A Simple Stress Test of Philippine Banks as of December 31, 2015

Editor's Note: This is an updated version of an earlier blog post "A Simple Stress Test of Philippine Banks as of September 30, 2015"

Editor's Note: For the purposes of this article, Philippine Banks or the Philippine Banking System refers to the Philippine Commercial and Universal Banking System and the Philippine Thrift Banking System.  We are ignoring the Philippine Rural and Cooperative Banking System whose asset base is tiny in comparison to the whole banking system (Php 202.522 billion or 1.66% of the Php 12,205.468 billion in assets held in the Philippine Banking System as of December 31, 2015).


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 122.522 billion or 9.23% of the PhP 1,326.901 billion in Stockholders Equity (SE) as of December 31, 2015.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

Naturally, some banks would be more affected than others. For more information regarding this, please read "The Top Distressed Philippine Banks as of December 31, 2015").

The stockholder's equity of two banks, Comsavings Bank aka GSIS Family Bank as well as Legazpi Savings Bank would be completely wiped out.  Eight other banks would be severely affected.  These banks are: MBank Philippines (51.14% decline in SE), World Partners Bank (50.87% decline in SE), Equicom Savings Bank (48.16% decline in SE), Planters Development Bank (47.24% decline in SE), Luzon Development Bank (40.68% decline in SE), Enterprise Bank Inc (33.04% decline in SE), Bataan Development Bank (32.40% decline in SE), Metro Cebu Public Savings Bank (31.27% decline in SE).

Philippine Banking System
NPL as % of SE
December 31, 2015
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
COMSAVINGS BANK	124,154,088.77	14,354,330.70	864.92%
LEGAZPI SAVINGS BANK INC	442,184,092.66	77,857,515.91	567.94%
MBANK PHILIPPINES (A THRIFT BANK) INC	48,998,587.50	47,908,360.13	102.28%
WORLD PARTNERS BANK (A THRIFT BANK)	89577030.51	88,050,307.71	101.73%
EQUICOM SAVINGS BANK INC	581,436,111.35	603,618,876.13	96.33%
PLANTERS DEVELOPMENT BANK	3,008,786,024.04	3,184,481,331.93	94.48%
LUZON DEVELOPMENT BANK	465,963,002.07	572,697,166.57	81.36%
ENTERPRISE BANK INC (A THRIFT BANK)	162,793,960.21	246,335,593.41	66.09%
BATAAN DEVELOPMENT BANK	50,469,862.82	77,886,567.78	64.80%
METRO CEBU PUBLIC SAVINGS BANK	33,328,159.81	53,298,391.58	62.53%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	48,429,367.11	82,822,327.01	58.47%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,045,484,485.30	2,251,018,253.70	46.44%
THE PALAWAN BANK (PALAWAN DB) INC	16,267,106.57	36,343,938.29	44.76%
SAMPAGUITA SAVINGS BANK INC	22,519,095.59	50,440,248.10	44.65%
FARMERS SAVINGS & LOAN BANK INC	49,918,290.15	111,857,927.21	44.63%
PHIL POSTAL SAVINGS BANK INC	462,011,415.77	1,080,638,237.99	42.75%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	146,949,069.01	357,813,950.54	41.07%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	700,932,401.36	1,743,136,918.12	40.21%
WEALTH DEVELOPMENT BANK CORPORATION	157,419,585.34	402,206,774.22	39.14%
BANK OF MAKATI (A SAVINGS BANK) INC	2,400,400,159.25	6,169,826,293.68	38.91%
STANDARD CHARTERED BANK	2,494,964,777.72	6,542,901,485.58	38.13%
PAMPANGA DEVELOPMENT BANK	47,138,769.45	127,947,695.56	36.84%
MALAYAN BANK SAVINGS AND MORT BANK INC	342,282,888.27	977,025,136.36	35.03%
PHILIPPINE VETERANS BANK	1,585,158,457.78	4,586,483,649.12	34.56%
MARITIME SAVINGS BANK CORPORATION	21,429,848.76	64,439,287.75	33.26%
1ST VALLEY BANK INC A DEVELOPMENT BANK	447,288,313.85	1,352,795,650.81	33.06%
NORTHPOINT DEV'T BANK INC	102,772,457.86	315,619,166.13	32.56%
UCPB SAVINGS BANK	730,761,239.57	2,369,200,096.80	30.84%
CHINA BANK SAVINGS INC	1,344,409,655.05	4,360,468,878.15	30.83%
UNITED COCONUT PLANTERS BANK	5,384,830,679.52	17,569,627,240.59	30.65%
VILLAGE BANK INC (A THRIFT BANK)	21,565,468.48	76,711,137.23	28.11%
RCBC SAVINGS BANK INC	2,534,077,126.32	9,433,461,493.67	26.86%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	26,629,508.90	99,238,416.13	26.83%
PHIL STAR DEVELOPMENT BANK INC	22,292,920.67	85,980,532.55	25.93%
PHIL SAVINGS BANK	4,397,573,100.68	18,159,805,043.17	24.22%
EAST WEST BANKING CORP	7,131,526,803.80	30,297,400,514.06	23.54%
BPI FAMILY SAVINGS BANK INC	6,072,649,872.13	25,861,421,331.85	23.48%
PHIL BANK OF COMMUNICATIONS	2,069,016,935.20	8,931,372,790.48	23.17%
FIRST CONSOLIDATED BANK INC (A PDB)	757,048,403.69	3,283,692,026.22	23.05%
PRODUCERS SAVINGS BANK CORPORATION	285,328,808.37	1,454,645,137.95	19.62%
MALASIQUI PROGRESSIVE SLB, INC	10,068,479.25	53,905,158.84	18.68%
MAYBANK PHILIPPINES INC	2,151,171,796.44	11,660,737,237.14	18.45%
DEVELOPMENT BANK OF THE PHIL	6,610,033,570.26	37,661,143,648.93	17.55%
DUMAGUETE CITY DEV BANK INC	39,719,065.35	233,260,343.01	17.03%
LIFE SAVINGS BANK INC	10,440,713.55	64,124,743.35	16.28%
UNION BANK OF THE PHILS	8,484,078,177.00	54,677,515,622.64	15.52%
CITY SAVINGS BANK INC	1,235,081,286.28	8,569,924,286.17	14.41%
BUSINESS AND CONSUMERS BANK (A DB)	12,399,731.76	86,171,880.35	14.39%
CITYSTATE SAVINGS BANK INC	87,712,793.79	613,653,633.38	14.29%
BPI DIRECT SAVINGS BANK INC	212,147,520.83	1,551,375,150.71	13.67%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,133,272,108.60	8,506,415,071.27	13.32%
BANK OF COMMERCE	1,883,473,725.81	15,372,861,790.21	12.25%
INTER-ASIA DEVELOPMENT BANK	7,023,615.99	58,038,047.36	12.10%
TONGYANG SAVINGS BANK INC	115,864,158.09	991,348,210.41	11.69%
CORDILLERA SAVINGS BANK INC	14,010,173.80	122,612,051.87	11.43%
HIYAS BANKING CORPORATION	13,440,327.29	124,212,797.56	10.82%
PHIL NATIONAL BANK	8,979,418,689.07	94,336,018,948.68	9.52%
CHINA BANKING CORP	4,998,611,550.82	54,136,237,856.50	9.23%
SUN SAVINGS BANK INC	11,728,958.11	144,552,751.03	8.11%
TOWER DEVELOPMENT BANK	9,758,001.50	121,179,508.67	8.05%
LAND BANK OF THE PHILIPPINES	6,394,449,785.12	79,988,395,125.48	7.99%
HONGKONG & SHANGHAI BANKING CORP	1,006,960,615.03	13,427,595,287.40	7.50%
BANK OF CHINA LIMITED-MANILA BRANCH	189,040,895.91	2,560,466,878.29	7.38%
BDO UNIBANK INC	13,695,744,420.58	198,636,323,310.40	6.89%
ASIA UNITED BANK CORPORATION	1,348,045,781.88	19,602,284,685.06	6.88%
CITIBANK, N.A.	837,044,060.26	12,482,611,322.60	6.71%
CARD SME BANK INC A THRIFT BANK	33,820,537.59	567,925,344.72	5.96%
BANK ONE SAVINGS AND TRUST CORP.	33,086,905.40	566,313,403.38	5.84%
ROBINSONS BANK CORPORATION	676,106,852.49	11,871,128,223.97	5.70%
BANK OF THE PHIL ISLANDS	8,088,920,117.06	145,768,673,400.68	5.55%
CTBC BANK (PHILIPPINES) CORP	355,322,184.41	6,779,779,920.99	5.24%
UNIVERSITY SAVINGS BANK INC	20,050,549.52	401,889,444.22	4.99%
OPTIMUM DEVELOPMENT BANK INC	40,145,568.50	825,164,649.48	4.87%
PACIFIC ACE SAVINGS BANK INC	3,519,880.87	73,124,373.36	4.81%
PNB SAVINGS BANK	527,679,432.71	11,227,304,868.99	4.70%
LEMERY SAVINGS & LOAN BANK, INC.	3,493,496.26	76,552,736.44	4.56%
PHIL TRUST COMPANY	1,070,276,002.16	23,597,260,991.96	4.54%
CENTURY SAVINGS BANK CORPORATION	37,352,904.08	945,698,562.76	3.95%
RIZAL COMM'L BANKING CORP	2,200,004,235.43	58,096,031,353.84	3.79%
HSBC SAVINGS BANK(PHILS) INC	63,178,946.54	1,779,893,083.96	3.55%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	21,961,557.01	663,791,367.82	3.31%
SECURITY BANK CORP	1,331,116,734.82	53,161,087,946.26	2.50%
BATAAN SAVINGS AND LOAN BANK	1,382,910.95	58,963,858.31	2.35%
MERCHANTS SAVINGS & LOAN ASSN INC	11,314,946.95	619,593,346.12	1.83%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,029,502.50	59,241,601.39	1.74%
BANGKOK BANK PUBLIC CO LTD	48,610,175.73	3,096,889,746.15	1.57%
KOREA EXCHANGE BANK	23,550,189.24	1,650,276,581.39	1.43%
PROGRESS SAVINGS AND LOAN BANK INC	1,102,802.67	79,581,923.00	1.39%
METROPOLITAN BANK & TCO	2,532,688,458.77	186,856,957,826.21	1.36%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,396,068.42	350,233,446.49	1.26%
ANZ BANKING GROUP LTD	23,339,114.85	4,248,750,490.84	0.55%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,401,656,478.36	0.05%
UNITED OVERSEAS BANK PHILIPPINES	489,134.00	1,013,213,710.78	0.05%
ING BANK N.V.	96.12	2,643,073,866.84	0.00%
BANK OF AMERICA N.A.	4.00	2,074,938,848.20	0.00%
BDO PRIVATE BANK, INC.	0.00	5,574,006,771.00	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,126,668,534.24	0.00%
DEUTSCHE BANK AG	0.00	2,335,083,540.71	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,170,723,845.28	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	662,816,886.24	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	2,008,657,672.41	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	2,745,601,783.68	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,103,651,032.60	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	12,878,271,431.75	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,754,838,542.98	0.00%
Grand Total	122,522,182,127.90	1,326,901,106,805.98	9.23%

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 loans 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, 2015, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 376.679 billion or more than 3 times the size of the Philippine Banking System's NPLs of PhP 122.522 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, 2015
	Classified Loans	NPL	Classified Loans/NPL
Bank	(In PHP)	(In PHP)	(In %)
BANK OF AMERICA N.A.	5,514,000.00	4.00	137850000.00%
ING BANK N.V.	54,800,000.00	96.12	57012068.25%
BANK OF CHINA LIMITED-MANILA BRANCH	12,321,063,388.97	189,040,895.91	6517.67%
UNITED OVERSEAS BANK PHILIPPINES	14,664,217.32	489,134.00	2998.00%
VILLAGE BANK INC (A THRIFT BANK)	541,312,978.54	21,565,468.48	2510.09%
INTER-ASIA DEVELOPMENT BANK	174,765,331.24	7,023,615.99	2488.25%
KOREA EXCHANGE BANK	509,926,022.63	23,550,189.24	2165.27%
CITIBANK, N.A.	11,962,004,000.00	837,044,060.26	1429.08%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,029,811.60	1,029,502.50	1362.78%
BANK OF COMMERCE	22,618,000,000.00	1,883,473,725.81	1200.87%
COMSAVINGS BANK	1,275,879,789.57	124,154,088.77	1027.66%
METROPOLITAN BANK & TCO	22,407,341,709.98	2,532,688,458.77	884.73%
SECURITY BANK CORP	10,099,000,000.00	1,331,116,734.82	758.69%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	39,719,065.35	696.18%
BANK ONE SAVINGS AND TRUST CORP.	215,783,460.35	33,086,905.40	652.17%
CENTURY SAVINGS BANK CORPORATION	237,766,633.02	37,352,904.08	636.54%
OPTIMUM DEVELOPMENT BANK INC	250,230,364.72	40,145,568.50	623.31%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	132,200,985.20	21,961,557.01	601.97%
UNIVERSITY SAVINGS BANK INC	103,705,565.91	20,050,549.52	517.22%
BDO UNIBANK INC	58,329,646,955.95	13,695,744,420.58	425.90%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	5,384,830,679.52	399.03%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,344,227,189.72	342,282,888.27	392.72%
PHIL NATIONAL BANK	33,185,408,762.17	8,979,418,689.07	369.57%
TONGYANG SAVINGS BANK INC	424,613,713.75	115,864,158.09	366.48%
UCPB SAVINGS BANK	2,667,511,000.00	730,761,239.57	365.03%
PHIL TRUST COMPANY	3,888,673,000.00	1,070,276,002.16	363.33%
TOWER DEVELOPMENT BANK	35,382,923.37	9,758,001.50	362.60%
RIZAL COMM'L BANKING CORP	7,843,158,099.33	2,200,004,235.43	356.51%
CORDILLERA SAVINGS BANK INC	45,016,436.04	14,010,173.80	321.31%
ASIA UNITED BANK CORPORATION	4,312,738,641.79	1,348,045,781.88	319.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	4,396,068.42	317.84%
LAND BANK OF THE PHILIPPINES	20,223,753,373.13	6,394,449,785.12	316.27%
PHIL SAVINGS BANK	13,452,033,668.31	4,397,573,100.68	305.90%
LIFE SAVINGS BANK INC	29,655,851.71	10,440,713.55	284.04%
RCBC SAVINGS BANK INC	6,940,955,925.00	2,534,077,126.32	273.90%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,914,075,159.43	700,932,401.36	273.08%
UNION BANK OF THE PHILS	22,402,716,686.64	8,484,078,177.00	264.06%
PHIL STAR DEVELOPMENT BANK INC	58,291,210.37	22,292,920.67	261.48%
CHINA BANKING CORP	11,370,501,298.73	4,998,611,550.82	227.47%
PHILIPPINE VETERANS BANK	3,585,084,876.68	1,585,158,457.78	226.17%
ROBINSONS BANK CORPORATION	1,526,179,000.00	676,106,852.49	225.73%
BATAAN DEVELOPMENT BANK	102,400,000.00	50,469,862.82	202.89%
LEGAZPI SAVINGS BANK INC	883,980,000.00	442,184,092.66	199.91%
BANK OF THE PHIL ISLANDS	15,686,434,491.48	8,088,920,117.06	193.92%
FARMERS SAVINGS & LOAN BANK INC	95,444,343.47	49,918,290.15	191.20%
PRODUCERS SAVINGS BANK CORPORATION	530,897,935.33	285,328,808.37	186.07%
WEALTH DEVELOPMENT BANK CORPORATION	292,070,922.38	157,419,585.34	185.54%
METRO CEBU PUBLIC SAVINGS BANK	60,826,294.74	33,328,159.81	182.51%
CTBC BANK (PHILIPPINES) CORP	620,735,611.46	355,322,184.41	174.70%
PLANTERS DEVELOPMENT BANK	5,186,365,981.32	3,008,786,024.04	172.37%
CHINA BANK SAVINGS INC	2,219,000,892.75	1,344,409,655.05	165.05%
BPI FAMILY SAVINGS BANK INC	9,960,908,776.90	6,072,649,872.13	164.03%
PHIL POSTAL SAVINGS BANK INC	705,786,885.03	462,011,415.77	152.76%
MARITIME SAVINGS BANK CORPORATION	31,999,701.78	21,429,848.76	149.32%
STANDARD CHARTERED BANK	3,666,762,122.90	2,494,964,777.72	146.97%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	38,371,686.95	26,629,508.90	144.09%
DEVELOPMENT BANK OF THE PHIL	9,447,613,000.17	6,610,033,570.26	142.93%
BANK OF MAKATI (A SAVINGS BANK) INC	3,413,425,739.18	2,400,400,159.25	142.20%
FIRST CONSOLIDATED BANK INC (A PDB)	1,076,049,881.56	757,048,403.69	142.14%
WORLD PARTNERS BANK (A THRIFT BANK)	125,749,263.02	89577030.51	140.38%
PNB SAVINGS BANK	739,489,274.35	527,679,432.71	140.14%
MAYBANK PHILIPPINES INC	3,006,506,826.16	2,151,171,796.44	139.76%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	200,713,981.75	146,949,069.01	136.59%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	1,006,960,615.03	128.40%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	1,133,272,108.60	128.40%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	1,045,484,485.30	125.64%
BPI DIRECT SAVINGS BANK INC	262,015,426.70	212,147,520.83	123.51%
EQUICOM SAVINGS BANK INC	714,166,623.44	581,436,111.35	122.83%
EAST WEST BANKING CORP	8,692,840,178.42	7,131,526,803.80	121.89%
CITY SAVINGS BANK INC	1,401,723,686.86	1,235,081,286.28	113.49%
ANZ BANKING GROUP LTD	25,176,907.07	23,339,114.85	107.87%
SAMPAGUITA SAVINGS BANK INC	24,185,133.79	22,519,095.59	107.40%
1ST VALLEY BANK INC A DEVELOPMENT BANK	468,012,782.12	447,288,313.85	104.63%
PROGRESS SAVINGS AND LOAN BANK INC	1,118,893.47	1,102,802.67	101.46%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	47,138,769.45	100.54%
LEMERY SAVINGS & LOAN BANK, INC.	3,507,106.55	3,493,496.26	100.39%
BANGKOK BANK PUBLIC CO LTD	48,610,175.73	48,610,175.73	100.00%
BATAAN SAVINGS AND LOAN BANK	1,382,910.95	1,382,910.95	100.00%
HIYAS BANKING CORPORATION	13,440,327.29	13,440,327.29	100.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	734,885.22	100.00%
MALASIQUI PROGRESSIVE SLB, INC	10,068,479.25	10,068,479.25	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	48,429,367.11	48,429,367.11	100.00%
LUZON DEVELOPMENT BANK	457,159,246.03	465,963,002.07	98.11%
SUN SAVINGS BANK INC	11,360,939.35	11,728,958.11	96.86%
HSBC SAVINGS BANK(PHILS) INC	45,092,459.71	63,178,946.54	71.37%
PHIL BANK OF COMMUNICATIONS	318,790,310.20	2,069,016,935.20	15.41%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	12,399,731.76	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	33,820,537.59	0.00%
CITYSTATE SAVINGS BANK INC	0.00	87,712,793.79	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	162,793,960.21	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	48,998,587.50	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	11,314,946.95	0.00%
NORTHPOINT DEV'T BANK INC	0.00	102,772,457.86	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	3,519,880.87	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	16,267,106.57	0.00%
BDO PRIVATE BANK, INC.	0.00	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	NA
DEUTSCHE BANK AG	2,605,355,000.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	0.00	NA
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	829,346,896.40	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	200,853,432.72	0.00	NA
SHINHAN BANK - MANILA BRANCH	0.00	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	NA
Grand Total	376,679,221,527.07	122,522,182,127.90	307.44%

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 Php 376.679 billion or 27.56% of the Php 1.367 trillion in Total Capital Cushion of Philippine Banks as of December 31, 2015.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
December 31, 2015
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)
VILLAGE BANK INC (A THRIFT BANK)	541,312,978.54	90,737,510.56	596.57%
BANK OF CHINA LIMITED-MANILA BRANCH	12,321,063,388.97	2,656,902,956.21	463.74%
LEGAZPI SAVINGS BANK INC	883,980,000.00	237,928,897.09	371.53%
INTER-ASIA DEVELOPMENT BANK	174,765,331.24	56,595,974.69	308.79%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	8,502,227,574.02	252.72%
PLANTERS DEVELOPMENT BANK	5,186,365,981.32	3,475,549,539.90	149.22%
BANK OF COMMERCE	22,618,000,000.00	17,998,319,986.63	125.67%
BATAAN DEVELOPMENT BANK	102,400,000.00	89,393,285.17	114.55%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,344,227,189.72	1,201,791,661.66	111.85%
DEUTSCHE BANK AG	2,605,355,000.00	2,392,198,121.84	108.91%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	255,851,728.23	108.08%
UCPB SAVINGS BANK	2,667,511,000.00	2,510,649,604.22	106.25%
EQUICOM SAVINGS BANK INC	714,166,623.44	787,522,895.46	90.69%
CHINA BANK SAVINGS INC	2,219,000,892.75	2,507,115,465.51	88.51%
METRO CEBU PUBLIC SAVINGS BANK	60,826,294.74	69,486,128.97	87.54%
LUZON DEVELOPMENT BANK	457,159,246.03	624,743,120.16	73.18%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,914,075,159.43	2,622,024,132.32	73.00%
FARMERS SAVINGS & LOAN BANK INC	95,444,343.47	133,562,122.39	71.46%
RCBC SAVINGS BANK INC	6,940,955,925.00	10,023,657,142.95	69.25%
PHIL SAVINGS BANK	13,452,033,668.31	20,212,951,724.56	66.55%
WORLD PARTNERS BANK (A THRIFT BANK)	125,749,263.02	191,585,861.61	65.64%
CITIBANK, N.A.	11,962,004,000.00	18,771,848,958.62	63.72%
PHIL STAR DEVELOPMENT BANK INC	58,291,210.37	92,434,555.46	63.06%
PHIL POSTAL SAVINGS BANK INC	705,786,885.03	1,243,958,319.41	56.74%
WEALTH DEVELOPMENT BANK CORPORATION	292,070,922.38	596,983,917.19	48.92%
BANK OF MAKATI (A SAVINGS BANK) INC	3,413,425,739.18	7,114,206,210.36	47.98%
PHILIPPINE VETERANS BANK	3,585,084,876.68	7,540,206,089.93	47.55%
LIFE SAVINGS BANK INC	29,655,851.71	62,751,735.28	47.26%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	200,713,981.75	441,321,528.25	45.48%
MARITIME SAVINGS BANK CORPORATION	31,999,701.78	71,387,932.99	44.83%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	3,000,181,680.46	43.78%
STANDARD CHARTERED BANK	3,666,762,122.90	8,635,581,181.80	42.46%
MEGA INT'L COMM'L BANK CO LTD	829,346,896.40	2,046,293,143.61	40.53%
UNION BANK OF THE PHILS	22,402,716,686.64	58,816,804,232.91	38.09%
BANK ONE SAVINGS AND TRUST CORP.	215,783,460.35	571,463,820.50	37.76%
UNIVERSITY SAVINGS BANK INC	103,705,565.91	278,208,871.37	37.28%
TONGYANG SAVINGS BANK INC	424,613,713.75	1,147,287,423.81	37.01%
PRODUCERS SAVINGS BANK CORPORATION	530,897,935.33	1,457,066,010.86	36.44%
BPI FAMILY SAVINGS BANK INC	9,960,908,776.90	27,919,976,261.70	35.68%
SAMPAGUITA SAVINGS BANK INC	24,185,133.79	68,031,335.44	35.55%
1ST VALLEY BANK INC A DEVELOPMENT BANK	468,012,782.12	1,323,594,513.27	35.36%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	38,371,686.95	114,937,457.76	33.38%
CORDILLERA SAVINGS BANK INC	45,016,436.04	135,707,437.08	33.17%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	147,295,553.37	32.18%
KOREA EXCHANGE BANK	509,926,022.63	1,589,721,674.36	32.08%
FIRST CONSOLIDATED BANK INC (A PDB)	1,076,049,881.56	3,433,302,388.62	31.34%
LAND BANK OF THE PHILIPPINES	20,223,753,373.13	66,830,223,203.17	30.26%
PHIL NATIONAL BANK	33,185,408,762.17	110,370,895,592.80	30.07%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	48,429,367.11	163,639,623.55	29.60%
OPTIMUM DEVELOPMENT BANK INC	250,230,364.72	850,883,455.83	29.41%
BDO UNIBANK INC	58,329,646,955.95	201,767,104,648.56	28.91%
TOWER DEVELOPMENT BANK	35,382,923.37	124,042,467.87	28.52%
EAST WEST BANKING CORP	8,692,840,178.42	32,680,775,377.21	26.60%
CENTURY SAVINGS BANK CORPORATION	237,766,633.02	925,073,723.73	25.70%
MAYBANK PHILIPPINES INC	3,006,506,826.16	12,385,233,303.26	24.27%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,029,811.60	59,379,139.84	23.63%
DEVELOPMENT BANK OF THE PHIL	9,447,613,000.17	40,438,527,157.56	23.36%
ROBINSONS BANK CORPORATION	1,526,179,000.00	7,131,138,838.50	21.40%
SECURITY BANK CORP	10,099,000,000.00	48,500,210,695.19	20.82%
CITY SAVINGS BANK INC	1,401,723,686.86	7,101,759,477.50	19.74%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	132,200,985.20	684,403,924.57	19.32%
ASIA UNITED BANK CORPORATION	4,312,738,641.79	22,813,757,200.34	18.90%
CHINA BANKING CORP	11,370,501,298.73	61,657,963,250.77	18.44%
BPI DIRECT SAVINGS BANK INC	262,015,426.70	1,476,402,643.66	17.75%
PHIL TRUST COMPANY	3,888,673,000.00	22,004,630,410.34	17.67%
MALASIQUI PROGRESSIVE SLB, INC	10,068,479.25	61,089,755.22	16.48%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	9,510,357,183.27	15.30%
RIZAL COMM'L BANKING CORP	7,843,158,099.33	56,993,402,695.31	13.76%
METROPOLITAN BANK & TCO	22,407,341,709.98	196,505,872,177.64	11.40%
BANK OF THE PHIL ISLANDS	15,686,434,491.48	146,178,482,570.03	10.73%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	14,385,254,431.09	8.99%
CTBC BANK (PHILIPPINES) CORP	620,735,611.46	7,000,985,936.08	8.87%
HIYAS BANKING CORPORATION	13,440,327.29	152,853,860.82	8.79%
SUN SAVINGS BANK INC	11,360,939.35	153,367,738.08	7.41%
MIZUHO BANK LTD - MANILA BRANCH	200,853,432.72	3,029,990,103.14	6.63%
PNB SAVINGS BANK	739,489,274.35	11,633,679,534.67	6.36%
LEMERY SAVINGS & LOAN BANK, INC.	3,507,106.55	79,034,714.75	4.44%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	379,423,835.68	3.68%
PHIL BANK OF COMMUNICATIONS	318,790,310.20	9,471,477,821.60	3.37%
HSBC SAVINGS BANK(PHILS) INC	45,092,459.71	1,867,465,111.75	2.41%
BATAAN SAVINGS AND LOAN BANK	1,382,910.95	60,558,902.93	2.28%
ING BANK N.V.	54,800,000.00	2,557,950,204.78	2.14%
BANGKOK BANK PUBLIC CO LTD	48,610,175.73	3,400,771,927.00	1.43%
PROGRESS SAVINGS AND LOAN BANK INC	1,118,893.47	79,824,612.05	1.40%
UNITED OVERSEAS BANK PHILIPPINES	14,664,217.32	1,179,033,458.56	1.24%
ANZ BANKING GROUP LTD	25,176,907.07	4,429,020,736.80	0.57%
BANK OF AMERICA N.A.	5,514,000.00	2,123,761,205.20	0.26%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,407,724,000.00	0.05%
BDO PRIVATE BANK, INC.	0.00	5,195,464,795.47	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	89,631,792.07	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	469,570,782.19	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,126,668,534.24	0.00%
CITYSTATE SAVINGS BANK INC	0.00	638,242,673.73	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	292,351,344.09	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,171,948,865.28	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	656,964,240.35	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	138,490,935.75	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	677,751,954.57	0.00%
NORTHPOINT DEV'T BANK INC	0.00	391,796,179.33	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	75,953,107.77	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,623,570.00	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,002,370,356.34	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,967,420,166.75	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	47,745,091.20	0.00%
COMSAVINGS BANK	1,275,879,789.57	-65,448,243.20	-1949.45%
Grand Total	376,679,221,527.07	1,366,947,320,465.19	27.56%

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 27.56% 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 2.76% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 13.78%.

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 (-194.94% reduction in Total Capital Cushion)
2. Village Bank Inc. (59.66% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (46.37% reduction in Total Capital Cushion)
4. Legazpi Savings Bank (37.15% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (30.88% reduction in Total Capital Cushion)

It is important to note that Comsavings Bank already had a negative Total Capital Cushion of Php 65.448 million as of December 31, 2015.  So any reduction in Total Capital Cushion by a decline in the value of its Classified Loans would produce an even more negative Total Capital Cushion. The bank was shut down by the BSP last May 13, 2016.

A 20% write-off of Classified Loans will totally wipe out the Total Capital Cushion of two  banks and severely impact the Total Capital Cushion of four more banks:

1. Comsavings Bank (-389.89% reduction in Total Capital Cushion)
2. Village Bank Inc. (119.31% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (92.75% reduction in Total Capital Cushion)
4. Legazpi Savings Bank (74.31% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (61.76% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (50.54% 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 (-584.83% reduction in Total Capital Cushion)
2. Village Bank Inc. (178.97% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (139.12% reduction in Total Capital Cushion)
4. Legazpi Savings Bank (111.46% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (92.64% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (75.82% reduction in Total Capital Cushion)
7. Planters Development Bank (44.77% reduction in Total Capital Cushion)
8. Bank of Commerce (37.70% reduction in Total Capital Cushion)
9. Bataan Development Bank (34.36% reduction in Total Capital Cushion)
10. Malayan Bank Savings and Mortgage Bank Inc (33.56% reduction in Total Capital Cushion)
11. Deutsche Bank AG (32.67% reduction in Total Capital Cushion)
12. Dumaguete City Development Bank (32.42% reduction in Total Capital Cushion)
13. UCPB Savings Bank (31.87% 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 ten more banks:

1. Comsavings Bank (-779.78% reduction in Total Capital Cushion)
2. Village Bank Inc. (238.63% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (185.50% reduction in Total Capital Cushion)
4. Legazpi Savings Bank (148.61% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (123.52% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (101.09% reduction in Total Capital Cushion)
7. Planters Development Bank (59.69% reduction in Total Capital Cushion)
8. Bank of Commerce (50.27% reduction in Total Capital Cushion)
9. Bataan Development Bank (45.82% reduction in Total Capital Cushion)
10. Malayan Bank Savings and Mortgage Bank Inc (44.74% reduction in Total Capital Cushion)
11. Deutsche Bank AG (43.56% reduction in Total Capital Cushion)
12. Dumaguete City Development Bank (43.23% reduction in Total Capital Cushion)
13. UCPB Savings Bank (42.50% reduction in Total Capital Cushion)
14. Equicom Savings Bank Inc (36.27% reduction in Total Capital Cushion)
15. China Bank Savings Inc (35.40% reduction in Total Capital Cushion)
16. Metro Cebu Public Savings Bank (35.01% reduction in Total Capital Cushion)

A 50% 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 eighteen more banks:

1. Comsavings Bank (-974.72% reduction in Total Capital Cushion)
2. Village Bank Inc. (298.29% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (231.87% reduction in Total Capital Cushion)
4. Legazpi Savings Bank (185.77% reduction in Total Capital Cushion)
5. Inter-Asia Development Bank (154.40% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (126.36% reduction in Total Capital Cushion)
7. Planters Development Bank (74.61% reduction in Total Capital Cushion)
8. Bank of Commerce (62.83% reduction in Total Capital Cushion)
9. Bataan Development Bank (57.27% reduction in Total Capital Cushion)
10. Malayan Bank Savings and Mortgage Bank Inc (55.93% reduction in Total Capital Cushion)
11. Deutsche Bank AG (54.46% reduction in Total Capital Cushion)
12. Dumaguete City Development Bank (54.04% reduction in Total Capital Cushion)
13. UCPB Savings Bank (53.12% reduction in Total Capital Cushion)
14. Equicom Savings Bank Inc (45.34% reduction in Total Capital Cushion)
15. China Bank Savings Inc (44.25% reduction in Total Capital Cushion)
16. Metro Cebu Public Savings Bank (43.77% reduction in Total Capital Cushion)
17. Luzon Development Bank (36.59% reduction in Total Capital Cushion)
18. Philippine Resources Savings Banking Corporation (36.50% reduction in Total Capital Cushion)
19. Farmers Savings & Loan Bank Inc (35.73% reduction in Total Capital Cushion)
20. RCBC Savings Bank Inc (34.62% reduction in Total Capital Cushion)
21. Philippine Savings Bank (33.28% reduction in Total Capital Cushion)
22. World Partners Bank (32.82% reduction in Total Capital Cushion)
23. Citibank, N.A. (31.86% reduction in Total Capital Cushion)
24. Philippine Star Development Bank Inc (31.53% 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, 2015".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of December 31, 2015".  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, 2015
	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 %)
VILLAGE BANK INC (A THRIFT BANK)	541,312,978.54	90,737,510.56	596.57%	59.66%	119.31%	178.97%	238.63%	298.29%
BANK OF CHINA LIMITED-MANILA BRANCH	12,321,063,388.97	2,656,902,956.21	463.74%	46.37%	92.75%	139.12%	185.50%	231.87%
LEGAZPI SAVINGS BANK INC	883,980,000.00	237,928,897.09	371.53%	37.15%	74.31%	111.46%	148.61%	185.77%
INTER-ASIA DEVELOPMENT BANK	174,765,331.24	56,595,974.69	308.79%	30.88%	61.76%	92.64%	123.52%	154.40%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	8,502,227,574.02	252.72%	25.27%	50.54%	75.82%	101.09%	126.36%
PLANTERS DEVELOPMENT BANK	5,186,365,981.32	3,475,549,539.90	149.22%	14.92%	29.84%	44.77%	59.69%	74.61%
BANK OF COMMERCE	22,618,000,000.00	17,998,319,986.63	125.67%	12.57%	25.13%	37.70%	50.27%	62.83%
BATAAN DEVELOPMENT BANK	102,400,000.00	89,393,285.17	114.55%	11.45%	22.91%	34.36%	45.82%	57.27%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,344,227,189.72	1,201,791,661.66	111.85%	11.19%	22.37%	33.56%	44.74%	55.93%
DEUTSCHE BANK AG	2,605,355,000.00	2,392,198,121.84	108.91%	10.89%	21.78%	32.67%	43.56%	54.46%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	255,851,728.23	108.08%	10.81%	21.62%	32.42%	43.23%	54.04%
UCPB SAVINGS BANK	2,667,511,000.00	2,510,649,604.22	106.25%	10.62%	21.25%	31.87%	42.50%	53.12%
EQUICOM SAVINGS BANK INC	714,166,623.44	787,522,895.46	90.69%	9.07%	18.14%	27.21%	36.27%	45.34%
CHINA BANK SAVINGS INC	2,219,000,892.75	2,507,115,465.51	88.51%	8.85%	17.70%	26.55%	35.40%	44.25%
METRO CEBU PUBLIC SAVINGS BANK	60,826,294.74	69,486,128.97	87.54%	8.75%	17.51%	26.26%	35.01%	43.77%
LUZON DEVELOPMENT BANK	457,159,246.03	624,743,120.16	73.18%	7.32%	14.64%	21.95%	29.27%	36.59%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,914,075,159.43	2,622,024,132.32	73.00%	7.30%	14.60%	21.90%	29.20%	36.50%
FARMERS SAVINGS & LOAN BANK INC	95,444,343.47	133,562,122.39	71.46%	7.15%	14.29%	21.44%	28.58%	35.73%
RCBC SAVINGS BANK INC	6,940,955,925.00	10,023,657,142.95	69.25%	6.92%	13.85%	20.77%	27.70%	34.62%
PHIL SAVINGS BANK	13,452,033,668.31	20,212,951,724.56	66.55%	6.66%	13.31%	19.97%	26.62%	33.28%
WORLD PARTNERS BANK (A THRIFT BANK)	125,749,263.02	191,585,861.61	65.64%	6.56%	13.13%	19.69%	26.25%	32.82%
CITIBANK, N.A.	11,962,004,000.00	18,771,848,958.62	63.72%	6.37%	12.74%	19.12%	25.49%	31.86%
PHIL STAR DEVELOPMENT BANK INC	58,291,210.37	92,434,555.46	63.06%	6.31%	12.61%	18.92%	25.22%	31.53%
PHIL POSTAL SAVINGS BANK INC	705,786,885.03	1,243,958,319.41	56.74%	5.67%	11.35%	17.02%	22.69%	28.37%
WEALTH DEVELOPMENT BANK CORPORATION	292,070,922.38	596,983,917.19	48.92%	4.89%	9.78%	14.68%	19.57%	24.46%
BANK OF MAKATI (A SAVINGS BANK) INC	3,413,425,739.18	7,114,206,210.36	47.98%	4.80%	9.60%	14.39%	19.19%	23.99%
PHILIPPINE VETERANS BANK	3,585,084,876.68	7,540,206,089.93	47.55%	4.75%	9.51%	14.26%	19.02%	23.77%
LIFE SAVINGS BANK INC	29,655,851.71	62,751,735.28	47.26%	4.73%	9.45%	14.18%	18.90%	23.63%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	200,713,981.75	441,321,528.25	45.48%	4.55%	9.10%	13.64%	18.19%	22.74%
MARITIME SAVINGS BANK CORPORATION	31,999,701.78	71,387,932.99	44.83%	4.48%	8.97%	13.45%	17.93%	22.41%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	3,000,181,680.46	43.78%	4.38%	8.76%	13.13%	17.51%	21.89%
STANDARD CHARTERED BANK	3,666,762,122.90	8,635,581,181.80	42.46%	4.25%	8.49%	12.74%	16.98%	21.23%
MEGA INT'L COMM'L BANK CO LTD	829,346,896.40	2,046,293,143.61	40.53%	4.05%	8.11%	12.16%	16.21%	20.26%
UNION BANK OF THE PHILS	22,402,716,686.64	58,816,804,232.91	38.09%	3.81%	7.62%	11.43%	15.24%	19.04%
BANK ONE SAVINGS AND TRUST CORP.	215,783,460.35	571,463,820.50	37.76%	3.78%	7.55%	11.33%	15.10%	18.88%
UNIVERSITY SAVINGS BANK INC	103,705,565.91	278,208,871.37	37.28%	3.73%	7.46%	11.18%	14.91%	18.64%
TONGYANG SAVINGS BANK INC	424,613,713.75	1,147,287,423.81	37.01%	3.70%	7.40%	11.10%	14.80%	18.51%
PRODUCERS SAVINGS BANK CORPORATION	530,897,935.33	1,457,066,010.86	36.44%	3.64%	7.29%	10.93%	14.57%	18.22%
BPI FAMILY SAVINGS BANK INC	9,960,908,776.90	27,919,976,261.70	35.68%	3.57%	7.14%	10.70%	14.27%	17.84%
SAMPAGUITA SAVINGS BANK INC	24,185,133.79	68,031,335.44	35.55%	3.55%	7.11%	10.66%	14.22%	17.77%
1ST VALLEY BANK INC A DEVELOPMENT BANK	468,012,782.12	1,323,594,513.27	35.36%	3.54%	7.07%	10.61%	14.14%	17.68%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	38,371,686.95	114,937,457.76	33.38%	3.34%	6.68%	10.02%	13.35%	16.69%
CORDILLERA SAVINGS BANK INC	45,016,436.04	135,707,437.08	33.17%	3.32%	6.63%	9.95%	13.27%	16.59%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	147,295,553.37	32.18%	3.22%	6.44%	9.65%	12.87%	16.09%
KOREA EXCHANGE BANK	509,926,022.63	1,589,721,674.36	32.08%	3.21%	6.42%	9.62%	12.83%	16.04%
FIRST CONSOLIDATED BANK INC (A PDB)	1,076,049,881.56	3,433,302,388.62	31.34%	3.13%	6.27%	9.40%	12.54%	15.67%
LAND BANK OF THE PHILIPPINES	20,223,753,373.13	66,830,223,203.17	30.26%	3.03%	6.05%	9.08%	12.10%	15.13%
PHIL NATIONAL BANK	33,185,408,762.17	110,370,895,592.80	30.07%	3.01%	6.01%	9.02%	12.03%	15.03%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	48,429,367.11	163,639,623.55	29.60%	2.96%	5.92%	8.88%	11.84%	14.80%
OPTIMUM DEVELOPMENT BANK INC	250,230,364.72	850,883,455.83	29.41%	2.94%	5.88%	8.82%	11.76%	14.70%
BDO UNIBANK INC	58,329,646,955.95	201,767,104,648.56	28.91%	2.89%	5.78%	8.67%	11.56%	14.45%
TOWER DEVELOPMENT BANK	35,382,923.37	124,042,467.87	28.52%	2.85%	5.70%	8.56%	11.41%	14.26%
EAST WEST BANKING CORP	8,692,840,178.42	32,680,775,377.21	26.60%	2.66%	5.32%	7.98%	10.64%	13.30%
CENTURY SAVINGS BANK CORPORATION	237,766,633.02	925,073,723.73	25.70%	2.57%	5.14%	7.71%	10.28%	12.85%
MAYBANK PHILIPPINES INC	3,006,506,826.16	12,385,233,303.26	24.27%	2.43%	4.85%	7.28%	9.71%	12.14%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,029,811.60	59,379,139.84	23.63%	2.36%	4.73%	7.09%	9.45%	11.81%
DEVELOPMENT BANK OF THE PHIL	9,447,613,000.17	40,438,527,157.56	23.36%	2.34%	4.67%	7.01%	9.35%	11.68%
ROBINSONS BANK CORPORATION	1,526,179,000.00	7,131,138,838.50	21.40%	2.14%	4.28%	6.42%	8.56%	10.70%
SECURITY BANK CORP	10,099,000,000.00	48,500,210,695.19	20.82%	2.08%	4.16%	6.25%	8.33%	10.41%
CITY SAVINGS BANK INC	1,401,723,686.86	7,101,759,477.50	19.74%	1.97%	3.95%	5.92%	7.90%	9.87%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	132,200,985.20	684,403,924.57	19.32%	1.93%	3.86%	5.79%	7.73%	9.66%
ASIA UNITED BANK CORPORATION	4,312,738,641.79	22,813,757,200.34	18.90%	1.89%	3.78%	5.67%	7.56%	9.45%
CHINA BANKING CORP	11,370,501,298.73	61,657,963,250.77	18.44%	1.84%	3.69%	5.53%	7.38%	9.22%
BPI DIRECT SAVINGS BANK INC	262,015,426.70	1,476,402,643.66	17.75%	1.77%	3.55%	5.32%	7.10%	8.87%
PHIL TRUST COMPANY	3,888,673,000.00	22,004,630,410.34	17.67%	1.77%	3.53%	5.30%	7.07%	8.84%
MALASIQUI PROGRESSIVE SLB, INC	10,068,479.25	61,089,755.22	16.48%	1.65%	3.30%	4.94%	6.59%	8.24%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	9,510,357,183.27	15.30%	1.53%	3.06%	4.59%	6.12%	7.65%
RIZAL COMM'L BANKING CORP	7,843,158,099.33	56,993,402,695.31	13.76%	1.38%	2.75%	4.13%	5.50%	6.88%
METROPOLITAN BANK & TCO	22,407,341,709.98	196,505,872,177.64	11.40%	1.14%	2.28%	3.42%	4.56%	5.70%
BANK OF THE PHIL ISLANDS	15,686,434,491.48	146,178,482,570.03	10.73%	1.07%	2.15%	3.22%	4.29%	5.37%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	14,385,254,431.09	8.99%	0.90%	1.80%	2.70%	3.60%	4.49%
CTBC BANK (PHILIPPINES) CORP	620,735,611.46	7,000,985,936.08	8.87%	0.89%	1.77%	2.66%	3.55%	4.43%
HIYAS BANKING CORPORATION	13,440,327.29	152,853,860.82	8.79%	0.88%	1.76%	2.64%	3.52%	4.40%
SUN SAVINGS BANK INC	11,360,939.35	153,367,738.08	7.41%	0.74%	1.48%	2.22%	2.96%	3.70%
MIZUHO BANK LTD - MANILA BRANCH	200,853,432.72	3,029,990,103.14	6.63%	0.66%	1.33%	1.99%	2.65%	3.31%
PNB SAVINGS BANK	739,489,274.35	11,633,679,534.67	6.36%	0.64%	1.27%	1.91%	2.54%	3.18%
LEMERY SAVINGS & LOAN BANK, INC.	3,507,106.55	79,034,714.75	4.44%	0.44%	0.89%	1.33%	1.77%	2.22%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	13,972,461.61	379,423,835.68	3.68%	0.37%	0.74%	1.10%	1.47%	1.84%
PHIL BANK OF COMMUNICATIONS	318,790,310.20	9,471,477,821.60	3.37%	0.34%	0.67%	1.01%	1.35%	1.68%
HSBC SAVINGS BANK(PHILS) INC	45,092,459.71	1,867,465,111.75	2.41%	0.24%	0.48%	0.72%	0.97%	1.21%
BATAAN SAVINGS AND LOAN BANK	1,382,910.95	60,558,902.93	2.28%	0.23%	0.46%	0.69%	0.91%	1.14%
ING BANK N.V.	54,800,000.00	2,557,950,204.78	2.14%	0.21%	0.43%	0.64%	0.86%	1.07%
BANGKOK BANK PUBLIC CO LTD	48,610,175.73	3,400,771,927.00	1.43%	0.14%	0.29%	0.43%	0.57%	0.71%
PROGRESS SAVINGS AND LOAN BANK INC	1,118,893.47	79,824,612.05	1.40%	0.14%	0.28%	0.42%	0.56%	0.70%
UNITED OVERSEAS BANK PHILIPPINES	14,664,217.32	1,179,033,458.56	1.24%	0.12%	0.25%	0.37%	0.50%	0.62%
ANZ BANKING GROUP LTD	25,176,907.07	4,429,020,736.80	0.57%	0.06%	0.11%	0.17%	0.23%	0.28%
BANK OF AMERICA N.A.	5,514,000.00	2,123,761,205.20	0.26%	0.03%	0.05%	0.08%	0.10%	0.13%
JP MORGAN CHASE BANK NATIONAL ASSN.	734,885.22	1,407,724,000.00	0.05%	0.01%	0.01%	0.02%	0.02%	0.03%
BDO PRIVATE BANK, INC.	0.00	5,195,464,795.47	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	89,631,792.07	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	469,570,782.19	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,126,668,534.24	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CITYSTATE SAVINGS BANK INC	0.00	638,242,673.73	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	292,351,344.09	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,171,948,865.28	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	656,964,240.35	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	138,490,935.75	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	677,751,954.57	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEV'T BANK INC	0.00	391,796,179.33	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	75,953,107.77	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,623,570.00	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,002,370,356.34	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,967,420,166.75	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	47,745,091.20	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
COMSAVINGS BANK	1,275,879,789.57	-65,448,243.20	-1949.45%	-194.94%	-389.89%	-584.83%	-779.78%	-974.72%
Grand Total	376,679,221,527.07	1,366,947,320,465.19	27.56%	2.76%	5.51%	8.27%	11.02%	13.78%

Source: www.bsp.gov.ph