The Capital Adequacy Ratios of Philippine Banks - March 31, 2014

A bank's Capital Adequacy Ratio is a measure of a bank's capital and financial strength.  It is expressed as a percentage of a bank's risk weighted credit exposures.  It is also known as the "Capital to Risk Weighted Assets Ratio (CRAR).

The general formula is as follows:

CAR = (Tier 1 Capital + Tier 2 Capital)/Risk Weighted Assets

Tier 1 Capital

Tier 1 CAR is the ratio of a bank's core or equity capital to its total risk-weighted assets.  It measures financial strength from a regulator's point of view. Tier 1 Capital measures the bank's ability to absorb losses without a bank being required to cease trading.

The formula for Tier 1 Capital is as follows:

Tier 1 Capital = (Paid-up Capital + Statutory Reserves + Disclosed Free Reserves) - (Equity Investments in Subsidiary + Intangible Assets + Current & B/F losses)

Tier 1 CAR = Tier 1 Capital/Risk Weighted Assets

Tier 2 Capital

Tier 2 Capital is supplementary capital.  It measures the ability of a bank to absorb losses in the event of a winding up and so it provides a lesser degree of protection to depositors.

The formula for Tier 2 Capital is as follows:

 Tier 2 Capital = Undisclosed Reserves + General Loss Reserves + Hybrid Debt Capital Instruments and Subordinated Debts.

Risk Weighted Assets

Risk Weighted Assets are a bank's on balance sheet assets and off-balance sheet exposures, weighted according to risk.  Different classes of assets have different risk weightings.  For instance, cash on hand or a government bond has zero risk weighting and are subtracted from the total risk assets.  A loan would have a 100% risk weighthing - it would be counted towards the total risk assets of the bank.

More information about this can be found here.

Minimum Capital Requirements

International Guidelines

Basel III is the global requlatory standard on bank capital adequacy, stress testing, and market liquidity risk agreed upon by the members of the Basel Committee on Banking Supervision.

Under Basel III, the minimum Common Equity Tier 1 Capital Ratio is 4.5%, Tier 1 Capital Ratio is 6.0%, conservation buffer is 2.5%, and the minimum Total CAR is 8.0%.

For more information on Basel III, read this.

BSP Guidelines

The BSP issued new BASEL III Implementing Guidelines that will take effect on January 1, 2014. Under the new guidelines:

"Banks must now meet specific minimum thresholds for so-called Common Equity Tier 1 (CET1) capital and Tier 1 (T1) capital in addition to the Capital Adequacy Ratio (CAR). These regulatory thresholds effectively move banks worldwide to rely more on core capital instruments like CET1 and T1 issues. This is in lieu of hybrid instruments which did not fare well in the latest global crisis as far as absorbing losses. The ability to absorb losses is central to Basel III.

The BSP maintained the minimum Capital Adequacy Ratio (CAR) at 10.0 percent. In addition to CAR, the new framework sets a CET1 ratio of at least 6.0 percent and the Tier I capital ratio is at a minimum of 7.5 percent. 

The new guidelines also introduce a capital conservation buffer of 2.5 percent which shall be made up of CET1 capital. In addition, banks which issued capital instruments from 2011 will be allowed to count these instruments as Basel III-eligible until end-2015

Under these guidelines, several Philippine Banks currently do not meet these guidelines as of March 31, 2014.  The banks that fail to meet BSP's minimum capital requirements are as follows:

TOTAL CAR

1. Bataan Savings and Loan Bank (Total CAR of 0.00%)
2. The Real Bank (Total CAR of 3.94%)
3. BPI Globe Banko Inc. (Total CAR of 6.77%)
4. The Palawan Bank (Total CAR of 7.53%)
5. Planters Development Bank (Total CAR of 8.32%)
6. Rizal Commercial Banking Corporation (Total CAR of 9.91%)

Tier One CAR

1. 1st Valley Bank (Tier One CAR of 0.00%)
2. Bataan Savings and Loan Bank (Tier One CAR of 0.00%)
3. Business & Consumers Bank (Tier One CAR of 0.00%)
4. Enterprise Bank Inc. (Tier One CAR of 0.00%)
5. Equicom Savings Bank, Inc. (Tier One CAR of 0.00%)
6. Inter-Asia Development Bank (Tier One CAR of 0.00%)
7. Maritime Savings Bank Corporation (Tier One CAR of 0.00%)
8. Optimum Development Bank (Tier One CAR of 0.00%)
9. The Real Bank (Tier One CAR of 3.04%)
10. Planters Development Bank (Tier One CAR of 4.16%)
11. BPI Globe Banko Inc. (Tier One CAR of 6.15%)
12. Philippine Bank of Communications (Tier One CAR of 6.74%)
13. The Palawan Bank (Tier One CAR of 7.10%)
14. Sterling Bank of Asia Inc. (Tier One CAR of 8.03%)
15. Security Bank Savings Corporation (Tier One CAR of 9.62%)

The Total CAR and Tier 1 CAR of Philippine Banks as of March 31, 2014 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):

Philippine Banking System
TOTAL CAR
March 31, 2014
	Type of Bank	Total CAR
BATAAN SAVINGS AND LOAN BANK	Thrift	0.00
THE REAL BANK (A THRIFT BANK) INC	Thrift	3.94
BPI GLOBE BANKO INC A SAVINGS BANK	Thrift	6.77
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	7.53
PLANTERS DEVELOPMENT BANK	Thrift	8.32
RIZAL COMM'L BANKING CORP	U/KB	9.91
UNITED COCONUT PLANTERS BANK	U/KB	10.16
EQUICOM SAVINGS BANK INC	Thrift	10.25
SECURITY BANK SAVINGS CORPORATION	Thrift	10.51
COMSAVINGS BANK	Thrift	10.68
PHIL BANK OF COMMUNICATIONS	U/KB	10.80
UNION BANK OF THE PHILS	U/KB	11.21
ALLIED SAVINGS BANK	Thrift	11.70
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	12.11
RCBC SAVINGS BANK INC	Thrift	12.12
EAST WEST BANKING CORP	U/KB	12.16
STANDARD CHARTERED BANK	U/KB	12.55
STERLING BANK OF ASIA INC (A SAVINGS	Thrift	12.75
SECURITY BANK CORP	U/KB	13.21
PHIL POSTAL SAVINGS BANK INC	Thrift	13.31
BDO UNIBANK INC	U/KB	13.32
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	13.55
CHINA BANKING CORP	U/KB	13.66
LAND BANK OF THE PHILIPPINES	U/KB	13.68
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	13.69
PENBANK INC (A PDB) (FORMERLY: PENINSULA	Thrift	13.78
CHINA BANK SAVINGS INC	Thrift	13.99
METROPOLITAN BANK & TCO	U/KB	14.04
BPI FAMILY SAVINGS BANK INC	Thrift	14.05
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE	Thrift	14.17
LUZON DEVELOPMENT BANK	Thrift	14.94
BANK OF THE PHIL ISLANDS	U/KB	15.09
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	15.45
PHILIPPINE RESOURCES SAVINGS BANKING	Thrift	16.02
ASIA UNITED BANK CORPORATION	U/KB	16.06
PHIL SAVINGS BANK	Thrift	16.38
PHIL NATIONAL BANK	U/KB	16.51
HIYAS BANKING CORPORATION	Thrift	16.66
HONGKONG & SHANGHAI BANKING CORP	U/KB	16.71
LEGAZPI SAVINGS BANK INC	Thrift	17.21
FARMERS SAVINGS & LOAN BANK INC	Thrift	17.24
BATAAN DEVELOPMENT BANK	Thrift	17.42
NORTHPOINT DEV'T BANK INC	Thrift	17.50
VILLAGE BANK INC (A THRIFT BANK)	Thrift	17.58
PRODUCERS SAVINGS BANK CORPORATION	Thrift	17.88
DEVELOPMENT BANK OF THE PHIL	U/KB	18.51
BPI DIRECT SAVINGS BANK INC	Thrift	19.24
MAYBANK PHILIPPINES INC	U/KB	19.69
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	19.94
PHILIPPINE VETERANS BANK	U/KB	20.16
BANK OF COMMERCE	U/KB	20.88
ROBINSONS BANK CORPORATION	U/KB	20.92
CITIBANK, N.A.	U/KB	21.20
CARD SME BANK INC A THRIFT BANK	Thrift	22.76
MICROFINANCE MAXIMUM SB INC	Thrift	23.20
ANZ BANKING GROUP LTD	U/KB	23.60
DUMAGUETE CITY DEV BANK INC	Thrift	23.94
MIZUHO BANK LTD - MANILA BRANCH	U/KB	24.14
PHILIPPINE BUSINESS BANK INC A SAVINGS	Thrift	24.24
UCPB SAVINGS BANK	Thrift	25.06
BDO PRIVATE BANK, INC.	U/KB	25.82
BANK OF CHINA LIMITED-MANILA BRANCH	U/KB	25.93
METRO CEBU PUBLIC SAVINGS BANK	Thrift	26.01
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	26.38
DEUTSCHE BANK AG	U/KB	27.14
KOREA EXCHANGE BANK	U/KB	27.77
CITIBANK SAVINGS INC	Thrift	27.89
CTBC BANK (PHILIPPINES) CORP	U/KB	28.03
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	28.32
HSBC SAVINGS BANK(PHILS) INC	Thrift	28.81
LIFE SAVINGS BANK INC	Thrift	28.86
INTER-ASIA DEVELOPMENT BANK	Thrift	29.63
CORDILLERA SAVINGS BANK INC	Thrift	30.48
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	32.36
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	32.49
UNIVERSITY SAVINGS BANK INC	Thrift	34.15
PAMPANGA DEVELOPMENT BANK	Thrift	34.54
MARITIME SAVINGS BANK CORPORATION	Thrift	35.17
SUN SAVINGS BANK INC	Thrift	39.74
PHIL TRUST COMPANY	U/KB	40.06
TONGYANG SAVINGS BANK INC	Thrift	43.27
MALASIQUI PROGRESSIVE SLB, INC	Thrift	43.52
TOWER DEVELOPMENT BANK	Thrift	43.56
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	Thrift	45.20
DUNGGANON BANK (A MICROFINANCE THRIFT	Thrift	46.40
MEGA INT'L COMM'L BANK CO LTD	U/KB	47.34
PACIFIC ACE SAVINGS BANK INC	Thrift	50.15
SAMPAGUITA SAVINGS BANK INC	Thrift	50.67
PRIDE STAR DEVELOPMENT BANK INC	Thrift	50.76
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	55.04
INTERNATIONALE NEDERLANDEN GROEP BK	U/KB	55.88
BANK OF AMERICA N.A.	U/KB	56.59
PROGRESS SAVINGS AND LOAN BANK INC	Thrift	58.08
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	59.34
BANK ONE SAVINGS AND TRUST CORP.	Thrift	63.39
OPTIMUM DEVELOPMENT BANK INC	Thrift	67.80
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	71.08
CENTURY SAVINGS BANK CORPORATION	Thrift	86.48
BANGKOK BANK PUBLIC CO LTD	U/KB	86.71
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	118.77
UNITED OVERSEAS BANK PHILIPPINES	Thrift	193.83
ISLA BANK(A THRIFT BANK) INC	Thrift	200.60
BDO ELITE SAVINGS BANK INC	Thrift	381.89

Philippine Banking System
Tier One CAR
March 31, 2014
Bank	Type of Bank	Tier One CAR
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift	0.00
BATAAN SAVINGS AND LOAN BANK	Thrift	0.00
BUSINESS AND CONSUMERS BANK (A DB)	Thrift	0.00
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift	0.00
EQUICOM SAVINGS BANK INC	Thrift	0.00
INTER-ASIA DEVELOPMENT BANK	Thrift	0.00
MARITIME SAVINGS BANK CORPORATION	Thrift	0.00
OPTIMUM DEVELOPMENT BANK INC	Thrift	0.00
THE REAL BANK (A THRIFT BANK) INC	Thrift	3.04
PLANTERS DEVELOPMENT BANK	Thrift	4.16
BPI GLOBE BANKO INC A SAVINGS BANK	Thrift	6.15
PHIL BANK OF COMMUNICATIONS	U/KB	6.74
THE PALAWAN BANK (PALAWAN DB) INC	Thrift	7.10
STERLING BANK OF ASIA INC (A SAVINGS	Thrift	8.03
SECURITY BANK SAVINGS CORPORATION	Thrift	9.62
LAND BANK OF THE PHILIPPINES	U/KB	10.11
UNITED COCONUT PLANTERS BANK	U/KB	10.16
DEVELOPMENT BANK OF THE PHIL	U/KB	10.24
RIZAL COMM'L BANKING CORP	U/KB	10.49
METROPOLITAN BANK & TCO	U/KB	10.69
COMSAVINGS BANK	Thrift	10.71
UNION BANK OF THE PHILS	U/KB	10.71
ALLIED SAVINGS BANK	Thrift	10.76
EAST WEST BANKING CORP	U/KB	11.31
RCBC SAVINGS BANK INC	Thrift	11.41
CHINA BANK SAVINGS INC	Thrift	11.68
STANDARD CHARTERED BANK	U/KB	12.02
BDO UNIBANK INC	U/KB	12.34
PHIL POSTAL SAVINGS BANK INC	Thrift	12.41
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	12.48
PHIL SAVINGS BANK	Thrift	12.63
SECURITY BANK CORP	U/KB	12.66
CHINA BANKING CORP	U/KB	12.75
PHIL NATIONAL BANK	U/KB	12.77
BPI FAMILY SAVINGS BANK INC	Thrift	13.18
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift	13.18
PENBANK INC (A PDB) (FORMERLY: PENINSULA	Thrift	13.24
LUZON DEVELOPMENT BANK	Thrift	13.87
BANK OF THE PHIL ISLANDS	U/KB	14.22
PHILIPPINE RESOURCES SAVINGS BANKING	Thrift	14.49
ASIA UNITED BANK CORPORATION	U/KB	15.58
HONGKONG & SHANGHAI BANKING CORP	U/KB	16.09
FARMERS SAVINGS & LOAN BANK INC	Thrift	16.40
HIYAS BANKING CORPORATION	Thrift	16.40
LEGAZPI SAVINGS BANK INC	Thrift	16.64
VILLAGE BANK INC (A THRIFT BANK)	Thrift	17.20
NORTHPOINT DEV'T BANK INC	Thrift	17.50
BPI DIRECT SAVINGS BANK INC	Thrift	18.41
PRODUCERS SAVINGS BANK CORPORATION	Thrift	18.50
MAYBANK PHILIPPINES INC	U/KB	18.60
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift	19.24
BATAAN DEVELOPMENT BANK	Thrift	19.42
PHILIPPINE VETERANS BANK	U/KB	19.74
ROBINSONS BANK CORPORATION	U/KB	20.24
BANK OF COMMERCE	U/KB	20.33
CITIBANK, N.A.	U/KB	20.51
ANZ BANKING GROUP LTD	U/KB	23.13
MIZUHO BANK LTD - MANILA BRANCH	U/KB	23.20
DUMAGUETE CITY DEV BANK INC	Thrift	23.54
PHILIPPINE BUSINESS BANK INC A SAVINGS	Thrift	23.59
UCPB SAVINGS BANK	Thrift	24.39
BANK OF CHINA LIMITED-MANILA BRANCH	U/KB	25.35
METRO CEBU PUBLIC SAVINGS BANK	Thrift	25.37
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift	25.52
BDO PRIVATE BANK, INC.	U/KB	25.60
DEUTSCHE BANK AG	U/KB	26.83
CTBC BANK (PHILIPPINES) CORP	U/KB	27.20
KOREA EXCHANGE BANK	U/KB	27.38
CITIBANK SAVINGS INC	Thrift	27.89
HSBC SAVINGS BANK(PHILS) INC	Thrift	28.14
LIFE SAVINGS BANK INC	Thrift	28.63
CORDILLERA SAVINGS BANK INC	Thrift	29.91
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	31.68
MICROFINANCE MAXIMUM SB INC	Thrift	35.18
LEMERY SAVINGS & LOAN BANK, INC.	Thrift	37.10
SUN SAVINGS BANK INC	Thrift	38.86
PHIL TRUST COMPANY	U/KB	39.66
TONGYANG SAVINGS BANK INC	Thrift	43.27
MALASIQUI PROGRESSIVE SLB, INC	Thrift	43.33
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	Thrift	44.74
DUNGGANON BANK (A MICROFINANCE THRIFT	Thrift	46.03
MEGA INT'L COMM'L BANK CO LTD	U/KB	46.38
PACIFIC ACE SAVINGS BANK INC	Thrift	50.08
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	54.88
INTERNATIONALE NEDERLANDEN GROEP BK	U/KB	55.48
SAMPAGUITA SAVINGS BANK INC	Thrift	55.56
BANK OF AMERICA N.A.	U/KB	56.39
PROGRESS SAVINGS AND LOAN BANK INC	Thrift	58.08
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift	58.69
BANK ONE SAVINGS AND TRUST CORP.	Thrift	63.00
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift	71.31
PRIDE STAR DEVELOPMENT BANK INC	Thrift	72.89
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE	Thrift	84.74
CENTURY SAVINGS BANK CORPORATION	Thrift	85.44
BANGKOK BANK PUBLIC CO LTD	U/KB	85.75
TOWER DEVELOPMENT BANK	Thrift	107.99
PAMPANGA DEVELOPMENT BANK	Thrift	117.85
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	118.14
UNIVERSITY SAVINGS BANK INC	Thrift	124.50
UNITED OVERSEAS BANK PHILIPPINES	Thrift	193.49
ISLA BANK(A THRIFT BANK) INC	Thrift	200.37
CARD SME BANK INC A THRIFT BANK	Thrift	280.92
BDO ELITE SAVINGS BANK INC	Thrift	381.89

Source: www.bsp.gov.ph

Singapore, Malaysia, and Thailand Post Flat to Declining Housing Prices, Can the Philippines and Indonesia be Not Far Behind?

Singapore


Singapore's home prices slid for a third straight quarter, which, according to Bloomberg, is the longest losing streak in five years.  Home prices are still  86% above their year end 2004 levels. As can be seen from the chart below, Singapore's home prices have outstripped inflation by a wide margin.

Malaysia

Neighboring Malaysia's House Price Index actually topped out at 141.25% in the second quarter of 2012 and has posted a 3.37% decline since then to 136.48% as of the fourth quarter of 2013.  Home prices are just 36.48% above their year end 2004 levels.  Malaysian home prices tracked inflation for some time between 2004 and late 2009.  However, beginning in 2010, house prices outstripped inflation and have never looked back.

Thailand


In Thailand, which has been experiencing political turmoil for some time, home prices have remained essentially flat since the end of 2004. Home Prices ended 2013 with the index at 100.54%, just 054% higher than the end of 2004, but showing a substantial recovery since the recent low of 74.08% posted in the third quarter of 2009. Thailand, along with Indonesia, is one of the few ASEAN countries whose home prices have significantly lagged inflation, particularly since mid 2006.

Indonesia

Meanwhile in Indonesia, home prices have showed no signs of slowing down their upward trajectory.  In fact, prices seem to have gone parabolic, climbing 4.63% in the last quarter of 2013, from a base of 121.49% as of the third quarter of 2013 to 127.11% as of year end 2013.  Since 2006, home prices have risen 36.48%.  Indonesian home prices, like in Thailand, have lagged inflation since 2007.

Philippines

Philippine house price index stands at 196.65% at year end 2013, 96.65% above their year-end 2004 levels and have consistently outstripped inflation by a wide margin. Philippine home prices have posted the largest 10 year gains among all the countries considered in this blog post.  Like Indonesia, home prices have so far no signs of slowing down their upward trajectory for the foreseeable future.   The question is, is this momentum sustainable?  Or will the Philippines and Indonesia follow its ASEAN neighbors, Singapore, Malaysia, and Thailand, in exhibiting plateauing or declining house prices?  That remains to be seen.

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - December 31, 2013

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of December 31, 2013", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 3.15% as of December 31, 2013, is below the historic average of 4.32% for the last thirty years.  Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses.  Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 44 banks (highlighted in yellow) fall into this deficiency.

Philippine Banking System
NPL Coverage Ratio
December 31, 2013
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	16,841,261.68	129,775,492.78	12.98%
METRO CEBU PUBLIC SAVINGS BANK	2,960,442.96	19,055,765.67	15.54%
MARITIME SAVINGS BANK CORPORATION	2,755,197.36	16,368,803.56	16.83%
THE REAL BANK (A THRIFT BANK) INC	591,788,212.44	3,222,282,611.51	18.37%
DUNGGANON BANK (A MICROFINANCE THRIFT	9,917,922.56	47,508,153.45	20.88%
PROGRESS SAVINGS AND LOAN BANK INC	302,593.35	1,269,493.88	23.84%
LIFE SAVINGS BANK INC	2,499,806.08	9,639,927.96	25.93%
ENTERPRISE BANK INC (A THRIFT BANK)	45,072,038.57	169,661,344.38	26.57%
ALLIED SAVINGS BANK	112,822,049.52	401,441,372.70	28.10%
NORTHPOINT DEV'T BANK INC	10,662,692.95	37,110,605.65	28.73%
EQUICOM SAVINGS BANK INC	73,536,507.76	253,955,691.53	28.96%
PRODUCERS SAVINGS BANK CORPORATION	61,550,165.21	200,833,871.97	30.65%
CENTURY SAVINGS BANK CORPORATION	12,646,730.90	40,116,374.32	31.53%
COMSAVINGS BANK	60,506,624.39	189,798,517.04	31.88%
WEALTH DEVELOPMENT BANK CORPORATION	64,853,212.07	184,239,801.85	35.20%
PHILIPPINE RESOURCES SAVINGS BANKING	202,392,303.77	568,270,831.20	35.62%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,315,623.91	3,566,888.20	36.88%
PLANTERS DEVELOPMENT BANK	1,247,082,924.76	3,267,592,729.96	38.17%
MALASIQUI PROGRESSIVE SLB, INC	6,470,762.05	16,092,906.25	40.21%
DUMAGUETE CITY DEVELOPMENT BANK INC	17,300,528.04	41,156,519.67	42.04%
BUSINESS AND CONSUMERS BANK (A DB)	7,172,172.37	16,884,925.63	42.48%
HIYAS BANKING CORPORATION	12,588,045.27	29,217,436.77	43.08%
PAMPANGA DEVELOPMENT BANK	18,644,033.89	40,745,518.38	45.76%
LUZON DEVELOPMENT BANK	72,750,844.92	153,927,139.62	47.26%
FARMERS SAVINGS & LOAN BANK INC	24,484,516.84	48,471,260.01	50.51%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	48,608,159.37	94,745,384.44	51.30%
LEMERY SAVINGS & LOAN BANK, INC.	5,008,824.64	9,750,997.76	51.37%
BATAAN DEVELOPMENT BANK	15,592,398.15	28,911,402.09	53.93%
BANK ONE SAVINGS AND TRUST CORP.	8,261,602.53	15,304,127.53	53.98%
MALAYAN BANK SAVINGS AND MORT BANK INC	174,001,180.52	315,155,109.94	55.21%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	435,380,455.41	779,111,419.36	55.88%
CHINA BANK SAVINGS INC	157,725,625.07	268,611,569.73	58.72%
TONG YANG SAVINGS BANK INC	94,606,108.54	148,666,358.33	63.64%
RCBC SAVINGS BANK INC	1,188,628,847.92	1,828,298,222.91	65.01%
CITYSTATE SAVINGS BANK INC	27,682,977.13	42,355,159.83	65.36%
VILLAGE BANK INC (A THRIFT BANK)	17,342,200.42	25,784,609.74	67.26%
EAST WEST BANKING CORP	3,213,452,982.56	4,648,406,663.92	69.13%
1ST VALLEY BANK INC A DEVELOPMENT BANK	139,386,958.18	191,253,994.34	72.88%
WORLD PARTNERS BANK (A THRIFT BANK)	64,885,845.59	88,682,976.78	73.17%
BATAAN SAVINGS AND LOAN BANK	2,137,583.98	2,842,178.92	75.21%
MICROFINANCE MAXIMUM SB INC	284,268.86	374,895.56	75.83%
TOWER DEVELOPMENT BANK	8,420,489.57	11,026,032.92	76.37%
THE PALAWAN BANK (PALAWAN DB) INC	11,073,497.04	14,232,122.87	77.81%
CITY SAVINGS BANK INC	309,246,716.78	391,518,685.68	78.99%
MAYBANK PHILIPPINES INC	842,481,789.38	1,036,927,723.27	81.25%
BPI GLOBE BANKO INC A SAVINGS BANK	165,112,327.81	201,814,159.62	81.81%
UNIVERSITY SAVINGS BANK INC	40,166,844.80	48,120,002.84	83.47%
SECURITY BANK SAVINGS CORPORATION	704,101,471.09	838,735,420.10	83.95%
PHILIPPINE POSTAL SAVINGS BANK INC	337,902,530.38	392,952,272.30	85.99%
PHILIPPINE NATIONAL BANK	9,706,366,246.18	10,686,422,376.48	90.83%
PHILIPPINE BUSINESS BANK INC A SAVINGS	688,901,501.15	745,484,055.76	92.41%
PRIDE STAR DEVELOPMENT BANK INC	6,090,315.48	6,473,437.72	94.08%
SAMPAGUITA SAVINGS BANK INC	21,561,538.64	22,719,477.39	94.90%
BPI FAMILY SAVINGS BANK INC	4,150,003,240.95	4,370,697,474.80	94.95%
BANK OF COMMERCE	3,732,183,897.55	3,903,798,967.05	95.60%
FIRST CONSOLIDATED BANK INC (A PDB)	434,987,219.55	443,718,187.84	98.03%
CITIBANK SAVINGS INC	2,287,438,110.91	2,308,133,797.81	99.10%
UNITED OVERSEAS BANK PHILIPPINES	666,212,932.81	664,931,491.65	100.19%
ROBINSONS BANK CORPORATION	423,135,641.62	421,843,064.16	100.31%
DEVELOPMENT BANK OF THE PHILIPPINES	5,732,499,835.71	5,639,214,503.34	101.65%
SUN SAVINGS BANK INC	7,624,041.50	7,460,733.37	102.19%
PHIL BANK OF COMMUNICATIONS	1,298,386,827.43	1,240,984,212.26	104.63%
ASIA UNITED BANK CORPORATION	1,144,088,009.70	1,073,013,698.39	106.62%
INTER-ASIA DEVELOPMENT BANK	4,867,124.76	4,504,816.66	108.04%
PHILIPPINE VETERANS BANK	1,040,706,212.22	960,196,997.18	108.38%
CTBC BANK (PHILIPPINES) CORPORATION	430,854,254.74	388,279,116.49	110.97%
UNITED COCONUT PLANTERS BANK	5,364,105,869.45	4,791,102,973.68	111.96%
RIZAL COMMERCIAL BANKING CORP	3,953,625,097.54	3,527,950,432.52	112.07%
UNION BANK OF THE PHILIPPINES	10,325,961,619.49	8,949,967,078.89	115.37%
PHILIPPINE SAVINGS BANK	4,284,860,503.44	3,655,420,772.73	117.22%
CORDILLERA SAVINGS BANK INC	17,598,795.59	14,750,218.80	119.31%
STANDARD CHARTERED BANK	1,353,946,955.42	1,086,525,758.42	124.61%
UCPB SAVINGS BANK	374,692,441.33	284,342,672.31	131.77%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	5,580,681.06	4,003,853.45	139.38%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	20,336,371.31	14,540,829.34	139.86%
PACIFIC ACE SAVINGS BANK INC	2,958,345.96	2,030,876.69	145.67%
HONGKONG & SHANGHAI BANKING CORPORATION	1,223,836,685.13	829,841,922.61	147.48%
BPI DIRECT SAVINGS BANK INC	186,860,512.64	121,202,841.76	154.17%
HSBC SAVINGS BANK (PHILS) INC	82,454,886.81	52,860,163.68	155.99%
CARD SME BANK INC A THRIFT BANK	30,825,368.13	19,612,047.57	157.18%
LAND BANK OF THE PHILIPPINES	11,660,698,316.19	7,317,990,983.02	159.34%
BDO UNIBANK INC	28,022,669,195.37	17,239,114,625.78	162.55%
CHINA BANKING CORPORATION	6,790,729,651.70	4,117,935,690.11	164.91%
BANK OF THE PHILIPPINE ISLANDS	11,214,018,218.15	6,787,741,471.65	165.21%
PHILIPPINE TRUST COMPANY	1,965,620,159.61	1,148,806,061.17	171.10%
OPTIMUM DEVELOPMENT BANK INC	44,661,296.13	17,197,495.99	259.70%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	3,334,739.21	1,156,048.97	288.46%
SECURITY BANK CORPORATION	2,273,945,259.84	679,832,902.36	334.49%
KOREA EXCHANGE BANK	85,124,833.55	24,799,833.58	343.25%
METROPOLITAN BANK & TRUST CO	11,545,125,383.14	3,124,797,642.79	369.47%
CITIBANK, N.A.	5,304,673,303.96	844,338,675.22	628.26%
BANK OF CHINA LIMITED-MANILA BRANCH	69,823,282.30	8,660,895.91	806.19%
ANZ BANKING GROUP LTD	260,589,391.19	23,339,114.85	1116.54%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	20,443,950.00	734,885.22	2781.92%
BANGKOK BANK PUBLIC CO LTD	143,125,187.50	4,954,155.55	2888.99%
INTERNATIONALE NEDERLANDEN GROEP BK	167,503,858.26	89.08	188037559.79%
BANK OF AMERICA N.A.	10,250,004.00	4.00	256250100.00%
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	57,350,538.02	0.00	NA
DEUTSCHE BANK AG	249,602,970.71	0.00	NA
ISLA BANK (A THRIFT BANK) INC	4,004,580.33	0.00	NA
MBANK PHILIPPINES	10,322,814.95	0.00	NA
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	209,629,759.54	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	354,943,963.71	0.00	NA
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	356,910,030.46	0.00	NA
Grand Total	150,519,060,671.36	118,115,994,900.77	127.43%

Raising the NPL Coverage Ratio to a minimum of 80% will entail additional loan loss provisions for some banks that could eat into a substantial chunk (20% or more) of their Stockholder's Equity.  Based on the table below, around 10 banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
December 31, 2013
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Actual Loan Loss Provisions	Excess/Deficit Loan Loss Provisions	Stockholder's Equity	Impact on SE
THE REAL BANK (A THRIFT BANK) INC	3,222,282,611.51	2,577,826,089.21	591,788,212.44	-1,986,037,876.77	806,215,196.88	-246.34%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	129,775,492.78	103,820,394.22	16,841,261.68	-86,979,132.54	61,638,110.53	-141.11%
PLANTERS DEVELOPMENT BANK	3,267,592,729.96	2,614,074,183.97	1,247,082,924.76	-1,366,991,259.21	2,709,190,353.46	-50.46%
ENTERPRISE BANK INC (A THRIFT BANK)	169,661,344.38	135,729,075.50	45,072,038.57	-90,657,036.93	206,730,309.57	-43.85%
COMSAVINGS BANK	189,798,517.04	151,838,813.63	60,506,624.39	-91,332,189.24	230,763,397.64	-39.58%
DUNGGANON BANK (A MICROFINANCE THRIFT	47,508,153.45	38,006,522.76	9,917,922.56	-28,088,600.20	84,914,347.98	-33.08%
EQUICOM SAVINGS BANK INC	253,955,691.53	203,164,553.22	73,536,507.76	-129,628,045.46	498,166,589.96	-26.02%
NORTHPOINT DEV'T BANK INC	37,110,605.65	29,688,484.52	10,662,692.95	-19,025,791.57	74,030,797.44	-25.70%
WEALTH DEVELOPMENT BANK CORPORATION	184,239,801.85	147,391,841.48	64,853,212.07	-82,538,629.41	363,668,842.05	-22.70%
ALLIED SAVINGS BANK	401,441,372.70	321,153,098.16	112,822,049.52	-208,331,048.64	966,841,559.87	-21.55%
METRO CEBU PUBLIC SAVINGS BANK	19,055,765.67	15,244,612.54	2,960,442.96	-12,284,169.58	63,038,890.96	-19.49%
PHILIPPINE RESOURCES SAVINGS BANKING	568,270,831.20	454,616,664.96	202,392,303.77	-252,224,361.19	1,600,287,621.08	-15.76%
MARITIME SAVINGS BANK CORPORATION	16,368,803.56	13,095,042.85	2,755,197.36	-10,339,845.49	67,829,316.54	-15.24%
FARMERS SAVINGS & LOAN BANK INC	48,471,260.01	38,777,008.01	24,484,516.84	-14,292,491.17	114,015,222.56	-12.54%
PAMPANGA DEVELOPMENT BANK	40,745,518.38	32,596,414.70	18,644,033.89	-13,952,380.81	117,192,461.70	-11.91%
MALASIQUI PROGRESSIVE SLB, INC	16,092,906.25	12,874,325.00	6,470,762.05	-6,403,562.95	54,034,929.02	-11.85%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	779,111,419.36	623,289,135.49	435,380,455.41	-187,908,680.08	1,617,042,495.35	-11.62%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	94,745,384.44	75,796,307.55	48,608,159.37	-27,188,148.18	242,349,904.07	-11.22%
BATAAN DEVELOPMENT BANK	28,911,402.09	23,129,121.67	15,592,398.15	-7,536,723.52	68,240,142.11	-11.04%
LUZON DEVELOPMENT BANK	153,927,139.62	123,141,711.70	72,750,844.92	-50,390,866.78	481,131,559.05	-10.47%
PRODUCERS SAVINGS BANK CORPORATION	200,833,871.97	160,667,097.58	61,550,165.21	-99,116,932.37	1,182,102,090.12	-8.38%
BUSINESS AND CONSUMERS BANK (A DB)	16,884,925.63	13,507,940.50	7,172,172.37	-6,335,768.13	80,500,827.25	-7.87%
LIFE SAVINGS BANK INC	9,639,927.96	7,711,942.37	2,499,806.08	-5,212,136.29	66,553,066.52	-7.83%
DUMAGUETE CITY DEVELOPMENT BANK INC	41,156,519.67	32,925,215.74	17,300,528.04	-15,624,687.70	216,227,266.65	-7.23%
MALAYAN BANK SAVINGS AND MORT BANK INC	315,155,109.94	252,124,087.95	174,001,180.52	-78,122,907.43	1,097,017,961.88	-7.12%
HIYAS BANKING CORPORATION	29,217,436.77	23,373,949.42	12,588,045.27	-10,785,904.15	161,385,481.39	-6.68%
TONG YANG SAVINGS BANK INC	148,666,358.33	118,933,086.66	94,606,108.54	-24,326,978.12	390,716,494.64	-6.23%
WORLD PARTNERS BANK (A THRIFT BANK)	88,682,976.78	70,946,381.42	64,885,845.59	-6,060,535.83	97,350,763.11	-6.23%
CHINA BANK SAVINGS INC	268,611,569.73	214,889,255.78	157,725,625.07	-57,163,630.71	1,048,818,111.09	-5.45%
VILLAGE BANK INC (A THRIFT BANK)	25,784,609.74	20,627,687.79	17,342,200.42	-3,285,487.37	74,607,045.44	-4.40%
LEMERY SAVINGS & LOAN BANK, INC.	9,750,997.76	7,800,798.21	5,008,824.64	-2,791,973.57	68,914,048.64	-4.05%
RCBC SAVINGS BANK INC	1,828,298,222.91	1,462,638,578.33	1,188,628,847.92	-274,009,730.41	6,899,395,315.46	-3.97%
EAST WEST BANKING CORP	4,648,406,663.92	3,718,725,331.14	3,213,452,982.56	-505,272,348.58	19,118,256,899.86	-2.64%
QUEZON COCONUT BANK INC (A THRIFT BANK)	3,566,888.20	2,853,510.56	1,315,623.91	-1,537,886.65	58,839,248.19	-2.61%
CENTURY SAVINGS BANK CORPORATION	40,116,374.32	32,093,099.46	12,646,730.90	-19,446,368.56	911,497,011.92	-2.13%
1ST VALLEY BANK INC A DEVELOPMENT BANK	191,253,994.34	153,003,195.47	139,386,958.18	-13,616,237.29	1,024,055,944.77	-1.33%
THE PALAWAN BANK (PALAWAN DB) INC	14,232,122.87	11,385,698.30	11,073,497.04	-312,201.26	26,205,515.71	-1.19%
PROGRESS SAVINGS AND LOAN BANK INC	1,269,493.88	1,015,595.10	302,593.35	-713,001.75	83,008,094.43	-0.86%
CITYSTATE SAVINGS BANK INC	42,355,159.83	33,884,127.86	27,682,977.13	-6,201,150.73	771,935,670.79	-0.80%
BANK ONE SAVINGS AND TRUST CORP.	15,304,127.53	12,243,302.02	8,261,602.53	-3,981,699.49	542,290,082.23	-0.73%
TOWER DEVELOPMENT BANK	11,026,032.92	8,820,826.34	8,420,489.57	-400,336.77	112,560,495.06	-0.36%
BATAAN SAVINGS AND LOAN BANK	2,842,178.92	2,273,743.14	2,137,583.98	-136,159.16	71,501,666.95	-0.19%
CITY SAVINGS BANK INC	391,518,685.68	313,214,948.54	309,246,716.78	-3,968,231.76	3,155,445,882.46	-0.13%
MICROFINANCE MAXIMUM SB INC	374,895.56	299,916.45	284,268.86	-15,647.59	45,791,031.87	-0.03%
BDO ELITE SAVINGS BANK INC	0.00	0.00	0.00	0.00	1,592,542,542.62	0.00%
MAYBANK PHILIPPINES INC	1,036,927,723.27	829,542,178.62	842,481,789.38	12,939,610.76	10,219,650,372.27	0.13%
MERCHANTS SAVINGS & LOAN ASSOCIATION INC	4,003,853.45	3,203,082.76	5,580,681.06	2,377,598.30	488,242,200.45	0.49%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,156,048.97	924,839.18	3,334,739.21	2,409,900.03	392,277,101.62	0.61%
ISLA BANK (A THRIFT BANK) INC	0.00	0.00	4,004,580.33	4,004,580.33	648,121,453.33	0.62%
UNIVERSITY SAVINGS BANK INC	48,120,002.84	38,496,002.27	40,166,844.80	1,670,842.53	213,776,498.41	0.78%
BDO PRIVATE BANK, INC.	0.00	0.00	57,350,538.02	57,350,538.02	6,182,595,239.49	0.93%
JP MORGAN CHASE BANK NATIONAL ASSOCIATION	734,885.22	587,908.18	20,443,950.00	19,856,041.82	1,556,917,580.74	1.28%
PHILIPPINE BUSINESS BANK INC A SAVINGS	745,484,055.76	596,387,244.61	688,901,501.15	92,514,256.54	7,110,533,709.94	1.30%
PRIDE STAR DEVELOPMENT BANK INC	6,473,437.72	5,178,750.18	6,090,315.48	911,565.30	69,890,199.26	1.30%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	14,540,829.34	11,632,663.47	20,336,371.31	8,703,707.84	656,548,271.48	1.33%
HSBC SAVINGS BANK (PHILS) INC	52,860,163.68	42,288,130.94	82,454,886.81	40,166,755.87	2,825,066,001.29	1.42%
PHILIPPINE NATIONAL BANK	10,686,422,376.48	8,549,137,901.18	9,706,366,246.18	1,157,228,345.00	75,851,044,114.67	1.53%
SUN SAVINGS BANK INC	7,460,733.37	5,968,586.70	7,624,041.50	1,655,454.80	104,623,612.45	1.58%
ASIA UNITED BANK CORPORATION	1,073,013,698.39	858,410,958.71	1,144,088,009.70	285,677,050.99	18,014,404,268.37	1.59%
BPI GLOBE BANKO INC A SAVINGS BANK	201,814,159.62	161,451,327.70	165,112,327.81	3,661,000.11	222,466,942.65	1.65%
ROBINSONS BANK CORPORATION	421,843,064.16	337,474,451.33	423,135,641.62	85,661,190.29	5,172,343,787.97	1.66%
BANK OF AMERICA N.A.	4.00	3.20	10,250,004.00	10,250,000.80	596,946,705.20	1.72%
PACIFIC ACE SAVINGS BANK INC	2,030,876.69	1,624,701.35	2,958,345.96	1,333,644.61	75,606,367.84	1.76%
CTBC BANK (PHILIPPINES) CORPORATION	388,279,116.49	310,623,293.19	430,854,254.74	120,230,961.55	6,359,806,854.09	1.89%
INTER-ASIA DEVELOPMENT BANK	4,504,816.66	3,603,853.33	4,867,124.76	1,263,271.43	52,276,134.45	2.42%
RIZAL COMMERCIAL BANKING CORP	3,527,950,432.52	2,822,360,346.02	3,953,625,097.54	1,131,264,751.52	45,974,823,788.29	2.46%
DEVELOPMENT BANK OF THE PHILIPPINES	5,639,214,503.34	4,511,371,602.67	5,732,499,835.71	1,221,128,233.04	40,750,998,289.34	3.00%
SECURITY BANK SAVINGS CORPORATION	838,735,420.10	670,988,336.08	704,101,471.09	33,113,135.01	1,063,659,584.16	3.11%
PHILIPPINE POSTAL SAVINGS BANK INC	392,952,272.30	314,361,817.84	337,902,530.38	23,540,712.54	655,747,468.09	3.59%
FIRST CONSOLIDATED BANK INC (A PDB)	443,718,187.84	354,974,550.27	434,987,219.55	80,012,669.28	2,189,760,426.95	3.65%
BPI FAMILY SAVINGS BANK INC	4,370,697,474.80	3,496,557,979.84	4,150,003,240.95	653,445,261.11	17,631,547,816.22	3.71%
SECURITY BANK CORPORATION	679,832,902.36	543,866,321.89	2,273,945,259.84	1,730,078,937.95	40,658,066,501.58	4.26%
OPTIMUM DEVELOPMENT BANK INC	17,197,495.99	13,757,996.79	44,661,296.13	30,903,299.34	713,108,078.00	4.33%
PHILIPPINE VETERANS BANK	960,196,997.18	768,157,597.74	1,040,706,212.22	272,548,614.48	6,209,367,453.06	4.39%
BANK OF COMMERCE	3,903,798,967.05	3,123,039,173.64	3,732,183,897.55	609,144,723.91	13,817,646,787.11	4.41%
PHILIPPINE TRUST COMPANY	1,148,806,061.17	919,044,848.94	1,965,620,159.61	1,046,575,310.67	20,441,716,930.88	5.12%
INTERNATIONALE NEDERLANDEN GROEP BK	89.08	71.26	167,503,858.26	167,503,787.00	3,132,011,905.89	5.35%
CARD SME BANK INC A THRIFT BANK	19,612,047.57	15,689,638.06	30,825,368.13	15,135,730.07	274,434,454.71	5.52%
UCPB SAVINGS BANK	284,342,672.31	227,474,137.85	374,692,441.33	147,218,303.48	2,645,570,961.14	5.56%
CORDILLERA SAVINGS BANK INC	14,750,218.80	11,800,175.04	17,598,795.59	5,798,620.55	103,395,121.60	5.61%
BANK OF THE PHILIPPINE ISLANDS	6,787,741,471.65	5,430,193,177.32	11,214,018,218.15	5,783,825,040.83	99,164,800,917.73	5.83%
SAMPAGUITA SAVINGS BANK INC	22,719,477.39	18,175,581.91	21,561,538.64	3,385,956.73	56,674,898.04	5.97%
PHIL BANK OF COMMUNICATIONS	1,240,984,212.26	992,787,369.81	1,298,386,827.43	305,599,457.62	4,884,526,700.64	6.26%
METROPOLITAN BANK & TRUST CO	3,124,797,642.79	2,499,838,114.23	11,545,125,383.14	9,045,287,268.91	130,413,414,436.45	6.94%
UNION BANK OF THE PHILIPPINES	8,949,967,078.89	7,159,973,663.11	10,325,961,619.49	3,165,987,956.38	40,738,622,254.61	7.77%
LAND BANK OF THE PHILIPPINES	7,317,990,983.02	5,854,392,786.42	11,660,698,316.19	5,806,305,529.77	72,317,804,694.85	8.03%
UNITED COCONUT PLANTERS BANK	4,791,102,973.68	3,832,882,378.94	5,364,105,869.45	1,531,223,490.51	18,923,327,348.00	8.09%
MBANK PHILIPPINES	0.00	0.00	10,322,814.95	10,322,814.95	125,138,767.06	8.25%
CHINA BANKING CORPORATION	4,117,935,690.11	3,294,348,552.09	6,790,729,651.70	3,496,381,099.61	41,787,498,261.93	8.37%
BANK OF CHINA LIMITED-MANILA BRANCH	8,660,895.91	6,928,716.73	69,823,282.30	62,894,565.57	746,794,923.86	8.42%
BDO UNIBANK INC	17,239,114,625.78	13,791,291,700.62	28,022,669,195.37	14,231,377,494.75	163,633,762,916.89	8.70%
PHILIPPINE SAVINGS BANK	3,655,420,772.73	2,924,336,618.18	4,284,860,503.44	1,360,523,885.26	15,121,817,848.77	9.00%
BPI DIRECT SAVINGS BANK INC	121,202,841.76	96,962,273.41	186,860,512.64	89,898,239.23	972,616,889.68	9.24%
HONGKONG & SHANGHAI BANKING CORPORATION	829,841,922.61	663,873,538.09	1,223,836,685.13	559,963,147.04	5,856,722,324.95	9.56%
ANZ BANKING GROUP LTD	23,339,114.85	18,671,291.88	260,589,391.19	241,918,099.31	2,312,184,822.81	10.46%
KOREA EXCHANGE BANK	24,799,833.58	19,839,866.86	85,124,833.55	65,284,966.69	618,026,086.10	10.56%
BANGKOK BANK PUBLIC CO LTD	4,954,155.55	3,963,324.44	143,125,187.50	139,161,863.06	1,170,854,993.88	11.89%
DEUTSCHE BANK AG	0.00	0.00	249,602,970.71	249,602,970.71	2,038,174,079.87	12.25%
STANDARD CHARTERED BANK	1,086,525,758.42	869,220,606.74	1,353,946,955.42	484,726,348.68	3,310,605,442.92	14.64%
THE BANK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	356,910,030.46	356,910,030.46	2,284,664,024.91	15.62%
UNITED OVERSEAS BANK PHILIPPINES	664,931,491.65	531,945,193.32	666,212,932.81	134,267,739.49	700,169,994.52	19.18%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	354,943,963.71	354,943,963.71	1,319,435,712.15	26.90%
MEGA INTERNATIONAL COMMERCIAL BANK CO LTD	0.00	0.00	209,629,759.54	209,629,759.54	757,011,827.28	27.69%
CITIBANK SAVINGS INC	2,308,133,797.81	1,846,507,038.25	2,287,438,110.91	440,931,072.66	1,588,734,573.60	27.75%
CITIBANK, N.A.	844,338,675.22	675,470,940.18	5,304,673,303.96	4,629,202,363.78	7,545,425,770.57	61.35%
Grand Total	118,115,994,900.77	94,492,795,920.62	150,519,060,671.36	56,026,264,750.74	1,000,788,644,101.93	5.60%

Out of the 10 banks highlighted in yellow, 6 banks have been regularly listed as one of the"The Top Distressed Philippine Banks as of December 31, 2013".

Planters Development Bank faces a shortfall of 50.46% of its stated stockholders equity of Php 2.709 billion if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%.  Planters nearly failed in the last half of 2013 but was rescued by its timely acquisition by China Banking Corporation, a much healthier bank, for Php 1.863 billion last September 18, 2013.  This represents a 40% discount to Planters stated book value of Php 3.133 billion as of September 30, 2013 or a 41% premium to their actual book value of Php 1.323 billion (after subtracting for unbooked losses/deferred charges). For more information regarding this, please read a previous blog post: "The Near Death Experience of Planters Development Bank".

We predicted that another bank on this list, The Real Bank, which had a loan loss provision shortfall of 2.46 times its equity as of December 31, 2013, would have to be recapitalized several times over to meet minimum loan loss provisions on its Gross NPLs.  Just a week ago, the bank was acquired by BDO Unibank, the largest bank in the country, and now has the financial resources to undertake this much needed recapitalization.