A Simple Stress Test of Philippine Banks as of March 31, 2017

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

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 217.88 billion or 1.58% of the Php 13,777.29 billion in assets held in the Philippine Banking System as of March 31, 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 139.25 billion or 8.97% of the PhP 1,552.38 billion in Stockholders Equity (SE) as of March 31, 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 March 31, 2017).

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

1. Philippine Postal Savings Bank Inc (132.39% decline in SE)
2. World Partners Bank (130.76% decline in SE)
3. Luzon Development Bank (89.87% decline in SE)
4. Enterprise Bank Inc (45.46% decline in SE)
5. Equicom Savings Bank (43.55% decline in SE)
6. Legazpi Savings Bank Inc (43.04% decline in SE)
7. Maritime Savings Bank Corporation (33.20% decline in SE)

Philippine Banking System
NPL as % of SE
March 31, 2017
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
PHIL POSTAL SAVINGS BANK INC	2,526,517,914.79	954,200,832.74	264.78%
WORLD PARTNERS BANK (A THRIFT BANK)	112,362,449.20	42,964,068.18	261.53%
LUZON DEVELOPMENT BANK	620,878,345.67	345,425,448.65	179.74%
ENTERPRISE BANK INC (A THRIFT BANK)	252,043,502.46	277,185,285.45	90.93%
EQUICOM SAVINGS BANK INC	646,533,823.35	742,357,199.11	87.09%
LEGAZPI SAVINGS BANK INC	445,995,447.33	518,168,423.03	86.07%
MARITIME SAVINGS BANK CORPORATION	24,499,153.86	36,899,584.35	66.39%
MALAYAN BANK SAVINGS AND MORT BANK INC	565,547,649.98	1,021,229,750.21	55.38%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	980,710,424.09	1,922,167,223.77	51.02%
CHINA BANK SAVINGS INC	4,410,355,252.20	9,163,202,511.71	48.13%
PHILIPPINE VETERANS BANK	1,875,995,021.68	4,046,296,276.43	46.36%
UCPB SAVINGS BANK	1,254,581,397.45	2,819,058,997.52	44.50%
THE PALAWAN BANK (PALAWAN DB) INC	16,672,400.66	39,837,931.33	41.85%
RCBC SAVINGS BANK INC	4,431,477,476.10	10,695,425,583.02	41.43%
PAMPANGA DEVELOPMENT BANK	55,028,244.04	135,300,585.57	40.67%
METRO CEBU PUBLIC SAVINGS BANK	24,372,080.98	61,356,495.52	39.72%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	942,498,137.44	2,562,739,122.29	36.78%
UNITED COCONUT PLANTERS BANK	6,385,518,030.66	17,451,124,244.88	36.59%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	168,397,257.81	462,780,457.04	36.39%
BATAAN DEVELOPMENT BANK	27,407,967.11	77,568,284.11	35.33%
BANK OF MAKATI (A SAVINGS BANK) INC	2,272,945,790.64	6,556,445,019.72	34.67%
CITYSTATE SAVINGS BANK INC	221,868,254.68	692,872,698.83	32.02%
STANDARD CHARTERED BANK	2,124,976,632.70	6,667,508,845.95	31.87%
NORTHPOINT DEV'T BANK INC	99,959,947.40	344,690,779.53	29.00%
BPI FAMILY SAVINGS BANK INC	7,729,608,998.38	26,770,809,993.57	28.87%
1ST VALLEY BANK INC A DEVELOPMENT BANK	428,729,538.30	1,488,039,794.90	28.81%
PHIL SAVINGS BANK	4,666,176,343.64	19,291,936,376.39	24.19%
BPI DIRECT BANKO INC A SAVINGS BANK	429,252,061.73	1,808,195,890.33	23.74%
PRODUCERS SAVINGS BANK CORPORATION	386,138,239.27	1,644,599,363.96	23.48%
EAST WEST BANKING CORP	8,291,599,642.55	35,333,154,415.37	23.47%
VILLAGE BANK INC (A THRIFT BANK)	19,616,446.39	84,544,831.29	23.20%
PHIL BANK OF COMMUNICATIONS	2,279,691,946.18	10,278,350,767.42	22.18%
MALASIQUI PROGRESSIVE SLB, INC	11,106,429.25	52,213,426.23	21.27%
HIYAS BANKING CORPORATION	34,360,654.43	162,196,397.10	21.18%
WEALTH DEVELOPMENT BANK CORPORATION	292,932,364.95	1,428,158,118.24	20.51%
OPTIMUM DEVELOPMENT BANK INC	174,457,924.11	862,100,904.11	20.24%
LIFE SAVINGS BANK INC	12,898,716.79	66,685,537.96	19.34%
FARMERS SAVINGS & LOAN BANK INC	22,411,351.29	123,861,508.80	18.09%
BUSINESS AND CONSUMERS BANK (A DB)	14,191,495.90	87,093,685.39	16.29%
CITY SAVINGS BANK INC	1,760,688,973.83	11,258,212,430.01	15.64%
PHIL STAR DEVELOPMENT BANK INC	13,667,597.78	95,600,562.55	14.30%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,387,192,466.80	9,865,174,936.23	14.06%
MAYBANK PHILIPPINES INCORPORATED	1,661,195,995.76	11,942,769,431.31	13.91%
FIRST CONSOLIDATED BANK INC (A PDB)	525,049,637.72	3,921,398,077.44	13.39%
UNION BANK OF THE PHILS	7,993,445,459.90	62,091,195,752.80	12.87%
ASIA UNITED BANK CORPORATION	2,937,364,441.27	24,339,526,209.83	12.07%
CENTURY SAVINGS BANK CORPORATION	117,161,921.87	977,594,202.51	11.98%
CORDILLERA SAVINGS BANK INC	16,446,654.05	137,922,232.19	11.92%
DEVELOPMENT BANK OF THE PHIL	5,464,419,478.74	45,934,092,718.50	11.90%
BANK OF COMMERCE	1,799,079,182.21	15,153,876,740.35	11.87%
YUANTA SAVINGS BANK PHILIPPINES INC	110,104,219.27	984,463,916.70	11.18%
UNIVERSITY SAVINGS BANK INC	45,003,866.22	413,430,545.96	10.89%
SUN SAVINGS BANK INC	18,959,809.67	186,900,409.10	10.14%
ANZ BANKING GROUP LTD	404,087,064.26	4,104,226,806.61	9.85%
LEMERY SAVINGS & LOAN BANK, INC.	7,700,249.95	78,452,926.42	9.82%
LAND BANK OF THE PHILIPPINES	8,258,481,213.76	88,633,984,423.30	9.32%
PHIL NATIONAL BANK	9,094,274,085.32	102,462,349,335.36	8.88%
PNB SAVINGS BANK	1,015,744,779.07	11,591,387,229.87	8.76%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	36,229,903.75	450,501,970.48	8.04%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,213.72	2,441,975,318.50	7.74%
CARD SME BANK INC A THRIFT BANK	55,309,326.70	730,971,718.18	7.57%
INTER-ASIA DEVELOPMENT BANK	4,613,153.85	63,960,230.92	7.21%
DUMAGUETE CITY DEV BANK INC	17,886,472.35	262,559,613.94	6.81%
CHINA BANKING CORP	3,614,348,811.57	59,031,464,070.10	6.12%
CITIBANK, N.A.	850,812,713.59	14,095,242,099.44	6.04%
BDO UNIBANK INC	16,529,874,745.48	281,630,888,488.73	5.87%
ROBINSONS BANK CORPORATION	683,406,976.50	12,115,260,786.73	5.64%
HONGKONG & SHANGHAI BANKING CORP	746,769,210.95	13,344,344,650.98	5.60%
CTBC BANK (PHILIPPINES) CORP	357,499,065.12	6,943,609,350.32	5.15%
BANK OF THE PHIL ISLANDS	8,425,699,430.98	167,104,837,324.17	5.04%
PHIL TRUST COMPANY	1,138,050,603.05	24,035,572,042.30	4.73%
RIZAL COMM'L BANKING CORP	2,570,930,099.09	63,296,711,382.13	4.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	26,305,413.66	654,099,419.31	4.02%
BANK ONE SAVINGS AND TRUST CORP.	23,096,226.26	580,064,633.75	3.98%
BATAAN SAVINGS AND LOAN BANK	1,635,781.28	57,924,599.63	2.82%
MERCHANTS SAVINGS & LOAN ASSN INC	17,112,936.55	622,416,521.47	2.75%
SECURITY BANK CORP	2,209,369,283.42	98,491,544,960.42	2.24%
METROPOLITAN BANK & TCO	3,755,149,756.43	189,844,343,707.17	1.98%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,387,619.28	286,499,778.84	1.88%
KEB HANA BANK - MANILA BRANCH	28,066,201.64	1,587,936,331.22	1.77%
QUEZON COCONUT BANK INC (A THRIFT BANK)	764,046.72	59,014,544.28	1.29%
BANGKOK BANK PUBLIC CO LTD	37,877,890.77	3,098,933,162.94	1.22%
ING BANK N.V.	102.32	2,502,824,099.02	0.00%
BANK OF AMERICA N.A.	0.00	2,096,035,697.20	0.00%
BDO PRIVATE BANK, INC.	0.00	5,410,232,810.34	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	2,130,401,780.67	0.00%
DEUTSCHE BANK AG	0.00	2,257,001,851.98	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,031,188,854.41	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,222,941,066.65	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	667,526,085.03	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,318,053,765.87	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	1,861,262,054.27	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,574,888,253.17	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,303,656.55	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,001,887,788.35	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,580,114,852.15	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,412,646,568.87	0.00%
MICROFINANCE MAXIMUM SB INC	11,538,108.54	-10,270,099.95	-112.35%
Grand Total	139,247,084,946.46	1,552,380,021,337.57	8.97%

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, 2017, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 349.93 billion or almost 3 times the size of the Philippine Banking System's NPLs of PhP 139.25 billion for the same period.  Consequently, any write-offs of Classified Loans will have almost three times the impact of an NPL write-off.

Philippine Banking System
Classified Loans vs. NPLs
March 31, 2017
			Classified Loans/NPL
Bank	Classified Loans	Gross NPLs	(In %)
ING BANK N.V.	30,000,000.00	102.32	29319781.08%
BANK OF CHINA LIMITED-MANILA BRANCH	16,279,051,512.77	188,969,213.72	8614.66%
INTER-ASIA DEVELOPMENT BANK	248,961,155.00	4,613,153.85	5396.77%
QUEZON COCONUT BANK INC (A THRIFT BANK)	13,296,687.24	764,046.72	1740.30%
ROBINSONS BANK CORPORATION	7,399,721,000.00	683,406,976.50	1082.77%
YUANTA SAVINGS BANK PHILIPPINES INC	1,177,923,196.08	110,104,219.27	1069.83%
BANK ONE SAVINGS AND TRUST CORP.	211,776,802.54	23,096,226.26	916.93%
VILLAGE BANK INC (A THRIFT BANK)	171,691,000.00	19,616,446.39	875.24%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	223,630,937.63	26,305,413.66	850.13%
DUMAGUETE CITY DEV BANK INC	128,333,200.58	17,886,472.35	717.49%
PHIL TRUST COMPANY	7,695,000,000.00	1,138,050,603.05	676.16%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	220,917,762.55	36,229,903.75	609.77%
KEB HANA BANK - MANILA BRANCH	146,061,987.74	28,066,201.64	520.42%
BANK OF COMMERCE	8,733,341,364.12	1,799,079,182.21	485.43%
METROPOLITAN BANK & TCO	17,518,898,738.49	3,755,149,756.43	466.53%
CITIBANK, N.A.	3,640,116,299.87	850,812,713.59	427.84%
SECURITY BANK CORP	9,018,000,000.00	2,209,369,283.42	408.17%
BATAAN DEVELOPMENT BANK	102,400,000.00	27,407,967.11	373.61%
CHINA BANKING CORP	12,857,852,127.70	3,614,348,811.57	355.74%
CORDILLERA SAVINGS BANK INC	58,369,467.39	16,446,654.05	354.90%
PHIL NATIONAL BANK	31,117,271,203.83	9,094,274,085.32	342.16%
MAYBANK PHILIPPINES INCORPORATED	5,529,372,467.16	1,661,195,995.76	332.85%
UNIVERSITY SAVINGS BANK INC	140,047,123.16	45,003,866.22	311.19%
MALAYAN BANK SAVINGS AND MORT BANK INC	1,730,590,795.34	565,547,649.98	306.00%
UNION BANK OF THE PHILS	24,448,609,028.56	7,993,445,459.90	305.86%
PHIL SAVINGS BANK	14,064,980,690.81	4,666,176,343.64	301.42%
METRO CEBU PUBLIC SAVINGS BANK	69,873,900.28	24,372,080.98	286.70%
RIZAL COMM'L BANKING CORP	7,275,070,052.17	2,570,930,099.09	282.97%
BDO UNIBANK INC	45,944,748,586.32	16,529,874,745.48	277.95%
UNITED COCONUT PLANTERS BANK	17,194,349,897.69	6,385,518,030.66	269.27%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	14,086,000.00	5,387,619.28	261.45%
LAND BANK OF THE PHILIPPINES	20,316,296,990.17	8,258,481,213.76	246.01%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	2,305,455,320.91	980,710,424.09	235.08%
WORLD PARTNERS BANK (A THRIFT BANK)	233,248,015.31	112,362,449.20	207.59%
ASIA UNITED BANK CORPORATION	5,870,585,956.47	2,937,364,441.27	199.86%
LEGAZPI SAVINGS BANK INC	883,980,000.00	445,995,447.33	198.20%
DEVELOPMENT BANK OF THE PHIL	10,789,223,948.04	5,464,419,478.74	197.45%
PHIL STAR DEVELOPMENT BANK INC	26,922,007.94	13,667,597.78	196.98%
PHILIPPINE VETERANS BANK	3,486,613,522.42	1,875,995,021.68	185.85%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	306,709,326.96	168,397,257.81	182.13%
FIRST CONSOLIDATED BANK INC (A PDB)	952,700,667.65	525,049,637.72	181.45%
UCPB SAVINGS BANK	2,181,355,529.00	1,254,581,397.45	173.87%
BANK OF THE PHIL ISLANDS	14,421,243,615.42	8,425,699,430.98	171.16%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	2,367,490,000.00	1,387,192,466.80	170.67%
RCBC SAVINGS BANK INC	6,940,955,925.00	4,431,477,476.10	156.63%
CHINA BANK SAVINGS INC	6,731,417,361.15	4,410,355,252.20	152.63%
MARITIME SAVINGS BANK CORPORATION	37,130,657.86	24,499,153.86	151.56%
CTBC BANK (PHILIPPINES) CORP	534,693,605.84	357,499,065.12	149.57%
BPI FAMILY SAVINGS BANK INC	10,918,914,754.04	7,729,608,998.38	141.26%
LIFE SAVINGS BANK INC	17,512,163.62	12,898,716.79	135.77%
BANK OF MAKATI (A SAVINGS BANK) INC	2,977,949,117.72	2,272,945,790.64	131.02%
PRODUCERS SAVINGS BANK CORPORATION	494,118,240.10	386,138,239.27	127.96%
PHIL POSTAL SAVINGS BANK INC	3,207,201,326.40	2,526,517,914.79	126.94%
PNB SAVINGS BANK	1,246,507,690.93	1,015,744,779.07	122.72%
BPI DIRECT BANKO INC A SAVINGS BANK	519,601,077.18	429,252,061.73	121.05%
EQUICOM SAVINGS BANK INC	772,828,274.78	646,533,823.35	119.53%
OPTIMUM DEVELOPMENT BANK INC	204,039,798.99	174,457,924.11	116.96%
CENTURY SAVINGS BANK CORPORATION	136,054,603.51	117,161,921.87	116.13%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,080,783,000.00	942,498,137.44	114.67%
CITY SAVINGS BANK INC	1,967,614,331.37	1,760,688,973.83	111.75%
LUZON DEVELOPMENT BANK	662,154,665.50	620,878,345.67	106.65%
EAST WEST BANKING CORP	8,692,840,178.42	8,291,599,642.55	104.84%
1ST VALLEY BANK INC A DEVELOPMENT BANK	447,623,271.20	428,729,538.30	104.41%
NORTHPOINT DEV'T BANK INC	102,839,228.57	99,959,947.40	102.88%
STANDARD CHARTERED BANK	2,168,529,703.48	2,124,976,632.70	102.05%
LEMERY SAVINGS & LOAN BANK, INC.	7,706,907.84	7,700,249.95	100.09%
BANGKOK BANK PUBLIC CO LTD	37,877,890.77	37,877,890.77	100.00%
BATAAN SAVINGS AND LOAN BANK	1,635,781.28	1,635,781.28	100.00%
HIYAS BANKING CORPORATION	34,360,654.43	34,360,654.43	100.00%
MALASIQUI PROGRESSIVE SLB, INC	11,106,429.25	11,106,429.25	100.00%
SUN SAVINGS BANK INC	18,294,765.36	18,959,809.67	96.49%
PAMPANGA DEVELOPMENT BANK	51,802,617.57	55,028,244.04	94.14%
WEALTH DEVELOPMENT BANK CORPORATION	174,873,766.38	292,932,364.95	59.70%
PHIL BANK OF COMMUNICATIONS	1,208,974,290.46	2,279,691,946.18	53.03%
HONGKONG & SHANGHAI BANKING CORP	333,592,923.25	746,769,210.95	44.67%
ANZ BANKING GROUP LTD	246,404.86	404,087,064.26	0.06%
BUSINESS AND CONSUMERS BANK (A DB)	0.00	14,191,495.90	0.00%
CARD SME BANK INC A THRIFT BANK	0.00	55,309,326.70	0.00%
CITYSTATE SAVINGS BANK INC	0.00	221,868,254.68	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0.00	252,043,502.46	0.00%
FARMERS SAVINGS & LOAN BANK INC	0.00	22,411,351.29	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0.00	17,112,936.55	0.00%
MICROFINANCE MAXIMUM SB INC	0.00	11,538,108.54	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0.00	16,672,400.66	0.00%
BANK OF AMERICA N.A.	2,184,000.00	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
FIRST COMMERCIAL BANK LTD MANILA BRANCH	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
MEGA INT'L COMM'L BANK CO LTD	364,681,701.01	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	238,072,677.39	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	35,862,400.00	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	0.00	NA
Grand Total	349,928,750,070.82	139,247,084,946.46	251.30%

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 349.93 billion or 20.66% of the Php 1.69 trillion in Total Capital Cushion of Philippine Banks as of March 31, 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 20.66% 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 2.07% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 10.33%.

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 (60.60% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (37.34% 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 (121.20% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (74.69% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (46.26% reduction in Total Capital Cushion)
4. World Partners Bank (45.45% reduction in Total Capital Cushion)
5. Village Bank Inc (33.11% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (32.63% 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 eight other banks:

1. Bank of China Limited - Manila Branch (181.80% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (112.03% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (69.40% reduction in Total Capital Cushion)
4. World Partners Bank (68.18% reduction in Total Capital Cushion)
5. Village Bank Inc (49.67% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (48.94% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mort Bank (40.69% reduction in Total Capital Cushion)
8. Luzon Development Bank (38.06% reduction in Total Capital Cushion)
9. Yuanta Savings Bank Philippines Inc (31.88% reduction in Total Capital Cushion)
10. Bataan Development Bank (30.89% 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 fourteen more banks:

1. Bank of China Limited - Manila Branch (242.40% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (149.37% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (92.53% reduction in Total Capital Cushion)
4. World Partners Bank (90.91% reduction in Total Capital Cushion)
5. Village Bank Inc (66.22% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (65.25% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mort Bank (54.26% reduction in Total Capital Cushion)
8. Luzon Development Bank (50.75% reduction in Total Capital Cushion)
9. Yuanta Savings Bank Philippines Inc (42.51% reduction in Total Capital Cushion)
10. Bataan Development Bank (41.19% reduction in Total Capital Cushion)
11. Legazpi Savings Bank (39.29% reduction in Total Capital Cushion)
12. Metro Cebu Public Savings Bank (35.55% reduction in Total Capital Cushion)
13. Philippine Resources Savings Banking Corporation (34.97% reduction in Total Capital Cushion)
14. Equicom Savings Bank (33.63% reduction in Total Capital Cushion)
15. Maritime Savings Bank Corporation (33.59% reduction in Total Capital Cushion)
16. China Bank Savings Inc (30.70% 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 thirteen more banks:

1. Bank of China Limited - Manila Branch (303.00% reduction in Total Capital Cushion)
2. Inter-Asia Development Bank (186.71% reduction in Total Capital Cushion)
3. Philippine Postal Savings Bank Inc (115.66% reduction in Total Capital Cushion)
4. World Partners Bank (113.64% reduction in Total Capital Cushion)
5. Village Bank Inc (82.72% reduction in Total Capital Cushion)
6. United Coconut Planters Bank (81.57% reduction in Total Capital Cushion)
7. Malayan Bank Savings and Mort Bank (67.82% reduction in Total Capital Cushion)
8. Luzon Development Bank (63.43% reduction in Total Capital Cushion)
9. Yuanta Savings Bank Philippines Inc (53.14% reduction in Total Capital Cushion)
10. Bataan Development Bank (51.49% reduction in Total Capital Cushion)
11. Legazpi Savings Bank (49.12% reduction in Total Capital Cushion)
12. Metro Cebu Public Savings Bank (44.44% reduction in Total Capital Cushion)
13. Philippine Resources Savings Banking Corporation (43.71% reduction in Total Capital Cushion)
14. Equicom Savings Bank (42.04% reduction in Total Capital Cushion)
15. Maritime Savings Bank Corporation (41.99% reduction in Total Capital Cushion)
16. China Bank Savings Inc (38.37% reduction in Total Capital Cushion)
17. UCPB Savings Bank (31.88% 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, 2017".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of March 31, 2017".  As such, any reduction in their capital cushion could knock down an already weak bank.

Source: www.bsp.gov.ph

Luzon Development Bank Ranks Third in Non-Performing Loans as % of Stockholder's Equity as of March 31, 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 Philippine Postal Savings Bank Ranks First in Non-Performing Loans as % of Stockholder's Equity as of December 31, 2016.


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 139.25 billion as of March 31, 2017 - approximately 1.85% of the Philippine Banking Industry's Total Loan Portfolio of Php 7.54 trillion.

Philippine Banking System
NPL as % of TLP
March 31, 2017
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
MICROFINANCE MAXIMUM SB INC	11,538,108.54	15,789,931.64	73.07%
PHIL STAR DEVELOPMENT BANK INC	13,667,597.78	26,922,007.94	50.77%
PHIL POSTAL SAVINGS BANK INC	2,526,517,914.79	5,952,990,857.03	42.44%
WORLD PARTNERS BANK (A THRIFT BANK)	112,362,449.20	331,610,576.47	33.88%
LEGAZPI SAVINGS BANK INC	445,995,447.33	1,375,147,797.08	32.43%
MALASIQUI PROGRESSIVE SLB, INC	11,106,429.25	38,077,734.18	29.17%
NORTHPOINT DEV'T BANK INC	99,959,947.40	397,327,582.49	25.16%
CENTURY SAVINGS BANK CORPORATION	117,161,921.87	511,508,769.87	22.91%
MARITIME SAVINGS BANK CORPORATION	24,499,153.86	109,497,336.40	22.37%
METRO CEBU PUBLIC SAVINGS BANK	24,372,080.98	112,723,782.72	21.62%
LIFE SAVINGS BANK INC	12,898,716.79	60,989,350.20	21.15%
LUZON DEVELOPMENT BANK	620,878,345.67	3,050,468,366.53	20.35%
YUANTA SAVINGS BANK PHILIPPINES INC	110,104,219.27	547,304,392.00	20.12%
BATAAN DEVELOPMENT BANK	27,407,967.11	145,642,670.18	18.82%
HIYAS BANKING CORPORATION	34,360,654.43	204,845,015.67	16.77%
PAMPANGA DEVELOPMENT BANK	55,028,244.04	340,066,681.27	16.18%
ENTERPRISE BANK INC (A THRIFT BANK)	252,043,502.46	1,595,578,063.82	15.80%
MALAYAN BANK SAVINGS AND MORT BANK INC	565,547,649.98	3,889,720,830.40	14.54%
BATAAN SAVINGS AND LOAN BANK	1,635,781.28	12,697,262.51	12.88%
EQUICOM SAVINGS BANK INC	646,533,823.35	5,021,465,073.28	12.88%
FARMERS SAVINGS & LOAN BANK INC	22,411,351.29	174,896,503.48	12.81%
PHILIPPINE VETERANS BANK	1,875,995,021.68	15,728,250,984.71	11.93%
OPTIMUM DEVELOPMENT BANK INC	174,457,924.11	1,482,188,151.81	11.77%
BANK OF MAKATI (A SAVINGS BANK) INC	2,272,945,790.64	20,299,727,190.44	11.20%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	980,710,424.09	9,209,618,417.68	10.65%
BUSINESS AND CONSUMERS BANK (A DB)	14,191,495.90	144,505,589.58	9.82%
CITYSTATE SAVINGS BANK INC	221,868,254.68	2,329,661,781.57	9.52%
CORDILLERA SAVINGS BANK INC	16,446,654.05	178,461,063.33	9.22%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	168,397,257.81	1,892,335,961.92	8.90%
UCPB SAVINGS BANK	1,254,581,397.45	14,326,146,194.67	8.76%
BPI DIRECT BANKO INC A SAVINGS BANK	429,252,061.73	5,056,006,796.34	8.49%
UNIVERSITY SAVINGS BANK INC	45,003,866.22	548,941,614.69	8.20%
1ST VALLEY BANK INC A DEVELOPMENT BANK	428,729,538.30	5,567,784,109.25	7.70%
LEMERY SAVINGS & LOAN BANK, INC.	7,700,249.95	105,207,477.44	7.32%
CHINA BANK SAVINGS INC	4,410,355,252.20	62,195,273,571.95	7.09%
THE PALAWAN BANK (PALAWAN DB) INC	16,672,400.66	252,731,186.91	6.60%
STANDARD CHARTERED BANK	2,124,976,632.70	32,749,454,237.36	6.49%
RCBC SAVINGS BANK INC	4,431,477,476.10	74,478,345,026.33	5.95%
WEALTH DEVELOPMENT BANK CORPORATION	292,932,364.95	5,420,119,923.32	5.40%
PHIL BANK OF COMMUNICATIONS	2,279,691,946.18	42,941,852,188.24	5.31%
PRODUCERS SAVINGS BANK CORPORATION	386,138,239.27	7,734,811,170.35	4.99%
FIRST CONSOLIDATED BANK INC (A PDB)	525,049,637.72	11,066,132,150.09	4.74%
UNITED COCONUT PLANTERS BANK	6,385,518,030.66	137,433,358,525.34	4.65%
VILLAGE BANK INC (A THRIFT BANK)	19,616,446.39	442,314,584.09	4.43%
EAST WEST BANKING CORP	8,291,599,642.55	192,179,528,731.62	4.31%
UNION BANK OF THE PHILS	7,993,445,459.90	194,584,015,704.60	4.11%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	942,498,137.44	24,866,955,539.75	3.79%
BPI FAMILY SAVINGS BANK INC	7,729,608,998.38	214,342,598,121.29	3.61%
PHIL SAVINGS BANK	4,666,176,343.64	135,120,278,090.58	3.45%
DUMAGUETE CITY DEV BANK INC	17,886,472.35	523,323,608.83	3.42%
PNB SAVINGS BANK	1,015,744,779.07	32,594,056,218.51	3.12%
SUN SAVINGS BANK INC	18,959,809.67	632,510,494.61	3.00%
ASIA UNITED BANK CORPORATION	2,937,364,441.27	101,281,084,697.97	2.90%
BANK OF COMMERCE	1,799,079,182.21	62,176,905,315.23	2.89%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	36,229,903.75	1,358,113,428.10	2.67%
INTER-ASIA DEVELOPMENT BANK	4,613,153.85	177,450,355.22	2.60%
CITY SAVINGS BANK INC	1,760,688,973.83	67,990,770,288.46	2.59%
MAYBANK PHILIPPINES INCORPORATED	1,661,195,995.76	66,720,488,899.94	2.49%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,387,192,466.80	56,492,794,577.93	2.46%
PHIL TRUST COMPANY	1,138,050,603.05	46,936,988,541.09	2.42%
PHIL NATIONAL BANK	9,094,274,085.32	384,394,857,214.06	2.37%
DEVELOPMENT BANK OF THE PHIL	5,464,419,478.74	232,096,886,468.94	2.35%
MERCHANTS SAVINGS & LOAN ASSN INC	17,112,936.55	738,696,466.12	2.32%
BANK ONE SAVINGS AND TRUST CORP.	23,096,226.26	1,036,033,421.44	2.23%
CARD SME BANK INC A THRIFT BANK	55,309,326.70	2,677,386,929.57	2.07%
ROBINSONS BANK CORPORATION	683,406,976.50	39,848,707,667.63	1.72%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	26,305,413.66	1,658,852,722.86	1.59%
ANZ BANKING GROUP LTD	404,087,064.26	25,930,560,180.40	1.56%
LAND BANK OF THE PHILIPPINES	8,258,481,213.76	539,797,305,223.28	1.53%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,387,619.28	389,794,595.89	1.38%
CTBC BANK (PHILIPPINES) CORP	357,499,065.12	26,184,578,428.10	1.37%
QUEZON COCONUT BANK INC (A THRIFT BANK)	764,046.72	56,483,915.90	1.35%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,213.72	15,980,027,362.50	1.18%
HONGKONG & SHANGHAI BANKING CORP	746,769,210.95	64,103,366,885.02	1.16%
CHINA BANKING CORP	3,614,348,811.57	321,093,535,439.61	1.13%
RIZAL COMM'L BANKING CORP	2,570,930,099.09	235,547,958,490.68	1.09%
BDO UNIBANK INC	16,529,874,745.48	1,515,526,852,845.28	1.09%
BANK OF THE PHIL ISLANDS	8,425,699,430.98	825,677,042,965.19	1.02%
SECURITY BANK CORP	2,209,369,283.42	304,894,419,011.73	0.72%
KEB HANA BANK - MANILA BRANCH	28,066,201.64	4,545,236,742.99	0.62%
CITIBANK, N.A.	850,812,713.59	192,932,389,729.81	0.44%
BANGKOK BANK PUBLIC CO LTD	37,877,890.77	8,823,692,689.91	0.43%
METROPOLITAN BANK & TCO	3,755,149,756.43	929,386,375,489.53	0.40%
ING BANK N.V.	102.32	14,590,109,545.69	0.00%
BANK OF AMERICA N.A.	0.00	3,873,567,874.87	0.00%
BDO PRIVATE BANK, INC.	0.00	11,175,949,229.30	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	1,376,169,736.00	0.00%
DEUTSCHE BANK AG	0.00	30,069,031,538.27	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	13,000,000.00	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	1,281,070,741.84	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	670,433,046.60	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	22,871,361,751.62	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	10,494,533,264.19	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	43,859,245,146.42	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	1,210,302,000.00	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	14,185,200,726.43	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	35,211,664,550.48	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	1,032,555,520.00	0.00%
Grand Total	139,247,084,946.46	7,538,711,596,654.45	1.85%

There are seven Philippine Banks with a Gross NPL Ratio greater than 25.16% of Total Loan Portfolio (TLP).  These are as follows:

1. Microfinance Maximum Savings Bank (73.04% of TLP)
2. Philippine Star Development Bank, Inc. (50.77% of TLP)
3. Philippine Postal Savings Bank Inc. (42.44% of TLP)
4. World Partners Bank (33.88% of TLP)
5. Legazpi Savings Bank Inc. (32.43% of TLP)
6. Malasiqui Progressive SLB, Inc. (29.17% of TLP)
7. Northpoint Development Bank, Inc. (25.16% 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 8.97% of Stockholders Equity as of March 31, 2017.

Philippine Banking System
NPL as % of SE
March 31, 2017
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
PHIL POSTAL SAVINGS BANK INC	2,526,517,915	954,200,833	264.78%
WORLD PARTNERS BANK (A THRIFT BANK)	112,362,449	42,964,068	261.53%
LUZON DEVELOPMENT BANK	620,878,346	345,425,449	179.74%
ENTERPRISE BANK INC (A THRIFT BANK)	252,043,502	277,185,285	90.93%
EQUICOM SAVINGS BANK INC	646,533,823	742,357,199	87.09%
LEGAZPI SAVINGS BANK INC	445,995,447	518,168,423	86.07%
MARITIME SAVINGS BANK CORPORATION	24,499,154	36,899,584	66.39%
MALAYAN BANK SAVINGS AND MORT BANK INC	565,547,650	1,021,229,750	55.38%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	980,710,424	1,922,167,224	51.02%
CHINA BANK SAVINGS INC	4,410,355,252	9,163,202,512	48.13%
PHILIPPINE VETERANS BANK	1,875,995,022	4,046,296,276	46.36%
UCPB SAVINGS BANK	1,254,581,397	2,819,058,998	44.50%
THE PALAWAN BANK (PALAWAN DB) INC	16,672,401	39,837,931	41.85%
RCBC SAVINGS BANK INC	4,431,477,476	10,695,425,583	41.43%
PAMPANGA DEVELOPMENT BANK	55,028,244	135,300,586	40.67%
METRO CEBU PUBLIC SAVINGS BANK	24,372,081	61,356,496	39.72%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	942,498,137	2,562,739,122	36.78%
UNITED COCONUT PLANTERS BANK	6,385,518,031	17,451,124,245	36.59%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	168,397,258	462,780,457	36.39%
BATAAN DEVELOPMENT BANK	27,407,967	77,568,284	35.33%
BANK OF MAKATI (A SAVINGS BANK) INC	2,272,945,791	6,556,445,020	34.67%
CITYSTATE SAVINGS BANK INC	221,868,255	692,872,699	32.02%
STANDARD CHARTERED BANK	2,124,976,633	6,667,508,846	31.87%
NORTHPOINT DEV'T BANK INC	99,959,947	344,690,780	29.00%
BPI FAMILY SAVINGS BANK INC	7,729,608,998	26,770,809,994	28.87%
1ST VALLEY BANK INC A DEVELOPMENT BANK	428,729,538	1,488,039,795	28.81%
PHIL SAVINGS BANK	4,666,176,344	19,291,936,376	24.19%
BPI DIRECT BANKO INC A SAVINGS BANK	429,252,062	1,808,195,890	23.74%
PRODUCERS SAVINGS BANK CORPORATION	386,138,239	1,644,599,364	23.48%
EAST WEST BANKING CORP	8,291,599,643	35,333,154,415	23.47%
VILLAGE BANK INC (A THRIFT BANK)	19,616,446	84,544,831	23.20%
PHIL BANK OF COMMUNICATIONS	2,279,691,946	10,278,350,767	22.18%
MALASIQUI PROGRESSIVE SLB, INC	11,106,429	52,213,426	21.27%
HIYAS BANKING CORPORATION	34,360,654	162,196,397	21.18%
WEALTH DEVELOPMENT BANK CORPORATION	292,932,365	1,428,158,118	20.51%
OPTIMUM DEVELOPMENT BANK INC	174,457,924	862,100,904	20.24%
LIFE SAVINGS BANK INC	12,898,717	66,685,538	19.34%
FARMERS SAVINGS & LOAN BANK INC	22,411,351	123,861,509	18.09%
BUSINESS AND CONSUMERS BANK (A DB)	14,191,496	87,093,685	16.29%
CITY SAVINGS BANK INC	1,760,688,974	11,258,212,430	15.64%
PHIL STAR DEVELOPMENT BANK INC	13,667,598	95,600,563	14.30%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,387,192,467	9,865,174,936	14.06%
MAYBANK PHILIPPINES INCORPORATED	1,661,195,996	11,942,769,431	13.91%
FIRST CONSOLIDATED BANK INC (A PDB)	525,049,638	3,921,398,077	13.39%
UNION BANK OF THE PHILS	7,993,445,460	62,091,195,753	12.87%
ASIA UNITED BANK CORPORATION	2,937,364,441	24,339,526,210	12.07%
CENTURY SAVINGS BANK CORPORATION	117,161,922	977,594,203	11.98%
CORDILLERA SAVINGS BANK INC	16,446,654	137,922,232	11.92%
DEVELOPMENT BANK OF THE PHIL	5,464,419,479	45,934,092,719	11.90%
BANK OF COMMERCE	1,799,079,182	15,153,876,740	11.87%
YUANTA SAVINGS BANK PHILIPPINES INC	110,104,219	984,463,917	11.18%
UNIVERSITY SAVINGS BANK INC	45,003,866	413,430,546	10.89%
SUN SAVINGS BANK INC	18,959,810	186,900,409	10.14%
ANZ BANKING GROUP LTD	404,087,064	4,104,226,807	9.85%
LEMERY SAVINGS & LOAN BANK, INC.	7,700,250	78,452,926	9.82%
LAND BANK OF THE PHILIPPINES	8,258,481,214	88,633,984,423	9.32%
PHIL NATIONAL BANK	9,094,274,085	102,462,349,335	8.88%
PNB SAVINGS BANK	1,015,744,779	11,591,387,230	8.76%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	36,229,904	450,501,970	8.04%
BANK OF CHINA LIMITED-MANILA BRANCH	188,969,214	2,441,975,319	7.74%
CARD SME BANK INC A THRIFT BANK	55,309,327	730,971,718	7.57%
INTER-ASIA DEVELOPMENT BANK	4,613,154	63,960,231	7.21%
DUMAGUETE CITY DEV BANK INC	17,886,472	262,559,614	6.81%
CHINA BANKING CORP	3,614,348,812	59,031,464,070	6.12%
CITIBANK, N.A.	850,812,714	14,095,242,099	6.04%
BDO UNIBANK INC	16,529,874,745	281,630,888,489	5.87%
ROBINSONS BANK CORPORATION	683,406,977	12,115,260,787	5.64%
HONGKONG & SHANGHAI BANKING CORP	746,769,211	13,344,344,651	5.60%
CTBC BANK (PHILIPPINES) CORP	357,499,065	6,943,609,350	5.15%
BANK OF THE PHIL ISLANDS	8,425,699,431	167,104,837,324	5.04%
PHIL TRUST COMPANY	1,138,050,603	24,035,572,042	4.73%
RIZAL COMM'L BANKING CORP	2,570,930,099	63,296,711,382	4.06%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	26,305,414	654,099,419	4.02%
BANK ONE SAVINGS AND TRUST CORP.	23,096,226	580,064,634	3.98%
BATAAN SAVINGS AND LOAN BANK	1,635,781	57,924,600	2.82%
MERCHANTS SAVINGS & LOAN ASSN INC	17,112,937	622,416,521	2.75%
SECURITY BANK CORP	2,209,369,283	98,491,544,960	2.24%
METROPOLITAN BANK & TCO	3,755,149,756	189,844,343,707	1.98%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	5,387,619	286,499,779	1.88%
KEB HANA BANK - MANILA BRANCH	28,066,202	1,587,936,331	1.77%
QUEZON COCONUT BANK INC (A THRIFT BANK)	764,047	59,014,544	1.29%
BANGKOK BANK PUBLIC CO LTD	37,877,891	3,098,933,163	1.22%
ING BANK N.V.	102	2,502,824,099	0.00%
BANK OF AMERICA N.A.	0	2,096,035,697	0.00%
BDO PRIVATE BANK, INC.	0	5,410,232,810	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0	2,130,401,781	0.00%
DEUTSCHE BANK AG	0	2,257,001,852	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0	2,031,188,854	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0	2,222,941,067	0.00%
ISLA BANK(A THRIFT BANK) INC	0	667,526,085	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0	1,318,053,766	0.00%
MEGA INT'L COMM'L BANK CO LTD	0	1,861,262,054	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0	5,574,888,253	0.00%
SHINHAN BANK - MANILA BRANCH	0	2,201,303,657	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0	13,001,887,788	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0	4,580,114,852	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0	2,412,646,569	0.00%
MICROFINANCE MAXIMUM SB INC	11,538,109	-10,270,100	-112.35%
Grand Total	139,247,084,946	1,552,380,021,338	8.97%

Of the 98 banks in this list, twenty-three banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of March 31, 2017.  These banks are as follows:

1. Philippine Postal Savings Bank Inc (264.78% of SE)
2. World Partners Bank (261.53% of SE)
3. Luzon Development Bank (179.74% of SE)
4. Enterprise Bank Inc (90.93% of SE)
5. Equicom Savings Bank Inc. (87.09% of SE)
6. Legazpi Savings Bank Inc (86.07% of SE)
7. Maritime Savings Bank Corporation (66.39% of SE)
8. Malayan Bank Savings and Mortgage Bank Inc (55.38% of SE)
9. Philippine Resources Savings Banking Corporation (51.02% of SE)
10. China Bank Savings Inc (48.13% of SE)
11. Philippine Veterans Bank (46.36%of SE)
12. UCPB Savings Bank (44.50% of SE)
13. The Palawan Bank (41.85% of SE)
14. RCBC Savings Bank Inc (41.43% of SE)
15. Pampanga Development Bank (40.67% of SE)
16. Metro Cebu Public Savings Bank (39.72% of SE)
17. Sterling Bank of Asia Inc (36.78% of SE)
18. United Coconut Planters Bank (36.59% of SE)
19. Penbank Inc. (36.39% of SE)
20. Bataan Development Bank (35.33% of SE)
21. Bank of Makati (34.67% of SE)
22. CityState Savings Bank (32.02% of SE)
23. Standard Chartered Bank (31.87% of SE)
24. Bataan Development Bank (35.77% of SE)

Another indicator of a bank's financial health is the level of DOSRI Loans (Loans made by the bank to related parties such as Directors, Officers, Stockholders, and Related Interests) in relation to a bank's Total Loan Portfolio.  Under current banking regulations, the limit on individual loans to DOSRI, of which 70% must be secured, should not exceed a bank's parent company's regulatory capital or 15% of the bank's parent company's total loan portfolio, whichever is lower.  These limits do not apply to loans secured by assets considered as non-risk as defined in the regulations.Therefore banks with significantly high DOSRI Loan to Total Loan Portfolio ratios may be bumping up or exceeding the limits of compliance with DOSRI regulations.

On an overall basis, the DOSRI Loans of Philippine Banks amounted to only 2.39% of their Total Loan Portfolio as of March 31, 2017.  Of the 98 banks, thirty-one banks reported having no DOSRI Loans.  Of the sixty-seven banks with DOSRI Loans, forty banks had DOSRI Loans that made up less than 1% of their Total Loan Portfolios.  However, three banks had DOSRI Loans that comprised more than 15% of their Total Loan Portfolios.  They are as follows:

1. Malasiqui Progressive SLB, Inc. (26.91% of TLP)
2. Development Bank of the Philippines (19.50% of TLP)
3. Queen City Development Bank (16.49% of TLP)

Philippine Banking System
DOSRI as % of TLP
March 31, 2017
	DOSRI	TLP	DOSRI/TLP
Bank	(In Php)	(In PHP)	(In %)
MALASIQUI PROGRESSIVE SLB, INC	10,245,912	38,077,734	26.91%
DEVELOPMENT BANK OF THE PHIL	45,257,816,989	232,096,886,469	19.50%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	273,539,175	1,658,852,723	16.49%
PAMPANGA DEVELOPMENT BANK	48,659,060	340,066,681	14.31%
UNIVERSITY SAVINGS BANK INC	71,048,934	548,941,615	12.94%
LIFE SAVINGS BANK INC	7,436,523	60,989,350	12.19%
LAND BANK OF THE PHILIPPINES	65,298,283,473	539,797,305,223	12.10%
DUMAGUETE CITY DEV BANK INC	55,507,885	523,323,609	10.61%
HIYAS BANKING CORPORATION	16,606,310	204,845,016	8.11%
INTER-ASIA DEVELOPMENT BANK	10,436,389	177,450,355	5.88%
EAST WEST BANKING CORP	11,138,403,344	192,179,528,732	5.80%
CENTURY SAVINGS BANK CORPORATION	27,013,792	511,508,770	5.28%
VILLAGE BANK INC (A THRIFT BANK)	21,545,100	442,314,584	4.87%
PHIL TRUST COMPANY	2,138,000,000	46,936,988,541	4.56%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	83,944,968	1,892,335,962	4.44%
BANK OF MAKATI (A SAVINGS BANK) INC	864,705,059	20,299,727,190	4.26%
CHINA BANKING CORP	8,841,728,940	321,093,535,440	2.75%
PHIL NATIONAL BANK	9,705,423,751	384,394,857,214	2.52%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,209,020,164	56,492,794,578	2.14%
LEMERY SAVINGS & LOAN BANK, INC.	2,103,818	105,207,477	2.00%
CORDILLERA SAVINGS BANK INC	3,524,419	178,461,063	1.97%
ROBINSONS BANK CORPORATION	785,300,481	39,848,707,668	1.97%
PHIL SAVINGS BANK	1,772,691,145	135,120,278,091	1.31%
BDO UNIBANK INC	19,018,682,797	1,515,526,852,845	1.25%
QUEZON COCONUT BANK INC (A THRIFT BANK)	675,054	56,483,916	1.20%
PRODUCERS SAVINGS BANK CORPORATION	86,726,734	7,734,811,170	1.12%
BANK OF AMERICA N.A.	40,359,368	3,873,567,875	1.04%
BANK OF THE PHIL ISLANDS	7,553,613,521	825,677,042,965	0.91%
THE PALAWAN BANK (PALAWAN DB) INC	2,192,447	252,731,187	0.87%
ENTERPRISE BANK INC (A THRIFT BANK)	13,257,996	1,595,578,064	0.83%
CITYSTATE SAVINGS BANK INC	17,031,223	2,329,661,782	0.73%
PHIL POSTAL SAVINGS BANK INC	39,378,590	5,952,990,857	0.66%
FARMERS SAVINGS & LOAN BANK INC	1,099,986	174,896,503	0.63%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	151,079,216	24,866,955,540	0.61%
HONGKONG & SHANGHAI BANKING CORP	313,984,231	64,103,366,885	0.49%
SECURITY BANK CORP	1,102,150,439	304,894,419,012	0.36%
ASIA UNITED BANK CORPORATION	280,598,184	101,281,084,698	0.28%
UNION BANK OF THE PHILS	484,998,803	194,584,015,705	0.25%
RIZAL COMM'L BANKING CORP	529,214,492	235,547,958,491	0.22%
LUZON DEVELOPMENT BANK	6,421,460	3,050,468,367	0.21%
METROPOLITAN BANK & TCO	1,928,839,867	929,386,375,490	0.21%
MARITIME SAVINGS BANK CORPORATION	220,000	109,497,336	0.20%
PHILIPPINE VETERANS BANK	28,782,299	15,728,250,985	0.18%
UNITED COCONUT PLANTERS BANK	243,300,545	137,433,358,525	0.18%
WEALTH DEVELOPMENT BANK CORPORATION	9,273,669	5,420,119,923	0.17%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	2,146,975	1,358,113,428	0.16%
JP MORGAN CHASE BANK NATIONAL ASSN.	35,671,980	22,871,361,752	0.16%
ISLA BANK(A THRIFT BANK) INC	1,004,151	670,433,047	0.15%
CTBC BANK (PHILIPPINES) CORP	36,793,351	26,184,578,428	0.14%
ANZ BANKING GROUP LTD	34,413,523	25,930,560,180	0.13%
FIRST CONSOLIDATED BANK INC (A PDB)	13,315,292	11,066,132,150	0.12%
YUANTA SAVINGS BANK PHILIPPINES INC	538,549	547,304,392	0.10%
CITY SAVINGS BANK INC	56,465,654	67,990,770,288	0.08%
1ST VALLEY BANK INC A DEVELOPMENT BANK	3,425,796	5,567,784,109	0.06%
PNB SAVINGS BANK	18,822,928	32,594,056,219	0.06%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,208,961	3,889,720,830	0.06%
CITIBANK, N.A.	93,900,504	192,932,389,730	0.05%
MAYBANK PHILIPPINES INCORPORATED	24,500,000	66,720,488,900	0.04%
PHIL BANK OF COMMUNICATIONS	15,284,113	42,941,852,188	0.04%
UCPB SAVINGS BANK	4,336,764	14,326,146,195	0.03%
LEGAZPI SAVINGS BANK INC	332,152	1,375,147,797	0.02%
BPI FAMILY SAVINGS BANK INC	42,619,269	214,342,598,121	0.02%
CHINA BANK SAVINGS INC	8,677,477	62,195,273,572	0.01%
KEB HANA BANK - MANILA BRANCH	477,600	4,545,236,743	0.01%
BANK OF COMMERCE	3,528,976	62,176,905,315	0.01%
BPI DIRECT BANKO INC A SAVINGS BANK	280,547	5,056,006,796	0.01%
RCBC SAVINGS BANK INC	2,180,356	74,478,345,026	0.00%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	0	389,794,596	0.00%
BANGKOK BANK PUBLIC CO LTD	0	8,823,692,690	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0	15,980,027,363	0.00%
BANK ONE SAVINGS AND TRUST CORP.	0	1,036,033,421	0.00%
BATAAN DEVELOPMENT BANK	0	145,642,670	0.00%
BATAAN SAVINGS AND LOAN BANK	0	12,697,263	0.00%
BDO PRIVATE BANK, INC.	0	11,175,949,229	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0	144,505,590	0.00%
CARD SME BANK INC A THRIFT BANK	0	2,677,386,930	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0	1,376,169,736	0.00%
DEUTSCHE BANK AG	0	30,069,031,538	0.00%
EQUICOM SAVINGS BANK INC	0	5,021,465,073	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0	13,000,000	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0	1,281,070,742	0.00%
ING BANK N.V.	0	14,590,109,546	0.00%
MEGA INT'L COMM'L BANK CO LTD	0	10,494,533,264	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0	738,696,466	0.00%
METRO CEBU PUBLIC SAVINGS BANK	0	112,723,783	0.00%
MICROFINANCE MAXIMUM SB INC	0	15,789,932	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0	43,859,245,146	0.00%
NORTHPOINT DEV'T BANK INC	0	397,327,582	0.00%
OPTIMUM DEVELOPMENT BANK INC	0	1,482,188,152	0.00%
PHIL STAR DEVELOPMENT BANK INC	0	26,922,008	0.00%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	0	9,209,618,418	0.00%
SHINHAN BANK - MANILA BRANCH	0	1,210,302,000	0.00%
STANDARD CHARTERED BANK	0	32,749,454,237	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0	14,185,200,726	0.00%
SUN SAVINGS BANK INC	0	632,510,495	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0	35,211,664,550	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0	1,032,555,520	0.00%
WORLD PARTNERS BANK (A THRIFT BANK)	0	331,610,576	0.00%
Grand Total	179,895,791,472	7,538,711,596,654	2.39%

DOSRI Rules indicate that, in the aggregate, DOSRI Loans should not exceed the total equity of the bank.  Therefore, banks with a significantly high DOSRI Loans as a percentage of Stockholders Equity may be approaching DOSRI Limits.  Generally speaking, the DOSRI Loans of Philippine Banks amounted to 11.59% of Stockholders Equity as of March 31, 2017. One bank has DOSRI Loans that exceeds 80% of its capital: Development Bank of the Philippines (98.53% of SE).

Philippine Banking System
DOSRI as % of Stockholders Equity
March 31, 2017
	DOSRI	SE	DOSRI/SE
Bank	(In Php)	(In PHP)	(In %)
DEVELOPMENT BANK OF THE PHIL	45,257,816,989	45,934,092,719	98.53%
LAND BANK OF THE PHILIPPINES	65,298,283,473	88,633,984,423	73.67%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	273,539,175	654,099,419	41.82%
PAMPANGA DEVELOPMENT BANK	48,659,060	135,300,586	35.96%
EAST WEST BANKING CORP	11,138,403,344	35,333,154,415	31.52%
VILLAGE BANK INC (A THRIFT BANK)	21,545,100	84,544,831	25.48%
DUMAGUETE CITY DEV BANK INC	55,507,885	262,559,614	21.14%
MALASIQUI PROGRESSIVE SLB, INC	10,245,912	52,213,426	19.62%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	83,944,968	462,780,457	18.14%
UNIVERSITY SAVINGS BANK INC	71,048,934	413,430,546	17.19%
INTER-ASIA DEVELOPMENT BANK	10,436,389	63,960,231	16.32%
CHINA BANKING CORP	8,841,728,940	59,031,464,070	14.98%
BANK OF MAKATI (A SAVINGS BANK) INC	864,705,059	6,556,445,020	13.19%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,209,020,164	9,865,174,936	12.26%
LIFE SAVINGS BANK INC	7,436,523	66,685,538	11.15%
HIYAS BANKING CORPORATION	16,606,310	162,196,397	10.24%
PHIL NATIONAL BANK	9,705,423,751	102,462,349,335	9.47%
PHIL SAVINGS BANK	1,772,691,145	19,291,936,376	9.19%
PHIL TRUST COMPANY	2,138,000,000	24,035,572,042	8.90%
BDO UNIBANK INC	19,018,682,797	281,630,888,489	6.75%
ROBINSONS BANK CORPORATION	785,300,481	12,115,260,787	6.48%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	151,079,216	2,562,739,122	5.90%
THE PALAWAN BANK (PALAWAN DB) INC	2,192,447	39,837,931	5.50%
PRODUCERS SAVINGS BANK CORPORATION	86,726,734	1,644,599,364	5.27%
ENTERPRISE BANK INC (A THRIFT BANK)	13,257,996	277,185,285	4.78%
BANK OF THE PHIL ISLANDS	7,553,613,521	167,104,837,324	4.52%
PHIL POSTAL SAVINGS BANK INC	39,378,590	954,200,833	4.13%
CENTURY SAVINGS BANK CORPORATION	27,013,792	977,594,203	2.76%
JP MORGAN CHASE BANK NATIONAL ASSN.	35,671,980	1,318,053,766	2.71%
LEMERY SAVINGS & LOAN BANK, INC.	2,103,818	78,452,926	2.68%
CORDILLERA SAVINGS BANK INC	3,524,419	137,922,232	2.56%
CITYSTATE SAVINGS BANK INC	17,031,223	692,872,699	2.46%
HONGKONG & SHANGHAI BANKING CORP	313,984,231	13,344,344,651	2.35%
BANK OF AMERICA N.A.	40,359,368	2,096,035,697	1.93%
LUZON DEVELOPMENT BANK	6,421,460	345,425,449	1.86%
UNITED COCONUT PLANTERS BANK	243,300,545	17,451,124,245	1.39%
ASIA UNITED BANK CORPORATION	280,598,184	24,339,526,210	1.15%
QUEZON COCONUT BANK INC (A THRIFT BANK)	675,054	59,014,544	1.14%
SECURITY BANK CORP	1,102,150,439	98,491,544,960	1.12%
METROPOLITAN BANK & TCO	1,928,839,867	189,844,343,707	1.02%
FARMERS SAVINGS & LOAN BANK INC	1,099,986	123,861,509	0.89%
ANZ BANKING GROUP LTD	34,413,523	4,104,226,807	0.84%
RIZAL COMM'L BANKING CORP	529,214,492	63,296,711,382	0.84%
UNION BANK OF THE PHILS	484,998,803	62,091,195,753	0.78%
PHILIPPINE VETERANS BANK	28,782,299	4,046,296,276	0.71%
CITIBANK, N.A.	93,900,504	14,095,242,099	0.67%
WEALTH DEVELOPMENT BANK CORPORATION	9,273,669	1,428,158,118	0.65%
MARITIME SAVINGS BANK CORPORATION	220,000	36,899,584	0.60%
CTBC BANK (PHILIPPINES) CORP	36,793,351	6,943,609,350	0.53%
CITY SAVINGS BANK INC	56,465,654	11,258,212,430	0.50%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	2,146,975	450,501,970	0.48%
FIRST CONSOLIDATED BANK INC (A PDB)	13,315,292	3,921,398,077	0.34%
1ST VALLEY BANK INC A DEVELOPMENT BANK	3,425,796	1,488,039,795	0.23%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,208,961	1,021,229,750	0.22%
MAYBANK PHILIPPINES INCORPORATED	24,500,000	11,942,769,431	0.21%
PNB SAVINGS BANK	18,822,928	11,591,387,230	0.16%
BPI FAMILY SAVINGS BANK INC	42,619,269	26,770,809,994	0.16%
UCPB SAVINGS BANK	4,336,764	2,819,058,998	0.15%
ISLA BANK(A THRIFT BANK) INC	1,004,151	667,526,085	0.15%
PHIL BANK OF COMMUNICATIONS	15,284,113	10,278,350,767	0.15%
CHINA BANK SAVINGS INC	8,677,477	9,163,202,512	0.09%
LEGAZPI SAVINGS BANK INC	332,152	518,168,423	0.06%
YUANTA SAVINGS BANK PHILIPPINES INC	538,549	984,463,917	0.05%
KEB HANA BANK - MANILA BRANCH	477,600	1,587,936,331	0.03%
BANK OF COMMERCE	3,528,976	15,153,876,740	0.02%
RCBC SAVINGS BANK INC	2,180,356	10,695,425,583	0.02%
BPI DIRECT BANKO INC A SAVINGS BANK	280,547	1,808,195,890	0.02%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	0	286,499,779	0.00%
BANGKOK BANK PUBLIC CO LTD	0	3,098,933,163	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0	2,441,975,319	0.00%
BANK ONE SAVINGS AND TRUST CORP.	0	580,064,634	0.00%
BATAAN DEVELOPMENT BANK	0	77,568,284	0.00%
BATAAN SAVINGS AND LOAN BANK	0	57,924,600	0.00%
BDO PRIVATE BANK, INC.	0	5,410,232,810	0.00%
BUSINESS AND CONSUMERS BANK (A DB)	0	87,093,685	0.00%
CARD SME BANK INC A THRIFT BANK	0	730,971,718	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0	2,130,401,781	0.00%
DEUTSCHE BANK AG	0	2,257,001,852	0.00%
EQUICOM SAVINGS BANK INC	0	742,357,199	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0	2,031,188,854	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0	2,222,941,067	0.00%
ING BANK N.V.	0	2,502,824,099	0.00%
MEGA INT'L COMM'L BANK CO LTD	0	1,861,262,054	0.00%
MERCHANTS SAVINGS & LOAN ASSN INC	0	622,416,521	0.00%
METRO CEBU PUBLIC SAVINGS BANK	0	61,356,496	0.00%
MICROFINANCE MAXIMUM SB INC	0	-10,270,100	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0	5,574,888,253	0.00%
NORTHPOINT DEV'T BANK INC	0	344,690,780	0.00%
OPTIMUM DEVELOPMENT BANK INC	0	862,100,904	0.00%
PHIL STAR DEVELOPMENT BANK INC	0	95,600,563	0.00%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	0	1,922,167,224	0.00%
SHINHAN BANK - MANILA BRANCH	0	2,201,303,657	0.00%
STANDARD CHARTERED BANK	0	6,667,508,846	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0	13,001,887,788	0.00%
SUN SAVINGS BANK INC	0	186,900,409	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0	4,580,114,852	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0	2,412,646,569	0.00%
WORLD PARTNERS BANK (A THRIFT BANK)	0	42,964,068	0.00%
Grand Total	179,895,791,472	1,552,380,021,338	11.59%

Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “substantially on the same terms as with other individuals and businesses of comparable risks".  (See Planters Development Bank Annual Report December 31, 2010). Loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:

1. Written off as soon as possible;
2. Refinanced or Restructured to become current (this requires Board of Directors Approval); or, are
3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 

As a result, Philippine Banks reported that Php 7.73 million, or 0.00% of its DOSRI Loans fell past due as of March 31, 2017.  Of the sixty-seven banks with DOSRI Loans, forty-nine banks had zero past due DOSRI Loans.  Not one bank had past-due DOSRI Loans exceeding 30% of their Total DOSRI Loan Portfolio as of March 31, 2017.

Philippine Banking System
DOSRI Past Due as % of DOSRI
March 31, 2017
	DOSRI Past Due	DOSRI	DOSRI Past Due/DOSRI
Bank	(In PHP)	(In PHP)	(In %)
FIRST CONSOLIDATED BANK INC (A PDB)	1,691,893	13,315,292	12.71%
LIFE SAVINGS BANK INC	784,753	7,436,523	10.55%
LEGAZPI SAVINGS BANK INC	25,656	332,152	7.72%
CHINA BANK SAVINGS INC	114,430	8,677,477	1.32%
PNB SAVINGS BANK	69,872	18,822,928	0.37%
UNITED COCONUT PLANTERS BANK	889,759	243,300,545	0.37%
BPI FAMILY SAVINGS BANK INC	105,984	42,619,269	0.25%
UCPB SAVINGS BANK	9,276	4,336,764	0.21%
PHIL BANK OF COMMUNICATIONS	22,438	15,284,113	0.15%
CITIBANK, N.A.	96,429	93,900,504	0.10%
RIZAL COMM'L BANKING CORP	380,963	529,214,492	0.07%
BANK OF THE PHIL ISLANDS	1,397,742	7,553,613,521	0.02%
BDO UNIBANK INC	1,262,187	19,018,682,797	0.01%
PHIL NATIONAL BANK	464,008	9,705,423,751	0.00%
EAST WEST BANKING CORP	266,677	11,138,403,344	0.00%
CHINA BANKING CORP	139,940	8,841,728,940	0.00%
PHIL SAVINGS BANK	11,894	1,772,691,145	0.00%
MALAYAN BANK SAVINGS AND MORT BANK INC	8	2,208,961	0.00%
1ST VALLEY BANK INC A DEVELOPMENT BANK	0	3,425,796	0.00%
ANZ BANKING GROUP LTD	0	34,413,523	0.00%
ASIA UNITED BANK CORPORATION	0	280,598,184	0.00%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	0	2,146,975	0.00%
BANK OF AMERICA N.A.	0	40,359,368	0.00%
BANK OF COMMERCE	0	3,528,976	0.00%
BANK OF MAKATI (A SAVINGS BANK) INC	0	864,705,059	0.00%
BPI DIRECT BANKO INC A SAVINGS BANK	0	280,547	0.00%
CENTURY SAVINGS BANK CORPORATION	0	27,013,792	0.00%
CITY SAVINGS BANK INC	0	56,465,654	0.00%
CITYSTATE SAVINGS BANK INC	0	17,031,223	0.00%
CORDILLERA SAVINGS BANK INC	0	3,524,419	0.00%
CTBC BANK (PHILIPPINES) CORP	0	36,793,351	0.00%
DEVELOPMENT BANK OF THE PHIL	0	45,257,816,989	0.00%
DUMAGUETE CITY DEV BANK INC	0	55,507,885	0.00%
ENTERPRISE BANK INC (A THRIFT BANK)	0	13,257,996	0.00%
FARMERS SAVINGS & LOAN BANK INC	0	1,099,986	0.00%
HIYAS BANKING CORPORATION	0	16,606,310	0.00%
HONGKONG & SHANGHAI BANKING CORP	0	313,984,231	0.00%
INTER-ASIA DEVELOPMENT BANK	0	10,436,389	0.00%
ISLA BANK(A THRIFT BANK) INC	0	1,004,151	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0	35,671,980	0.00%
KEB HANA BANK - MANILA BRANCH	0	477,600	0.00%
LAND BANK OF THE PHILIPPINES	0	65,298,283,473	0.00%
LEMERY SAVINGS & LOAN BANK, INC.	0	2,103,818	0.00%
LUZON DEVELOPMENT BANK	0	6,421,460	0.00%
MALASIQUI PROGRESSIVE SLB, INC	0	10,245,912	0.00%
MARITIME SAVINGS BANK CORPORATION	0	220,000	0.00%
MAYBANK PHILIPPINES INCORPORATED	0	24,500,000	0.00%
METROPOLITAN BANK & TCO	0	1,928,839,867	0.00%
PAMPANGA DEVELOPMENT BANK	0	48,659,060	0.00%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	0	83,944,968	0.00%
PHIL POSTAL SAVINGS BANK INC	0	39,378,590	0.00%
PHIL TRUST COMPANY	0	2,138,000,000	0.00%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	0	1,209,020,164	0.00%
PHILIPPINE VETERANS BANK	0	28,782,299	0.00%
PRODUCERS SAVINGS BANK CORPORATION	0	86,726,734	0.00%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	0	273,539,175	0.00%
QUEZON COCONUT BANK INC (A THRIFT BANK)	0	675,054	0.00%
RCBC SAVINGS BANK INC	0	2,180,356	0.00%
ROBINSONS BANK CORPORATION	0	785,300,481	0.00%
SECURITY BANK CORP	0	1,102,150,439	0.00%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	0	151,079,216	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	0	2,192,447	0.00%
UNION BANK OF THE PHILS	0	484,998,803	0.00%
UNIVERSITY SAVINGS BANK INC	0	71,048,934	0.00%
VILLAGE BANK INC (A THRIFT BANK)	0	21,545,100	0.00%
WEALTH DEVELOPMENT BANK CORPORATION	0	9,273,669	0.00%
YUANTA SAVINGS BANK PHILIPPINES INC	0	538,549	0.00%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	0	0	NA
BANGKOK BANK PUBLIC CO LTD	0	0	NA
BANK OF CHINA LIMITED-MANILA BRANCH	0	0	NA
BANK ONE SAVINGS AND TRUST CORP.	0	0	NA
BATAAN DEVELOPMENT BANK	0	0	NA
BATAAN SAVINGS AND LOAN BANK	0	0	NA
BDO PRIVATE BANK, INC.	0	0	NA
BUSINESS AND CONSUMERS BANK (A DB)	0	0	NA
CARD SME BANK INC A THRIFT BANK	0	0	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0	0	NA
DEUTSCHE BANK AG	0	0	NA
EQUICOM SAVINGS BANK INC	0	0	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0	0	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0	0	NA
ING BANK N.V.	0	0	NA
MEGA INT'L COMM'L BANK CO LTD	0	0	NA
MERCHANTS SAVINGS & LOAN ASSN INC	0	0	NA
METRO CEBU PUBLIC SAVINGS BANK	0	0	NA
MICROFINANCE MAXIMUM SB INC	0	0	NA
MIZUHO BANK LTD - MANILA BRANCH	0	0	NA
NORTHPOINT DEV'T BANK INC	0	0	NA
OPTIMUM DEVELOPMENT BANK INC	0	0	NA
PHIL STAR DEVELOPMENT BANK INC	0	0	NA
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	0	0	NA
SHINHAN BANK - MANILA BRANCH	0	0	NA
STANDARD CHARTERED BANK	0	0	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0	0	NA
SUN SAVINGS BANK INC	0	0	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0	0	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0	0	NA
WORLD PARTNERS BANK (A THRIFT BANK)	0	0	NA
Grand Total	7,733,909	179,895,791,472	0.00%

Source: www.bsp.gov.ph