Are Philippine Real Estate Loans Out of Whack? - Updated as of December 2014

It sure looks that way, judging from this chart:

It looks like Real Estate and Construction Loans as a percentage of Total Loan Portfolio (TLP) rocketed past its historical range of 12.6% to 16.6% of TLP sometime in 2011.  That ratio peaked at 20.55% as of September 2013 but has leveled off to 18.61% of TLP as of December 2014.

Now, are we up to the levels of the previous real estate boom (as in mid 1990s to 1997)?  We don't know.  BSP data only goes as far back as 1999 when the previous real estate bubble had already burst.

Related Blog Posts:

Has the Philippine Real Estate Bubble Already Burst?

Is There a Real Estate Bubble in the Philippines?

Are Philippine Real Estate Loans Out of Whack?

Do Philippine House Prices Have More Room to Run?

Philippine House Prices continued their relentless climb in the 4th quarter of 2014, climbing 1.03% over the third quarter. To date, prices have risen over 110.23% since the fourth quarter of 2004, outpacing inflation which has caused prices to climb by a corresponding 58.21% for the same period.

Given this substantial increase, do Philippine House Prices still have more room to run?

On the face of it, the answer is yes.  Why? Because House Price Cost per Sq. M. amounts to just US$ 3,084, well below the Asian average of US$ 8,257.  Out of 10 countries listed in the Global Property Guide, Philippine House Prices rank the third lowest in the region, just ahead of Cambodia (US$ 2,913) and just behind Thailand (US$ 3,952).

According to Global Property Guide, these prices are for residential properties in the center of the most important city of each country - either the administrative or financial capital of each country.

Source: Global Property Guide


But these prices ignore affordability.  Different countries have different income levels.  Therefore, countries that have a higher income on a per capita basis can afford pricier properties.


Unfortunately, there is a dearth of data when it comes to a city by city income statistics.  The closest and most widely available data is GDP per capita, the latest of which is for the year 2013.

Source: www.worldbank.org


Based on this data, the Philippines has the third lowest GDP per capita for 2013: US$ 2,765, ahead of India (US$ 1,499) but below Indonesia (US$ 3,475).  Naturally, both Singapore and Hong Kong boast of the highest incomes and therefore have the highest property prices.

Using GDP per capita as a proxy for income, on a house price to income ratio, the Philippines does not look so reasonably priced.  After India (764 times income) and Cambodia (289 times income), the Philippines house price to income ratio comes in at 112 times income.  This is higher even that bubblelicious China, which comes in at 102 times income.  The Philippine House Price to Income Ratio is double the regional average of 50 times income.

Country	Housing Cost Per Sq. M. in Prime CBD (in USD $)	Cost of 100 Sq. M. Residential Condo in CBD (in USD $)	2013 GDP Per Capita (Current USD $)	Residential Price/GDP Per Capita (in USD $)
Cambodia	2,913	291,300	1,007	289
China	6,932	693,200	6,807	102
Hong Kong	22,814	2,281,400	38,124	60
India	11,455	1,145,500	1,499	764
Indonesia	2,766	276,600	3,475	80
Japan	10,784	1,078,400	38,634	28
Malaysia	2,616	261,600	10,538	25
Philippines	3,084	308,400	2,765	112
Singapore	15,251	1,525,100	55,183	28
Thailand	3,952	395,200	5,779	68
Average	8,257	825,670	16,381	50
Source:	Global Property Guide

According to the Global Property Guide, Low Middle Income and Low Income countries like India and Cambodia generally have higher price to income ratios.

On a global basis, the Philippines has the third highest House Price to Income Ratio, behind India (764 times income), Cambodia (289 times income), Gambia (137 times income). It is tied with Madagascar (112 times income) and just ahead of Russia (108 times income).  Among the Lower Middle Income countries, the Philippines ranks second behind India and just ahead of Indonesia (80 times income).

Country	Housing Cost Per Sq. M. in Prime CBD (in USD $)	Cost of 100 Sq. M. Residential Condo in CBD (in USD $)	2013 GDP Per Capita (Current USD $)	Residential Price/GDP Per Capita (in USD $)	Income Class
Russia	15,772	1,577,187	14,612	108	High Income
United Kingdom	33,993	3,399,339	41,788	81	High Income
Hong Kong	22,814	2,281,400	38,124	60	High Income
France	18,128	1,812,848	42,503	43	High Income
USA	18,499	1,849,900	53,042	35	High Income
Japan	10,784	1,078,400	38,634	28	High Income
Singapore	15,251	1,525,100	55,183	28	High Income
Israel	9,511	951,100	36,051	26	High Income
Antigua	3,501	350,100	13,342	26	High Income
St. Kitts and Nevis	3,496	349,600	14,133	25	High Income
Italy	7,882	788,195	35,926	22	High Income
Switzerland	15,028	1,502,754	84,815	18	High Income
Chile	2,749	274,900	15,732	17	High Income
Finland	8,259	825,943	49,147	17	High Income
Bahamas	3,632	363,200	22,312	16	High Income
Canada	8,288	828,800	51,958	16	High Income
Uruguay	2,562	256,200	16,351	16	High Income
Sweden	9,292	929,219	60,430	15	High Income
Spain	4,575	457,499	29,863	15	High Income
New Zealand	5,611	561,100	41,556	14	High Income
Netherlands	6,522	652,221	50,793	13	High Income
Trinidad & Tobago	2,334	233,400	18,373	13	High Income
Germany	5,420	542,033	46,269	12	High Income
United Arab Emirates	5,037	503,700	43,049	12	High Income
Australia	7,626	762,600	67,458	11	High Income
Ireland	5,524	552,401	50,503	11	High Income
Denmark	5,711	571,142	59,832	10	High Income
Puerto Rico	1,365	136,500	28,529	5	High Income
China	6,932	693,200	6,807	102	Upper Middle Income
Thailand	3,952	395,200	5,779	68	Upper Middle Income
South Africa	4,101	410,100	6,618	62	Upper Middle Income
Belize	2,322	232,200	4,894	47	Upper Middle Income
Lebanon	3,693	369,300	9,928	37	Upper Middle Income
Dominican Republic	2,078	207,800	5,879	35	Upper Middle Income
Brazil	3,751	375,100	11,208	33	Upper Middle Income
Colombia	2,379	237,900	7,831	30	Upper Middle Income
Peru	1,810	181,000	6,662	27	Upper Middle Income
Jamaica	1,404	140,400	5,290	27	Upper Middle Income
Mexico	2,635	263,500	10,307	26	Upper Middle Income
St. Lucia	1,860	186,000	7,328	25	Upper Middle Income
Malaysia	2,616	261,600	10,538	25	Upper Middle Income
Jordan	1,282	128,200	5,214	25	Upper Middle Income
Ecuador	1,278	127,800	6,003	21	Upper Middle Income
Argentina	2,813	281,300	14,715	19	Upper Middle Income
Panama	2,001	200,100	11,037	18	Upper Middle Income
Costa Rica	1,642	164,200	10,185	16	Upper Middle Income
India	11,455	1,145,500	1,499	764	Lower Middle Income
Philippines	3,084	308,400	2,765	112	Lower Middle Income
Indonesia	2,766	276,600	3,475	80	Lower Middle Income
Nicaragua	1,342	134,200	1,851	72	Lower Middle Income
Morocco	2,015	201,500	3,093	65	Lower Middle Income
Cape Verde	1,300	130,000	3,767	35	Lower Middle Income
El Salvador	1,193	119,300	3,826	31	Lower Middle Income
Egypt	831	83,100	3,315	25	Lower Middle Income
Cambodia	2,913	291,300	1,007	289	Low Income
Gambia	667	66,700	489	137	Low Income
Madagascar	520	52,000	463	112	Low Income
Tanzania	700	70,000	695	101	Low Income
Kenya	900	90,000	1,246	72	Low Income

Source: www.worldbank.org

So do Philippine Housing Prices still have more room to run?  Maybe so.  But the odds looked stacked against it.

Singapore, Malaysia, and Thailand Post Flat to Declining Housing Prices, Can the Philippines and Indonesia be Not Far Behind? - 3rd Qtr 2014

Almost all countries discussed in this blog post, with the exception of Thailand, have been experiencing rapid growth in home prices that have outstripped inflation by a wide margin.  The gap between home prices and their inflation adjusted levels are at the widest ever, particularly in Singapore and the Philippines.


Singapore


Singapore's home prices slid for four straight quarters, which, according to Bloomberg, is the longest losing streak in five years.  Home prices are still  81% above their year end 2004 levels. Overall prices levels, as measured by inflation have just increased by 30.37% since year end 2004.  In other words, for the past ten years, Singaporean home prices have outpaced inflation by more than 50 percentage points.

Malaysia


Neighboring Malaysia's House Price Index actually topped out at 135.44% in the second quarter of 2011 and has posted a 3.37% decline since then to 130.87% as of the fourth quarter of 2013.  In the first quarter of 2014, home prices rebounded to 133.03% and have continued to march higher to 134.22% as of the third quarter 2014, reducing the overall decline from the peak to just 1.02%.  Home prices are just 34.22% above their year end 2004 levels.  General price levels are only around six percentage points lower, at 28.26% above their year end 2004 levels.

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. In the third quarter of 2014, home prices have rebounded to 106.23%, or 6.23% higher than its year-end 2004 levels, way below its expected inflation adjusted levels. General Price levels are 34.68% above their year end 2004 levels.

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.  In the third quarter of 2014, home prices have climbed an additional 6.64% to reach 133.75%.  Since the first quarter of 2007, home prices have risen 33.75%. Indonesian Home Prices, like Thailand, have lagged inflation since 2007.

Philippines


Philippine house price index stands at 208.08% at the end of the third quarter 2014 or over 108.08% above their year-end 2004 levels.  Philippine home prices have posted the largest 10 year gains among all the countries considered in this blog post.  Like Singapore, Philippine home prices have outstripped inflation by more than fifty percentage points.  Like Indonesia, Philippine 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.

Source: Global Property Guide, World Bank, Trading Economics

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - September 30, 2014

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of September 30, 2014", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 2.89% as of September 30, 2014, is below the historic average of 4.27% 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 48 banks (highlighted in yellow) fall into this deficiency.

Philippine Banking System
NPL Coverage Ratio
September 30, 2014
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
BATAAN DEVELOPMENT BANK	16,310,231.15	71,137,540.16	22.93%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	207,334,096.92	902,011,403.70	22.99%
PROGRESS SAVINGS AND LOAN BANK INC	278,991.99	1,207,809.04	23.10%
EQUICOM SAVINGS BANK INC	85,799,601.16	356,698,473.09	24.05%
METRO CEBU PUBLIC SAVINGS BANK	5,182,294.74	20,739,588.38	24.99%
NORTHPOINT DEV'T BANK INC	32,626,356.50	121,594,798.43	26.83%
WEALTH DEVELOPMENT BANK CORPORATION	54,898,634.82	194,938,216.83	28.16%
PRODUCERS SAVINGS BANK CORPORATION	85,141,536.43	288,404,619.03	29.52%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,009,814.41	3,330,448.37	30.32%
LIFE SAVINGS BANK INC	2,869,806.08	9,403,531.57	30.52%
LUZON DEVELOPMENT BANK	85,246,042.73	278,070,478.36	30.66%
WORLD PARTNERS BANK (A THRIFT BANK)	58,315,135.85	186,102,844.57	31.33%
COMSAVINGS BANK	60,017,583.39	191,248,204.56	31.38%
CENTURY SAVINGS BANK CORPORATION	12,091,841.55	36,165,716.65	33.43%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	15,538,217.16	45,545,701.47	34.12%
ALLIED SAVINGS BANK	151,182,757.90	414,606,169.75	36.46%
CITYSTATE SAVINGS BANK INC	37,497,328.95	102,664,700.25	36.52%
PLANTERS DEVELOPMENT BANK	1,209,268,505.48	3,224,949,677.84	37.50%
1ST VALLEY BANK INC A DEVELOPMENT BANK	224,337,385.92	577,450,943.39	38.85%
CHINA BANK SAVINGS INC	318,186,776.72	791,976,981.61	40.18%
MARITIME SAVINGS BANK CORPORATION	5,852,557.72	13,475,889.24	43.43%
PAMPANGA DEVELOPMENT BANK	19,175,061.24	44,112,193.34	43.47%
DUMAGUETE CITY DEV BANK INC	17,300,528.04	38,450,305.29	44.99%
HIYAS BANKING CORPORATION	6,830,066.93	14,943,655.86	45.71%
BUSINESS AND CONSUMERS BANK (A DB)	6,807,895.86	14,741,449.33	46.18%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	39,662,025.14	84,129,787.26	47.14%
MALAYAN BANK SAVINGS AND MORT BANK INC	286,463,527.92	602,727,144.09	47.53%
LEGAZPI SAVINGS BANK INC	175,696,750.59	358,997,214.80	48.94%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	13,103,723.55	26,522,198.74	49.41%
TOWER DEVELOPMENT BANK	7,246,943.57	14,128,146.31	51.29%
FARMERS SAVINGS & LOAN BANK INC	28,748,344.32	55,076,146.41	52.20%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	59,473,510.85	106,392,180.30	55.90%
MALASIQUI PROGRESSIVE SLB, INC	8,160,596.38	14,293,443.25	57.09%
MAYBANK PHILIPPINES INC	903,030,152.09	1,576,610,671.13	57.28%
STANDARD CHARTERED BANK	1,563,147,723.04	2,709,206,512.13	57.70%
EAST WEST BANKING CORP	2,933,109,010.02	4,836,469,856.36	60.65%
BANK ONE SAVINGS AND TRUST CORP.	9,533,602.53	15,304,127.53	62.29%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	564,406,890.92	871,517,086.54	64.76%
RCBC SAVINGS BANK INC	1,593,628,847.92	2,448,630,329.66	65.08%
ENTERPRISE BANK INC (A THRIFT BANK)	50,072,039.57	76,451,890.54	65.49%
PRIDE STAR DEVELOPMENT BANK INC	6,090,315.48	8,300,262.62	73.37%
SAMPAGUITA SAVINGS BANK INC	20,096,752.57	26,785,290.77	75.03%
PHIL POSTAL SAVINGS BANK INC	374,122,256.94	492,362,764.41	75.99%
UNITED COCONUT PLANTERS BANK	4,406,329,154.24	5,636,880,749.10	78.17%
TONGYANG SAVINGS BANK INC	88,615,664.32	112,567,867.52	78.72%
CORDILLERA SAVINGS BANK INC	14,763,133.27	18,647,760.26	79.17%
INTER-ASIA DEVELOPMENT BANK	6,835,032.93	8,554,783.72	79.90%
CITY SAVINGS BANK INC	567,785,781.81	709,780,523.40	79.99%
VILLAGE BANK INC (A THRIFT BANK)	17,342,200.42	20,965,006.83	82.72%
BATAAN SAVINGS AND LOAN BANK	2,137,583.98	2,502,930.36	85.40%
LEMERY SAVINGS & LOAN BANK, INC.	5,008,824.64	5,728,960.87	87.43%
ROBINSONS BANK CORPORATION	456,711,205.14	507,835,084.60	89.93%
PHIL BANK OF COMMUNICATIONS	1,377,017,428.35	1,520,459,210.68	90.57%
THE PALAWAN BANK (PALAWAN DB) INC	12,921,093.83	14,045,823.30	91.99%
BPI FAMILY SAVINGS BANK INC	4,718,401,272.11	5,108,776,708.58	92.36%
SECURITY BANK SAVINGS CORPORATION	600,748,863.61	649,418,868.91	92.51%
SUN SAVINGS BANK INC	9,074,163.32	9,541,892.70	95.10%
PHIL NATIONAL BANK	10,164,425,526.17	10,527,433,340.17	96.55%
BANK OF COMMERCE	2,844,108,907.43	2,820,205,869.67	100.85%
UNITED OVERSEAS BANK PHILIPPINES	671,508,766.56	665,452,236.65	100.91%
DEVELOPMENT BANK OF THE PHIL	5,861,632,053.27	5,808,528,843.60	100.91%
FIRST CONSOLIDATED BANK INC (A PDB)	474,856,715.22	469,987,187.56	101.04%
HONGKONG & SHANGHAI BANKING CORP	1,237,310,523.61	1,219,293,790.10	101.48%
UNION BANK OF THE PHILS	10,770,009,648.23	10,076,556,506.11	106.88%
UCPB SAVINGS BANK	526,450,598.25	475,471,372.29	110.72%
CTBC BANK (PHILIPPINES) CORP	489,535,143.69	439,807,782.14	111.31%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	724,501,501.15	616,983,187.60	117.43%
PHIL SAVINGS BANK	4,283,406,877.75	3,601,618,439.11	118.93%
RIZAL COMM'L BANKING CORP	2,751,732,463.02	2,143,581,902.58	128.37%
PACIFIC ACE SAVINGS BANK INC	2,747,624.10	2,030,877.00	135.29%
ASIA UNITED BANK CORPORATION	1,269,388,984.28	937,915,220.59	135.34%
UNIVERSITY SAVINGS BANK INC	41,976,227.15	28,498,734.87	147.29%
LAND BANK OF THE PHILIPPINES	11,144,958,925.41	7,477,389,676.01	149.05%
BANK OF THE PHIL ISLANDS	11,812,909,980.62	7,842,038,110.95	150.64%
CHINA BANKING CORP	6,745,223,114.96	4,415,291,462.72	152.77%
PHILIPPINE VETERANS BANK	1,107,131,906.80	703,338,366.80	157.41%
CARD SME BANK INC A THRIFT BANK	49,352,115.32	30,567,692.70	161.45%
MERCHANTS SAVINGS & LOAN ASSN INC	10,392,306.35	6,371,298.43	163.11%
BPI DIRECT SAVINGS BANK INC	192,581,841.99	116,040,563.44	165.96%
BDO UNIBANK INC	29,140,904,568.08	16,992,547,843.11	171.49%
PHIL TRUST COMPANY	2,035,551,839.11	1,104,441,940.64	184.31%
BANGKOK BANK PUBLIC CO LTD	179,561,062.50	87,029,546.70	206.32%
HSBC SAVINGS BANK(PHILS) INC	100,031,775.99	44,015,977.19	227.26%
CITIBANK, N.A.	7,460,468,783.47	2,887,177,872.02	258.40%
SECURITY BANK CORP	3,124,108,147.73	1,106,216,853.17	282.41%
OPTIMUM DEVELOPMENT BANK INC	44,568,839.06	15,721,868.56	283.48%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	3,308,123.65	1,092,048.97	302.93%
KOREA EXCHANGE BANK	76,320,936.39	23,550,180.50	324.08%
METROPOLITAN BANK & TCO	11,990,057,174.57	2,746,871,596.00	436.50%
BANK OF CHINA LIMITED-MANILA BRANCH	111,155,603.35	8,660,895.91	1283.42%
ANZ BANKING GROUP LTD	323,694,551.65	23,339,114.85	1386.92%
JP MORGAN CHASE BANK NATIONAL ASSN.	20,134,625.00	734,885.22	2739.83%
INTERNATIONALE NEDERLANDEN GROEP BK	91,276,110.65	91.75	99483499.35%
BANK OF AMERICA N.A.	18,300,004.00	4.00	457500100.00%
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	88,546,538.02	0.00	NA
DEUTSCHE BANK AG	253,968,682.99	0.00	NA
ISLA BANK(A THRIFT BANK) INC	4,290,580.33	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	225,119,938.38	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	361,954,599.06	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	366,210,030.46	0.00	NA
Grand Total	152,834,257,730.78	122,059,385,743.47	125.21%

Source: www.bsp.gov.ph

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 14 banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
September 30, 2014
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
COMSAVINGS BANK	191,248,204.56	152,998,563.65	60,017,583.39	-92,980,980.26	69,222,748.79	-134.32%
WORLD PARTNERS BANK (A THRIFT BANK)	186,102,844.57	148,882,275.66	58,315,135.85	-90,567,139.81	78,687,479.68	-115.10%
BATAAN DEVELOPMENT BANK	71,137,540.16	56,910,032.13	16,310,231.15	-40,599,800.98	70,712,367.08	-57.42%
PLANTERS DEVELOPMENT BANK	3,224,949,677.84	2,579,959,742.27	1,209,268,505.48	-1,370,691,236.79	2,424,611,329.33	-56.53%
STANDARD CHARTERED BANK	2,709,206,512.13	2,167,365,209.70	1,563,147,723.04	-604,217,486.66	1,264,872,660.95	-47.77%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	84,129,787.26	67,303,829.81	39,662,025.14	-27,641,804.67	73,316,907.70	-37.70%
EQUICOM SAVINGS BANK INC	356,698,473.09	285,358,778.47	85,799,601.16	-199,559,177.31	550,284,276.11	-36.26%
LEGAZPI SAVINGS BANK INC	358,997,214.80	287,197,771.84	175,696,750.59	-111,501,021.25	329,305,712.63	-33.86%
NORTHPOINT DEV'T BANK INC	121,594,798.43	97,275,838.74	32,626,356.50	-64,649,482.24	191,408,301.61	-33.78%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	902,011,403.70	721,609,122.96	207,334,096.92	-514,275,026.04	1,858,320,365.75	-27.67%
WEALTH DEVELOPMENT BANK CORPORATION	194,938,216.83	155,950,573.46	54,898,634.82	-101,051,938.64	378,812,404.40	-26.68%
LUZON DEVELOPMENT BANK	278,070,478.36	222,456,382.69	85,246,042.73	-137,210,339.96	515,100,329.41	-26.64%
MALAYAN BANK SAVINGS AND MORT BANK INC	602,727,144.09	482,181,715.27	286,463,527.92	-195,718,187.35	879,633,981.28	-22.25%
1ST VALLEY BANK INC A DEVELOPMENT BANK	577,450,943.39	461,960,754.71	224,337,385.92	-237,623,368.79	1,129,443,108.23	-21.04%
METRO CEBU PUBLIC SAVINGS BANK	20,739,588.38	16,591,670.70	5,182,294.74	-11,409,375.96	64,097,759.85	-17.80%
ALLIED SAVINGS BANK	414,606,169.75	331,684,935.80	151,182,757.90	-180,502,177.90	1,048,573,729.56	-17.21%
CHINA BANK SAVINGS INC	791,976,981.61	633,581,585.29	318,186,776.72	-315,394,808.57	2,236,465,308.59	-14.10%
FARMERS SAVINGS & LOAN BANK INC	55,076,146.41	44,060,917.13	28,748,344.32	-15,312,572.81	114,330,836.72	-13.39%
PAMPANGA DEVELOPMENT BANK	44,112,193.34	35,289,754.67	19,175,061.24	-16,114,693.43	126,303,165.96	-12.76%
PRODUCERS SAVINGS BANK CORPORATION	288,404,619.03	230,723,695.22	85,141,536.43	-145,582,158.79	1,231,270,647.58	-11.82%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	26,522,198.74	21,217,758.99	13,103,723.55	-8,114,035.44	90,647,604.74	-8.95%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	106,392,180.30	85,113,744.24	59,473,510.85	-25,640,233.39	295,118,495.89	-8.69%
MARITIME SAVINGS BANK CORPORATION	13,475,889.24	10,780,711.39	5,852,557.72	-4,928,153.67	63,763,139.24	-7.73%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	871,517,086.54	697,213,669.23	564,406,890.92	-132,806,778.31	1,865,596,802.00	-7.12%
LIFE SAVINGS BANK INC	9,403,531.57	7,522,825.26	2,869,806.08	-4,653,019.18	70,177,045.49	-6.63%
CITYSTATE SAVINGS BANK INC	102,664,700.25	82,131,760.20	37,497,328.95	-44,634,431.25	700,119,523.27	-6.38%
MALASIQUI PROGRESSIVE SLB, INC	14,293,443.25	11,434,754.60	8,160,596.38	-3,274,158.22	52,888,957.33	-6.19%
DUMAGUETE CITY DEV BANK INC	38,450,305.29	30,760,244.23	17,300,528.04	-13,459,716.19	220,596,400.46	-6.10%
BUSINESS AND CONSUMERS BANK (A DB)	14,741,449.33	11,793,159.46	6,807,895.86	-4,985,263.60	85,888,838.90	-5.80%
ENTERPRISE BANK INC (A THRIFT BANK)	76,451,890.54	61,161,512.43	50,072,039.57	-11,089,472.86	217,353,879.81	-5.10%
RCBC SAVINGS BANK INC	2,448,630,329.66	1,958,904,263.73	1,593,628,847.92	-365,275,415.81	7,193,635,098.07	-5.08%
EAST WEST BANKING CORP	4,836,469,856.36	3,869,175,885.09	2,933,109,010.02	-936,066,875.07	20,436,978,166.94	-4.58%
TOWER DEVELOPMENT BANK	14,128,146.31	11,302,517.05	7,246,943.57	-4,055,573.48	116,486,906.49	-3.48%
MAYBANK PHILIPPINES INC	1,576,610,671.13	1,261,288,536.90	903,030,152.09	-358,258,384.81	10,364,375,304.28	-3.46%
HIYAS BANKING CORPORATION	14,943,655.86	11,954,924.69	6,830,066.93	-5,124,857.76	158,785,098.12	-3.23%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	45,545,701.47	36,436,561.18	15,538,217.16	-20,898,344.02	665,414,631.61	-3.14%
QUEZON COCONUT BANK INC (A THRIFT BANK)	3,330,448.37	2,664,358.70	1,009,814.41	-1,654,544.29	59,595,721.55	-2.78%
SAMPAGUITA SAVINGS BANK INC	26,785,290.77	21,428,232.62	20,096,752.57	-1,331,480.05	55,199,801.01	-2.41%
PHIL POSTAL SAVINGS BANK INC	492,362,764.41	393,890,211.53	374,122,256.94	-19,767,954.59	1,010,607,180.71	-1.96%
CENTURY SAVINGS BANK CORPORATION	36,165,716.65	28,932,573.32	12,091,841.55	-16,840,731.77	925,257,473.56	-1.82%
PROGRESS SAVINGS AND LOAN BANK INC	1,207,809.04	966,247.23	278,991.99	-687,255.24	83,929,539.02	-0.82%
PRIDE STAR DEVELOPMENT BANK INC	8,300,262.62	6,640,210.10	6,090,315.48	-549,894.62	74,716,356.94	-0.74%
BANK ONE SAVINGS AND TRUST CORP.	15,304,127.53	12,243,302.02	9,533,602.53	-2,709,699.49	555,631,269.06	-0.49%
UNITED COCONUT PLANTERS BANK	5,636,880,749.10	4,509,504,599.28	4,406,329,154.24	-103,175,445.04	21,317,547,899.98	-0.48%
TONGYANG SAVINGS BANK INC	112,567,867.52	90,054,294.02	88,615,664.32	-1,438,629.70	386,852,858.01	-0.37%
CORDILLERA SAVINGS BANK INC	18,647,760.26	14,918,208.21	14,763,133.27	-155,074.94	111,027,950.55	-0.14%
INTER-ASIA DEVELOPMENT BANK	8,554,783.72	6,843,826.98	6,835,032.93	-8,794.05	52,596,011.86	-0.02%
CITY SAVINGS BANK INC	709,780,523.40	567,824,418.72	567,785,781.81	-38,636.91	5,391,556,126.25	0.00%
BDO ELITE SAVINGS BANK INC	0.00	0.00	0.00	0.00	802,242,615.73	0.00%
BATAAN SAVINGS AND LOAN BANK	2,502,930.36	2,002,344.29	2,137,583.98	135,239.69	63,109,094.36	0.21%
LEMERY SAVINGS & LOAN BANK, INC.	5,728,960.87	4,583,168.70	5,008,824.64	425,655.94	73,724,475.80	0.58%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,092,048.97	873,639.18	3,308,123.65	2,434,484.47	384,204,155.99	0.63%
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	4,290,580.33	4,290,580.33	653,820,843.86	0.66%
VILLAGE BANK INC (A THRIFT BANK)	20,965,006.83	16,772,005.46	17,342,200.42	570,194.96	74,873,808.38	0.76%
ROBINSONS BANK CORPORATION	507,835,084.60	406,268,067.68	456,711,205.14	50,443,137.46	5,454,367,360.12	0.92%
BANK OF AMERICA N.A.	4.00	3.20	18,300,004.00	18,300,000.80	1,753,141,705.20	1.04%
MERCHANTS SAVINGS & LOAN ASSN INC	6,371,298.43	5,097,038.74	10,392,306.35	5,295,267.61	434,404,037.14	1.22%
SUN SAVINGS BANK INC	9,541,892.70	7,633,514.16	9,074,163.32	1,440,649.16	101,894,305.23	1.41%
PACIFIC ACE SAVINGS BANK INC	2,030,877.00	1,624,701.60	2,747,624.10	1,122,922.50	79,121,330.06	1.42%
BDO PRIVATE BANK, INC.	0.00	0.00	88,546,538.02	88,546,538.02	5,614,288,374.61	1.58%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	587,908.18	20,134,625.00	19,546,716.82	1,078,219,324.19	1.81%
PHIL NATIONAL BANK	10,527,433,340.17	8,421,946,672.14	10,164,425,526.17	1,742,478,854.03	88,868,018,988.94	1.96%
RIZAL COMM'L BANKING CORP	2,143,581,902.58	1,714,865,522.06	2,751,732,463.02	1,036,866,940.96	48,794,404,782.06	2.12%
CTBC BANK (PHILIPPINES) CORP	439,807,782.14	351,846,225.71	489,535,143.69	137,688,917.98	6,466,579,841.74	2.13%
PHIL BANK OF COMMUNICATIONS	1,520,459,210.68	1,216,367,368.54	1,377,017,428.35	160,650,059.81	6,833,182,382.81	2.35%
HSBC SAVINGS BANK(PHILS) INC	44,015,977.19	35,212,781.75	100,031,775.99	64,818,994.24	2,649,764,864.08	2.45%
ASIA UNITED BANK CORPORATION	937,915,220.59	750,332,176.47	1,269,388,984.28	519,056,807.81	20,051,790,004.05	2.59%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	616,983,187.60	493,586,550.08	724,501,501.15	230,914,951.07	7,894,206,774.17	2.93%
DEVELOPMENT BANK OF THE PHIL	5,808,528,843.60	4,646,823,074.88	5,861,632,053.27	1,214,808,978.39	40,726,604,057.76	2.98%
BPI FAMILY SAVINGS BANK INC	5,108,776,708.58	4,087,021,366.86	4,718,401,272.11	631,379,905.25	20,572,953,194.21	3.07%
INTERNATIONALE NEDERLANDEN GROEP BK	91.75	73.40	91,276,110.65	91,276,037.25	2,681,154,441.05	3.40%
BANGKOK BANK PUBLIC CO LTD	87,029,546.70	69,623,637.36	179,561,062.50	109,937,425.14	3,106,292,084.64	3.54%
FIRST CONSOLIDATED BANK INC (A PDB)	469,987,187.56	375,989,750.05	474,856,715.22	98,866,965.17	2,766,410,575.43	3.57%
BANK OF THE PHIL ISLANDS	7,842,038,110.95	6,273,630,488.76	11,812,909,980.62	5,539,279,491.86	132,317,938,062.36	4.19%
BANK OF COMMERCE	2,820,205,869.67	2,256,164,695.74	2,844,108,907.43	587,944,211.69	13,769,767,063.00	4.27%
HONGKONG & SHANGHAI BANKING CORP	1,219,293,790.10	975,435,032.08	1,237,310,523.61	261,875,491.53	6,132,159,720.03	4.27%
OPTIMUM DEVELOPMENT BANK INC	15,721,868.56	12,577,494.85	44,568,839.06	31,991,344.21	721,547,909.23	4.43%
UNIVERSITY SAVINGS BANK INC	28,498,734.87	22,798,987.90	41,976,227.15	19,177,239.25	404,096,486.79	4.75%
SECURITY BANK CORP	1,106,216,853.17	884,973,482.54	3,124,108,147.73	2,239,134,665.19	45,954,032,891.93	4.87%
UCPB SAVINGS BANK	475,471,372.29	380,377,097.83	526,450,598.25	146,073,500.42	2,886,382,931.52	5.06%
PHIL TRUST COMPANY	1,104,441,940.64	883,553,552.51	2,035,551,839.11	1,151,998,286.60	21,518,546,940.85	5.35%
THE PALAWAN BANK (PALAWAN DB) INC	14,045,823.30	11,236,658.64	12,921,093.83	1,684,435.19	30,345,719.66	5.55%
UNION BANK OF THE PHILS	10,076,556,506.11	8,061,245,204.89	10,770,009,648.23	2,708,764,443.34	44,068,813,643.34	6.15%
CHINA BANKING CORP	4,415,291,462.72	3,532,233,170.18	6,745,223,114.96	3,212,989,944.78	50,506,800,932.44	6.36%
LAND BANK OF THE PHILIPPINES	7,477,389,676.01	5,981,911,740.81	11,144,958,925.41	5,163,047,184.60	72,083,156,068.63	7.16%
METROPOLITAN BANK & TCO	2,746,871,596.00	2,197,497,276.80	11,990,057,174.57	9,792,559,897.77	134,461,065,936.80	7.28%
CARD SME BANK INC A THRIFT BANK	30,567,692.70	24,454,154.16	49,352,115.32	24,897,961.16	340,293,067.27	7.32%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	366,210,030.46	366,210,030.46	4,687,098,603.10	7.81%
SECURITY BANK SAVINGS CORPORATION	649,418,868.91	519,535,095.13	600,748,863.61	81,213,768.48	1,033,570,802.58	7.86%
BPI DIRECT SAVINGS BANK INC	116,040,563.44	92,832,450.75	192,581,841.99	99,749,391.24	1,175,988,987.06	8.48%
PHIL SAVINGS BANK	3,601,618,439.11	2,881,294,751.29	4,283,406,877.75	1,402,112,126.46	16,413,147,642.23	8.54%
ANZ BANKING GROUP LTD	23,339,114.85	18,671,291.88	323,694,551.65	305,023,259.77	3,388,247,532.70	9.00%
BDO UNIBANK INC	16,992,547,843.11	13,594,038,274.49	29,140,904,568.08	15,546,866,293.59	172,404,002,715.04	9.02%
PHILIPPINE VETERANS BANK	703,338,366.80	562,670,693.44	1,107,131,906.80	544,461,213.36	5,888,234,118.73	9.25%
KOREA EXCHANGE BANK	23,550,180.50	18,840,144.40	76,320,936.39	57,480,791.99	582,440,130.65	9.87%
UNITED OVERSEAS BANK PHILIPPINES	665,452,236.65	532,361,789.32	671,508,766.56	139,146,977.24	1,269,546,429.94	10.96%
BANK OF CHINA LIMITED-MANILA BRANCH	8,660,895.91	6,928,716.73	111,155,603.35	104,226,886.62	929,613,700.63	11.21%
MEGA INT'L COMM'L BANK CO LTD	0.00	0.00	225,119,938.38	225,119,938.38	1,977,544,129.71	11.38%
DEUTSCHE BANK AG	0.00	0.00	253,968,682.99	253,968,682.99	2,031,004,038.17	12.50%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	361,954,599.06	361,954,599.06	2,757,822,859.05	13.12%
CITIBANK, N.A.	2,887,177,872.02	2,309,742,297.62	7,460,468,783.47	5,150,726,485.85	7,491,778,601.40	68.75%
Grand Total	122,059,385,743.47	97,647,508,594.78	152,834,257,730.78	55,186,749,136.00	1,102,460,878,588.80	5.01%

Source: www.bsp.gov.ph

Out of the 14 banks highlighted in yellow, 9 banks have been regularly listed as one of the"The Top Distressed Philippine Banks as of September 30, 2014".

Both Comsavings Bank and World Partners Bank would need to recapitalize the bank by more than 100% if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%.

Planters Development Bank faces a shortfall of 56.53% of its stated stockholders equity of Php 2.425 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 when it was acquired 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".