A Simple Stress Test of Philippine Banks as of March 31, 2016

Editor's Note: This is an updated version of an earlier blog post A Simple Stress Test of Philippine Banks as of December 31, 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 March 31, 2016).


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 130.60 billion or 9.52% of the PhP 1,372.34 billion in Stockholders Equity (SE) as of March 31, 2016.  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 March 31, 2016").

The stockholder's equity of two banks, Comsavings Bank aka GSIS Family Bank as well as Legazpi Savings Bank would be completely wiped out. Eleven other banks would be severely affected.  These banks are:

1. MBank Philippines (67.00% decline in SE)
2. World Partners Bank (52.71% decline in SE)
3. Equicom Savings Bank (51.68% decline in SE)
4. Luzon Development Bank (48.81% decline in SE)
5. Opportunity Kauswagan Bank Inc (38,69% decline in SE)
6. Enterprise Bank Inc (37.51% decline in SE)
7. Bataan Development Bank (34.78% decline in SE)
8. Philippine Resources Savings Banking Corporation (33.83% decline in SE)
9. Metro Cebu Public Savings Bank (33.00% decline in SE)
10. Philippine Postal Savings Bank Inc (32.65% decline in SE)
11. China Bank Savings Inc (32.07% decline in SE).

Philippine Banking System
NPL as % of SE
March 31, 2016
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
LEGAZPI SAVINGS BANK INC	444,500,412.39	88,727,977.89	500.97%
MBANK PHILIPPINES (A THRIFT BANK) INC	45,113,736.09	33,665,652.32	134.01%
WORLD PARTNERS BANK (A THRIFT BANK)	89,776,191.28	85,161,688.25	105.42%
EQUICOM SAVINGS BANK INC	628,959,599.20	608,549,369.40	103.35%
LUZON DEVELOPMENT BANK	502,440,093.82	514,702,802.08	97.62%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	54,900,327.72	70,948,851.24	77.38%
ENTERPRISE BANK INC (A THRIFT BANK)	202,762,328.37	270,279,168.77	75.02%
BATAAN DEVELOPMENT BANK	52,217,092.82	75,058,838.36	69.57%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,207,149,863.21	1,784,275,725.57	67.65%
METRO CEBU PUBLIC SAVINGS BANK	33,141,249.35	50,216,111.76	66.00%
PHIL POSTAL SAVINGS BANK INC	717,752,551.68	1,099,051,703.05	65.31%
CHINA BANK SAVINGS INC	4,549,219,978.08	7,091,924,010.19	64.15%
SAMPAGUITA SAVINGS BANK INC	23,413,200.13	50,715,417.18	46.17%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,087,159,493.74	2,357,568,666.67	46.11%
FARMERS SAVINGS & LOAN BANK INC	50,080,709.46	114,600,549.38	43.70%
THE PALAWAN BANK (PALAWAN DB) INC	16,583,546.90	38,246,352.47	43.36%
PAMPANGA DEVELOPMENT BANK	51,534,369.70	127,741,654.42	40.34%
BANK OF MAKATI (A SAVINGS BANK) INC	2,516,436,612.37	6,444,147,100.67	39.05%
WEALTH DEVELOPMENT BANK CORPORATION	171,106,359.50	445,256,651.07	38.43%
UNITED COCONUT PLANTERS BANK	6,836,778,610.02	19,119,359,922.50	35.76%
PHILIPPINE VETERANS BANK	1,615,544,700.24	4,534,821,338.63	35.63%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	133,102,736.71	375,751,041.28	35.42%
UCPB SAVINGS BANK	856,508,320.63	2,435,816,116.04	35.16%
1ST VALLEY BANK INC A DEVELOPMENT BANK	465,054,664.05	1,373,635,240.09	33.86%
MALAYAN BANK SAVINGS AND MORT BANK INC	327,845,644.41	976,392,953.89	33.58%
STANDARD CHARTERED BANK	2,278,638,352.86	6,909,522,224.07	32.98%
VILLAGE BANK INC (A THRIFT BANK)	22,807,557.82	75,877,625.45	30.06%
RCBC SAVINGS BANK INC	2,872,795,780.67	9,598,539,102.47	29.93%
MARITIME SAVINGS BANK CORPORATION	18,967,928.16	63,824,827.96	29.72%
PRODUCERS SAVINGS BANK CORPORATION	419,368,420.08	1,478,697,823.29	28.36%
NORTHPOINT DEV'T BANK INC	94,096,190.02	331,785,905.65	28.36%
PHIL BANK OF COMMUNICATIONS	2,378,811,531.66	8,793,670,836.11	27.05%
PHIL STAR DEVELOPMENT BANK INC	22,292,920.67	86,119,650.31	25.89%
MAYBANK PHILIPPINES INC	3,024,944,946.97	11,807,365,760.48	25.62%
PHIL SAVINGS BANK	4,481,147,395.87	18,366,853,648.79	24.40%
EAST WEST BANKING CORP	7,474,511,324.47	30,858,325,940.39	24.22%
BPI FAMILY SAVINGS BANK INC	6,508,531,670.81	26,936,868,345.36	24.16%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	24,430,246.08	104,169,237.96	23.45%
LIFE SAVINGS BANK INC	14,471,347.63	63,975,738.30	22.62%
MALASIQUI PROGRESSIVE SLB, INC	10,374,279.25	52,445,475.00	19.78%
CITYSTATE SAVINGS BANK INC	104,173,490.42	601,847,752.96	17.31%
FIRST CONSOLIDATED BANK INC (A PDB)	568,716,866.32	3,443,176,463.62	16.52%
DEVELOPMENT BANK OF THE PHIL	7,038,193,955.06	43,024,667,080.31	16.36%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,363,458,725.91	8,830,498,381.84	15.44%
UNION BANK OF THE PHILS	8,360,973,754.06	54,330,880,740.92	15.39%
CITY SAVINGS BANK INC	1,353,054,887.96	9,245,302,494.26	14.64%
BUSINESS AND CONSUMERS BANK (A DB)	12,845,565.49	89,253,707.43	14.39%
CORDILLERA SAVINGS BANK INC	17,515,169.24	125,664,192.35	13.94%
BPI DIRECT SAVINGS BANK INC	207,822,985.12	1,623,265,064.67	12.80%
BANK OF COMMERCE	1,887,090,295.63	15,809,033,366.75	11.94%
INTER-ASIA DEVELOPMENT BANK	6,689,543.53	59,193,775.44	11.30%
TONGYANG SAVINGS BANK INC	109,127,631.25	991,481,664.37	11.01%
DUMAGUETE CITY DEV BANK INC	23,560,325.61	248,579,449.51	9.48%
PHIL NATIONAL BANK	8,780,325,611.75	99,479,327,773.83	8.83%
ASIA UNITED BANK CORPORATION	1,854,694,629.44	21,245,414,031.85	8.73%
CHINA BANKING CORP	4,876,035,550.35	55,960,751,633.40	8.71%
HIYAS BANKING CORPORATION	10,828,045.54	128,294,555.44	8.44%
LAND BANK OF THE  PHILIPPINES	7,511,786,605.02	90,116,747,091.57	8.34%
SUN SAVINGS BANK INC	11,990,048.68	145,145,609.54	8.26%
CARD SME BANK INC A THRIFT BANK	44,589,231.22	567,016,771.25	7.86%
BANK OF CHINA LIMITED-MANILA BRANCH	189,040,895.91	2,437,319,844.20	7.76%
BANK ONE SAVINGS AND TRUST CORP.	43,637,518.34	567,850,432.04	7.68%
CTBC BANK (PHILIPPINES) CORP	487,807,689.04	6,855,830,663.30	7.12%
BDO UNIBANK INC	13,800,355,156.83	203,201,182,701.51	6.79%
HONGKONG & SHANGHAI BANKING CORP	899,409,381.84	13,551,734,365.55	6.64%
CITIBANK, N.A.	837,642,102.38	12,864,767,782.19	6.51%
ROBINSONS BANK CORPORATION	774,220,614.92	12,191,054,863.65	6.35%
TOWER DEVELOPMENT BANK	7,264,450.04	122,222,136.06	5.94%
BANK OF THE PHIL ISLANDS	8,475,648,800.89	151,023,839,498.91	5.61%
PNB SAVINGS BANK	609,706,180.38	11,320,014,373.54	5.39%
PACIFIC ACE SAVINGS BANK INC	3,782,186.69	71,584,754.64	5.28%
OPTIMUM DEVELOPMENT BANK INC	42,853,861.64	833,155,770.67	5.14%
LEMERY SAVINGS & LOAN BANK, INC.	3,881,258.69	77,506,760.30	5.01%
UNIVERSITY SAVINGS BANK INC	20,050,548.52	406,328,237.04	4.93%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	31,084,409.26	657,985,985.94	4.72%
PHIL TRUST COMPANY	1,067,922,361.62	25,726,639,032.81	4.15%
CENTURY SAVINGS BANK CORPORATION	36,700,532.80	952,912,227.68	3.85%
RIZAL COMM'L BANKING CORP	2,003,401,017.35	59,798,545,561.99	3.35%
SECURITY BANK CORP	1,739,821,626.09	56,018,676,065.05	3.11%
MERCHANTS SAVINGS & LOAN ASSN INC	13,753,722.97	612,310,392.33	2.25%
BATAAN SAVINGS AND LOAN BANK	1,309,539.09	58,434,273.10	2.24%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	6,746,068.42	338,395,167.59	1.99%
BANGKOK BANK PUBLIC CO LTD	48,559,050.66	3,114,101,932.72	1.56%
METROPOLITAN BANK & TCO	2,819,089,112.47	185,480,722,434.16	1.52%
KEB HANA BANK - MANILA BRANCH	23,200,185.28	1,544,779,131.02	1.50%
QUEZON COCONUT BANK INC (A THRIFT BANK)	850,456.50	59,144,095.32	1.44%
MEGA INT'L COMM'L BANK CO LTD	19,685,472.23	1,839,767,602.61	1.07%
ANZ BANKING GROUP LTD	1,408,950.67	4,457,320,208.83	0.03%
ING BANK N.V.	94.14	2,479,962,564.12	0.00%
BANK OF AMERICA N.A.	0.00	2,091,322,952.20	0.00%
BDO PRIVATE BANK, INC.	0.00	5,932,232,786.68	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,126,668,534.24	0.00%
DEUTSCHE BANK AG	0.00	2,630,126,392.10	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,156,117,685.21	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	660,909,436.92	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,426,488,603.82	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	2,700,776,216.74	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,193,246,819.78	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,001,849,261.07	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,579,210,136.29	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,428,842,478.45	0.00%
COMSAVINGS BANK	123,954,903.23	-14,871,098.93	-833.53%
Grand Total	130,601,533,351.38	1,372,337,207,709.51	9.52%

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 March 31, 2016, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 346.80 billion or almost 3 times the size of the Philippine Banking System's NPLs of PhP 130.60 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
March 31, 2016
	Classified Loans	NPL	Classified Loans/NPL
Bank	(In PHP)	(In PHP)	(In %)
ING BANK N.V.	50,000,000.00	94.14	53112385.81%
BANK OF CHINA LIMITED-MANILA BRANCH	10,414,138,971.59	189,040,895.91	5508.93%
MEGA INT'L COMM'L BANK CO LTD	1,037,763,474.00	19,685,472.23	5271.72%
INTER-ASIA DEVELOPMENT BANK	177,856,697.55	6,689,543.53	2658.73%
VILLAGE BANK INC (A THRIFT BANK)	587,562,440.70	22,807,557.82	2576.17%
KEB HANA BANK - MANILA BRANCH	465,554,562.05	23,200,185.28	2006.68%
QUEZON COCONUT BANK INC (A THRIFT BANK)	13,648,456.11	850,456.50	1604.84%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	23,560,325.61	1173.66%
COMSAVINGS BANK	1,275,879,789.57	123,954,903.23	1029.31%
TOWER DEVELOPMENT BANK	70,154,289.85	7,264,450.04	965.72%
CITIBANK, N.A.	8,031,133,000.00	837,642,102.38	958.78%
CENTURY SAVINGS BANK CORPORATION	274,293,052.42	36,700,532.80	747.38%
BANK OF COMMERCE	11,975,351,676.18	1,887,090,295.63	634.59%
TONGYANG SAVINGS BANK INC	675,511,598.53	109,127,631.25	619.01%
METROPOLITAN BANK & TCO	17,065,527,468.74	2,819,089,112.47	605.36%
PHIL TRUST COMPANY	6,213,000,000.00	1,067,922,361.62	581.78%
BANK ONE SAVINGS AND TRUST CORP.	227,575,064.92	43,637,518.34	521.51%
SECURITY BANK CORP	9,018,000,000.00	1,739,821,626.09	518.33%
UNIVERSITY SAVINGS BANK INC	102,395,446.55	20,050,548.52	510.69%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	154,986,737.73	31,084,409.26	498.60%
OPTIMUM DEVELOPMENT BANK INC	187,145,413.87	42,853,861.64	436.71%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,346,590,229.07	327,845,644.41	410.74%
PHIL NATIONAL BANK	32,974,338,063.13	8,780,325,611.75	375.55%
RIZAL COMM'L BANKING CORP	7,502,016,567.86	2,003,401,017.35	374.46%
BDO UNIBANK INC	51,178,121,800.96	13,800,355,156.83	370.85%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	6,836,778,610.02	314.29%
UCPB SAVINGS BANK	2,667,511,000.00	856,508,320.63	311.44%
PHIL SAVINGS BANK	12,787,389,798.55	4,481,147,395.87	285.36%
CHINA BANKING CORP	12,773,356,214.72	4,876,035,550.35	261.96%
PHIL STAR DEVELOPMENT BANK INC	58,227,417.25	22,292,920.67	261.19%
UNION BANK OF THE PHILS	21,768,449,343.42	8,360,973,754.06	260.36%
CORDILLERA SAVINGS BANK INC	43,909,274.86	17,515,169.24	250.69%
LAND BANK OF THE  PHILIPPINES	18,306,896,678.48	7,511,786,605.02	243.71%
RCBC SAVINGS BANK INC	6,940,955,925.00	2,872,795,780.67	241.61%
PHILIPPINE VETERANS BANK	3,707,509,011.00	1,615,544,700.24	229.49%
ASIA UNITED BANK CORPORATION	3,948,706,317.94	1,854,694,629.44	212.90%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	14,086,000.00	6,746,068.42	208.80%
LEGAZPI SAVINGS BANK INC	883,980,000.00	444,500,412.39	198.87%
ROBINSONS BANK CORPORATION	1,526,179,000.00	774,220,614.92	197.12%
BATAAN DEVELOPMENT BANK	102,400,000.00	52,217,092.82	196.10%
PRODUCERS SAVINGS BANK CORPORATION	774,891,124.32	419,368,420.08	184.78%
BANK OF THE PHIL ISLANDS	15,628,382,994.83	8,475,648,800.89	184.39%
METRO CEBU PUBLIC SAVINGS BANK	60,820,791.86	33,141,249.35	183.52%
LIFE SAVINGS BANK INC	25,525,783.64	14,471,347.63	176.39%
MAYBANK PHILIPPINES INC	5,120,644,854.36	3,024,944,946.97	169.28%
CHINA BANK SAVINGS INC	7,580,530,004.70	4,549,219,978.08	166.63%
FARMERS SAVINGS & LOAN BANK INC	81,914,422.12	50,080,709.46	163.56%
FIRST CONSOLIDATED BANK INC (A PDB)	898,321,496.71	568,716,866.32	157.96%
MARITIME SAVINGS BANK CORPORATION	29,564,096.26	18,967,928.16	155.86%
BPI FAMILY SAVINGS BANK INC	9,961,139,239.75	6,508,531,670.81	153.05%
STANDARD CHARTERED BANK	3,382,338,008.27	2,278,638,352.86	148.44%
WORLD PARTNERS BANK (A THRIFT BANK)	132,873,581.16	89,776,191.28	148.01%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	899,409,381.84	143.76%
PHIL POSTAL SAVINGS BANK INC	1,024,767,250.65	717,752,551.68	142.77%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	34,649,773.67	24,430,246.08	141.83%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,682,857,632.26	1,207,149,863.21	139.41%
BANK OF MAKATI (A SAVINGS BANK) INC	3,502,646,259.55	2,516,436,612.37	139.19%
DEVELOPMENT BANK OF THE PHIL	9,751,931,038.73	7,038,193,955.06	138.56%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	171,778,130.74	133,102,736.71	129.06%
BPI DIRECT SAVINGS BANK INC	264,298,612.72	207,822,985.12	127.17%
CTBC BANK (PHILIPPINES) CORP	598,186,229.33	487,807,689.04	122.63%
WEALTH DEVELOPMENT BANK CORPORATION	209,352,843.02	171,106,359.50	122.35%
EQUICOM SAVINGS BANK INC	762,130,243.96	628,959,599.20	121.17%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	1,087,159,493.74	120.82%
CITY SAVINGS BANK INC	1,622,760,647.24	1,353,054,887.96	119.93%
LUZON DEVELOPMENT BANK	602,376,075.82	502,440,093.82	119.89%
PNB SAVINGS BANK	724,541,204.70	609,706,180.38	118.83%
EAST WEST BANKING CORP	8,692,840,178.42	7,474,511,324.47	116.30%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	1,363,458,725.91	106.72%
1ST VALLEY BANK INC A DEVELOPMENT BANK	491,040,548.30	465,054,664.05	105.59%
SAMPAGUITA SAVINGS BANK INC	24,172,441.22	23,413,200.13	103.24%
SUN SAVINGS BANK INC	12,136,012.75	11,990,048.68	101.22%
LEMERY SAVINGS & LOAN BANK, INC.	3,885,391.25	3,881,258.69	100.11%
BANGKOK BANK PUBLIC CO LTD	48,559,050.66	48,559,050.66	100.00%
BATAAN SAVINGS AND LOAN BANK	1,309,539.09	1,309,539.09	100.00%
HIYAS BANKING CORPORATION	10,828,045.54	10,828,045.54	100.00%
MALASIQUI PROGRESSIVE SLB, INC	10,374,279.25	10,374,279.25	100.00%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	54,900,327.72	54,900,327.72	100.00%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	51,534,369.70	91.97%
ANZ BANKING GROUP LTD	141,916.70	1,408,950.67	10.07%
PHIL BANK OF COMMUNICATIONS	226,909,091.24	2,378,811,531.66	9.54%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	12,845,565.49	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	44,589,231.22	0.00%
CITYSTATE SAVINGS BANK INC	0.00	104,173,490.42	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	202,762,328.37	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	45,113,736.09	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	13,753,722.97	0.00%
NORTHPOINT DEV'T BANK INC	0.00	94,096,190.02	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	3,782,186.69	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	16,583,546.90	0.00%
BANK OF AMERICA N.A.	5,514,000.00	0.00	NA
BDO PRIVATE BANK, INC.	0.00	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	NA
DEUTSCHE BANK AG	0.00	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
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	0.00	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	172,113,060.00	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	0.00	NA
Grand Total	346,804,779,258.34	130,601,533,351.38	265.54%

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 346.80 billion or 23.52% of the Php 1.47 trillion in Total Capital Cushion of Philippine Banks as of March 31, 2016.

Philippine Banking System
Classified Loans as % of Total Capital Cushion
March 31, 2016
	Classified Loans	Total Capital Cushion	Classified Loans/Total Capital Cushion
Bank	(In Php)	(In Php)	(In %)
VILLAGE BANK INC (A THRIFT BANK)	587,562,440.70	98,507,042.82	596.47%
BANK OF CHINA LIMITED-MANILA BRANCH	10,414,138,971.59	2,637,248,827.89	394.89%
INTER-ASIA DEVELOPMENT BANK	177,856,697.55	60,032,404.14	296.27%
LEGAZPI SAVINGS BANK INC	883,980,000.00	463,291,228.55	190.80%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	11,439,141,113.48	187.84%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,346,590,229.07	1,214,212,954.20	110.90%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	255,768,439.33	108.11%
BATAAN DEVELOPMENT BANK	102,400,000.00	97,245,069.83	105.30%
METRO CEBU PUBLIC SAVINGS BANK	60,820,791.86	58,826,562.87	103.39%
CHINA BANK SAVINGS INC	7,580,530,004.70	7,519,966,463.26	100.81%
UCPB SAVINGS BANK	2,667,511,000.00	2,907,230,864.97	91.75%
EQUICOM SAVINGS BANK INC	762,130,243.96	842,893,942.69	90.42%
LUZON DEVELOPMENT BANK	602,376,075.82	685,550,251.87	87.87%
WORLD PARTNERS BANK (A THRIFT BANK)	132,873,581.16	168,274,099.33	78.96%
PHIL POSTAL SAVINGS BANK INC	1,024,767,250.65	1,410,066,382.25	72.68%
BANK OF COMMERCE	11,975,351,676.18	17,985,142,588.14	66.58%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,682,857,632.26	2,596,821,578.83	64.80%
PHIL STAR DEVELOPMENT BANK INC	58,227,417.25	92,434,555.46	62.99%
TONGYANG SAVINGS BANK INC	675,511,598.53	1,107,771,339.51	60.98%
RCBC SAVINGS BANK INC	6,940,955,925.00	11,499,615,156.28	60.36%
FARMERS SAVINGS & LOAN BANK INC	81,914,422.12	137,146,990.50	59.73%
PHIL SAVINGS BANK	12,787,389,798.55	22,552,935,938.63	56.70%
TOWER DEVELOPMENT BANK	70,154,289.85	124,004,653.02	56.57%
PHILIPPINE VETERANS BANK	3,707,509,011.00	6,763,526,833.49	54.82%
MEGA INT'L COMM'L BANK CO LTD	1,037,763,474.00	2,050,493,141.75	50.61%
PRODUCERS SAVINGS BANK CORPORATION	774,891,124.32	1,609,221,462.65	48.15%
BANK OF MAKATI (A SAVINGS BANK) INC	3,502,646,259.55	7,598,917,740.36	46.09%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	3,023,241,697.66	43.45%
CITIBANK, N.A.	8,031,133,000.00	18,815,440,078.22	42.68%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	54,900,327.72	131,520,320.47	41.74%
MARITIME SAVINGS BANK CORPORATION	29,564,096.26	71,452,966.96	41.38%
STANDARD CHARTERED BANK	3,382,338,008.27	8,469,910,127.39	39.93%
BANK ONE SAVINGS AND TRUST CORP.	227,575,064.92	580,310,341.81	39.22%
MAYBANK PHILIPPINES INC	5,120,644,854.36	13,103,838,803.52	39.08%
LIFE SAVINGS BANK INC	25,525,783.64	66,684,654.29	38.28%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	171,778,130.74	461,105,119.53	37.25%
UNIVERSITY SAVINGS BANK INC	102,395,446.55	278,479,412.43	36.77%
WEALTH DEVELOPMENT BANK CORPORATION	209,352,843.02	570,777,756.23	36.68%
SAMPAGUITA SAVINGS BANK INC	24,172,441.22	68,425,553.24	35.33%
UNION BANK OF THE PHILS	21,768,449,343.42	62,541,287,544.73	34.81%
1ST VALLEY BANK INC A DEVELOPMENT BANK	491,040,548.30	1,518,304,266.04	32.34%
CORDILLERA SAVINGS BANK INC	43,909,274.86	135,877,169.29	32.32%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	152,566,308.90	31.06%
BPI FAMILY SAVINGS BANK INC	9,961,139,239.75	32,418,741,544.47	30.73%
PHIL NATIONAL BANK	32,974,338,063.13	111,433,512,301.44	29.59%
KEB HANA BANK - MANILA BRANCH	465,554,562.05	1,591,275,068.01	29.26%
CENTURY SAVINGS BANK CORPORATION	274,293,052.42	945,122,321.12	29.02%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	34,649,773.67	120,654,187.18	28.72%
PHIL TRUST COMPANY	6,213,000,000.00	22,140,137,119.78	28.06%
EAST WEST BANKING CORP	8,692,840,178.42	34,556,329,608.49	25.16%
QUEZON COCONUT BANK INC (A THRIFT BANK)	13,648,456.11	59,748,536.65	22.84%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	154,986,737.73	679,763,457.26	22.80%
BDO UNIBANK INC	51,178,121,800.96	225,065,335,381.45	22.74%
FIRST CONSOLIDATED BANK INC (A PDB)	898,321,496.71	3,969,050,008.70	22.63%
LAND BANK OF THE  PHILIPPINES	18,306,896,678.48	83,092,202,003.50	22.03%
OPTIMUM DEVELOPMENT BANK INC	187,145,413.87	880,105,707.82	21.26%
CHINA BANKING CORP	12,773,356,214.72	60,890,825,809.74	20.98%
DEVELOPMENT BANK OF THE PHIL	9,751,931,038.73	47,829,847,714.16	20.39%
MALASIQUI PROGRESSIVE SLB, INC	10,374,279.25	60,163,130.22	17.24%
CITY SAVINGS BANK INC	1,622,760,647.24	9,849,238,582.72	16.48%
ASIA UNITED BANK CORPORATION	3,948,706,317.94	24,498,034,281.18	16.12%
SECURITY BANK CORP	9,018,000,000.00	56,389,511,785.51	15.99%
BPI DIRECT SAVINGS BANK INC	264,298,612.72	1,767,367,348.65	14.95%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	10,119,864,670.84	14.38%
RIZAL COMM'L BANKING CORP	7,502,016,567.86	62,075,375,611.04	12.09%
ROBINSONS BANK CORPORATION	1,526,179,000.00	13,235,033,140.18	11.53%
BANK OF THE PHIL ISLANDS	15,628,382,994.83	165,112,221,408.81	9.47%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	14,275,144,798.63	9.06%
METROPOLITAN BANK & TCO	17,065,527,468.74	192,938,454,807.54	8.85%
CTBC BANK (PHILIPPINES) CORP	598,186,229.33	7,312,126,427.42	8.18%
SUN SAVINGS BANK INC	12,136,012.75	156,978,445.63	7.73%
HIYAS BANKING CORPORATION	10,828,045.54	152,831,795.84	7.08%
PNB SAVINGS BANK	724,541,204.70	11,659,679,103.56	6.21%
LEMERY SAVINGS & LOAN BANK, INC.	3,885,391.25	79,634,508.49	4.88%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	14,086,000.00	353,499,879.17	3.98%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	172,113,060.00	4,967,420,166.75	3.46%
PHIL BANK OF COMMUNICATIONS	226,909,091.24	9,300,905,286.99	2.44%
BATAAN SAVINGS AND LOAN BANK	1,309,539.09	60,558,902.93	2.16%
ING BANK N.V.	50,000,000.00	2,568,995,906.81	1.95%
BANGKOK BANK PUBLIC CO LTD	48,559,050.66	3,398,086,552.00	1.43%
BANK OF AMERICA N.A.	5,514,000.00	2,123,761,205.20	0.26%
ANZ BANKING GROUP LTD	141,916.70	4,433,712,765.32	0.00%
BDO PRIVATE BANK, INC.	0.00	5,862,943,892.90	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	91,572,162.10	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	631,175,921.44	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,128,098,534.24	0.00%
CITYSTATE SAVINGS BANK INC	0.00	636,511,873.72	0.00%
DEUTSCHE BANK AG	0.00	2,154,215,007.36	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	318,128,721.32	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,172,443,222.95	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	667,107,466.57	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,406,989,114.78	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	88,280,987.00	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	618,665,112.34	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	3,029,989,699.43	0.00%
NORTHPOINT DEV'T BANK INC	0.00	404,094,479.06	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	73,469,448.40	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,746,715.00	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,016,591,938.93	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	51,604,859.32	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,406,290,644.55	0.00%
COMSAVINGS BANK	1,275,879,789.57	-64,278,097.71	-1984.94%
Grand Total	346,804,779,258.34	1,474,422,402,731.71	23.52%

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 23.52% 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 2.35% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 11.76%.

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 two other banks (severely affected banks highlighted in yellow).

1. Comsavings Bank (-198.49% reduction in Total Capital Cushion)
2. Village Bank Inc. (59.65% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (39.49% reduction in Total Capital Cushion)

It is important to note that Comsavings Bank already had a negative Total Capital Cushion of Php 64.28 million as of March 31, 2016.  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 (-396.99% reduction in Total Capital Cushion)
2. Village Bank Inc. (119.29% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (78.98% reduction in Total Capital Cushion)
4. Inter-Asia Development Bank (59.25% reduction in Total Capital Cushion)
5. Legazpi Savings Bank (38.16% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (37.57% reduction in Total Capital Cushion)

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

1. Comsavings Bank (-595.48% reduction in Total Capital Cushion)
2. Village Bank Inc. (178.94% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (118.47% reduction in Total Capital Cushion)
4. Inter-Asia Development Bank (88.88% reduction in Total Capital Cushion)
5. Legazpi Savings Bank (57.24% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (56.35% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank Inc (33.27% reduction in Total Capital Cushion)
8. Dumaguete City Development Bank (32.43% reduction in Total Capital Cushion)
9. Bataan Development Bank (31.59% reduction in Total Capital Cushion)
10. Metro Cebu Public Savings Bank (31.02% reduction in Total Capital Cushion)
11. China Bank Savings Inc (30.24% reduction in Total Capital Cushion)

A 40% 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 eleven more banks:

1. Comsavings Bank (-793.97% reduction in Total Capital Cushion)
2. Village Bank Inc. (238.59% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (157.95% reduction in Total Capital Cushion)
4. Inter-Asia Development Bank (118.51% reduction in Total Capital Cushion)
5. Legazpi Savings Bank (76.32% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (75.14% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank Inc (44.36% reduction in Total Capital Cushion)
8. Dumaguete City Development Bank (43.24% reduction in Total Capital Cushion)
9. Bataan Development Bank (42.12% reduction in Total Capital Cushion)
10. Metro Cebu Public Savings Bank (41.36% reduction in Total Capital Cushion)
11. China Bank Savings Inc (40.32% reduction in Total Capital Cushion)
12. UCPB Savings Bank (36.70% reduction in Total Capital Cushion)
13. Equicom Savings Bank Inc (36.27% reduction in Total Capital Cushion)
14. Luzon Development Bank (35.15% reduction in Total Capital Cushion)
15. World Partners Bank (31.59% reduction in Total Capital Cushion

A 50% 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 seventeen more banks:

1. Comsavings Bank (-929.47% reduction in Total Capital Cushion)
2. Village Bank Inc. (298.23% reduction in Total Capital Cushion)
3. Bank of China Limited - Manila Branch (197.44% reduction in Total Capital Cushion)
4. Inter-Asia Development Bank (148.13% reduction in Total Capital Cushion)
5. Legazpi Savings Bank (95.40% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (93.92% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank Inc (55.45% reduction in Total Capital Cushion)
8. Dumaguete City Development Bank (54.06% reduction in Total Capital Cushion)
9. Bataan Development Bank (52.65% reduction in Total Capital Cushion)
10. Metro Cebu Public Savings Bank (51.70% reduction in Total Capital Cushion)
11. China Bank Savings Inc (50.40% reduction in Total Capital Cushion)
12. UCPB Savings Bank (45.88% reduction in Total Capital Cushion)
13. Equicom Savings Bank Inc (45.21% reduction in Total Capital Cushion)
14. Luzon Development Bank (43.93% reduction in Total Capital Cushion)
15. World Partners Bank (39.48% reduction in Total Capital Cushion
16. Philippine Postal Savings Bank (36.34% reduction in Total Capital Cushion)
17. Bank of Commerce (33.29% reduction in Total Capital Cushion)
18. Philippine Resources Savings Banking Corporation (32.40% reduction in Total Capital Cushion)
19. Philippine Star Development Bank Inc (31.50% reduction in Total Capital Cushion)
20. TongYang Savings Bank Inc (30.49% reduction in Total Capital Cushion)
21. RCBC Savings Bank Inc (30.18% 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 March 31, 2016".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of March 31, 2016".  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)	587,562,440.70	98,507,042.82	596.47%	59.65%	119.29%	178.94%	238.59%	298.23%
BANK OF CHINA LIMITED-MANILA BRANCH	10,414,138,971.59	2,637,248,827.89	394.89%	39.49%	78.98%	118.47%	157.95%	197.44%
INTER-ASIA DEVELOPMENT BANK	177,856,697.55	60,032,404.14	296.27%	29.63%	59.25%	88.88%	118.51%	148.13%
LEGAZPI SAVINGS BANK INC	883,980,000.00	463,291,228.55	190.80%	19.08%	38.16%	57.24%	76.32%	95.40%
UNITED COCONUT PLANTERS BANK	21,487,165,524.83	11,439,141,113.48	187.84%	18.78%	37.57%	56.35%	75.14%	93.92%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,346,590,229.07	1,214,212,954.20	110.90%	11.09%	22.18%	33.27%	44.36%	55.45%
DUMAGUETE CITY DEV BANK INC	276,517,000.00	255,768,439.33	108.11%	10.81%	21.62%	32.43%	43.24%	54.06%
BATAAN DEVELOPMENT BANK	102,400,000.00	97,245,069.83	105.30%	10.53%	21.06%	31.59%	42.12%	52.65%
METRO CEBU PUBLIC SAVINGS BANK	60,820,791.86	58,826,562.87	103.39%	10.34%	20.68%	31.02%	41.36%	51.70%
CHINA BANK SAVINGS INC	7,580,530,004.70	7,519,966,463.26	100.81%	10.08%	20.16%	30.24%	40.32%	50.40%
UCPB SAVINGS BANK	2,667,511,000.00	2,907,230,864.97	91.75%	9.18%	18.35%	27.53%	36.70%	45.88%
EQUICOM SAVINGS BANK INC	762,130,243.96	842,893,942.69	90.42%	9.04%	18.08%	27.13%	36.17%	45.21%
LUZON DEVELOPMENT BANK	602,376,075.82	685,550,251.87	87.87%	8.79%	17.57%	26.36%	35.15%	43.93%
WORLD PARTNERS BANK (A THRIFT BANK)	132,873,581.16	168,274,099.33	78.96%	7.90%	15.79%	23.69%	31.59%	39.48%
PHIL POSTAL SAVINGS BANK INC	1,024,767,250.65	1,410,066,382.25	72.68%	7.27%	14.54%	21.80%	29.07%	36.34%
BANK OF COMMERCE	11,975,351,676.18	17,985,142,588.14	66.58%	6.66%	13.32%	19.98%	26.63%	33.29%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,682,857,632.26	2,596,821,578.83	64.80%	6.48%	12.96%	19.44%	25.92%	32.40%
PHIL STAR DEVELOPMENT BANK INC	58,227,417.25	92,434,555.46	62.99%	6.30%	12.60%	18.90%	25.20%	31.50%
TONGYANG SAVINGS BANK INC	675,511,598.53	1,107,771,339.51	60.98%	6.10%	12.20%	18.29%	24.39%	30.49%
RCBC SAVINGS BANK INC	6,940,955,925.00	11,499,615,156.28	60.36%	6.04%	12.07%	18.11%	24.14%	30.18%
FARMERS SAVINGS & LOAN BANK INC	81,914,422.12	137,146,990.50	59.73%	5.97%	11.95%	17.92%	23.89%	29.86%
PHIL SAVINGS BANK	12,787,389,798.55	22,552,935,938.63	56.70%	5.67%	11.34%	17.01%	22.68%	28.35%
TOWER DEVELOPMENT BANK	70,154,289.85	124,004,653.02	56.57%	5.66%	11.31%	16.97%	22.63%	28.29%
PHILIPPINE VETERANS BANK	3,707,509,011.00	6,763,526,833.49	54.82%	5.48%	10.96%	16.44%	21.93%	27.41%
MEGA INT'L COMM'L BANK CO LTD	1,037,763,474.00	2,050,493,141.75	50.61%	5.06%	10.12%	15.18%	20.24%	25.31%
PRODUCERS SAVINGS BANK CORPORATION	774,891,124.32	1,609,221,462.65	48.15%	4.82%	9.63%	14.45%	19.26%	24.08%
BANK OF MAKATI (A SAVINGS BANK) INC	3,502,646,259.55	7,598,917,740.36	46.09%	4.61%	9.22%	13.83%	18.44%	23.05%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,313,560,000.00	3,023,241,697.66	43.45%	4.34%	8.69%	13.03%	17.38%	21.72%
CITIBANK, N.A.	8,031,133,000.00	18,815,440,078.22	42.68%	4.27%	8.54%	12.81%	17.07%	21.34%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE THRIFT BANK)	54,900,327.72	131,520,320.47	41.74%	4.17%	8.35%	12.52%	16.70%	20.87%
MARITIME SAVINGS BANK CORPORATION	29,564,096.26	71,452,966.96	41.38%	4.14%	8.28%	12.41%	16.55%	20.69%
STANDARD CHARTERED BANK	3,382,338,008.27	8,469,910,127.39	39.93%	3.99%	7.99%	11.98%	15.97%	19.97%
BANK ONE SAVINGS AND TRUST CORP.	227,575,064.92	580,310,341.81	39.22%	3.92%	7.84%	11.76%	15.69%	19.61%
MAYBANK PHILIPPINES INC	5,120,644,854.36	13,103,838,803.52	39.08%	3.91%	7.82%	11.72%	15.63%	19.54%
LIFE SAVINGS BANK INC	25,525,783.64	66,684,654.29	38.28%	3.83%	7.66%	11.48%	15.31%	19.14%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	171,778,130.74	461,105,119.53	37.25%	3.73%	7.45%	11.18%	14.90%	18.63%
UNIVERSITY SAVINGS BANK INC	102,395,446.55	278,479,412.43	36.77%	3.68%	7.35%	11.03%	14.71%	18.38%
WEALTH DEVELOPMENT BANK CORPORATION	209,352,843.02	570,777,756.23	36.68%	3.67%	7.34%	11.00%	14.67%	18.34%
SAMPAGUITA SAVINGS BANK INC	24,172,441.22	68,425,553.24	35.33%	3.53%	7.07%	10.60%	14.13%	17.66%
UNION BANK OF THE PHILS	21,768,449,343.42	62,541,287,544.73	34.81%	3.48%	6.96%	10.44%	13.92%	17.40%
1ST VALLEY BANK INC A DEVELOPMENT BANK	491,040,548.30	1,518,304,266.04	32.34%	3.23%	6.47%	9.70%	12.94%	16.17%
CORDILLERA SAVINGS BANK INC	43,909,274.86	135,877,169.29	32.32%	3.23%	6.46%	9.69%	12.93%	16.16%
PAMPANGA DEVELOPMENT BANK	47,394,335.63	152,566,308.90	31.06%	3.11%	6.21%	9.32%	12.43%	15.53%
BPI FAMILY SAVINGS BANK INC	9,961,139,239.75	32,418,741,544.47	30.73%	3.07%	6.15%	9.22%	12.29%	15.36%
PHIL NATIONAL BANK	32,974,338,063.13	111,433,512,301.44	29.59%	2.96%	5.92%	8.88%	11.84%	14.80%
KEB HANA BANK - MANILA BRANCH	465,554,562.05	1,591,275,068.01	29.26%	2.93%	5.85%	8.78%	11.70%	14.63%
CENTURY SAVINGS BANK CORPORATION	274,293,052.42	945,122,321.12	29.02%	2.90%	5.80%	8.71%	11.61%	14.51%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	34,649,773.67	120,654,187.18	28.72%	2.87%	5.74%	8.62%	11.49%	14.36%
PHIL TRUST COMPANY	6,213,000,000.00	22,140,137,119.78	28.06%	2.81%	5.61%	8.42%	11.22%	14.03%
EAST WEST BANKING CORP	8,692,840,178.42	34,556,329,608.49	25.16%	2.52%	5.03%	7.55%	10.06%	12.58%
QUEZON COCONUT BANK INC (A THRIFT BANK)	13,648,456.11	59,748,536.65	22.84%	2.28%	4.57%	6.85%	9.14%	11.42%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	154,986,737.73	679,763,457.26	22.80%	2.28%	4.56%	6.84%	9.12%	11.40%
BDO UNIBANK INC	51,178,121,800.96	225,065,335,381.45	22.74%	2.27%	4.55%	6.82%	9.10%	11.37%
FIRST CONSOLIDATED BANK INC (A PDB)	898,321,496.71	3,969,050,008.70	22.63%	2.26%	4.53%	6.79%	9.05%	11.32%
LAND BANK OF THE  PHILIPPINES	18,306,896,678.48	83,092,202,003.50	22.03%	2.20%	4.41%	6.61%	8.81%	11.02%
OPTIMUM DEVELOPMENT BANK INC	187,145,413.87	880,105,707.82	21.26%	2.13%	4.25%	6.38%	8.51%	10.63%
CHINA BANKING CORP	12,773,356,214.72	60,890,825,809.74	20.98%	2.10%	4.20%	6.29%	8.39%	10.49%
DEVELOPMENT BANK OF THE PHIL	9,751,931,038.73	47,829,847,714.16	20.39%	2.04%	4.08%	6.12%	8.16%	10.19%
MALASIQUI PROGRESSIVE SLB, INC	10,374,279.25	60,163,130.22	17.24%	1.72%	3.45%	5.17%	6.90%	8.62%
CITY SAVINGS BANK INC	1,622,760,647.24	9,849,238,582.72	16.48%	1.65%	3.30%	4.94%	6.59%	8.24%
ASIA UNITED BANK CORPORATION	3,948,706,317.94	24,498,034,281.18	16.12%	1.61%	3.22%	4.84%	6.45%	8.06%
SECURITY BANK CORP	9,018,000,000.00	56,389,511,785.51	15.99%	1.60%	3.20%	4.80%	6.40%	8.00%
BPI DIRECT SAVINGS BANK INC	264,298,612.72	1,767,367,348.65	14.95%	1.50%	2.99%	4.49%	5.98%	7.48%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,455,126,000.00	10,119,864,670.84	14.38%	1.44%	2.88%	4.31%	5.75%	7.19%
RIZAL COMM'L BANKING CORP	7,502,016,567.86	62,075,375,611.04	12.09%	1.21%	2.42%	3.63%	4.83%	6.04%
ROBINSONS BANK CORPORATION	1,526,179,000.00	13,235,033,140.18	11.53%	1.15%	2.31%	3.46%	4.61%	5.77%
BANK OF THE PHIL ISLANDS	15,628,382,994.83	165,112,221,408.81	9.47%	0.95%	1.89%	2.84%	3.79%	4.73%
HONGKONG & SHANGHAI BANKING CORP	1,292,969,392.77	14,275,144,798.63	9.06%	0.91%	1.81%	2.72%	3.62%	4.53%
METROPOLITAN BANK & TCO	17,065,527,468.74	192,938,454,807.54	8.85%	0.88%	1.77%	2.65%	3.54%	4.42%
CTBC BANK (PHILIPPINES) CORP	598,186,229.33	7,312,126,427.42	8.18%	0.82%	1.64%	2.45%	3.27%	4.09%
SUN SAVINGS BANK INC	12,136,012.75	156,978,445.63	7.73%	0.77%	1.55%	2.32%	3.09%	3.87%
HIYAS BANKING CORPORATION	10,828,045.54	152,831,795.84	7.08%	0.71%	1.42%	2.13%	2.83%	3.54%
PNB SAVINGS BANK	724,541,204.70	11,659,679,103.56	6.21%	0.62%	1.24%	1.86%	2.49%	3.11%
LEMERY SAVINGS & LOAN BANK, INC.	3,885,391.25	79,634,508.49	4.88%	0.49%	0.98%	1.46%	1.95%	2.44%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	14,086,000.00	353,499,879.17	3.98%	0.40%	0.80%	1.20%	1.59%	1.99%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	172,113,060.00	4,967,420,166.75	3.46%	0.35%	0.69%	1.04%	1.39%	1.73%
PHIL BANK OF COMMUNICATIONS	226,909,091.24	9,300,905,286.99	2.44%	0.24%	0.49%	0.73%	0.98%	1.22%
BATAAN SAVINGS AND LOAN BANK	1,309,539.09	60,558,902.93	2.16%	0.22%	0.43%	0.65%	0.86%	1.08%
ING BANK N.V.	50,000,000.00	2,568,995,906.81	1.95%	0.19%	0.39%	0.58%	0.78%	0.97%
BANGKOK BANK PUBLIC CO LTD	48,559,050.66	3,398,086,552.00	1.43%	0.14%	0.29%	0.43%	0.57%	0.71%
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%
ANZ BANKING GROUP LTD	141,916.70	4,433,712,765.32	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BDO PRIVATE BANK, INC.	0.00	5,862,943,892.90	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	91,572,162.10	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	631,175,921.44	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,128,098,534.24	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
CITYSTATE SAVINGS BANK INC	0.00	636,511,873.72	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
DEUTSCHE BANK AG	0.00	2,154,215,007.36	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	318,128,721.32	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,172,443,222.95	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	667,107,466.57	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,406,989,114.78	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MBANK PHILIPPINES (A THRIFT BANK) INC	0.00	88,280,987.00	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	618,665,112.34	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	3,029,989,699.43	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
NORTHPOINT DEV'T BANK INC	0.00	404,094,479.06	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
PACIFIC ACE SAVINGS BANK INC	0.00	73,469,448.40	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,746,715.00	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,016,591,938.93	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	51,604,859.32	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,406,290,644.55	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
COMSAVINGS BANK	1,275,879,789.57	-64,278,097.71	-1984.94%	-198.49%	-396.99%	-595.48%	-793.97%	-992.47%
Grand Total	346,804,779,258.34	1,474,422,402,731.71	23.52%	2.35%	4.70%	7.06%	9.41%	11.76%

Source: www.bsp.gov.ph