMENT BANK 48,659,060 135,300,586 35.96%
EAST WEST BANKING CORP 11,138,403,344 35,333,154,415 31.52%
VILLAGE BANK INC (A THRIFT BANK) 21,545,100 84,544,831 25.48%
DUMAGUETE CITY DEV BANK INC 55,507,885 262,559,614 21.14%
MALASIQUI PROGRESSIVE SLB, INC 10,245,912 52,213,426 19.62%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 83,944,968 462,780,457 18.14%
UNIVERSITY SAVINGS BANK INC 71,048,934 413,430,546 17.19%
INTER-ASIA DEVELOPMENT BANK 10,436,389 63,960,231 16.32%
CHINA BANKING CORP 8,841,728,940 59,031,464,070 14.98%
BANK OF MAKATI (A SAVINGS BANK) INC 864,705,059 6,556,445,020 13.19%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 1,209,020,164 9,865,174,936 12.26%
LIFE SAVINGS BANK INC 7,436,523 66,685,538 11.15%
HIYAS BANKING CORPORATION 16,606,310 162,196,397 10.24%
PHIL NATIONAL BANK 9,705,423,751 102,462,349,335 9.47%
PHIL SAVINGS BANK 1,772,691,145 19,291,936,376 9.19%
PHIL TRUST COMPANY 2,138,000,000 24,035,572,042 8.90%
BDO UNIBANK INC 19,018,682,797 281,630,888,489 6.75%
ROBINSONS BANK CORPORATION 785,300,481 12,115,260,787 6.48%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 151,079,216 2,562,739,122 5.90%
THE PALAWAN BANK (PALAWAN DB) INC 2,192,447 39,837,931 5.50%
PRODUCERS SAVINGS BANK CORPORATION 86,726,734 1,644,599,364 5.27%
ENTERPRISE BANK INC (A THRIFT BANK) 13,257,996 277,185,285 4.78%
BANK OF THE PHIL ISLANDS 7,553,613,521 167,104,837,324 4.52%
PHIL POSTAL SAVINGS BANK INC 39,378,590 954,200,833 4.13%
CENTURY SAVINGS BANK CORPORATION 27,013,792 977,594,203 2.76%
JP MORGAN CHASE BANK NATIONAL ASSN. 35,671,980 1,318,053,766 2.71%
LEMERY SAVINGS & LOAN BANK, INC. 2,103,818 78,452,926 2.68%
CORDILLERA SAVINGS BANK INC 3,524,419 137,922,232 2.56%
CITYSTATE SAVINGS BANK INC 17,031,223 692,872,699 2.46%
HONGKONG & SHANGHAI BANKING CORP 313,984,231 13,344,344,651 2.35%
BANK OF AMERICA N.A. 40,359,368 2,096,035,697 1.93%
LUZON DEVELOPMENT BANK 6,421,460 345,425,449 1.86%
UNITED COCONUT PLANTERS BANK 243,300,545 17,451,124,245 1.39%
ASIA UNITED BANK CORPORATION 280,598,184 24,339,526,210 1.15%
QUEZON COCONUT BANK INC (A THRIFT BANK) 675,054 59,014,544 1.14%
SECURITY BANK CORP 1,102,150,439 98,491,544,960 1.12%
METROPOLITAN BANK & TCO 1,928,839,867 189,844,343,707 1.02%
FARMERS SAVINGS & LOAN BANK INC 1,099,986 123,861,509 0.89%
ANZ BANKING GROUP LTD 34,413,523 4,104,226,807 0.84%
RIZAL COMM'L BANKING CORP 529,214,492 63,296,711,382 0.84%
UNION BANK OF THE PHILS 484,998,803 62,091,195,753 0.78%
PHILIPPINE VETERANS BANK 28,782,299 4,046,296,276 0.71%
CITIBANK, N.A. 93,900,504 14,095,242,099 0.67%
WEALTH DEVELOPMENT BANK CORPORATION 9,273,669 1,428,158,118 0.65%
MARITIME SAVINGS BANK CORPORATION 220,000 36,899,584 0.60%
CTBC BANK (PHILIPPINES) CORP 36,793,351 6,943,609,350 0.53%
CITY SAVINGS BANK INC 56,465,654 11,258,212,430 0.50%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 2,146,975 450,501,970 0.48%
FIRST CONSOLIDATED BANK INC (A PDB) 13,315,292 3,921,398,077 0.34%
1ST VALLEY BANK INC A DEVELOPMENT BANK 3,425,796 1,488,039,795 0.23%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,208,961 1,021,229,750 0.22%
MAYBANK PHILIPPINES INCORPORATED 24,500,000 11,942,769,431 0.21%
PNB SAVINGS BANK 18,822,928 11,591,387,230 0.16%
BPI FAMILY SAVINGS BANK INC 42,619,269 26,770,809,994 0.16%
UCPB SAVINGS BANK 4,336,764 2,819,058,998 0.15%
ISLA BANK(A THRIFT BANK) INC 1,004,151 667,526,085 0.15%
PHIL BANK OF COMMUNICATIONS 15,284,113 10,278,350,767 0.15%
CHINA BANK SAVINGS INC 8,677,477 9,163,202,512 0.09%
LEGAZPI SAVINGS BANK INC 332,152 518,168,423 0.06%
YUANTA SAVINGS BANK PHILIPPINES INC 538,549 984,463,917 0.05%
KEB HANA BANK - MANILA BRANCH 477,600 1,587,936,331 0.03%
BANK OF COMMERCE 3,528,976 15,153,876,740 0.02%
RCBC SAVINGS BANK INC 2,180,356 10,695,425,583 0.02%
BPI DIRECT BANKO INC A SAVINGS BANK 280,547 1,808,195,890 0.02%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 0 286,499,779 0.00%
BANGKOK BANK PUBLIC CO LTD 0 3,098,933,163 0.00%
BANK OF CHINA LIMITED-MANILA BRANCH 0 2,441,975,319 0.00%
BANK ONE SAVINGS AND TRUST CORP. 0 580,064,634 0.00%
BATAAN DEVELOPMENT BANK 0 77,568,284 0.00%
BATAAN SAVINGS AND LOAN BANK 0 57,924,600 0.00%
BDO PRIVATE BANK, INC. 0 5,410,232,810 0.00%
BUSINESS AND CONSUMERS BANK (A DB) 0 87,093,685 0.00%
CARD SME BANK INC A THRIFT BANK 0 730,971,718 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0 2,130,401,781 0.00%
DEUTSCHE BANK AG 0 2,257,001,852 0.00%
EQUICOM SAVINGS BANK INC 0 742,357,199 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0 2,031,188,854 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0 2,222,941,067 0.00%
ING BANK N.V. 0 2,502,824,099 0.00%
MEGA INT'L COMM'L BANK CO LTD 0 1,861,262,054 0.00%
MERCHANTS SAVINGS & LOAN ASSN INC 0 622,416,521 0.00%
METRO CEBU PUBLIC SAVINGS BANK 0 61,356,496 0.00%
MICROFINANCE MAXIMUM SB INC 0 -10,270,100 0.00%
MIZUHO BANK LTD - MANILA BRANCH 0 5,574,888,253 0.00%
NORTHPOINT DEV'T BANK INC 0 344,690,780 0.00%
OPTIMUM DEVELOPMENT BANK INC 0 862,100,904 0.00%
PHIL STAR DEVELOPMENT BANK INC 0 95,600,563 0.00%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 0 1,922,167,224 0.00%
SHINHAN BANK - MANILA BRANCH 0 2,201,303,657 0.00%
STANDARD CHARTERED BANK 0 6,667,508,846 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0 13,001,887,788 0.00%
SUN SAVINGS BANK INC 0 186,900,409 0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0 4,580,114,852 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0 2,412,646,569 0.00%
WORLD PARTNERS BANK (A THRIFT BANK) 0 42,964,068 0.00%
Grand Total 179,895,791,472 1,552,380,021,338 11.59%

Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “substantially on the same terms as with other individuals and businesses of comparable risks".  (See Planters Development Bank Annual Report December 31, 2010). Loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:

  1. Written off as soon as possible;
  2. Refinanced or Restructured to become current (this requires Board of Directors Approval); or, are
  3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 
As a result, Philippine Banks reported that Php 7.73 million, or 0.00% of its DOSRI Loans fell past due as of March 31, 2017.  Of the sixty-seven banks with DOSRI Loans, forty-nine banks had zero past due DOSRI Loans.  Not one bank had past-due DOSRI Loans exceeding 30% of their Total DOSRI Loan Portfolio as of March 31, 2017.


Philippine Banking System
DOSRI Past Due as % of DOSRI
March 31, 2017





DOSRI Past Due DOSRI DOSRI Past Due/DOSRI
Bank (In PHP) (In PHP) (In %)
FIRST CONSOLIDATED BANK INC (A PDB) 1,691,893 13,315,292 12.71%
LIFE SAVINGS BANK INC 784,753 7,436,523 10.55%
LEGAZPI SAVINGS BANK INC 25,656 332,152 7.72%
CHINA BANK SAVINGS INC 114,430 8,677,477 1.32%
PNB SAVINGS BANK 69,872 18,822,928 0.37%
UNITED COCONUT PLANTERS BANK 889,759 243,300,545 0.37%
BPI FAMILY SAVINGS BANK INC 105,984 42,619,269 0.25%
UCPB SAVINGS BANK 9,276 4,336,764 0.21%
PHIL BANK OF COMMUNICATIONS 22,438 15,284,113 0.15%
CITIBANK, N.A. 96,429 93,900,504 0.10%
RIZAL COMM'L BANKING CORP 380,963 529,214,492 0.07%
BANK OF THE PHIL ISLANDS 1,397,742 7,553,613,521 0.02%
BDO UNIBANK INC 1,262,187 19,018,682,797 0.01%
PHIL NATIONAL BANK 464,008 9,705,423,751 0.00%
EAST WEST BANKING CORP 266,677 11,138,403,344 0.00%
CHINA BANKING CORP 139,940 8,841,728,940 0.00%
PHIL SAVINGS BANK 11,894 1,772,691,145 0.00%
MALAYAN BANK SAVINGS AND MORT BANK INC 8 2,208,961 0.00%
1ST VALLEY BANK INC A DEVELOPMENT BANK 0 3,425,796 0.00%
ANZ BANKING GROUP LTD 0 34,413,523 0.00%
ASIA UNITED BANK CORPORATION 0 280,598,184 0.00%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK) 0 2,146,975 0.00%
BANK OF AMERICA N.A. 0 40,359,368 0.00%
BANK OF COMMERCE 0 3,528,976 0.00%
BANK OF MAKATI (A SAVINGS BANK) INC 0 864,705,059 0.00%
BPI DIRECT BANKO INC A SAVINGS BANK 0 280,547 0.00%
CENTURY SAVINGS BANK CORPORATION 0 27,013,792 0.00%
CITY SAVINGS BANK INC 0 56,465,654 0.00%
CITYSTATE SAVINGS BANK INC 0 17,031,223 0.00%
CORDILLERA SAVINGS BANK INC 0 3,524,419 0.00%
CTBC BANK (PHILIPPINES) CORP 0 36,793,351 0.00%
DEVELOPMENT BANK OF THE PHIL 0 45,257,816,989 0.00%
DUMAGUETE CITY DEV BANK INC 0 55,507,885 0.00%
ENTERPRISE BANK INC (A THRIFT BANK) 0 13,257,996 0.00%
FARMERS SAVINGS & LOAN BANK INC 0 1,099,986 0.00%
HIYAS BANKING CORPORATION 0 16,606,310 0.00%
HONGKONG & SHANGHAI BANKING CORP 0 313,984,231 0.00%
INTER-ASIA DEVELOPMENT BANK 0 10,436,389 0.00%
ISLA BANK(A THRIFT BANK) INC 0 1,004,151 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN. 0 35,671,980 0.00%
KEB HANA BANK - MANILA BRANCH 0 477,600 0.00%
LAND BANK OF THE PHILIPPINES 0 65,298,283,473 0.00%
LEMERY SAVINGS & LOAN BANK, INC. 0 2,103,818 0.00%
LUZON DEVELOPMENT BANK 0 6,421,460 0.00%
MALASIQUI PROGRESSIVE SLB, INC 0 10,245,912 0.00%
MARITIME SAVINGS BANK CORPORATION 0 220,000 0.00%
MAYBANK PHILIPPINES INCORPORATED 0 24,500,000 0.00%
METROPOLITAN BANK & TCO 0 1,928,839,867 0.00%
PAMPANGA DEVELOPMENT BANK 0 48,659,060 0.00%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 0 83,944,968 0.00%
PHIL POSTAL SAVINGS BANK INC 0 39,378,590 0.00%
PHIL TRUST COMPANY 0 2,138,000,000 0.00%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK 0 1,209,020,164 0.00%
PHILIPPINE VETERANS BANK 0 28,782,299 0.00%
PRODUCERS SAVINGS BANK CORPORATION 0 86,726,734 0.00%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK 0 273,539,175 0.00%
QUEZON COCONUT BANK INC (A THRIFT BANK) 0 675,054 0.00%
RCBC SAVINGS BANK INC 0 2,180,356 0.00%
ROBINSONS BANK CORPORATION 0 785,300,481 0.00%
SECURITY BANK CORP 0 1,102,150,439 0.00%
STERLING BANK OF ASIA INC (A SAVINGS BANK) 0 151,079,216 0.00%
THE PALAWAN BANK (PALAWAN DB) INC 0 2,192,447 0.00%
UNION BANK OF THE PHILS 0 484,998,803 0.00%
UNIVERSITY SAVINGS BANK INC 0 71,048,934 0.00%
VILLAGE BANK INC (A THRIFT BANK) 0 21,545,100 0.00%
WEALTH DEVELOPMENT BANK CORPORATION 0 9,273,669 0.00%
YUANTA SAVINGS BANK PHILIPPINES INC 0 538,549 0.00%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 0 0 NA
BANGKOK BANK PUBLIC CO LTD 0 0 NA
BANK OF CHINA LIMITED-MANILA BRANCH 0 0 NA
BANK ONE SAVINGS AND TRUST CORP. 0 0 NA
BATAAN DEVELOPMENT BANK 0 0 NA
BATAAN SAVINGS AND LOAN BANK 0 0 NA
BDO PRIVATE BANK, INC. 0 0 NA
BUSINESS AND CONSUMERS BANK (A DB) 0 0 NA
CARD SME BANK INC A THRIFT BANK 0 0 NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH 0 0 NA
DEUTSCHE BANK AG 0 0 NA
EQUICOM SAVINGS BANK INC 0 0 NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH 0 0 NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH 0 0 NA
ING BANK N.V. 0 0 NA
MEGA INT'L COMM'L BANK CO LTD 0 0 NA
MERCHANTS SAVINGS & LOAN ASSN INC 0 0 NA
METRO CEBU PUBLIC SAVINGS BANK 0 0 NA
MICROFINANCE MAXIMUM SB INC 0 0 NA
MIZUHO BANK LTD - MANILA BRANCH 0 0 NA
NORTHPOINT DEV'T BANK INC 0 0 NA
OPTIMUM DEVELOPMENT BANK INC 0 0 NA
PHIL STAR DEVELOPMENT BANK INC 0 0 NA
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK) 0 0 NA
SHINHAN BANK - MANILA BRANCH 0 0 NA
STANDARD CHARTERED BANK 0 0 NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0 0 NA
SUN SAVINGS BANK INC 0 0 NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0 0 NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH 0 0 NA
WORLD PARTNERS BANK (A THRIFT BANK) 0 0 NA
Grand Total 7,733,909 179,895,791,472 0.00%

Source: www.bsp.gov.ph