Stress Has Been Building Up in the Philippine Real Estate Sector

The information presented here has been out for some time now - for at least six months.  The Philippine Real Estate Sector is already showing signs of strain - particularly in the area of in-house real estate financing wherein real estate developers finance their customer's purchases of real estate in the form of Installment Contract Receivables.

We have documented how the so-called real estate bubble has already burst for 8990 Holdings (otherwise known by its ticker HOUSE).  We have also shown how the bursting of the bubble has started to affect Vista Land & Lifescapes (VLL), 8990 Holdings' nearest competitor in the Socialized Housing space.

What is not known is how the slowdown has affected other publicly-listed Philippine Real Estate companies.

Thanks to company disclosures in www.edge.pse.com.ph, now we know.  And it doesn't look great.

We do know that, for the past three years, Past Due Real Estate Receivables as a percentage of Total Real Estate Receivables have been climbing significantly not just for HOUSE and VLL but also for inter-related companies SM Investments Corporation (SM) and SM Prime Holdings (SMPH).  In fact, SMPH holds the dubious distinction of having the highest percentage of past due real estate receivables which, at 22.16% as of 2014, dwarfs that of HOUSE and VLL.  Even Century Properties (CPG), which registered 0% past due receivables for 2012 and 2013 is showing that 1.02% of its receivables are now past due.  

As a result, impaired real estate receivables have noticeably jumped, not just for HOUSE but for Megaworld (MEG), SM, SMPH, and VLL.  If the situation continues to deteriorate in 2015, expect these numbers to climb even further this year.

So far, with the exception of HOUSE, these past due and impaired real estate receivables pose little risk to the individual companies Stockholder's Equity.

Several readers have commented that past due and/or impaired receivables pose little risk to the developer because the developer holds the title to the property until the property is fully paid for.  In the event of default, the developer can simply evict the buyer (avoiding a lengthy and expensive foreclosure process) and resell the property for even higher prices in a rising real estate market.  Thus, the financial impact of the impairment is minimized.  Yes, that may be true, especially in a hot market.  But what if there is a general slowdown and everyone wants to sell?

If the whole receivable portfolio deteriorates, some firms might be more affected than others.  Surprisingly, it's not just HOUSE and VLL but also industry stalwarts such as CPG, MEG, and ALI who bear a lot of risk.

Related Posts:

Has the Philippine Real Estate Bubble Already Burst?

8990 Holdings, Inc.: The Case of the Disappearing Past Due Installment Contract Receivables

The Philippine Real Estate Bubble Has Already Burst for HOUSE (8990 Holdings, Inc.)

The Murky Accounting of Vista Land & Lifescapes Inc. (VLL)

A Simple Stress Test of Philippine Banks as of December 31, 2014

Editor's Note: This is an updated version of an earlier blog post "A Simple Stress Test of Philippine Banks as of September 30, 2014"

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 Sytem whose asset base is tiny in comparison to the whole banking system (Php 218.382 billion or 1.96% of the Php 11,168.982 billion in assets held in the Philippine Banking System as of December 31, 2014).


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 118.019 billion or 9.87% of the PhP 1,195.925 billion in Stockholders Equity (SE) as of December 31, 2014.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholders equity by a little less than 5%.

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 December 31, 2014").

The stockholder's equity of one bank, Comsavings Bank would be completely wiped out.  Eight other banks would be severely affected.  These banks are: Opportunity Kauswagan Bank Inc (97.03% decline in SE), World Partners Bank (77.64% decline in SE), Planters Development Bank (68.24% decline in SE), Legazpi Savings Bank (65.02% decline in SE), Bataan Development Bank (52.83% decline in SE), Malayan Bank Savings and Mortgage Bank (32.89% decline in SE), Security Bank Savings Corporation (30.27% decline in SE), Northpoint Development Bank (30.26% decline in SE).

Philippine Banking System
NPL as % of SE
December 31, 2014
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
COMSAVINGS BANK	191,248,204.56	51,557,430.04	370.94%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	108,578,097.44	55,948,645.14	194.07%
WORLD PARTNERS BANK (A THRIFT BANK)	125,221,140.33	80,643,986.91	155.28%
PLANTERS DEVELOPMENT BANK	2,986,078,255.90	2,187,804,734.29	136.49%
LEGAZPI SAVINGS BANK INC	396,005,098.56	304,192,760.13	130.18%
BATAAN DEVELOPMENT BANK	75,627,159.93	71,576,468.39	105.66%
MALAYAN BANK SAVINGS AND MORT BANK INC	637,584,938.74	969,251,350.17	65.78%
SECURITY BANK SAVINGS CORPORATION	650,408,422.57	1,074,321,783.93	60.54%
NORTHPOINT DEV'T BANK INC	114,135,388.27	188,592,014.32	60.52%
EQUICOM SAVINGS BANK INC	388,602,197.37	667,176,129.84	58.25%
LUZON DEVELOPMENT BANK	297,480,192.36	523,936,166.23	56.78%
FARMERS SAVINGS & LOAN BANK INC	59,842,676.39	107,747,607.25	55.54%
PHIL POSTAL SAVINGS BANK INC	527,067,640.97	975,558,653.14	54.03%
UNITED OVERSEAS BANK PHILIPPINES	665,442,006.65	1,289,507,257.01	51.60%
THE PALAWAN BANK (PALAWAN DB) INC	14,496,773.68	32,294,845.89	44.89%
SAMPAGUITA SAVINGS BANK INC	24,560,366.62	55,352,039.07	44.37%
WEALTH DEVELOPMENT BANK CORPORATION	183,529,436.71	413,815,470.23	44.35%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	929,883,309.51	2,117,064,844.85	43.92%
PAMPANGA DEVELOPMENT BANK	53,348,257.64	123,946,940.03	43.04%
1ST VALLEY BANK INC A DEVELOPMENT BANK	515,249,846.22	1,220,634,654.64	42.21%
STANDARD CHARTERED BANK	2,547,665,279.70	6,135,671,499.22	41.52%
ENTERPRISE BANK INC (A THRIFT BANK)	96,877,675.31	241,377,373.20	40.14%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	114,286,992.86	288,584,995.92	39.60%
VILLAGE BANK INC (A THRIFT BANK)	28,089,103.74	74,568,904.10	37.67%
MARITIME SAVINGS BANK CORPORATION	22,442,294.91	63,570,191.70	35.30%
TONGYANG SAVINGS BANK INC	119,770,252.32	380,519,964.95	31.48%
RCBC SAVINGS BANK INC	2,347,905,349.52	8,169,102,935.60	28.74%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	26,681,234.39	93,527,563.09	28.53%
UNITED COCONUT PLANTERS BANK	5,416,218,477.28	19,085,612,213.74	28.38%
PHILIPPINE VETERANS BANK	1,643,267,349.87	5,957,168,770.43	27.58%
EAST WEST BANKING CORP	5,576,281,317.76	20,745,696,557.09	26.88%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	500,503,576.05	1,938,330,419.80	25.82%
CHINA BANK SAVINGS INC	662,261,289.23	2,636,463,097.36	25.12%
UCPB SAVINGS BANK	472,269,678.32	1,989,871,530.52	23.73%
CITIBANK, N.A.	3,126,649,482.40	13,410,800,271.40	23.31%
PHIL SAVINGS BANK	3,865,493,882.61	16,681,173,735.63	23.17%
BPI FAMILY SAVINGS BANK INC	4,890,790,457.85	21,878,039,272.60	22.35%
PRODUCERS SAVINGS BANK CORPORATION	269,904,315.20	1,294,255,217.82	20.85%
MALASIQUI PROGRESSIVE SLB, INC	10,389,393.25	53,734,817.35	19.33%
PHIL BANK OF COMMUNICATIONS	1,586,752,249.52	8,229,622,845.02	19.28%
UNION BANK OF THE PHILS	9,906,489,975.31	51,917,273,142.12	19.08%
METRO CEBU PUBLIC SAVINGS BANK	11,494,835.36	62,954,893.13	18.26%
DUMAGUETE CITY DEV BANK INC	41,174,656.59	232,313,049.70	17.72%
BANK OF COMMERCE	2,574,468,973.68	15,588,633,047.75	16.52%
BUSINESS AND CONSUMERS BANK (A DB)	13,926,629.29	84,786,025.62	16.43%
FIRST CONSOLIDATED BANK INC (A PDB)	464,360,958.42	2,863,758,672.50	16.22%
INTER-ASIA DEVELOPMENT BANK	8,624,018.49	53,229,095.13	16.20%
CORDILLERA SAVINGS BANK INC	17,383,076.12	116,139,748.78	14.97%
MAYBANK PHILIPPINES INC	1,482,039,353.94	10,427,672,613.35	14.21%
LIFE SAVINGS BANK INC	9,393,674.72	71,318,816.97	13.17%
DEVELOPMENT BANK OF THE PHIL	5,514,108,975.79	42,653,844,817.96	12.93%
BPI DIRECT SAVINGS BANK INC	160,442,838.35	1,257,488,906.14	12.76%
PHIL STAR DEVELOPMENT BANK INC	8,288,381.02	75,863,517.57	10.93%
PHIL NATIONAL BANK	9,920,812,722.51	91,074,332,529.79	10.89%
TOWER DEVELOPMENT BANK	12,823,403.45	119,813,934.58	10.70%
ROBINSONS BANK CORPORATION	544,355,086.03	5,621,867,397.15	9.68%
HONGKONG & SHANGHAI BANKING CORP	1,326,767,656.33	14,233,431,377.81	9.32%
LAND BANK OF THE PHILIPPINES	6,821,304,507.20	75,234,783,027.35	9.07%
SUN SAVINGS BANK INC	9,255,437.42	103,480,637.71	8.94%
CITY SAVINGS BANK INC	531,068,678.18	5,971,597,899.22	8.89%
BDO UNIBANK INC	15,898,690,558.16	179,059,857,129.42	8.88%
HIYAS BANKING CORPORATION	13,458,793.88	163,812,636.61	8.22%
LEMERY SAVINGS & LOAN BANK, INC.	6,183,105.10	75,527,595.02	8.19%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	621,409,966.16	8,128,989,824.54	7.64%
CHINA BANKING CORP	3,956,317,691.92	52,562,931,995.96	7.53%
CARD SME BANK INC A THRIFT BANK	28,119,896.47	380,897,597.73	7.38%
CTBC BANK (PHILIPPINES) CORP	446,996,685.64	6,517,843,338.80	6.86%
UNIVERSITY SAVINGS BANK INC	26,945,351.73	396,019,827.49	6.80%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	41,828,094.46	665,066,001.89	6.29%
BANK OF THE PHIL ISLANDS	7,351,999,296.85	138,558,330,200.82	5.31%
PHIL TRUST COMPANY	1,114,639,478.98	23,149,137,314.30	4.82%
RIZAL COMM'L BANKING CORP	2,139,606,438.85	52,906,032,378.78	4.04%
CENTURY SAVINGS BANK CORPORATION	35,860,740.62	926,046,140.29	3.87%
BATAAN SAVINGS AND LOAN BANK	2,344,022.09	62,701,719.89	3.74%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,228,732.89	60,384,885.53	3.69%
ALLIED SAVINGS BANK	402,721,413.68	11,051,756,508.35	3.64%
HSBC SAVINGS BANK(PHILS) INC	78,330,181.73	2,153,204,490.35	3.64%
BANK ONE SAVINGS AND TRUST CORP.	15,304,127.53	559,078,408.27	2.74%
OPTIMUM DEVELOPMENT BANK INC	19,293,633.32	742,754,108.09	2.60%
SECURITY BANK CORP	1,180,934,434.60	46,752,054,373.79	2.53%
ASIA UNITED BANK CORPORATION	460,714,804.30	20,067,313,151.29	2.30%
KOREA EXCHANGE BANK	23,550,179.88	1,309,725,034.11	1.80%
MERCHANTS SAVINGS & LOAN ASSN INC	7,516,719.70	432,072,361.75	1.74%
METROPOLITAN BANK & TCO	2,456,299,278.71	143,782,847,507.06	1.71%
PROGRESS SAVINGS AND LOAN BANK INC	1,266,509.04	83,525,324.63	1.52%
ANZ BANKING GROUP LTD	23,339,114.85	4,329,270,268.11	0.54%
BANK OF CHINA LIMITED-MANILA BRANCH	8,660,895.91	2,694,837,350.55	0.32%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	1,092,048.97	373,732,861.42	0.29%
BANGKOK BANK PUBLIC CO LTD	4,714,155.55	3,117,972,365.47	0.15%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,481,859,799.42	0.05%
INTERNATIONALE NEDERLANDEN GROEP BK	91.44	11,960,468,678.96	0.00%
BANK OF AMERICA N.A.	4.00	2,096,061,205.20	0.00%
BDO ELITE SAVINGS BANK INC	0.00	801,631,814.12	0.00%
BDO PRIVATE BANK, INC.	0.00	5,788,757,390.89	0.00%
DEUTSCHE BANK AG	0.00	2,819,574,200.68	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	657,505,825.66	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	2,033,655,487.53	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	2,780,650,478.67	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,817,817,299.22	0.00%
Grand Total	118,018,574,232.94	1,195,924,903,989.03	9.87%

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 December 31, 2014, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 383.252 billion or more than 3 times the size of the Philippine Banking System's NPLs of PhP 118.019 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
December 31, 2014
	Classified Loans	NPL	Classified Loans/NPL
Bank	(In PHP)	(In PHP)	(In %)
BANK OF AMERICA N.A.	5,614,000.00	4.00	140350000.00%
INTERNATIONALE NEDERLANDEN GROEP BK	45,000,000.00	91.44	49212598.43%
BANK OF CHINA LIMITED-MANILA BRANCH	9,509,052,093.62	8,660,895.91	109792.94%
VILLAGE BANK INC (A THRIFT BANK)	607,541,534.70	28,089,103.74	2162.91%
KOREA EXCHANGE BANK	438,755,034.40	23,550,179.88	1863.06%
INTER-ASIA DEVELOPMENT BANK	155,963,527.82	8,624,018.49	1808.48%
BUSINESS AND CONSUMERS BANK (A DB)	232,042,405.15	13,926,629.29	1666.18%
BANK ONE SAVINGS AND TRUST CORP.	197,259,605.34	15,304,127.53	1288.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	1,092,048.97	1279.47%
BANK OF COMMERCE	28,940,752,164.13	2,574,468,973.68	1124.14%
OPTIMUM DEVELOPMENT BANK INC	183,651,985.42	19,293,633.32	951.88%
CITIBANK, N.A.	26,181,219,000.00	3,126,649,482.40	837.36%
ASIA UNITED BANK CORPORATION	3,822,595,852.64	460,714,804.30	829.71%
METROPOLITAN BANK & TCO	17,712,213,616.84	2,456,299,278.71	721.09%
COMSAVINGS BANK	1,275,879,789.57	191,248,204.56	667.13%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,810,566.74	2,228,732.89	664.53%
SECURITY BANK CORP	7,002,000,000.00	1,180,934,434.60	592.92%
PHIL STAR DEVELOPMENT BANK INC	43,519,666.20	8,288,381.02	525.07%
CORDILLERA SAVINGS BANK INC	80,200,762.87	17,383,076.12	461.37%
PHIL TRUST COMPANY	5,084,762,000.00	1,114,639,478.98	456.18%
UCPB SAVINGS BANK	2,148,055,252.56	472,269,678.32	454.84%
DUMAGUETE CITY DEV BANK INC	186,850,000.00	41,174,656.59	453.80%
RIZAL COMM'L BANKING CORP	9,242,435,747.62	2,139,606,438.85	431.97%
PHIL NATIONAL BANK	41,910,407,357.50	9,920,812,722.51	422.45%
RCBC SAVINGS BANK INC	9,760,813,000.00	2,347,905,349.52	415.72%
UNIVERSITY SAVINGS BANK INC	105,317,372.88	26,945,351.73	390.86%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	5,416,218,477.28	373.42%
BDO UNIBANK INC	57,717,404,126.37	15,898,690,558.16	363.03%
PHIL SAVINGS BANK	13,846,583,703.67	3,865,493,882.61	358.21%
METRO CEBU PUBLIC SAVINGS BANK	38,747,392.46	11,494,835.36	337.09%
CENTURY SAVINGS BANK CORPORATION	112,634,352.97	35,860,740.62	314.09%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,548,739,775.27	500,503,576.05	309.44%
CHINA BANKING CORP	12,055,468,033.41	3,956,317,691.92	304.71%
ROBINSONS BANK CORPORATION	1,506,082,604.60	544,355,086.03	276.67%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	108,947,815.93	41,828,094.46	260.47%
LAND BANK OF THE PHILIPPINES	17,585,203,179.24	6,821,304,507.20	257.80%
HSBC SAVINGS BANK(PHILS) INC	201,467,107.50	78,330,181.73	257.20%
LIFE SAVINGS BANK INC	22,085,124.56	9,393,674.72	235.11%
BANK OF THE PHIL ISLANDS	16,342,280,040.41	7,351,999,296.85	222.28%
PHILIPPINE VETERANS BANK	3,618,777,847.81	1,643,267,349.87	220.22%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	2,046,671,000.00	929,883,309.51	220.10%
LEGAZPI SAVINGS BANK INC	852,505,000.00	396,005,098.56	215.28%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,354,955,739.15	637,584,938.74	212.51%
UNION BANK OF THE PHILS	21,006,811,707.70	9,906,489,975.31	212.05%
FARMERS SAVINGS & LOAN BANK INC	119,312,367.95	59,842,676.39	199.38%
TONGYANG SAVINGS BANK INC	231,837,380.12	119,770,252.32	193.57%
PRODUCERS SAVINGS BANK CORPORATION	515,374,563.51	269,904,315.20	190.95%
BPI FAMILY SAVINGS BANK INC	8,746,218,459.50	4,890,790,457.85	178.83%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,085,632,000.00	621,409,966.16	174.70%
CHINA BANK SAVINGS INC	1,141,924,295.74	662,261,289.23	172.43%
MARITIME SAVINGS BANK CORPORATION	38,109,396.12	22,442,294.91	169.81%
SECURITY BANK SAVINGS CORPORATION	1,079,750,387.07	650,408,422.57	166.01%
PLANTERS DEVELOPMENT BANK	4,747,003,067.91	2,986,078,255.90	158.97%
ANZ BANKING GROUP LTD	36,688,984.00	23,339,114.85	157.20%
DEVELOPMENT BANK OF THE PHIL	8,452,871,926.55	5,514,108,975.79	153.30%
PHIL POSTAL SAVINGS BANK INC	759,509,189.27	527,067,640.97	144.10%
PROGRESS SAVINGS AND LOAN BANK INC	1,812,739.58	1,266,509.04	143.13%
FIRST CONSOLIDATED BANK INC (A PDB)	654,663,167.77	464,360,958.42	140.98%
EQUICOM SAVINGS BANK INC	545,348,680.48	388,602,197.37	140.34%
EAST WEST BANKING CORP	7,615,607,113.89	5,576,281,317.76	136.57%
BATAAN DEVELOPMENT BANK	102,400,000.00	75,627,159.93	135.40%
ALLIED SAVINGS BANK	535,797,631.00	402,721,413.68	133.04%
MAYBANK PHILIPPINES INC	1,930,981,465.77	1,482,039,353.94	130.29%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	146,038,818.36	114,286,992.86	127.78%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	33,370,605.96	26,681,234.39	125.07%
BPI DIRECT SAVINGS BANK INC	200,372,553.21	160,442,838.35	124.89%
CITY SAVINGS BANK INC	653,318,360.68	531,068,678.18	123.02%
WORLD PARTNERS BANK (A THRIFT BANK)	151,808,295.72	125,221,140.33	121.23%
UNITED OVERSEAS BANK PHILIPPINES	766,989,825.63	665,442,006.65	115.26%
LEMERY SAVINGS & LOAN BANK, INC.	6,519,075.45	6,183,105.10	105.43%
SAMPAGUITA SAVINGS BANK INC	25,376,821.97	24,560,366.62	103.32%
CTBC BANK (PHILIPPINES) CORP	457,990,245.48	446,996,685.64	102.46%
BANGKOK BANK PUBLIC CO LTD	4,714,155.55	4,714,155.55	100.00%
BATAAN SAVINGS AND LOAN BANK	2,344,022.09	2,344,022.09	100.00%
HIYAS BANKING CORPORATION	13,458,793.88	13,458,793.88	100.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	734,885.22	100.00%
MALASIQUI PROGRESSIVE SLB, INC	10,389,393.25	10,389,393.25	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	108,578,097.44	108,578,097.44	100.00%
TOWER DEVELOPMENT BANK	12,823,403.45	12,823,403.45	100.00%
STANDARD CHARTERED BANK	2,499,313,722.00	2,547,665,279.70	98.10%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	53,348,257.64	88.84%
LUZON DEVELOPMENT BANK	249,479,818.16	297,480,192.36	83.86%
SUN SAVINGS BANK INC	7,157,622.08	9,255,437.42	77.33%
HONGKONG & SHANGHAI BANKING CORP	743,056,666.30	1,326,767,656.33	56.01%
WEALTH DEVELOPMENT BANK CORPORATION	77,899,031.54	183,529,436.71	42.44%
PHIL BANK OF COMMUNICATIONS	32,437,945.23	1,586,752,249.52	2.04%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	515,249,846.22	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	28,119,896.47	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	96,877,675.31	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	7,516,719.70	0.00%
NORTHPOINT DEV'T BANK INC	0.00	114,135,388.27	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	14,496,773.68	0.00%
BDO ELITE SAVINGS BANK INC	0.00	0.00	NA
BDO PRIVATE BANK, INC.	709,747,747.91	0.00	NA
DEUTSCHE BANK AG	1,831,038,328.06	0.00	NA
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	618,691,383.20	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	408,855,536.76	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	NA
Grand Total	383,251,791,655.10	118,018,574,232.94	324.74%

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 31.62% of the Php 1.212 trillion in Total Capital Cushion of Philippine Banks as of December 31, 2014.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
December 31, 2014
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)
COMSAVINGS BANK	1,275,879,789.57	2,295,192.29	55589.23%
LEGAZPI SAVINGS BANK INC	852,505,000.00	99,376,544.76	857.85%
VILLAGE BANK INC (A THRIFT BANK)	607,541,534.70	87,436,393.60	694.84%
BANK OF CHINA LIMITED-MANILA BRANCH	9,509,052,093.62	2,493,167,070.43	381.40%
BUSINESS AND CONSUMERS BANK (A DB)	232,042,405.15	88,393,318.46	262.51%
INTER-ASIA DEVELOPMENT BANK	155,963,527.82	59,594,775.33	261.71%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	9,124,414,677.15	221.66%
BANK OF COMMERCE	28,940,752,164.13	18,309,894,416.75	158.06%
BATAAN DEVELOPMENT BANK	102,400,000.00	80,329,179.48	127.48%
CITIBANK, N.A.	26,181,219,000.00	20,733,444,720.19	126.28%
PLANTERS DEVELOPMENT BANK	4,747,003,067.91	3,954,154,673.31	120.05%
RCBC SAVINGS BANK INC	9,760,813,000.00	8,615,964,747.99	113.29%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,354,955,739.15	1,253,359,735.13	108.11%
WORLD PARTNERS BANK (A THRIFT BANK)	151,808,295.72	162,677,786.98	93.32%
FARMERS SAVINGS & LOAN BANK INC	119,312,367.95	134,938,703.28	88.42%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,548,739,775.27	1,784,667,992.77	86.78%
UCPB SAVINGS BANK	2,148,055,252.56	2,539,953,439.25	84.57%
DUMAGUETE CITY DEV BANK INC	186,850,000.00	239,322,684.57	78.07%
DEUTSCHE BANK AG	1,831,038,328.06	2,384,846,604.99	76.78%
EQUICOM SAVINGS BANK INC	545,348,680.48	737,293,772.55	73.97%
PHIL SAVINGS BANK	13,846,583,703.67	18,882,918,559.80	73.33%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	2,046,671,000.00	2,803,051,740.85	73.02%
SECURITY BANK SAVINGS CORPORATION	1,079,750,387.07	1,592,166,669.95	67.82%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	108,578,097.44	169,973,982.35	63.88%
PHIL POSTAL SAVINGS BANK INC	759,509,189.27	1,227,155,878.41	61.89%
CORDILLERA SAVINGS BANK INC	80,200,762.87	130,137,630.06	61.63%
METRO CEBU PUBLIC SAVINGS BANK	38,747,392.46	67,210,071.66	57.65%
MARITIME SAVINGS BANK CORPORATION	38,109,396.12	70,518,836.94	54.04%
PHIL STAR DEVELOPMENT BANK INC	43,519,666.20	81,953,833.05	53.10%
PHILIPPINE VETERANS BANK	3,618,777,847.81	7,111,418,438.53	50.89%
TONGYANG SAVINGS BANK INC	231,837,380.12	477,880,954.31	48.51%
LUZON DEVELOPMENT BANK	249,479,818.16	578,638,564.35	43.11%
PRODUCERS SAVINGS BANK CORPORATION	515,374,563.51	1,247,859,332.75	41.30%
UNITED OVERSEAS BANK PHILIPPINES	766,989,825.63	1,866,946,486.22	41.08%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	146,038,818.36	357,750,382.63	40.82%
CHINA BANK SAVINGS INC	1,141,924,295.74	2,820,790,084.25	40.48%
PHIL NATIONAL BANK	41,910,407,357.50	103,826,308,394.23	40.37%
UNIVERSITY SAVINGS BANK INC	105,317,372.88	272,339,254.64	38.67%
UNION BANK OF THE PHILS	21,006,811,707.70	54,384,715,306.96	38.63%
BPI FAMILY SAVINGS BANK INC	8,746,218,459.50	22,801,422,982.59	38.36%
BANK ONE SAVINGS AND TRUST CORP.	197,259,605.34	553,094,853.16	35.66%
EAST WEST BANKING CORP	7,615,607,113.89	22,068,547,185.16	34.51%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	137,399,553.25	34.49%
KOREA EXCHANGE BANK	438,755,034.40	1,279,258,496.14	34.30%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	33,370,605.96	98,696,812.78	33.81%
SAMPAGUITA SAVINGS BANK INC	25,376,821.97	75,448,791.64	33.63%
LIFE SAVINGS BANK INC	22,085,124.56	69,133,232.15	31.95%
STANDARD CHARTERED BANK	2,499,313,722.00	7,933,415,825.35	31.50%
BDO UNIBANK INC	57,717,404,126.37	184,410,214,335.55	31.30%
MEGA INT'L COMM'L BANK CO LTD	618,691,383.20	2,040,867,985.59	30.32%
LAND BANK OF THE PHILIPPINES	17,585,203,179.24	60,844,694,037.05	28.90%
PHIL TRUST COMPANY	5,084,762,000.00	19,921,080,104.77	25.52%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,810,566.74	59,699,819.75	24.81%
OPTIMUM DEVELOPMENT BANK INC	183,651,985.42	762,376,428.71	24.09%
ROBINSONS BANK CORPORATION	1,506,082,604.60	6,421,295,309.92	23.45%
FIRST CONSOLIDATED BANK INC (A PDB)	654,663,167.77	2,938,271,999.20	22.28%
DEVELOPMENT BANK OF THE PHIL	8,452,871,926.55	38,795,716,168.79	21.79%
CHINA BANKING CORP	12,055,468,033.41	58,283,559,655.42	20.68%
RIZAL COMM'L BANKING CORP	9,242,435,747.62	46,050,957,777.86	20.07%
ASIA UNITED BANK CORPORATION	3,822,595,852.64	20,947,510,844.42	18.25%
MAYBANK PHILIPPINES INC	1,930,981,465.77	11,176,105,840.42	17.28%
MALASIQUI PROGRESSIVE SLB, INC	10,389,393.25	60,919,413.73	17.05%
BPI DIRECT SAVINGS BANK INC	200,372,553.21	1,179,517,465.26	16.99%
WEALTH DEVELOPMENT BANK CORPORATION	77,899,031.54	470,106,341.85	16.57%
SECURITY BANK CORP	7,002,000,000.00	42,541,597,642.96	16.46%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	108,947,815.93	675,836,846.55	16.12%
CITY SAVINGS BANK INC	653,318,360.68	4,818,454,987.10	13.56%
MIZUHO BANK LTD - MANILA BRANCH	408,855,536.76	3,061,976,397.94	13.35%
BDO PRIVATE BANK, INC.	709,747,747.91	5,502,235,777.13	12.90%
CENTURY SAVINGS BANK CORPORATION	112,634,352.97	906,301,593.90	12.43%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,085,632,000.00	8,834,127,233.01	12.29%
BANK OF THE PHIL ISLANDS	16,342,280,040.41	136,766,379,223.24	11.95%
METROPOLITAN BANK & TCO	17,712,213,616.84	153,180,391,486.45	11.56%
TOWER DEVELOPMENT BANK	12,823,403.45	120,855,919.90	10.61%
HSBC SAVINGS BANK(PHILS) INC	201,467,107.50	2,065,235,504.36	9.76%
LEMERY SAVINGS & LOAN BANK, INC.	6,519,075.45	77,876,573.33	8.37%
HIYAS BANKING CORPORATION	13,458,793.88	170,642,703.54	7.89%
CTBC BANK (PHILIPPINES) CORP	457,990,245.48	6,979,451,830.86	6.56%
SUN SAVINGS BANK INC	7,157,622.08	112,275,942.77	6.38%
HONGKONG & SHANGHAI BANKING CORP	743,056,666.30	14,138,846,593.93	5.26%
ALLIED SAVINGS BANK	535,797,631.00	11,229,656,247.54	4.77%
BATAAN SAVINGS AND LOAN BANK	2,344,022.09	64,839,303.87	3.62%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	401,832,629.56	3.48%
PROGRESS SAVINGS AND LOAN BANK INC	1,812,739.58	83,792,443.94	2.16%
ANZ BANKING GROUP LTD	36,688,984.00	4,488,259,818.30	0.82%
PHIL BANK OF COMMUNICATIONS	32,437,945.23	7,954,329,897.34	0.41%
INTERNATIONALE NEDERLANDEN GROEP BK	45,000,000.00	11,831,560,875.66	0.38%
BANK OF AMERICA N.A.	5,614,000.00	2,116,461,209.20	0.27%
BANGKOK BANK PUBLIC CO LTD	4,714,155.55	3,300,565,917.00	0.14%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,407,968,171.20	0.05%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	1,154,837,277.93	0.00%
BDO ELITE SAVINGS BANK INC	0.00	777,181,365.52	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	347,930,415.79	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	255,755,374.86	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	652,412,033.66	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	497,720,715.99	0.00%
NORTHPOINT DEV'T BANK INC	0.00	271,184,894.87	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,946,920,166.75	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	38,036,159.66	0.00%
Grand Total	383,251,791,655.10	1,212,008,303,267.32	31.62%

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 31.62% 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 3.16% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 15.81%.

Individual Banks

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

1. Comsavings Bank (5,558.92% reduction in Total Capital Cushion)
2. Legazpi Savings Bank (85.79% reduction in Total Capital Cushion)
3. Village Bank Inc. (69.48% reduction in Total Capital Cushion)
4. Bank of China Limited - Manila Branch (38.14% 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. Comsavings Bank (11,117.85% reduction in Total Capital Cushion)
2. Legazpi Savings Bank (171.57% reduction in Total Capital Cushion)
3. Village Bank Inc. (138.97% reduction in Total Capital Cushion)
4. Bank of China Limited - Manila Branch (76.28% reduction in Total Capital Cushion)
5. Business and Consumers Bank (52.50% reduction in Total Capital Cushion)
6. Inter-Asia Development Bank (52.34% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (44.33% reduction in Total Capital Cushion)
8. Bank of Commerce (31.61% reduction in Total Capital Cushion)

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

1. Comsavings Bank (16,676.77% reduction in Total Capital Cushion)
2. Legazpi Savings Bank (257.36% reduction in Total Capital Cushion)
3. Village Bank Inc. (208.45% reduction in Total Capital Cushion)
4. Bank of China Limited - Manila Branch (114.42% reduction in Total Capital Cushion)
5. Business and Consumers Bank (78.75% reduction in Total Capital Cushion)
6. Inter-Asia Development Bank (78.51% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (66.50% reduction in Total Capital Cushion)
8. Bank of Commerce (47.42% reduction in Total Capital Cushion)
9. Bataan Development Bank (38.24% reduction in Total Capital Cushion)
10. Citibank, N.A. (37.88% reduction in Total Capital Cushion)
11. Planters Development Bank (36.02% reduction in Total Capital Cushion)
12. RCBC Savings Bank (33.99% reduction in Total Capital Cushion)
13. Malayan Bank Savings and Mortgage Bank Inc (32.43% reduction in Total Capital Cushion)

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

1. Comsavings Bank (22,235.69% reduction in Total Capital Cushion)
2. Legazpi Savings Bank (343.14% reduction in Total Capital Cushion)
3. Village Bank Inc. (277.94% reduction in Total Capital Cushion)
4. Bank of China Limited - Manila Branch (152.56% reduction in Total Capital Cushion)
5. Business and Consumers Bank (105.00% reduction in Total Capital Cushion)
6. Inter-Asia Development Bank (104.68% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (88.66% reduction in Total Capital Cushion)
8. Bank of Commerce (63.22% reduction in Total Capital Cushion)
9. Bataan Development Bank (50.99% reduction in Total Capital Cushion)
10. Citibank, N.A. (50.51% reduction in Total Capital Cushion)
11. Planters Development Bank (48.02% reduction in Total Capital Cushion)
12. RCBC Savings Bank (45.32% reduction in Total Capital Cushion)
13. Malayan Bank Savings and Mortgage Bank Inc (43.24% reduction in Total Capital Cushion)
14. World Partners Bank (37.33% reduction in Total Capital Cushion)
15. Farmers Savings & Loan Bank (35.37% reduction in Total Capital Cushion)
16. Philippine Resources Savings Banking Corporation (34.71% reduction in Total Capital Cushion)
17. UCPB Savings Bank (33.83% reduction in Total Capital Cushion)
18. Dumaguete City Development Bank Inc. (31.23% reduction in Total Capital Cushion)
19. Deutsche Bank AG (30.71% 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 nineteen more banks:

1. Comsavings Bank (27,794.62% reduction in Total Capital Cushion)
2. Legazpi Savings Bank (428.93% reduction in Total Capital Cushion)
3. Village Bank Inc. (347.42% reduction in Total Capital Cushion)
4. Bank of China Limited - Manila Branch (190.70% reduction in Total Capital Cushion)
5. Business and Consumers Bank (131.26% reduction in Total Capital Cushion)
6. Inter-Asia Development Bank (130.85% reduction in Total Capital Cushion)
7. United Coconut Planters Bank (110.83% reduction in Total Capital Cushion)
8. Bank of Commerce (79.03% reduction in Total Capital Cushion)
9. Bataan Development Bank (63.74% reduction in Total Capital Cushion)
10. Citibank, N.A. (63.14% reduction in Total Capital Cushion)
11. Planters Development Bank (60.03% reduction in Total Capital Cushion)
12. RCBC Savings Bank (56.64% reduction in Total Capital Cushion)
13. Malayan Bank Savings and Mortgage Bank Inc (54.05% reduction in Total Capital Cushion)
14. World Partners Bank (46.66% reduction in Total Capital Cushion)
15. Farmers Savings & Loan Bank (44.21% reduction in Total Capital Cushion)
16. Philippine Resources Savings Banking Corporation (43.39% reduction in Total Capital Cushion)
17. UCPB Savings Bank (42.29% reduction in Total Capital Cushion)
18. Dumaguete City Development Bank Inc. (39.04% reduction in Total Capital Cushion)
19. Deutsche Bank AG (38.39% reduction in Total Capital Cushion)
20. Equicom Savings Bank Inc. (36.98% reduction in Total Capital Cushion)
21. Philippine Savings Bank (36.66% reduction in Total Capital Cushion)
22. Sterling Bank of Asia Inc (36.51% reduction in Total Capital Cushion)
23. Security Bank Savings Corporation (33.91% reduction in Total Capital Cushion)
24. Opportunity Kauswagan Bank Inc (31.94% reduction in Total Capital Cushion)
25. Philippine Postal Savings Bank Inc (30.95% reduction in Total Capital Cushion)
26. Cordillera Savings Bank Inc (30.81% 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 December 31, 2014".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of December 31, 2014".  As such, any reduction in their capital cushion could knock down an already weak bank.

Philippine Banking System
Impact Analysis of Classified Loan Loss Severities on Total Capital Cushion
December 31, 2014
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion	Impact of 10% Classified Loan Loss Severity on Total Capital Cushion	Impact of 20% Classified Loan Loss Severity on Total Capital Cushion	Impact of 30% Classified Loan Loss Severity on Total Capital Cushion	Impact of 40% Classified Loan Loss Severity on Total Capital Cushion	Impact of 50% Classified Loan Loss Severity on Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)	(In %)	(In %)	(In %)	(In %)	(In %)
COMSAVINGS BANK	1,275,879,789.57	2,295,192.29	55589.23%	5558.92%	11117.85%	16676.77%	22235.69%	27794.62%
LEGAZPI SAVINGS BANK INC	852,505,000.00	99,376,544.76	857.85%	85.79%	171.57%	257.36%	343.14%	428.93%
VILLAGE BANK INC (A THRIFT BANK)	607,541,534.70	87,436,393.60	694.84%	69.48%	138.97%	208.45%	277.94%	347.42%
BANK OF CHINA LIMITED-MANILA BRANCH	9,509,052,093.62	2,493,167,070.43	381.40%	38.14%	76.28%	114.42%	152.56%	190.70%
BUSINESS AND CONSUMERS BANK (A DB)	232,042,405.15	88,393,318.46	262.51%	26.25%	52.50%	78.75%	105.00%	131.26%
INTER-ASIA DEVELOPMENT BANK	155,963,527.82	59,594,775.33	261.71%	26.17%	52.34%	78.51%	104.68%	130.85%
UNITED COCONUT PLANTERS BANK	20,225,000,000.00	9,124,414,677.15	221.66%	22.17%	44.33%	66.50%	88.66%	110.83%
BANK OF COMMERCE	28,940,752,164.13	18,309,894,416.75	158.06%	15.81%	31.61%	47.42%	63.22%	79.03%
BATAAN DEVELOPMENT BANK	102,400,000.00	80,329,179.48	127.48%	12.75%	25.50%	38.24%	50.99%	63.74%
CITIBANK, N.A.	26,181,219,000.00	20,733,444,720.19	126.28%	12.63%	25.26%	37.88%	50.51%	63.14%
PLANTERS DEVELOPMENT BANK	4,747,003,067.91	3,954,154,673.31	120.05%	12.01%	24.01%	36.02%	48.02%	60.03%
RCBC SAVINGS BANK INC	9,760,813,000.00	8,615,964,747.99	113.29%	11.33%	22.66%	33.99%	45.32%	56.64%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,354,955,739.15	1,253,359,735.13	108.11%	10.81%	21.62%	32.43%	43.24%	54.05%
WORLD PARTNERS BANK (A THRIFT BANK)	151,808,295.72	162,677,786.98	93.32%	9.33%	18.66%	28.00%	37.33%	46.66%
FARMERS SAVINGS & LOAN BANK INC	119,312,367.95	134,938,703.28	88.42%	8.84%	17.68%	26.53%	35.37%	44.21%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,548,739,775.27	1,784,667,992.77	86.78%	8.68%	17.36%	26.03%	34.71%	43.39%
UCPB SAVINGS BANK	2,148,055,252.56	2,539,953,439.25	84.57%	8.46%	16.91%	25.37%	33.83%	42.29%
DUMAGUETE CITY DEV BANK INC	186,850,000.00	239,322,684.57	78.07%	7.81%	15.61%	23.42%	31.23%	39.04%
DEUTSCHE BANK AG	1,831,038,328.06	2,384,846,604.99	76.78%	7.68%	15.36%	23.03%	30.71%	38.39%
EQUICOM SAVINGS BANK INC	545,348,680.48	737,293,772.55	73.97%	7.40%	14.79%	22.19%	29.59%	36.98%
PHIL SAVINGS BANK	13,846,583,703.67	18,882,918,559.80	73.33%	7.33%	14.67%	22.00%	29.33%	36.66%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	2,046,671,000.00	2,803,051,740.85	73.02%	7.30%	14.60%	21.90%	29.21%	36.51%
SECURITY BANK SAVINGS CORPORATION	1,079,750,387.07	1,592,166,669.95	67.82%	6.78%	13.56%	20.34%	27.13%	33.91%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	108,578,097.44	169,973,982.35	63.88%	6.39%	12.78%	19.16%	25.55%	31.94%
PHIL POSTAL SAVINGS BANK INC	759,509,189.27	1,227,155,878.41	61.89%	6.19%	12.38%	18.57%	24.76%	30.95%
CORDILLERA SAVINGS BANK INC	80,200,762.87	130,137,630.06	61.63%	6.16%	12.33%	18.49%	24.65%	30.81%
METRO CEBU PUBLIC SAVINGS BANK	38,747,392.46	67,210,071.66	57.65%	5.77%	11.53%	17.30%	23.06%	28.83%
MARITIME SAVINGS BANK CORPORATION	38,109,396.12	70,518,836.94	54.04%	5.40%	10.81%	16.21%	21.62%	27.02%
PHIL STAR DEVELOPMENT BANK INC	43,519,666.20	81,953,833.05	53.10%	5.31%	10.62%	15.93%	21.24%	26.55%
PHILIPPINE VETERANS BANK	3,618,777,847.81	7,111,418,438.53	50.89%	5.09%	10.18%	15.27%	20.35%	25.44%
TONGYANG SAVINGS BANK INC	231,837,380.12	477,880,954.31	48.51%	4.85%	9.70%	14.55%	19.41%	24.26%
LUZON DEVELOPMENT BANK	249,479,818.16	578,638,564.35	43.11%	4.31%	8.62%	12.93%	17.25%	21.56%
PRODUCERS SAVINGS BANK CORPORATION	515,374,563.51	1,247,859,332.75	41.30%	4.13%	8.26%	12.39%	16.52%	20.65%
UNITED OVERSEAS BANK PHILIPPINES	766,989,825.63	1,866,946,486.22	41.08%	4.11%	8.22%	12.32%	16.43%	20.54%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	146,038,818.36	357,750,382.63	40.82%	4.08%	8.16%	12.25%	16.33%	20.41%
CHINA BANK SAVINGS INC	1,141,924,295.74	2,820,790,084.25	40.48%	4.05%	8.10%	12.14%	16.19%	20.24%
PHIL NATIONAL BANK	41,910,407,357.50	103,826,308,394.23	40.37%	4.04%	8.07%	12.11%	16.15%	20.18%
UNIVERSITY SAVINGS BANK INC	105,317,372.88	272,339,254.64	38.67%	3.87%	7.73%	11.60%	15.47%	19.34%
UNION BANK OF THE PHILS	21,006,811,707.70	54,384,715,306.96	38.63%	3.86%	7.73%	11.59%	15.45%	19.31%
BPI FAMILY SAVINGS BANK INC	8,746,218,459.50	22,801,422,982.59	38.36%	3.84%	7.67%	11.51%	15.34%	19.18%
BANK ONE SAVINGS AND TRUST CORP.	197,259,605.34	553,094,853.16	35.66%	3.57%	7.13%	10.70%	14.27%	17.83%
EAST WEST BANKING CORP	7,615,607,113.89	22,068,547,185.16	34.51%	3.45%	6.90%	10.35%	13.80%	17.25%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	137,399,553.25	34.49%	3.45%	6.90%	10.35%	13.80%	17.25%
KOREA EXCHANGE BANK	438,755,034.40	1,279,258,496.14	34.30%	3.43%	6.86%	10.29%	13.72%	17.15%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	33,370,605.96	98,696,812.78	33.81%	3.38%	6.76%	10.14%	13.52%	16.91%
SAMPAGUITA SAVINGS BANK INC	25,376,821.97	75,448,791.64	33.63%	3.36%	6.73%	10.09%	13.45%	16.82%
LIFE SAVINGS BANK INC	22,085,124.56	69,133,232.15	31.95%	3.19%	6.39%	9.58%	12.78%	15.97%
STANDARD CHARTERED BANK	2,499,313,722.00	7,933,415,825.35	31.50%	3.15%	6.30%	9.45%	12.60%	15.75%
BDO UNIBANK INC	57,717,404,126.37	184,410,214,335.55	31.30%	3.13%	6.26%	9.39%	12.52%	15.65%
MEGA INT'L COMM'L BANK CO LTD	618,691,383.20	2,040,867,985.59	30.32%	3.03%	6.06%	9.09%	12.13%	15.16%
LAND BANK OF THE PHILIPPINES	17,585,203,179.24	60,844,694,037.05	28.90%	2.89%	5.78%	8.67%	11.56%	14.45%
PHIL TRUST COMPANY	5,084,762,000.00	19,921,080,104.77	25.52%	2.55%	5.10%	7.66%	10.21%	12.76%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,810,566.74	59,699,819.75	24.81%	2.48%	4.96%	7.44%	9.92%	12.40%
OPTIMUM DEVELOPMENT BANK INC	183,651,985.42	762,376,428.71	24.09%	2.41%	4.82%	7.23%	9.64%	12.04%
ROBINSONS BANK CORPORATION	1,506,082,604.60	6,421,295,309.92	23.45%	2.35%	4.69%	7.04%	9.38%	11.73%
FIRST CONSOLIDATED BANK INC (A PDB)	654,663,167.77	2,938,271,999.20	22.28%	2.23%	4.46%	6.68%	8.91%	11.14%
DEVELOPMENT BANK OF THE PHIL	8,452,871,926.55	38,795,716,168.79	21.79%	2.18%	4.36%	6.54%	8.72%	10.89%
CHINA BANKING CORP	12,055,468,033.41	58,283,559,655.42	20.68%	2.07%	4.14%	6.21%	8.27%	10.34%
RIZAL COMM'L BANKING CORP	9,242,435,747.62	46,050,957,777.86	20.07%	2.01%	4.01%	6.02%	8.03%	10.04%
ASIA UNITED BANK CORPORATION	3,822,595,852.64	20,947,510,844.42	18.25%	1.82%	3.65%	5.47%	7.30%	9.12%
MAYBANK PHILIPPINES INC	1,930,981,465.77	11,176,105,840.42	17.28%	1.73%	3.46%	5.18%	6.91%	8.64%
MALASIQUI PROGRESSIVE SLB, INC	10,389,393.25	60,919,413.73	17.05%	1.71%	3.41%	5.12%	6.82%	8.53%
BPI DIRECT SAVINGS BANK INC	200,372,553.21	1,179,517,465.26	16.99%	1.70%	3.40%	5.10%	6.80%	8.49%
WEALTH DEVELOPMENT BANK CORPORATION	77,899,031.54	470,106,341.85	16.57%	1.66%	3.31%	4.97%	6.63%	8.29%
SECURITY BANK CORP	7,002,000,000.00	42,541,597,642.96	16.46%	1.65%	3.29%	4.94%	6.58%	8.23%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	108,947,815.93	675,836,846.55	16.12%	1.61%	3.22%	4.84%	6.45%	8.06%
CITY SAVINGS BANK INC	653,318,360.68	4,818,454,987.10	13.56%	1.36%	2.71%	4.07%	5.42%	6.78%
MIZUHO BANK LTD - MANILA BRANCH	408,855,536.76	3,061,976,397.94	13.35%	1.34%	2.67%	4.01%	5.34%	6.68%
BDO PRIVATE BANK, INC.	709,747,747.91	5,502,235,777.13	12.90%	1.29%	2.58%	3.87%	5.16%	6.45%
CENTURY SAVINGS BANK CORPORATION	112,634,352.97	906,301,593.90	12.43%	1.24%	2.49%	3.73%	4.97%	6.21%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,085,632,000.00	8,834,127,233.01	12.29%	1.23%	2.46%	3.69%	4.92%	6.14%
BANK OF THE PHIL ISLANDS	16,342,280,040.41	136,766,379,223.24	11.95%	1.19%	2.39%	3.58%	4.78%	5.97%
METROPOLITAN BANK & TCO	17,712,213,616.84	153,180,391,486.45	11.56%	1.16%	2.31%	3.47%	4.63%	5.78%
TOWER DEVELOPMENT BANK	12,823,403.45	120,855,919.90	10.61%	1.06%	2.12%	3.18%	4.24%	5.31%
HSBC SAVINGS BANK(PHILS) INC	201,467,107.50	2,065,235,504.36	9.76%	0.98%	1.95%	2.93%	3.90%	4.88%
LEMERY SAVINGS & LOAN BANK, INC.	6,519,075.45	77,876,573.33	8.37%	0.84%	1.67%	2.51%	3.35%	4.19%
HIYAS BANKING CORPORATION	13,458,793.88	170,642,703.54	7.89%	0.79%	1.58%	2.37%	3.15%	3.94%
CTBC BANK (PHILIPPINES) CORP	457,990,245.48	6,979,451,830.86	6.56%	0.66%	1.31%	1.97%	2.62%	3.28%
SUN SAVINGS BANK INC	7,157,622.08	112,275,942.77	6.38%	0.64%	1.28%	1.91%	2.55%	3.19%
HONGKONG & SHANGHAI BANKING CORP	743,056,666.30	14,138,846,593.93	5.26%	0.53%	1.05%	1.58%	2.10%	2.63%
ALLIED SAVINGS BANK	535,797,631.00	11,229,656,247.54	4.77%	0.48%	0.95%	1.43%	1.91%	2.39%
BATAAN SAVINGS AND LOAN BANK	2,344,022.09	64,839,303.87	3.62%	0.36%	0.72%	1.08%	1.45%	1.81%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	401,832,629.56	3.48%	0.35%	0.70%	1.04%	1.39%	1.74%
PROGRESS SAVINGS AND LOAN BANK INC	1,812,739.58	83,792,443.94	2.16%	0.22%	0.43%	0.65%	0.87%	1.08%
ANZ BANKING GROUP LTD	36,688,984.00	4,488,259,818.30	0.82%	0.08%	0.16%	0.25%	0.33%	0.41%
PHIL BANK OF COMMUNICATIONS	32,437,945.23	7,954,329,897.34	0.41%	0.04%	0.08%	0.12%	0.16%	0.20%
INTERNATIONALE NEDERLANDEN GROEP BK	45,000,000.00	11,831,560,875.66	0.38%	0.04%	0.08%	0.11%	0.15%	0.19%
BANK OF AMERICA N.A.	5,614,000.00	2,116,461,209.20	0.27%	0.03%	0.05%	0.08%	0.11%	0.13%
BANGKOK BANK PUBLIC CO LTD	4,714,155.55	3,300,565,917.00	0.14%	0.01%	0.03%	0.04%	0.06%	0.07%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,407,968,171.20	0.05%	0.01%	0.01%	0.02%	0.02%	0.03%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0.00	1,154,837,277.93	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BDO ELITE SAVINGS BANK INC	0.00	777,181,365.52	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	347,930,415.79	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	255,755,374.86	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	652,412,033.66	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	497,720,715.99	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEV'T BANK INC	0.00	271,184,894.87	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,946,920,166.75	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	38,036,159.66	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Grand Total	383,251,791,655.10	1,212,008,303,267.32	31.62%	3.16%	6.32%	9.49%	12.65%	15.81%