Bank of Commerce Ranks First in NPLs as of December 31, 2012

DOSRI.  Short for DOSRI Loans and Transactions.  Otherwise known as loans to Directors, Officers, Stockholders, and Related Interests (DOSRI).  Regulators and Legislators have established laws and regulations that limit DOSRI loans.  The General Banking Act and BSP regulations limit the amount of the loans granted by a bank to a single borrower to 25% of equity.  The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the amount of the deposit and book value of the investment in the bank.  In the aggregate, loans to DOSRI generally should not exceed the total equity or 15% of the total loan portfolio of the bank, whichever is lower.

In the Philippine Commercial Banking Industry, DOSRI Loans stood at Php 206.409 billion, or 5.86% of a Total Loan Portfolio - Net (TLP-Net) of Php 3.522 trillion as of December 31, 2012.  This is down significantly from the 6.24% ratio posted by the Philippine Commercial Banking Industry last September 30, 2012.

Philippine Universal and Commercial Banking System
DOSRI as % of TLP-Net
December 31, 2012
	DOSRI	TLP-Net	DOSRI/TLP-Net
Bank	(In Php)	(In PHP)	(In %)
Development Bank of the Philippines	38,457,150,343.08	128,772,711,614.66	29.86%
Land Bank of the Philippines	67,009,615,666.63	299,225,823,204.73	22.39%
Robinsons Bank Corporation	2,246,360,687.91	16,452,767,136.72	13.65%
China Banking Corporation	17,091,391,768.55	181,887,207,083.19	9.40%
Banco De Oro Unibank	49,659,360,169.90	728,156,381,212.78	6.82%
Bank of America N.A.	35,934,572.00	749,723,933.15	4.79%
Rizal Commercial Banking Corporation	4,835,250,192.92	147,329,450,969.92	3.28%
Bank of Commerce	1,107,003,592.23	36,769,369,606.91	3.01%
Metropolitan Bank & Trust Company	9,602,364,369.45	400,981,556,301.81	2.39%
Allied Banking Corporation	2,065,641,786.32	87,096,781,839.99	2.37%
East West Banking Corporation	1,596,916,454.37	67,732,064,570.32	2.36%
Maybank Philippines Inc.	586,308,982.12	30,882,628,595.31	1.90%
Philippine National Bank	2,650,525,949.79	152,418,593,470.47	1.74%
Bank of the Philippine Islands	6,568,569,966.07	396,033,723,582.28	1.66%
HongKong & Shanghai Banking Corporation	490,529,687.43	51,977,071,130.39	0.94%
Union Bank of the Philippines	900,306,346.03	122,387,865,782.70	0.74%
Asia United Bank Corporation	204,961,601.27	29,552,908,621.30	0.69%
Citibank N.A.	569,835,227.57	121,704,058,148.84	0.47%
United Coconut Planters Bank	217,703,964.68	71,615,969,952.05	0.30%
Security Bank Corporation	303,122,605.49	129,432,200,203.11	0.23%
Philippine Veterans Bank	50,715,750.28	23,363,946,418.20	0.22%
Chinatrust (Philippines) Commercial Banking Corporation	20,133,860.86	12,190,193,218.63	0.17%
Philippine Bank of Communications	19,642,110.54	12,664,576,855.72	0.16%
ANZ Banking Group Ltd	37,492,078.40	34,061,462,038.74	0.11%
JP Morgan Chase National Bank Association	50,769,866.90	56,067,501,893.56	0.09%
BDO Private Bank, Inc.	2,000,000.00	2,499,792,442.93	0.08%
Standard Chartered Bank	18,410,516.97	28,706,243,680.33	0.06%
The Bank of Tokyo - Mitsubishi UFJ Ltd	10,700,618.57	23,982,181,349.31	0.04%
Al-Amanah Islamic Bank of the Philippines	0.00	129,374,029.77	0.00%
Bangkok Bank Public Co. Ltd	0.00	6,991,131,081.50	0.00%
Bank of China Limited - Manila Branch	0.00	5,701,716,055.81	0.00%
Deutsche Bank AG	0.00	25,618,847,240.32	0.00%
Internationale Nederlanden Groep BK	0.00	22,659,645,881.53	0.00%
Korea Exchange Bank	0.00	5,259,523,733.26	0.00%
Mega International Commercial Bank Company Limited	0.00	6,965,834,428.31	0.00%
Mizuho Corporate Bank Ltd. - Manila Branch	0.00	19,928,726,602.66	0.00%
Philippine Trust Company	0.00	34,346,450,279.36	0.00%
Grand Total	206,408,718,736.33	3,522,296,004,190.57	5.86%

Source: www.bsp.gov.ph

Of the 37 banks in this list, nine banks had no DOSRI loans as of December 31, 2012.  Of the 28 banks that reported DOSRI loans, the ratio of DOSRI Loans to Total Loan Portfolio - Net as of December 31, 2012 was slightly lower (6.08%) than the 6.49% ratio reported for all commercial banks with DOSRI loans as of September 30, 2012.  The banks with the highest ratio of DOSRI Loans to TLP-Net were government banks:

1. Development Bank of the Philippines (29.86% of TLP-Net)
2. Land Bank of the Philippines (22.39% of TLP-Net)

DOSRI rules indicate that DOSRI Loans, in the aggregate, should not exceed the total equity of the bank.  Therefore banks with significantly high DOSRI Loans as a percentage of Total Stockholders Equity (SE) may be approaching DOSRI Limits.  In this matter, two government banks again stand out:

1. Development Bank of the Philippines (91.00% of SE)
2. Land Bank of the Philippines (89.82% of SE)

A third bank, China Banking Corporation, has DOSRI Loans equivalent to 43.88% of SE as of December 31, 2012.  Robinsons Bank Corporation ranks fourth, with DOSRI Loans equivalent to 38.59% of SE as December 31, 2012.  Banco de Oro Unibank, which has DOSRI Loans equivalent to 32.02% of SE as of December 31, 2012, is down significantly from 35.13% as of September 30, 2012.  On an overall basis, DOSRI Loans comprised 24.35% of Stockholders Equity as of December 31, 2012, down from 25.21% of Stockholders Equity as of September  30, 2012.

Philippine Universal and Commercial Banking System
DOSRI as % of Stockholders Equity
December 31, 2012
	DOSRI	SE	DOSRI/SE
Bank	(In Php)	(In PHP)	(In %)
Development Bank of the Philippines	38,457,150,343.08	42,258,443,278.49	91.00%
Land Bank of the Philippines	67,009,615,666.63	74,604,257,815.40	89.82%
China Banking Corporation	17,091,391,768.55	38,947,137,997.92	43.88%
Robinsons Bank Corporation	2,246,360,687.91	5,820,635,601.13	38.59%
Banco De Oro Unibank	49,659,360,169.90	155,069,452,971.95	32.02%
Rizal Commercial Banking Corporation	4,835,250,192.92	42,096,014,872.58	11.49%
Maybank Philippines Inc.	586,308,982.12	5,886,136,977.37	9.96%
Allied Banking Corporation	2,065,641,786.32	21,307,175,097.24	9.69%
East West Banking Corporation	1,596,916,454.37	16,938,383,492.18	9.43%
Metropolitan Bank & Trust Company	9,602,364,369.45	114,682,415,970.32	8.37%
Philippine National Bank	2,650,525,949.79	32,243,410,311.17	8.22%
HongKong & Shanghai Banking Corporation	490,529,687.43	6,141,851,796.63	7.99%
Bank of the Philippine Islands	6,568,569,966.07	92,347,246,015.92	7.11%
Citibank N.A.	569,835,227.57	8,038,267,923.48	7.09%
Bank of Commerce	1,107,003,592.23	17,938,069,569.84	6.17%
Bank of America N.A.	35,934,572.00	596,946,705.20	6.02%
JP Morgan Chase National Bank Association	50,769,866.90	1,642,109,496.65	3.09%
Union Bank of the Philippines	900,306,346.03	44,579,598,110.83	2.02%
Asia United Bank Corporation	204,961,601.27	11,517,775,066.30	1.78%
ANZ Banking Group Ltd	37,492,078.40	2,347,138,920.44	1.60%
United Coconut Planters Bank	217,703,964.68	20,242,922,858.72	1.08%
Security Bank Corporation	303,122,605.49	36,745,605,061.62	0.82%
Standard Chartered Bank	18,410,516.97	2,277,966,955.65	0.81%
Philippine Veterans Bank	50,715,750.28	7,110,732,960.79	0.71%
The Bank of Tokyo - Mitsubishi UFJ Ltd	10,700,618.57	1,942,812,476.19	0.55%
Philippine Bank of Communications	19,642,110.54	5,775,710,961.51	0.34%
Chinatrust (Philippines) Commercial Banking Corporation	20,133,860.86	6,304,196,679.74	0.32%
BDO Private Bank, Inc.	2,000,000.00	5,184,586,582.92	0.04%
Al-Amanah Islamic Bank of the Philippines	0.00	460,318,999.12	0.00%
Bangkok Bank Public Co. Ltd	0.00	1,183,788,778.87	0.00%
Bank of China Limited - Manila Branch	0.00	558,019,357.44	0.00%
Deutsche Bank AG	0.00	2,164,092,348.17	0.00%
Internationale Nederlanden Groep BK	0.00	2,916,417,050.90	0.00%
Korea Exchange Bank	0.00	641,341,686.61	0.00%
Mega International Commercial Bank Company Limited	0.00	785,231,548.35	0.00%
Mizuho Corporate Bank Ltd. - Manila Branch	0.00	1,283,451,561.81	0.00%
Philippine Trust Company	0.00	17,176,795,759.77	0.00%
Grand Total	206,408,718,736.33	847,756,459,619.22	24.35%

Source: www.bsp.gov.ph

Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “on commercial, arm's length terms, i.e., substantially on the same terms as loans to other individuals and businesses of comparable risks” (See RCBC's Consolidated Financial Statements as of December 31, 2010), loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:

1. Written off as soon as possible;
2. Refinanced or Restructured to become current; or are
3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 

As a result, only Php 0.544billion of DOSRI Loans or 0.26% are past due out of a Total DOSRI Loan Portfolio of Php 206.409 billion as of December 31, 2012, basically flat since September 30, 2012.  

Philippine Universal and Commercial Banking System
DOSRI Past Due as % of DOSRI
December 31, 2012
	DOSRI Past Due	DOSRI	DOSRI Past Due/DOSRI
Bank	(In PHP)	(In PHP)	(In %)
Rizal Commercial Banking Corporation	525,389,845.91	4,835,250,192.92	10.87%
Asia United Bank Corporation	10,698,764.51	204,961,601.27	5.22%
United Coconut Planters Bank	3,472,529.28	217,703,964.68	1.60%
Standard Chartered Bank	45,625.99	18,410,516.97	0.25%
Philippine Bank of Communications	34,589.50	19,642,110.54	0.18%
Chinatrust (Philippines) Commercial Banking Corporation	12,710.84	20,133,860.86	0.06%
Bank of the Philippine Islands	4,012,564.43	6,568,569,966.07	0.06%
Citibank N.A.	43,181.02	569,835,227.57	0.01%
Allied Banking Corporation	0.00	2,065,641,786.32	0.00%
ANZ Banking Group Ltd	0.00	37,492,078.40	0.00%
Banco De Oro Unibank	0.00	49,659,360,169.90	0.00%
Bank of America N.A.	0.00	35,934,572.00	0.00%
Bank of Commerce	0.00	1,107,003,592.23	0.00%
BDO Private Bank, Inc.	0.00	2,000,000.00	0.00%
China Banking Corporation	0.00	17,091,391,768.55	0.00%
Development Bank of the Philippines	0.00	38,457,150,343.08	0.00%
East West Banking Corporation	0.00	1,596,916,454.37	0.00%
HongKong & Shanghai Banking Corporation	0.00	490,529,687.43	0.00%
JP Morgan Chase National Bank Association	0.00	50,769,866.90	0.00%
Land Bank of the Philippines	0.00	67,009,615,666.63	0.00%
Maybank Philippines Inc.	0.00	586,308,982.12	0.00%
Metropolitan Bank & Trust Company	0.00	9,602,364,369.45	0.00%
Philippine National Bank	0.00	2,650,525,949.79	0.00%
Philippine Veterans Bank	0.00	50,715,750.28	0.00%
Robinsons Bank Corporation	0.00	2,246,360,687.91	0.00%
Security Bank Corporation	0.00	303,122,605.49	0.00%
The Bank of Tokyo - Mitsubishi UFJ Ltd	0.00	10,700,618.57	0.00%
Union Bank of the Philippines	0.00	900,306,346.03	0.00%
Al-Amanah Islamic Bank of the Philippines	0.00	0.00	NA
Bangkok Bank Public Co. Ltd	0.00	0.00	NA
Bank of China Limited - Manila Branch	0.00	0.00	NA
Deutsche Bank AG	0.00	0.00	NA
Internationale Nederlanden Groep BK	0.00	0.00	NA
Korea Exchange Bank	0.00	0.00	NA
Mega International Commercial Bank Company Limited	0.00	0.00	NA
Mizuho Corporate Bank Ltd. - Manila Branch	0.00	0.00	NA
Philippine Trust Company	0.00	0.00	NA
Grand Total	543,709,811.48	206,408,718,736.33	0.26%

Source: www.bsp.gov.ph

Given all the measures banks can take to prevent a DOSRI Loan from falling past due, it is not surprising to find past due rates of DOSRI Loans significantly below the NPL ratios of their Total Loan Portfolios.  What is generally surprising is to find DOSRI Loans that fall past due in significantly higher proportions than the banks NPL ratio on their Total Loan Portfolios.  Only two banks fall into this category:

1. Rizal Commercial Banking Corporation (DOSRI Past Due Ratio of 10.87% versus an NPL Ratio of 1.00%)
2. Asia United Bank Corporation (DOSRI Past Due Ratio of 5.22% versus an NPL Ratio of 1.83%)

The NPL Ratio of the Philippine Commercial Banking System has increased slightly to 2.45% of Total Loan Portfolio-Net as of December 31, 2012 from 2.22% of Total Loan Portfolio - Net as of September 30, 2012.

Philippine Universal and Commercial Banking System
NPL as % of TLP-Net
December 31, 2012
	NPL	TLP-Net	NPL/TLP
Bank	(In Php)	(In Php)	(In %)
Bank of Commerce	4,239,823,353.38	36,769,369,606.91	11.53%
United Coconut Planters Bank	4,444,961,937.02	71,615,969,952.05	6.21%
East West Banking Corporation	3,405,265,847.54	67,732,064,570.32	5.03%
Philippine Veterans Bank	1,121,158,544.06	23,363,946,418.20	4.80%
Philippine National Bank	6,464,605,207.08	152,418,593,470.47	4.24%
Allied Banking Corporation	3,565,542,331.66	87,096,781,839.99	4.09%
Standard Chartered Bank	1,160,321,541.24	28,706,243,680.33	4.04%
Development Bank of the Philippines	4,923,830,182.35	128,772,711,614.66	3.82%
Robinsons Bank Corporation	602,948,268.54	16,452,767,136.72	3.66%
Philippine Trust Company	1,184,880,873.77	34,346,450,279.36	3.45%
Chinatrust (Philippines) Commercial Banking Corporation	328,443,082.62	12,190,193,218.63	2.69%
Maybank Philippines Inc.	820,678,540.06	30,882,628,595.31	2.66%
Union Bank of the Philippines	3,185,840,700.87	122,387,865,782.70	2.60%
Land Bank of the Philippines	7,157,063,430.01	299,225,823,204.73	2.39%
China Banking Corporation	3,839,277,672.27	181,887,207,083.19	2.11%
Asia United Bank Corporation	540,846,877.14	29,552,908,621.30	1.83%
HongKong & Shanghai Banking Corporation	817,921,062.56	51,977,071,130.39	1.57%
Banco De Oro Unibank	11,275,211,317.03	728,156,381,212.78	1.55%
Citibank N.A.	1,474,237,283.72	121,704,058,148.84	1.21%
Bank of the Philippine Islands	4,604,037,769.69	396,033,723,582.28	1.16%
Metropolitan Bank & Trust Company	4,192,899,043.46	400,981,556,301.81	1.05%
Philippine Bank of Communications	131,371,192.79	12,664,576,855.72	1.04%
Rizal Commercial Banking Corporation	1,471,524,811.35	147,329,450,969.92	1.00%
Al-Amanah Islamic Bank of the Philippines	1,156,048.97	129,374,029.77	0.89%
Security Bank Corporation	710,219,279.16	129,432,200,203.11	0.55%
Korea Exchange Bank	24,799,820.20	5,259,523,733.26	0.47%
Bank of China Limited - Manila Branch	8,660,895.91	5,701,716,055.81	0.15%
Bangkok Bank Public Co. Ltd	5,384,155.55	6,991,131,081.50	0.08%
ANZ Banking Group Ltd	23,339,114.85	34,061,462,038.74	0.07%
JP Morgan Chase National Bank Association	744,584.10	56,067,501,893.56	0.00%
Internationale Nederlanden Groep BK	84.10	22,659,645,881.53	0.00%
Bank of America N.A.	0.00	749,723,933.15	0.00%
BDO Private Bank, Inc.	0.00	2,499,792,442.93	0.00%
Deutsche Bank AG	0.00	25,618,847,240.32	0.00%
Mega International Commercial Bank Company Limited	0.00	6,965,834,428.31	0.00%
Mizuho Corporate Bank Ltd. - Manila Branch	0.00	19,928,726,602.66	0.00%
The Bank of Tokyo - Mitsubishi UFJ Ltd	0.00	23,982,181,349.31	0.00%
Grand Total	71,726,994,853.05	3,522,296,004,190.57	2.04%

Source: www.bsp.gov.ph

However, one bank has a significantly high NPL as a percentage of its stockholders equity as of December 30, 2012.  This bank is Standard Chartered Bank.  Althought its NPL/SE Ratio of 50.94% as of December 31, 2012 is down significantly from the NPL/SE Ratio of 72.18% it posted as of September 30, 2012, this ratio is extremely elevated - more than double the ratio of the bank with the next highest ratio.

Other banks with NPLs that are more than 20% of their stockholders equity are:

1. Bank of Commerce (NPL/SE Ratio of 23.64%)
2. United Coconut Planters Bank (NPL/SE Ratio of 21.96%)
3. East West Banking Corporation (NPL/SE Ratio of 20.10%)
4. Philippine National Bank (NPL/SE Ratio of 20.05%)

Again, any further deterioration in the value of these banks NPLs may lead to a significant reduction of the bank's capital, particularly if the bank has not adequately reserved capital for future losses on these NPLs.  All of the banks listed above, with the exception of East West Banking Corporation are listed as distressed.

See a previous blog post: "Philippine U/KBs Improve in the 4th Qtr. of 2012" and are highlighted in yellow.

Philippine Universal and Commercial Banking System
NPL as % of SE
December 31, 2012
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
Standard Chartered Bank	1,160,321,541.24	2,277,966,955.65	50.94%
Bank of Commerce	4,239,823,353.38	17,938,069,569.84	23.64%
United Coconut Planters Bank	4,444,961,937.02	20,242,922,858.72	21.96%
East West Banking Corporation	3,405,265,847.54	16,938,383,492.18	20.10%
Philippine National Bank	6,464,605,207.08	32,243,410,311.17	20.05%
Citibank N.A.	1,474,237,283.72	8,038,267,923.48	18.34%
Allied Banking Corporation	3,565,542,331.66	21,307,175,097.24	16.73%
Philippine Veterans Bank	1,121,158,544.06	7,110,732,960.79	15.77%
Maybank Philippines Inc.	820,678,540.06	5,886,136,977.37	13.94%
HongKong & Shanghai Banking Corporation	817,921,062.56	6,141,851,796.63	13.32%
Development Bank of the Philippines	4,923,830,182.35	42,258,443,278.49	11.65%
Robinsons Bank Corporation	602,948,268.54	5,820,635,601.13	10.36%
China Banking Corporation	3,839,277,672.27	38,947,137,997.92	9.86%
Land Bank of the Philippines	7,157,063,430.01	74,604,257,815.40	9.59%
Banco De Oro Unibank	11,275,211,317.03	155,069,452,971.95	7.27%
Union Bank of the Philippines	3,185,840,700.87	44,579,598,110.83	7.15%
Philippine Trust Company	1,184,880,873.77	17,176,795,759.77	6.90%
Chinatrust (Philippines) Commercial Banking Corporation	328,443,082.62	6,304,196,679.74	5.21%
Bank of the Philippine Islands	4,604,037,769.69	92,347,246,015.92	4.99%
Asia United Bank Corporation	540,846,877.14	11,517,775,066.30	4.70%
Korea Exchange Bank	24,799,820.20	641,341,686.61	3.87%
Metropolitan Bank & Trust Company	4,192,899,043.46	114,682,415,970.32	3.66%
Rizal Commercial Banking Corporation	1,471,524,811.35	42,096,014,872.58	3.50%
Philippine Bank of Communications	131,371,192.79	5,775,710,961.51	2.27%
Security Bank Corporation	710,219,279.16	36,745,605,061.62	1.93%
Bank of China Limited - Manila Branch	8,660,895.91	558,019,357.44	1.55%
ANZ Banking Group Ltd	23,339,114.85	2,347,138,920.44	0.99%
Bangkok Bank Public Co. Ltd	5,384,155.55	1,183,788,778.87	0.45%
Al-Amanah Islamic Bank of the Philippines	1,156,048.97	460,318,999.12	0.25%
JP Morgan Chase National Bank Association	744,584.10	1,642,109,496.65	0.05%
Internationale Nederlanden Groep BK	84.10	2,916,417,050.90	0.00%
Bank of America N.A.	0.00	596,946,705.20	0.00%
BDO Private Bank, Inc.	0.00	5,184,586,582.92	0.00%
Deutsche Bank AG	0.00	2,164,092,348.17	0.00%
Mega International Commercial Bank Company Limited	0.00	785,231,548.35	0.00%
Mizuho Corporate Bank Ltd. - Manila Branch	0.00	1,283,451,561.81	0.00%
The Bank of Tokyo - Mitsubishi UFJ Ltd	0.00	1,942,812,476.19	0.00%
Grand Total	71,726,994,853.05	847,756,459,619.22	8.46%

Source: www.bsp.gov.ph

The Top Distressed Philippine Banks as of December 31, 2012

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 (highlighted in yellow).  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, 2012.  It updates the three previous blog posts:"The Top Distressed Philippine Banks as of September 30, 2012", "The Top Distressed Philippine Banks as of June 30, 2012" and "The Top Distressed Philippine Banks as of March 31, 2012".

To see where your bank stands relative to these banks, please check the following previous blog posts:  "Philippine Thrift Banks Deteriorate in the 4th Quarter of 2012", "Philippine U/KBs Improve in the 4th Qtr. of 2012", "Philippine Thrift Banks Deteriorate in the 3rd Quarter of 2012" and  "Philippine U/KBs Show Some Deterioration in the 2nd Qtr. of 2012" and "Philippine Thrift Banks Continue to Improve in the 2nd Quarter of 2012".

Top Distressed Philippine Banks
By Total Distressed Assets/ Total Capital Cushion
December 31, 2012
In Php
	December 31, 2012
Bank	Type of Bank	Total Distressed Assets (In PHP)	Total Capital Cushion (In PHP)	Distressed Assets/ Total Capital Cushion (In %)
Philippine Bank of Communications	U/KB	5,098,149,508.75	396,965,737.97	1284.28%
The Real Bank (A Thrift Bank) Inc.	Thrift	9,104,085,280.75	819,806,739.79	1110.52%
Bank of China Limited - Manila Branch	U/KB	6,098,052,440.55	684,298,180.30	891.14%
Inter-Asia Development Bank	Thrift	98,986,652.72	12,527,419.93	790.16%
United Coconut Planters Bank	U/KB	63,266,790,792.27	9,201,765,912.89	687.55%
Village SLA, Inc.	Thrift	482,971,670.79	85,106,104.94	567.49%
Comsavings Bank	Thrift	2,152,959,280.94	394,231,674.83	546.12%
Iloilo City Development Bank	Thrift	312,348,064.40	66,532,072.05	469.47%
The Palawan Bank Inc.	Thrift	88,021,072.90	25,911,081.73	339.70%
Planters Development Bank	Thrift	12,948,915,584.01	4,476,918,961.89	289.24%
University Savings Bank	Thrift	661,143,467.69	228,612,951.12	289.20%
Legazpi Savings Bank Inc.	Thrift	922,546,339.95	361,050,520.81	255.52%
China Bank Savings	Thrift	2,193,496,131.15	911,544,737.69	240.64%
Deutsche Bank AG	U/KB	3,279,741,854.26	1,465,660,409.12	223.77%
Bataan Development Bank	Thrift	173,086,398.77	77,754,277.41	222.61%
Citibank N.A.	U/KB	24,587,798,465.66	12,957,591,045.32	189.76%
Standard Chartered Bank	U/KB	5,281,945,731.70	2,834,198,027.55	186.36%
RCBC Savings Bank	Thrift	13,175,369,165.79	7,182,065,835.47	183.45%
Bank of Commerce	U/KB	32,487,156,994.44	19,687,666,611.58	165.01%
Farmers Savings & Loan Bank	Thrift	194,814,222.76	120,105,189.66	162.20%
Philippine Resources Savings Banking Corporation	Thrift	1,964,754,570.68	1,280,833,710.22	153.40%
Equicom SB	Thrift	804,808,813.72	526,478,368.74	152.87%
Business & Consumers Bank	Thrift	111,503,405.66	79,778,218.98	139.77%
Malayan Bank Savings & Mortgage Bank	Thrift	1,604,314,144.81	1,150,906,649.00	139.40%
Philippine National Bank	U/KB	50,766,564,105.82	36,454,637,515.91	139.26%
Hiyas Savings & Loan Bank	Thrift	239,626,539.43	175,599,508.50	136.46%
Luzon Development Bank	Thrift	644,332,995.39	492,360,638.92	130.87%
Philippine Veterans Bank	U/KB	8,261,265,793.78	6,643,455,486.88	124.35%
Silangan Savings and Loan Bank, Inc.	Thrift	61,066,411.54	51,238,430.87	119.18%
Security Bank Savings Corporation	Thrift	2,351,384,570.60	2,117,832,548.04	111.03%
Korea Exchange Bank	U/KB	622,081,667.32	583,041,140.10	106.70%
Opportunity Kauswagan Bank, Inc.	Thrift	181,267,927.74	170,899,309.83	106.07%
Philippine Savings Bank	Thrift	16,254,121,220.71	16,065,835,469.57	101.17%
Grand Total		266,475,471,287.45	127,783,210,487.61	208.54%

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 December 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.