A Simple Stress Test of Philippine Banks as of June 30, 2017

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 141.16 billion or 8.79% of the PhP 1,605.12 billion in Stockholders Equity (SE) as of June 30, 2017.  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 June 30, 2017).

The stockholder's equity of eight banks would be severely affected.  These banks are:

1. Philippine Postal Savings Bank Inc (137.50% decline in SE)
2. World Partners Bank (127.26% decline in SE)
3. Enterprise Bank Inc (50.94% decline in SE)
4. Luzon Development Bank (49.31% decline in SE)
5.  Equicom Savings Bank (49.17% decline in SE)
6. Legazpi Savings Bank Inc (42.33% decline in SE)
7. Maritime Savings Bank Corporation (27.30% decline in SE)
8. Philippine Veterans Bank (25.78% decline in SE)

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 June 30, 2017, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 355.63 billion or almost 3 times the size of the Philippine Banking System's NPLs of PhP 141.16 billion for the same period.  Consequently, any write-offs of Classified Loans will have almost three times the impact of an NPL write-off.

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 355.63 billion or 20.94% of the Php 1.70 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2017.

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 20.94% 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 2.09% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 10.47%.

Individual Banks

A 10% write-off of Classified Loans would severely impact (by 30% or more) the Total Capital Cushion of two banks (severely affected banks highlighted in yellow).

1. Bank of China Limited - Manila Branch (50.48% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (38.35% reduction in Total Capital Cushion)

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

1. Bank of China Limited - Manila Branch (100.96% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (77.70% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (45.21% reduction in Total Capital Cushion)
4. United Coconut Planters Bank (38.96% reduction in Total Capital Cushion)
5. Village Bank Inc (34.37% reduction in Total Capital Cushion)

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

1. Bank of China Limited - Manila Branch (151.44% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (116.55% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (67.81% reduction in Total Capital Cushion)
4. United Coconut Planters Bank (58.44% reduction in Total Capital Cushion)
5. Village Bank Inc (51.55% reduction in Total Capital Cushion)
6. Philippine Resources Savings Banking Corporation (42.59% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank (41.77% reduction in Total Capital Cushion)
8. Yuanta Savings Bank Philippines Inc (36.98% reduction in Total Capital Cushion)
9. World Partners Bank (34.32% reduction in Total Capital Cushion)
10. Luzon Development Bank (31.21% reduction in Total Capital Cushion)
11. Bataan Development Bank (30.77% reduction in Total Capital Cushion)

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

1. Bank of China Limited - Manila Branch (201.92% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (155.41% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (90.42% reduction in Total Capital Cushion)
4. United Coconut Planters Bank (77.91% reduction in Total Capital Cushion)
5. Village Bank Inc (68.73% reduction in Total Capital Cushion)
6. Philippine Resources Savings Banking Corporation (56.79% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank (55.69% reduction in Total Capital Cushion)
8. Yuanta Savings Bank Philippines Inc (49.30% reduction in Total Capital Cushion)
9. World Partners Bank (45.76% reduction in Total Capital Cushion)
10. Luzon Development Bank (41.61% reduction in Total Capital Cushion)
11. Bataan Development Bank (41.03% reduction in Total Capital Cushion)
12. Legazpi Savings Bank Inc ( 33.77% reduction in Total Capital Cushion)
13. Maritime Savings Bank Corporation (30.20% reduction in Total Capital Cushion)
14. Equicom Savings Bank Inc (30.03% reduction in Total Capital Cushion)

A 50% 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 fourteen more banks:

1. Bank of China Limited - Manila Branch (252.40% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (194.26% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (113.02% reduction in Total Capital Cushion)
4. United Coconut Planters Bank (97.39% reduction in Total Capital Cushion)
5. Village Bank Inc (85.91% reduction in Total Capital Cushion)
6. Philippine Resources Savings Banking Corporation (70.99% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mortgage Bank (69.62% reduction in Total Capital Cushion)
8. Yuanta Savings Bank Philippines Inc (61.63% reduction in Total Capital Cushion)
9. World Partners Bank (57.20% reduction in Total Capital Cushion)
10. Luzon Development Bank (52.02% reduction in Total Capital Cushion)
11. Bataan Development Bank (51.29% reduction in Total Capital Cushion)
12. Legazpi Savings Bank Inc (42.21% reduction in Total Capital Cushion)
13. Maritime Savings Bank Corporation (37.75% reduction in Total Capital Cushion)
14. Equicom Savings Bank Inc (37.54% reduction in Total Capital Cushion)
15. China Bank Savings Inc (37.45% reduction in Total Capital Cushion)
16. UCPB Savings Bank (31.64% reduction in Total Capital Cushion)
17. Philippine Savings Bank (30.46% 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 June 30, 2017".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of June 30, 2017".  As such, any reduction in their capital cushion could knock down an already weak bank.

Source: www.bsp.gov.ph

Philippine Postal Savings Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2017

Editor's Note: Data is culled from  the Published Statements of Condition of individual Philippine Banks found in www.bsp.gov.ph.  

This blog post updates previous blog posts such as Luzon Development Bank Ranks Third in Non-Performing Loans as % of Stockholder's Equity as of March 31, 2017 .


NPLs.  Short for Non-Performing Loans.  The NPL Ratio or the ratio of a bank's Non-Performing Loans (NPL) to Total Loan Portfolio (TLP) is a frequently cited figure in the general media to indicate a bank's financial health or the health of the banking system as a whole.  See: "Banks reduce exposure to bad debts, have more cash to loan out—BSP".

In the Philippine Banking Industry, Gross Non-Performing Loans stood at Php 141.16 billion as of June 30, 2017 - approximately 1.79% of the Philippine Banking Industry's Total Loan Portfolio of Php 7.89 trillion.


 

Philippine Banking System
NPL as % of TLP
June 30, 2017
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
PHIL STAR DEVELOPMENT BANK INC	13,618,385.28	24,003,889.89	56.73%
PHIL POSTAL SAVINGS BANK INC	2,508,468,000.93	5,744,862,007.68	43.66%
WORLD PARTNERS BANK (A THRIFT BANK)	133,433,965.51	369,686,690.87	36.09%
NORTHPOINT DEV'T BANK INC	149,218,964.78	449,150,708.70	33.22%
LEGAZPI SAVINGS BANK INC	443,499,654.38	1,415,760,781.53	31.33%
MALASIQUI PROGRESSIVE SLB, INC	10,424,229.25	36,431,051.83	28.61%
YUANTA SAVINGS BANK PHILIPPINES INC	111,437,808.32	516,512,250.10	21.58%
LUZON DEVELOPMENT BANK	620,534,810.05	2,991,488,024.55	20.74%
LIFE SAVINGS BANK INC	11,872,651.42	58,531,181.65	20.28%
PACIFIC ACE SAVINGS BANK INC	3,119,385.69	15,772,750.69	19.78%
MARITIME SAVINGS BANK CORPORATION	20,199,537.87	107,466,906.20	18.80%
BATAAN SAVINGS AND LOAN BANK	1,743,509.11	10,128,350.43	17.21%
CENTURY SAVINGS BANK CORPORATION	116,834,579.97	692,822,210.86	16.86%
ENTERPRISE BANK INC (A THRIFT BANK)	265,460,226.74	1,604,064,367.90	16.55%
HIYAS BANKING CORPORATION	33,790,616.12	208,215,849.28	16.23%
PAMPANGA DEVELOPMENT BANK	57,099,117.06	366,944,718.65	15.56%
BATAAN DEVELOPMENT BANK	24,610,014.94	174,057,468.61	14.14%
MALAYAN BANK SAVINGS AND MORT BANK INC	546,986,749.49	4,201,270,875.90	13.02%
FARMERS SAVINGS & LOAN BANK INC	23,955,544.69	188,594,771.12	12.70%
BANK OF MAKATI (A SAVINGS BANK) INC	2,426,621,205.73	20,957,004,378.31	11.58%
EQUICOM SAVINGS BANK INC	687,413,287.67	5,988,643,157.14	11.48%
PHILIPPINE VETERANS BANK	1,885,539,254.64	16,758,858,562.76	11.25%
BUSINESS AND CONSUMERS BANK (A DB)	16,128,146.05	154,460,142.22	10.44%
CITYSTATE SAVINGS BANK INC	193,616,529.68	1,887,050,253.00	10.26%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	181,830,591.66	1,797,510,042.45	10.12%
UCPB SAVINGS BANK	1,395,757,892.22	15,055,328,522.20	9.27%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	101,996,846.47	9.16%
UNIVERSITY SAVINGS BANK INC	45,539,112.82	526,361,065.61	8.65%
1ST VALLEY BANK INC A DEVELOPMENT BANK	477,431,496.72	5,527,314,375.37	8.64%
CORDILLERA SAVINGS BANK INC	14,699,719.72	178,797,531.30	8.22%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	761,527,575.16	9,299,769,222.36	8.19%
STANDARD CHARTERED BANK	2,124,358,234.46	26,517,602,158.24	8.01%
LEMERY SAVINGS & LOAN BANK, INC.	7,191,014.95	96,905,299.22	7.42%
THE PALAWAN BANK (PALAWAN DB) INC	18,005,142.63	258,528,705.91	6.96%
DUMAGUETE CITY DEV BANK INC	36,781,599.06	539,055,946.49	6.82%
WEALTH DEVELOPMENT BANK CORPORATION	403,775,183.43	5,984,334,601.14	6.75%
BPI DIRECT BANKO INC A SAVINGS BANK	418,418,339.45	6,424,193,135.91	6.51%
CHINA BANK SAVINGS INC	4,191,683,659.84	65,112,160,447.20	6.44%
RCBC SAVINGS BANK INC	4,652,860,907.38	76,554,903,760.24	6.08%
VILLAGE BANK INC (A THRIFT BANK)	27,161,103.56	456,263,485.47	5.95%
FIRST CONSOLIDATED BANK INC (A PDB)	627,943,191.24	11,487,688,139.91	5.47%
PRODUCERS SAVINGS BANK CORPORATION	422,122,515.34	8,223,544,581.17	5.13%
PHIL BANK OF COMMUNICATIONS	2,211,964,696.92	43,666,737,720.78	5.07%
EAST WEST BANKING CORP	8,861,543,566.15	195,935,086,514.69	4.52%
BANK ONE SAVINGS AND TRUST CORP.	49,945,137.26	1,177,424,186.44	4.24%
UNION BANK OF THE PHILS	8,259,433,549.04	208,888,293,486.98	3.95%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	976,793,580.15	25,308,236,991.16	3.86%
SUN SAVINGS BANK INC	30,479,368.03	790,707,284.98	3.85%
BPI FAMILY SAVINGS BANK INC	7,359,361,449.90	206,978,789,915.21	3.56%
PHIL SAVINGS BANK	4,663,782,199.22	137,284,935,320.22	3.40%
UNITED COCONUT PLANTERS BANK	4,917,354,031.38	151,898,678,830.37	3.24%
PNB SAVINGS BANK	1,239,695,234.28	38,448,538,161.78	3.22%
CITY SAVINGS BANK INC	1,971,533,165.39	64,808,566,114.24	3.04%
ASIA UNITED BANK CORPORATION	3,267,908,554.18	110,259,117,838.05	2.96%
BANK OF COMMERCE	1,873,088,010.81	64,572,419,929.18	2.90%
PHIL TRUST COMPANY	1,133,451,145.23	40,718,796,617.74	2.78%
OPTIMUM DEVELOPMENT BANK INC	46,514,017.84	1,824,062,451.72	2.55%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,506,845,532.18	59,832,170,952.55	2.52%
DEVELOPMENT BANK OF THE PHIL	5,997,967,764.28	255,357,901,271.69	2.35%
MAYBANK PHILIPPINES INCORPORATED	1,482,324,528.48	63,782,916,232.95	2.32%
PHIL NATIONAL BANK	8,741,296,203.55	406,007,564,166.96	2.15%
CARD SME BANK INC A THRIFT BANK	61,198,081.08	2,964,812,948.68	2.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	28,404,608.06	1,467,332,065.22	1.94%
MERCHANTS SAVINGS & LOAN ASSN INC	19,239,366.24	1,063,808,033.42	1.81%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	27,111,347.52	1,531,093,176.15	1.77%
INTER-ASIA DEVELOPMENT BANK	3,360,500.59	196,740,751.31	1.71%
HSBC SAVINGS BANK (PHILS) INC	55,779,275.15	3,326,551,492.83	1.68%
ROBINSONS BANK CORPORATION	728,263,391.43	45,002,536,685.69	1.62%
LAND BANK OF THE PHILIPPINES	9,262,350,625.37	597,070,440,527.28	1.55%
CTBC BANK (PHILIPPINES) CORP	445,600,591.58	30,113,559,202.69	1.48%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,213.72	13,511,454,457.84	1.40%
HONGKONG & SHANGHAI BANKING CORP	730,992,187.04	53,411,187,868.54	1.37%
ANZ BANKING GROUP LTD	404,087,064.26	30,258,183,641.96	1.34%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,222,336.47	441,949,465.84	1.18%
BDO UNIBANK INC	17,219,995,831.01	1,602,911,962,754.99	1.07%
CHINA BANKING CORP	3,584,955,716.65	346,056,738,479.43	1.04%
RIZAL COMM'L BANKING CORP	2,421,878,939.03	246,322,414,902.50	0.98%
BANK OF THE PHIL ISLANDS	8,232,869,548.41	858,088,783,388.17	0.96%
QUEZON COCONUT BANK INC (A THRIFT BANK)	487,619.50	62,550,620.15	0.78%
SECURITY BANK CORP	2,060,467,178.32	338,404,646,885.15	0.61%
BANGKOK BANK PUBLIC CO LTD	36,877,890.77	7,625,207,728.72	0.48%
METROPOLITAN BANK & TCO	4,034,181,576.50	937,179,787,242.82	0.43%
CITIBANK, N.A.	865,034,706.52	202,718,403,105.17	0.43%
KEB HANA BANK - MANILA BRANCH	28,097,202.88	6,711,417,348.85	0.42%
ING BANK N.V.	102.94	11,504,576,871.46	0.00%
BANK OF AMERICA N.A.	0.00	4,401,490,978.48	0.00%
BDO PRIVATE BANK, INC.	0.00	16,275,984,461.02	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	1,366,393,509.90	0.00%
DEUTSCHE BANK AG	0.00	26,625,764,812.98	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	13,000,000.00	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	1,399,236,007.52	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	648,537,760.12	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	24,535,367,101.15	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	9,932,870,219.05	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	43,606,223,152.87	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	1,068,439,760.98	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	14,084,589,215.26	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	33,808,483,135.44	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	919,249,265.00	0.00%
Grand Total	141,158,760,279.43	7,893,236,752,228.85	1.79%

There are six Philippine Banks with a Gross NPL Ratio greater than 25.00% of Total Loan Portfolio (TLP).  These are as follows:

1. Philippine Star Development Bank, Inc. (56.73% of TLP)
2. Philippine Postal Savings Bank Inc. (43.66% of TLP)
3. World Partners Bank (36.09% of TLP)
4. Northpoint Development Bank, Inc. (33.22% of TLP)
5. Legazpi Savings Bank Inc. (31.33% of TLP)
6. Malasiqui Progressive SLB, Inc. (28.61% of TLP)

The ratio of a bank's NPLs to its total Stockholders Equity (SE) maybe more important than the ratio of its NPLs to Total Loan Portfolio.  The idea behind this is that NPLs are fragile things.  As a loan deteriorates, its recoverable value will deteriorate as well.  A foreclosure will most likely result in a loan recovery that is a mere fraction of the loan's original value.  Therefore, banks with high NPL Ratios relative to their Stockholders Equity may face a significant loss of capital if a substantial amount of their NPLs are written off as a loss.

On an overall basis, the Gross NPLs of Philippine Banks amounted to 8.79% of Stockholders Equity as of June 30, 2017.

 

 

Philippine Banking System
NPL as % of SE
June 30, 2017
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
PHIL POSTAL SAVINGS BANK INC	2,508,468,000.93	912,190,817.96	274.99%
WORLD PARTNERS BANK (A THRIFT BANK)	133,433,965.51	52,424,149.24	254.53%
ENTERPRISE BANK INC (A THRIFT BANK)	265,460,226.74	260,554,304.83	101.88%
LUZON DEVELOPMENT BANK	620,534,810.05	629,229,248.68	98.62%
EQUICOM SAVINGS BANK INC	687,413,287.67	698,949,675.95	98.35%
LEGAZPI SAVINGS BANK INC	443,499,654.38	523,899,957.52	84.65%
MARITIME SAVINGS BANK CORPORATION	20,199,537.87	36,992,452.11	54.60%
PHILIPPINE VETERANS BANK	1,885,539,254.64	3,656,411,884.82	51.57%
UCPB SAVINGS BANK	1,395,757,892.22	2,874,860,911.74	48.55%
MALAYAN BANK SAVINGS AND MORT BANK INC	546,986,749.49	1,150,344,697.77	47.55%
THE PALAWAN BANK (PALAWAN DB) INC	18,005,142.63	38,796,966.79	46.41%
CHINA BANK SAVINGS INC	4,191,683,659.84	9,092,992,464.87	46.10%
NORTHPOINT DEV'T BANK INC	149,218,964.78	353,822,818.80	42.17%
RCBC SAVINGS BANK INC	4,652,860,907.38	11,066,842,802.53	42.04%
PAMPANGA DEVELOPMENT BANK	57,099,117.06	148,804,323.34	38.37%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	976,793,580.15	2,575,933,166.93	37.92%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	181,830,591.66	508,641,109.11	35.75%
BANK OF MAKATI (A SAVINGS BANK) INC	2,426,621,205.73	6,841,303,912.90	35.47%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	761,527,575.16	2,241,413,365.37	33.98%
VILLAGE BANK INC (A THRIFT BANK)	27,161,103.56	82,448,387.65	32.94%
STANDARD CHARTERED BANK	2,124,358,234.46	6,626,619,569.47	32.06%
BATAAN DEVELOPMENT BANK	24,610,014.94	79,339,385.37	31.02%
1ST VALLEY BANK INC A DEVELOPMENT BANK	477,431,496.72	1,559,682,991.33	30.61%
CITYSTATE SAVINGS BANK INC	193,616,529.68	679,648,386.14	28.49%
BPI FAMILY SAVINGS BANK INC	7,359,361,449.90	26,009,110,830.94	28.30%
UNITED COCONUT PLANTERS BANK	4,917,354,031.38	17,763,321,160.41	27.68%
WEALTH DEVELOPMENT BANK CORPORATION	403,775,183.43	1,460,127,640.46	27.65%
PRODUCERS SAVINGS BANK CORPORATION	422,122,515.34	1,673,043,542.61	25.23%
EAST WEST BANKING CORP	8,861,543,566.15	36,123,097,471.69	24.53%
PHIL SAVINGS BANK	4,663,782,199.22	19,934,184,692.96	23.40%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	42,310,913.26	22.08%
PHIL BANK OF COMMUNICATIONS	2,211,964,696.92	10,478,096,577.25	21.11%
BPI DIRECT BANKO INC A SAVINGS BANK	418,418,339.45	2,009,459,844.76	20.82%
HIYAS BANKING CORPORATION	33,790,616.12	168,276,907.07	20.08%
MALASIQUI PROGRESSIVE SLB, INC	10,424,229.25	52,405,777.66	19.89%
BUSINESS AND CONSUMERS BANK (A DB)	16,128,146.05	88,581,716.32	18.21%
LIFE SAVINGS BANK INC	11,872,651.42	66,621,234.31	17.82%
FARMERS SAVINGS & LOAN BANK INC	23,955,544.69	139,534,469.05	17.17%
CITY SAVINGS BANK INC	1,971,533,165.39	11,948,734,053.08	16.50%
SUN SAVINGS BANK INC	30,479,368.03	188,151,300.87	16.20%
FIRST CONSOLIDATED BANK INC (A PDB)	627,943,191.24	4,069,474,830.97	15.43%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,506,845,532.18	9,994,689,897.65	15.08%
PHIL STAR DEVELOPMENT BANK INC	13,618,385.28	95,515,586.09	14.26%
DEVELOPMENT BANK OF THE PHIL	5,997,967,764.28	45,033,443,004.31	13.32%
DUMAGUETE CITY DEV BANK INC	36,781,599.06	278,933,034.72	13.19%
ASIA UNITED BANK CORPORATION	3,267,908,554.18	25,064,533,136.71	13.04%
UNION BANK OF THE PHILS	8,259,433,549.04	64,204,605,698.79	12.86%
BANK OF COMMERCE	1,873,088,010.81	15,424,614,405.04	12.14%
MAYBANK PHILIPPINES INCORPORATED	1,482,324,528.48	12,511,305,008.97	11.85%
CENTURY SAVINGS BANK CORPORATION	116,834,579.97	990,519,115.21	11.80%
YUANTA SAVINGS BANK PHILIPPINES INC	111,437,808.32	981,621,561.60	11.35%
UNIVERSITY SAVINGS BANK INC	45,539,112.82	413,906,362.05	11.00%
PNB SAVINGS BANK	1,239,695,234.28	11,581,800,819.39	10.70%
CORDILLERA SAVINGS BANK INC	14,699,719.72	141,590,159.34	10.38%
ANZ BANKING GROUP LTD	404,087,064.26	4,135,436,214.83	9.77%
LAND BANK OF THE PHILIPPINES	9,262,350,625.37	97,365,420,357.98	9.51%
LEMERY SAVINGS & LOAN BANK, INC.	7,191,014.95	80,394,408.65	8.94%
BANK ONE SAVINGS AND TRUST CORP.	49,945,137.26	578,405,928.29	8.63%
PHIL NATIONAL BANK	8,741,296,203.55	104,375,401,959.76	8.37%
CARD SME BANK INC A THRIFT BANK	61,198,081.08	803,246,783.04	7.62%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,213.72	2,548,322,917.53	7.42%
CTBC BANK (PHILIPPINES) CORP	445,600,591.58	7,015,996,583.56	6.35%
ROBINSONS BANK CORPORATION	728,263,391.43	12,194,350,959.91	5.97%
BDO UNIBANK INC	17,219,995,831.01	288,498,827,105.70	5.97%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	27,111,347.52	461,655,272.10	5.87%
CITIBANK, N.A.	865,034,706.52	15,937,194,194.65	5.43%
OPTIMUM DEVELOPMENT BANK INC	46,514,017.84	860,541,306.24	5.41%
HONGKONG & SHANGHAI BANKING CORP	730,992,187.04	13,714,790,245.53	5.33%
INTER-ASIA DEVELOPMENT BANK	3,360,500.59	64,662,908.40	5.20%
BANK OF THE PHIL ISLANDS	8,232,869,548.41	169,327,181,092.42	4.86%
CHINA BANKING CORP	3,584,955,716.65	74,140,331,250.87	4.84%
PACIFIC ACE SAVINGS BANK INC	3,119,385.69	65,069,098.63	4.79%
PHIL TRUST COMPANY	1,133,451,145.23	24,847,284,852.16	4.56%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	28,404,608.06	653,165,592.73	4.35%
RIZAL COMM'L BANKING CORP	2,421,878,939.03	63,346,291,997.40	3.82%
MERCHANTS SAVINGS & LOAN ASSN INC	19,239,366.24	618,763,558.14	3.11%
BATAAN SAVINGS AND LOAN BANK	1,743,509.11	57,872,042.86	3.01%
HSBC SAVINGS BANK (PHILS) INC	55,779,275.15	1,860,699,367.91	3.00%
METROPOLITAN BANK & TCO	4,034,181,576.50	194,923,419,998.34	2.07%
SECURITY BANK CORP	2,060,467,178.32	99,567,769,614.34	2.07%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,222,336.47	273,304,452.83	1.91%
KEB HANA BANK - MANILA BRANCH	28,097,202.88	1,597,687,658.29	1.76%
BANGKOK BANK PUBLIC CO LTD	36,877,890.77	3,129,192,807.98	1.18%
QUEZON COCONUT BANK INC (A THRIFT BANK)	487,619.50	58,516,892.71	0.83%
ING BANK N.V.	102.94	2,500,805,709.15	0.00%
BANK OF AMERICA N.A.	0.00	2,091,322,952.20	0.00%
BDO PRIVATE BANK, INC.	0.00	5,603,416,533.66	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,137,859,788.27	0.00%
DEUTSCHE BANK AG	0.00	2,364,070,153.81	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,025,837,707.46	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,247,987,353.43	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	670,867,337.69	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,295,542,287.45	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	1,824,886,709.42	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,510,141,315.34	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,202,945,627.45	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	12,958,404,539.93	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,594,769,708.68	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,362,004,659.17	0.00%
Grand Total	141,158,760,279.43	1,605,115,818,311.65	8.79%

 

 

 

 

 

 

Of the 99 banks in this list, twenty-three banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of June 30, 2017.  These banks are as follows:

1. Philippine Postal Savings Bank (274.99% of SE)
2. World Partners Bank (254.53% of SE)
3. Enterprise Bank (101.88% of SE)
4. Luzon Development Bank (98.62% of SE)
5. Equicom Savings Bank (98.35% of SE)
6. Legazpi Savings Bank (84.65% of SE)
7. Maritime Savings Bank Corporation (54.60% of SE)
8. Philippine Veterans Bank (51.57% of SE)
9. UCPB Savings Bank (48.55% of SE)
10. Malayan Bank Savings and Mortgage Bank (47.55% of SE)
11. The Palawan Bank (46.41% of SE)
12. China Bank Savings (46.10% of SE)
13. Northpoint Development Bank (42.17% of SE)
14. RCBC Savings Bank (42.04% of SE)
15. Pampanga Development Bank (38.37% of SE)
16. Sterling Bank of Asia (37.92% of SE)
17. Penbank Inc (35.75% of SE)
18. Bank of Makati (35.47% of SE)
19. Philippine Resources Savings Banking Corporation (33.98% of SE)
20. Village Bank Inc (32.94% of SE)
21. Standard Chartered Bank (32.06% of SE)
22. Bataan Development Bank (31.02% of SE)
23. 1st Valley Bank Inc (30.61% of SE)

Source: www.bsp.gov.ph

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - June 30, 2017

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of June 30, 2017", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 2.05% as of March 31, 2017, is below the historic average of 4.14% for the last thirty-four years.
 
Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses. Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 36 banks (highlighted in yellow, failed banks in red) fall into this deficiency.

Philippine Banking System
NPL Coverage Ratio
June 30, 2017
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
PHIL POSTAL SAVINGS BANK INC	357,874,671.93	2,508,468,000.93	14.27%
CENTURY SAVINGS BANK CORPORATION	19,702,529.95	116,834,579.97	16.86%
LUZON DEVELOPMENT BANK	160,155,920.54	620,534,810.05	25.81%
CITYSTATE SAVINGS BANK INC	59,994,294.63	193,616,529.68	30.99%
MALAYAN BANK SAVINGS AND MORT BANK INC	175,509,963.35	546,986,749.49	32.09%
WEALTH DEVELOPMENT BANK CORPORATION	135,603,476.89	403,775,183.43	33.58%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	20,199,537.87	34.40%
LIFE SAVINGS BANK INC	4,875,321.67	11,872,651.42	41.06%
PRODUCERS SAVINGS BANK CORPORATION	186,386,253.06	422,122,515.34	44.15%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	343,270,818.50	761,527,575.16	45.08%
ENTERPRISE BANK INC (A THRIFT BANK)	121,353,813.66	265,460,226.74	45.71%
UCPB SAVINGS BANK	658,576,971.59	1,395,757,892.22	47.18%
OPTIMUM DEVELOPMENT BANK INC	23,226,813.08	46,514,017.84	49.94%
PNB SAVINGS BANK	619,148,631.20	1,239,695,234.28	49.94%
RCBC SAVINGS BANK INC	2,336,453,414.48	4,652,860,907.38	50.22%
CHINA BANK SAVINGS INC	2,104,998,233.03	4,191,683,659.84	50.22%
1ST VALLEY BANK INC A DEVELOPMENT BANK	242,450,059.72	477,431,496.72	50.78%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	93,321,723.07	181,830,591.66	51.32%
DUMAGUETE CITY DEV BANK INC	19,299,237.59	36,781,599.06	52.47%
PAMPANGA DEVELOPMENT BANK	30,044,816.72	57,099,117.06	52.62%
SUN SAVINGS BANK INC	16,623,106.68	30,479,368.03	54.54%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	2,895,858.92	5,222,336.47	55.45%
BUSINESS AND CONSUMERS BANK (A DB)	9,000,644.49	16,128,146.05	55.81%
WORLD PARTNERS BANK (A THRIFT BANK)	74,823,694.59	133,433,965.51	56.08%
EQUICOM SAVINGS BANK INC	386,892,724.13	687,413,287.67	56.28%
LEMERY SAVINGS & LOAN BANK, INC.	4,199,311.94	7,191,014.95	58.40%
CITY SAVINGS BANK INC	1,284,737,999.34	1,971,533,165.39	65.16%
EAST WEST BANKING CORP	5,818,548,434.79	8,861,543,566.15	65.66%
NORTHPOINT DEV'T BANK INC	98,469,145.17	149,218,964.78	65.99%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	650,798,038.92	976,793,580.15	66.63%
MALASIQUI PROGRESSIVE SLB, INC	6,951,706.48	10,424,229.25	66.69%
PHIL STAR DEVELOPMENT BANK INC	9,276,107.75	13,618,385.28	68.11%
ASIA UNITED BANK CORPORATION	2,229,528,418.29	3,267,908,554.18	68.22%
STANDARD CHARTERED BANK	1,456,478,430.25	2,124,358,234.46	68.56%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	21,768,684.13	28,404,608.06	76.64%
UNITED COCONUT PLANTERS BANK	3,852,480,912.89	4,917,354,031.38	78.34%
VILLAGE BANK INC (A THRIFT BANK)	21,809,265.59	27,161,103.56	80.30%
PHILIPPINE VETERANS BANK	1,535,198,406.41	1,885,539,254.64	81.42%
BANK OF MAKATI (A SAVINGS BANK) INC	2,005,105,929.08	2,426,621,205.73	82.63%
ANZ BANKING GROUP LTD	342,757,553.61	404,087,064.26	84.82%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,279,994,157.48	1,506,845,532.18	84.95%
HIYAS BANKING CORPORATION	28,859,545.81	33,790,616.12	85.41%
LEGAZPI SAVINGS BANK INC	384,298,646.39	443,499,654.38	86.65%
BANK ONE SAVINGS AND TRUST CORP.	44,384,460.48	49,945,137.26	88.87%
BATAAN SAVINGS AND LOAN BANK	1,595,044.62	1,743,509.11	91.48%
PHIL BANK OF COMMUNICATIONS	2,092,521,170.10	2,211,964,696.92	94.60%
UNIVERSITY SAVINGS BANK INC	43,142,434.66	45,539,112.82	94.74%
BATAAN DEVELOPMENT BANK	23,381,061.33	24,610,014.94	95.01%
CORDILLERA SAVINGS BANK INC	14,015,675.60	14,699,719.72	95.35%
MAYBANK PHILIPPINES INCORPORATED	1,436,842,704.45	1,482,324,528.48	96.93%
PHIL SAVINGS BANK	4,527,930,996.18	4,663,782,199.22	97.09%
PACIFIC ACE SAVINGS BANK INC	3,128,611.95	3,119,385.69	100.30%
FIRST CONSOLIDATED BANK INC (A PDB)	633,649,703.87	627,943,191.24	100.91%
YUANTA SAVINGS BANK PHILIPPINES INC	113,002,632.40	111,437,808.32	101.40%
BPI DIRECT BANKO INC A SAVINGS BANK	426,727,495.49	418,418,339.45	101.99%
BPI FAMILY SAVINGS BANK INC	7,616,560,134.69	7,359,361,449.90	103.49%
ROBINSONS BANK CORPORATION	761,921,536.86	728,263,391.43	104.62%
UNION BANK OF THE PHILS	8,774,213,022.72	8,259,433,549.04	106.23%
FARMERS SAVINGS & LOAN BANK INC	26,399,254.88	23,955,544.69	110.20%
BANK OF COMMERCE	2,086,719,395.96	1,873,088,010.81	111.41%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	30,536,538.60	27,111,347.52	112.63%
DEVELOPMENT BANK OF THE PHIL	6,802,472,785.88	5,997,967,764.28	113.41%
LAND BANK OF THE PHILIPPINES	11,053,909,581.50	9,262,350,625.37	119.34%
THE PALAWAN BANK (PALAWAN DB) INC	22,860,428.44	18,005,142.63	126.97%
PHIL NATIONAL BANK	11,348,888,348.51	8,741,296,203.55	129.83%
HONGKONG & SHANGHAI BANKING CORP	953,505,195.76	730,992,187.04	130.44%
MERCHANTS SAVINGS & LOAN ASSN INC	27,097,442.64	19,239,366.24	140.84%
RIZAL COMM'L BANKING CORP	3,606,671,541.39	2,421,878,939.03	148.92%
BDO UNIBANK INC	26,220,282,031.37	17,219,995,831.01	152.27%
CHINA BANKING CORP	5,691,144,793.68	3,584,955,716.65	158.75%
CTBC BANK (PHILIPPINES) CORP	710,167,055.45	445,600,591.58	159.37%
METRO CEBU PUBLIC SAVINGS BANK	15,330,468.00	9,340,189.11	164.13%
CARD SME BANK INC A THRIFT BANK	103,002,490.35	61,198,081.08	168.31%
HSBC SAVINGS BANK (PHILS) INC	97,132,862.18	55,779,275.15	174.14%
BANK OF CHINA LIMITED-MANILA BRANCH	345,633,304.81	188,969,213.72	182.90%
BANK OF THE PHIL ISLANDS	15,604,216,249.63	8,232,869,548.41	189.54%
INTER-ASIA DEVELOPMENT BANK	7,516,272.01	3,360,500.59	223.67%
PHIL TRUST COMPANY	2,548,490,220.90	1,133,451,145.23	224.84%
SECURITY BANK CORP	5,062,176,525.28	2,060,467,178.32	245.68%
KEB HANA BANK - MANILA BRANCH	75,282,710.49	28,097,202.88	267.94%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,532,986.81	487,619.50	314.38%
METROPOLITAN BANK & TCO	13,301,874,284.70	4,034,181,576.50	329.73%
CITIBANK, N.A.	3,777,566,405.06	865,034,706.52	436.70%
BANGKOK BANK PUBLIC CO LTD	397,961,875.00	36,877,890.77	1079.13%
ING BANK N.V.	89,189,915.61	102.94	86642622.51%
BANK OF AMERICA N.A.	27,700,000.00	0.00	NA
BDO PRIVATE BANK, INC.	70,399,580.54	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	10,864,796.19	0.00	NA
DEUTSCHE BANK AG	131,762,906.86	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	130,000.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	14,009,143.61	0.00	NA
ISLA BANK(A THRIFT BANK) INC	4,290,580.33	0.00	NA
JP MORGAN CHASE BANK NATIONAL ASSN.	19,265,114.78	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	117,954,871.21	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	411,989,429.55	0.00	NA
SHINHAN BANK - MANILA BRANCH	10,458,964.04	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	90,545,929.42	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	388,210,030.46	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	6,848,912.55	0.00	NA
Grand Total	167,045,700,242.86	141,158,760,279.43	118.34%

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

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
June 30, 2017
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Stockholder's Equity	Impact on SE
PHIL POSTAL SAVINGS BANK INC	2,508,468,000.93	2,006,774,400.74	912,190,817.96	-180.76%
WORLD PARTNERS BANK (A THRIFT BANK)	133,433,965.51	106,747,172.41	52,424,149.24	-60.89%
LUZON DEVELOPMENT BANK	620,534,810.05	496,427,848.04	629,229,248.68	-53.44%
ENTERPRISE BANK INC (A THRIFT BANK)	265,460,226.74	212,368,181.39	260,554,304.83	-34.93%
MARITIME SAVINGS BANK CORPORATION	20,199,537.87	16,159,630.30	36,992,452.11	-24.90%
EQUICOM SAVINGS BANK INC	687,413,287.67	549,930,630.14	698,949,675.95	-23.33%
MALAYAN BANK SAVINGS AND MORT BANK INC	546,986,749.49	437,589,399.59	1,150,344,697.77	-22.78%
UCPB SAVINGS BANK	1,395,757,892.22	1,116,606,313.78	2,874,860,911.74	-15.93%
CITYSTATE SAVINGS BANK INC	193,616,529.68	154,893,223.74	679,648,386.14	-13.96%
CHINA BANK SAVINGS INC	4,191,683,659.84	3,353,346,927.87	9,092,992,464.87	-13.73%
WEALTH DEVELOPMENT BANK CORPORATION	403,775,183.43	323,020,146.74	1,460,127,640.46	-12.84%
RCBC SAVINGS BANK INC	4,652,860,907.38	3,722,288,725.90	11,066,842,802.53	-12.52%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	761,527,575.16	609,222,060.13	2,241,413,365.37	-11.87%
PAMPANGA DEVELOPMENT BANK	57,099,117.06	45,679,293.65	148,804,323.34	-10.51%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	181,830,591.66	145,464,473.33	508,641,109.11	-10.25%
PRODUCERS SAVINGS BANK CORPORATION	422,122,515.34	337,698,012.27	1,673,043,542.61	-9.04%
1ST VALLEY BANK INC A DEVELOPMENT BANK	477,431,496.72	381,945,197.38	1,559,682,991.33	-8.94%
CENTURY SAVINGS BANK CORPORATION	116,834,579.97	93,467,663.98	990,519,115.21	-7.45%
LIFE SAVINGS BANK INC	11,872,651.42	9,498,121.14	66,621,234.31	-6.94%
NORTHPOINT DEV'T BANK INC	149,218,964.78	119,375,171.82	353,822,818.80	-5.91%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	976,793,580.15	781,434,864.12	2,575,933,166.93	-5.07%
BUSINESS AND CONSUMERS BANK (A DB)	16,128,146.05	12,902,516.84	88,581,716.32	-4.40%
SUN SAVINGS BANK INC	30,479,368.03	24,383,494.42	188,151,300.87	-4.12%
STANDARD CHARTERED BANK	2,124,358,234.46	1,699,486,587.57	6,626,619,569.47	-3.67%
DUMAGUETE CITY DEV BANK INC	36,781,599.06	29,425,279.25	278,933,034.72	-3.63%
EAST WEST BANKING CORP	8,861,543,566.15	7,089,234,852.92	36,123,097,471.69	-3.52%
PNB SAVINGS BANK	1,239,695,234.28	991,756,187.42	11,581,800,819.39	-3.22%
MALASIQUI PROGRESSIVE SLB, INC	10,424,229.25	8,339,383.40	52,405,777.66	-2.65%
CITY SAVINGS BANK INC	1,971,533,165.39	1,577,226,532.31	11,948,734,053.08	-2.45%
LEMERY SAVINGS & LOAN BANK, INC.	7,191,014.95	5,752,811.96	80,394,408.65	-1.93%
PHIL STAR DEVELOPMENT BANK INC	13,618,385.28	10,894,708.22	95,515,586.09	-1.69%
OPTIMUM DEVELOPMENT BANK INC	46,514,017.84	37,211,214.27	860,541,306.24	-1.63%
ASIA UNITED BANK CORPORATION	3,267,908,554.18	2,614,326,843.34	25,064,533,136.71	-1.54%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,222,336.47	4,177,869.18	273,304,452.83	-0.47%
UNITED COCONUT PLANTERS BANK	4,917,354,031.38	3,933,883,225.10	17,763,321,160.41	-0.46%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	28,404,608.06	22,723,686.45	653,165,592.73	-0.15%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	2,025,837,707.46	0.01%
VILLAGE BANK INC (A THRIFT BANK)	27,161,103.56	21,728,882.85	82,448,387.65	0.10%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	0.00	2,362,004,659.17	0.29%
BATAAN SAVINGS AND LOAN BANK	1,743,509.11	1,394,807.29	57,872,042.86	0.35%
ANZ BANKING GROUP LTD	404,087,064.26	323,269,651.41	4,135,436,214.83	0.47%
SHINHAN BANK - MANILA BRANCH	0.00	0.00	2,202,945,627.45	0.47%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	2,137,859,788.27	0.51%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	0.00	2,247,987,353.43	0.62%
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	670,867,337.69	0.64%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	0.00	12,958,404,539.93	0.70%
PHILIPPINE VETERANS BANK	1,885,539,254.64	1,508,431,403.71	3,656,411,884.82	0.73%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,506,845,532.18	1,205,476,425.74	9,994,689,897.65	0.75%
BANK ONE SAVINGS AND TRUST CORP.	49,945,137.26	39,956,109.81	578,405,928.29	0.77%
BANK OF MAKATI (A SAVINGS BANK) INC	2,426,621,205.73	1,941,296,964.58	6,841,303,912.90	0.93%
PACIFIC ACE SAVINGS BANK INC	3,119,385.69	2,495,508.55	65,069,098.63	0.97%
HIYAS BANKING CORPORATION	33,790,616.12	27,032,492.90	168,276,907.07	1.09%
BDO PRIVATE BANK, INC.	0.00	0.00	5,603,416,533.66	1.26%
BANK OF AMERICA N.A.	0.00	0.00	2,091,322,952.20	1.32%
ROBINSONS BANK CORPORATION	728,263,391.43	582,610,713.14	12,194,350,959.91	1.47%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	0.00	1,295,542,287.45	1.49%
CORDILLERA SAVINGS BANK INC	14,699,719.72	11,759,775.78	141,590,159.34	1.59%
UNIVERSITY SAVINGS BANK INC	45,539,112.82	36,431,290.26	413,906,362.05	1.62%
MERCHANTS SAVINGS & LOAN ASSN INC	19,239,366.24	15,391,492.99	618,763,558.14	1.89%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	27,111,347.52	21,689,078.02	461,655,272.10	1.92%
QUEZON COCONUT BANK INC (A THRIFT BANK)	487,619.50	390,095.60	58,516,892.71	1.95%
MAYBANK PHILIPPINES INCORPORATED	1,482,324,528.48	1,185,859,622.78	12,511,305,008.97	2.01%
YUANTA SAVINGS BANK PHILIPPINES INC	111,437,808.32	89,150,246.66	981,621,561.60	2.43%
RIZAL COMM'L BANKING CORP	2,421,878,939.03	1,937,503,151.22	63,346,291,997.40	2.63%
HONGKONG & SHANGHAI BANKING CORP	730,992,187.04	584,793,749.63	13,714,790,245.53	2.69%
HSBC SAVINGS BANK (PHILS) INC	55,779,275.15	44,623,420.12	1,860,699,367.91	2.82%
PHIL BANK OF COMMUNICATIONS	2,211,964,696.92	1,769,571,757.54	10,478,096,577.25	3.08%
FIRST CONSOLIDATED BANK INC (A PDB)	627,943,191.24	502,354,552.99	4,069,474,830.97	3.23%
KEB HANA BANK - MANILA BRANCH	28,097,202.88	22,477,762.30	1,597,687,658.29	3.31%
UNION BANK OF THE PHILS	8,259,433,549.04	6,607,546,839.23	64,204,605,698.79	3.37%
SECURITY BANK CORP	2,060,467,178.32	1,648,373,742.66	99,567,769,614.34	3.43%
ING BANK N.V.	102.94	82.35	2,500,805,709.15	3.57%
LAND BANK OF THE PHILIPPINES	9,262,350,625.37	7,409,880,500.30	97,365,420,357.98	3.74%
CHINA BANKING CORP	3,584,955,716.65	2,867,964,573.32	74,140,331,250.87	3.81%
BANK OF COMMERCE	1,873,088,010.81	1,498,470,408.65	15,424,614,405.04	3.81%
PHIL SAVINGS BANK	4,663,782,199.22	3,731,025,759.38	19,934,184,692.96	4.00%
PHIL NATIONAL BANK	8,741,296,203.55	6,993,036,962.84	104,375,401,959.76	4.17%
BDO UNIBANK INC	17,219,995,831.01	13,775,996,664.81	288,498,827,105.70	4.31%
DEVELOPMENT BANK OF THE PHIL	5,997,967,764.28	4,798,374,211.42	45,033,443,004.31	4.45%
BPI DIRECT BANKO INC A SAVINGS BANK	418,418,339.45	334,734,671.56	2,009,459,844.76	4.58%
BATAAN DEVELOPMENT BANK	24,610,014.94	19,688,011.95	79,339,385.37	4.65%
CTBC BANK (PHILIPPINES) CORP	445,600,591.58	356,480,473.26	7,015,996,583.56	5.04%
METROPOLITAN BANK & TCO	4,034,181,576.50	3,227,345,261.20	194,923,419,998.34	5.17%
FARMERS SAVINGS & LOAN BANK INC	23,955,544.69	19,164,435.75	139,534,469.05	5.18%
BANK OF THE PHIL ISLANDS	8,232,869,548.41	6,586,295,638.73	169,327,181,092.42	5.33%
DEUTSCHE BANK AG	0.00	0.00	2,364,070,153.81	5.57%
LEGAZPI SAVINGS BANK INC	443,499,654.38	354,799,723.50	523,899,957.52	5.63%
MEGA INT'L COMM'L BANK CO LTD	0.00	0.00	1,824,886,709.42	6.46%
PHIL TRUST COMPANY	1,133,451,145.23	906,760,916.18	24,847,284,852.16	6.61%
BPI FAMILY SAVINGS BANK INC	7,359,361,449.90	5,887,489,159.92	26,009,110,830.94	6.65%
CARD SME BANK INC A THRIFT BANK	61,198,081.08	48,958,464.86	803,246,783.04	6.73%
INTER-ASIA DEVELOPMENT BANK	3,360,500.59	2,688,400.47	64,662,908.40	7.47%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	5,510,141,315.34	7.48%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,213.72	151,175,370.98	2,548,322,917.53	7.63%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	4,594,769,708.68	8.45%
BANGKOK BANK PUBLIC CO LTD	36,877,890.77	29,502,312.62	3,129,192,807.98	11.77%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	7,472,151.29	42,310,913.26	18.57%
CITIBANK, N.A.	865,034,706.52	692,027,765.22	15,937,194,194.65	19.36%
THE PALAWAN BANK (PALAWAN DB) INC	18,005,142.63	14,404,114.10	38,796,966.79	21.80%
Grand Total	141,158,760,279.43	112,927,008,223.54	1,605,115,818,311.65	3.37%

Source: www.bsp.gov.ph

All four banks highlighted in yellow have been regularly listed as one of the "The Top Distressed Philippine Banks as of June 30, 2017".

Philippine Postal Savings Bank Inc faces a shortfall of 180.76% of its stated stockholder's equity of Php 912.19 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%.