Are Philippine Banks Under Provisioning Loan Losses? - As of December 31, 2019

Are Philippine banks under provisioning loan losses?    

On the face of it, no.    

At 1.57% as of December 31, 2019, NPLs as a percentage of Total Loan Portfolios are at historic lows.

Although the NPL Coverage Ratio is near historic highs at 108.94% as of December 31, 2019, it has dropped considerably from its peak of 149.53% as of December 31, 2017.

However, NPLs can go much higher than current levels.  Over the past thirty-seven years, NPLs as a percentage of Total Loan Portfolios averaged 7.79% for Philippine Universal and Commercial Banks. Moreover, Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP) have averaged 4.43% for the past thirty-seven years.  As can be seen from the chart below, loan loss reserves hit a peak of 22.23% of TLP in 1986, an outlier.  Without this outlier, LLR/TLP average is 3.94% for the past thirty-seven years.

As of December 31, 2019, LLR/TLP stands at 1.71%, which is below the historical average of 4.43%, indicating that Philippine banks are under-provisioning for loan losses, given historical norms. If Philippine banks were to maintain higher loan loss provisions to conform to historical averages, bank earnings will suffer but will be better provisioned for future losses.

Now, which banks have not adequately provisioned for loan losses at their current NPL levels, which are at historic lows? Those highlighted in yellow (below 80% NPL Coverage Ratio) are prime candidates.


 

Philippine Banking System
NPL Coverage Ratio
December 31, 2019
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	17,245,998.24	2,355,538,693.87	0.73%
PRODUCERS SAVINGS BANK CORPORATION	166,908,744.26	719,485,741.97	23.20%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	15,250,478.68	65,714,761.91	23.21%
EAST WEST RURAL BANK INC	244,752,957.58	909,428,254.82	26.91%
UCPB SAVINGS BANK	903,791,828.45	3,302,674,267.04	27.37%
WEALTH DEVELOPMENT BANK CORPORATION	162,085,067.38	586,730,036.34	27.63%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	24,380,210.21	28.50%
CITYSTATE SAVINGS BANK INC	65,458,187.19	216,186,557.98	30.28%
PNB SAVINGS BANK	2,301,604,524.43	7,321,988,701.00	31.43%
NEW RB OF SAN LEONARDO (N.E.) INC	34,283,331.02	108,095,277.16	31.72%
COMMON WEALTH RURAL BANK INC	21,476,123.43	67,086,963.80	32.01%
RANG-AY BANK INC (A RURAL BANK)	51,829,011.54	157,787,012.48	32.85%
FIRST IMPERIAL BUSINESS BANK INC (A RURAL BANK)	40,835,264.37	115,602,605.64	35.32%
LUZON DEVELOPMENT BANK	267,591,960.21	746,844,275.39	35.83%
PAMPANGA DEVELOPMENT BANK	34,729,813.69	96,834,846.23	35.86%
SAVIOUR RURAL BANK INC	20,738,792.82	57,006,376.70	36.38%
BENGUET CENTER BANK INC A RB	16,801,471.92	43,044,985.40	39.03%
BANCO MEXICO INC (A RURAL BANK)	21,637,499.44	54,512,588.40	39.69%
CITY SAVINGS BANK INC	1,357,307,432.62	3,394,514,547.38	39.99%
MVSM BANK (A RURAL BANK SINCE 1953) INC	19,690,927.20	48,750,140.03	40.39%
RB OF ALABEL (SARANGANI) INC	12,872,389.00	31,610,982.73	40.72%
GOLDEN RURAL BANK OF THE PHILIPPINES INC	10,795,648.08	26,392,300.60	40.90%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE RURAL BANK)	12,536,203.42	30,338,616.29	41.32%
DUMAGUETE CITY DEV BANK INC	34,299,237.59	79,645,482.10	43.06%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	763,169,857.41	1,757,654,167.58	43.42%
CENTURY SAVINGS BANK CORPORATION	19,537,665.62	44,522,327.52	43.88%
GM BANK OF LUZON INC (A RURAL BANK)	135,990,963.96	305,844,585.52	44.46%
SUGBUANON RB INC	15,479,914.53	34,647,557.19	44.68%
1ST VALLEY BANK INC A DEVELOPMENT BANK	194,522,173.84	432,490,305.99	44.98%
EQUICOM SAVINGS BANK INC	386,821,343.20	841,347,240.59	45.98%
UNITED COCONUT PLANTERS BANK	3,040,737,381.97	6,591,060,401.07	46.13%
ENTERPRISE BANK INC (A THRIFT BANK)	189,912,010.92	398,812,178.61	47.62%
RIZAL MICROBANK INC - A THRIFT BANK OF RCBC	72,764,373.51	151,440,036.38	48.05%
RB OF MIAGAO (ILOILO) INC	21,547,211.02	44,495,788.62	48.43%
RB OF BAY INC	9,205,914.10	19,001,706.26	48.45%
PANGASINAN BANK (A RB) INC	16,800,869.61	33,946,235.36	49.49%
ENTREPRENEUR RB INC	28,293,797.96	56,894,414.64	49.73%
RB OF ATIMONAN INC	8,411,960.98	16,821,490.61	50.01%
BPI FAMILY SAVINGS BANK INC	5,640,351,830.54	11,086,614,750.68	50.88%
PACIFIC ACE SAVINGS BANK INC	10,943,659.81	21,499,031.00	50.90%
PHIL SAVINGS BANK	3,012,941,440.47	5,917,095,293.39	50.92%
MALAYAN BANK SAVINGS AND MORT BANK INC	144,206,463.72	278,675,665.72	51.75%
CHINA BANK SAVINGS INC	2,097,080,197.07	4,008,176,696.16	52.32%
METRO SOUTH COOP BANK	202,860,938.56	386,266,623.15	52.52%
HIYAS BANKING CORPORATION	18,862,790.69	35,613,405.72	52.97%
RB OF CAUAYAN INC	25,803,992.55	48,693,306.27	52.99%
FILIDIAN RURAL BANK OF ANTIPOLO INC	9,543,278.24	17,992,414.09	53.04%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	300,719,837.78	565,711,268.10	53.16%
RB OF PORAC (PAMPANGA) INC	58,105,422.36	108,773,666.73	53.42%
BALANGA RURAL BANK, INC.	13,192,806.85	24,667,422.51	53.48%
RB OF SAN PASCUAL(OBANDO BULACAN)INC	23,281,011.54	43,226,349.96	53.86%
ALLBANK (A THRIFT BANK) INC	55,724,257.00	103,144,118.89	54.03%
RB OF DUMANGAS INC	18,413,824.42	33,555,895.40	54.88%
MANOR BANK - A RURAL BANK CORP	7,471,340.91	13,597,491.03	54.95%
RB OF MANGALDAN INC(BANGKO RURAL NG MANGALDAN INK)	16,655,661.87	30,194,002.10	55.16%
MARAYO BANK INC (A RURAL BANK)	158,517,368.65	286,255,626.26	55.38%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	37,104,262.31	65,994,386.61	56.22%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,493,658.58	2,635,346.02	56.68%
RB OF PILAR (BATAAN) INC	23,116,721.70	40,439,389.35	57.16%
RB OF BAGABAG (N.V.)INC	48,888,497.33	85,034,628.05	57.49%
FIRST AGRO-INDUSTRIAL RB INC(FAIRBANK)	29,568,123.96	51,296,809.35	57.64%
CAMALIG BANK INC (A RURAL BANK)	27,929,665.40	48,305,356.90	57.82%
LIFEBANK- A RURAL BANK	21,777,060.75	37,399,660.08	58.23%
BATAAN DEVELOPMENT BANK	24,006,569.11	40,815,077.86	58.82%
MALLIG PLAINS RURAL BANK (ISABELA) INC	15,684,039.32	26,012,403.77	60.29%
RB OF SAN JOSE (CAMARINES SUR) INC	8,675,441.70	14,311,383.12	60.62%
RB OF GENERAL TRIAS INC	20,125,741.96	33,140,638.93	60.73%
GUAGUA RURAL BANK INC	194,863,748.67	318,640,709.88	61.15%
BANGKO MABUHAY (A RURAL BANK) INC	51,682,535.34	84,312,979.95	61.30%
RB OF CARDONA (RIZAL) INC	61,374,496.43	99,257,277.50	61.83%
CEBUANA LHUILLIER RB INC	14,616,509.93	23,523,795.10	62.13%
LIPA BANK INC (A RB)	16,735,496.61	26,860,743.79	62.30%
RIZAL COMM'L BANKING CORP	10,027,847,028.83	16,084,842,961.27	62.34%
CARD BANK INC (A MF RB)	199,162,976.02	318,786,658.16	62.48%
EAST WEST BANKING CORP	6,527,250,476.00	10,421,624,682.99	62.63%
SUMMIT BANK (RB OF TUBLAY INC)	118,994,559.11	185,752,914.57	64.06%
UNION BANK OF THE PHILS	5,444,336,488.78	8,494,851,848.08	64.09%
BANK OF MAKATI (A SAVINGS BANK) INC	1,776,607,489.66	2,771,217,072.88	64.11%
FIRST CONSOLIDATED BANK INC (A PDB)	605,714,806.91	913,008,109.63	66.34%
SECURED BANK INC (A RB)	20,729,485.55	31,235,044.26	66.37%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	37,772,356.14	56,626,667.61	66.70%
RB OF MIDSAYAP INC	10,975,443.18	16,342,181.50	67.16%
BHF RURAL BANK INC	37,552,531.10	54,516,033.22	68.88%
RB OF SOLANO (NUEVA VIZCAYA) INC	27,100,572.39	39,148,789.02	69.22%
ASIA UNITED BANK CORPORATION	1,683,841,374.29	2,425,066,609.45	69.43%
BANGKO MONTANOSA INC (A RURAL BANK)	10,386,119.96	14,735,311.24	70.48%
RB OF MARIA AURORA (AURORA) INC	36,710,056.15	52,062,161.02	70.51%
COOP BANK OF CAGAYAN	56,612,064.15	80,259,471.43	70.54%
CONSOLIDATED COOPERATIVE BANK	156,831,621.75	220,297,895.04	71.19%
RB OF ANTIPOLO INC	13,560,592.13	18,685,383.19	72.57%
FIRST ISABELA COOP BANK (FICOBANK)	102,669,069.77	140,266,581.98	73.20%
COOPERATIVE BANK OF NUEVA VIZCAYA	27,183,841.50	36,737,597.19	73.99%
GATEWAY RURAL BANK INC	28,178,813.44	37,821,918.11	74.50%
COOP BANK OF QUEZON PROVINCE	30,008,786.90	40,179,533.53	74.69%
RB OF POLA (ORIENTAL MINDORO) INC	37,909,171.12	50,484,335.03	75.09%
RB OF STA ROSA DE LIMA (PANIQUI TARLAC) INC	16,585,208.22	22,033,519.20	75.27%
LIBERTY BANK (A RURAL BANK) INC	28,446,467.55	37,583,427.01	75.69%
AGRIBUSINESS RURAL BANK INC	484,510,294.95	639,106,867.04	75.81%
RB OF ITOGON (BENGUET) INC	24,631,936.27	32,431,819.59	75.95%
LIFE SAVINGS BANK INC	5,424,695.67	7,058,663.73	76.85%
PHILIPPINE VETERANS BANK	2,408,669,984.80	3,131,047,449.17	76.93%
MALARAYAT RB INC	30,263,795.25	38,697,851.89	78.21%
QUEZON CAPITAL RB INC	45,147,096.62	57,609,636.27	78.37%
ROBINSONS BANK CORPORATION	860,127,953.91	1,090,740,372.46	78.86%
MACTAN RURAL BANK (LAPU-LAPU CITY) INC	39,460,576.76	50,025,370.92	78.88%
CARD MRI RIZAL BANK INC A MICROFINANCE-ORIENTED RURAL BANK	87,311,153.05	110,664,268.84	78.90%
COOPERATIVE BANK OF BOHOL	42,992,221.84	53,937,461.18	79.71%
NATIONAL TEACHERS & EMP. COOP BANK	22,488,938.78	28,069,809.54	80.12%
STANDARD CHARTERED BANK	2,059,627,485.47	2,563,892,168.52	80.33%
IMUS RURAL BANK INC	9,908,742.28	12,318,364.00	80.44%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,609,326,555.97	1,991,757,262.07	80.80%
PHIL STAR DEVELOPMENT BANK INC	9,509,297.34	11,760,293.28	80.86%
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	8,989,483.06	11,087,340.84	81.08%
MAKILING DEVELOPMENT BANK CORPORATION	26,029,637.71	31,933,646.69	81.51%
ALIAGA FARMERS RURAL BANK INC	94,405,134.59	113,988,275.57	82.82%
CANTILAN BANK INC (A RURAL BANK)	251,261,201.33	301,260,224.80	83.40%
CORDILLERA SAVINGS BANK INC	14,379,069.48	17,204,897.25	83.58%
VILLAGE BANK INC (A RURAL BANK)	37,762,487.79	45,058,110.09	83.81%
RB OF BAYOMBONG INC	12,508,125.30	14,836,231.24	84.31%
COOP BANK OF PALAWAN	105,894,584.92	124,812,926.87	84.84%
DUNGGANON BANK (A MICROFINANCE RURAL BANK) INC	35,940,820.44	42,327,195.63	84.91%
ASPAC RURAL BANK INC	90,745,163.86	106,051,737.19	85.57%
DEVELOPMENT BANK OF THE PHIL	8,436,561,625.77	9,817,857,162.03	85.93%
RNG COASTAL BANK INC(A RURAL BANK)	17,629,252.45	20,498,993.79	86.00%
RB OF GATTARAN (CAGAYAN) INC	22,092,283.25	25,554,561.92	86.45%
LAND BANK OF THE PHILIPPINES	16,280,969,219.14	18,766,221,399.90	86.76%
MINDANAO CONSOLIDATED COOPERATIVE BANK	138,113,906.91	158,010,954.15	87.41%
LEGAZPI SAVINGS BANK INC	266,215,120.75	302,850,134.83	87.90%
RB OF MABALACAT INC	37,263,511.94	42,227,556.10	88.24%
RB OF PILAR (SORSOGON) INC	18,246,474.10	20,632,238.32	88.44%
PHIL BANK OF COMMUNICATIONS	2,058,668,405.38	2,324,859,588.57	88.55%
RB OF SAN NARCISO INC	17,950,307.19	20,018,035.04	89.67%
RB OF MAGDALENA (LAGUNA) INC	25,828,176.82	28,711,307.11	89.96%
BPI DIRECT BANKO INC A SAVINGS BANK	926,938,152.26	1,017,185,087.97	91.13%
PROGRESSIVE BANK INC (PROGRESSIVE A RURAL BANK INC)	104,958,288.60	114,058,413.39	92.02%
NORTHPOINT DEV'T BANK INC	105,066,906.56	113,199,742.53	92.82%
BANK ONE SAVINGS CORPORATION	43,836,572.86	45,492,961.00	96.36%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	56,051,192.21	57,617,003.16	97.28%
RB OF POZORRUBIO INC	16,920,864.04	17,168,894.87	98.56%
RB OF SAN MATEO(ISABELA) INC	28,498,014.97	28,871,014.98	98.71%
BOF INC (A RURAL BANK)	85,131,791.57	85,683,458.63	99.36%
RB OF SAN AGUSTIN (ISABELA) INC	22,911,301.36	22,907,205.43	100.02%
RB OF BAMBANG (NUEVA VIZCAYA) INC	48,308,715.43	48,250,020.60	100.12%
PBCOM RURAL BANK INC	438,714,503.45	436,056,314.25	100.61%
RB OF LEBAK (SULTAN KUDARAT) INC	34,150,987.38	33,863,421.87	100.85%
MAYBANK PHILIPPINES INCORPORATED	1,967,519,004.85	1,948,101,289.83	101.00%
COMMTY RB OF CATMON (CEBU) INC	37,923,789.82	37,467,315.10	101.22%
RB OF MARAGONDON INC	29,599,525.10	29,024,949.67	101.98%
ZAMBALES RURAL BANK INC	37,099,659.31	36,371,170.17	102.00%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	79,848,215.26	77,749,161.67	102.70%
RB OF PARACALE(CAMARINES NORTE) INC	31,669,038.40	30,771,684.97	102.92%
CARD SME BANK INC A THRIFT BANK	199,069,591.87	193,310,670.18	102.98%
RB OF GUINOBATAN INC	26,473,258.57	25,600,037.26	103.41%
HIGHLAND RURAL BANK INC	22,658,133.75	21,637,324.57	104.72%
BDO NETWORK BANK INC	1,994,879,251.02	1,904,701,598.38	104.73%
CTBC BANK (PHILIPPINES) CORP	946,679,881.98	891,103,833.66	106.24%
INTER-ASIA DEVELOPMENT BANK	13,461,485.83	12,399,228.35	108.57%
SUN SAVINGS BANK INC	26,430,425.73	24,257,946.48	108.96%
RB OF DULAG (LEYTE) INC	13,215,360.44	12,113,861.01	109.09%
FARMERS SAVINGS & LOAN BANK INC	37,520,936.58	33,992,131.90	110.38%
KATIPUNAN BANK INC "A RURAL BANK"	67,671,466.04	60,577,559.35	111.71%
BANCO LAGUNA INC (A RURAL BANK SINCE 1965)	23,753,068.05	21,171,963.05	112.19%
ILOCOS CONSOLIDATED COOPERATIVE BANK	84,552,576.05	72,993,785.35	115.84%
UNIVERSITY SAVINGS BANK INC	38,294,965.05	32,484,974.11	117.89%
BAYBANK INC (A RURAL BANK)	16,689,919.02	14,042,451.57	118.85%
PHIL NATIONAL BANK	14,299,057,453.65	12,024,161,161.83	118.92%
RURAL BANK OF PLACER (SURIGAO DEL NORTE) INC	36,562,294.79	30,107,873.47	121.44%
BDO UNIBANK INC	27,120,673,038.09	22,275,508,157.58	121.75%
INNOVATIVE BANK INC (A RURAL BANK)	4,905,914.14	3,926,256.10	124.95%
SECURITY BANK CORP	7,010,813,784.35	5,339,051,072.11	131.31%
FIRST TAGUM RURAL BANK INC	33,383,045.94	25,350,683.65	131.68%
RB OF DIGOS INC	25,832,924.21	18,730,980.30	137.92%
COOP BANK OF COTABATO	140,401,281.42	100,378,808.77	139.87%
RB OF ANGELES INC	215,857,231.80	153,922,593.93	140.24%
BANK OF COMMERCE	2,290,369,459.59	1,610,090,190.46	142.25%
CHINA BANKING CORP	7,101,856,436.47	4,895,476,457.66	145.07%
COMMTY RB OF DAPITAN CITY INC	47,902,321.50	32,876,948.03	145.70%
RB OF TANGUB CITY (MIS OCC) INC	37,805,873.88	25,940,873.34	145.74%
RURAL BANK OF SAN ANTONIO INC	51,221,501.93	35,030,572.30	146.22%
RB OF ROSARIO (LA UNION) INC	6,448,952.39	4,396,974.36	146.67%
GUAGUA SAVERS BANK(A RB) INC	10,460,371.42	7,090,917.26	147.52%
BANK OF THE PHIL ISLANDS	18,486,248,401.08	12,222,967,100.21	151.24%
RB OF GLORIA (OR MIN) INC	2,783,082.52	1,826,155.87	152.40%
RB OF RIZAL (ZAMBOANGA DEL NORTE) INC	27,286,111.17	17,438,038.01	156.47%
RB OF JAEN INC	9,703,484.27	6,118,950.48	158.58%
BANGKO CARRASCAL INC (A RB)	9,711,821.23	5,925,063.83	163.91%
CENTURY RURAL BANK INC	15,673,724.93	9,081,453.60	172.59%
RB OF MONTALBAN INC	5,160,255.06	2,820,481.79	182.96%
LEMERY SAVINGS & LOAN BANK, INC.	2,851,181.82	1,556,042.27	183.23%
RBT BANK INC A RURAL BANK	15,137,537.60	8,232,301.26	183.88%
METROPOLITAN BANK & TCO	20,309,195,360.55	10,209,359,590.22	198.93%
BANKWAYS INC (A RURAL BANK)	91,835,788.90	44,221,509.84	207.67%
HSBC SAVINGS BANK(PHILS) INC	58,371,389.62	25,845,198.06	225.85%
CITIBANK, N.A.	3,824,697,930.00	1,691,942,783.28	226.05%
RB OF BARILI (CEBU) INC	45,095,937.39	19,327,940.61	233.32%
RB OF SAN LUIS (PAMPANGA) INC	12,049,937.14	5,038,386.92	239.16%
LAGUNA PRESTIGE BANKING CORPORATION (A RURAL BANK)	13,556,709.28	5,513,252.06	245.89%
HONGKONG & SHANGHAI BANKING CORP	1,640,620,583.76	536,739,725.05	305.66%
MEGA INT'L COMM'L BANK CO LTD	266,451,745.04	86,341,389.09	308.60%
RB OF STA IGNACIA INC	7,872,592.17	2,311,315.46	340.61%
CIMB BANK PHILIPPINES INC	28,851,318.28	7,938,367.97	363.44%
KEB HANA BANK - MANILA BRANCH	91,581,362.01	23,050,203.54	397.31%
PHIL TRUST COMPANY	4,002,635,483.72	953,976,271.38	419.57%
BANGKOK BANK PUBLIC CO LTD	574,571,166.00	99,258,541.72	578.86%
YUANTA SAVINGS BANK PHILIPPINES INC	9,722,660.95	1,628,987.86	596.85%
RB OF BROOKE'S POINT (PALAWAN) INC	2,835,553.33	411,100.00	689.75%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	18,602,512.13	300,802.82	6184.29%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	7,298,377.08	107,342.00	6799.18%
CAVITE UNITED RURAL BANK CORP	47,469,263.20	374,959.19	12659.85%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	28,545,273.92	0.00	NA
BANK OF AMERICA N.A.	12,769,434.77	0.00	NA
BANK OF CHINA LIMITED-MANILA BRANCH	241,672,851.91	0.00	NA
BDO PRIVATE BANK, INC.	5,573,162.68	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	29,095,250.00	0.00	NA
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	13,506,523.20	0.00	NA
DEUTSCHE BANK AG	188,535,738.52	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	13,856,292.42	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	13,708,217.10	0.00	NA
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED - MANILA BRA	27,507,763.85	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	47,224,654.73	0.00	NA
ING BANK N.V.	15,173,594.23	0.00	NA
ISLA BANK(A THRIFT BANK) INC	4,290,580.33	0.00	NA
JP MORGAN CHASE BANK NATIONAL ASSN.	31,000,000.00	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	559,972,006.72	0.00	NA
MUFG BANK, LTD.	387,850,811.58	0.00	NA
SHINHAN BANK - MANILA BRANCH	45,384,842.02	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	31,517,155.09	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	27,047,328.67	0.00	NA
Grand Total	203,348,959,271.25	220,088,113,408.72	92.39%

 Source: www.bsp.gov.ph

 

The Top Distressed Philippine Banks as of December 31, 2019

Editor's Note: The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have not done a good job recently.  In the past ten years, two commercial banks, twenty-one thrift banks, and a staggering 187 rural banks have collapsed, often quite suddenly and without warning:  Regulators do have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.

Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency because a significant drop in the value of  the Distressed Assets will eat into a significant amount of the bank's capital.  A bank that has a Distressed Ratio greater than 100% is flagged as borderline insolvent.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks

This is a list of the top distressed Universal and Commercial (U/KB) as well as Thrift Banks in the Philippines as of December 31, 2019.  It updates a previous blog post: "The Top Distressed Philippine Banks as of September 30, 2019".

To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Improve Slightly in the 4th Quarter of 2019 "

 

The Top Distressed Philippine Banks
Total Distressed Assets/ Total Capital Cushion
December 31, 2019
In Php
	December 31, 2019
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	3,599,452,808.79	343,423,948.21	1048.11%
INTER-ASIA DEVELOPMENT BANK	580,343,583.64	93,100,536.21	623.35%
SAVIOUR RURAL BANK INC	538,855,832.15	105,124,911.77	512.59%
RB OF JAEN INC	293,516,037.18	70,952,262.57	413.68%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	835,033,299.61	211,380,771.73	395.04%
COOP BANK OF CAGAYAN	406,252,705.05	106,341,584.91	382.03%
RB OF BROOKE'S POINT (PALAWAN) INC	373,719,005.70	108,189,285.57	345.43%
BENGUET CENTER BANK INC A RB	231,439,784.76	75,941,779.86	304.76%
COMMTY RB OF DAPITAN CITY INC	465,739,134.83	155,710,142.84	299.11%
MAKILING DEVELOPMENT BANK CORPORATION	1,025,524,047.05	347,869,022.01	294.80%
UNITED COCONUT PLANTERS BANK	18,630,518,983.02	6,468,475,009.42	288.02%
RB OF DULAG (LEYTE) INC	338,944,902.96	119,405,668.67	283.86%
MALAYAN BANK SAVINGS AND MORT BANK INC	3,780,351,786.00	1,426,617,486.87	264.99%
RB OF PILAR (BATAAN) INC	262,386,548.51	99,122,048.81	264.71%
VILLAGE BANK INC (A RURAL BANK)	276,539,442.46	107,323,745.81	257.67%
RB OF CARDONA (RIZAL) INC	334,446,900.28	134,970,533.17	247.79%
YUANTA SAVINGS BANK PHILIPPINES INC	2,706,054,176.42	1,102,416,875.42	245.47%
BANK OF CHINA LIMITED-MANILA BRANCH	24,212,701,651.08	10,101,254,880.26	239.70%
RB OF MIDSAYAP INC	239,302,699.64	111,662,598.14	214.31%
RANG-AY BANK INC (A RURAL BANK)	951,678,434.64	534,762,711.74	177.96%
BANGKO CARRASCAL INC (A RB)	178,335,230.18	103,004,762.17	173.13%
RB OF SAN MATEO(ISABELA) INC	268,889,986.64	155,374,983.45	173.06%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	600,142,043.89	352,714,022.86	170.15%
RB OF GENERAL TRIAS INC	252,002,002.50	150,183,071.71	167.80%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	245,346,138.79	154,423,979.91	158.88%
RB OF SAN LUIS (PAMPANGA) INC	168,807,015.29	110,886,625.96	152.23%
LUZON DEVELOPMENT BANK	1,082,171,322.26	749,358,995.18	144.41%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	575,266,209.26	415,729,594.05	138.38%
COMMON WEALTH RURAL BANK INC	178,471,519.28	133,729,174.88	133.46%
ENTERPRISE BANK INC (A THRIFT BANK)	590,748,040.45	452,809,102.69	130.46%
EQUICOM SAVINGS BANK INC	1,458,076,305.44	1,140,430,762.66	127.85%
BOF INC (A RURAL BANK)	790,898,470.89	644,522,302.93	122.71%
RB OF BAYOMBONG INC	219,684,296.39	179,916,625.79	122.10%
GATEWAY RURAL BANK INC	149,297,572.32	122,636,297.59	121.74%
GM BANK OF LUZON INC (A RURAL BANK)	574,876,106.57	479,747,833.76	119.83%
CHINA BANK SAVINGS INC	13,831,019,944.59	11,764,325,022.53	117.57%
ILOCOS CONSOLIDATED COOPERATIVE BANK	351,882,313.25	308,472,576.39	114.07%
UCPB SAVINGS BANK	4,197,891,846.21	3,726,979,885.87	112.64%
RB OF BAMBANG (NUEVA VIZCAYA) INC	151,253,378.82	138,079,267.69	109.54%
PHIL BANK OF COMMUNICATIONS	13,257,265,912.42	12,588,949,484.09	105.31%
RB OF MARIA AURORA (AURORA) INC	271,295,321.42	259,222,396.22	104.66%
RB OF SAN NARCISO INC	56,119,709.70	54,200,364.80	103.54%
LIPA BANK INC (A RB)	90,761,255.62	88,701,384.66	102.32%
PHILIPPINE VETERANS BANK	5,745,095,303.80	5,630,463,823.05	102.04%
CORDILLERA SAVINGS BANK INC	155,281,848.66	152,504,576.55	101.82%
Grand Total	105,523,680,858.41	61,881,412,721.43	170.53%

Source: www.bsp.gov.ph


Disclaimer:


This list only serves as a screening guide.  It is not a definitive guide and must be taken in the context of other factors.  The figures are based on the individual banks' statement of condition as of September 30, 2019 and December 31, 2019 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.