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Sunday, September 29, 2019

A Simple Stress Test of Philippine Banks as of March 31, 2019

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 197.13` billion or 9.48% of the PhP 2,078.44 billion in Stockholders Equity (SE) as of March 31, 2019.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

 


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, 2019, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 429.22 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 197.13 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 429.22 billion or 19.46% of the Php 2.20 trillion in Total Capital Cushion of Philippine Banks as of March 31, 2019.

 
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 19.46% 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 9.73%.


Individual Banks


A 10% write-off of Classified Loans would severely impact (by 25% or more) the Total Capital Cushion of eleven banks (severely affected banks highlighted in yellow).


 
Philippine Banking System
Impact of 10% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019











Classified Loans 10% Classified Loan Loss Severity Total Capital Cushion Impact of 10% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
SAVIOUR RURAL BANK INC  508,362,134.12 50,836,213.41 101,990,261.31 49.84%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC  836,410,095.47 83,641,009.55 188,221,991.32 44.44%
RB OF JAEN INC   245,748,458.38 24,574,845.84 59,232,407.94 41.49%
MOUNT MAKILING RURAL BANK INC  950,903,559.85 95,090,355.99 278,855,031.66 34.10%
INTER-ASIA DEVELOPMENT BANK 310,975,394.74 31,097,539.47 91,796,389.86 33.88%
COOP BANK OF CAGAYAN   349,123,099.49 34,912,309.95 105,322,538.61 33.15%
VILLAGE BANK INC (A RURAL BANK)  349,950,000.00 34,995,000.00 106,430,495.60 32.88%
RB OF BROOKE'S POINT (PALAWAN) INC  326,810,200.33 32,681,020.03 101,629,964.67 32.16%
BENGUET CENTER BANK INC A RB  203,887,898.01 20,388,789.80 64,294,387.22 31.71%
RB OF DULAG (LEYTE) INC  325,743,738.09 32,574,373.81 119,420,435.33 27.28%
COMMTY RB OF DAPITAN CITY INC  423,834,317.50 42,383,431.75 161,867,993.76 26.18%


 A 20% write-off of Classified Loans will severely impact the Total Capital Cushion of twenty-seven banks:

 
Philippine Banking System
Impact of 20% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019











Classified Loans 20% Classified Loan Loss Severity Total Capital Cushion Impact of 20% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
SAVIOUR RURAL BANK INC  508,362,134.12 101,672,426.82 101,990,261.31 99.69%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC  836,410,095.47 167,282,019.09 188,221,991.32 88.87%
RB OF JAEN INC   245,748,458.38 49,149,691.68 59,232,407.94 82.98%
MOUNT MAKILING RURAL BANK INC  950,903,559.85 190,180,711.97 278,855,031.66 68.20%
INTER-ASIA DEVELOPMENT BANK 310,975,394.74 62,195,078.95 91,796,389.86 67.75%
COOP BANK OF CAGAYAN   349,123,099.49 69,824,619.90 105,322,538.61 66.30%
VILLAGE BANK INC (A RURAL BANK)  349,950,000.00 69,990,000.00 106,430,495.60 65.76%
RB OF BROOKE'S POINT (PALAWAN) INC  326,810,200.33 65,362,040.07 101,629,964.67 64.31%
BENGUET CENTER BANK INC A RB  203,887,898.01 40,777,579.60 64,294,387.22 63.42%
RB OF DULAG (LEYTE) INC  325,743,738.09 65,148,747.62 119,420,435.33 54.55%
COMMTY RB OF DAPITAN CITY INC  423,834,317.50 84,766,863.50 161,867,993.76 52.37%
RB OF MIDSAYAP INC   220,163,699.12 44,032,739.82 102,966,058.13 42.76%
RB OF GENERAL TRIAS INC  261,603,795.02 52,320,759.00 139,393,957.69 37.53%
RB OF SAN MATEO(ISABELA) INC  256,426,832.43 51,285,366.49 137,514,038.45 37.29%
RB OF CARDONA (RIZAL) INC  263,607,057.40 52,721,411.48 142,508,947.39 37.00%
YUANTA SAVINGS BANK PHILIPPINES INC 1,820,245,950.34 364,049,190.07 992,257,234.14 36.69%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,633,507,798.20 526,701,559.64 1,468,433,302.28 35.87%
TANAY RB INC   711,592,793.30 142,318,558.66 413,538,998.72 34.41%
BANK OF CHINA LIMITED-MANILA BRANCH 17,190,443,937.60 3,438,088,787.52 10,050,902,348.08 34.21%
PLANBANK "RB OF CANLUBANG PLANTERS INC"  261,072,015.73 52,214,403.15 154,425,067.15 33.81%
RB OF PILAR (BATAAN) INC  259,270,339.01 51,854,067.80 154,060,715.31 33.66%
RANG-AY BANK INC (A RURAL BANK)  891,533,375.17 178,306,675.03 538,461,371.90 33.11%
VALIANT BANK INC (A RURAL BANK)  388,771,681.35 77,754,336.27 235,494,542.72 33.02%
AMA RURAL BANK OF MANDALUYONG INC  1,355,753,000.00 271,150,600.00 891,921,691.67 30.40%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 2,496,093,478.22 8,381,446,388.01 29.78%
RB OF SAN LUIS (PAMPANGA) INC  166,312,754.71 33,262,550.94 115,428,386.16 28.82%
RB OF MARIA AURORA (AURORA) INC  329,928,490.23 65,985,698.05 238,887,658.99 27.62%
RB OF BAMBANG (NUEVA VIZCAYA) INC  191,102,472.70 38,220,494.54 138,569,500.13 27.58%
RCBC SAVINGS BANK INC 19,595,015,284.38 3,919,003,056.88 15,268,125,557.71 25.67%

  

A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of five bank (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of thirty-three other banks:

 
Philippine Banking System
Impact of 30% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019











Classified Loans 30% Classified Loan Loss Severity Total Capital Cushion Impact of 30% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
SAVIOUR RURAL BANK INC  508,362,134.12 152,508,640.24 101,990,261.31 149.53%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC  836,410,095.47 250,923,028.64 188,221,991.32 133.31%
RB OF JAEN INC   245,748,458.38 73,724,537.51 59,232,407.94 124.47%
MOUNT MAKILING RURAL BANK INC  950,903,559.85 285,271,067.96 278,855,031.66 102.30%
INTER-ASIA DEVELOPMENT BANK 310,975,394.74 93,292,618.42 91,796,389.86 101.63%
COOP BANK OF CAGAYAN   349,123,099.49 104,736,929.85 105,322,538.61 99.44%
VILLAGE BANK INC (A RURAL BANK)  349,950,000.00 104,985,000.00 106,430,495.60 98.64%
RB OF BROOKE'S POINT (PALAWAN) INC  326,810,200.33 98,043,060.10 101,629,964.67 96.47%
BENGUET CENTER BANK INC A RB  203,887,898.01 61,166,369.40 64,294,387.22 95.13%
RB OF DULAG (LEYTE) INC  325,743,738.09 97,723,121.43 119,420,435.33 81.83%
COMMTY RB OF DAPITAN CITY INC  423,834,317.50 127,150,295.25 161,867,993.76 78.55%
RB OF MIDSAYAP INC   220,163,699.12 66,049,109.74 102,966,058.13 64.15%
RB OF GENERAL TRIAS INC  261,603,795.02 78,481,138.51 139,393,957.69 56.30%
RB OF SAN MATEO(ISABELA) INC  256,426,832.43 76,928,049.73 137,514,038.45 55.94%
RB OF CARDONA (RIZAL) INC  263,607,057.40 79,082,117.22 142,508,947.39 55.49%
YUANTA SAVINGS BANK PHILIPPINES INC 1,820,245,950.34 546,073,785.10 992,257,234.14 55.03%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,633,507,798.20 790,052,339.46 1,468,433,302.28 53.80%
TANAY RB INC   711,592,793.30 213,477,837.99 413,538,998.72 51.62%
BANK OF CHINA LIMITED-MANILA BRANCH 17,190,443,937.60 5,157,133,181.28 10,050,902,348.08 51.31%
PLANBANK "RB OF CANLUBANG PLANTERS INC"  261,072,015.73 78,321,604.72 154,425,067.15 50.72%
RB OF PILAR (BATAAN) INC  259,270,339.01 77,781,101.70 154,060,715.31 50.49%
RANG-AY BANK INC (A RURAL BANK)  891,533,375.17 267,460,012.55 538,461,371.90 49.67%
VALIANT BANK INC (A RURAL BANK)  388,771,681.35 116,631,504.41 235,494,542.72 49.53%
AMA RURAL BANK OF MANDALUYONG INC  1,355,753,000.00 406,725,900.00 891,921,691.67 45.60%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 3,744,140,217.32 8,381,446,388.01 44.67%
RB OF SAN LUIS (PAMPANGA) INC  166,312,754.71 49,893,826.41 115,428,386.16 43.22%
RB OF MARIA AURORA (AURORA) INC  329,928,490.23 98,978,547.07 238,887,658.99 41.43%
RB OF BAMBANG (NUEVA VIZCAYA) INC  191,102,472.70 57,330,741.81 138,569,500.13 41.37%
RCBC SAVINGS BANK INC 19,595,015,284.38 5,878,504,585.31 15,268,125,557.71 38.50%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 431,463,894.41 129,439,168.32 368,615,858.88 35.11%
ILOCOS CONSOLIDATED COOPERATIVE BANK  281,586,877.24 84,476,063.17 277,471,591.70 30.44%
GATEWAY RURAL BANK INC  114,742,453.88 34,422,736.16 121,478,790.50 28.34%
GUAGUA RURAL BANK INC  1,071,735,536.80 321,520,661.04 1,146,712,356.53 28.04%
RB OF BAYOMBONG INC   171,444,064.32 51,433,219.30 184,378,189.97 27.90%
BOF INC (A RURAL BANK)  588,959,606.28 176,687,881.88 644,838,657.19 27.40%
EQUICOM SAVINGS BANK INC 878,429,475.19 263,528,842.56 990,367,470.10 26.61%
BATAAN DEVELOPMENT BANK 102,400,000.00 30,720,000.00 116,600,014.14 26.35%
UCPB SAVINGS BANK 2,911,217,229.07 873,365,168.72 3,408,915,226.74 25.62%


A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of eleven banks and severely affect (reduce by 25% or more) the Total Capital Cushion of forty-three more banks:

 
Philippine Banking System
Impact of 40% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019











Classified Loans 40% Classified Loan Loss Severity Total Capital Cushion Impact of 40% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
SAVIOUR RURAL BANK INC  508,362,134.12 203,344,853.65 101,990,261.31 199.38%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC  836,410,095.47 334,564,038.19 188,221,991.32 177.75%
RB OF JAEN INC   245,748,458.38 98,299,383.35 59,232,407.94 165.96%
MOUNT MAKILING RURAL BANK INC  950,903,559.85 380,361,423.94 278,855,031.66 136.40%
INTER-ASIA DEVELOPMENT BANK 310,975,394.74 124,390,157.90 91,796,389.86 135.51%
COOP BANK OF CAGAYAN   349,123,099.49 139,649,239.80 105,322,538.61 132.59%
VILLAGE BANK INC (A RURAL BANK)  349,950,000.00 139,980,000.00 106,430,495.60 131.52%
RB OF BROOKE'S POINT (PALAWAN) INC  326,810,200.33 130,724,080.13 101,629,964.67 128.63%
BENGUET CENTER BANK INC A RB  203,887,898.01 81,555,159.20 64,294,387.22 126.85%
RB OF DULAG (LEYTE) INC  325,743,738.09 130,297,495.24 119,420,435.33 109.11%
COMMTY RB OF DAPITAN CITY INC  423,834,317.50 169,533,727.00 161,867,993.76 104.74%
RB OF MIDSAYAP INC   220,163,699.12 88,065,479.65 102,966,058.13 85.53%
RB OF GENERAL TRIAS INC  261,603,795.02 104,641,518.01 139,393,957.69 75.07%
RB OF SAN MATEO(ISABELA) INC  256,426,832.43 102,570,732.97 137,514,038.45 74.59%
RB OF CARDONA (RIZAL) INC  263,607,057.40 105,442,822.96 142,508,947.39 73.99%
YUANTA SAVINGS BANK PHILIPPINES INC 1,820,245,950.34 728,098,380.14 992,257,234.14 73.38%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,633,507,798.20 1,053,403,119.28 1,468,433,302.28 71.74%
TANAY RB INC   711,592,793.30 284,637,117.32 413,538,998.72 68.83%
BANK OF CHINA LIMITED-MANILA BRANCH 17,190,443,937.60 6,876,177,575.04 10,050,902,348.08 68.41%
PLANBANK "RB OF CANLUBANG PLANTERS INC"  261,072,015.73 104,428,806.29 154,425,067.15 67.62%
RB OF PILAR (BATAAN) INC  259,270,339.01 103,708,135.60 154,060,715.31 67.32%
RANG-AY BANK INC (A RURAL BANK)  891,533,375.17 356,613,350.07 538,461,371.90 66.23%
VALIANT BANK INC (A RURAL BANK)  388,771,681.35 155,508,672.54 235,494,542.72 66.03%
AMA RURAL BANK OF MANDALUYONG INC  1,355,753,000.00 542,301,200.00 891,921,691.67 60.80%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 4,992,186,956.43 8,381,446,388.01 59.56%
RB OF SAN LUIS (PAMPANGA) INC  166,312,754.71 66,525,101.88 115,428,386.16 57.63%
RB OF MARIA AURORA (AURORA) INC  329,928,490.23 131,971,396.09 238,887,658.99 55.24%
RB OF BAMBANG (NUEVA VIZCAYA) INC  191,102,472.70 76,440,989.08 138,569,500.13 55.16%
RCBC SAVINGS BANK INC 19,595,015,284.38 7,838,006,113.75 15,268,125,557.71 51.34%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 431,463,894.41 172,585,557.76 368,615,858.88 46.82%
ILOCOS CONSOLIDATED COOPERATIVE BANK  281,586,877.24 112,634,750.90 277,471,591.70 40.59%
GATEWAY RURAL BANK INC  114,742,453.88 45,896,981.55 121,478,790.50 37.78%
GUAGUA RURAL BANK INC  1,071,735,536.80 428,694,214.72 1,146,712,356.53 37.38%
RB OF BAYOMBONG INC   171,444,064.32 68,577,625.73 184,378,189.97 37.19%
BOF INC (A RURAL BANK)  588,959,606.28 235,583,842.51 644,838,657.19 36.53%
EQUICOM SAVINGS BANK INC 878,429,475.19 351,371,790.08 990,367,470.10 35.48%
BATAAN DEVELOPMENT BANK 102,400,000.00 40,960,000.00 116,600,014.14 35.13%
UCPB SAVINGS BANK 2,911,217,229.07 1,164,486,891.63 3,408,915,226.74 34.16%
RB OF MAGDALENA (LAGUNA) INC  106,568,951.33 42,627,580.53 128,192,643.52 33.25%
RBG IMPERIAL BANK INC(A RURAL BANK)  75,173,167.73 30,069,267.09 92,643,136.85 32.46%
COMMON WEALTH RURAL BANK INC  104,729,465.19 41,891,786.08 133,731,740.14 31.33%
RB OF MIAGAO (ILOILO) INC  84,744,984.92 33,897,993.97 108,272,092.04 31.31%
BANGKO MABUHAY (A RURAL BANK) INC  268,170,723.71 107,268,289.48 343,335,053.72 31.24%
SUGBUANON RB INC   86,037,427.60 34,414,971.04 113,239,621.31 30.39%
ASIA UNITED BANK CORPORATION 23,221,270,110.76 9,288,508,044.30 31,115,740,576.17 29.85%
GM BANK OF LUZON INC (A RURAL BANK)  364,441,470.08 145,776,588.03 505,251,055.09 28.85%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)  303,768,304.08 121,507,321.63 421,692,152.80 28.81%
PHIL BANK OF COMMUNICATIONS 9,182,681,270.78 3,673,072,508.31 12,773,089,763.85 28.76%
PHIL STAR DEVELOPMENT BANK INC 75,742,055.47 30,296,822.19 109,439,031.42 27.68%
CHINA BANK SAVINGS INC 8,068,068,347.71 3,227,227,339.08 11,700,972,862.23 27.58%
PBCOM RURAL BANK INC  631,246,328.71 252,498,531.48 929,617,827.55 27.16%
LEGAZPI SAVINGS BANK INC 543,831,000.00 217,532,400.00 821,646,648.86 26.48%
RB OF SAN PASCUAL(OBANDO BULACAN)INC  49,753,382.79 19,901,353.12 78,286,430.96 25.42%
NEW RB OF SAN LEONARDO(N.E.) INC  161,153,044.79 64,461,217.92 256,621,413.00 25.12%


A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of twelve banks and severely affect (reduce by 25% or more) the Total Capital Cushion of fifty-four more banks:

 
Philippine Banking System
Impact of 50% Classified Loan Loss Severities on Total Capital Cushion
March 31, 2019











Classified Loans 50% Classified Loan Loss Severity Total Capital Cushion Impact of 50% Loss on Total Capital Cushion
Bank (In Php) (In Php) (In Php) (In %)
SAVIOUR RURAL BANK INC  508,362,134.12 254,181,067.06 101,990,261.31 249.22%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC  836,410,095.47 418,205,047.74 188,221,991.32 222.19%
RB OF JAEN INC   245,748,458.38 122,874,229.19 59,232,407.94 207.44%
MOUNT MAKILING RURAL BANK INC  950,903,559.85 475,451,779.93 278,855,031.66 170.50%
INTER-ASIA DEVELOPMENT BANK 310,975,394.74 155,487,697.37 91,796,389.86 169.38%
COOP BANK OF CAGAYAN   349,123,099.49 174,561,549.75 105,322,538.61 165.74%
VILLAGE BANK INC (A RURAL BANK)  349,950,000.00 174,975,000.00 106,430,495.60 164.40%
RB OF BROOKE'S POINT (PALAWAN) INC  326,810,200.33 163,405,100.17 101,629,964.67 160.78%
BENGUET CENTER BANK INC A RB  203,887,898.01 101,943,949.01 64,294,387.22 158.56%
RB OF DULAG (LEYTE) INC  325,743,738.09 162,871,869.05 119,420,435.33 136.39%
COMMTY RB OF DAPITAN CITY INC  423,834,317.50 211,917,158.75 161,867,993.76 130.92%
RB OF MIDSAYAP INC   220,163,699.12 110,081,849.56 102,966,058.13 106.91%
RB OF GENERAL TRIAS INC  261,603,795.02 130,801,897.51 139,393,957.69 93.84%
RB OF SAN MATEO(ISABELA) INC  256,426,832.43 128,213,416.22 137,514,038.45 93.24%
RB OF CARDONA (RIZAL) INC  263,607,057.40 131,803,528.70 142,508,947.39 92.49%
YUANTA SAVINGS BANK PHILIPPINES INC 1,820,245,950.34 910,122,975.17 992,257,234.14 91.72%
MALAYAN BANK SAVINGS AND MORT BANK INC 2,633,507,798.20 1,316,753,899.10 1,468,433,302.28 89.67%
TANAY RB INC   711,592,793.30 355,796,396.65 413,538,998.72 86.04%
BANK OF CHINA LIMITED-MANILA BRANCH 17,190,443,937.60 8,595,221,968.80 10,050,902,348.08 85.52%
PLANBANK "RB OF CANLUBANG PLANTERS INC"  261,072,015.73 130,536,007.87 154,425,067.15 84.53%
RB OF PILAR (BATAAN) INC  259,270,339.01 129,635,169.51 154,060,715.31 84.15%
RANG-AY BANK INC (A RURAL BANK)  891,533,375.17 445,766,687.59 538,461,371.90 82.79%
VALIANT BANK INC (A RURAL BANK)  388,771,681.35 194,385,840.68 235,494,542.72 82.54%
AMA RURAL BANK OF MANDALUYONG INC  1,355,753,000.00 677,876,500.00 891,921,691.67 76.00%
UNITED COCONUT PLANTERS BANK 12,480,467,391.08 6,240,233,695.54 8,381,446,388.01 74.45%
RB OF SAN LUIS (PAMPANGA) INC  166,312,754.71 83,156,377.36 115,428,386.16 72.04%
RB OF MARIA AURORA (AURORA) INC  329,928,490.23 164,964,245.12 238,887,658.99 69.06%
RB OF BAMBANG (NUEVA VIZCAYA) INC  191,102,472.70 95,551,236.35 138,569,500.13 68.96%
RCBC SAVINGS BANK INC 19,595,015,284.38 9,797,507,642.19 15,268,125,557.71 64.17%
COUNTRY BUILDERS BANK INC (A RURAL BANK) 431,463,894.41 215,731,947.21 368,615,858.88 58.52%
ILOCOS CONSOLIDATED COOPERATIVE BANK  281,586,877.24 140,793,438.62 277,471,591.70 50.74%
GATEWAY RURAL BANK INC  114,742,453.88 57,371,226.94 121,478,790.50 47.23%
GUAGUA RURAL BANK INC  1,071,735,536.80 535,867,768.40 1,146,712,356.53 46.73%
RB OF BAYOMBONG INC   171,444,064.32 85,722,032.16 184,378,189.97 46.49%
BOF INC (A RURAL BANK)  588,959,606.28 294,479,803.14 644,838,657.19 45.67%
EQUICOM SAVINGS BANK INC 878,429,475.19 439,214,737.60 990,367,470.10 44.35%
BATAAN DEVELOPMENT BANK 102,400,000.00 51,200,000.00 116,600,014.14 43.91%
UCPB SAVINGS BANK 2,911,217,229.07 1,455,608,614.54 3,408,915,226.74 42.70%
RB OF MAGDALENA (LAGUNA) INC  106,568,951.33 53,284,475.67 128,192,643.52 41.57%
RBG IMPERIAL BANK INC(A RURAL BANK)  75,173,167.73 37,586,583.87 92,643,136.85 40.57%
COMMON WEALTH RURAL BANK INC  104,729,465.19 52,364,732.60 133,731,740.14 39.16%
RB OF MIAGAO (ILOILO) INC  84,744,984.92 42,372,492.46 108,272,092.04 39.14%
BANGKO MABUHAY (A RURAL BANK) INC  268,170,723.71 134,085,361.86 343,335,053.72 39.05%
SUGBUANON RB INC   86,037,427.60 43,018,713.80 113,239,621.31 37.99%
ASIA UNITED BANK CORPORATION 23,221,270,110.76 11,610,635,055.38 31,115,740,576.17 37.31%
GM BANK OF LUZON INC (A RURAL BANK)  364,441,470.08 182,220,735.04 505,251,055.09 36.07%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)  303,768,304.08 151,884,152.04 421,692,152.80 36.02%
PHIL BANK OF COMMUNICATIONS 9,182,681,270.78 4,591,340,635.39 12,773,089,763.85 35.95%
PHIL STAR DEVELOPMENT BANK INC 75,742,055.47 37,871,027.74 109,439,031.42 34.60%
CHINA BANK SAVINGS INC 8,068,068,347.71 4,034,034,173.86 11,700,972,862.23 34.48%
PBCOM RURAL BANK INC  631,246,328.71 315,623,164.36 929,617,827.55 33.95%
LEGAZPI SAVINGS BANK INC 543,831,000.00 271,915,500.00 821,646,648.86 33.09%
RB OF SAN PASCUAL(OBANDO BULACAN)INC  49,753,382.79 24,876,691.40 78,286,430.96 31.78%
NEW RB OF SAN LEONARDO(N.E.) INC  161,153,044.79 80,576,522.40 256,621,413.00 31.40%
LUZON DEVELOPMENT BANK 416,056,368.54 208,028,184.27 724,473,558.19 28.71%
PHIL SAVINGS BANK 20,174,036,169.24 10,087,018,084.62 35,606,728,557.31 28.33%
HIGHLAND RURAL BANK INC  91,730,620.40 45,865,310.20 162,014,267.73 28.31%
RB OF ITOGON (BENGUET) INC  73,738,915.17 36,869,457.59 130,782,659.77 28.19%
PRODUCERS SAVINGS BANK CORPORATION 1,238,704,038.02 619,352,019.01 2,229,352,737.59 27.78%
DUMAGUETE CITY DEV BANK INC 174,110,752.94 87,055,376.47 317,685,816.79 27.40%
RNG COASTAL BANK INC(A RURAL BANK)  92,352,342.55 46,176,171.28 173,136,852.63 26.67%
ENTREPRENEUR RB INC   47,948,549.11 23,974,274.56 91,204,643.94 26.29%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) 317,151,823.01 158,575,911.51 613,109,720.77 25.86%
COOPERATIVE BANK OF BOHOL  55,948,079.34 27,974,039.67 108,855,628.62 25.70%
COOPERATIVE BANK OF NUEVA VIZCAYA  55,169,411.25 27,584,705.63 108,390,035.23 25.45%
MALARAYAT RB INC   101,784,457.88 50,892,228.94 200,420,963.79 25.39%



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, 2019. Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of March 31, 2019"
 
As such, any reduction in their capital cushion could knock down an already weak bank.


Source: www.bsp.gov.ph

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