Is There a Real Estate Bubble in the Philippines?

Editor's Note:  This update reflects the true Real Estate & Construction Loans to GDP ratio published last June 25, 2012.  The previous figures were published in error.

Is there a real estate bubble in the Philippines?  Several people, including Finance Secretary Cesar Purisima and high profile businessman Andrew Masigan have asked this question earlier this year.  Both have come to the conclusion that there is no real estate bubble - yet.

But does the data bear this out?  Based on the data available from the banking system, if we are in a real estate bubble, we are only in the beginnings of one. Given the growth in our country's GDP since 1999, Real Estate Loans, on an absolute basis, have picked up noticeably since 2008, but construction loans have not.

On a relative basis, Real Estate and Construction Loans as a percentage of GDP have dropped considerably since 1999, from a high of 7.56% of GDP in June 1999 to a low of 4.43% of GDP as of March 2007.  Today, that ratio has gone up considerably, and now stands at 6.46% as of September 2011.  So Real Estate and Construction Loans relative to GDP have bottomed out but not have approached near peak levels of 7.56% of GDP.  It is important to note that the availability of banking data available on www.bsp.gov.ph goes back only to March 1999.  The previous peak levels could have been much higher.

Philippine Banking System Real Estate & Construction Loans vs. GDP March 1999 to September 2011 In Peso Billions Quarter/Year Real Estate Loans Construction Loans Real Estate & Construction Loans GDP (Current) March 1999 198 57 255 3,244 June 1999 222 56 278 3,244 September 1999 221 55 275 3,244 December 1999 190 54 243 3,244 March 2000 213 51 264 3,581 June 2000 220 49 269 3,581 September 2000 180 89 269 3,581 December 2000 224 47 271 3,581 March 2001 203 51 255 3,889 June 2001 205 43 248 3,889 September 2001 204 44 249 3,889 December 2001 204 42 246 3,889 March 2002 212 43 255 4,198 June 2002 207 40 247 4,198 September 2002 203 40 242 4,198 December 2002 204 36 239 4,198 March 2003 250 47 297 4,548 June 2003 250 46 296 4,548 September 2003 261 48 309 4,548 December 2003 262 47 310 4,548 March 2004 260 53 312 5,120 June 2004 257 37 294 5,120 September 2004 255 36 291 5,120 December 2004 262 36 297 5,120 March 2005 252 41 293 5,678 June 2005 253 35 289 5,678 September 2005 268 35 304 5,678 December 2005 258 34 293 5,678 March 2006 273 33 306 6,271 June 2006 288 33 321 6,271 September 2006 284 33 318 6,271 December 2006 291 34 325 6,271 March 2007 272 34 305 6,893 June 2007 287 37 324 6,893 September 2007 285 37 321 6,893 December 2007 290 36 326 6,893 March 2008 290 30 320 7,721 June 2008 339 34 373 7,721 September 2008 358 37 396 7,721 December 2008 400 41 441 7,721 March 2009 393 32 426 8,026 June 2009 418 31 449 8,026 September 2009 420 32 452 8,026 December 2009 448 33 481 8,026 March 2010 455 34 488 9,003 June 2010 465 35 500 9,003 September 2010 466 35 502 9,003 December 2010 497 36 534 9,003 March 2011 521 37 558 9,361 June 2011 542 40 581 9,361 September 2011 564 41 605 9,361 Source: www.bsp.gov.ph and www.nscbgov.ph

Among Listed Philippine Banks, PNB Takes the Gold in Insolvency

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:  http://www.gmanetwork.com/news/video/93600/saksi-pagsasara-ng-banco-filipino-at-lbc-devt-bank-ikinadismaya.  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.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks  

Editor's Note: This is an update of an earlier post: "Among Listed Philippine Banks, Philippine Savings Bank Reaches Borderline Insolvency" dated April 9, 2011.

Based on the individual Published Statements of Condition for Listed Philippine Banks, the Total Distressed Assets increased by PhP 4.102 billion or 1.07% from December 31, 2011 to March 31, 2012.  This was offset by an increase of PhP 36.353 billion  or 6.73% in the Total Capital Cushion of these banks during the same period.  As a result, the Listed Banks Ratio of Distressed Assets to Total Capital Cushion decreased by 3.77% from 71.05% as of December 31, 2011 to 67.20% as of March 31, 2012.

Please note that the ratio of Distressed Assets to Total Capital Cushion of one bank on this list is above the borderline level of 100.00%.  This bank, Philippine National Bank (PNB), had a borderline insolvency ratio of 163.35% as of March 31, 2012, up 15.59% from 147.76% as of December 31, 2011.  Although Total Distressed Assets declined by PhP 592.898 million, its Total Capital Cushion declined even more, by PhP 4.338 billion in the first quarter of 2012.  As a result, its ratio of Total Distressed Assets over its Total Capital Cushion increased by 10.55 percentage points to reach 163.35% in the first quarter of 2012 from 147.76% as of December 31, 2011.

It should be noted that PNB's impending merger with Allied Bank should improve the bank's finances and operating margin. (See: "PNB, Allied Expect P1-B Savings from Merger in 2nd Quarter") The merger, which is expected to take place in the second quarter of 2012 has been approved by the stockholders of both banks and is awaiting final approval from the BSP/MB and other regulatory authorities.  (See: "No more legal bar to PNB-Allied merger").

A bank that exhibited a significant increase in its insolvency ratios was:

1. CityState Savings Bank, which increased from a ratio of 22.75% as December 31, 2011 to 34.20% as of March 31, 2012.  This represents an increase of 11.45% or 50.36 percentage points.

 The banks that exhibited significant decreases in their insolvency ratios were:

1. Philippine Savings Bank, which dropped from a borderline insolvent ratio of 105.18% as of December 31, 2011 to 81.15% as of March 31, 2012
2. Security Bank Corporation, which dropped from 47.14% as of December 31, 2011 to 37.80% as of March 31, 2012
3. Bank of the Philippine Islands, which dropped from 63.71% as of December 31, 2011 to 51.34% as of March 31, 2012
4. East West Banking Corporation, which dropped from 68.36% as of December 31, 2011 to 56.41% as of March 31, 2012

The study does not include figures for one bank, namely:

1. Export and Industry Bank, which collapsed on April 26, 2012 and had the highest borderline insolvency ratio among Philippine Commercial Banks of 1476.07% as of September 30, 2011 - its latest available financial statements;  See previous blog posts: "Export and Industry Bank Becomes Even More Insolvent! - September 30, 2011" and "Time is Running Out for Export and Industry Bank"

The Published Statements of Condition as of December 31, 2011 and March 31, 2012 for Export and Industry Bank was unavailable.

Listed Philippine Banks
Total Distressed Assets/Total Capital Cushion
December 31, 2011 to March 31, 2012
	December 31, 2011	March 31, 2012	Variance	% Variance
CityState Savings Bank	22.75%	34.20%	11.45%	50.36%
Philippine National Bank	147.76%	163.35%	15.59%	10.55%
Rizal Commercial Banking Corporation	64.70%	69.50%	4.80%	7.42%
Metropolitan Bank & Trust Company	62.99%	66.05%	3.05%	4.85%
Union Bank of the Philippines	85.31%	84.91%	-0.41%	-0.47%
Banco de Oro Unibank	59.90%	58.25%	-1.65%	-2.76%
Philippine Trust Company	55.45%	51.82%	-3.63%	-6.55%
China Banking Corporation	57.42%	53.10%	-4.32%	-7.52%
Allied Banking Corporation	71.45%	66.02%	-5.43%	-7.60%
East West Banking Corporation	68.36%	56.41%	-11.94%	-17.47%
Bank of the Philippine Islands	63.71%	51.34%	-12.37%	-19.42%
Security Bank Corporation	47.14%	37.80%	-9.34%	-19.80%
Philippine Savings Bank	105.18%	81.15%	-24.03%	-22.85%
Grand Total	71.05%	67.28%	-3.77%	-5.30%

Source: www.bsp.gov.ph and www.pse.com.ph

Listed Philippine Banks
Total Distressed Assets/Total Capital Cushion
December 31, 2011 to March 31, 2012
	December 31, 2011				March 31, 2012				Variance				% Variance
	Total Distressed Assets	Total Capital Cushion	Distressed Assets/Total Capital Cushion		Total Distressed Assets	Total Capital Cushion	Distressed Assets/Total Capital Cushion		Total Distressed Assets	Total Capital Cushion	Distressed Assets/Total Capital Cushion		Total Distressed Assets	Total Capital Cushion	Distressed Assets/Total Capital Cushion
	(In PhP)	(In PhP)	(In %)		(In PhP)	(In PhP)	(In %)		(In PhP)	(In PhP)	(In %)		(In PhP)	(In PhP)	(In %)
Philippine National Bank	61,539,362,228.07	41,647,300,624.97	147.76%		60,946,464,001.47	37,309,439,614.75	163.35%		-592,898,226.60	-4,337,861,010.22	15.59%		-0.96%	-10.42%	10.55%
Union Bank of the Philippines	38,822,563,049.10	45,506,545,040.66	85.31%		38,760,712,790.01	45,650,885,590.93	84.91%		-61,850,259.09	144,340,550.27	-0.41%		-0.16%	0.32%	-0.47%
Philippine Savings Bank	14,651,257,542.20	13,929,160,698.54	105.18%		13,601,325,210.06	16,759,739,786.84	81.15%		-1,049,932,332.14	2,830,579,088.30	-24.03%		-7.17%	20.32%	-22.85%
Rizal Commercial Banking Corporation	24,131,710,175.80	37,298,479,029.45	64.70%		26,600,710,113.13	38,273,962,830.12	69.50%		2,468,999,937.33	975,483,800.67	4.80%		10.23%	2.62%	7.42%
Metropolitan Bank & Trust Company	63,787,741,208.04	101,261,532,842.48	62.99%		65,533,760,882.97	99,222,043,905.63	66.05%		1,746,019,674.93	-2,039,488,936.85	3.05%		2.74%	-2.01%	4.85%
Allied Banking Corporation	13,475,330,400.74	18,859,833,076.12	71.45%		13,399,669,031.53	20,296,906,255.80	66.02%		-75,661,369.21	1,437,073,179.68	-5.43%		-0.56%	7.62%	-7.60%
Banco de Oro Unibank	65,154,415,706.61	108,776,275,232.51	59.90%		69,886,800,878.72	119,983,815,083.47	58.25%		4,732,385,172.11	11,207,539,850.96	-1.65%		7.26%	10.30%	-2.76%
East West Banking Corporation	7,972,097,612.88	11,662,142,632.92	68.36%		8,685,415,309.09	15,395,752,915.64	56.41%		713,317,696.21	3,733,610,282.72	-11.94%		8.95%	32.01%	-17.47%
China Banking Corporation	23,774,532,770.51	41,406,720,599.32	57.42%		22,076,228,426.80	41,575,673,227.32	53.10%		-1,698,304,343.71	168,952,628.00	-4.32%		-7.14%	0.41%	-7.52%
Philippine Trust Company	8,112,568,190.46	14,631,348,671.35	55.45%		8,561,718,369.96	16,523,217,254.71	51.82%		449,150,179.50	1,891,868,583.36	-3.63%		5.54%	12.93%	-6.55%
Bank of the Philippine Islands	50,047,779,686.11	78,556,544,290.98	63.71%		47,321,213,011.00	92,180,981,372.00	51.34%		-2,726,566,675.11	13,624,437,081.02	-12.37%		-5.45%	17.34%	-19.42%
Security Bank Corporation	12,289,009,897.96	26,070,438,913.08	47.14%		12,390,822,425.97	32,777,702,285.12	37.80%		101,812,528.01	6,707,263,372.04	-9.34%		0.83%	25.73%	-19.80%
CityState Savings Bank	183,238,709.70	805,583,903.62	22.75%		278,638,718.52	814,736,342.62	34.20%		95,400,008.82	9,152,439.00	11.45%		52.06%	1.14%	50.36%
Grand Total	383,941,607,178.18	540,411,905,556.00	71.05%		388,043,479,169.23	576,764,856,464.95	67.28%		4,101,871,991.05	36,352,950,908.95	-3.77%		1.07%	6.73%	-5.30%

Source: www.bsp.gov.ph and www.pse.com.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 December 31, 2011 and March 31, 2012 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.

A Simple Stress Test of Philippine Thrift Banks

Editor's Note:  This is the Thrift Bank version of the previous blog post "A Simple Stress Test of Philippine Commercial Banks"

In a fairly recent article entitled "Stress Test Proves Strength of PH Banks", BSP Managing Director Johnny Noe Ravalo maintained that Philippine Commercial Banks could withstand "a 20%, 30%, or even a 50% loan write-off and still have the liquidity to survive.  But the write-offs he was talking about were write-offs on non-performing loans (NPLs), which are at historic lows for Philippine Commercial Banks.  (See"U/KBs' NPL Ratio at 2.23 Percent"  and "The NPL Ratio of the Philippine Commercial Banking System is at Historic Lows").

For Philippine Commercial Banks, these NPLs currently comprise PhP 75.272 billion or 10.22% of the Stockholders Equity as of December 31, 2011.  So, writing off 50% of the Philippine Commercial Banking NPLs would reduce their aggregate stockholders equity by a little more than 5%.

For Philippine Thrift Banks, the NPL levels are much higher on a relative basis.  As of December 31, 2011, Philippine Thrift Bank NPLs amounted to PhP 23.300 billion or 31.69% of the PhP 73.521 billion of Stockholders Equity of the Philippine Thrift Banking System for the same period.  This is three times the level of the Philippine Commercial Banking System.  As a consequence, Philippine Thrift Banks, as a whole, are much more vulnerable to a 50% NPL write-off, simply because the NPL levels are so much higher than that of Philippine Commercial Banks.

In a 50% write-off of NPLs would reduce the Stockholders Equity of Philippine Thrift Banks by almost 16%.  Naturally, some banks would be more affected than others.  One bank, Real Bank (A Thrift Bank) Inc., would experience a complete wipe-out of their stockholders equity.  Another, Citibank Savings Inc. would also experience a near wipe-out of its stockholders equity (75.60%).  Citibank Savings Inc. is the local subsidiary of a foreign bank and, as such, has little or no capital.  In a crisis, it would rely on its "home-host" arrangement wherein the mother ship (the foreign parent) sends more funds and/or capital when local regulators or counterparties require it.  Two others, Metro Cebu Public Savings Bank and Legazpi Savings Bank Inc., would be severely affected (a 36.89% and 35.54% loss in stockholders equity, respectively).

Philippine Thrift Banking System
NPL as % of Stockholders Equity
December 31, 2011
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
Real Bank (A Thrift Bank) Inc.	3,761,343,022.96	485,472,417.97	774.78%
Citibank Savings Inc.	2,688,780,795.67	1,778,267,246.43	151.20%
Bataan Development Bank	49,547,170.51	67,151,915.52	73.78%
Metro Cebu Public Savings Bank	33,842,528.83	47,611,835.39	71.08%
Legazpi Savings Bank Inc.	102,155,635.59	176,184,787.67	57.98%
Farmers Savings & Loan Bank	55,157,424.76	96,695,493.71	57.04%
Premiere Development Bank	393,266,678.29	716,643,346.57	54.88%
GSIS Family Bank	217,867,697.74	409,541,141.62	53.20%
Sterling Bank of Asia Inc.	761,557,701.00	1,558,763,397.01	48.86%
Planters Development Bank	2,353,987,030.03	4,837,392,051.52	48.66%
Hiyas Savings & Loan Bank	68,179,670.76	146,893,188.34	46.41%
Village SLA, Inc.	31,931,894.94	70,179,868.87	45.50%
Opportunity Microfinance Bank	53,153,241.19	125,795,356.74	42.25%
Equicom SB	164,853,333.13	400,880,700.00	41.12%
Philippine Postal Savings Bank	273,002,996.63	687,001,256.45	39.74%
Malasiqui Progressive SLB, Inc.	17,265,442.43	47,561,616.09	36.30%
Penbank, Inc.	76,715,445.49	228,034,536.79	33.64%
Northpoint Development Bank	16,364,881.08	51,255,200.96	31.93%
Philippine Savings Bank	4,248,590,693.36	14,584,140,004.01	29.13%
University Savings Bank	55,528,391.03	196,550,939.52	28.25%
BPI Family Savings Bank	3,921,923,095.70	13,922,916,376.18	28.17%
Pampanga Development Bank	29,496,722.29	109,115,257.91	27.03%
Lemery Savings & Loan Bank, Inc.	18,652,187.00	69,668,260.33	26.77%
First Consolidated Bank	421,499,695.76	1,607,830,348.37	26.22%
World Partners Bank (A Thrift Bank)	39,957,315.77	161,937,999.09	24.67%
Malayan Bank Savings & Mortgage Bank	223,872,388.47	971,865,947.27	23.04%
Luzon Development Bank	84,342,263.81	371,751,520.19	22.69%
Allied Savings Bank	214,173,045.67	987,463,043.06	21.69%
Tong Yang Savings Bank Inc.	82,586,107.99	397,467,814.16	20.78%
Iloilo City Development Bank	12,338,437.45	60,940,836.24	20.25%
Philippine Business Bank	680,760,722.79	3,582,378,540.51	19.00%
Producers Savings Bank	121,753,296.44	662,238,871.79	18.39%
RCBC Savings Bank	1,239,993,237.59	7,131,496,114.04	17.39%
Cordillera Savings Bank	16,370,965.30	99,454,078.20	16.46%
Liberty Savings Bank	9,732,755.30	60,076,497.74	16.20%
Maritime SLA	10,512,842.67	66,378,323.17	15.84%
Pacific Ace Savings Bank	11,084,070.76	70,123,577.71	15.81%
Business & Consumers Bank	11,751,821.42	75,041,830.71	15.66%
Pridestar Development Bank	9,865,126.75	66,779,165.00	14.77%
Wealth Bank - A Development Bank	51,817,961.85	358,069,342.71	14.47%
Quezon Coconut Producers SLB Inc.	8,010,201.39	56,672,170.22	14.13%
BPI Direct Savings Bank	87,573,792.35	725,409,794.69	12.07%
UCPB Savings Bank	185,362,577.92	2,003,164,192.90	9.25%
Dumaguete City Development Bank	18,114,585.98	207,953,940.23	8.71%
Sampaguita SLA	5,344,828.88	64,830,597.27	8.24%
Dungganon Bank	4,689,862.96	61,366,684.12	7.64%
Sun Savings Bank	5,479,669.65	74,007,397.84	7.40%
Card SME Bank Inc. (A Thrift Bank)	8,633,315.66	135,000,938.65	6.40%
Optimum Development Bank	38,214,718.52	641,273,816.64	5.96%
Microfinance Maximum SB (Maxbank)	3,336,315.55	61,760,299.06	5.40%
China Bank Savings	54,509,441.79	1,293,810,766.29	4.21%
Life Savings Bank	2,638,855.79	63,657,969.31	4.15%
Tower Development Bank	4,513,526.42	109,714,758.28	4.11%
City Savings Bank	72,855,315.95	1,775,429,527.38	4.10%
HSBC Savings Bank (Phils) Inc.	84,603,585.27	2,203,663,156.78	3.84%
CityState Savings Bank	25,102,705.25	785,295,250.10	3.20%
The Queen City Development Bank	20,592,170.96	693,438,533.93	2.97%
BPI Globe Banko Inc. Savings Bank	12,702,565.90	449,784,483.73	2.82%
Bataan SLA	1,976,531.02	76,234,112.66	2.59%
Progress SLA	1,989,955.60	84,450,527.37	2.36%
Century Savings Bank	17,954,166.36	870,581,931.91	2.06%
Merchants Savings & Loan Association Inc.	430,465.95	703,603,788.65	0.06%
BDO Elite Savings Bank	0.00	1,507,551,908.05	0.00%
Isla Bank (A Thrift Bank) Inc.	0.00	627,832,458.81	0.00%
United Overseas Bank Philippines	0.00	699,786,740.71	0.00%
Bank One Savings and Trust Corp.	NA	NA	NA
Grand Total	23,300,204,891.32	73,521,285,791.14	31.69%

Source: www.bsp.gov.ph


Classified Loans

But 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."

It is not clear as to how the BSP defines Classified Loans but their definition should hew very closely to the FDIC's own definition.

 As of December 31, 2011, "Classified Loans and Other Risky Assets" of the Philippine Thrift Banking System amounted to PhP 67.639 billion or almost three times the size of the thrift banking system NPLs of PhP 23.300 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 Thrift Banking System
NPLs vs. Classified Loans
December 31, 2011
	NPL	Classified Loans	NPL/Classified Loans
Bank	(In PHP)	(In PHP)	(In %)
Isla Bank (A Thrift Bank) Inc.	0.00	33,069,070.56	0.00%
United Overseas Bank Philippines	0.00	951,537,017.54	0.00%
City Savings Bank	72,855,315.95	10,573,121,282.60	0.69%
Iloilo City Development Bank	12,338,437.45	274,888,807.33	4.49%
China Bank Savings	54,509,441.79	1,208,793,227.47	4.51%
Village SLA, Inc.	31,931,894.94	569,848,206.79	5.60%
Tower Development Bank	4,513,526.42	57,381,930.83	7.87%
Dumaguete City Development Bank	18,114,585.98	204,759,000.00	8.85%
Business & Consumers Bank	11,751,821.42	127,622,475.28	9.21%
RCBC Savings Bank	1,239,993,237.59	9,577,290,000.00	12.95%
Life Savings Bank	2,638,855.79	16,860,054.84	15.65%
GSIS Family Bank	217,867,697.74	1,275,879,789.57	17.08%
University Savings Bank	55,528,391.03	290,843,637.98	19.09%
Legazpi Savings Bank Inc.	102,155,635.59	518,975,000.00	19.68%
Progress SLA	1,989,955.60	9,197,077.59	21.64%
UCPB Savings Bank	185,362,577.92	855,564,901.90	21.67%
Wealth Bank - A Development Bank	51,817,961.85	215,458,544.06	24.05%
The Queen City Development Bank	20,592,170.96	75,743,789.50	27.19%
Malayan Bank Savings & Mortgage Bank	223,872,388.47	782,962,885.17	28.59%
Tong Yang Savings Bank Inc.	82,586,107.99	263,590,268.59	31.33%
Cordillera Savings Bank	16,370,965.30	45,719,657.34	35.81%
Farmers Savings & Loan Bank	55,157,424.76	138,190,136.68	39.91%
Philippine Savings Bank	4,248,590,693.36	10,452,572,837.64	40.65%
Pampanga Development Bank	29,496,722.29	70,843,289.18	41.64%
Real Bank (A Thrift Bank) Inc.	3,761,343,022.96	8,852,981,532.03	42.49%
Equicom SB	164,853,333.13	381,515,427.95	43.21%
Bataan Development Bank	49,547,170.51	102,400,000.00	48.39%
Opportunity Microfinance Bank	53,153,241.19	107,584,749.69	49.41%
BPI Family Savings Bank	3,921,923,095.70	7,872,799,433.83	49.82%
Premiere Development Bank	393,266,678.29	742,024,745.08	53.00%
Merchants Savings & Loan Association Inc.	430,465.95	795,000.00	54.15%
Quezon Coconut Producers SLB Inc.	8,010,201.39	13,998,171.64	57.22%
Planters Development Bank	2,353,987,030.03	4,100,834,157.00	57.40%
Philippine Business Bank	680,760,722.79	1,184,818,220.39	57.46%
Luzon Development Bank	84,342,263.81	142,000,679.14	59.40%
Producers Savings Bank	121,753,296.44	191,129,350.45	63.70%
Maritime SLA	10,512,842.67	16,482,260.48	63.78%
Metro Cebu Public Savings Bank	33,842,528.83	50,081,370.58	67.58%
Century Savings Bank	17,954,166.36	26,253,714.52	68.39%
Bataan SLA	1,976,531.02	2,624,533.02	75.31%
Liberty Savings Bank	9,732,755.30	12,698,330.40	76.65%
First Consolidated Bank	421,499,695.76	511,430,636.29	82.42%
Sampaguita SLA	5,344,828.88	6,191,662.17	86.32%
Philippine Postal Savings Bank	273,002,996.63	312,457,608.44	87.37%
CityState Savings Bank	25,102,705.25	27,889,419.18	90.01%
BPI Direct Savings Bank	87,573,792.35	97,084,803.01	90.20%
Dungganon Bank	4,689,862.96	5,087,866.78	92.18%
Citibank Savings Inc.	2,688,780,795.67	2,893,117,949.23	92.94%
HSBC Savings Bank (Phils) Inc.	84,603,585.27	87,153,778.34	97.07%
Allied Savings Bank	214,173,045.67	218,446,865.10	98.04%
Lemery Savings & Loan Bank, Inc.	18,652,187.00	18,674,522.56	99.88%
BPI Globe Banko Inc. Savings Bank	12,702,565.90	12,702,565.90	100.00%
Card SME Bank Inc. (A Thrift Bank)	8,633,315.66	8,633,315.66	100.00%
Hiyas Savings & Loan Bank	68,179,670.76	68,179,670.76	100.00%
Malasiqui Progressive SLB, Inc.	17,265,442.43	17,265,442.43	100.00%
Microfinance Maximum SB (Maxbank)	3,336,315.55	3,336,315.55	100.00%
Northpoint Development Bank	16,364,881.08	16,364,881.08	100.00%
Optimum Development Bank	38,214,718.52	38,214,718.52	100.00%
Pacific Ace Savings Bank	11,084,070.76	11,084,070.76	100.00%
Penbank, Inc.	76,715,445.49	76,715,445.49	100.00%
Pridestar Development Bank	9,865,126.75	9,865,126.75	100.00%
Sterling Bank of Asia Inc.	761,557,701.00	761,557,701.00	100.00%
Sun Savings Bank	5,479,669.65	5,479,669.65	100.00%
World Partners Bank (A Thrift Bank)	39,957,315.77	39,957,315.77	100.00%
BDO Elite Savings Bank	0.00	0.00	NA
Bank One Savings and Trust Corp.	NA	NA	NA
Grand Total	23,300,204,891.32	67,638,625,915.06	34.45%

Source: www.bsp.gov.ph

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 90.61% of the PHP 74.651 billion in Total Capital Cushion of Philippine Thrift Banks as of December 31, 2011.

Philippine Thrift Banking System
Classified Loans as % of Total Capital Cushion
December 31, 2011
	Classified Loans	Total Capital Cushion
Bank	(In PHP)	(In PHP)	(In %)
Real Bank (A Thrift Bank) Inc.	8,852,981,532.03	1,044,846,977.77	847.30%
City Savings Bank	10,573,121,282.60	1,388,719,074.33	761.36%
Village SLA, Inc.	569,848,206.79	83,288,037.75	684.19%
Iloilo City Development Bank	274,888,807.33	60,472,657.10	454.57%
Legazpi Savings Bank Inc.	518,975,000.00	170,602,061.13	304.20%
GSIS Family Bank	1,275,879,789.57	487,593,604.82	261.67%
Business & Consumers Bank	127,622,475.28	78,531,520.78	162.51%
China Bank Savings	1,208,793,227.47	822,218,155.26	147.02%
RCBC Savings Bank	9,577,290,000.00	6,621,590,303.77	144.64%
University Savings Bank	290,843,637.98	208,738,927.20	139.33%
Bataan Development Bank	102,400,000.00	74,095,120.90	138.20%
Farmers Savings & Loan Bank	138,190,136.68	116,837,900.36	118.28%
Dumaguete City Development Bank	204,759,000.00	203,793,878.67	100.47%
Planters Development Bank	4,100,834,157.00	4,393,722,453.79	93.33%
Equicom SB	381,515,427.95	472,581,826.89	80.73%
Opportunity Microfinance Bank	107,584,749.69	137,541,004.61	78.22%
Premiere Development Bank	742,024,745.08	956,754,306.80	77.56%
Citibank Savings Inc.	2,893,117,949.23	3,801,262,095.38	76.11%
Philippine Savings Bank	10,452,572,837.64	13,929,160,698.54	75.04%
Malayan Bank Savings & Mortgage Bank	782,962,885.17	1,075,379,215.58	72.81%
Metro Cebu Public Savings Bank	50,081,370.58	74,212,433.16	67.48%
United Overseas Bank Philippines	951,537,017.54	1,485,808,841.71	64.04%
Tong Yang Savings Bank Inc.	263,590,268.59	443,455,225.55	59.44%
Pampanga Development Bank	70,843,289.18	120,343,323.41	58.87%
BPI Family Savings Bank	7,872,799,433.83	13,962,882,381.92	56.38%
Wealth Bank - A Development Bank	215,458,544.06	395,185,869.59	54.52%
Tower Development Bank	57,381,930.83	112,678,828.58	50.93%
Sterling Bank of Asia Inc.	761,557,701.00	1,704,899,830.40	44.67%
Philippine Business Bank	1,184,818,220.39	2,774,250,378.64	42.71%
Hiyas Savings & Loan Bank	68,179,670.76	164,502,210.42	41.45%
UCPB Savings Bank	855,564,901.90	2,207,463,095.83	38.76%
Philippine Postal Savings Bank	312,457,608.44	811,348,052.94	38.51%
Cordillera Savings Bank	45,719,657.34	123,766,715.93	36.94%
Producers Savings Bank	191,129,350.45	527,512,390.32	36.23%
Luzon Development Bank	142,000,679.14	436,917,967.42	32.50%
Malasiqui Progressive SLB, Inc.	17,265,442.43	54,828,649.13	31.49%
First Consolidated Bank	511,430,636.29	1,673,870,535.21	30.55%
Penbank, Inc.	76,715,445.49	254,791,038.35	30.11%
Northpoint Development Bank	16,364,881.08	59,193,177.23	27.65%
Life Savings Bank	16,860,054.84	63,645,807.09	26.49%
Lemery Savings & Loan Bank, Inc.	18,674,522.56	73,882,141.35	25.28%
Quezon Coconut Producers SLB Inc.	13,998,171.64	57,268,623.22	24.44%
Maritime SLA	16,482,260.48	68,824,229.22	23.95%
World Partners Bank (A Thrift Bank)	39,957,315.77	174,159,550.30	22.94%
Allied Savings Bank	218,446,865.10	1,014,585,418.07	21.53%
Liberty Savings Bank	12,698,330.40	59,726,549.24	21.26%
Pacific Ace Savings Bank	11,084,070.76	72,593,155.07	15.27%
Pridestar Development Bank	9,865,126.75	72,170,956.24	13.67%
BPI Direct Savings Bank	97,084,803.01	715,894,536.42	13.56%
The Queen City Development Bank	75,743,789.50	698,722,234.47	10.84%
Progress SLA	9,197,077.59	85,031,839.07	10.82%
Sampaguita SLA	6,191,662.17	69,148,222.58	8.95%
Dungganon Bank	5,087,866.78	60,321,880.63	8.43%
Sun Savings Bank	5,479,669.65	73,296,710.78	7.48%
Card SME Bank Inc. (A Thrift Bank)	8,633,315.66	140,444,945.62	6.15%
Optimum Development Bank	38,214,718.52	641,570,262.55	5.96%
Microfinance Maximum SB (Maxbank)	3,336,315.55	61,222,373.26	5.45%
Isla Bank (A Thrift Bank) Inc.	33,069,070.56	625,764,495.92	5.28%
HSBC Savings Bank (Phils) Inc.	87,153,778.34	1,830,846,012.02	4.76%
CityState Savings Bank	27,889,419.18	805,583,903.62	3.46%
Bataan SLA	2,624,533.02	79,897,380.54	3.28%
Century Savings Bank	26,253,714.52	846,901,386.59	3.10%
BPI Globe Banko Inc. Savings Bank	12,702,565.90	551,847,301.15	2.30%
Merchants Savings & Loan Association Inc.	795,000.00	721,264,073.21	0.11%
BDO Elite Savings Bank	0.00	1,470,452,260.33	0.00%
Bank One Savings and Trust Corp.	NA	NA	NA
Grand Total	67,638,625,915.06	74,650,707,015.73	90.61%

Source: www.bsp.gov.ph

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 Thrift Banking System?

In the aggregate, if Classified Loans amount to 90.61% of the commercial banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 9.06% and a 50% write-off of classified loans will reduce the commercial banking system's Total Capital Cushion by 45.30%.

Individual Banks

A 10% write-off of Classified Loans would severely impact (by 30% or more) the Total Capital Cushion of  five banks:

1. Real Bank (A Thrift Bank) Inc. (84.73% reduction in Total Capital Cushion)
2. City Savings Bank (76.14% reduction in Total Capital Cushion)
3. Village SLA, Inc. (68.42% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (45.46% reduction in Total Capital Cushion)
5. Legazpi Savings Bank Inc. (30.42% reduction in Total Capital Cushion)

A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of three banks and severely impact the Total Capital Cushion of four banks:

1. Real Bank (A Thrift Bank) Inc. (169.46% reduction in Total Capital Cushion)
2. City Savings Bank (152.27% reduction in Total Capital Cushion)
3. Village SLA, Inc. (136.84% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (90.91% reduction in Total Capital Cushion)
5. Legazpi Savings Bank Inc. (60.84% reduction in Total Capital Cushion)
6. GSIS Family Bank (52.33% reduction in Total Capital Cushion)
7. Business & Consumers Bank (32.50% reduction in Total Capital Cushion)

A 30% 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 nine more banks:

1. Real Bank (A Thrift Bank) Inc. (254.19% reduction in Total Capital Cushion)
2. City Savings Bank (228.41% reduction in Total Capital Cushion)
3. Village SLA, Inc. (205.26% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (136.37% reduction in Total Capital Cushion)
5. Legazpi Savings Bank Inc. (91.26% reduction in Total Capital Cushion)
6. GSIS Family Bank (78.50% reduction in Total Capital Cushion)
7. Business & Consumers Bank (48.75% reduction in Total Capital Cushion)
8. China Bank Savings (44.10% reduction in Total Capital Cushion)
9. RCBC Savings Bank (43.39% reduction in Total Capital Cushion)
10. University Savings Bank (41.80% reduction in Total Capital Cushion)
11. Bataan Development Bank (41.46% reduction in Total Capital Cushion)
12. Farmers Savings & Loan Bank (35.48% reduction in Total Capital Cushion)
13. Dumaguete City Development Bank (30.14% reduction in Total Capital Cushion)

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of six banks and severely affect (reduce by 30% or more) the Total Capital Cushion of thirteen more banks:

1. Real Bank (A Thrift Bank) Inc. (338.92% reduction in Total Capital Cushion)
2. City Savings Bank (304.54% reduction in Total Capital Cushion)
3. Village SLA, Inc. (273.68% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (181.83% reduction in Total Capital Cushion)
5. Legazpi Savings Bank Inc. (121.68% reduction in Total Capital Cushion)
6. GSIS Family Bank (104.67% reduction in Total Capital Cushion)
7. Business & Consumers Bank (65.00% reduction in Total Capital Cushion)
8. China Bank Savings (58.81% reduction in Total Capital Cushion)
9. RCBC Savings Bank (57.85% reduction in Total Capital Cushion)
10. University Savings Bank (55.73% reduction in Total Capital Cushion)
11. Bataan Development Bank (55.28% reduction in Total Capital Cushion)
12. Farmers Savings & Loan Bank (47.31% reduction in Total Capital Cushion)
13. Dumaguete City Development Bank (40.19% reduction in Total Capital Cushion)
14. Planters Development Bank (37.33% reduction in Total Capital Cushion)
15. Equicom SB (32.29% reduction in Total Capital Cushion)
16. Opportunity Microfinance Bank (31.29% reduction in Total Capital Cushion)
17. Premiere Development Bank (31.02% reduction in Total Capital Cushion)
18. Citibank Savings Inc. (30.44% reduction in Total Capital Cushion)
19. Philippine Savings Bank (30.02% reduction in Total Capital Cushion)

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of six banks and severely affect (reduce by 30% or more) the Total Capital Cushion of sixteen more banks:

1. Real Bank (A Thrift Bank) Inc. (423.65% reduction in Total Capital Cushion)
2. City Savings Bank (380.68% reduction in Total Capital Cushion)
3. Village SLA, Inc. (342.09% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (227.28% reduction in Total Capital Cushion)
5. Legazpi Savings Bank Inc. (152.10% reduction in Total Capital Cushion)
6. GSIS Family Bank (130.83% reduction in Total Capital Cushion)
7. Business & Consumers Bank (81.26% reduction in Total Capital Cushion)
8. China Bank Savings (73.51% reduction in Total Capital Cushion)
9. RCBC Savings Bank (72.32% reduction in Total Capital Cushion)
10. University Savings Bank (69.67% reduction in Total Capital Cushion)
11. Bataan Development Bank (69.10% reduction in Total Capital Cushion)
12. Farmers Savings & Loan Bank (59.14% reduction in Total Capital Cushion)
13. Dumaguete City Development Bank (50.24% reduction in Total Capital Cushion)
14. Planters Development Bank (46.67% reduction in Total Capital Cushion)
15. Equicom SB (40.37% reduction in Total Capital Cushion)
16. Opportunity Microfinance Bank (39.11% reduction in Total Capital Cushion)
17. Premiere Development Bank (38.78% reduction in Total Capital Cushion)
18. Citibank Savings Inc. (38.05% reduction in Total Capital Cushion)
19. Philippine Savings Bank (37.52% reduction in Total Capital Cushion)
20. Malayan Bank Savings & Mortgage Bank (36.04% reduction in Total Capital Cushion)
21. Metro Cebu Public Savings Bank (33.74% reduction in Total Capital Cushion)
22. United Overseas Bank Philippines (32.02% reduction in Total Capital Cushion)

Please bear in mind that a number of these banks are already very weak and are in distress.  See a previous blog post "City Savings Takes the Silver in Insolvency".  Moreover, their capital can be overstated.  See a previous blog post "Philippine Thrift Banks with Overstated Capital as of December 31, 2011".  As such, any reduction in their capital cushion could knock down an already weak bank.

Philippine Thrift Banking System
Classified Loans as % of Total Capital Cushion
December 31, 2011
	Classified Loans	Total Capital Cushion	Impact of 10% Loss on Total Capital Cushion	Impact of 20% Loss on Total Capital Cushion	Impact of 30% Loss on Total Capital Cushion	Impact of 40% Loss on Total Capital Cushion	Impact of 50% Loss on Total Capital Cushion
Bank	(In PHP)	(In PHP)	(In %)	(In %)	(In %)	(In %)	(In %)
Real Bank (A Thrift Bank) Inc.	8,852,981,532.03	1,044,846,977.77	84.73%	169.46%	254.19%	338.92%	423.65%
City Savings Bank	10,573,121,282.60	1,388,719,074.33	76.14%	152.27%	228.41%	304.54%	380.68%
Village SLA, Inc.	569,848,206.79	83,288,037.75	68.42%	136.84%	205.26%	273.68%	342.09%
Iloilo City Development Bank	274,888,807.33	60,472,657.10	45.46%	90.91%	136.37%	181.83%	227.28%
Legazpi Savings Bank Inc.	518,975,000.00	170,602,061.13	30.42%	60.84%	91.26%	121.68%	152.10%
GSIS Family Bank	1,275,879,789.57	487,593,604.82	26.17%	52.33%	78.50%	104.67%	130.83%
Business & Consumers Bank	127,622,475.28	78,531,520.78	16.25%	32.50%	48.75%	65.00%	81.26%
China Bank Savings	1,208,793,227.47	822,218,155.26	14.70%	29.40%	44.10%	58.81%	73.51%
RCBC Savings Bank	9,577,290,000.00	6,621,590,303.77	14.46%	28.93%	43.39%	57.85%	72.32%
University Savings Bank	290,843,637.98	208,738,927.20	13.93%	27.87%	41.80%	55.73%	69.67%
Bataan Development Bank	102,400,000.00	74,095,120.90	13.82%	27.64%	41.46%	55.28%	69.10%
Farmers Savings & Loan Bank	138,190,136.68	116,837,900.36	11.83%	23.66%	35.48%	47.31%	59.14%
Dumaguete City Development Bank	204,759,000.00	203,793,878.67	10.05%	20.09%	30.14%	40.19%	50.24%
Planters Development Bank	4,100,834,157.00	4,393,722,453.79	9.33%	18.67%	28.00%	37.33%	46.67%
Equicom SB	381,515,427.95	472,581,826.89	8.07%	16.15%	24.22%	32.29%	40.37%
Opportunity Microfinance Bank	107,584,749.69	137,541,004.61	7.82%	15.64%	23.47%	31.29%	39.11%
Premiere Development Bank	742,024,745.08	956,754,306.80	7.76%	15.51%	23.27%	31.02%	38.78%
Citibank Savings Inc.	2,893,117,949.23	3,801,262,095.38	7.61%	15.22%	22.83%	30.44%	38.05%
Philippine Savings Bank	10,452,572,837.64	13,929,160,698.54	7.50%	15.01%	22.51%	30.02%	37.52%
Malayan Bank Savings & Mortgage Bank	782,962,885.17	1,075,379,215.58	7.28%	14.56%	21.84%	29.12%	36.40%
Metro Cebu Public Savings Bank	50,081,370.58	74,212,433.16	6.75%	13.50%	20.25%	26.99%	33.74%
United Overseas Bank Philippines	951,537,017.54	1,485,808,841.71	6.40%	12.81%	19.21%	25.62%	32.02%
Tong Yang Savings Bank Inc.	263,590,268.59	443,455,225.55	5.94%	11.89%	17.83%	23.78%	29.72%
Pampanga Development Bank	70,843,289.18	120,343,323.41	5.89%	11.77%	17.66%	23.55%	29.43%
BPI Family Savings Bank	7,872,799,433.83	13,962,882,381.92	5.64%	11.28%	16.92%	22.55%	28.19%
Wealth Bank - A Development Bank	215,458,544.06	395,185,869.59	5.45%	10.90%	16.36%	21.81%	27.26%
Tower Development Bank	57,381,930.83	112,678,828.58	5.09%	10.19%	15.28%	20.37%	25.46%
Sterling Bank of Asia Inc.	761,557,701.00	1,704,899,830.40	4.47%	8.93%	13.40%	17.87%	22.33%
Philippine Business Bank	1,184,818,220.39	2,774,250,378.64	4.27%	8.54%	12.81%	17.08%	21.35%
Hiyas Savings & Loan Bank	68,179,670.76	164,502,210.42	4.14%	8.29%	12.43%	16.58%	20.72%
UCPB Savings Bank	855,564,901.90	2,207,463,095.83	3.88%	7.75%	11.63%	15.50%	19.38%
Philippine Postal Savings Bank	312,457,608.44	811,348,052.94	3.85%	7.70%	11.55%	15.40%	19.26%
Cordillera Savings Bank	45,719,657.34	123,766,715.93	3.69%	7.39%	11.08%	14.78%	18.47%
Producers Savings Bank	191,129,350.45	527,512,390.32	3.62%	7.25%	10.87%	14.49%	18.12%
Luzon Development Bank	142,000,679.14	436,917,967.42	3.25%	6.50%	9.75%	13.00%	16.25%
Malasiqui Progressive SLB, Inc.	17,265,442.43	54,828,649.13	3.15%	6.30%	9.45%	12.60%	15.74%
First Consolidated Bank	511,430,636.29	1,673,870,535.21	3.06%	6.11%	9.17%	12.22%	15.28%
Penbank, Inc.	76,715,445.49	254,791,038.35	3.01%	6.02%	9.03%	12.04%	15.05%
Northpoint Development Bank	16,364,881.08	59,193,177.23	2.76%	5.53%	8.29%	11.06%	13.82%
Life Savings Bank	16,860,054.84	63,645,807.09	2.65%	5.30%	7.95%	10.60%	13.25%
Lemery Savings & Loan Bank, Inc.	18,674,522.56	73,882,141.35	2.53%	5.06%	7.58%	10.11%	12.64%
Quezon Coconut Producers SLB Inc.	13,998,171.64	57,268,623.22	2.44%	4.89%	7.33%	9.78%	12.22%
Maritime SLA	16,482,260.48	68,824,229.22	2.39%	4.79%	7.18%	9.58%	11.97%
World Partners Bank (A Thrift Bank)	39,957,315.77	174,159,550.30	2.29%	4.59%	6.88%	9.18%	11.47%
Allied Savings Bank	218,446,865.10	1,014,585,418.07	2.15%	4.31%	6.46%	8.61%	10.77%
Liberty Savings Bank	12,698,330.40	59,726,549.24	2.13%	4.25%	6.38%	8.50%	10.63%
Pacific Ace Savings Bank	11,084,070.76	72,593,155.07	1.53%	3.05%	4.58%	6.11%	7.63%
Pridestar Development Bank	9,865,126.75	72,170,956.24	1.37%	2.73%	4.10%	5.47%	6.83%
BPI Direct Savings Bank	97,084,803.01	715,894,536.42	1.36%	2.71%	4.07%	5.42%	6.78%
The Queen City Development Bank	75,743,789.50	698,722,234.47	1.08%	2.17%	3.25%	4.34%	5.42%
Progress SLA	9,197,077.59	85,031,839.07	1.08%	2.16%	3.24%	4.33%	5.41%
Sampaguita SLA	6,191,662.17	69,148,222.58	0.90%	1.79%	2.69%	3.58%	4.48%
Dungganon Bank	5,087,866.78	60,321,880.63	0.84%	1.69%	2.53%	3.37%	4.22%
Sun Savings Bank	5,479,669.65	73,296,710.78	0.75%	1.50%	2.24%	2.99%	3.74%
Card SME Bank Inc. (A Thrift Bank)	8,633,315.66	140,444,945.62	0.61%	1.23%	1.84%	2.46%	3.07%
Optimum Development Bank	38,214,718.52	641,570,262.55	0.60%	1.19%	1.79%	2.38%	2.98%
Microfinance Maximum SB (Maxbank)	3,336,315.55	61,222,373.26	0.54%	1.09%	1.63%	2.18%	2.72%
Isla Bank (A Thrift Bank) Inc.	33,069,070.56	625,764,495.92	0.53%	1.06%	1.59%	2.11%	2.64%
HSBC Savings Bank (Phils) Inc.	87,153,778.34	1,830,846,012.02	0.48%	0.95%	1.43%	1.90%	2.38%
CityState Savings Bank	27,889,419.18	805,583,903.62	0.35%	0.69%	1.04%	1.38%	1.73%
Bataan SLA	2,624,533.02	79,897,380.54	0.33%	0.66%	0.99%	1.31%	1.64%
Century Savings Bank	26,253,714.52	846,901,386.59	0.31%	0.62%	0.93%	1.24%	1.55%
BPI Globe Banko Inc. Savings Bank	12,702,565.90	551,847,301.15	0.23%	0.46%	0.69%	0.92%	1.15%
Merchants Savings & Loan Association Inc.	795,000.00	721,264,073.21	0.01%	0.02%	0.03%	0.04%	0.06%
BDO Elite Savings Bank	0.00	1,470,452,260.33	0.00%	0.00%	0.00%	0.00%	0.00%
Bank One Savings and Trust Corp.	NA	NA	NA	NA	NA	NA	NA
Grand Total	67,638,625,915.06	74,650,707,015.73	9.06%	18.12%	27.18%	36.24%	45.30%

Source: www.bsp.gov.ph