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

Editor's Note: This is an updated version of an earlier blog post "A Simple Stress Test of Philippine Banks as of June 30, 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 193.100 billion or 2.11% of the Php 9,134.605 billion in assets held in the Philippine Banking System as of September 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 129.096 billion or 12.78% of the PhP 1,010.514 billion in Stockholders Equity (SE) as of September 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.  Failed banks are highlighted in red.  For more information regarding this, please read "The Top Distressed Philippine Banks as of September 30, 2013").

The stockholder's equity of The Real Bank would be completely wiped out.  Two other banks, Silangan Savings and Loan Bank, Inc. (which failed last January 9, 2014: See a previous blog post: "A Short Analysis of Recent Bank Failures since the Failure of Banco Filipino - Updated") 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. (57.94% decline in SE), Planters Development Bank (52.75% decline in SE), United Overseas Bank Philippines (50.84% decline in SE), World Partners Bank (42.05% decline in SE), Security Bank Savings Corporation (35.24% decline in SE), Enterprise Bank Inc. (32.05% decline in SE), Comsavings Bank (31.14% decline in SE) would be severely affected.

Philippine Banking System
NPL as % of SE
September 30, 2013
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
THE REAL BANK (A THRIFT BANK) INC	3,676,265,796.17	760,367,463.02	483.49%
SILANGAN SAVINGS & LOAN BANK INC	19,342,509.99	10,025,580.13	192.93%
CITIBANK SAVINGS INC	2,725,163,565.91	1,574,388,139.34	173.09%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	86,081,823.47	74,291,602.90	115.87%
PLANTERS DEVELOPMENT BANK	3,305,372,801.44	3,133,227,648.33	105.49%
UNITED OVERSEAS BANK PHILIPPINES	664,875,061.65	653,858,984.70	101.68%
WORLD PARTNERS BANK (A THRIFT BANK)	88,154,241.39	104,831,569.74	84.09%
SECURITY BANK SAVINGS CORPORATION	771,924,973.74	1,095,151,496.40	70.49%
ENTERPRISE BANK INC (A THRIFT BANK)	121,575,888.04	189,654,635.05	64.10%
COMSAVINGS BANK	180,956,095.42	290,532,377.98	62.28%
BPI GLOBE BANKO INC A SAVINGS BANK	184,972,059.46	326,013,506.53	56.74%
NORTHPOINT DEV'T BANK INC	41,343,785.62	76,016,688.85	54.39%
BATAAN DEVELOPMENT BANK	35,501,329.21	65,886,982.35	53.88%
PHILIPPINE POSTAL SAVINGS BANK INC	365,776,413.52	679,474,343.21	53.83%
THE PALAWAN BANK (PALAWAN DB) INC	12,816,840.35	24,105,699.34	53.17%
LUZON DEVELOPMENT BANK	219,963,748.95	422,992,285.10	52.00%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	782,703,074.20	1,668,574,318.71	46.91%
EQUICOM SAVINGS BANK INC	226,206,776.15	486,433,820.41	46.50%
SAMPAGUITA SAVINGS BANK INC	24,566,592.56	55,513,886.63	44.25%
ALLIED SAVINGS BANK	427,675,246.13	972,514,395.43	43.98%
PAMPANGA DEVELOPMENT BANK	40,236,948.19	106,022,568.94	37.95%
FARMERS SAVINGS & LOAN BANK INC	41,146,586.00	112,083,965.94	36.71%
STANDARD CHARTERED BANK	1,073,584,225.34	2,965,820,722.31	36.20%
VILLAGE BANK INC (A THRIFT BANK)	26,309,046.44	73,694,723.45	35.70%
PHILIPPINE RESOURCES SAVINGS BANKING	530,093,760.55	1,527,666,933.73	34.70%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	90,697,987.61	266,219,853.55	34.07%
MALASIQUI PROGRESSIVE SLB, INC	17,567,906.25	54,435,015.90	32.27%
MARITIME SAVINGS BANK CORPORATION	21,081,945.79	66,310,245.43	31.79%
WEALTH DEVELOPMENT BANK CORPORATION	127,076,803.11	401,547,654.84	31.65%
ILOILO CITY DEVELOPMENT BANK	24,049,605.18	76,402,736.36	31.48%
TONG YANG SAVINGS BANK INC	117,167,791.14	389,060,296.20	30.12%
MALAYAN BANK SAVINGS AND MORT BANK INC	307,337,266.81	1,081,058,516.12	28.43%
RCBC SAVINGS BANK INC	2,058,816,470.70	7,385,685,863.54	27.88%
UNITED COCONUT PLANTERS BANK	5,741,683,988.58	20,746,333,625.69	27.68%
UNIVERSITY SAVINGS BANK INC	56,256,741.84	211,977,767.06	26.54%
BPI FAMILY SAVINGS BANK INC	4,587,952,154.71	17,392,299,117.83	26.38%
BANK OF COMMERCE	4,016,356,222.98	15,518,003,350.98	25.88%
PHIL BANK OF COMMUNICATIONS	1,331,723,088.72	5,172,743,757.18	25.75%
EAST WEST BANKING CORP	4,729,518,467.90	18,780,806,566.60	25.18%
UNION BANK OF THE PHILIPPINES	9,281,609,151.50	40,225,927,291.79	23.07%
DUNGGANON BANK (A MICROFINANCE THRIFT	19,265,232.54	84,133,843.30	22.90%
PHILIPPINE SAVINGS BANK	3,746,195,124.94	16,615,065,526.25	22.55%
FIRST CONSOLIDATED BANK INC (A PDB)	439,534,380.11	2,060,481,532.50	21.33%
CHINA BANK SAVINGS INC	226,221,032.39	1,082,493,058.81	20.90%
BUSINESS AND CONSUMERS BANK (A DB)	16,543,047.39	81,435,262.58	20.31%
HIYAS BANKING CORPORATION	31,733,803.62	159,014,472.02	19.96%
PRODUCERS SAVINGS BANK CORPORATION	202,521,421.54	1,173,120,829.04	17.26%
LIFE SAVINGS BANK INC	11,066,411.65	64,886,737.17	17.05%
BPI DIRECT SAVINGS BANK INC	154,650,566.46	927,369,890.78	16.68%
CORDILLERA SAVINGS BANK INC	16,690,807.03	101,030,080.16	16.52%
PHILIPPINE VETERANS BANK	1,126,133,863.31	6,992,435,561.67	16.11%
METRO CEBU PUBLIC SAVINGS BANK	9,259,450.09	63,907,837.08	14.49%
DEVELOPMENT BANK OF THE PHILIPPINES	5,747,728,689.61	40,032,419,521.04	14.36%
BDO UNIBANK INC	22,361,024,360.61	161,661,538,506.02	13.83%
PHILIPPINE NATIONAL BANK	10,326,705,113.23	76,832,904,546.38	13.44%
DUMAGUETE CITY DEVELOPMENT BANK INC	27,051,197.57	207,683,079.52	13.03%
LEMERY SAVINGS & LOAN BANK, INC.	8,615,082.76	68,438,323.19	12.59%
LAND BANK OF THE PHILIPPINES	9,217,532,081.02	74,177,444,655.41	12.43%
HONGKONG & SHANGHAI BANKING CORPORATION	719,591,328.75	5,814,019,507.53	12.38%
PRIDE STAR DEVELOPMENT BANK INC	8,634,935.83	69,970,467.36	12.34%
CHINA BANKING CORPORATION	4,718,030,496.01	41,068,572,860.31	11.49%
MAYBANK PHILIPPINES INC	1,086,048,088.92	10,140,595,987.28	10.71%
CITIBANK, N.A.	790,687,359.90	7,472,192,198.87	10.58%
QUEZON COCONUT BANK INC (A THRIFT BANK)	6,021,526.16	58,237,618.64	10.34%
PHILIPPINE BUSINESS BANK INC A SAVINGS	713,515,607.33	7,262,313,325.38	9.82%
UCPB SAVINGS BANK	238,181,901.40	2,567,896,185.64	9.28%
TOWER DEVELOPMENT BANK	9,855,607.32	110,445,201.58	8.92%
CITY SAVINGS BANK INC	248,807,968.00	2,910,703,059.42	8.55%
ASIA UNITED BANK CORPORATION	1,484,724,998.75	17,857,415,118.55	8.31%
RIZAL COMMERCIAL BANKING CORP	3,813,174,399.56	46,084,616,203.42	8.27%
ROBINSONS BANK CORPORATION	426,874,861.97	5,351,042,759.62	7.98%
CARD SME BANK INC A THRIFT BANK	18,325,325.68	237,063,154.84	7.73%
BANK OF THE PHILIPPINE ISLANDS	7,459,301,933.47	101,513,950,073.79	7.35%
PACIFIC ACE SAVINGS BANK INC	5,392,641.51	74,921,481.62	7.20%
KOREA EXCHANGE BANK	41,519,190.16	594,713,419.54	6.98%
INTER-ASIA DEVELOPMENT BANK	3,346,585.72	52,621,713.94	6.36%
CITYSTATE SAVINGS BANK INC	47,071,949.74	790,545,549.10	5.95%
SUN SAVINGS BANK INC	6,245,559.79	108,751,688.11	5.74%
PHILIPPINE TRUST COMPANY	1,147,542,163.55	20,331,893,875.73	5.64%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	32,495,043.40	656,057,455.54	4.95%
HSBC SAVINGS BANK (PHILS) INC	130,672,215.76	2,844,445,241.76	4.59%
CTBC BANK (PHILIPPINES) CORPORATION	293,736,854.58	6,445,548,838.27	4.56%
CENTURY SAVINGS BANK CORPORATION	40,262,101.54	911,189,647.34	4.42%
BATAAN SAVINGS AND LOAN BANK	2,770,214.85	71,221,347.13	3.89%
BANK ONE SAVINGS AND TRUST CORP.	20,076,854.81	540,089,692.66	3.72%
MICROFINANCE MAXIMUM SB INC	1,195,287.06	53,366,623.19	2.24%
METROPOLITAN BANK & TRUST CO	2,923,573,649.37	132,913,338,941.49	2.20%
OPTIMUM DEVELOPMENT BANK INC	13,837,575.70	718,776,831.06	1.93%
SECURITY BANK CORPORATION	740,210,526.40	40,439,589,096.64	1.83%
PROGRESS SAVINGS AND LOAN BANK INC	1,239,886.20	83,394,670.11	1.49%
ANZ BANKING GROUP LTD	23,339,114.85	3,033,597,583.83	0.77%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	3,144,449.34	506,500,666.78	0.62%
BANGKOK BANK PUBLIC CO LTD	5,034,155.55	1,160,083,398.87	0.43%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,156,048.97	406,949,575.79	0.28%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	2,148,653,104.95	0.03%
INTERNATIONALE NEDERLANDEN GROEP BK	89.08	3,132,011,905.89	0.00%
BANK OF AMERICA N.A.	4.00	596,946,705.20	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	731,115,002.59	0.00%
BDO ELITE SAVINGS BANK INC	0.00	1,600,883,444.68	0.00%
BDO PRIVATE BANK, INC.	0.00	6,254,571,149.37	0.00%
DEUTSCHE BANK AG	0.00	2,210,540,126.62	0.00%
ISLA BANK (A THRIFT BANK) INC	0.00	640,603,002.19	0.00%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	0.00	716,962,280.46	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	1,418,575,146.28	0.00%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	2,202,443,873.38	0.00%
Grand Total	129,096,349,834.78	1,010,513,696,062.85	12.78%

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 September 30, 2013, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 378.322 billion or almost 3 times the size of the Philippine Banking System's NPLs of PhP 129.096 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
September 30, 2013
	Classified Loans	NPL	Classified Loans/NPL
Bank	(In PHP)	(In PHP)	(In %)
INTERNATIONALE NEDERLANDEN GROEP BK	447,955,000.00	89.08	502868208.35%
BANK OF AMERICA N.A.	5,534,000.00	4.00	138350000.00%
INTER-ASIA DEVELOPMENT BANK	151,247,965.90	3,346,585.72	4519.47%
VILLAGE BANK INC (A THRIFT BANK)	653,169,873.68	26,309,046.44	2482.68%
CITIBANK, N.A.	17,164,250,000.00	790,687,359.90	2170.80%
ILOILO CITY DEVELOPMENT BANK	328,357,308.71	24,049,605.18	1365.33%
KOREA EXCHANGE BANK	565,189,489.03	41,519,190.16	1361.27%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	1,156,048.97	1208.64%
BANK ONE SAVINGS AND TRUST CORP.	205,058,819.72	20,076,854.81	1021.37%
SECURITY BANK CORPORATION	7,108,000,000.00	740,210,526.40	960.27%
UNIVERSITY SAVINGS BANK INC	425,628,809.59	56,256,741.84	756.58%
COMSAVINGS BANK	1,275,879,789.57	180,956,095.42	705.08%
METROPOLITAN BANK & TRUST CO	20,381,938,722.63	2,923,573,649.37	697.16%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	5,741,683,988.58	642.08%
UCPB SAVINGS BANK	1,482,639,304.35	238,181,901.40	622.48%
BANK OF COMMERCE	24,857,960,000.00	4,016,356,222.98	618.92%
DUMAGUETE CITY DEVELOPMENT BANK INC	165,608,000.00	27,051,197.57	612.20%
BUSINESS AND CONSUMERS BANK (A DB)	100,032,724.08	16,543,047.39	604.68%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	189,946,399.46	32,495,043.40	584.54%
PHILIPPINE NATIONAL BANK	45,761,897,524.58	10,326,705,113.23	443.14%
RCBC SAVINGS BANK INC	8,915,418,143.00	2,058,816,470.70	433.04%
PRIDE STAR DEVELOPMENT BANK INC	35,384,598.67	8,634,935.83	409.78%
PHILIPPINE SAVINGS BANK	13,051,496,508.14	3,746,195,124.94	348.39%
ASIA UNITED BANK CORPORATION	4,868,617,040.63	1,484,724,998.75	327.91%
ROBINSONS BANK CORPORATION	1,355,020,000.00	426,874,861.97	317.43%
PHILIPPINE TRUST COMPANY	3,574,288,585.83	1,147,542,163.55	311.47%
MALAYAN BANK SAVINGS AND MORT BANK INC	949,372,884.50	307,337,266.81	308.90%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,327,617.41	6,021,526.16	304.37%
PHILIPPINE VETERANS BANK	3,379,645,500.37	1,126,133,863.31	300.11%
FARMERS SAVINGS & LOAN BANK INC	121,927,770.99	41,146,586.00	296.33%
TONG YANG SAVINGS BANK INC	346,887,404.45	117,167,791.14	296.06%
BATAAN DEVELOPMENT BANK	102,400,000.00	35,501,329.21	288.44%
PROGRESS SAVINGS AND LOAN BANK INC	3,469,345.60	1,239,886.20	279.81%
WORLD PARTNERS BANK (A THRIFT BANK)	237,295,083.50	88,154,241.39	269.18%
METRO CEBU PUBLIC SAVINGS BANK	24,627,760.91	9,259,450.09	265.97%
BANK OF THE PHILIPPINE ISLANDS	18,961,198,735.37	7,459,301,933.47	254.20%
RIZAL COMMERCIAL BANKING CORP	9,477,060,505.63	3,813,174,399.56	248.53%
CHINA BANK SAVINGS INC	543,117,062.40	226,221,032.39	240.08%
UNION BANK OF THE PHILIPPINES	22,163,722,063.62	9,281,609,151.50	238.79%
CORDILLERA SAVINGS BANK INC	38,955,630.21	16,690,807.03	233.40%
CHINA BANKING CORPORATION	10,892,647,673.90	4,718,030,496.01	230.87%
LAND BANK OF THE PHILIPPINES	20,683,545,365.77	9,217,532,081.02	224.39%
TOWER DEVELOPMENT BANK	20,244,894.57	9,855,607.32	205.41%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	530,093,760.55	197.87%
PRODUCERS SAVINGS BANK CORPORATION	399,820,701.03	202,521,421.54	197.42%
PLANTERS DEVELOPMENT BANK	6,099,092,824.88	3,305,372,801.44	184.52%
THE REAL BANK (A THRIFT BANK) INC	6,748,046,322.16	3,676,265,796.17	183.56%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	782,703,074.20	182.42%
EQUICOM SAVINGS BANK INC	410,870,229.58	226,206,776.15	181.63%
LIFE SAVINGS BANK INC	20,016,071.21	11,066,411.65	180.87%
BDO UNIBANK INC	40,241,256,099.54	22,361,024,360.61	179.96%
FIRST CONSOLIDATED BANK INC (A PDB)	778,906,653.23	439,534,380.11	177.21%
BPI FAMILY SAVINGS BANK INC	7,979,322,145.42	4,587,952,154.71	173.92%
PHILIPPINE POSTAL SAVINGS BANK INC	625,851,100.05	365,776,413.52	171.10%
HSBC SAVINGS BANK (PHILS) INC	218,753,608.51	130,672,215.76	167.41%
CENTURY SAVINGS BANK CORPORATION	67,123,782.43	40,262,101.54	166.72%
OPTIMUM DEVELOPMENT BANK INC	23,022,356.80	13,837,575.70	166.38%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	713,515,607.33	166.05%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	144,208,348.75	90,697,987.61	159.00%
MARITIME SAVINGS BANK CORPORATION	32,860,991.81	21,081,945.79	155.87%
MAYBANK PHILIPPINES INC	1,676,979,661.20	1,086,048,088.92	154.41%
SECURITY BANK SAVINGS CORPORATION	1,182,987,585.01	771,924,973.74	153.25%
CTBC BANK (PHILIPPINES) CORPORATION	414,894,799.82	293,736,854.58	141.25%
DEVELOPMENT BANK OF THE PHILIPPINES	7,751,266,591.60	5,747,728,689.61	134.86%
ANZ BANKING GROUP LTD	31,324,888.26	23,339,114.85	134.22%
EAST WEST BANKING CORP	5,919,925,900.00	4,729,518,467.90	125.17%
HONGKONG & SHANGHAI BANKING CORPORATION	890,262,857.67	719,591,328.75	123.72%
UNITED OVERSEAS BANK PHILIPPINES	770,619,709.52	664,875,061.65	115.90%
BPI DIRECT SAVINGS BANK INC	175,184,243.39	154,650,566.46	113.28%
STANDARD CHARTERED BANK	1,188,901,323.71	1,073,584,225.34	110.74%
CITIBANK SAVINGS INC	2,937,759,064.98	2,725,163,565.91	107.80%
BPI GLOBE BANKO INC A SAVINGS BANK	195,005,392.86	184,972,059.46	105.42%
DUNGGANON BANK (A MICROFINANCE THRIFT	20,025,074.33	19,265,232.54	103.94%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	40,236,948.19	103.54%
SAMPAGUITA SAVINGS BANK INC	25,001,275.29	24,566,592.56	101.77%
LEMERY SAVINGS & LOAN BANK, INC.	8,625,579.31	8,615,082.76	100.12%
BANGKOK BANK PUBLIC CO LTD	5,034,155.55	5,034,155.55	100.00%
BATAAN SAVINGS AND LOAN BANK	2,770,214.85	2,770,214.85	100.00%
HIYAS BANKING CORPORATION	31,733,803.62	31,733,803.62	100.00%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	734,885.22	100.00%
MALASIQUI PROGRESSIVE SLB, INC	17,567,906.25	17,567,906.25	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	86,081,823.47	86,081,823.47	100.00%
SUN SAVINGS BANK INC	6,150,546.57	6,245,559.79	98.48%
ALLIED SAVINGS BANK	378,134,572.81	427,675,246.13	88.42%
LUZON DEVELOPMENT BANK	190,234,732.35	219,963,748.95	86.48%
SILANGAN SAVINGS & LOAN BANK INC	16,030,879.99	19,342,509.99	82.88%
CITY SAVINGS BANK INC	159,231,185.28	248,807,968.00	64.00%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	127,076,803.11	62.12%
PHIL BANK OF COMMUNICATIONS	75,880,403.95	1,331,723,088.72	5.70%
CARD SME BANK INC A THRIFT BANK	0.00	18,325,325.68	0.00%
CITYSTATE SAVINGS BANK INC	0.00	47,071,949.74	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	121,575,888.04	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	3,144,449.34	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	1,195,287.06	0.00%
NORTHPOINT DEV'T BANK INC	0.00	41,343,785.62	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	5,392,641.51	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	12,816,840.35	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	5,360,742,006.36	0.00	NA
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	642,113,300.16	0.00	NA
DEUTSCHE BANK AG	926,375,764.86	0.00	NA
ISLA BANK (A THRIFT BANK) INC	33,211,214.70	0.00	NA
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	670,070,516.60	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	926,655,582.43	0.00	NA
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	118,261,613.40	0.00	NA
Grand Total	378,321,974,515.30	129,096,349,834.78	293.05%

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 37.81% of the Php 1.001 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2013.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
September 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	6,748,046,322.16	403,897,117.56	1670.73%
BANK OF CHINA LIMITED-MANILA BRANCH	5,360,742,006.36	677,275,685.72	791.52%
VILLAGE BANK INC (A THRIFT BANK)	653,169,873.68	86,744,428.80	752.98%
ILOILO CITY DEVELOPMENT BANK	328,357,308.71	74,068,482.77	443.32%
COMSAVINGS BANK	1,275,879,789.57	324,037,558.21	393.74%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	12,441,512,075.45	296.31%
INTER-ASIA DEVELOPMENT BANK	151,247,965.90	59,391,398.86	254.66%
UNIVERSITY SAVINGS BANK INC	425,628,809.59	237,367,686.97	179.31%
WORLD PARTNERS BANK (A THRIFT BANK)	237,295,083.50	168,429,784.45	140.89%
PLANTERS DEVELOPMENT BANK	6,099,092,824.88	4,435,504,297.84	137.51%
CITIBANK, N.A.	17,164,250,000.00	12,988,072,447.69	132.15%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,646,386.19	131.88%
BANK OF COMMERCE	24,857,960,000.00	18,938,602,086.54	131.26%
BUSINESS AND CONSUMERS BANK (A DB)	100,032,724.08	83,997,066.23	119.09%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,712,884,410.13	102.32%
FARMERS SAVINGS & LOAN BANK INC	121,927,770.99	120,445,949.31	101.23%
KOREA EXCHANGE BANK	565,189,489.03	590,448,140.37	95.72%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	86,081,823.47	99,188,170.54	86.79%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	670,070,516.60	812,000,716.20	82.52%
MALAYAN BANK SAVINGS AND MORT BANK INC	949,372,884.50	1,231,401,672.29	77.10%
EQUICOM SAVINGS BANK INC	410,870,229.58	547,774,008.61	75.01%
DUMAGUETE CITY DEVELOPMENT BANK INC	165,608,000.00	223,461,033.96	74.11%
PHILIPPINE SAVINGS BANK	13,051,496,508.14	17,859,204,813.32	73.08%
CITIBANK SAVINGS INC	2,937,759,064.98	4,176,845,927.32	70.33%
PHILIPPINE POSTAL SAVINGS BANK INC	625,851,100.05	911,995,295.61	68.62%
TONG YANG SAVINGS BANK INC	346,887,404.45	515,251,334.74	67.32%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	2,127,596,805.78	67.11%
SECURITY BANK SAVINGS CORPORATION	1,182,987,585.01	1,769,284,078.33	66.86%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	1,571,917,417.14	66.73%
DEUTSCHE BANK AG	926,375,764.86	1,491,605,872.17	62.11%
CHINA BANK SAVINGS INC	543,117,062.40	959,961,776.24	56.58%
UCPB SAVINGS BANK	1,482,639,304.35	2,625,532,458.92	56.47%
MIZUHO BANK LTD - MANILA BRANCH	926,655,582.43	1,644,448,818.10	56.35%
UNITED OVERSEAS BANK PHILIPPINES	770,619,709.52	1,370,055,770.87	56.25%
PHILIPPINE NATIONAL BANK	45,761,897,524.58	83,697,635,640.24	54.68%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	144,208,348.75	286,197,997.27	50.39%
PHILIPPINE VETERANS BANK	3,379,645,500.37	7,003,198,360.29	48.26%
PRIDE STAR DEVELOPMENT BANK INC	35,384,598.67	74,397,380.79	47.56%
MARITIME SAVINGS BANK CORPORATION	32,860,991.81	69,581,122.89	47.23%
UNION BANK OF THE PHILIPPINES	22,163,722,063.62	50,253,147,440.40	44.10%
BPI FAMILY SAVINGS BANK INC	7,979,322,145.42	18,350,578,929.29	43.48%
STANDARD CHARTERED BANK	1,188,901,323.71	2,746,581,696.80	43.29%
BANK ONE SAVINGS AND TRUST CORP.	205,058,819.72	535,201,269.17	38.31%
METRO CEBU PUBLIC SAVINGS BANK	24,627,760.91	64,737,773.49	38.04%
LUZON DEVELOPMENT BANK	190,234,732.35	501,040,949.74	37.97%
PRODUCERS SAVINGS BANK CORPORATION	399,820,701.03	1,095,533,079.50	36.50%
LAND BANK OF THE PHILIPPINES	20,683,545,365.77	57,010,913,487.30	36.28%
ALLIED SAVINGS BANK	378,134,572.81	1,046,384,945.13	36.14%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	117,517,088.00	35.45%
CORDILLERA SAVINGS BANK INC	38,955,630.21	111,967,588.52	34.79%
FIRST CONSOLIDATED BANK INC (A PDB)	778,906,653.23	2,275,152,006.57	34.24%
BPI GLOBE BANKO INC A SAVINGS BANK	195,005,392.86	578,113,217.91	33.73%
SAMPAGUITA SAVINGS BANK INC	25,001,275.29	79,121,079.46	31.60%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,327,617.41	58,343,632.25	31.41%
SILANGAN SAVINGS & LOAN BANK INC	16,030,879.99	51,738,430.87	30.98%
LIFE SAVINGS BANK INC	20,016,071.21	66,353,767.56	30.17%
MALASIQUI PROGRESSIVE SLB, INC	17,567,906.25	58,975,324.14	29.79%
EAST WEST BANKING CORP	5,919,925,900.00	20,596,543,042.02	28.74%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	189,946,399.46	684,569,581.75	27.75%
ASIA UNITED BANK CORPORATION	4,868,617,040.63	18,733,147,083.25	25.99%
CHINA BANKING CORPORATION	10,892,647,673.90	43,074,933,075.29	25.29%
BDO UNIBANK INC	40,241,256,099.54	171,664,281,366.41	23.44%
ROBINSONS BANK CORPORATION	1,355,020,000.00	6,083,919,644.63	22.27%
DUNGGANON BANK (A MICROFINANCE THRIFT	20,025,074.33	91,281,109.97	21.94%
DEVELOPMENT BANK OF THE PHILIPPINES	7,751,266,591.60	36,963,006,438.33	20.97%
RIZAL COMMERCIAL BANKING CORP	9,477,060,505.63	45,470,229,139.28	20.84%
PHILIPPINE TRUST COMPANY	3,574,288,585.83	18,423,173,545.16	19.40%
BANK OF THE PHILIPPINE ISLANDS	18,961,198,735.37	98,934,355,228.89	19.17%
HIYAS BANKING CORPORATION	31,733,803.62	169,268,776.65	18.75%
MAYBANK PHILIPPINES INC	1,676,979,661.20	9,008,257,701.36	18.62%
SECURITY BANK CORPORATION	7,108,000,000.00	38,628,238,040.19	18.40%
BPI DIRECT SAVINGS BANK INC	175,184,243.39	952,277,854.73	18.40%
METROPOLITAN BANK & TRUST CO	20,381,938,722.63	111,999,909,833.93	18.20%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	437,282,929.29	18.05%
TOWER DEVELOPMENT BANK	20,244,894.57	114,305,443.14	17.71%
HONGKONG & SHANGHAI BANKING CORPORATION	890,262,857.67	5,114,880,317.76	17.41%
INTERNATIONALE NEDERLANDEN GROEP BK	447,955,000.00	2,667,503,858.26	16.79%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	7,708,104,210.04	15.37%
BDO PRIVATE BANK, INC.	642,113,300.16	5,281,205,927.12	12.16%
LEMERY SAVINGS & LOAN BANK, INC.	8,625,579.31	71,094,084.23	12.13%
HSBC SAVINGS BANK (PHILS) INC	218,753,608.51	2,747,492,714.64	7.96%
CENTURY SAVINGS BANK CORPORATION	67,123,782.43	895,985,103.05	7.49%
CTBC BANK (PHILIPPINES) CORPORATION	414,894,799.82	6,621,899,085.40	6.27%
CITY SAVINGS BANK INC	159,231,185.28	2,565,461,612.04	6.21%
SUN SAVINGS BANK INC	6,150,546.57	106,281,667.66	5.79%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	118,261,613.40	2,278,627,961.84	5.19%
ISLA BANK (A THRIFT BANK) INC	33,211,214.70	639,992,124.71	5.19%
PROGRESS SAVINGS AND LOAN BANK INC	3,469,345.60	84,145,795.60	4.12%
BATAAN SAVINGS AND LOAN BANK	2,770,214.85	71,545,429.60	3.87%
OPTIMUM DEVELOPMENT BANK INC	23,022,356.80	721,724,742.05	3.19%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	445,966,783.26	3.13%
PHIL BANK OF COMMUNICATIONS	75,880,403.95	4,791,505,760.04	1.58%
ANZ BANKING GROUP LTD	31,324,888.26	2,474,333,079.88	1.27%
BANK OF AMERICA N.A.	5,534,000.00	607,196,709.20	0.91%
BANGKOK BANK PUBLIC CO LTD	5,034,155.55	1,249,396,547.00	0.40%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	1,403,159,400.00	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	241,492,678.42	0.00%
CITYSTATE SAVINGS BANK INC	0.00	806,301,387.22	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	227,755,866.40	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	475,529,722.81	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	55,912,948.55	0.00%
NORTHPOINT DEV'T BANK INC	0.00	83,322,600.83	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	79,443,628.36	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	27,180,689.84	0.00%
Grand Total	378,321,974,515.30	1,000,610,234,493.81	37.81%

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 four banks (severely affected banks highlighted in yellow).

1. The Real Bank (167.07% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (79.15% reduction in Total Capital Cushion)
3. Village SLA, Inc. (75.30% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (44.33% reduction in Total Capital Cushion)
5. Comsavings Bank (39.37% 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 five more banks:

1. The Real Bank (334.15% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (158.30% reduction in Total Capital Cushion)
3. Village SLA, Inc. (150.60% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (88.66% reduction in Total Capital Cushion)
5. Comsavings Bank (78.75% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (59.26% reduction in Total Capital Cushion)
7. Inter-Asia Development Bank (50.93% reduction in Total Capital Cushion)
8. University Savings Bank (35.86% 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 eleven other banks:

1. The Real Bank (501.22% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (237.45% reduction in Total Capital Cushion)
3. Village SLA, Inc. (225.89% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (132.99% reduction in Total Capital Cushion)
5. Comsavings Bank (118.12% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (88.89% reduction in Total Capital Cushion)
7. Inter-Asia Development Bank (76.40% reduction in Total Capital Cushion)
8. University Savings Bank (53.79% reduction in Total Capital Cushion)
9. World Partners Bank (42.27% reduction in Total Capital Cushion)
10. Planters Development Bank (41.25% reduction in Total Capital Cushion)
11. Citibank N.A. (39.65% reduction in Total Capital Cushion)
12. Bataan Development Bank (39.56% reduction in Total Capital Cushion)
13. Bank of Commerce (39.38% reduction in Total Capital Cushion)
14. Business and Consumers Bank (35.73% reduction in Total Capital Cushion)
15. RCBC Savings Bank (30.70% reduction in Total Capital Cushion)
16. Farmers Savings & Loan Bank Inc (30.37% reduction in Total Capital Cushion)

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

1. The Real Bank (668.29% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (316.61% reduction in Total Capital Cushion)
3. Village SLA, Inc. (301.19% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (177.33% reduction in Total Capital Cushion)
5. Comsavings Bank (157.50% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (118.53% reduction in Total Capital Cushion)
7. Inter-Asia Development Bank (101.87% reduction in Total Capital Cushion)
8. University Savings Bank (71.72% reduction in Total Capital Cushion)
9. World Partners Bank (56.35% reduction in Total Capital Cushion)
10. Planters Development Bank (55.00% reduction in Total Capital Cushion)
11. Citibank, N.A. (52.86% reduction in Total Capital Cushion)
12. Bataan Development Bank (52.75% reduction in Total Capital Cushion)
13. Bank of Commerce (52.50% reduction in Total Capital Cushion)
14. Business & Consumers Bank (47.64% reduction in Total Capital Cushion)
15. RCBC Savings Bank (40.93% reduction in Total Capital Cushion)
16. Farmers Savings & Loan Bank (40.49% reduction in Total Capital Cushion)
17. Korea Exchange Bank (38.29% reduction in Total Capital Cushion)
18. Opportunity Kauswagan Bank, Inc. (34.71% reduction in Total Capital Cushion)
19. Mega International Commercial Bank Co., Ltd. (33.01% reduction in Total Capital Cushion)
20. Malayan Bank Savings & Mortgage Bank (30.84% reduction in Total Capital Cushion)
21. Equicom Savings Bank Inc. (30.00% reduction in Total Capital Cushion)

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

1. The Real Bank (835.37% reduction in Total Capital Cushion)
2. Bank of China Limited - Manila Branch (395.76% reduction in Total Capital Cushion)
3. Village SLA, Inc. (376.49% reduction in Total Capital Cushion)
4. Iloilo City Development Bank (221.66% reduction in Total Capital Cushion)
5. Comsavings Bank (196.87% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (148.16% reduction in Total Capital Cushion)
7. Inter-Asia Development Bank (127.33% reduction in Total Capital Cushion)
8. University Savings Bank (89.66% reduction in Total Capital Cushion)
9. World Partners Bank (70.44% reduction in Total Capital Cushion)
10. Planters Development Bank (68.75% reduction in Total Capital Cushion)
11. Citibank, N.A. (66.08% reduction in Total Capital Cushion)
12. Bataan Development Bank (65.94% reduction in Total Capital Cushion)
13. Bank of Commerce (65.63% reduction in Total Capital Cushion)
14. Business & Consumers Bank (59.55% reduction in Total Capital Cushion)
15. RCBC Savings Bank (51.16% reduction in Total Capital Cushion)
16. Farmers Savings & Loan Bank (50.62% reduction in Total Capital Cushion)
17. Korea Exchange Bank (47.86% reduction in Total Capital Cushion)
18. Opportunity Kauswagan Bank, Inc. (43.39% reduction in Total Capital Cushion)
19. Mega International Commercial Bank Co., Ltd. (41.26% reduction in Total Capital Cushion)
20. Malayan Bank Savings & Mortgage Bank (38.55% reduction in Total Capital Cushion)
21. Equicom Savings Bank Inc. (37.50% reduction in Total Capital Cushion)
22. Dumaguete City Development Bank (37.06% reduction in Total Capital Cushion)
23. Philippine Savings Bank (36.54% reduction in Total Capital Cushion)
24. Citibank Savings Inc. (34.81% reduction in Total Capital Cushion)
25. Philippine Postal Savings Bank Inc. (34.31% reduction in Total Capital Cushion)
26. Tong Yang Savings Bank Inc (33.66% reduction in Total Capital Cushion)
27. Sterling Bank of Asia Inc. (33.55% reduction in Total Capital Cushion)
28. Security Bank Savings Corporation (33.43% reduction in Total Capital Cushion)
29. Philippine Resources Savings Banking (33.36% reduction in Total Capital Cushion)
30. Deutsche Bank AG (31.05% 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 September 30, 2013".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of September 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
September 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	6,748,046,322.16	403,897,117.56	1670.73%	167.07%	334.15%	501.22%	668.29%	835.37%
BANK OF CHINA LIMITED-MANILA BRANCH	5,360,742,006.36	677,275,685.72	791.52%	79.15%	158.30%	237.45%	316.61%	395.76%
VILLAGE BANK INC (A THRIFT BANK)	653,169,873.68	86,744,428.80	752.98%	75.30%	150.60%	225.89%	301.19%	376.49%
ILOILO CITY DEVELOPMENT BANK	328,357,308.71	74,068,482.77	443.32%	44.33%	88.66%	132.99%	177.33%	221.66%
COMSAVINGS BANK	1,275,879,789.57	324,037,558.21	393.74%	39.37%	78.75%	118.12%	157.50%	196.87%
UNITED COCONUT PLANTERS BANK	36,866,000,000.00	12,441,512,075.45	296.31%	29.63%	59.26%	88.89%	118.53%	148.16%
INTER-ASIA DEVELOPMENT BANK	151,247,965.90	59,391,398.86	254.66%	25.47%	50.93%	76.40%	101.87%	127.33%
UNIVERSITY SAVINGS BANK INC	425,628,809.59	237,367,686.97	179.31%	17.93%	35.86%	53.79%	71.72%	89.66%
WORLD PARTNERS BANK (A THRIFT BANK)	237,295,083.50	168,429,784.45	140.89%	14.09%	28.18%	42.27%	56.35%	70.44%
PLANTERS DEVELOPMENT BANK	6,099,092,824.88	4,435,504,297.84	137.51%	13.75%	27.50%	41.25%	55.00%	68.75%
CITIBANK, N.A.	17,164,250,000.00	12,988,072,447.69	132.15%	13.22%	26.43%	39.65%	52.86%	66.08%
BATAAN DEVELOPMENT BANK	102,400,000.00	77,646,386.19	131.88%	13.19%	26.38%	39.56%	52.75%	65.94%
BANK OF COMMERCE	24,857,960,000.00	18,938,602,086.54	131.26%	13.13%	26.25%	39.38%	52.50%	65.63%
BUSINESS AND CONSUMERS BANK (A DB)	100,032,724.08	83,997,066.23	119.09%	11.91%	23.82%	35.73%	47.64%	59.55%
RCBC SAVINGS BANK INC	8,915,418,143.00	8,712,884,410.13	102.32%	10.23%	20.46%	30.70%	40.93%	51.16%
FARMERS SAVINGS & LOAN BANK INC	121,927,770.99	120,445,949.31	101.23%	10.12%	20.25%	30.37%	40.49%	50.62%
KOREA EXCHANGE BANK	565,189,489.03	590,448,140.37	95.72%	9.57%	19.14%	28.72%	38.29%	47.86%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	86,081,823.47	99,188,170.54	86.79%	8.68%	17.36%	26.04%	34.71%	43.39%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	670,070,516.60	812,000,716.20	82.52%	8.25%	16.50%	24.76%	33.01%	41.26%
MALAYAN BANK SAVINGS AND MORT BANK INC	949,372,884.50	1,231,401,672.29	77.10%	7.71%	15.42%	23.13%	30.84%	38.55%
EQUICOM SAVINGS BANK INC	410,870,229.58	547,774,008.61	75.01%	7.50%	15.00%	22.50%	30.00%	37.50%
DUMAGUETE CITY DEVELOPMENT BANK INC	165,608,000.00	223,461,033.96	74.11%	7.41%	14.82%	22.23%	29.64%	37.06%
PHILIPPINE SAVINGS BANK	13,051,496,508.14	17,859,204,813.32	73.08%	7.31%	14.62%	21.92%	29.23%	36.54%
CITIBANK SAVINGS INC	2,937,759,064.98	4,176,845,927.32	70.33%	7.03%	14.07%	21.10%	28.13%	35.17%
PHILIPPINE POSTAL SAVINGS BANK INC	625,851,100.05	911,995,295.61	68.62%	6.86%	13.72%	20.59%	27.45%	34.31%
TONG YANG SAVINGS BANK INC	346,887,404.45	515,251,334.74	67.32%	6.73%	13.46%	20.20%	26.93%	33.66%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,427,778,000.00	2,127,596,805.78	67.11%	6.71%	13.42%	20.13%	26.84%	33.55%
SECURITY BANK SAVINGS CORPORATION	1,182,987,585.01	1,769,284,078.33	66.86%	6.69%	13.37%	20.06%	26.75%	33.43%
PHILIPPINE RESOURCES SAVINGS BANKING	1,048,915,147.74	1,571,917,417.14	66.73%	6.67%	13.35%	20.02%	26.69%	33.36%
DEUTSCHE BANK AG	926,375,764.86	1,491,605,872.17	62.11%	6.21%	12.42%	18.63%	24.84%	31.05%
CHINA BANK SAVINGS INC	543,117,062.40	959,961,776.24	56.58%	5.66%	11.32%	16.97%	22.63%	28.29%
UCPB SAVINGS BANK	1,482,639,304.35	2,625,532,458.92	56.47%	5.65%	11.29%	16.94%	22.59%	28.24%
MIZUHO BANK LTD - MANILA BRANCH	926,655,582.43	1,644,448,818.10	56.35%	5.64%	11.27%	16.91%	22.54%	28.18%
UNITED OVERSEAS BANK PHILIPPINES	770,619,709.52	1,370,055,770.87	56.25%	5.62%	11.25%	16.87%	22.50%	28.12%
PHILIPPINE NATIONAL BANK	45,761,897,524.58	83,697,635,640.24	54.68%	5.47%	10.94%	16.40%	21.87%	27.34%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	144,208,348.75	286,197,997.27	50.39%	5.04%	10.08%	15.12%	20.16%	25.19%
PHILIPPINE VETERANS BANK	3,379,645,500.37	7,003,198,360.29	48.26%	4.83%	9.65%	14.48%	19.30%	24.13%
PRIDE STAR DEVELOPMENT BANK INC	35,384,598.67	74,397,380.79	47.56%	4.76%	9.51%	14.27%	19.02%	23.78%
MARITIME SAVINGS BANK CORPORATION	32,860,991.81	69,581,122.89	47.23%	4.72%	9.45%	14.17%	18.89%	23.61%
UNION BANK OF THE PHILIPPINES	22,163,722,063.62	50,253,147,440.40	44.10%	4.41%	8.82%	13.23%	17.64%	22.05%
BPI FAMILY SAVINGS BANK INC	7,979,322,145.42	18,350,578,929.29	43.48%	4.35%	8.70%	13.04%	17.39%	21.74%
STANDARD CHARTERED BANK	1,188,901,323.71	2,746,581,696.80	43.29%	4.33%	8.66%	12.99%	17.31%	21.64%
BANK ONE SAVINGS AND TRUST CORP.	205,058,819.72	535,201,269.17	38.31%	3.83%	7.66%	11.49%	15.33%	19.16%
METRO CEBU PUBLIC SAVINGS BANK	24,627,760.91	64,737,773.49	38.04%	3.80%	7.61%	11.41%	15.22%	19.02%
LUZON DEVELOPMENT BANK	190,234,732.35	501,040,949.74	37.97%	3.80%	7.59%	11.39%	15.19%	18.98%
PRODUCERS SAVINGS BANK CORPORATION	399,820,701.03	1,095,533,079.50	36.50%	3.65%	7.30%	10.95%	14.60%	18.25%
LAND BANK OF THE PHILIPPINES	20,683,545,365.77	57,010,913,487.30	36.28%	3.63%	7.26%	10.88%	14.51%	18.14%
ALLIED SAVINGS BANK	378,134,572.81	1,046,384,945.13	36.14%	3.61%	7.23%	10.84%	14.45%	18.07%
PAMPANGA DEVELOPMENT BANK	41,660,931.67	117,517,088.00	35.45%	3.55%	7.09%	10.64%	14.18%	17.73%
CORDILLERA SAVINGS BANK INC	38,955,630.21	111,967,588.52	34.79%	3.48%	6.96%	10.44%	13.92%	17.40%
FIRST CONSOLIDATED BANK INC (A PDB)	778,906,653.23	2,275,152,006.57	34.24%	3.42%	6.85%	10.27%	13.69%	17.12%
BPI GLOBE BANKO INC A SAVINGS BANK	195,005,392.86	578,113,217.91	33.73%	3.37%	6.75%	10.12%	13.49%	16.87%
SAMPAGUITA SAVINGS BANK INC	25,001,275.29	79,121,079.46	31.60%	3.16%	6.32%	9.48%	12.64%	15.80%
QUEZON COCONUT BANK INC (A THRIFT BANK)	18,327,617.41	58,343,632.25	31.41%	3.14%	6.28%	9.42%	12.57%	15.71%
SILANGAN SAVINGS & LOAN BANK INC	16,030,879.99	51,738,430.87	30.98%	3.10%	6.20%	9.30%	12.39%	15.49%
LIFE SAVINGS BANK INC	20,016,071.21	66,353,767.56	30.17%	3.02%	6.03%	9.05%	12.07%	15.08%
MALASIQUI PROGRESSIVE SLB, INC	17,567,906.25	58,975,324.14	29.79%	2.98%	5.96%	8.94%	11.92%	14.89%
EAST WEST BANKING CORP	5,919,925,900.00	20,596,543,042.02	28.74%	2.87%	5.75%	8.62%	11.50%	14.37%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	189,946,399.46	684,569,581.75	27.75%	2.77%	5.55%	8.32%	11.10%	13.87%
ASIA UNITED BANK CORPORATION	4,868,617,040.63	18,733,147,083.25	25.99%	2.60%	5.20%	7.80%	10.40%	12.99%
CHINA BANKING CORPORATION	10,892,647,673.90	43,074,933,075.29	25.29%	2.53%	5.06%	7.59%	10.12%	12.64%
BDO UNIBANK INC	40,241,256,099.54	171,664,281,366.41	23.44%	2.34%	4.69%	7.03%	9.38%	11.72%
ROBINSONS BANK CORPORATION	1,355,020,000.00	6,083,919,644.63	22.27%	2.23%	4.45%	6.68%	8.91%	11.14%
DUNGGANON BANK (A MICROFINANCE THRIFT	20,025,074.33	91,281,109.97	21.94%	2.19%	4.39%	6.58%	8.78%	10.97%
DEVELOPMENT BANK OF THE PHILIPPINES	7,751,266,591.60	36,963,006,438.33	20.97%	2.10%	4.19%	6.29%	8.39%	10.49%
RIZAL COMMERCIAL BANKING CORP	9,477,060,505.63	45,470,229,139.28	20.84%	2.08%	4.17%	6.25%	8.34%	10.42%
PHILIPPINE TRUST COMPANY	3,574,288,585.83	18,423,173,545.16	19.40%	1.94%	3.88%	5.82%	7.76%	9.70%
BANK OF THE PHILIPPINE ISLANDS	18,961,198,735.37	98,934,355,228.89	19.17%	1.92%	3.83%	5.75%	7.67%	9.58%
HIYAS BANKING CORPORATION	31,733,803.62	169,268,776.65	18.75%	1.87%	3.75%	5.62%	7.50%	9.37%
MAYBANK PHILIPPINES INC	1,676,979,661.20	9,008,257,701.36	18.62%	1.86%	3.72%	5.58%	7.45%	9.31%
SECURITY BANK CORPORATION	7,108,000,000.00	38,628,238,040.19	18.40%	1.84%	3.68%	5.52%	7.36%	9.20%
BPI DIRECT SAVINGS BANK INC	175,184,243.39	952,277,854.73	18.40%	1.84%	3.68%	5.52%	7.36%	9.20%
METROPOLITAN BANK & TRUST CO	20,381,938,722.63	111,999,909,833.93	18.20%	1.82%	3.64%	5.46%	7.28%	9.10%
WEALTH DEVELOPMENT BANK CORPORATION	78,935,556.35	437,282,929.29	18.05%	1.81%	3.61%	5.42%	7.22%	9.03%
TOWER DEVELOPMENT BANK	20,244,894.57	114,305,443.14	17.71%	1.77%	3.54%	5.31%	7.08%	8.86%
HONGKONG & SHANGHAI BANKING CORPORATION	890,262,857.67	5,114,880,317.76	17.41%	1.74%	3.48%	5.22%	6.96%	8.70%
INTERNATIONALE NEDERLANDEN GROEP BK	447,955,000.00	2,667,503,858.26	16.79%	1.68%	3.36%	5.04%	6.72%	8.40%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,184,818,220.39	7,708,104,210.04	15.37%	1.54%	3.07%	4.61%	6.15%	7.69%
BDO PRIVATE BANK, INC.	642,113,300.16	5,281,205,927.12	12.16%	1.22%	2.43%	3.65%	4.86%	6.08%
LEMERY SAVINGS & LOAN BANK, INC.	8,625,579.31	71,094,084.23	12.13%	1.21%	2.43%	3.64%	4.85%	6.07%
HSBC SAVINGS BANK (PHILS) INC	218,753,608.51	2,747,492,714.64	7.96%	0.80%	1.59%	2.39%	3.18%	3.98%
CENTURY SAVINGS BANK CORPORATION	67,123,782.43	895,985,103.05	7.49%	0.75%	1.50%	2.25%	3.00%	3.75%
CTBC BANK (PHILIPPINES) CORPORATION	414,894,799.82	6,621,899,085.40	6.27%	0.63%	1.25%	1.88%	2.51%	3.13%
CITY SAVINGS BANK INC	159,231,185.28	2,565,461,612.04	6.21%	0.62%	1.24%	1.86%	2.48%	3.10%
SUN SAVINGS BANK INC	6,150,546.57	106,281,667.66	5.79%	0.58%	1.16%	1.74%	2.31%	2.89%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	118,261,613.40	2,278,627,961.84	5.19%	0.52%	1.04%	1.56%	2.08%	2.60%
ISLA BANK (A THRIFT BANK) INC	33,211,214.70	639,992,124.71	5.19%	0.52%	1.04%	1.56%	2.08%	2.59%
PROGRESS SAVINGS AND LOAN BANK INC	3,469,345.60	84,145,795.60	4.12%	0.41%	0.82%	1.24%	1.65%	2.06%
BATAAN SAVINGS AND LOAN BANK	2,770,214.85	71,545,429.60	3.87%	0.39%	0.77%	1.16%	1.55%	1.94%
OPTIMUM DEVELOPMENT BANK INC	23,022,356.80	721,724,742.05	3.19%	0.32%	0.64%	0.96%	1.28%	1.59%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	445,966,783.26	3.13%	0.31%	0.63%	0.94%	1.25%	1.57%
PHIL BANK OF COMMUNICATIONS	75,880,403.95	4,791,505,760.04	1.58%	0.16%	0.32%	0.48%	0.63%	0.79%
ANZ BANKING GROUP LTD	31,324,888.26	2,474,333,079.88	1.27%	0.13%	0.25%	0.38%	0.51%	0.63%
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	5,034,155.55	1,249,396,547.00	0.40%	0.04%	0.08%	0.12%	0.16%	0.20%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	1,403,159,400.00	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	241,492,678.42	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CITYSTATE SAVINGS BANK INC	0.00	806,301,387.22	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	227,755,866.40	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	0.00	475,529,722.81	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	55,912,948.55	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEV'T BANK INC	0.00	83,322,600.83	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	79,443,628.36	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	27,180,689.84	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Grand Total	378,321,974,515.30	1,000,610,234,493.81	37.81%	3.78%	7.56%	11.34%	15.12%	18.90%