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Monday, December 17, 2018

A Simple Stress Test of Philippine Banks as of June 30, 2018

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 151.87 billion or 8.31% of the PhP 1,828.60 billion in Stockholders Equity (SE) as of June 30, 2018.  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.

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


  1. Enterprise Bank Inc (77.66% decline in SE)
  2. Equicom Savings Bank (45.32% decline in SE)
  3. Philippine Veterans Bank (40.29% decline in SE)
  4. UCPB Savings Bank (35.71% decline in SE)
  5. Legazpi Savings Bank (30.00% decline in SE)
  6. Sterling Bank of Asia Inc (29.15% decline in SE) 


Some of these banks are distressed. For more information regarding this, please read The Top Distressed Philippine Banks as of June 30, 2018).
  1. Enterprise Bank Inc (Distressed Ratio of 361.81%)
  2. Equicom Savings Bank (Distressed Ratio of 119.88%)
 

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 June 30, 2018, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 377.73 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 146.70 billion for the same period.  Consequently, any write-offs of Classified Loans will have more than twice the impact of an NPL write-off.
 
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 377.73 billion or 19.48% of the Php 1.94 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2018.
 
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 19.48% 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 1.95% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 9.74%.



Individual Banks

A 10% write-off of Classified Loans would severely impact (by 25% or more) the Total Capital Cushion of one bank (severely affected banks highlighted in yellow).
 
  1. Inter-Asia Development Bank (34.68% reduction in Total Capital Cushion)
A 20% write-off of Classified Loans will severely impact the Total Capital Cushion of four banks:
  1. Inter-Asia Development Bank (69.36% reduction in Total Capital Cushion)
  2. Bangko Kabayan Inc (45.05% reduction in Total Capital Cushion)
  3. United Coconut Planters Bank (42.26% reduction in Total Capital Cushion)
  4. Yuanta Savings Bank Philippines (31.28% reduction in Total Capital Cushion)

A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of one bank (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of nine other banks:
  1. Inter-Asia Development Bank (104.04% reduction in Total Capital Cushion)
  2. Bangko Kabayan Inc (67.57% reduction in Total Capital Cushion)
  3. United Coconut Planters Bank (63.39% reduction in Total Capital Cushion)
  4. Yuanta Savings Bank Philippines (46.92% reduction in Total Capital Cushion)
  5. Malayan Bank Savings and Mortgage Bank (37.02% reduction in Total Capital Cushion)
  6. Bank of China Limited - Manila Branch (34.89% reduction in Total Capital Cushion)
  7. RCBC Savings Bank Inc (34.12% reduction in Total Capital Cushion)
  8. Bataan Development Bank (29.25% reduction in Total Capital Cushion)
  9. Legazpi Savings Bank Inc (26.18% reduction in Total Capital Cushion)
  10. Equicom Savings Bank (25.56% reduction in Total Capital Cushion)
 

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of one bank and severely affect (reduce by 25% or more) the Total Capital Cushion of thirteen more banks:
 
 
  1. Inter-Asia Development Bank (138.72% reduction in Total Capital Cushion)
  2. Bangko Kabayan Inc (90.10% reduction in Total Capital Cushion)
  3. United Coconut Planters Bank (84.52% reduction in Total Capital Cushion)
  4. Yuanta Savings Bank Philippines (62.56% reduction in Total Capital Cushion)
  5. Malayan Bank Savings and Mortgage Bank (49.36% reduction in Total Capital Cushion)
  6. Bank of China Limited - Manila Branch (46.52% reduction in Total Capital Cushion)
  7. RCBC Savings Bank Inc (45.50% reduction in Total Capital Cushion)
  8. Bataan Development Bank (39.00% reduction in Total Capital Cushion)
  9. Legazpi Savings Bank Inc (34.91% reduction in Total Capital Cushion)
  10. Equicom Savings Bank (34.08% reduction in Total Capital Cushion)
  11. Philippine Resources Savings Banking (30.39% reduction in Total Capital Cushion)
  12. Robinsons Bank Corporation (28.75% reduction in Total Capital Cushion)
  13. Philippine Business Bank Inc (28.46% reduction in Total Capital Cushion)
  14. China Bank Savings (27.32% reduction in Total Capital Cushion)

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely affect (reduce by 30% or more) the Total Capital Cushion of seventeen more banks:
  1. Inter-Asia Development Bank (173.40% reduction in Total Capital Cushion)
  2. Bangko Kabayan Inc (112.62% reduction in Total Capital Cushion)
  3. United Coconut Planters Bank (105.65% reduction in Total Capital Cushion)
  4. Yuanta Savings Bank Philippines (78.20% reduction in Total Capital Cushion)
  5. Malayan Bank Savings and Mortgage Bank (61.69% reduction in Total Capital Cushion)
  6. Bank of China Limited - Manila Branch (58.15% reduction in Total Capital Cushion)
  7. RCBC Savings Bank Inc (56.87% reduction in Total Capital Cushion)
  8. Bataan Development Bank (48.75% reduction in Total Capital Cushion)
  9. Legazpi Savings Bank Inc (43.64% reduction in Total Capital Cushion)
  10. Equicom Savings Bank (42.60% reduction in Total Capital Cushion)
  11. Philippine Resources Savings Banking (37.98% reduction in Total Capital Cushion)
  12. Robinsons Bank Corporation (35.94% reduction in Total Capital Cushion)
  13. Philippine Business Bank Inc (35.57% reduction in Total Capital Cushion)
  14. China Bank Savings (34.16% reduction in Total Capital Cushion)
  15. UCPB Savings Bank (30.91% reduction in Total Capital Cushion)
  16. Maritime Savings Bank Corporation (28.22% reduction in Total Capital Cushion)
  17. Philippine Savings Bank (28.20% reduction in Total Capital Cushion)
  18. Dumaguete City Development Bank Inc (27.75% reduction in Total Capital Cushion)
  19. Penbank (27.12% reduction in Total Capital Cushion)
  20. Philippine Veterans Bank (26.26% 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 June 30, 2018".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of June 30, 2018".  As such, any reduction in their capital cushion could knock down an already weak bank.
 
Source: www.bsp.gov.ph

Sunday, December 9, 2018

Enterprise Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2018

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 Overseas Filipino Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of March 31, 2018 .


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 151.87 billion as of June 30, 2018 - approximately 1.66% of the Philippine Banking Industry's Total Loan Portfolio of Php 9.13 trillion.


 
Philippine Banking System
NPL as % of TLP
June 30, 2018











Gross NPL/ Gross TLP
Bank Gross NPLs Gross TLP (In %)
MALASIQUI PROGRESSIVE SLB, INC  17,776,401.59 36,510,663.68 48.69%
LEGAZPI SAVINGS BANK INC  329,578,715.05 1,180,571,177.67 27.92%
NORTHPOINT DEV'T BANK INC  112,927,580.50 477,228,168.71 23.66%
ENTERPRISE BANK INC (A THRIFT BANK)  397,531,630.21 1,688,539,063.65 23.54%
YUANTA SAVINGS BANK PHILIPPINES INC  114,070,749.99 598,982,527.00 19.04%
MARITIME SAVINGS BANK CORPORATION  21,895,317.81 125,380,810.11 17.46%
UNIVERSITY SAVINGS BANK INC  86,921,859.14 533,081,694.74 16.31%
PAMPANGA DEVELOPMENT BANK  56,036,372.72 379,227,332.60 14.78%
PACIFIC ACE SAVINGS BANK INC  4,706,728.00 31,858,387.00 14.77%
HIYAS BANKING CORPORATION  40,456,381.87 285,127,672.33 14.19%
UCPB SAVINGS BANK  1,881,456,594.41 14,978,218,742.57 12.56%
PHILIPPINE RESOURCES SAVINGS BANKING  1,179,751,558.32 9,653,299,888.09 12.22%
BATAAN DEVELOPMENT BANK  25,467,010.45 215,445,265.89 11.82%
EQUICOM SAVINGS BANK INC  639,559,441.16 5,681,588,373.47 11.26%
1ST VALLEY BANK INC A DEVELOPMENT BANK  672,608,541.12 6,160,867,217.81 10.92%
CORDILLERA SAVINGS BANK INC  20,233,158.02 195,970,518.57 10.32%
PHILIPPINE VETERANS BANK  2,244,899,440.80 22,858,159,707.00 9.82%
BUSINESS AND CONSUMERS BANK (A DB)  14,966,364.02 168,309,345.14 8.89%
STANDARD CHARTERED BANK  2,633,305,802.50 29,977,204,908.00 8.78%
BANK OF MAKATI (A SAVINGS BANK) INC  2,271,355,751.00 26,048,908,350.25 8.72%
FIRST CONSOLIDATED BANK INC (A PDB)  930,922,550.94 11,013,529,417.24 8.45%
BPI DIRECT BANKO INC A SAVINGS BANK  814,235,200.14 9,983,023,775.74 8.16%
MALAYAN BANK SAVINGS AND MORT BANK INC  369,652,752.94 4,750,745,864.79 7.78%
PENBANK INC (A PDB) (FORMERLY: PENINSULA  127,664,962.18 1,715,076,134.55 7.44%
FARMERS SAVINGS & LOAN BANK INC  16,432,486.76 227,641,794.99 7.22%
LIFE SAVINGS BANK INC  2,830,739.19 40,289,825.98 7.03%
MERCHANTS SAVINGS & LOAN ASSN INC  72,606,891.31 1,071,743,257.48 6.77%
CITYSTATE SAVINGS BANK INC  136,247,026.40 2,079,928,926.70 6.55%
ALLBANK (A THRIFT BANK) INC  134,216,215.54 2,100,725,766.01 6.39%
WEALTH DEVELOPMENT BANK CORPORATION  405,053,553.43 6,829,947,914.69 5.93%
CHINA BANK SAVINGS INC  3,781,873,875.79 67,740,955,280.01 5.58%
STERLING BANK OF ASIA INC (A SAVINGS  1,567,148,692.24 29,584,241,999.78 5.30%
METRO CEBU PUBLIC SAVINGS BANK  9,340,189.11 177,368,221.65 5.27%
BPI FAMILY SAVINGS BANK INC  10,468,965,854.84 213,916,313,107.67 4.89%
RCBC SAVINGS BANK INC  4,169,995,103.97 89,677,402,793.29 4.65%
PNB SAVINGS BANK  2,300,104,540.68 50,091,559,835.03 4.59%
EAST WEST BANKING CORP  8,947,748,783.20 202,262,693,199.00 4.42%
PHIL BANK OF COMMUNICATIONS   2,377,981,312.50 54,045,140,735.00 4.40%
BANK ONE SAVINGS CORPORATION  51,920,016.00 1,191,304,969.17 4.36%
UNITED COCONUT PLANTERS BANK  5,637,030,450.60 159,822,136,760.00 3.53%
PHIL SAVINGS BANK  5,541,695,108.80 157,589,155,464.10 3.52%
INTER-ASIA DEVELOPMENT BANK  7,160,669.24 205,705,817.12 3.48%
PRODUCERS SAVINGS BANK CORPORATION  384,458,590.47 11,107,481,692.59 3.46%
UNION BANK OF THE PHILS  7,764,720,733.10 258,082,173,823.00 3.01%
BANK OF COMMERCE   1,790,008,869.00 60,076,819,461.00 2.98%
DUMAGUETE CITY DEV BANK INC  14,935,890.88 536,771,887.15 2.78%
MAYBANK PHILIPPINES INCORPORATED  1,893,373,519.10 74,052,934,538.00 2.56%
LEMERY SAVINGS & LOAN BANK, INC.  2,090,392.45 83,599,044.42 2.50%
CARD SME BANK INC A THRIFT BANK  98,098,716.66 4,154,957,609.71 2.36%
PHILIPPINE BUSINESS BANK INC A SAVINGS  1,854,076,328.08 78,938,986,274.62 2.35%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT  42,442,605.42 1,884,987,319.61 2.25%
ASIA UNITED BANK CORPORATION  3,000,943,436.40 134,273,663,794.00 2.23%
DEVELOPMENT BANK OF THE PHIL  6,833,844,003.90 307,471,229,530.00 2.22%
PHIL TRUST COMPANY   1,119,876,214.30 54,742,981,298.00 2.05%
PHIL NATIONAL BANK   8,855,596,734.50 469,160,139,168.00 1.89%
SUN SAVINGS BANK INC  20,766,750.32 1,176,211,465.60 1.77%
CENTURY SAVINGS BANK CORPORATION  10,875,949.65 652,051,077.18 1.67%
CTBC BANK (PHILIPPINES) CORP  496,519,465.43 36,188,074,020.00 1.37%
LAND BANK OF THE PHILIPPINES  9,702,134,275.60 758,685,067,090.00 1.28%
ROBINSONS BANK CORPORATION   758,692,635.02 60,582,618,209.00 1.25%
RIZAL COMM'L BANKING CORP  3,537,445,273.10 284,872,540,830.00 1.24%
HSBC SAVINGS BANK(PHILS) INC  34,454,464.98 3,239,000,485.25 1.06%
BANK OF THE PHIL ISLANDS  10,576,324,545.00 1,033,357,380,402.27 1.02%
BDO UNIBANK INC   17,834,422,711.00 1,912,976,460,184.75 0.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 4,111,569.36 475,006,843.31 0.87%
CHINA BANKING CORP   3,199,071,460.70 397,205,152,665.00 0.81%
HONGKONG & SHANGHAI BANKING CORP  501,255,503.13 64,973,169,266.00 0.77%
METROPOLITAN BANK & TCO  7,598,997,495.60 1,087,076,900,000.00 0.70%
SECURITY BANK CORP   2,264,379,743.30 386,957,936,302.00 0.59%
QUEZON COCONUT BANK INC (A THRIFT BANK)  409,148.47 70,774,999.75 0.58%
CITIBANK, N.A.   982,359,482.14 193,543,320,404.00 0.51%
BANGKOK BANK PUBLIC CO LTD  28,260,972.33 8,394,858,783.90 0.34%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK  5,386,169.19 1,729,144,655.75 0.31%
KEB HANA BANK - MANILA BRANCH  23,050,214.36 9,433,215,864.00 0.24%
ING BANK N.V.   108.68 15,153,831,208.00 0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 0.00 25,177,431,227.00 0.00%
BANK OF AMERICA N.A.   0.00 11,792,660,148.00 0.00%
BANK OF CHINA LIMITED-MANILA BRANCH  0.00 11,557,837,430.00 0.00%
BDO PRIVATE BANK, INC.  0.00 6,786,073,618.10 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH  0.00 2,194,789,121.30 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH  0.00 1,312,860,000.00 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH  0.00 2,507,360,144.00 0.00%
ISLA BANK(A THRIFT BANK) INC  0.00 856,727,377.58 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.  0.00 28,891,801,398.00 0.00%
MEGA INT'L COMM'L BANK CO LTD  0.00 11,598,801,960.00 0.00%
MIZUHO BANK LTD - MANILA BRANCH  0.00 60,726,858,318.00 0.00%
MUFG BANK, LTD.   0.00 39,557,047,973.00 0.00%
PHIL STAR DEVELOPMENT BANK INC  0.00 23,365,873.62 0.00%
SHINHAN BANK - MANILA BRANCH  0.00 2,279,106,376.60 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 22,314,769,544.00 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH  0.00 1,886,645,980.00 0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH  0.00 0.00 NA
Grand Total 151,869,716,346.10 9,128,164,687,359.33 1.66%



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


  1. Malasiqui Progressive SLB Inc (48.69% of TLP)
  2. Legazpi Savings Bank (27.92% 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 8.31% of Stockholders Equity as of June 30, 2018.
 
 
Philippine Banking System
NPL as % of SE
June 30, 2018









NPL SE NPL/SE
Bank (In PHP) (In PHP) (In %)
ENTERPRISE BANK INC (A THRIFT BANK)  397,531,630.21 255,928,851.45 155.33%
EQUICOM SAVINGS BANK INC  639,559,441.16 705,627,984.97 90.64%
PHILIPPINE VETERANS BANK  2,244,899,440.80 2,786,113,008.00 80.57%
UCPB SAVINGS BANK  1,881,456,594.41 2,634,213,019.40 71.42%
LEGAZPI SAVINGS BANK INC  329,578,715.05 549,357,466.88 59.99%
STERLING BANK OF ASIA INC (A SAVINGS  1,567,148,692.24 2,687,742,085.37 58.31%
PHILIPPINE RESOURCES SAVINGS BANKING  1,179,751,558.32 2,584,678,848.90 45.64%
MARITIME SAVINGS BANK CORPORATION  21,895,317.81 51,712,483.13 42.34%
STANDARD CHARTERED BANK  2,633,305,802.50 6,648,780,037.10 39.61%
CHINA BANK SAVINGS INC  3,781,873,875.79 9,605,233,020.00 39.37%
MALASIQUI PROGRESSIVE SLB, INC  17,776,401.59 47,015,701.96 37.81%
1ST VALLEY BANK INC A DEVELOPMENT BANK  672,608,541.12 1,825,791,198.67 36.84%
BPI DIRECT BANKO INC A SAVINGS BANK  814,235,200.14 2,241,511,112.81 36.33%
BPI FAMILY SAVINGS BANK INC  10,468,965,854.84 29,151,476,551.93 35.91%
UNITED COCONUT PLANTERS BANK  5,637,030,450.60 16,061,149,942.00 35.10%
RCBC SAVINGS BANK INC  4,169,995,103.97 12,965,046,161.93 32.16%
NORTHPOINT DEV'T BANK INC  112,927,580.50 352,164,899.53 32.07%
MALAYAN BANK SAVINGS AND MORT BANK INC  369,652,752.94 1,215,712,099.40 30.41%
BATAAN DEVELOPMENT BANK  25,467,010.45 87,495,176.93 29.11%
WEALTH DEVELOPMENT BANK CORPORATION  405,053,553.43 1,466,070,380.61 27.63%
BANK OF MAKATI (A SAVINGS BANK) INC  2,271,355,751.00 8,238,275,831.54 27.57%
PAMPANGA DEVELOPMENT BANK  56,036,372.72 210,076,452.17 26.67%
PENBANK INC (A PDB) (FORMERLY: PENINSULA  127,664,962.18 486,537,157.86 26.24%
PHIL SAVINGS BANK  5,541,695,108.80 21,335,640,584.46 25.97%
HIYAS BANKING CORPORATION  40,456,381.87 181,661,891.20 22.27%
EAST WEST BANKING CORP  8,947,748,783.20 40,866,792,665.00 21.89%
PRODUCERS SAVINGS BANK CORPORATION  384,458,590.47 1,807,520,461.46 21.27%
UNIVERSITY SAVINGS BANK INC  86,921,859.14 413,440,905.05 21.02%
FIRST CONSOLIDATED BANK INC (A PDB)  930,922,550.94 4,570,662,564.45 20.37%
CITYSTATE SAVINGS BANK INC  136,247,026.40 689,166,525.37 19.77%
PHIL BANK OF COMMUNICATIONS   2,377,981,312.50 12,176,574,918.00 19.53%
PNB SAVINGS BANK  2,300,104,540.68 11,815,509,660.09 19.47%
PHILIPPINE BUSINESS BANK INC A SAVINGS  1,854,076,328.08 10,483,404,670.03 17.69%
BUSINESS AND CONSUMERS BANK (A DB)  14,966,364.02 89,288,568.22 16.76%
CORDILLERA SAVINGS BANK INC  20,233,158.02 125,480,691.01 16.12%
MAYBANK PHILIPPINES INCORPORATED  1,893,373,519.10 12,631,096,125.00 14.99%
DEVELOPMENT BANK OF THE PHIL  6,833,844,003.90 48,566,251,889.00 14.07%
ALLBANK (A THRIFT BANK) INC  134,216,215.54 1,023,982,884.40 13.11%
METRO CEBU PUBLIC SAVINGS BANK  9,340,189.11 73,784,149.66 12.66%
MERCHANTS SAVINGS & LOAN ASSN INC  72,606,891.31 575,687,456.31 12.61%
YUANTA SAVINGS BANK PHILIPPINES INC  114,070,749.99 904,676,373.66 12.61%
FARMERS SAVINGS & LOAN BANK INC  16,432,486.76 130,364,483.10 12.61%
BANK OF COMMERCE   1,790,008,869.00 14,938,230,238.00 11.98%
ASIA UNITED BANK CORPORATION  3,000,943,436.40 26,734,337,352.00 11.23%
UNION BANK OF THE PHILS  7,764,720,733.10 72,244,542,805.00 10.75%
CARD SME BANK INC A THRIFT BANK  98,098,716.66 1,068,715,715.70 9.18%
SUN SAVINGS BANK INC  20,766,750.32 230,235,251.89 9.02%
INTER-ASIA DEVELOPMENT BANK  7,160,669.24 80,488,067.51 8.90%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT  42,442,605.42 488,777,914.10 8.68%
BANK ONE SAVINGS CORPORATION  51,920,016.00 607,047,008.69 8.55%
LAND BANK OF THE PHILIPPINES  9,702,134,275.60 117,374,308,128.00 8.27%
PHIL NATIONAL BANK   8,855,596,734.50 114,207,589,536.00 7.75%
CTBC BANK (PHILIPPINES) CORP  496,519,465.43 7,054,202,387.70 7.04%
PACIFIC ACE SAVINGS BANK INC  4,706,728.00 76,319,158.55 6.17%
ROBINSONS BANK CORPORATION   758,692,635.02 12,451,018,444.00 6.09%
BDO UNIBANK INC   17,834,422,711.00 302,727,692,901.00 5.89%
CITIBANK, N.A.   982,359,482.14 16,972,865,147.00 5.79%
PHIL TRUST COMPANY   1,119,876,214.30 20,094,247,461.00 5.57%
DUMAGUETE CITY DEV BANK INC  14,935,890.88 276,068,221.03 5.41%
RIZAL COMM'L BANKING CORP  3,537,445,273.10 67,855,734,755.00 5.21%
BANK OF THE PHIL ISLANDS  10,576,324,545.00 236,510,566,778.00 4.47%
CHINA BANKING CORP   3,199,071,460.70 77,361,534,085.00 4.14%
LIFE SAVINGS BANK INC  2,830,739.19 70,212,720.47 4.03%
HONGKONG & SHANGHAI BANKING CORP  501,255,503.13 13,704,308,950.00 3.66%
METROPOLITAN BANK & TCO  7,598,997,495.60 271,288,474,885.00 2.80%
LEMERY SAVINGS & LOAN BANK, INC.  2,090,392.45 87,226,998.60 2.40%
SECURITY BANK CORP   2,264,379,743.30 105,358,324,351.00 2.15%
HSBC SAVINGS BANK(PHILS) INC  34,454,464.98 1,651,920,450.79 2.09%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 4,111,569.36 207,304,386.94 1.98%
KEB HANA BANK - MANILA BRANCH  23,050,214.36 1,593,068,223.20 1.45%
CENTURY SAVINGS BANK CORPORATION  10,875,949.65 979,093,994.24 1.11%
BANGKOK BANK PUBLIC CO LTD  28,260,972.33 3,191,367,607.00 0.89%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK  5,386,169.19 678,186,107.53 0.79%
QUEZON COCONUT BANK INC (A THRIFT BANK)  409,148.47 59,057,662.60 0.69%
ING BANK N.V.   108.68 2,496,294,618.90 0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 0.00 4,289,984,200.10 0.00%
BANK OF AMERICA N.A.   0.00 2,186,648,013.80 0.00%
BANK OF CHINA LIMITED-MANILA BRANCH  0.00 10,215,436,439.00 0.00%
BDO PRIVATE BANK, INC.  0.00 5,055,695,493.00 0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH  0.00 5,191,602,246.40 0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH  0.00 2,004,340,503.30 0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH  0.00 2,091,760,749.60 0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH  0.00 2,262,097,237.40 0.00%
ISLA BANK(A THRIFT BANK) INC  0.00 686,066,258.00 0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.  0.00 2,809,504,881.60 0.00%
MEGA INT'L COMM'L BANK CO LTD  0.00 1,901,392,546.00 0.00%
MIZUHO BANK LTD - MANILA BRANCH  0.00 5,488,489,623.70 0.00%
MUFG BANK, LTD.   0.00 4,676,779,499.50 0.00%
PHIL STAR DEVELOPMENT BANK INC  0.00 101,999,171.52 0.00%
SHINHAN BANK - MANILA BRANCH  0.00 2,206,107,767.20 0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 13,004,369,812.00 0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH  0.00 2,392,823,488.50 0.00%
Grand Total 151,869,716,346.10 1,828,603,157,180.07 8.31%
 
 
Of the 92 banks in this list, eighteen banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of June 30, 2018.  These banks are as follows:

  1. Enterprise Bank Inc (155.33% of SE)
  2. Equicom Savings Bank Inc (90.64% of SE)
  3. Philippine Veterans Bank (80.57% of SE)
  4. UCPB Savings Bank (71.42% of SE)
  5. Legazpi Savings Bank (59.99% of SE)
  6. Sterling Bank of Asia Inc (58.31% of SE)
  7. Philippine Resources Savings Banking Corporation (45.64% of SE)
  8. Maritime Savings Bank Corporation (42.34% of SE)
  9. Standard Chartered Bank (39.61% of SE)
  10. China Bank Savings Inc (39.37% of SE)
  11. Malasiqui Progressive SLB Inc (37.81% of SE)
  12. 1st Valley Bank Inc (36.84% of SE)
  13.  BPI Direct Banko Inc (36.33% of SE)
  14.  BPI Family Savings Bank Inc (35.91% of SE)
  15.  United Coconut Planters Bank (35.10% of SE)
  16.  RCBC Savings Bank Inc (32.16% of SE)
  17.  Northpoint Development Bank Inc (32.07% of SE)
  18.  Malayan Bank Savings and Mortgage Bank Inc (30.41% of SE)
Source: www.bsp.gov.ph

Sunday, December 2, 2018

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - June 30, 2018

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of June 30, 2018", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 1.91% as of June 30, 2018, is below the historic average of 4.08% 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 30 banks (highlighted in yellow, failed banks in red) fall into this deficiency.



 
Philippine Banking System
NPL Coverage Ratio
June 30, 2018








Bank Loan Loss Provisions Gross NPLs NPL Coverage Ratio
ALLBANK (A THRIFT BANK) INC  33,943,161.99 134,216,215.54 25.29%
UCPB SAVINGS BANK  536,011,384.46 1,881,456,594.41 28.49%
MARITIME SAVINGS BANK CORPORATION  6,948,645.24 21,895,317.81 31.74%
PHILIPPINE RESOURCES SAVINGS BANKING  384,104,649.18 1,179,751,558.32 32.56%
PNB SAVINGS BANK  757,713,070.25 2,300,104,540.68 32.94%
ENTERPRISE BANK INC (A THRIFT BANK)  148,926,171.26 397,531,630.21 37.46%
WEALTH DEVELOPMENT BANK CORPORATION  155,823,456.99 405,053,553.43 38.47%
EQUICOM SAVINGS BANK INC  248,392,363.03 639,559,441.16 38.84%
MALASIQUI PROGRESSIVE SLB, INC  6,951,706.48 17,776,401.59 39.11%
PACIFIC ACE SAVINGS BANK INC  1,949,435.10 4,706,728.00 41.42%
1ST VALLEY BANK INC A DEVELOPMENT BANK  283,317,794.20 672,608,541.12 42.12%
STERLING BANK OF ASIA INC (A SAVINGS  713,245,697.54 1,567,148,692.24 45.51%
CHINA BANK SAVINGS INC  1,905,541,832.88 3,781,873,875.79 50.39%
UNIVERSITY SAVINGS BANK INC  44,555,430.47 86,921,859.14 51.26%
PRODUCERS SAVINGS BANK CORPORATION  208,502,774.27 384,458,590.47 54.23%
RCBC SAVINGS BANK INC  2,266,957,467.57 4,169,995,103.97 54.36%
CITYSTATE SAVINGS BANK INC  77,047,455.98 136,247,026.40 56.55%
PAMPANGA DEVELOPMENT BANK  33,789,534.28 56,036,372.72 60.30%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 2,733,679.43 4,111,569.36 66.49%
BUSINESS AND CONSUMERS BANK (A DB)  10,017,575.29 14,966,364.02 66.93%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT  28,689,168.15 42,442,605.42 67.60%
UNITED COCONUT PLANTERS BANK  3,861,794,657.80 5,637,030,450.60 68.51%
BPI FAMILY SAVINGS BANK INC  7,176,599,160.70 10,468,965,854.84 68.55%
EAST WEST BANKING CORP  6,163,885,463.22 8,947,748,783.20 68.89%
FIRST CONSOLIDATED BANK INC (A PDB)  654,503,708.14 930,922,550.94 70.31%
HIYAS BANKING CORPORATION  28,859,545.81 40,456,381.87 71.33%
CORDILLERA SAVINGS BANK INC  15,115,504.60 20,233,158.02 74.71%
UNION BANK OF THE PHILS  5,886,754,006.60 7,764,720,733.10 75.81%
STANDARD CHARTERED BANK  2,060,854,781.77 2,633,305,802.50 78.26%
PHIL SAVINGS BANK  4,393,946,529.27 5,541,695,108.80 79.29%
LEGAZPI SAVINGS BANK INC  267,915,422.76 329,578,715.05 81.29%
PHILIPPINE BUSINESS BANK INC A SAVINGS  1,564,463,062.38 1,854,076,328.08 84.38%
BATAAN DEVELOPMENT BANK  21,551,136.32 25,467,010.45 84.62%
BANK ONE SAVINGS CORPORATION  44,360,200.39 51,920,016.00 85.44%
BANK OF MAKATI (A SAVINGS BANK) INC  2,014,409,463.94 2,271,355,751.00 88.69%
ASIA UNITED BANK CORPORATION  2,707,980,036.40 3,000,943,436.40 90.24%
SUN SAVINGS BANK INC  19,004,436.35 20,766,750.32 91.51%
YUANTA SAVINGS BANK PHILIPPINES INC  105,932,765.93 114,070,749.99 92.87%
PHIL BANK OF COMMUNICATIONS   2,230,711,405.42 2,377,981,312.50 93.81%
INTER-ASIA DEVELOPMENT BANK  6,847,736.00 7,160,669.24 95.63%
PENBANK INC (A PDB) (FORMERLY: PENINSULA  122,667,240.05 127,664,962.18 96.09%
BPI DIRECT BANKO INC A SAVINGS BANK  787,492,845.37 814,235,200.14 96.72%
RIZAL COMM'L BANKING CORP  3,433,264,411.45 3,537,445,273.10 97.05%
MALAYAN BANK SAVINGS AND MORT BANK INC  361,423,970.33 369,652,752.94 97.77%
NORTHPOINT DEV'T BANK INC  118,459,622.13 112,927,580.50 104.90%
DEVELOPMENT BANK OF THE PHIL  7,345,351,988.80 6,833,844,003.90 107.48%
PHILIPPINE VETERANS BANK  2,462,760,755.53 2,244,899,440.80 109.70%
MAYBANK PHILIPPINES INCORPORATED  2,088,668,695.90 1,893,373,519.10 110.31%
MERCHANTS SAVINGS & LOAN ASSN INC  80,188,059.67 72,606,891.31 110.44%
LEMERY SAVINGS & LOAN BANK, INC.  2,374,586.45 2,090,392.45 113.60%
ROBINSONS BANK CORPORATION   872,785,890.55 758,692,635.02 115.04%
BANK OF COMMERCE   2,276,436,875.69 1,790,008,869.00 127.17%
DUMAGUETE CITY DEV BANK INC  19,299,237.59 14,935,890.88 129.21%
PHIL NATIONAL BANK   12,466,978,484.90 8,855,596,734.50 140.78%
LAND BANK OF THE PHILIPPINES  13,933,110,440.10 9,702,134,275.60 143.61%
CTBC BANK (PHILIPPINES) CORP  761,964,752.87 496,519,465.43 153.46%
FARMERS SAVINGS & LOAN BANK INC  26,635,401.48 16,432,486.76 162.09%
BANK OF THE PHIL ISLANDS  17,231,821,061.20 10,576,324,545.00 162.93%
CARD SME BANK INC A THRIFT BANK  160,862,682.64 98,098,716.66 163.98%
CHINA BANKING CORP   5,546,148,140.10 3,199,071,460.70 173.37%
CENTURY SAVINGS BANK CORPORATION  19,537,665.62 10,875,949.65 179.64%
BDO UNIBANK INC   32,288,167,672.00 17,834,422,711.00 181.04%
LIFE SAVINGS BANK INC  5,424,695.67 2,830,739.19 191.64%
METRO CEBU PUBLIC SAVINGS BANK  18,669,869.21 9,340,189.11 199.89%
METROPOLITAN BANK & TCO  17,584,868,216.20 7,598,997,495.60 231.41%
SECURITY BANK CORP   6,170,190,831.40 2,264,379,743.30 272.49%
PHIL TRUST COMPANY   3,241,974,941.72 1,119,876,214.30 289.49%
HSBC SAVINGS BANK(PHILS) INC  110,492,201.78 34,454,464.98 320.69%
HONGKONG & SHANGHAI BANKING CORP  1,752,444,541.53 501,255,503.13 349.61%
QUEZON COCONUT BANK INC (A THRIFT BANK)  1,433,319.51 409,148.47 350.32%
KEB HANA BANK - MANILA BRANCH  86,823,705.95 23,050,214.36 376.67%
CITIBANK, N.A.   3,965,629,763.80 982,359,482.14 403.68%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK  23,456,387.15 5,386,169.19 435.49%
BANGKOK BANK PUBLIC CO LTD  431,981,327.30 28,260,972.33 1528.54%
ING BANK N.V.   109,725,921.33 108.68 100962386.21%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 92,198,639.03 0.00 NA
BANK OF AMERICA N.A.   10,539,078.03 0.00 NA
BANK OF CHINA LIMITED-MANILA BRANCH  213,607,441.58 0.00 NA
BDO PRIVATE BANK, INC.  9,027,427.33 0.00 NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH  40,955,384.07 0.00 NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH  7,558,600.00 0.00 NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH  0.00 0.00 NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH  24,462,732.17 0.00 NA
ISLA BANK(A THRIFT BANK) INC  4,290,580.33 0.00 NA
JP MORGAN CHASE BANK NATIONAL ASSN.  16,000,000.00 0.00 NA
MEGA INT'L COMM'L BANK CO LTD  141,821,431.83 0.00 NA
MIZUHO BANK LTD - MANILA BRANCH  519,990,226.78 0.00 NA
MUFG BANK, LTD.   388,210,030.46 0.00 NA
PHIL STAR DEVELOPMENT BANK INC  312,222.47 0.00 NA
SHINHAN BANK - MANILA BRANCH  22,491,063.77 0.00 NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 175,897,695.44 0.00 NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH  16,444,498.47 0.00 NA
Grand Total 184,673,974,732.57 151,869,716,346.10 121.60%


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, 2018










Bank Gross NPLs Minimum Loan Loss Provisions at 80% NPL Coverage Ratio Stockholder's Equity Impact on SE
ENTERPRISE BANK INC (A THRIFT BANK)  397,531,630.21 318,025,304.17 255,928,851.45 -66.07%
EQUICOM SAVINGS BANK INC  639,559,441.16 511,647,552.93 705,627,984.97 -37.31%
UCPB SAVINGS BANK  1,881,456,594.41 1,505,165,275.53 2,634,213,019.40 -36.79%
PHILIPPINE RESOURCES SAVINGS BANKING  1,179,751,558.32 943,801,246.66 2,584,678,848.90 -21.65%
MARITIME SAVINGS BANK CORPORATION  21,895,317.81 17,516,254.25 51,712,483.13 -20.44%
STERLING BANK OF ASIA INC (A SAVINGS  1,567,148,692.24 1,253,718,953.79 2,687,742,085.37 -20.11%
MALASIQUI PROGRESSIVE SLB, INC  17,776,401.59 14,221,121.27 47,015,701.96 -15.46%
1ST VALLEY BANK INC A DEVELOPMENT BANK  672,608,541.12 538,086,832.90 1,825,791,198.67 -13.95%
CHINA BANK SAVINGS INC  3,781,873,875.79 3,025,499,100.63 9,605,233,020.00 -11.66%
WEALTH DEVELOPMENT BANK CORPORATION  405,053,553.43 324,042,842.74 1,466,070,380.61 -11.47%
PNB SAVINGS BANK  2,300,104,540.68 1,840,083,632.54 11,815,509,660.09 -9.16%
RCBC SAVINGS BANK INC  4,169,995,103.97 3,335,996,083.18 12,965,046,161.93 -8.25%
ALLBANK (A THRIFT BANK) INC  134,216,215.54 107,372,972.43 1,023,982,884.40 -7.17%
UNIVERSITY SAVINGS BANK INC  86,921,859.14 69,537,487.31 413,440,905.05 -6.04%
PRODUCERS SAVINGS BANK CORPORATION  384,458,590.47 307,566,872.38 1,807,520,461.46 -5.48%
PAMPANGA DEVELOPMENT BANK  56,036,372.72 44,829,098.18 210,076,452.17 -5.26%
CITYSTATE SAVINGS BANK INC  136,247,026.40 108,997,621.12 689,166,525.37 -4.64%
BPI FAMILY SAVINGS BANK INC  10,468,965,854.84 8,375,172,683.87 29,151,476,551.93 -4.11%
UNITED COCONUT PLANTERS BANK  5,637,030,450.60 4,509,624,360.48 16,061,149,942.00 -4.03%
EAST WEST BANKING CORP  8,947,748,783.20 7,158,199,026.56 40,866,792,665.00 -2.43%
PACIFIC ACE SAVINGS BANK INC  4,706,728.00 3,765,382.40 76,319,158.55 -2.38%
BUSINESS AND CONSUMERS BANK (A DB)  14,966,364.02 11,973,091.22 89,288,568.22 -2.19%
FIRST CONSOLIDATED BANK INC (A PDB)  930,922,550.94 744,738,040.75 4,570,662,564.45 -1.97%
HIYAS BANKING CORPORATION  40,456,381.87 32,365,105.50 181,661,891.20 -1.93%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT  42,442,605.42 33,954,084.34 488,777,914.10 -1.08%
CORDILLERA SAVINGS BANK INC  20,233,158.02 16,186,526.42 125,480,691.01 -0.85%
STANDARD CHARTERED BANK  2,633,305,802.50 2,106,644,642.00 6,648,780,037.10 -0.69%
UNION BANK OF THE PHILS  7,764,720,733.10 6,211,776,586.48 72,244,542,805.00 -0.45%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 4,111,569.36 3,289,255.49 207,304,386.94 -0.27%
PHIL SAVINGS BANK  5,541,695,108.80 4,433,356,087.04 21,335,640,584.46 -0.18%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH  0.00 0.00 2,091,760,749.60 0.00%
BDO PRIVATE BANK, INC.  0.00 0.00 5,055,695,493.00 0.18%
PHIL STAR DEVELOPMENT BANK INC  0.00 0.00 101,999,171.52 0.31%
FIRST COMMERCIAL BANK LTD MANILA BRANCH  0.00 0.00 2,004,340,503.30 0.38%
BANK ONE SAVINGS CORPORATION  51,920,016.00 41,536,012.80 607,047,008.69 0.47%
BANK OF AMERICA N.A.   0.00 0.00 2,186,648,013.80 0.48%
JP MORGAN CHASE BANK NATIONAL ASSN.  0.00 0.00 2,809,504,881.60 0.57%
ISLA BANK(A THRIFT BANK) INC  0.00 0.00 686,066,258.00 0.63%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH  0.00 0.00 2,392,823,488.50 0.69%
LEGAZPI SAVINGS BANK INC  329,578,715.05 263,662,972.04 549,357,466.88 0.77%
PHILIPPINE BUSINESS BANK INC A SAVINGS  1,854,076,328.08 1,483,261,062.46 10,483,404,670.03 0.77%
CATHAY UNITED BANK CO LTD - MANILA BRANCH  0.00 0.00 5,191,602,246.40 0.79%
LEMERY SAVINGS & LOAN BANK, INC.  2,090,392.45 1,672,313.96 87,226,998.60 0.81%
RIZAL COMM'L BANKING CORP  3,537,445,273.10 2,829,956,218.48 67,855,734,755.00 0.89%
SHINHAN BANK - MANILA BRANCH  0.00 0.00 2,206,107,767.20 1.02%
SUN SAVINGS BANK INC  20,766,750.32 16,613,400.26 230,235,251.89 1.04%
INDUSTRIAL BANK OF KOREA MANILA BRANCH  0.00 0.00 2,262,097,237.40 1.08%
CENTURY SAVINGS BANK CORPORATION  10,875,949.65 8,700,759.72 979,093,994.24 1.11%
ASIA UNITED BANK CORPORATION  3,000,943,436.40 2,400,754,749.12 26,734,337,352.00 1.15%
BATAAN DEVELOPMENT BANK  25,467,010.45 20,373,608.36 87,495,176.93 1.35%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH 0.00 0.00 13,004,369,812.00 1.35%
INTER-ASIA DEVELOPMENT BANK  7,160,669.24 5,728,535.39 80,488,067.51 1.39%
YUANTA SAVINGS BANK PHILIPPINES INC  114,070,749.99 91,256,599.99 904,676,373.66 1.62%
QUEZON COCONUT BANK INC (A THRIFT BANK)  409,148.47 327,318.78 59,057,662.60 1.87%
BANK OF CHINA LIMITED-MANILA BRANCH  0.00 0.00 10,215,436,439.00 2.09%
ROBINSONS BANK CORPORATION   758,692,635.02 606,954,108.02 12,451,018,444.00 2.14%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED 0.00 0.00 4,289,984,200.10 2.15%
BANK OF MAKATI (A SAVINGS BANK) INC  2,271,355,751.00 1,817,084,600.80 8,238,275,831.54 2.40%
DUMAGUETE CITY DEV BANK INC  14,935,890.88 11,948,712.70 276,068,221.03 2.66%
PHIL BANK OF COMMUNICATIONS   2,377,981,312.50 1,902,385,050.00 12,176,574,918.00 2.70%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK  5,386,169.19 4,308,935.35 678,186,107.53 2.82%
BANK OF THE PHIL ISLANDS  10,576,324,545.00 8,461,059,636.00 236,510,566,778.00 3.71%
MERCHANTS SAVINGS & LOAN ASSN INC  72,606,891.31 58,085,513.05 575,687,456.31 3.84%
CHINA BANKING CORP   3,199,071,460.70 2,559,257,168.56 77,361,534,085.00 3.86%
DEVELOPMENT BANK OF THE PHIL  6,833,844,003.90 5,467,075,203.12 48,566,251,889.00 3.87%
SECURITY BANK CORP   2,264,379,743.30 1,811,503,794.64 105,358,324,351.00 4.14%
PENBANK INC (A PDB) (FORMERLY: PENINSULA  127,664,962.18 102,131,969.74 486,537,157.86 4.22%
METROPOLITAN BANK & TCO  7,598,997,495.60 6,079,197,996.48 271,288,474,885.00 4.24%
KEB HANA BANK - MANILA BRANCH  23,050,214.36 18,440,171.49 1,593,068,223.20 4.29%
ING BANK N.V.   108.68 86.94 2,496,294,618.90 4.40%
LIFE SAVINGS BANK INC  2,830,739.19 2,264,591.35 70,212,720.47 4.50%
MAYBANK PHILIPPINES INCORPORATED  1,893,373,519.10 1,514,698,815.28 12,631,096,125.00 4.54%
PHIL NATIONAL BANK   8,855,596,734.50 7,084,477,387.60 114,207,589,536.00 4.71%
HSBC SAVINGS BANK(PHILS) INC  34,454,464.98 27,563,571.98 1,651,920,450.79 5.02%
CTBC BANK (PHILIPPINES) CORP  496,519,465.43 397,215,572.34 7,054,202,387.70 5.17%
LAND BANK OF THE PHILIPPINES  9,702,134,275.60 7,761,707,420.48 117,374,308,128.00 5.26%
MALAYAN BANK SAVINGS AND MORT BANK INC  369,652,752.94 295,722,202.35 1,215,712,099.40 5.40%
BANK OF COMMERCE   1,790,008,869.00 1,432,007,095.20 14,938,230,238.00 5.65%
BDO UNIBANK INC   17,834,422,711.00 14,267,538,168.80 302,727,692,901.00 5.95%
BPI DIRECT BANKO INC A SAVINGS BANK  814,235,200.14 651,388,160.11 2,241,511,112.81 6.07%
MEGA INT'L COMM'L BANK CO LTD  0.00 0.00 1,901,392,546.00 7.46%
CARD SME BANK INC A THRIFT BANK  98,098,716.66 78,478,973.33 1,068,715,715.70 7.71%
NORTHPOINT DEV'T BANK INC  112,927,580.50 90,342,064.40 352,164,899.53 7.98%
MUFG BANK, LTD.   0.00 0.00 4,676,779,499.50 8.30%
MIZUHO BANK LTD - MANILA BRANCH  0.00 0.00 5,488,489,623.70 9.47%
HONGKONG & SHANGHAI BANKING CORP  501,255,503.13 401,004,402.50 13,704,308,950.00 9.86%
FARMERS SAVINGS & LOAN BANK INC  16,432,486.76 13,145,989.41 130,364,483.10 10.35%
PHIL TRUST COMPANY   1,119,876,214.30 895,900,971.44 20,094,247,461.00 11.68%
BANGKOK BANK PUBLIC CO LTD  28,260,972.33 22,608,777.86 3,191,367,607.00 12.83%
METRO CEBU PUBLIC SAVINGS BANK  9,340,189.11 7,472,151.29 73,784,149.66 15.18%
CITIBANK, N.A.   982,359,482.14 785,887,585.71 16,972,865,147.00 18.73%
PHILIPPINE VETERANS BANK  2,244,899,440.80 1,795,919,552.64 2,786,113,008.00 23.93%
Grand Total 151,869,716,346.10 121,495,773,076.88 1,828,603,157,180.07 3.45%
 



Source: www.bsp.gov.ph


Out of the five banks highlighted in yellow, three banks have been regularly listed as one of the "The Top Distressed Philippine Banks as of June 30, 2018".

The most notable of the banks in this list is Enterprise Bank. The bank faces a shortfall of 66.07% of its stated stockholder's equity of Php 255.93 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. In short, most of its equity would be wiped out if the bank were to properly account for its losses.