Are Philippine Banks Under Provisioning Loan Losses? - As of March 31, 2017

Are Philippine banks under provisioning loan losses?

On the face of it, no.

At 1.48% as of March 31, 2017, NPLs as a percentage of Total Loan Portfolios are at historic lows.

The NPL Coverage Ratio is near historic highs at 138.95% as of March 31, 2017.

However, NPLs can go much higher than current levels.  Over the past thirty-four years, NPLs as a percentage of Total Loan Portfolios averaged 8.78% for Philippine Universal and Commercial Banks. Moreover, Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP) have averaged 4.68% for the past thirty years.  As can be seen from the chart below, loan loss reserves hit a peak of 22.23% of TLP in 1986, an outlier.  Without this outlier, LLR/TLP average is 4.14% for the past thirty-four years.

As of March 31, 2017, LLR/TLP stands at 2.05%, which is below the historical average of 4.14%, indicating that Philippine banks are under-provisioning for loan losses, given historical norms. If Philippine banks were to maintain higher loan loss provisions to conform to historical averages, bank earnings will suffer but will be better provisioned for future losses.



Now, which banks have not adequately provisioned for loan losses at their current NPL levels, which are at historic lows? Those highlighted in yellow (below 80% NPL Coverage Ratio) are prime candidates.

Philippine Banking System
NPL Coverage Ratio
March 31, 2017
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
PHIL POSTAL SAVINGS BANK INC	346,322,046.48	2,526,517,914.79	13.71%
CENTURY SAVINGS BANK CORPORATION	19,702,529.95	117,161,921.87	16.82%
LUZON DEVELOPMENT BANK	150,405,584.14	620,878,345.67	24.22%
OPTIMUM DEVELOPMENT BANK INC	45,815,809.90	174,457,924.11	26.26%
EQUICOM SAVINGS BANK INC	172,241,366.51	646,533,823.35	26.64%
CITYSTATE SAVINGS BANK INC	61,375,654.71	221,868,254.68	27.66%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	24,499,153.86	28.36%
LIFE SAVINGS BANK INC	4,875,321.67	12,898,716.79	37.80%
WORLD PARTNERS BANK (A THRIFT BANK)	48,785,338.30	112,362,449.20	43.42%
WEALTH DEVELOPMENT BANK CORPORATION	133,638,050.71	292,932,364.95	45.62%
PRODUCERS SAVINGS BANK CORPORATION	180,254,323.44	386,138,239.27	46.68%
MALAYAN BANK SAVINGS AND MORT BANK INC	265,664,484.09	565,547,649.98	46.97%
ENTERPRISE BANK INC (A THRIFT BANK)	121,353,813.66	252,043,502.46	48.15%
UCPB SAVINGS BANK	615,156,050.17	1,254,581,397.45	49.03%
RCBC SAVINGS BANK INC	2,204,453,414.48	4,431,477,476.10	49.75%
CHINA BANK SAVINGS INC	2,236,060,135.22	4,410,355,252.20	50.70%
PAMPANGA DEVELOPMENT BANK	28,454,816.72	55,028,244.04	51.71%
BANK ONE SAVINGS AND TRUST CORP.	12,136,266.46	23,096,226.26	52.55%
1ST VALLEY BANK INC A DEVELOPMENT BANK	227,962,930.80	428,729,538.30	53.17%
METRO CEBU PUBLIC SAVINGS BANK	13,258,248.92	24,372,080.98	54.40%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	2,935,295.65	5,387,619.28	54.48%
LEMERY SAVINGS & LOAN BANK, INC.	4,366,221.44	7,700,249.95	56.70%
PNB SAVINGS BANK	598,294,643.97	1,015,744,779.07	58.90%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	103,736,921.12	168,397,257.81	61.60%
STANDARD CHARTERED BANK	1,324,883,586.02	2,124,976,632.70	62.35%
MALASIQUI PROGRESSIVE SLB, INC	6,951,706.48	11,106,429.25	62.59%
PHIL STAR DEVELOPMENT BANK INC	9,276,107.75	13,667,597.78	67.87%
BUSINESS AND CONSUMERS BANK (A DB)	9,726,977.06	14,191,495.90	68.54%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	649,798,038.92	942,498,137.44	68.94%
EAST WEST BANKING CORP	5,773,995,719.18	8,291,599,642.55	69.64%
ANZ BANKING GROUP LTD	281,876,153.28	404,087,064.26	69.76%
ASIA UNITED BANK CORPORATION	2,063,130,204.94	2,937,364,441.27	70.24%
UNITED COCONUT PLANTERS BANK	4,700,765,978.60	6,385,518,030.66	73.62%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	724,196,250.68	980,710,424.09	73.84%
CITY SAVINGS BANK INC	1,323,757,126.31	1,760,688,973.83	75.18%
MICROFINANCE MAXIMUM SB INC	8,832,017.79	11,538,108.54	76.55%
PHILIPPINE VETERANS BANK	1,474,239,837.57	1,875,995,021.68	78.58%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	20,985,370.81	26,305,413.66	79.78%
BANK OF MAKATI (A SAVINGS BANK) INC	1,837,980,147.67	2,272,945,790.64	80.86%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	30,008,072.17	36,229,903.75	82.83%
HIYAS BANKING CORPORATION	28,859,545.81	34,360,654.43	83.99%
SUN SAVINGS BANK INC	16,054,744.01	18,959,809.67	84.68%
CORDILLERA SAVINGS BANK INC	14,015,675.60	16,446,654.05	85.22%
BATAAN DEVELOPMENT BANK	23,381,061.33	27,407,967.11	85.31%
LEGAZPI SAVINGS BANK INC	385,732,943.70	445,995,447.33	86.49%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,232,951,000.48	1,387,192,466.80	88.88%
NORTHPOINT DEV'T BANK INC	91,335,230.43	99,959,947.40	91.37%
PHIL BANK OF COMMUNICATIONS	2,149,833,913.87	2,279,691,946.18	94.30%
BPI FAMILY SAVINGS BANK INC	7,339,777,514.18	7,729,608,998.38	94.96%
UNIVERSITY SAVINGS BANK INC	42,842,434.66	45,003,866.22	95.20%
PHIL SAVINGS BANK	4,540,122,740.37	4,666,176,343.64	97.30%
BATAAN SAVINGS AND LOAN BANK	1,595,044.62	1,635,781.28	97.51%
MAYBANK PHILIPPINES INCORPORATED	1,622,011,258.45	1,661,195,995.76	97.64%
BPI DIRECT BANKO INC A SAVINGS BANK	429,931,812.96	429,252,061.73	100.16%
YUANTA SAVINGS BANK PHILIPPINES INC	114,121,567.34	110,104,219.27	103.65%
DUMAGUETE CITY DEV BANK INC	18,933,844.50	17,886,472.35	105.86%
ROBINSONS BANK CORPORATION	736,174,233.67	683,406,976.50	107.72%
UNION BANK OF THE PHILS	8,785,435,158.23	7,993,445,459.90	109.91%
VILLAGE BANK INC (A THRIFT BANK)	21,809,265.59	19,616,446.39	111.18%
FARMERS SAVINGS & LOAN BANK INC	25,682,383.04	22,411,351.29	114.60%
BANK OF COMMERCE	2,116,948,054.72	1,799,079,182.21	117.67%
FIRST CONSOLIDATED BANK INC (A PDB)	630,759,385.22	525,049,637.72	120.13%
DEVELOPMENT BANK OF THE PHIL	6,639,071,049.48	5,464,419,478.74	121.50%
LAND BANK OF THE PHILIPPINES	10,635,057,799.38	8,258,481,213.76	128.78%
PHIL NATIONAL BANK	11,999,516,951.58	9,094,274,085.32	131.95%
THE PALAWAN BANK (PALAWAN DB) INC	22,327,453.43	16,672,400.66	133.92%
INTER-ASIA DEVELOPMENT BANK	6,503,459.97	4,613,153.85	140.98%
RIZAL COMM'L BANKING CORP	3,639,541,093.67	2,570,930,099.09	141.57%
MERCHANTS SAVINGS & LOAN ASSN INC	24,509,991.45	17,112,936.55	143.22%
HONGKONG & SHANGHAI BANKING CORP	1,083,159,510.67	746,769,210.95	145.05%
BDO UNIBANK INC	25,240,998,320.79	16,529,874,745.48	152.70%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,220,523.54	764,046.72	159.74%
CHINA BANKING CORP	5,857,309,009.50	3,614,348,811.57	162.06%
CARD SME BANK INC A THRIFT BANK	93,462,303.10	55,309,326.70	168.98%
BANK OF THE PHIL ISLANDS	14,742,600,146.44	8,425,699,430.98	174.97%
BANK OF CHINA LIMITED-MANILA BRANCH	343,934,360.82	188,969,213.72	182.01%
CTBC BANK (PHILIPPINES) CORP	669,089,843.01	357,499,065.12	187.16%
KEB HANA BANK - MANILA BRANCH	53,616,586.01	28,066,201.64	191.04%
SECURITY BANK CORP	4,778,871,652.09	2,209,369,283.42	216.30%
PHIL TRUST COMPANY	2,520,214,332.76	1,138,050,603.05	221.45%
METROPOLITAN BANK & TCO	13,269,152,940.21	3,755,149,756.43	353.36%
CITIBANK, N.A.	3,928,999,665.42	850,812,713.59	461.79%
BANGKOK BANK PUBLIC CO LTD	387,061,000.00	37,877,890.77	1021.87%
ING BANK N.V.	112,691,914.99	102.32	110136742.56%
BANK OF AMERICA N.A.	27,700,000.00	0.00	NA
BDO PRIVATE BANK, INC.	69,049,221.94	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	10,511,697.36	0.00	NA
DEUTSCHE BANK AG	130,690,315.37	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	130,000.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	12,303,556.90	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	434,444,800.15	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	411,975,140.91	0.00	NA
SHINHAN BANK - MANILA BRANCH	9,803,020.00	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	91,852,007.26	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	388,210,030.46	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	6,837,761.85	0.00	NA
Grand Total	165,878,883,177.38	139,247,084,946.46	119.13%

Source: www.bsp.gov.ph

The Top Distressed Philippine Banks as of March 31, 2017

Editor's Note: The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have not done a good job recently.  In the past ten years, two commercial banks, twenty-one thrift banks, and a staggering 187 rural banks have collapsed, often quite suddenly and without warning:  Regulators do have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.

Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency because a significant drop in the value of  the Distressed Assets will eat into a significant amount of the bank's capital.  A bank that has a Distressed Ratio greater than 100% is flagged as borderline insolvent.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks

This is a list of the top distressed Universal and Commercial (U/KB) as well as Thrift Banks in the Philippines as of March 31, 2017.  It updates a previous blog post: "The Top Distressed Philippine Banks as of March 31, 2017".

To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Improve Slightly in the 1st Qtr of 2017"

The Top Distressed Philippine Banks
Total Distressed Assets/ Total Capital Cushion
March 31, 2017
In Php
	March 31, 2017
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
BANK OF CHINA LIMITED-MANILA BRANCH	16,316,408,057.26	2,686,324,967.11	607.39%
MICROFINANCE MAXIMUM SB INC	40,636,925.40	10,684,332.08	380.34%
INTER-ASIA DEVELOPMENT BANK	253,076,745.04	66,668,963.29	379.60%
WORLD PARTNERS BANK (A THRIFT BANK)	277,184,901.12	102,628,351.31	270.09%
UNITED COCONUT PLANTERS BANK	27,914,580,248.86	10,539,833,574.33	264.85%
PHIL POSTAL SAVINGS BANK INC	3,326,249,104.50	1,386,449,400.04	239.91%
LUZON DEVELOPMENT BANK	951,149,954.11	521,928,677.74	182.24%
VILLAGE BANK INC (A THRIFT BANK)	179,573,012.37	103,706,871.16	173.15%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,964,417,489.67	1,275,798,584.85	153.98%
CHINA BANK SAVINGS INC	11,743,955,383.54	8,770,953,583.39	133.90%
ENTERPRISE BANK INC (A THRIFT BANK)	520,149,433.80	395,307,375.68	131.58%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	3,091,770,765.97	2,637,191,657.49	117.24%
YUANTA SAVINGS BANK PHILIPPINES INC	1,250,009,687.04	1,108,320,847.39	112.78%
BATAAN DEVELOPMENT BANK	109,965,268.61	99,439,678.30	110.58%
LEGAZPI SAVINGS BANK INC	939,745,055.52	899,898,336.50	104.43%
EQUICOM SAVINGS BANK INC	954,877,348.91	919,157,737.79	103.89%
Grand Total	69,833,749,381.72	31,524,292,938.45	221.52%

Source: www.bsp.gov.ph

Disclaimer:

This list only serves as a screening guide.  It is not a definitive guide and must be taken in the context of other factors.  The figures are based on the individual banks' statement of condition as of March 31, 2017 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.

Philippine Banks Improve Slightly in the 1st Qtr of 2017

Editor's Note: The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have not done a good job recently.  In the past ten years, two commercial banks, twenty-one thrift banks, and a staggering 187 rural banks have collapsed, often quite suddenly and without warning. Regulators do have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.

Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency because a significant drop in the value of  the Distressed Assets will eat into a significant amount of the bank's capital.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks  



Based on the individual Published Statements of Condition for the Philippine Banking Industry (from www.bsp.gov.ph), Total Distressed Assets of Philippine Banks increased by Php 14.75 billion or 2.35% from December 31, 2016 to March 31, 2017.  This increase was offset by the increase of their Total Capital Cushion of Php 163.46 billion or 10.67% during the same period. As a result, the Ratio of Total Distressed Assets to Total Capital Cushion of Philippine Commercial Banks decreased slightly by 7.44%, from 40.88% as of December 31, 2016 to 37.83% as of March 31, 2017. On a year on year basis, the Distressed Asset Ratio has dropped 9.64% from 41.87% as of March 31, 2016 to just 37.83% as of March 31, 2017.

Those banks that posted significant improvements (25% or more) in this ratio include (Distressed banks are highlighted in yellow, failed banks are highlighted in red):

1. Cathay United Bank Co Ltd (69.49% decrease)
2. Industrial Bank of Korea Manila Branch ( 65.61% decrease)
3. Bank of America N.A. (40.44% decrease)
4. Mega International Commercial Bank Co. Ltd (34.77% decrease)
5. BDO Unibank Inc (34.65% decrease)
6. United Coconut Planters Bank (26.31% decrease)

The banks that exhibited significant deterioration (25% or more) in this ratio include:

1. ING Bank N.V. (443.59% increase)
2. Microfinance Maximum SB Inc (419.62% increase)
3. JP Morgan Chase Bank National Association (269.75% increase)
4. Merchants Savings & Loan Association Inc (209.69% increase)
5. Robinsons Bank Corporation (162.14% increase)
6. World Partners Bank (129.46% increase)
7. Standard Chartered Bank (92.33% increase)
8. Deutsche Bank AG (86.73% increase)
9. Maritime Savings Bank Corporation (75.45% increase)
10. Century Savings Bank Corporation (60.98% increase)
11. Lemery Savings & Loan Bank, Inc. (55.58% increase)
12. Luzon Development Bank (37.80% increase)
13. Philippine Trust Company (32.41% increase)
14. Optimum Development Bank Inc (31.93% increase)
15. ANZ Banking Group Ltd (28.53% increase)
16. Al-Amanah Islamic Investment Bank of the Philippines (25.94% increase)

Distressed Banks

The list of Philippine Banks classified as distressed as of March 31, 2017 are as follows:

1. Bank of China Limited - Manila Branch (Distressed Ratio of 607.39%)
2. Microfinance Maximum Savings Bank Inc (Distressed Ratio of 380.34%)
3. Inter-Asia Development Bank (Distressed Ratio of 379.60%)
4. World Partners Bank (Distressed Ratio of 270.09%)
5. United Coconut Planters Bank (Distressed Ratio of 264.85%)
6. Philippine Postal Savings Bank Inc (Distressed Ratio of 239.91%)
7. Luzon Development Bank (Distressed Ratio of 182.24%)
8. Village Bank Inc (Distressed Ratio of 173.15%)
9. Malayan Bank Savings and Mortgage Bank Inc (Distressed Ratio of 153.98%)
10. China Bank Savings Inc (Distressed Ratio of 133.90%)
11. Enterprise Bank Inc (Distressed Ratio of 131.58%)
12. Philippine Resources Savings Banking Corporation (Distressed Ratio of 117.24%)
13. Yuanta Savings Bank Philippines (Distressed Ratio of 112.78%)
14. Bataan Development Bank (Distressed Ratio of 110.58%)
15. Legazpi Savings Bank (Distressed Ratio of 104.43%)
16. Equicom Savings Bank Inc (Distressed Ratio of 103.89%)

As a group, the distressed banks showed a slight improvement in their Total Distressed Assets/Total Capital Cushion Ratios.  This ratio now stands at 221.52% as of March 31, 2017, down from 232.09% as of December 31, 2016.  

Arrivals

1. Microfinance Maximum Savings Bank Inc, entered the Distressed Banks list with a Distressed Ratio of 380.34% as of March 31, 2017 from a Distressed Ratio of just 73.20% as of December 31, 2016.

Philippine Banking System
Total Distressed Assets/ Total Capital Cushion
December 31, 2016 to March 31, 2017
In %
Bank	March 31, 2017	December 31, 2016	Variance	% Variance
ING BANK N.V.	92.28%	16.98%	75.30%	443.59%
MICROFINANCE MAXIMUM SB INC	380.34%	73.20%	307.15%	419.62%
JP MORGAN CHASE BANK NATIONAL ASSN.	25.31%	6.85%	18.46%	269.75%
MERCHANTS SAVINGS & LOAN ASSN INC	6.74%	2.18%	4.57%	209.69%
ROBINSONS BANK CORPORATION	63.30%	24.15%	39.15%	162.14%
WORLD PARTNERS BANK (A THRIFT BANK)	270.09%	117.71%	152.38%	129.46%
STANDARD CHARTERED BANK	90.96%	47.30%	43.67%	92.33%
DEUTSCHE BANK AG	49.22%	26.36%	22.86%	86.73%
MARITIME SAVINGS BANK CORPORATION	86.89%	49.53%	37.37%	75.45%
CENTURY SAVINGS BANK CORPORATION	15.79%	9.81%	5.98%	60.98%
LEMERY SAVINGS & LOAN BANK, INC.	15.45%	9.93%	5.52%	55.58%
LUZON DEVELOPMENT BANK	182.24%	132.25%	49.99%	37.80%
PHIL TRUST COMPANY	38.59%	29.14%	9.45%	32.41%
OPTIMUM DEVELOPMENT BANK INC	34.37%	26.05%	8.32%	31.93%
ANZ BANKING GROUP LTD	31.92%	24.84%	7.09%	28.53%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	14.43%	11.45%	2.97%	25.94%
UNIVERSITY SAVINGS BANK INC	54.37%	43.83%	10.54%	24.05%
CITYSTATE SAVINGS BANK INC	53.70%	43.78%	9.91%	22.64%
METRO CEBU PUBLIC SAVINGS BANK	91.48%	74.88%	16.60%	22.17%
PHIL POSTAL SAVINGS BANK INC	239.91%	197.20%	42.71%	21.66%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.47%	0.40%	0.07%	18.86%
SUN SAVINGS BANK INC	17.44%	14.70%	2.73%	18.59%
PHILIPPINE VETERANS BANK	94.63%	84.21%	10.41%	12.37%
YUANTA SAVINGS BANK PHILIPPINES INC	112.78%	101.67%	11.11%	10.93%
CHINA BANK SAVINGS INC	133.90%	120.92%	12.98%	10.73%
CTBC BANK (PHILIPPINES) CORP	19.49%	17.68%	1.82%	10.29%
QUEZON COCONUT BANK INC (A THRIFT BANK)	24.64%	22.49%	2.15%	9.56%
ISLA BANK(A THRIFT BANK) INC	3.27%	3.02%	0.25%	8.18%
LIFE SAVINGS BANK INC	29.74%	27.51%	2.23%	8.11%
DUMAGUETE CITY DEV BANK INC	55.03%	51.23%	3.80%	7.43%
BANK OF CHINA LIMITED-MANILA BRANCH	607.39%	566.05%	41.34%	7.30%
1ST VALLEY BANK INC A DEVELOPMENT BANK	33.78%	31.69%	2.09%	6.59%
PAMPANGA DEVELOPMENT BANK	36.88%	34.72%	2.17%	6.24%
BANK OF COMMERCE	75.94%	71.73%	4.20%	5.86%
BANK ONE SAVINGS AND TRUST CORP.	40.49%	38.33%	2.16%	5.63%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.53%	0.51%	0.02%	4.54%
PHIL NATIONAL BANK	53.56%	51.29%	2.27%	4.43%
DEVELOPMENT BANK OF THE PHIL	41.55%	39.84%	1.71%	4.29%
THE PALAWAN BANK (PALAWAN DB) INC	73.79%	70.88%	2.90%	4.10%
RCBC SAVINGS BANK INC	79.42%	76.53%	2.88%	3.77%
BUSINESS AND CONSUMERS BANK (A DB)	18.91%	18.30%	0.61%	3.33%
MIZUHO BANK LTD - MANILA BRANCH	5.40%	5.25%	0.15%	2.77%
UCPB SAVINGS BANK	79.47%	77.73%	1.74%	2.24%
WEALTH DEVELOPMENT BANK CORPORATION	29.77%	29.19%	0.58%	1.98%
BATAAN SAVINGS AND LOAN BANK	3.47%	3.42%	0.06%	1.66%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	63.33%	62.50%	0.84%	1.34%
MALAYAN BANK SAVINGS AND MORT BANK INC	153.98%	152.39%	1.58%	1.04%
MAYBANK PHILIPPINES INCORPORATED	73.75%	73.89%	-0.14%	-0.19%
CHINA BANKING CORP	33.55%	33.62%	-0.07%	-0.20%
HIYAS BANKING CORPORATION	35.36%	35.51%	-0.15%	-0.42%
ASIA UNITED BANK CORPORATION	38.15%	38.32%	-0.17%	-0.44%
METROPOLITAN BANK & TCO	28.72%	28.95%	-0.23%	-0.78%
PHIL BANK OF COMMUNICATIONS	76.20%	76.88%	-0.68%	-0.89%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	37.58%	38.09%	-0.52%	-1.35%
LEGAZPI SAVINGS BANK INC	104.43%	105.92%	-1.49%	-1.41%
BANGKOK BANK PUBLIC CO LTD	3.52%	3.59%	-0.07%	-2.06%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	2.36%	2.42%	-0.06%	-2.46%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	56.73%	58.19%	-1.46%	-2.50%
ENTERPRISE BANK INC (A THRIFT BANK)	131.58%	135.86%	-4.28%	-3.15%
BDO PRIVATE BANK, INC.	45.13%	46.61%	-1.47%	-3.16%
INTER-ASIA DEVELOPMENT BANK	379.60%	393.99%	-14.39%	-3.65%
UNION BANK OF THE PHILS	61.06%	63.43%	-2.37%	-3.73%
KEB HANA BANK - MANILA BRANCH	11.11%	11.55%	-0.44%	-3.79%
BATAAN DEVELOPMENT BANK	110.58%	115.42%	-4.83%	-4.19%
VILLAGE BANK INC (A THRIFT BANK)	173.15%	182.60%	-9.44%	-5.17%
SHINHAN BANK - MANILA BRANCH	1.34%	1.42%	-0.07%	-5.21%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	117.24%	124.15%	-6.91%	-5.57%
FARMERS SAVINGS & LOAN BANK INC	18.77%	20.03%	-1.26%	-6.31%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	38.61%	41.30%	-2.68%	-6.50%
SECURITY BANK CORP	13.66%	14.64%	-0.98%	-6.71%
HONGKONG & SHANGHAI BANKING CORP	23.15%	24.87%	-1.73%	-6.95%
EAST WEST BANKING CORP	68.49%	74.27%	-5.78%	-7.78%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.23%	0.25%	-0.02%	-8.61%
CORDILLERA SAVINGS BANK INC	43.12%	47.22%	-4.10%	-8.69%
BANK OF MAKATI (A SAVINGS BANK) INC	51.81%	57.06%	-5.25%	-9.20%
MALASIQUI PROGRESSIVE SLB, INC	22.59%	24.94%	-2.35%	-9.42%
PHIL SAVINGS BANK	72.43%	80.29%	-7.86%	-9.79%
PRODUCERS SAVINGS BANK CORPORATION	58.40%	64.78%	-6.38%	-9.85%
LAND BANK OF THE PHILIPPINES	29.36%	32.87%	-3.51%	-10.68%
BPI FAMILY SAVINGS BANK INC	45.82%	51.51%	-5.69%	-11.05%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	51.08%	58.85%	-7.78%	-13.21%
FIRST CONSOLIDATED BANK INC (A PDB)	30.07%	34.80%	-4.73%	-13.59%
BANK OF THE PHIL ISLANDS	21.05%	24.57%	-3.52%	-14.31%
EQUICOM SAVINGS BANK INC	103.89%	121.29%	-17.40%	-14.35%
NORTHPOINT DEV'T BANK INC	34.25%	40.04%	-5.79%	-14.45%
PHIL STAR DEVELOPMENT BANK INC	29.60%	34.86%	-5.26%	-15.08%
RIZAL COMM'L BANKING CORP	22.98%	27.14%	-4.16%	-15.32%
BPI DIRECT BANKO INC A SAVINGS BANK	38.04%	45.54%	-7.50%	-16.47%
CARD SME BANK INC A THRIFT BANK	24.50%	30.78%	-6.28%	-20.41%
CITY SAVINGS BANK INC	43.68%	55.87%	-12.20%	-21.83%
CITIBANK, N.A.	46.56%	60.78%	-14.22%	-23.39%
PNB SAVINGS BANK	14.63%	19.39%	-4.76%	-24.56%
UNITED COCONUT PLANTERS BANK	264.85%	359.43%	-94.58%	-26.31%
BDO UNIBANK INC	24.23%	37.08%	-12.85%	-34.65%
MEGA INT'L COMM'L BANK CO LTD	16.95%	25.98%	-9.03%	-34.77%
BANK OF AMERICA N.A.	0.62%	1.03%	-0.42%	-40.44%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	2.75%	7.99%	-5.24%	-65.61%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.49%	1.60%	-1.11%	-69.49%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	NA	51.67%	NA	NA
HSBC SAVINGS BANK(PHILS) INC	NA	11.56%	NA	NA
Grand Total	37.83%	40.88%	-3.04%	-7.44%

Philippine Banking System
Total Distressed Assets/ Total Capital Cushion
December 31, 2016 to March 31, 2017
In Php
		March 31, 2017				December 31, 2016
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)		Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
BANK OF CHINA LIMITED-MANILA BRANCH	16,316,408,057.26	2,686,324,967.11	607.39%		15,126,831,458.02	2,672,347,692.15	566.05%
MICROFINANCE MAXIMUM SB INC	40,636,925.40	10,684,332.08	380.34%		40,090,163.89	54,771,442.59	73.20%
INTER-ASIA DEVELOPMENT BANK	253,076,745.04	66,668,963.29	379.60%		239,393,425.75	60,760,898.70	393.99%
WORLD PARTNERS BANK (A THRIFT BANK)	277,184,901.12	102,628,351.31	270.09%		276,257,129.54	234,701,101.62	117.71%
UNITED COCONUT PLANTERS BANK	27,914,580,248.86	10,539,833,574.33	264.85%		28,974,612,581.23	8,061,344,680.37	359.43%
PHIL POSTAL SAVINGS BANK INC	3,326,249,104.50	1,386,449,400.04	239.91%		2,687,447,627.94	1,362,809,795.55	197.20%
LUZON DEVELOPMENT BANK	951,149,954.11	521,928,677.74	182.24%		870,877,129.17	658,520,505.27	132.25%
VILLAGE BANK INC (A THRIFT BANK)	179,573,012.37	103,706,871.16	173.15%		179,830,047.40	98,485,627.30	182.60%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,964,417,489.67	1,275,798,584.85	153.98%		1,956,205,970.05	1,283,661,051.68	152.39%
CHINA BANK SAVINGS INC	11,743,955,383.54	8,770,953,583.39	133.90%		11,166,509,804.59	9,234,578,383.26	120.92%
ENTERPRISE BANK INC (A THRIFT BANK)	520,149,433.80	395,307,375.68	131.58%		519,127,042.07	382,097,130.25	135.86%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	3,091,770,765.97	2,637,191,657.49	117.24%		3,075,137,866.11	2,476,919,001.92	124.15%
YUANTA SAVINGS BANK PHILIPPINES INC	1,250,009,687.04	1,108,320,847.39	112.78%		1,123,456,087.91	1,105,008,705.94	101.67%
BATAAN DEVELOPMENT BANK	109,965,268.61	99,439,678.30	110.58%		111,558,649.63	96,657,335.55	115.42%
LEGAZPI SAVINGS BANK INC	939,745,055.52	899,898,336.50	104.43%		935,044,558.32	882,809,922.80	105.92%
EQUICOM SAVINGS BANK INC	954,877,348.91	919,157,737.79	103.89%		920,564,320.14	758,995,198.35	121.29%
PHILIPPINE VETERANS BANK	6,045,384,252.15	6,388,605,134.13	94.63%		5,813,408,772.81	6,903,137,432.84	84.21%
ING BANK N.V.	2,410,863,531.46	2,612,691,914.99	92.28%		442,500,094.03	2,606,771,914.09	16.98%
METRO CEBU PUBLIC SAVINGS BANK	71,917,233.90	78,611,646.62	91.48%		68,153,059.60	91,015,811.52	74.88%
STANDARD CHARTERED BANK	7,469,507,447.23	8,211,510,687.09	90.96%		3,869,199,565.44	8,180,830,061.99	47.30%
MARITIME SAVINGS BANK CORPORATION	38,418,701.25	44,213,375.12	86.89%		35,387,766.68	71,452,966.96	49.53%
UCPB SAVINGS BANK	2,718,912,995.96	3,421,212,697.65	79.47%		2,665,243,340.27	3,428,720,199.39	77.73%
RCBC SAVINGS BANK INC	10,103,995,018.27	12,722,756,975.60	79.42%		8,879,650,366.22	11,602,333,846.39	76.53%
PHIL BANK OF COMMUNICATIONS	8,345,454,061.43	10,952,490,620.08	76.20%		8,348,705,859.85	10,859,291,581.53	76.88%
BANK OF COMMERCE	13,790,868,761.27	18,160,941,025.93	75.94%		13,050,827,432.03	18,193,111,829.37	71.73%
THE PALAWAN BANK (PALAWAN DB) INC	32,607,786.13	44,192,218.20	73.79%		28,718,057.14	40,515,065.36	70.88%
MAYBANK PHILIPPINES INCORPORATED	9,932,270,482.56	13,468,045,048.18	73.75%		10,003,286,900.08	13,538,862,099.91	73.89%
PHIL SAVINGS BANK	17,700,780,168.05	24,440,006,488.28	72.43%		17,806,133,956.96	22,178,636,172.40	80.29%
EAST WEST BANKING CORP	27,377,719,521.34	39,973,102,846.20	68.49%		27,036,399,581.46	36,402,000,855.23	74.27%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	358,361,432.25	565,831,919.71	63.33%		344,061,778.20	550,531,931.42	62.50%
ROBINSONS BANK CORPORATION	8,603,359,459.32	13,590,708,826.24	63.30%		3,218,763,345.34	13,328,883,285.32	24.15%
UNION BANK OF THE PHILS	42,898,436,125.17	70,251,475,614.12	61.06%		39,841,281,822.31	62,809,305,314.47	63.43%
PRODUCERS SAVINGS BANK CORPORATION	1,046,465,478.89	1,792,001,414.64	58.40%		1,047,955,606.91	1,617,773,988.39	64.78%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	272,227,838.70	479,848,000.19	56.73%		264,727,798.72	454,943,864.25	58.19%
DUMAGUETE CITY DEV BANK INC	157,693,060.74	286,545,407.02	55.03%		138,353,989.35	270,074,160.98	51.23%
UNIVERSITY SAVINGS BANK INC	157,210,191.05	289,172,584.46	54.37%		126,667,303.33	289,016,791.59	43.83%
CITYSTATE SAVINGS BANK INC	424,191,734.04	789,975,140.16	53.70%		331,352,095.50	756,794,369.28	43.78%
PHIL NATIONAL BANK	63,305,483,861.30	118,202,591,190.55	53.56%		60,599,154,710.85	118,157,606,806.42	51.29%
BANK OF MAKATI (A SAVINGS BANK) INC	4,228,806,427.92	8,162,468,258.67	51.81%		4,205,149,616.05	7,370,251,259.05	57.06%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,643,886,989.30	3,218,482,499.65	51.08%		1,840,068,702.44	3,126,545,761.22	58.85%
DEUTSCHE BANK AG	1,037,384,066.62	2,107,490,315.37	49.22%		560,927,535.79	2,127,918,284.06	26.36%
CITIBANK, N.A.	8,002,766,461.26	17,187,017,094.51	46.56%		10,385,233,914.27	17,086,459,291.36	60.78%
BPI FAMILY SAVINGS BANK INC	15,300,865,769.67	33,396,687,963.79	45.82%		14,819,531,849.59	28,771,568,606.47	51.51%
BDO PRIVATE BANK, INC.	2,542,859,579.63	5,634,312,488.71	45.13%		2,360,663,792.30	5,065,100,238.11	46.61%
CITY SAVINGS BANK INC	5,152,276,166.29	11,796,445,418.71	43.68%		4,742,578,997.91	8,488,295,958.79	55.87%
CORDILLERA SAVINGS BANK INC	64,348,495.42	149,230,681.00	43.12%		70,319,992.41	148,912,543.90	47.22%
DEVELOPMENT BANK OF THE PHIL	21,873,008,420.95	52,638,628,635.50	41.55%		19,294,706,319.83	48,427,385,550.96	39.84%
BANK ONE SAVINGS AND TRUST CORP.	236,762,764.00	584,719,520.57	40.49%		220,631,078.54	575,561,384.50	38.33%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	4,245,633,838.36	10,995,512,483.16	38.61%		4,240,343,744.50	10,268,291,322.69	41.30%
PHIL TRUST COMPANY	8,960,569,953.56	23,220,151,668.31	38.59%		6,741,060,316.21	23,130,994,453.97	29.14%
ASIA UNITED BANK CORPORATION	10,261,206,773.03	26,898,232,825.45	38.15%		9,278,006,250.81	24,213,265,697.34	38.32%
BPI DIRECT BANKO INC A SAVINGS BANK	843,247,867.00	2,216,657,209.29	38.04%		919,786,987.98	2,019,573,463.87	45.54%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	254,964,051.92	678,498,529.42	37.58%		259,432,187.16	681,047,909.21	38.09%
PAMPANGA DEVELOPMENT BANK	59,865,911.71	162,315,062.07	36.88%		53,771,813.32	154,884,142.04	34.72%
HIYAS BANKING CORPORATION	64,138,414.80	181,363,643.13	35.36%		64,378,638.71	181,272,201.82	35.51%
OPTIMUM DEVELOPMENT BANK INC	308,915,369.88	898,756,705.41	34.37%		227,362,646.92	872,676,014.05	26.05%
NORTHPOINT DEV'T BANK INC	148,242,344.88	432,764,345.96	34.25%		170,023,538.90	424,608,422.63	40.04%
1ST VALLEY BANK INC A DEVELOPMENT BANK	564,476,104.94	1,671,093,362.27	33.78%		478,409,830.13	1,509,636,707.55	31.69%
CHINA BANKING CORP	21,654,691,371.97	64,540,248,664.73	33.55%		21,668,009,646.02	64,449,112,327.99	33.62%
ANZ BANKING GROUP LTD	1,438,727,484.55	4,507,065,659.70	31.92%		1,118,232,629.80	4,502,641,749.66	24.84%
FIRST CONSOLIDATED BANK INC (A PDB)	1,329,563,607.55	4,421,470,746.07	30.07%		1,366,180,244.75	3,925,892,000.89	34.80%
WEALTH DEVELOPMENT BANK CORPORATION	461,682,317.84	1,550,872,367.56	29.77%		406,174,709.01	1,391,408,552.86	29.19%
LIFE SAVINGS BANK INC	21,176,908.55	71,203,188.77	29.74%		18,504,420.33	67,261,879.66	27.51%
PHIL STAR DEVELOPMENT BANK INC	30,686,406.25	103,664,631.94	29.60%		35,546,067.15	101,975,258.53	34.86%
LAND BANK OF THE PHILIPPINES	27,154,867,084.51	92,478,818,587.08	29.36%		25,936,446,320.74	78,898,242,798.67	32.87%
METROPOLITAN BANK & TCO	60,108,835,736.05	209,257,932,293.61	28.72%		61,436,255,576.43	212,212,640,479.13	28.95%
JP MORGAN CHASE BANK NATIONAL ASSN.	356,106,417.55	1,406,989,114.78	25.31%		96,310,874.42	1,406,989,114.78	6.85%
QUEZON COCONUT BANK INC (A THRIFT BANK)	14,507,945.41	58,891,422.76	24.64%		13,243,555.47	58,896,033.08	22.49%
CARD SME BANK INC A THRIFT BANK	170,211,045.72	694,815,297.70	24.50%		190,987,150.14	620,521,098.74	30.78%
BDO UNIBANK INC	74,091,179,857.40	305,760,430,278.46	24.23%		82,361,772,589.44	222,129,864,926.92	37.08%
HONGKONG & SHANGHAI BANKING CORP	3,312,575,059.88	14,311,600,537.36	23.15%		3,476,624,597.15	13,976,676,208.74	24.87%
RIZAL COMM'L BANKING CORP	14,952,661,233.58	65,063,322,123.18	22.98%		16,620,564,557.66	61,237,910,163.72	27.14%
MALASIQUI PROGRESSIVE SLB, INC	13,351,105.77	59,092,503.42	22.59%		14,739,957.93	59,092,503.42	24.94%
BANK OF THE PHIL ISLANDS	38,150,916,193.12	181,197,060,574.65	21.05%		39,032,361,017.73	158,859,660,704.92	24.57%
CTBC BANK (PHILIPPINES) CORP	1,475,568,155.28	7,569,355,059.20	19.49%		1,338,228,290.83	7,571,131,213.35	17.68%
BUSINESS AND CONSUMERS BANK (A DB)	17,816,834.46	94,229,749.55	18.91%		17,516,186.54	95,724,586.04	18.30%
FARMERS SAVINGS & LOAN BANK INC	26,087,131.51	138,988,196.18	18.77%		25,902,674.63	129,294,538.69	20.03%
SUN SAVINGS BANK INC	34,899,246.95	200,140,918.73	17.44%		28,885,136.55	196,444,008.63	14.70%
MEGA INT'L COMM'L BANK CO LTD	382,285,266.08	2,255,553,267.82	16.95%		579,904,746.17	2,231,943,410.87	25.98%
CENTURY SAVINGS BANK CORPORATION	148,266,838.64	939,015,392.25	15.79%		95,088,612.40	969,488,170.41	9.81%
LEMERY SAVINGS & LOAN BANK, INC.	12907411.96	83548030.72	15.45%		8,134,521.83	81,920,093.91	9.93%
PNB SAVINGS BANK	1,769,043,085.01	12,095,773,966.90	14.63%		2,338,539,469.62	12,062,171,039.90	19.39%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	43,466,459.99	301,308,176.90	14.43%		40,580,697.68	354,263,955.59	11.45%
SECURITY BANK CORP	13,751,988,170.96	100,685,898,005.08	13.66%		13,597,727,664.78	92,876,035,419.44	14.64%
KEB HANA BANK - MANILA BRANCH	175,921,097.39	1,583,616,586.01	11.11%		182,755,492.84	1,582,723,292.43	11.55%
MERCHANTS SAVINGS & LOAN ASSN INC	41,623,473.55	617,303,577.00	6.74%		15,291,332.84	702,306,744.45	2.18%
MIZUHO BANK LTD - MANILA BRANCH	313,883,921.24	5,811,975,140.91	5.40%		302,151,194.29	5,749,964,606.89	5.25%
BANGKOK BANK PUBLIC CO LTD	122,529,775.74	3,482,342,677.00	3.52%		124,474,567.07	3,464,889,177.00	3.59%
BATAAN SAVINGS AND LOAN BANK	2,080,161.57	59,861,620.72	3.47%		2,046,274.98	59,861,620.72	3.42%
ISLA BANK(A THRIFT BANK) INC	21,888,191.74	669,228,421.19	3.27%		20,165,338.56	666,976,418.68	3.02%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	60,745,441.49	2,210,533,394.21	2.75%		174,287,566.49	2,181,032,346.27	7.99%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	117,283,978.96	4,967,420,166.75	2.36%		120,244,555.91	4,967,420,166.75	2.42%
SHINHAN BANK - MANILA BRANCH	29,666,122.91	2,209,803,020.00	1.34%		31,233,161.68	2,205,330,996.00	1.42%
BANK OF AMERICA N.A.	13,082,185.90	2,123,761,205.20	0.62%		21,965,204.45	2,123,761,205.20	1.03%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	10,929,134.70	2,061,360,424.92	0.53%		10,751,218.35	2,119,950,000.00	0.51%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	10,448,030.28	2,137,180,231.60	0.49%		34,251,488.85	2,137,548,971.18	1.60%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	61,558,421.85	13,093,701,260.08	0.47%		51,755,204.23	13,084,187,806.49	0.40%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	5,382,070.83	2,381,918,151.88	0.23%		5,950,524.64	2,406,821,935.05	0.25%
DUNGGANON BANK (A MICROFINANCE THRIFT BANK) INC	NA	NA	NA		62,788,421.90	121,524,055.84	51.67%
HSBC SAVINGS BANK(PHILS) INC	NA	NA	NA		215,364,569.32	1,862,329,637.76	11.56%
Grand Total	640,801,194,680.01	1,693,778,947,057.13	37.83%		626,333,202,850.21	1,532,304,159,255.24	40.88%

Source: www.bsp.gov.ph

Disclaimer:

This list only serves as a screening guide.  It is not a definitive guide and must be taken in the context of other factors.  The figures are based on the individual banks' statement of condition as of December 31, 2016 and March 31, 2017 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.