A Simple Stress Test of Philippine Banks as of June 30, 2013

Editor's Note: This is an updated version of an earlier blog post "A Simple Stress Test of Philippine Banks as of March 31, 2013"

Editor's Note: For the purposes of this article, Philippine Banks or the Philippine Banking System refers to the Philippine Commercial and Universal Banking System and the Philippine Thrift Banking System.  We are ignoring the Philippine Rural and Cooperative Banking System whose asset base is tiny in comparison to the whole banking system (Php 195.959 billion or 2.27% of the Php 8,616.530 billion in assets held in the Philippine Banking System as of June 30, 2013).


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 128.520 billion or 12.93% of the PhP 994.173 billion in Stockholders Equity (SE) as of June 30, 2013.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholders equity by a little more than 6%.

Naturally, some banks would be more affected than others.  (Weak banks are highlighted in yellow.  (For more information regarding this, please read "The Top Distressed Philippine Banks as of June 30, 2013").

The stockholder's equity of The Real Bank would be completely wiped out.  Two other banks, Silangan Savings and Loan Bank, Inc. and Citibank Savings, Inc., would almost be completely wiped out. 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.  Six other banks, namely, Opportunity Kauswagan Bank, Inc. (49.64% decline in SE), United Overseas Bank Philippines (49.21% decline in SE), Planters Development Bank (48.38% decline in SE), World Partners Bank (43.60% decline in SE), Legazpi Savings Bank (37.08% decline in SE), Security Bank Savings Corporation (33.90% decline in SE) would be severely affected.

Philippine Banking System
NPL as % of SE
June 30, 2013
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
THE REAL BANK (A THRIFT BANK) INC	3,395,898,471.33	954,716,904.11	355.70%
SILANGAN SAVINGS & LOAN BANK INC	19,424,309.99	10,024,231.84	193.77%
CITIBANK SAVINGS INC	2,668,682,418.84	1,505,092,916.36	177.31%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	65,317,160.61	65,785,965.21	99.29%
UNITED OVERSEAS BANK PHILIPPINES	664,852,621.65	675,479,081.15	98.43%
PLANTERS DEVELOPMENT BANK	3,329,762,667.28	3,441,566,343.20	96.75%
WORLD PARTNERS BANK (A THRIFT BANK)	89,792,832.06	102,977,631.01	87.20%
LEGAZPI SAVINGS BANK, INC.	136,824,757.59	184,484,675.09	74.17%
SECURITY BANK SAVINGS CORPORATION	748,232,954.74	1,103,700,790.10	67.79%
BATAAN DEVELOPMENT BANK	40,375,571.40	67,429,814.21	59.88%
COMSAVINGS BANK	180,958,895.39	336,787,294.99	53.73%
ENTERPRISE BANK INC (A THRIFT BANK)	101,704,523.03	190,206,158.92	53.47%
BPI GLOBE BANKO INC A SAVINGS BANK	182,062,708.60	347,672,013.20	52.37%
PHILIPPINE POSTAL SAVINGS BANK INC	373,508,253.37	753,072,008.18	49.60%
LUZON DEVELOPMENT BANK	209,405,965.66	422,218,858.87	49.60%
FARMERS SAVINGS & LOAN BANK INC	49,778,999.14	102,665,008.26	48.49%
ILOILO CITY DEVELOPMENT BANK	33,566,491.04	72,516,124.72	46.29%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	840,644,785.84	1,855,253,921.92	45.31%
SAMPAGUITA SAVINGS BANK INC	25,352,585.39	56,198,308.44	45.11%
STANDARD CHARTERED BANK	1,098,898,477.63	2,436,791,613.93	45.10%
PAMPANGA DEVELOPMENT BANK	45,826,800.12	113,624,759.84	40.33%
EQUICOM SAVINGS BANK INC	182,093,052.34	474,402,836.24	38.38%
ALLIED SAVINGS BANK	357,228,320.30	970,670,969.63	36.80%
PHILIPPINE RESOURCES SAVINGS BANKING	506,120,298.59	1,444,810,331.28	35.03%
VILLAGE BANK INC (A THRIFT BANK)	25,354,756.32	74,691,166.15	33.95%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	90,230,745.42	266,175,154.05	33.90%
TONG YANG SAVINGS BANK INC	117,135,782.39	370,323,576.74	31.63%
MARITIME SAVINGS BANK CORPORATION	20,891,930.08	66,536,138.15	31.40%
MALAYAN BANK SAVINGS AND MORT BANK INC	315,811,222.29	1,081,422,213.27	29.20%
WEALTH DEVELOPMENT BANK CORPORATION	112,359,183.78	386,675,687.50	29.06%
MALASIQUI PROGRESSIVE SLB, INC	15,416,574.15	53,228,171.60	28.96%
UNIVERSITY SAVINGS BANK INC	56,688,206.71	213,182,990.10	26.59%
UNITED COCONUT PLANTERS BANK	5,418,035,459.56	20,469,896,934.55	26.47%
RCBC SAVINGS BANK INC	1,888,113,779.49	7,446,561,848.19	25.36%
PHILIPPINE SAVINGS BANK	4,078,386,173.61	16,431,300,642.56	24.82%
BANK OF COMMERCE	3,974,275,557.76	16,207,283,504.94	24.52%
PHILIPPINE BANK OF COMMUNICATIONS	1,294,790,670.10	5,368,160,351.75	24.12%
BPI FAMILY SAVINGS BANK INC	4,202,527,605.71	17,933,631,550.55	23.43%
UNION BANK OF THE PHILIPPINES	9,455,821,843.24	40,873,093,422.58	23.13%
EAST WEST BANKING CORPORATION	4,123,947,638.15	18,367,165,525.46	22.45%
BUSINESS AND CONSUMERS BANK (A DB)	17,314,239.78	79,466,088.60	21.79%
HIYAS BANKING CORPORATION	32,746,038.55	159,435,298.25	20.54%
DUNGGANON BANK (A MICROFINANCE THRIFT	16,046,296.68	84,752,873.74	18.93%
FIRST CONSOLIDATED BANK INC (A PDB)	353,652,603.04	1,984,315,768.51	17.82%
CORDILLERA SAVINGS BANK INC	17,598,967.60	99,002,411.81	17.78%
PRODUCERS SAVINGS BANK CORPORATION	201,998,125.29	1,143,633,294.44	17.66%
BPI DIRECT SAVINGS BANK INC	139,044,497.30	872,759,218.43	15.93%
LEMERY SAVINGS & LOAN BANK, INC.	10,169,554.92	67,666,272.11	15.03%
DUMAGUETE CITY DEV BANK INC	28,750,511.17	205,618,290.98	13.98%
PHILIPPINE NATIONAL BANK	10,537,323,358.47	75,389,633,814.34	13.98%
BDO UNIBANK, INC.	21,736,582,292.44	157,961,876,170.48	13.76%
PRIDE STAR DEVELOPMENT BANK INC	9,559,935.83	69,952,802.55	13.67%
DEVELOPMENT BANK OF THE PHILIPPINES	5,466,014,506.37	40,019,086,743.04	13.66%
PHILIPPINE VETERANS BANK	980,823,653.30	7,274,715,194.50	13.48%
THE HONGKONG & SHANGHAI BANKING CORPORATION	729,673,833.25	5,581,816,737.16	13.07%
METRO CEBU PUBLIC SAVINGS BANK	8,297,465.14	64,176,816.41	12.93%
LAND BANK OF THE PHILIPPINES	9,453,523,258.07	74,490,631,217.21	12.69%
CHINA BANKING CORPORATION	4,782,057,740.47	41,282,070,248.73	11.58%
CITIBANK, N.A.	836,380,944.02	7,307,790,974.29	11.45%
CHINA BANK SAVINGS INC	129,836,374.62	1,149,391,251.67	11.30%
QUEZON COCONUT BANK INC (A THRIFT BANK)	6,222,043.61	58,137,795.88	10.70%
ROBINSONS BANK CORPORATION	580,065,444.02	5,593,386,942.73	10.37%
LIFE SAVINGS BANK INC	6,665,816.07	64,480,923.50	10.34%
MAYBANK PHILIPPINES, INC.	970,046,462.92	10,011,074,288.81	9.69%
PHILIPPINE BUSINESS BANK INC A SAVINGS	673,765,617.19	7,154,855,472.70	9.42%
CITY SAVINGS BANK INC	238,915,692.77	2,616,360,671.62	9.13%
NORTHPOINT DEVELOPMENT BANK INC	6,664,184.61	74,784,706.83	8.91%
UCPB SAVINGS BANK	221,016,118.63	2,481,150,558.49	8.91%
TOWER DEVELOPMENT BANK	10,247,473.00	115,297,510.57	8.89%
ASIA UNITED BANK CORPORATION	1,596,944,586.65	18,004,493,277.37	8.87%
BANK OF THE PHILIPPINE ISLANDS	7,789,025,813.91	96,984,409,795.53	8.03%
RIZAL COMMERCIAL BANKING CORPORATION	3,666,770,696.69	45,733,731,017.79	8.02%
KOREA EXCHANGE BANK	41,388,628.80	535,093,060.19	7.73%
CARD SME BANK INC A THRIFT BANK	16,475,214.84	225,355,623.11	7.31%
PACIFIC ACE SAVINGS BANK INC	5,366,428.71	74,197,418.90	7.23%
PHILIPPINE TRUST COMPANY	1,163,844,952.40	19,325,487,937.77	6.02%
CITYSTATE SAVINGS BANK INC	43,862,623.29	797,606,384.96	5.50%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	34,915,854.31	665,872,938.03	5.24%
SUN SAVINGS BANK INC	5,626,766.85	107,378,430.56	5.24%
CENTURY SAVINGS BANK CORPORATION	44,181,100.51	908,388,275.05	4.86%
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION	299,214,016.73	6,416,703,004.47	4.66%
HSBC SAVINGS BANK(PHILS) INC	114,182,022.24	2,779,512,080.98	4.11%
BANK ONE SAVINGS AND TRUST CORP.	20,832,453.89	534,632,634.91	3.90%
BATAAN SAVINGS AND LOAN BANK	2,565,639.77	75,794,949.19	3.38%
METROPOLITAN BANK & TRUST COMPANY	4,131,775,569.43	129,811,488,118.47	3.18%
MICROFINANCE MAXIMUM SB INC	1,414,730.90	59,380,718.51	2.38%
OPTIMUM DEVELOPMENT BANK INC	16,184,888.53	712,005,019.73	2.27%
SECURITY BANK CORPORATION	745,283,264.55	38,031,802,693.36	1.96%
PROGRESS SAVINGS AND LOAN BANK INC	1,257,692.79	83,851,283.88	1.50%
BANK OF CHINA LIMITED-MANILA BRANCH	8,660,895.91	702,151,897.91	1.23%
ANZ BANKING GROUP LTD.	23,339,114.85	2,638,076,062.74	0.88%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	2,738,383.86	518,764,567.97	0.53%
BANGKOK BANK PUBLIC CO. LTD.	5,114,155.55	1,151,237,103.16	0.44%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES	1,156,048.97	417,807,663.99	0.28%
JP MORGAN CHASE BANK, N.A.	734,885.22	2,112,614,494.20	0.03%
INTERNATIONALE NEDERLANDEN GROEP BK	88.40	2,978,631,660.50	0.00%
BANK OF AMERICA, N.A.	4.00	596,946,705.20	0.00%
BDO ELITE SAVINGS BANK INC	0.00	1,587,282,037.51	0.00%
BDO PRIVATE BANK, INC.	0.00	5,876,167,394.59	0.00%
DEUTSCHE BANK AG	0.00	2,154,472,213.73	0.00%
ISLA BANK (A THRIFT BANK) INC	0.00	639,029,859.97	0.00%
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.	0.00	690,973,487.79	0.00%
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH	0.00	1,441,815,862.96	0.00%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	2,045,511,752.87	0.00%
Grand Total	128,519,960,622.37	994,173,465,225.07	12.93%

Source: www.bsp.gov.ph

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 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, 2013, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 397.517 billion or more than 3 times the size of the Philippine Banking System's NPLs of PhP 128.520 billion for the same period.  Consequently, any write-offs of Classified Loans will have three times the impact of an NPL write-off.

Philippine Banking System
Classified Loans vs. NPLs
June 30, 2013
Bank	Classified Loans	Gross NPLs	Classified Loans/ Gross NPLs
INTERNATIONALE NEDERLANDEN GROEP BK	455,183,734.92	88.40	514913727.29%
BANK OF AMERICA, N.A.	5,534,000.00	4.00	138350000.00%
BANK OF CHINA LIMITED-MANILA BRANCH	6,805,685,496.00	8,660,895.91	78579.46%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES	72,205,000.00	1,156,048.97	6245.84%
CITIBANK, N.A.	33,218,279,000.00	836,380,944.02	3971.67%
KOREA EXCHANGE BANK	843,572,088.12	41,388,628.80	2038.17%
VILLAGE BANK INC (A THRIFT BANK)	464,895,661.08	25,354,756.32	1833.56%
BANK ONE SAVINGS AND TRUST CORP.	206,906,492.63	20,832,453.89	993.19%
ILOILO CITY DEVELOPMENT BANK	310,273,532.06	33,566,491.04	924.35%
UNIVERSITY SAVINGS BANK INC	440,667,822.30	56,688,206.71	777.35%
SECURITY BANK CORPORATION	5,766,000,000.00	745,283,264.55	773.67%
COMSAVINGS BANK	1,275,879,789.57	180,958,895.39	705.07%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	5,418,035,459.56	680.43%
UCPB SAVINGS BANK	1,468,145,007.88	221,016,118.63	664.27%
BUSINESS AND CONSUMERS BANK (A DB)	109,442,099.86	17,314,239.78	632.09%
BANK OF COMMERCE	24,857,960,000.00	3,974,275,557.76	625.47%
DUMAGUETE CITY DEV BANK INC	165,608,000.00	28,750,511.17	576.02%
METROPOLITAN BANK & TRUST COMPANY	22,013,188,544.22	4,131,775,569.43	532.78%
RCBC SAVINGS BANK INC	8,915,418,143.00	1,888,113,779.49	472.19%
LEGAZPI SAVINGS BANK, INC.	627,281,000.00	136,824,757.59	458.46%
PHILIPPINE NATIONAL BANK	46,458,216,537.13	10,537,323,358.47	440.89%
PRIDE STAR DEVELOPMENT BANK INC	34,046,248.59	9,559,935.83	356.13%
PHILIPPINE VETERANS BANK	3,384,501,137.74	980,823,653.30	345.07%
CHINA BANK SAVINGS INC	430,117,715.94	129,836,374.62	331.28%
PHILIPPINE TRUST COMPANY	3,596,510,491.76	1,163,844,952.40	309.02%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,617,372.17	6,222,043.61	299.22%
MALAYAN BANK SAVINGS AND MORT BANK INC	944,194,502.56	315,811,222.29	298.97%
TONG YANG SAVINGS BANK INC	346,887,404.45	117,135,782.39	296.14%
ASIA UNITED BANK CORPORATION	4,695,648,613.05	1,596,944,586.65	294.04%
PHILIPPINE SAVINGS BANK	11,986,773,290.06	4,078,386,173.61	293.91%
METRO CEBU PUBLIC SAVINGS BANK	23,611,539.35	8,297,465.14	284.56%
BANK OF THE PHILIPPINE ISLANDS	22,055,091,689.87	7,789,025,813.91	283.16%
RIZAL COMMERCIAL BANKING CORPORATION	10,382,641,580.40	3,666,770,696.69	283.15%
PROGRESS SAVINGS AND LOAN BANK INC	3,487,152.19	1,257,692.79	277.27%
LIFE SAVINGS BANK INC	17,917,170.04	6,665,816.07	268.79%
BATAAN DEVELOPMENT BANK	102,400,000.00	40,375,571.40	253.62%
UNION BANK OF THE PHILIPPINES	22,397,330,686.68	9,455,821,843.24	236.86%
ROBINSONS BANK CORPORATION	1,355,020,000.00	580,065,444.02	233.60%
FARMERS SAVINGS & LOAN BANK INC	115,951,877.35	49,778,999.14	232.93%
WORLD PARTNERS BANK (A THRIFT BANK)	205,874,859.78	89,792,832.06	229.28%
CHINA BANKING CORPORATION	10,863,742,622.39	4,782,057,740.47	227.18%
LAND BANK OF THE PHILIPPINES	20,942,965,976.08	9,453,523,258.07	221.54%
EQUICOM SAVINGS BANK INC	392,606,970.92	182,093,052.34	215.61%
TOWER DEVELOPMENT BANK	21,070,264.24	10,247,473.00	205.61%
CORDILLERA SAVINGS BANK INC	35,230,171.27	17,598,967.60	200.18%
FIRST CONSOLIDATED BANK INC (A PDB)	707,211,549.91	353,652,603.04	199.97%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	67,814,851.34	34,915,854.31	194.22%
THE REAL BANK (A THRIFT BANK) INC	6,594,213,304.20	3,395,898,471.33	194.18%
HSBC SAVINGS BANK(PHILS) INC	218,978,691.68	114,182,022.24	191.78%
BPI FAMILY SAVINGS BANK INC	8,002,699,308.38	4,202,527,605.71	190.43%
BPI GLOBE BANKO INC A SAVINGS BANK	343,112,708.70	182,062,708.60	188.46%
PHILIPPINE RESOURCES SAVINGS BANKING	913,828,987.75	506,120,298.59	180.56%
PRODUCERS SAVINGS BANK CORPORATION	358,029,943.68	201,998,125.29	177.24%
BDO UNIBANK, INC.	38,354,846,555.95	21,736,582,292.44	176.45%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	673,765,617.19	175.85%
MAYBANK PHILIPPINES, INC.	1,681,368,825.01	970,046,462.92	173.33%
SECURITY BANK SAVINGS CORPORATION	1,284,028,653.09	748,232,954.74	171.61%
PHILIPPINE POSTAL SAVINGS BANK INC	629,718,969.98	373,508,253.37	168.60%
DEVELOPMENT BANK OF THE PHILIPPINES	9,181,141,688.49	5,466,014,506.37	167.97%
PLANTERS DEVELOPMENT BANK	5,427,443,797.18	3,329,762,667.28	163.00%
OPTIMUM DEVELOPMENT BANK INC	25,969,898.73	16,184,888.53	160.46%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	143,942,509.19	90,230,745.42	159.53%
MARITIME SAVINGS BANK CORPORATION	31,120,976.10	20,891,930.08	148.96%
EAST WEST BANKING CORPORATION	5,919,925,900.00	4,123,947,638.15	143.55%
ANZ BANKING GROUP LTD.	29,843,500.44	23,339,114.85	127.87%
THE HONGKONG & SHANGHAI BANKING CORPORATION	886,123,533.75	729,673,833.25	121.44%
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION	349,681,771.85	299,214,016.73	116.87%
UNITED OVERSEAS BANK PHILIPPINES	770,597,269.90	664,852,621.65	115.90%
BPI DIRECT SAVINGS BANK INC	159,802,614.01	139,044,497.30	114.93%
STANDARD CHARTERED BANK	1,211,997,322.26	1,098,898,477.63	110.29%
CITIBANK SAVINGS INC	2,864,125,015.82	2,668,682,418.84	107.32%
DUNGGANON BANK (A MICROFINANCE THRIFT	17,200,486.03	16,046,296.68	107.19%
LUZON DEVELOPMENT BANK	212,791,152.95	209,405,965.66	101.62%
SAMPAGUITA SAVINGS BANK INC	25,438,631.09	25,352,585.39	100.34%
LEMERY SAVINGS & LOAN BANK, INC.	10,177,581.48	10,169,554.92	100.08%
BANGKOK BANK PUBLIC CO. LTD.	5,114,155.55	5,114,155.55	100.00%
BATAAN SAVINGS AND LOAN BANK	2,565,639.77	2,565,639.77	100.00%
HIYAS BANKING CORPORATION	32,746,038.55	32,746,038.55	100.00%
JP MORGAN CHASE BANK, N.A.	734,885.22	734,885.22	100.00%
MALASIQUI PROGRESSIVE SLB, INC	15,416,574.15	15,416,574.15	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	65,317,160.61	65,317,160.61	100.00%
ALLIED SAVINGS BANK	355,151,094.37	357,228,320.30	99.42%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	45,826,800.12	90.91%
SUN SAVINGS BANK INC	5,110,728.18	5,626,766.85	90.83%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	759,230,533.00	840,644,785.84	90.32%
SILANGAN SAVINGS & LOAN BANK INC	16,112,679.99	19,424,309.99	82.95%
CITY SAVINGS BANK INC	171,595,343.48	238,915,692.77	71.82%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	112,359,183.78	70.25%
CENTURY SAVINGS BANK CORPORATION	28,788,369.93	44,181,100.51	65.16%
PHILIPPINE BANK OF COMMUNICATIONS	75,880,403.95	1,294,790,670.10	5.86%
CARD SME BANK INC A THRIFT BANK	0.00	16,475,214.84	0.00%
CITYSTATE SAVINGS BANK INC	0.00	43,862,623.29	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	101,704,523.03	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	2,738,383.86	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	1,414,730.90	0.00%
NORTHPOINT DEVELOPMENT BANK INC	0.00	6,664,184.61	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	5,366,428.71	0.00%
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	642,113,300.16	0.00	NA
DEUTSCHE BANK AG	496,385,022.21	0.00	NA
ISLA BANK (A THRIFT BANK) INC	32,930,429.26	0.00	NA
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.	708,393,027.00	0.00	NA
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH	675,844,667.60	0.00	NA
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	NA
Grand Total	397,516,602,045.98	128,519,960,622.37	309.30%

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

By this measure, the level of "Classified Loans and other Risky Assets" amounts to 39.55% of the PhP 1.005 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2013.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
June 30, 2013
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)
THE REAL BANK (A THRIFT BANK) INC	6,594,213,304.20	403,147,751.48	1635.68%
BANK OF CHINA LIMITED-MANILA BRANCH	6,805,685,496.00	691,729,423.89	983.87%
VILLAGE BANK INC (A THRIFT BANK)	464,895,661.08	87,144,473.36	533.48%
ILOILO CITY DEVELOPMENT BANK	310,273,532.06	73,862,437.99	420.07%
COMSAVINGS BANK	1,275,879,789.57	335,887,558.21	379.85%
LEGAZPI SAVINGS BANK, INC.	627,281,000.00	194,120,410.23	323.14%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	12,448,548,502.92	296.15%
CITIBANK, N.A.	33,218,279,000.00	12,818,896,927.70	259.14%
UNIVERSITY SAVINGS BANK INC	440,667,822.30	236,579,775.75	186.27%
KOREA EXCHANGE BANK	843,572,088.12	615,452,065.13	137.07%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,165,974.30	132.70%
BANK OF COMMERCE	24,857,960,000.00	18,850,764,599.62	131.87%
BUSINESS AND CONSUMERS BANK (A DB)	109,442,099.86	84,866,201.63	128.96%
PLANTERS DEVELOPMENT BANK	5,427,443,797.18	4,460,571,956.35	121.68%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,554,603,721.31	104.22%
FARMERS SAVINGS & LOAN BANK INC	115,951,877.35	120,342,960.18	96.35%
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.	708,393,027.00	805,678,178.60	87.93%
SECURITY BANK SAVINGS CORPORATION	1,284,028,653.09	1,644,620,558.89	78.07%
MALAYAN BANK SAVINGS AND MORT BANK INC	944,194,502.56	1,231,401,672.29	76.68%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	65,317,160.61	85,693,754.49	76.22%
DUMAGUETE CITY DEV BANK INC	165,608,000.00	223,461,033.96	74.11%
EQUICOM SAVINGS BANK INC	392,606,970.92	543,104,334.15	72.29%
TONG YANG SAVINGS BANK INC	346,887,404.45	496,857,371.46	69.82%
CITIBANK SAVINGS INC	2,864,125,015.82	4,114,074,370.30	69.62%
PHILIPPINE POSTAL SAVINGS BANK INC	629,718,969.98	919,505,927.58	68.48%
WORLD PARTNERS BANK (A THRIFT BANK)	205,874,859.78	309,353,459.99	66.55%
PHILIPPINE SAVINGS BANK	11,986,773,290.06	18,236,150,781.97	65.73%
PHILIPPINE RESOURCES SAVINGS BANKING	913,828,987.75	1,547,784,682.35	59.04%
UNITED OVERSEAS BANK PHILIPPINES	770,597,269.90	1,313,192,957.05	58.68%
BPI GLOBE BANKO INC A SAVINGS BANK	343,112,708.70	601,368,752.92	57.06%
UCPB SAVINGS BANK	1,468,145,007.88	2,594,684,680.50	56.58%
PHILIPPINE NATIONAL BANK	46,458,216,537.13	84,004,145,075.40	55.30%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	143,942,509.19	286,198,061.70	50.29%
PHILIPPINE VETERANS BANK	3,384,501,137.74	6,973,725,217.49	48.53%
CHINA BANK SAVINGS INC	430,117,715.94	919,642,073.51	46.77%
PRIDE STAR DEVELOPMENT BANK INC	34,046,248.59	74,397,380.79	45.76%
MARITIME SAVINGS BANK CORPORATION	31,120,976.10	69,581,122.89	44.73%
UNION BANK OF THE PHILIPPINES	22,397,330,686.68	50,533,622,148.40	44.32%
STANDARD CHARTERED BANK	1,211,997,322.26	2,774,968,941.19	43.68%
LUZON DEVELOPMENT BANK	212,791,152.95	501,008,291.74	42.47%
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH	675,844,667.60	1,624,031,583.41	41.62%
BPI FAMILY SAVINGS BANK INC	8,002,699,308.38	20,094,610,163.90	39.83%
BANK ONE SAVINGS AND TRUST CORP.	206,906,492.63	534,351,269.17	38.72%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	759,230,533.00	2,028,825,527.90	37.42%
LAND BANK OF THE PHILIPPINES	20,942,965,976.08	56,273,884,754.04	37.22%
METRO CEBU PUBLIC SAVINGS BANK	23,611,539.35	64,099,611.67	36.84%
ALLIED SAVINGS BANK	355,151,094.37	1,029,626,610.77	34.49%
DEUTSCHE BANK AG	496,385,022.21	1,447,862,733.62	34.28%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	126,272,694.59	32.99%
PRODUCERS SAVINGS BANK CORPORATION	358,029,943.68	1,094,762,708.86	32.70%
SAMPAGUITA SAVINGS BANK INC	25,438,631.09	78,941,352.97	32.22%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,617,372.17	58,606,037.28	31.77%
SILANGAN SAVINGS & LOAN BANK INC	16,112,679.99	51,238,430.87	31.45%
CORDILLERA SAVINGS BANK INC	35,230,171.27	112,653,108.29	31.27%
FIRST CONSOLIDATED BANK INC (A PDB)	707,211,549.91	2,273,868,281.87	31.10%
EAST WEST BANKING CORPORATION	5,919,925,900.00	20,258,028,616.80	29.22%
LIFE SAVINGS BANK INC	17,917,170.04	66,253,767.56	27.04%
MALASIQUI PROGRESSIVE SLB, INC	15,416,574.15	60,238,932.04	25.59%
DEVELOPMENT BANK OF THE PHILIPPINES	9,181,141,688.49	36,950,526,617.34	24.85%
CHINA BANKING CORPORATION	10,863,742,622.39	44,517,432,468.25	24.40%
ASIA UNITED BANK CORPORATION	4,695,648,613.05	19,939,132,704.03	23.55%
RIZAL COMMERCIAL BANKING CORPORATION	10,382,641,580.40	45,606,071,310.72	22.77%
ROBINSONS BANK CORPORATION	1,355,020,000.00	6,061,486,326.02	22.35%
BDO UNIBANK, INC.	38,354,846,555.95	171,722,608,997.60	22.34%
BANK OF THE PHILIPPINE ISLANDS	22,055,091,689.87	98,795,615,856.91	22.32%
METROPOLITAN BANK & TRUST COMPANY	22,013,188,544.22	112,721,419,440.37	19.53%
PHILIPPINE TRUST COMPANY	3,596,510,491.76	18,421,879,406.35	19.52%
DUNGGANON BANK (A MICROFINANCE THRIFT	17,200,486.03	89,042,850.13	19.32%
HIYAS BANKING CORPORATION	32,746,038.55	171,977,277.24	19.04%
MAYBANK PHILIPPINES, INC.	1,681,368,825.01	9,010,454,249.12	18.66%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	437,402,752.84	18.05%
TOWER DEVELOPMENT BANK	21,070,264.24	120,813,623.14	17.44%
INTERNATIONALE NEDERLANDEN GROEP BK	455,183,734.92	2,648,726,280.98	17.19%
THE HONGKONG & SHANGHAI BANKING CORPORATION	886,123,533.75	5,180,919,192.02	17.10%
BPI DIRECT SAVINGS BANK INC	159,802,614.01	952,277,854.73	16.78%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES	72,205,000.00	445,486,889.99	16.21%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	7,688,104,210.04	15.41%
SECURITY BANK CORPORATION	5,766,000,000.00	38,660,747,119.81	14.91%
LEMERY SAVINGS & LOAN BANK, INC.	10,177,581.48	71,094,084.23	14.32%
BDO PRIVATE BANK, INC.	642,113,300.16	5,284,200,527.12	12.15%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	67,814,851.34	682,273,505.85	9.94%
HSBC SAVINGS BANK(PHILS) INC	218,978,691.68	2,717,679,040.23	8.06%
CITY SAVINGS BANK INC	171,595,343.48	2,511,807,134.43	6.83%
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION	349,681,771.85	6,614,395,412.13	5.29%
ISLA BANK (A THRIFT BANK) INC	32,930,429.26	640,002,124.71	5.15%
SUN SAVINGS BANK INC	5,110,728.18	105,957,260.62	4.82%
PROGRESS SAVINGS AND LOAN BANK INC	3,487,152.19	84,156,596.20	4.14%
OPTIMUM DEVELOPMENT BANK INC	25,969,898.73	722,623,123.19	3.59%
CENTURY SAVINGS BANK CORPORATION	28,788,369.93	857,054,950.39	3.36%
BATAAN SAVINGS AND LOAN BANK	2,565,639.77	76,527,304.60	3.35%
PHILIPPINE BANK OF COMMUNICATIONS	75,880,403.95	4,791,341,160.87	1.58%
ANZ BANKING GROUP LTD.	29,843,500.44	2,492,347,801.95	1.20%
BANK OF AMERICA, N.A.	5,534,000.00	607,196,709.20	0.91%
BANGKOK BANK PUBLIC CO. LTD.	5,114,155.55	1,235,346,677.00	0.41%
JP MORGAN CHASE BANK, N.A.	734,885.22	1,403,804,000.00	0.05%
BDO ELITE SAVINGS BANK INC	0.00	1,546,549,042.92	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	235,488,638.18	0.00%
CITYSTATE SAVINGS BANK INC	0.00	806,301,387.23	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	221,400,839.94	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	546,403,727.42	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	55,697,972.23	0.00%
NORTHPOINT DEVELOPMENT BANK INC	0.00	80,887,073.69	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	79,219,210.42	0.00%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	2,278,627,961.84	0.00%
Grand Total	397,516,602,045.98	1,005,026,570,449.49	39.55%

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 Banking System?

In the aggregate, if Classified Loans amount to 39.55% 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 3.96% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 19.78%.

Individual Banks

A 10% write-off of Classified Loans would wipe out one bank (highlighted in red) and severely impact (by 30% or more) the Total Capital Cushion of five banks (severely affected banks highlighted in yellow).

1. The Real Bank (163.57% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (98.39% reduction in Total Capital Cushion)
3. Village SLA, Inc. (53.35% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (42.01% reduction in Total Capital Cushion)
5. Comsavings Bank (37.99% reduction in Total Capital Cushion
6. Legazpi Savings Bank, Inc. (32.31% 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 six more banks:

1. The Real Bank (327.14% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (196.77% reduction in Total Capital Cushion)
3. Village SLA, Inc. (106.70% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (84.01% reduction in Total Capital Cushion)
5. Comsavings Bank (75.97% reduction in Total Capital Cushion)
6. Legazpi Savings Bank (64.63% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (59.23% reduction in Total Capital Cushion)
8. Citibank N.A. (51.83% reduction in Total Capital Cushion)
9. University Savings Bank (37.25% reduction in Total Capital Cushion)

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

1. The Real Bank (490.70% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (295.16% reduction in Total Capital Cushion)
3. Village SLA, Inc. (160.04% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (126.02% reduction in Total Capital Cushion)
5. Comsavings Bank (113.96% reduction in Total Capital Cushion)
6. Legazpi Savings Bank, Inc. (96.94% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (88.84% reduction in Total Capital Cushion)
8. Citibank N.A. (77.74% reduction in Total Capital Cushion)
9. University Savings Bank (55.88% reduction in Total Capital Cushion)
10. Korea Exchange Bank (41.12% reduction in Total Capital Cushion)
11. Bataan Development Bank (39.81% reduction in Total Capital Cushion)
12. Bank of Commerce (39.56% reduction in Total Capital Cushion)
13. Business and Consumers Bank (38.69% reduction in Total Capital Cushion)
14. Planters Development Bank (36.50% reduction in Total Capital Cushion)
15. RCBC Savings Bank (31.27% reduction in Total Capital Cushion)

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

1. The Real Bank (654.27% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (393.55% reduction in Total Capital Cushion)
3. Village SLA, Inc. (213.39% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (168.03% reduction in Total Capital Cushion)
5. Comsavings Bank (151.94% reduction in Total Capital Cushion)
6. Legazpi Savings Bank, Inc. (129.26% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (123.42% reduction in Total Capital Cushion)
8. Citibank N.A. (103.65% reduction in Total Capital Cushion)
9. University Savings Bank (74.51% reduction in Total Capital Cushion)
10. Korea Exchange Bank (54.83% reduction in Total Capital Cushion)
11. Bataan Development Bank (53.08% reduction in Total Capital Cushion)
12. Bank of Commerce (52.75% reduction in Total Capital Cushion)
13. Business & Consumers Bank (51.58% reduction in Total Capital Cushion)
14. Planters Development Bank (48.67% reduction in Total Capital Cushion)
15. RCBC Savings Bank (41.69% reduction in Total Capital Cushion)
16. Farmers Savings & Loan Bank (38.54% reduction in Total Capital Cushion)
17. Mega International Commercial Bank Co., Ltd. (35.17% reduction in Total Capital Cushion)
18. Security Bank Savings Corporation (31.23% reduction in Total Capital Cushion)
19. Malayan Bank Savings & Mortgage Bank (30.67% reduction in Total Capital Cushion)
20. Opportunity Kauswagan Bank, Inc. (30.49% reduction in Total Capital Cushion)

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

1. The Real Bank (817.84% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (491.93% reduction in Total Capital Cushion)
3. Village SLA, Inc. (266.74% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (210.03% reduction in Total Capital Cushion)
5. Comsavings Bank (189.93% reduction in Total Capital Cushion)
6. Legazpi Savings Bank (161.57% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (148.07% reduction in Total Capital Cushion)
8. Citibank N.A. (129.57% reduction in Total Capital Cushion)
9. University Savings Bank (93.13% reduction in Total Capital Cushion)
10. Korea Exchange Bank (68.53% reduction in Total Capital Cushion)
11. Bataan Development Bank (66.35% reduction in Total Capital Cushion)
12. Bank of Commerce (65.93% reduction in Total Capital Cushion)
13. Business & Consumers Bank (64.48% reduction in Total Capital Cushion)
14. Planters Development Bank (60.84% reduction in Total Capital Cushion)
15. RCBC Savings Bank (52.11% reduction in Total Capital Cushion)
16. Farmers Savings & Loan Bank (48.18% reduction in Total Capital Cushion)
17. Mega International Commercial Bank Co., Ltd. (43.96% reduction in Total Capital Cushion)
18. Security Bank Savings Corporation (39.04% reduction in Total Capital Cushion)
19. Malayan Bank Savings & Mortgage Bank (38.34% reduction in Total Capital Cushion)
20. Opportunity Kauswagan Bank, Inc. (38.11% reduction in Total Capital Cushion)
21. Dumaguete City Development Bank (37.06% reduction in Total Capital Cushion)
22. Equicom Savings Bank Inc. (36.14% reduction in Total Capital Cushion)
23. Tong Yang Savings Bank (34.91% reduction in Total Capital Cushion)
24. Citibank Savings Inc. (34.81% reduction in Total Capital Cushion)
25. Philippine Postal Savings Bank Inc. (34.24% reduction in Total Capital Cushion)
26. World Partners Bank (33.28% reduction in Total Capital Cushion)
27. Philippine Savings Bank (32.87% 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, 2013".  Moreover, their capital can be overstated.  See a previous blog post "Can Philippine Banks Charge their Unbooked Losses Against Retained Earnings? - June 30, 2013".  As such, any reduction in their capital cushion could knock down an already weak bank.

Philippine Banking System
Impact Analysis of Classified Loan Loss on Total Capital Cushion
June 30, 2013
	Classified Loans	Total Capital Cushion	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 %)	(In %)
THE REAL BANK (A THRIFT BANK) INC	6,594,213,304.20	403,147,751.48	1635.68%	163.57%	327.14%	490.70%	654.27%	817.84%
BANK OF CHINA LIMITED-MANILA BRANCH	6,805,685,496.00	691,729,423.89	983.87%	98.39%	196.77%	295.16%	393.55%	491.93%
VILLAGE BANK INC (A THRIFT BANK)	464,895,661.08	87,144,473.36	533.48%	53.35%	106.70%	160.04%	213.39%	266.74%
ILOILO CITY DEVELOPMENT BANK	310,273,532.06	73,862,437.99	420.07%	42.01%	84.01%	126.02%	168.03%	210.03%
COMSAVINGS BANK	1,275,879,789.57	335,887,558.21	379.85%	37.99%	75.97%	113.96%	151.94%	189.93%
LEGAZPI SAVINGS BANK, INC.	627,281,000.00	194,120,410.23	323.14%	32.31%	64.63%	96.94%	129.26%	161.57%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	12,448,548,502.92	296.15%	29.61%	59.23%	88.84%	118.46%	148.07%
CITIBANK, N.A.	33,218,279,000.00	12,818,896,927.70	259.14%	25.91%	51.83%	77.74%	103.65%	129.57%
UNIVERSITY SAVINGS BANK INC	440,667,822.30	236,579,775.75	186.27%	18.63%	37.25%	55.88%	74.51%	93.13%
KOREA EXCHANGE BANK	843,572,088.12	615,452,065.13	137.07%	13.71%	27.41%	41.12%	54.83%	68.53%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,165,974.30	132.70%	13.27%	26.54%	39.81%	53.08%	66.35%
BANK OF COMMERCE	24,857,960,000.00	18,850,764,599.62	131.87%	13.19%	26.37%	39.56%	52.75%	65.93%
BUSINESS AND CONSUMERS BANK (A DB)	109,442,099.86	84,866,201.63	128.96%	12.90%	25.79%	38.69%	51.58%	64.48%
PLANTERS DEVELOPMENT BANK	5,427,443,797.18	4,460,571,956.35	121.68%	12.17%	24.34%	36.50%	48.67%	60.84%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,554,603,721.31	104.22%	10.42%	20.84%	31.27%	41.69%	52.11%
FARMERS SAVINGS & LOAN BANK INC	115,951,877.35	120,342,960.18	96.35%	9.64%	19.27%	28.91%	38.54%	48.18%
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.	708,393,027.00	805,678,178.60	87.93%	8.79%	17.59%	26.38%	35.17%	43.96%
SECURITY BANK SAVINGS CORPORATION	1,284,028,653.09	1,644,620,558.89	78.07%	7.81%	15.61%	23.42%	31.23%	39.04%
MALAYAN BANK SAVINGS AND MORT BANK INC	944,194,502.56	1,231,401,672.29	76.68%	7.67%	15.34%	23.00%	30.67%	38.34%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	65,317,160.61	85,693,754.49	76.22%	7.62%	15.24%	22.87%	30.49%	38.11%
DUMAGUETE CITY DEV BANK INC	165,608,000.00	223,461,033.96	74.11%	7.41%	14.82%	22.23%	29.64%	37.06%
EQUICOM SAVINGS BANK INC	392,606,970.92	543,104,334.15	72.29%	7.23%	14.46%	21.69%	28.92%	36.14%
TONG YANG SAVINGS BANK INC	346,887,404.45	496,857,371.46	69.82%	6.98%	13.96%	20.94%	27.93%	34.91%
CITIBANK SAVINGS INC	2,864,125,015.82	4,114,074,370.30	69.62%	6.96%	13.92%	20.89%	27.85%	34.81%
PHILIPPINE POSTAL SAVINGS BANK INC	629,718,969.98	919,505,927.58	68.48%	6.85%	13.70%	20.55%	27.39%	34.24%
WORLD PARTNERS BANK (A THRIFT BANK)	205,874,859.78	309,353,459.99	66.55%	6.66%	13.31%	19.97%	26.62%	33.28%
PHILIPPINE SAVINGS BANK	11,986,773,290.06	18,236,150,781.97	65.73%	6.57%	13.15%	19.72%	26.29%	32.87%
PHILIPPINE RESOURCES SAVINGS BANKING	913,828,987.75	1,547,784,682.35	59.04%	5.90%	11.81%	17.71%	23.62%	29.52%
UNITED OVERSEAS BANK PHILIPPINES	770,597,269.90	1,313,192,957.05	58.68%	5.87%	11.74%	17.60%	23.47%	29.34%
BPI GLOBE BANKO INC A SAVINGS BANK	343,112,708.70	601,368,752.92	57.06%	5.71%	11.41%	17.12%	22.82%	28.53%
UCPB SAVINGS BANK	1,468,145,007.88	2,594,684,680.50	56.58%	5.66%	11.32%	16.97%	22.63%	28.29%
PHILIPPINE NATIONAL BANK	46,458,216,537.13	84,004,145,075.40	55.30%	5.53%	11.06%	16.59%	22.12%	27.65%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	143,942,509.19	286,198,061.70	50.29%	5.03%	10.06%	15.09%	20.12%	25.15%
PHILIPPINE VETERANS BANK	3,384,501,137.74	6,973,725,217.49	48.53%	4.85%	9.71%	14.56%	19.41%	24.27%
CHINA BANK SAVINGS INC	430,117,715.94	919,642,073.51	46.77%	4.68%	9.35%	14.03%	18.71%	23.39%
PRIDE STAR DEVELOPMENT BANK INC	34,046,248.59	74,397,380.79	45.76%	4.58%	9.15%	13.73%	18.31%	22.88%
MARITIME SAVINGS BANK CORPORATION	31,120,976.10	69,581,122.89	44.73%	4.47%	8.95%	13.42%	17.89%	22.36%
UNION BANK OF THE PHILIPPINES	22,397,330,686.68	50,533,622,148.40	44.32%	4.43%	8.86%	13.30%	17.73%	22.16%
STANDARD CHARTERED BANK	1,211,997,322.26	2,774,968,941.19	43.68%	4.37%	8.74%	13.10%	17.47%	21.84%
LUZON DEVELOPMENT BANK	212,791,152.95	501,008,291.74	42.47%	4.25%	8.49%	12.74%	16.99%	21.24%
MIZUHO CORPORATE BANK, LTD. - MANILA BRANCH	675,844,667.60	1,624,031,583.41	41.62%	4.16%	8.32%	12.48%	16.65%	20.81%
BPI FAMILY SAVINGS BANK INC	8,002,699,308.38	20,094,610,163.90	39.83%	3.98%	7.97%	11.95%	15.93%	19.91%
BANK ONE SAVINGS AND TRUST CORP.	206,906,492.63	534,351,269.17	38.72%	3.87%	7.74%	11.62%	15.49%	19.36%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	759,230,533.00	2,028,825,527.90	37.42%	3.74%	7.48%	11.23%	14.97%	18.71%
LAND BANK OF THE PHILIPPINES	20,942,965,976.08	56,273,884,754.04	37.22%	3.72%	7.44%	11.16%	14.89%	18.61%
METRO CEBU PUBLIC SAVINGS BANK	23,611,539.35	64,099,611.67	36.84%	3.68%	7.37%	11.05%	14.73%	18.42%
ALLIED SAVINGS BANK	355,151,094.37	1,029,626,610.77	34.49%	3.45%	6.90%	10.35%	13.80%	17.25%
DEUTSCHE BANK AG	496,385,022.21	1,447,862,733.62	34.28%	3.43%	6.86%	10.29%	13.71%	17.14%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	126,272,694.59	32.99%	3.30%	6.60%	9.90%	13.20%	16.50%
PRODUCERS SAVINGS BANK CORPORATION	358,029,943.68	1,094,762,708.86	32.70%	3.27%	6.54%	9.81%	13.08%	16.35%
SAMPAGUITA SAVINGS BANK INC	25,438,631.09	78,941,352.97	32.22%	3.22%	6.44%	9.67%	12.89%	16.11%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,617,372.17	58,606,037.28	31.77%	3.18%	6.35%	9.53%	12.71%	15.88%
SILANGAN SAVINGS & LOAN BANK INC	16,112,679.99	51,238,430.87	31.45%	3.14%	6.29%	9.43%	12.58%	15.72%
CORDILLERA SAVINGS BANK INC	35,230,171.27	112,653,108.29	31.27%	3.13%	6.25%	9.38%	12.51%	15.64%
FIRST CONSOLIDATED BANK INC (A PDB)	707,211,549.91	2,273,868,281.87	31.10%	3.11%	6.22%	9.33%	12.44%	15.55%
EAST WEST BANKING CORPORATION	5,919,925,900.00	20,258,028,616.80	29.22%	2.92%	5.84%	8.77%	11.69%	14.61%
LIFE SAVINGS BANK INC	17,917,170.04	66,253,767.56	27.04%	2.70%	5.41%	8.11%	10.82%	13.52%
MALASIQUI PROGRESSIVE SLB, INC	15,416,574.15	60,238,932.04	25.59%	2.56%	5.12%	7.68%	10.24%	12.80%
DEVELOPMENT BANK OF THE PHILIPPINES	9,181,141,688.49	36,950,526,617.34	24.85%	2.48%	4.97%	7.45%	9.94%	12.42%
CHINA BANKING CORPORATION	10,863,742,622.39	44,517,432,468.25	24.40%	2.44%	4.88%	7.32%	9.76%	12.20%
ASIA UNITED BANK CORPORATION	4,695,648,613.05	19,939,132,704.03	23.55%	2.35%	4.71%	7.06%	9.42%	11.77%
RIZAL COMMERCIAL BANKING CORPORATION	10,382,641,580.40	45,606,071,310.72	22.77%	2.28%	4.55%	6.83%	9.11%	11.38%
ROBINSONS BANK CORPORATION	1,355,020,000.00	6,061,486,326.02	22.35%	2.24%	4.47%	6.71%	8.94%	11.18%
BDO UNIBANK, INC.	38,354,846,555.95	171,722,608,997.60	22.34%	2.23%	4.47%	6.70%	8.93%	11.17%
BANK OF THE PHILIPPINE ISLANDS	22,055,091,689.87	98,795,615,856.91	22.32%	2.23%	4.46%	6.70%	8.93%	11.16%
METROPOLITAN BANK & TRUST COMPANY	22,013,188,544.22	112,721,419,440.37	19.53%	1.95%	3.91%	5.86%	7.81%	9.76%
PHILIPPINE TRUST COMPANY	3,596,510,491.76	18,421,879,406.35	19.52%	1.95%	3.90%	5.86%	7.81%	9.76%
DUNGGANON BANK (A MICROFINANCE THRIFT	17,200,486.03	89,042,850.13	19.32%	1.93%	3.86%	5.80%	7.73%	9.66%
HIYAS BANKING CORPORATION	32,746,038.55	171,977,277.24	19.04%	1.90%	3.81%	5.71%	7.62%	9.52%
MAYBANK PHILIPPINES, INC.	1,681,368,825.01	9,010,454,249.12	18.66%	1.87%	3.73%	5.60%	7.46%	9.33%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	437,402,752.84	18.05%	1.80%	3.61%	5.41%	7.22%	9.02%
TOWER DEVELOPMENT BANK	21,070,264.24	120,813,623.14	17.44%	1.74%	3.49%	5.23%	6.98%	8.72%
INTERNATIONALE NEDERLANDEN GROEP BK	455,183,734.92	2,648,726,280.98	17.19%	1.72%	3.44%	5.16%	6.87%	8.59%
THE HONGKONG & SHANGHAI BANKING CORPORATION	886,123,533.75	5,180,919,192.02	17.10%	1.71%	3.42%	5.13%	6.84%	8.55%
BPI DIRECT SAVINGS BANK INC	159,802,614.01	952,277,854.73	16.78%	1.68%	3.36%	5.03%	6.71%	8.39%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILIPPINES	72,205,000.00	445,486,889.99	16.21%	1.62%	3.24%	4.86%	6.48%	8.10%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	7,688,104,210.04	15.41%	1.54%	3.08%	4.62%	6.16%	7.71%
SECURITY BANK CORPORATION	5,766,000,000.00	38,660,747,119.81	14.91%	1.49%	2.98%	4.47%	5.97%	7.46%
LEMERY SAVINGS & LOAN BANK, INC.	10,177,581.48	71,094,084.23	14.32%	1.43%	2.86%	4.29%	5.73%	7.16%
BDO PRIVATE BANK, INC.	642,113,300.16	5,284,200,527.12	12.15%	1.22%	2.43%	3.65%	4.86%	6.08%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	67,814,851.34	682,273,505.85	9.94%	0.99%	1.99%	2.98%	3.98%	4.97%
HSBC SAVINGS BANK(PHILS) INC	218,978,691.68	2,717,679,040.23	8.06%	0.81%	1.61%	2.42%	3.22%	4.03%
CITY SAVINGS BANK INC	171,595,343.48	2,511,807,134.43	6.83%	0.68%	1.37%	2.05%	2.73%	3.42%
CHINATRUST (PHILS.) COMMERCIAL BANK CORPORATION	349,681,771.85	6,614,395,412.13	5.29%	0.53%	1.06%	1.59%	2.11%	2.64%
ISLA BANK (A THRIFT BANK) INC	32,930,429.26	640,002,124.71	5.15%	0.51%	1.03%	1.54%	2.06%	2.57%
SUN SAVINGS BANK INC	5,110,728.18	105,957,260.62	4.82%	0.48%	0.96%	1.45%	1.93%	2.41%
PROGRESS SAVINGS AND LOAN BANK INC	3,487,152.19	84,156,596.20	4.14%	0.41%	0.83%	1.24%	1.66%	2.07%
OPTIMUM DEVELOPMENT BANK INC	25,969,898.73	722,623,123.19	3.59%	0.36%	0.72%	1.08%	1.44%	1.80%
CENTURY SAVINGS BANK CORPORATION	28,788,369.93	857,054,950.39	3.36%	0.34%	0.67%	1.01%	1.34%	1.68%
BATAAN SAVINGS AND LOAN BANK	2,565,639.77	76,527,304.60	3.35%	0.34%	0.67%	1.01%	1.34%	1.68%
PHILIPPINE BANK OF COMMUNICATIONS	75,880,403.95	4,791,341,160.87	1.58%	0.16%	0.32%	0.48%	0.63%	0.79%
ANZ BANKING GROUP LTD.	29,843,500.44	2,492,347,801.95	1.20%	0.12%	0.24%	0.36%	0.48%	0.60%
BANK OF AMERICA, N.A.	5,534,000.00	607,196,709.20	0.91%	0.09%	0.18%	0.27%	0.36%	0.46%
BANGKOK BANK PUBLIC CO. LTD.	5,114,155.55	1,235,346,677.00	0.41%	0.04%	0.08%	0.12%	0.17%	0.21%
JP MORGAN CHASE BANK, N.A.	734,885.22	1,403,804,000.00	0.05%	0.01%	0.01%	0.02%	0.02%	0.03%
BDO ELITE SAVINGS BANK INC	0.00	1,546,549,042.92	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	235,488,638.18	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CITYSTATE SAVINGS BANK INC	0.00	806,301,387.23	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	221,400,839.94	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	546,403,727.42	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	55,697,972.23	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEVELOPMENT BANK INC	0.00	80,887,073.69	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	79,219,210.42	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	2,278,627,961.84	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Grand Total	397,516,602,045.98	1,005,026,570,449.49	39.55%	3.96%	7.91%	11.87%	15.82%	19.78%