The Top Distressed Philippine Banks as of September 30, 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 September 30, 2017.  It updates a previous blog post: "The Top Distressed Philippine Banks as of June 30, 2017".

 

 

 

 

To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Deteriorate Slightly in the 3rd Qtr. of 2017"

The list of Philippine Banks classified as distressed as of September 30, 2017 are as follows:

 

 

1. Bank of China Limited - Manila Branch (Distressed Ratio of 513.85%)
2.  United Coconut Planters Bank (Distressed Ratio of 395.48%)
3. Inter-Asia Development Bank (Distressed Ratio of 387.97%)
4. Village Bank Inc (Distressed Ratio of 276.06%)
5. Philippine Postal Savings Bank Inc (Distressed Ratio of 234.61%)
6. Philippine Resources Savings Banking Corporation (Distressed Ratio of 171.47%)
7.  Malayan Bank Savings and Mortgage Bank Inc (Distressed Ratio of 168.30%)
8. Luzon Development Bank (Distressed Ratio of 159.96%)
9. Yuanta Savings Bank Philippines (Distressed Ratio of 138.72%)
10. China Bank Savings Inc (Distressed Ratio of 126.64%)
11. World Partners Bank (Distressed Ratio of 124.67%)
12. Enterprise Bank Inc (Distressed Ratio of 123.75%)
13. Bataan Development Bank (Distressed Ratio of 107.33%)
14. Equicom Savings Bank (Distressed Ratio of 106.57%)

 

 

 
 

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 September 30, 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 Deteriorate Slightly in the 3rd 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 5.10 billion or 0.78% from June 30, 2017 to September 30, 2017.  This increase was partially offset by the increase of their Total Capital Cushion of Php 2.91 billion or 0.17% during the same period. As a result, the Ratio of Total Distressed Assets to Total Capital Cushion of Philippine Commercial Banks increased by a marginal 0.19%, from 38.67% as of June 30, 2017 to 38.85% as of September 30, 2017. On a year on year basis, the Distressed Asset Ratio has dropped 3.38 percentage points from 42.23% as of September 30, 2017 to just 38.85% as of September 30, 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. Bank of America N.A. (65.34% decrease)
2. ING Bank N.V. (64.24% decrease)
3. Deutsche Bank AG (63.60% decrease)
4. Business and Consumers Bank (42.55% decrease)

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

1. The Bank of Tokyo-Mitsubishi UFJ Ltd (207.37% increase)
2. KEB Hana - Manila Brank (164.46% increase)
3. Village Bank Inc (51.40% increase)
4. Malasiqui Progressive Savings & Loan Bank (44.40% increase)
5. Lemery Savings & Loan Bank, Inc. (44.19% increase)
6. Security Bank Corporation (37.46% increase)
7. Robinsons Bank Corporation (30.24% increase)
8. PNB Savings Bank (26.59% increase)
9. United Coconut Planters Bank (26.57% increase)

Distressed Banks

The list of Philippine Banks classified as distressed as of September 30, 2017 are as follows:

1. Bank of China Limited - Manila Branch (Distressed Ratio of 513.85%)
2.  United Coconut Planters Bank (Distressed Ratio of 395.48%)
3. Inter-Asia Development Bank (Distressed Ratio of 387.97%)
4. Village Bank Inc (Distressed Ratio of 276.06%)
5. Philippine Postal Savings Bank Inc (Distressed Ratio of 234.61%)
6. Philippine Resources Savings Banking Corporation (Distressed Ratio of 171.47%)
7.  Malayan Bank Savings and Mortgage Bank Inc (Distressed Ratio of 168.30%)
8. Luzon Development Bank (Distressed Ratio of 159.96%)
9. Yuanta Savings Bank Philippines (Distressed Ratio of 138.72%)
10. China Bank Savings Inc (Distressed Ratio of 126.64%)
11. World Partners Bank (Distressed Ratio of 124.67%)
12. Enterprise Bank Inc (Distressed Ratio of 123.75%)
13. Bataan Development Bank (Distressed Ratio of 107.33%)
14. Equicom Savings Bank (Distressed Ratio of 106.57%)

As a group, the distressed banks showed a significant increase in their Total Distressed Assets/Total Capital Cushion Ratios.  This ratio now stands at 247.78% as of September 30, 2017, up from 204.52% as of June 30, 2017.  

Arrivals

1. Equicom Savings Bank entered the Distressed Banks list with a Distressed Ratio of 106.57% as of September 30, 2017 from a Distressed Ratio of just 99.37% as of June 30, 2017.

Departures

1. Philippine Veterans Bank left the Distressed Banks list with a Distressed Ratio of 96.33% as of September 30, 2017 from a Distressed Ratio of 101.56% as of June 30, 2017.
2. Deutsche Bank AG left the Distressed Banks list with a Distressed Ratio of 36.68% as of September 30, 2017 from a Distressed Ratio of 100.78% as of June 30, 2017.

 

Philippine Banking System
Total Distressed Assets/ Total Capital Cushion
June 30, 2017 to September 30, 2017
In %
Bank	September 30, 2017	June 30, 2017	Variance	% Variance
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	8.76%	2.85%	5.91%	207.37%
KEB HANA BANK - MANILA BRANCH	27.57%	10.43%	17.15%	164.46%
VILLAGE BANK INC (A THRIFT BANK)	276.06%	182.34%	93.72%	51.40%
MALASIQUI PROGRESSIVE SLB, INC	32.42%	22.45%	9.97%	44.40%
LEMERY SAVINGS & LOAN BANK, INC.	22.15%	15.36%	6.79%	44.19%
SECURITY BANK CORP	19.13%	13.92%	5.21%	37.46%
ROBINSONS BANK CORPORATION	83.97%	64.47%	19.50%	30.24%
PNB SAVINGS BANK	20.69%	16.34%	4.34%	26.59%
UNITED COCONUT PLANTERS BANK	395.48%	312.46%	83.02%	26.57%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.56%	0.46%	0.10%	21.95%
FARMERS SAVINGS & LOAN BANK INC	35.52%	29.39%	6.13%	20.84%
CTBC BANK (PHILIPPINES) CORP	23.06%	19.15%	3.91%	20.44%
ISLA BANK(A THRIFT BANK) INC	4.59%	3.88%	0.71%	18.27%
BATAAN SAVINGS AND LOAN BANK	4.06%	3.47%	0.59%	16.95%
PHIL NATIONAL BANK	60.85%	54.71%	6.14%	11.22%
MARITIME SAVINGS BANK CORPORATION	86.34%	78.00%	8.33%	10.68%
PACIFIC ACE SAVINGS BANK INC	14.58%	13.34%	1.24%	9.27%
SUN SAVINGS BANK INC	27.71%	25.40%	2.30%	9.06%
MAYBANK PHILIPPINES INCORPORATED	78.78%	72.52%	6.26%	8.64%
SHINHAN BANK - MANILA BRANCH	1.47%	1.35%	0.11%	8.51%
LEGAZPI SAVINGS BANK INC	98.08%	90.51%	7.57%	8.36%
MERCHANTS SAVINGS & LOAN ASSN INC	7.30%	6.77%	0.53%	7.84%
RIZAL COMM'L BANKING CORP	27.65%	25.64%	2.01%	7.82%
EQUICOM SAVINGS BANK INC	106.57%	99.37%	7.20%	7.25%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	57.70%	53.82%	3.87%	7.20%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.51%	0.48%	0.03%	6.98%
ALLBANK (A THRIFT BANK) INC	29.67%	27.77%	1.90%	6.86%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.33%	0.31%	0.02%	6.74%
1ST VALLEY BANK INC A DEVELOPMENT BANK	39.04%	36.70%	2.33%	6.36%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	68.19%	64.40%	3.78%	5.88%
FIRST CONSOLIDATED BANK INC (A PDB)	32.10%	30.35%	1.74%	5.75%
BDO UNIBANK INC	26.15%	24.83%	1.32%	5.32%
DUMAGUETE CITY DEV BANK INC	56.65%	53.84%	2.81%	5.21%
PHIL SAVINGS BANK	79.81%	75.88%	3.93%	5.17%
MALAYAN BANK SAVINGS AND MORT BANK INC	168.30%	160.21%	8.09%	5.05%
YUANTA SAVINGS BANK PHILIPPINES INC	138.72%	132.58%	6.14%	4.63%
CHINA BANKING CORP	25.15%	24.24%	0.92%	3.79%
CORDILLERA SAVINGS BANK INC	44.09%	42.58%	1.51%	3.54%
NORTHPOINT DEV'T BANK INC	45.19%	43.65%	1.53%	3.51%
CHINA BANK SAVINGS INC	126.64%	122.82%	3.82%	3.11%
CARD SME BANK INC A THRIFT BANK	30.62%	29.74%	0.89%	2.98%
HIYAS BANKING CORPORATION	37.16%	36.22%	0.94%	2.60%
UNIVERSITY SAVINGS BANK INC	34.97%	34.18%	0.79%	2.31%
MEGA INT'L COMM'L BANK CO LTD	1.29%	1.27%	0.02%	1.92%
PHIL STAR DEVELOPMENT BANK INC	26.95%	26.55%	0.40%	1.51%
BPI FAMILY SAVINGS BANK INC	48.34%	47.66%	0.68%	1.43%
BANK OF CHINA LIMITED-MANILA BRANCH	513.85%	506.89%	6.95%	1.37%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	6.32%	6.25%	0.07%	1.16%
PHIL TRUST COMPANY	39.64%	39.32%	0.32%	0.81%
STANDARD CHARTERED BANK	54.65%	54.41%	0.24%	0.44%
RCBC SAVINGS BANK INC	72.57%	72.52%	0.04%	0.06%
PHIL POSTAL SAVINGS BANK INC	234.61%	234.61%	0.00%	0.00%
PRODUCERS SAVINGS BANK CORPORATION	52.61%	52.61%	0.00%	0.00%
THE PALAWAN BANK (PALAWAN DB) INC	68.93%	68.93%	0.00%	0.00%
WORLD PARTNERS BANK (A THRIFT BANK)	124.67%	124.67%	0.00%	0.00%
LAND BANK OF THE PHILIPPINES	34.32%	34.36%	-0.05%	-0.13%
BANGKOK BANK PUBLIC CO LTD	4.00%	4.05%	-0.05%	-1.19%
CITIBANK, N.A.	51.24%	52.00%	-0.76%	-1.46%
BANK OF MAKATI (A SAVINGS BANK) INC	51.01%	51.83%	-0.82%	-1.58%
INTER-ASIA DEVELOPMENT BANK	387.97%	394.27%	-6.30%	-1.60%
BANK ONE SAVINGS AND TRUST CORP.	44.09%	44.85%	-0.76%	-1.69%
WEALTH DEVELOPMENT BANK CORPORATION	37.62%	38.29%	-0.67%	-1.75%
EAST WEST BANKING CORP	70.47%	71.78%	-1.31%	-1.82%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	50.83%	51.93%	-1.10%	-2.12%
CENTURY SAVINGS BANK CORPORATION	16.00%	16.36%	-0.36%	-2.17%
BATAAN DEVELOPMENT BANK	107.33%	110.43%	-3.11%	-2.81%
HSBC SAVINGS BANK(PHILS) INC	9.81%	10.11%	-0.30%	-2.96%
BANK OF THE PHIL ISLANDS	25.08%	25.86%	-0.78%	-3.02%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	38.12%	39.35%	-1.23%	-3.13%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS BANK)	171.47%	177.06%	-5.58%	-3.15%
UNION BANK OF THE PHILS	56.68%	58.86%	-2.19%	-3.71%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.48%	0.50%	-0.02%	-3.94%
LUZON DEVELOPMENT BANK	159.96%	167.83%	-7.87%	-4.69%
UCPB SAVINGS BANK	76.06%	79.86%	-3.80%	-4.75%
PHILIPPINE VETERANS BANK	96.33%	101.56%	-5.22%	-5.14%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.68%	0.72%	-0.04%	-5.32%
LIFE SAVINGS BANK INC	23.54%	24.95%	-1.40%	-5.62%
BPI DIRECT BANKO INC A SAVINGS BANK	40.90%	43.35%	-2.44%	-5.63%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	34.48%	36.94%	-2.46%	-6.66%
QUEZON COCONUT BANK INC (A THRIFT BANK)	21.61%	23.23%	-1.61%	-6.95%
DEVELOPMENT BANK OF THE PHIL	40.28%	43.52%	-3.23%	-7.43%
ASIA UNITED BANK CORPORATION	36.18%	39.19%	-3.02%	-7.70%
METRO CEBU PUBLIC SAVINGS BANK	14.78%	16.01%	-1.24%	-7.73%
BANK OF COMMERCE	66.65%	72.61%	-5.96%	-8.21%
PAMPANGA DEVELOPMENT BANK	33.99%	37.31%	-3.32%	-8.89%
PHIL BANK OF COMMUNICATIONS	63.96%	71.09%	-7.13%	-10.03%
CITYSTATE SAVINGS BANK INC	46.65%	52.40%	-5.75%	-10.98%
CITY SAVINGS BANK INC	46.40%	53.80%	-7.40%	-13.75%
ENTERPRISE BANK INC (A THRIFT BANK)	123.75%	144.09%	-20.34%	-14.12%
HONGKONG & SHANGHAI BANKING CORP	23.29%	27.18%	-3.89%	-14.30%
METROPOLITAN BANK & TCO	27.06%	31.60%	-4.55%	-14.39%
MIZUHO BANK LTD - MANILA BRANCH	2.62%	3.07%	-0.45%	-14.78%
ANZ BANKING GROUP LTD	23.74%	28.66%	-4.92%	-17.16%
JP MORGAN CHASE BANK NATIONAL ASSN.	15.45%	19.92%	-4.47%	-22.42%
BDO PRIVATE BANK, INC.	36.95%	49.01%	-12.06%	-24.60%
BUSINESS AND CONSUMERS BANK (A DB)	12.13%	21.11%	-8.98%	-42.55%
DEUTSCHE BANK AG	36.68%	100.78%	-64.10%	-63.60%
ING BANK N.V.	9.74%	27.24%	-17.50%	-64.24%
BANK OF AMERICA N.A.	0.46%	1.33%	-0.87%	-65.34%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.47%	NA	NA	NA
Grand Total	38.85%	38.67%	0.19%	0.48%

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 June 30, 2017 and September 30, 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.

Overstated Capital of Philippine Banks as of September 30, 2017

On July 25, 2012, the Bangko Sentral ng Pilipinas (BSP) encouraged banks that continue to reflect unbooked losses or "deferred charges" on their balance sheets to charge those losses against retained earnings.  This implies that the BSP now considers that these banks have amassed so much in Stockholder's Equity (SE) and Retained Earnings (RE) that "they can now afford to absorb higher charges without impairing their capital and also without making their shareholders unhappy."

But can these banks do so? The answer is: yes but only for some banks.  As can be seen from the table below, six banks have Deferred Charges as of September 30, 2017:

1. Bataan Development Bank (Deferred Charges of 6.12% of SE)
2. City Savings Bank (Deferred Charges of 5.56% of SE)
3. China Bank Savings Inc (Deferred Charges of 1.68% of SE)
4. Bank of Commerce (Deferred Charges of 0.39% of SE)
5. Card SME Bank, Inc. (Deferred Charges of 0.17% of SE)
6. Wealth Development Bank Corporation (Deferred Charges of 0.06% of SE)

It must be noted that two of these banks were ranked as  distressed (highlighted in yellow) as of June 30, 2017:

1. China Bank Savings (Distressed Ratio of 122.82%)
2. Bataan Development Bank (Distressed Ratio of 110.43%)

For more information on distressed banks, please see the previous blog post: "The Top Distressed Philippine Banks as of June 30, 2017.



Retained Earnings

Only four banks have sufficient Retained Earnings (RE) to absorb their unbooked losses as of September 30, 2017:

1. Bataan Development Bank (30.31% of RE)
2. City Savings Bank (7.62% of RE)
3. Wealth Development Bank Corporation (5.58% of RE)
4. CARD SME Bank (1.67% of RE)

Two of the banks with  Deferred Charges have negative Retained Earnings.  As such, they do not have the capacity to absorb additional losses.

1. Bank of Commerce (Retained Earnings of - Php 614.71 million vs. Deferred Charges of Php 61.19 million).
2. China Bank Savings (Retained Earnings of - Php 1.36 billion vs. Deferred Charges of Php 151.56 million)

 
 

Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Stockholder's Equity
In Php
September 30, 2017
Bank	Type of Bank	Deferred Charges	Unbooked Losses	Total Deferred Charges	Stockholder's Equity	Adjusted SE	Impact on SE
BATAAN DEVELOPMENT BANK	Thrift	5,121,096.06	0.00	5,121,096.06	83,685,275.51	78,564,179.45	6.12%
CITY SAVINGS BANK	Thrift	707,115,154.38	0.00	707,115,154.38	12,706,877,725.77	11,999,762,571.39	5.56%
CHINA BANK SAVINGS INC	Thrift	151,559,537.11	0.00	151,559,537.11	9,020,020,772.21	8,868,461,235.10	1.68%
BANK OF COMMERCE	U/KB	61,185,676.94	0.00	61,185,676.94	15,611,461,237.37	15,550,275,560.43	0.39%
CARD SME BANK INC A THRIFT BANK	Thrift	1,506,470.61	0.00	1,506,470.61	877,516,443.55	876,009,972.94	0.17%
WEALTH DEVELOPMENT BANK CORPORATION	Thrift	855,268.23	0.00	855,268.23	1,474,494,842.00	1,473,639,573.77	0.06%
Grand Total		927,343,203.33	0.00	927,343,203.33	39,774,056,296.41	38,846,713,093.08	2.33%
Philippine Banking System
Deferred Charges Not Yet Written Down
Impact on Retained Earnings
In Php
September 30, 2017
Bank	Total Deferred Charges	RE	Adjusted RE	Impact on RE
BATAAN DEVELOPMENT BANK	5,121,096.06	16,897,248.93	11,776,152.87	30.31%
CITY SAVINGS BANK	707,115,154.38	9,277,095,921.61	8,569,980,767.23	7.62%
WEALTH DEVELOPMENT BANK CORPORATION	855,268.23	15,339,878.33	14,484,610.10	5.58%
CARD SME BANK INC A THRIFT BANK	1,506,470.61	89,948,415.40	88,441,944.79	1.67%
BANK OF COMMERCE	61,185,676.94	-614,714,285.87	-675,899,962.81	-9.95%
CHINA BANK SAVINGS INC	151,559,537.11	-1,363,405,443.59	-1,514,964,980.70	-11.12%
Grand Total	927,343,203.33	7,421,161,734.81	6,493,818,531.48	12.50%

The Financial Strength of Philippine Banks according to BSP: From Weakest to Strongest - As of September 30, 2017

A bank's Capital Adequacy Ratio is a measure of a bank's capital and financial strength. BSP requires Philippine banks to measure their capital adequacy in at least three defined ratios:

1. Total Capital Adequacy Ratio
2. Tier One Capital Adequacy Ratio
3. Common Tier One Adequacy Ratio.

For a more detailed understanding of these ratios, you can consult BSP's own implementation guidelines, Investopedia.com, or numerous past posts about this subject.

The basic idea behind these ratios is that the higher the ratio, the more solid the bank is in financial strength, the greater it's ability to absorb losses.  BSP's own minimum for most of these ratios is 6.00 but it generally recommends a minimum of 10.00, especially for large and more systemically important banks (those that are Too Big To Fail or TBTF for short).


Every quarter, several Philippine Banks do not meet these guidelines. As of September 30, 2017, the banks that failed to meet BSP's recommended minimum capital requirements are as follows:

TOTAL CAR:

1. Bataan Savings and Loan Bank (Total CAR of 0.00)
2. Merchants Savings & Loan Association Inc (Total CAR of 0.00)
3.  Philippine Postal Savings Bank Inc (Total CAR of 6.71)
4. United Coconut Planters Bank (Total CAR of 8.01)
5. The Palawan Bank (Total CAR of 9.34)

 

TIER ONE CAR

Nine banks reported Tier One CAR of 0.00 as of September 30, 2017.  Of those that did report Tier One CAR greater than 0.00, five have less than the BSP-recommended Tier One CARs of 10.00. These banks are:

1. Card SME Bank (Tier One CAR of 3.82)
2. Philippine Postal Savings Bank Inc (Tier One CAR of 6.37)
3. Sterling Bank of Asia Inc (Tier One CAR of 7.81)
4. United Coconut Planters Bank (Tier One CAR of 8.01)
5. The Palawan Bank (Tier One CAR of 9.44)

 

COMMON EQUITY TIER ONE CAR

The BSP's reporting guidelines on the Common Equity Tier One CAR (CET1) only took effect as of January 1, 2014.  Banks only started reporting this ratio in their Published Statements of Condition for June 30, 2014.  Fifty-one banks reported their CET1 Ratio as 0.00 for September 30, 2017.

However, of those banks that did report a CET1 Ratio other than 0.00, zero banks reported CET1 Ratios below BSP's recommended ratio.

The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Banks as of September 30, 2017 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):

Philippine Banking System
TOTAL CAR
September 30, 2017
Bank	Type of Bank	Total CAR
BATAAN SAVINGS AND LOAN BANK	Thrift Bank	0.00
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift Bank	0.00
PHIL POSTAL SAVINGS BANK INC	Thrift Bank	6.71
UNITED COCONUT PLANTERS BANK	U/KB	8.01
THE PALAWAN BANK (PALAWAN DB) INC	Thrift Bank	9.34
EQUICOM SAVINGS BANK INC	Thrift Bank	10.96
VILLAGE BANK INC (A THRIFT BANK)	Thrift Bank	11.01
LUZON DEVELOPMENT BANK	Thrift Bank	11.35
CHINA BANK SAVINGS INC	Thrift Bank	11.61
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift Bank	11.84
BANK OF THE PHIL ISLANDS	U/KB	11.93
PHIL NATIONAL BANK	U/KB	11.95
PHILIPPINE VETERANS BANK	U/KB	12.60
EAST WEST BANKING CORP	U/KB	12.61
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift Bank	12.82
LAND BANK OF THE  PHILIPPINES	U/KB	12.83
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift Bank	13.49
RCBC SAVINGS BANK INC	Thrift Bank	13.60
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	13.65
ASIA UNITED BANK CORPORATION	U/KB	14.03
PHIL SAVINGS BANK	Thrift Bank	14.19
MAYBANK PHILIPPINES INC	U/KB	14.20
MIZUHO BANK LTD - MANILA BRANCH	U/KB	14.24
BDO UNIBANK INC	U/KB	14.57
UNION BANK OF THE PHILS	U/KB	14.66
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift Bank	14.89
METROPOLITAN BANK & TRUST CO	U/KB	15.10
CHINA BANKING CORP	U/KB	15.20
RIZAL COMM'L BANKING CORP	U/KB	15.48
DEVELOPMENT BANK OF THE PHIL	U/KB	15.50
BANK OF CHINA LIMITED	U/KB	15.83
STANDARD CHARTERED BANK	U/KB	15.93
PHIL BANK OF COMMUNICATIONS	U/KB	16.06
UCPB SAVINGS BANK	Thrift Bank	16.18
PRODUCERS SAVINGS BANK CORPORATION	Thrift Bank	16.32
BPI FAMILY SAVINGS BANK INC	Thrift Bank	16.57
CITY SAVINGS BANK INC	Thrift Bank	16.58
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift Bank	16.94
ANZ BANKING GROUP LTD	U/KB	17.17
DEUTSCHE BANK AG	U/KB	17.32
BANGKO KABAYAN INC	Thrift Bank	17.57
CITIBANK, N.A.	U/KB	17.63
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift Bank	17.71
SECURITY BANK CORP	U/KB	17.90
FARMERS SAVINGS & LOAN BANK INC	Thrift Bank	18.10
BDO PRIVATE BANK, INC.	U/KB	18.23
BATAAN DEVELOPMENT BANK	Thrift Bank	18.25
KEB HANA BANK - MANILA BRANCH	U/KB	18.40
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift Bank	18.84
CTBC BANK (PHILIPPINES) CORP	U/KB	19.46
CARD SME BANK INC A THRIFT BANK	Thrift Bank	20.26
MEGA INT'L COMM'L BANK CO LTD	U/KB	20.36
HONGKONG & SHANGHAI BANKING CORP	U/KB	20.44
CITYSTATE SAVINGS BANK INC	Thrift Bank	20.59
BANK OF COMMERCE	U/KB	20.71
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift Bank	20.74
INTER-ASIA DEVELOPMENT BANK	Thrift Bank	21.25
HIYAS BANKING CORPORATION	Thrift Bank	21.56
ROBINSONS BANK CORPORATION	U/KB	21.59
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift Bank	22.39
MARITIME SAVINGS BANK CORPORATION	Thrift Bank	22.53
WEALTH DEVELOPMENT BANK CORPORATION	Thrift Bank	22.96
SUN SAVINGS BANK INC	Thrift Bank	23.62
BUSINESS AND CONSUMERS BANK (A DB)	Thrift Bank	25.71
PNB SAVINGS BANK	Thrift Bank	26.22
DUMAGUETE CITY DEV BANK INC	Thrift Bank	26.87
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	27.47
LEGAZPI SAVINGS BANK INC	Thrift Bank	28.23
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift Bank	28.80
UNIVERSITY SAVINGS BANK INC	Thrift Bank	29.47
LIFE SAVINGS BANK INC	Thrift Bank	30.11
BPI DIRECT BANKO INC	Thrift Bank	32.58
METRO CEBU PUBLIC SAVINGS BANK	Thrift Bank	33.59
PAMPANGA DEVELOPMENT BANK	Thrift Bank	33.91
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift Bank	33.92
LEMERY SAVINGS & LOAN BANK, INC.	Thrift Bank	34.94
HSBC SAVINGS BANK PHILIPPINES	Thrift Bank	36.38
BANGKOK BANK PUBLIC CO LTD	U/KB	37.68
CORDILLERA SAVINGS BANK INC	Thrift Bank	38.46
PHIL TRUST COMPANY	U/KB	41.12
MALASIQUI PROGRESSIVE SLB, INC	Thrift Bank	42.29
NORTHPOINT DEV'T BANK INC	Thrift Bank	42.83
BANK OF AMERICA N.A.	U/KB	44.87
PACIFIC ACE SAVINGS BANK INC	Thrift Bank	52.43
ALLBANK	Thrift Bank	56.11
YUANTA SAVINGS BANK PHILIPPINES INC	Thrift Bank	56.93
BANK ONE SAVINGS AND TRUST CORP.	Thrift Bank	58.91
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift Bank	59.28
PHIL STAR DEVELOPMENT BANK INC	Thrift Bank	62.25
CENTURY SAVINGS BANK CORPORATION	Thrift Bank	79.74
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	87.30
SHINHAN BANK - MANILA BRANCH	U/KB	91.29
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	U/KB	96.73
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	97.82
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	108.61
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	120.03
ISLA BANK(A THRIFT BANK) INC	Thrift Bank	129.62
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	172.88
FIRST COMMERCIAL BANK	U/KB	297.80
ING BANK N.V.	U/KB	NA
MICROFINANCE MAXIMUM SB INC	Thrift Bank	NA

Philippine Banking System
Tier One CAR
September 30, 2017
Bank	Type of Bank	Tier One CAR
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift Bank	0.00
BATAAN SAVINGS AND LOAN BANK	Thrift Bank	0.00
BUSINESS AND CONSUMERS BANK (A DB)	Thrift Bank	0.00
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift Bank	0.00
EQUICOM SAVINGS BANK INC	Thrift Bank	0.00
INTER-ASIA DEVELOPMENT BANK	Thrift Bank	0.00
MARITIME SAVINGS BANK CORPORATION	Thrift Bank	0.00
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift Bank	0.00
ALLBANK	Thrift Bank	0.00
CARD SME BANK INC A THRIFT BANK	Thrift Bank	3.82
PHIL POSTAL SAVINGS BANK INC	Thrift Bank	6.37
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift Bank	7.81
UNITED COCONUT PLANTERS BANK	U/KB	8.01
THE PALAWAN BANK (PALAWAN DB) INC	Thrift Bank	9.44
EAST WEST BANKING CORP	U/KB	10.38
LUZON DEVELOPMENT BANK	Thrift Bank	10.47
CHINA BANK SAVINGS INC	Thrift Bank	10.56
VILLAGE BANK INC (A THRIFT BANK)	Thrift Bank	10.64
ASIA UNITED BANK CORPORATION	U/KB	10.77
BANK OF THE PHIL ISLANDS	U/KB	11.02
PHIL NATIONAL BANK	U/KB	11.20
PHIL SAVINGS BANK	Thrift Bank	11.36
DEVELOPMENT BANK OF THE PHIL	U/KB	11.40
UNION BANK OF THE PHILS	U/KB	11.76
RIZAL COMM'L BANKING CORP	U/KB	11.78
LAND BANK OF THE  PHILIPPINES	U/KB	12.01
PHILIPPINE VETERANS BANK	U/KB	12.07
METROPOLITAN BANK & TRUST CO	U/KB	12.19
RCBC SAVINGS BANK INC	Thrift Bank	12.85
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	12.86
PHIL BANK OF COMMUNICATIONS	U/KB	13.07
BDO UNIBANK INC	U/KB	13.11
MAYBANK PHILIPPINES INC	U/KB	13.25
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift Bank	13.26
MIZUHO BANK LTD - MANILA BRANCH	U/KB	13.28
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift Bank	13.99
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift Bank	14.24
CHINA BANKING CORP	U/KB	14.40
UNIVERSITY SAVINGS BANK INC	Thrift Bank	14.73
BANK OF CHINA LIMITED	U/KB	15.24
UCPB SAVINGS BANK	Thrift Bank	15.38
STANDARD CHARTERED BANK	U/KB	15.46
SECURITY BANK CORP	U/KB	15.61
BPI FAMILY SAVINGS BANK INC	Thrift Bank	15.71
PRODUCERS SAVINGS BANK CORPORATION	Thrift Bank	15.81
CITY SAVINGS BANK INC	Thrift Bank	15.85
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift Bank	16.45
ANZ BANKING GROUP LTD	U/KB	16.65
DEUTSCHE BANK AG	U/KB	16.76
CITIBANK, N.A.	U/KB	16.91
BANGKO KABAYAN INC	Thrift Bank	17.05
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift Bank	17.71
KEB HANA BANK - MANILA BRANCH	U/KB	17.92
BDO PRIVATE BANK, INC.	U/KB	17.98
CTBC BANK (PHILIPPINES) CORP	U/KB	18.59
BATAAN DEVELOPMENT BANK	Thrift Bank	19.27
MEGA INT'L COMM'L BANK CO LTD	U/KB	19.41
HONGKONG & SHANGHAI BANKING CORP	U/KB	19.76
FARMERS SAVINGS & LOAN BANK INC	Thrift Bank	19.80
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift Bank	19.95
CITYSTATE SAVINGS BANK INC	Thrift Bank	19.97
BANK OF COMMERCE	U/KB	19.99
ROBINSONS BANK CORPORATION	U/KB	20.78
HIYAS BANKING CORPORATION	Thrift Bank	21.20
WEALTH DEVELOPMENT BANK CORPORATION	Thrift Bank	22.15
SUN SAVINGS BANK INC	Thrift Bank	22.75
PNB SAVINGS BANK	Thrift Bank	25.49
DUMAGUETE CITY DEV BANK INC	Thrift Bank	26.38
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	27.27
LEGAZPI SAVINGS BANK INC	Thrift Bank	27.52
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift Bank	27.91
LIFE SAVINGS BANK INC	Thrift Bank	29.93
BPI DIRECT BANKO INC	Thrift Bank	32.84
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift Bank	33.44
METRO CEBU PUBLIC SAVINGS BANK	Thrift Bank	33.52
LEMERY SAVINGS & LOAN BANK, INC.	Thrift Bank	34.53
HSBC SAVINGS BANK PHILIPPINES	Thrift Bank	35.67
BANGKOK BANK PUBLIC CO LTD	U/KB	36.70
CORDILLERA SAVINGS BANK INC	Thrift Bank	37.96
PHIL TRUST COMPANY	U/KB	40.78
MALASIQUI PROGRESSIVE SLB, INC	Thrift Bank	42.29
NORTHPOINT DEV'T BANK INC	Thrift Bank	42.42
BANK OF AMERICA N.A.	U/KB	44.35
YUANTA SAVINGS BANK PHILIPPINES INC	Thrift Bank	56.93
BANK ONE SAVINGS AND TRUST CORP.	Thrift Bank	58.30
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift Bank	58.49
PHIL STAR DEVELOPMENT BANK INC	Thrift Bank	62.15
PACIFIC ACE SAVINGS BANK INC	Thrift Bank	74.25
CENTURY SAVINGS BANK CORPORATION	Thrift Bank	78.81
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	86.33
SHINHAN BANK - MANILA BRANCH	U/KB	90.78
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	U/KB	96.73
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	97.36
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	107.87
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	119.32
ISLA BANK(A THRIFT BANK) INC	Thrift Bank	129.23
PAMPANGA DEVELOPMENT BANK	Thrift Bank	148.20
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	171.94
FIRST COMMERCIAL BANK	U/KB	297.46
ING BANK N.V.	U/KB	NA
MICROFINANCE MAXIMUM SB INC	Thrift Bank	NA

Philippine Banking System
Common Tier 1 Ratio
September 30, 2017
Bank	Type of Bank	Common Tier 1 Ratio
1ST VALLEY BANK INC A DEVELOPMENT BANK	Thrift Bank	0.00
ALLBANK	Thrift Bank	0.00
BANGKO KABAYAN INC	Thrift Bank	0.00
BANK OF AMERICA N.A.	U/KB	0.00
BANK OF CHINA LIMITED	U/KB	0.00
BANK OF MAKATI (A SAVINGS BANK) INC	Thrift Bank	0.00
BANK ONE SAVINGS AND TRUST CORP.	Thrift Bank	0.00
BATAAN DEVELOPMENT BANK	Thrift Bank	0.00
BATAAN SAVINGS AND LOAN BANK	Thrift Bank	0.00
BUSINESS AND CONSUMERS BANK (A DB)	Thrift Bank	0.00
CARD SME BANK INC A THRIFT BANK	Thrift Bank	0.00
CENTURY SAVINGS BANK CORPORATION	Thrift Bank	0.00
CITYSTATE SAVINGS BANK INC	Thrift Bank	0.00
CORDILLERA SAVINGS BANK INC	Thrift Bank	0.00
DUMAGUETE CITY DEV BANK INC	Thrift Bank	0.00
ENTERPRISE BANK INC (A THRIFT BANK)	Thrift Bank	0.00
EQUICOM SAVINGS BANK INC	Thrift Bank	0.00
FARMERS SAVINGS & LOAN BANK INC	Thrift Bank	0.00
FIRST CONSOLIDATED BANK INC (A PDB)	Thrift Bank	0.00
HIYAS BANKING CORPORATION	Thrift Bank	0.00
INTER-ASIA DEVELOPMENT BANK	Thrift Bank	0.00
ISLA BANK(A THRIFT BANK) INC	Thrift Bank	0.00
LEMERY SAVINGS & LOAN BANK, INC.	Thrift Bank	0.00
LIFE SAVINGS BANK INC	Thrift Bank	0.00
LUZON DEVELOPMENT BANK	Thrift Bank	0.00
MALASIQUI PROGRESSIVE SLB, INC	Thrift Bank	0.00
MALAYAN BANK SAVINGS AND MORT BANK INC	Thrift Bank	0.00
MARITIME SAVINGS BANK CORPORATION	Thrift Bank	0.00
METRO CEBU PUBLIC SAVINGS BANK	Thrift Bank	0.00
NORTHPOINT DEV'T BANK INC	Thrift Bank	0.00
PACIFIC ACE SAVINGS BANK INC	Thrift Bank	0.00
PAMPANGA DEVELOPMENT BANK	Thrift Bank	0.00
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	Thrift Bank	0.00
PHIL BANK OF COMMUNICATIONS	U/KB	0.00
PHIL POSTAL SAVINGS BANK INC	Thrift Bank	0.00
PHIL STAR DEVELOPMENT BANK INC	Thrift Bank	0.00
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	Thrift Bank	0.00
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	Thrift Bank	0.00
PRODUCERS SAVINGS BANK CORPORATION	Thrift Bank	0.00
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	Thrift Bank	0.00
QUEZON COCONUT BANK INC (A THRIFT BANK)	Thrift Bank	0.00
STERLING BANK OF ASIA INC (A SAVINGS BANK)	Thrift Bank	0.00
SUN SAVINGS BANK INC	Thrift Bank	0.00
THE PALAWAN BANK (PALAWAN DB) INC	Thrift Bank	0.00
UNITED COCONUT PLANTERS BANK	U/KB	0.00
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	U/KB	0.00
UNIVERSITY SAVINGS BANK INC	Thrift Bank	0.00
VILLAGE BANK INC (A THRIFT BANK)	Thrift Bank	0.00
WEALTH DEVELOPMENT BANK CORPORATION	Thrift Bank	0.00
WORLD PARTNERS BANK (A THRIFT BANK)	Thrift Bank	0.00
YUANTA SAVINGS BANK PHILIPPINES INC	Thrift Bank	0.00
EAST WEST BANKING CORP	U/KB	10.38
PHILIPPINE VETERANS BANK	U/KB	10.51
CHINA BANK SAVINGS INC	Thrift Bank	10.56
ASIA UNITED BANK CORPORATION	U/KB	10.77
BANK OF THE PHIL ISLANDS	U/KB	11.02
PHIL NATIONAL BANK	U/KB	11.20
PHIL SAVINGS BANK	Thrift Bank	11.36
DEVELOPMENT BANK OF THE PHIL	U/KB	11.40
UNION BANK OF THE PHILS	U/KB	11.76
RIZAL COMM'L BANKING CORP	U/KB	11.78
LAND BANK OF THE  PHILIPPINES	U/KB	12.01
METROPOLITAN BANK & TRUST CO	U/KB	12.19
BDO UNIBANK INC	U/KB	12.83
RCBC SAVINGS BANK INC	Thrift Bank	12.85
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	U/KB	12.86
MAYBANK PHILIPPINES INC	U/KB	13.25
MIZUHO BANK LTD - MANILA BRANCH	U/KB	13.28
BDO PRIVATE BANK, INC.	U/KB	13.74
CHINA BANKING CORP	U/KB	14.40
UCPB SAVINGS BANK	Thrift Bank	15.38
STANDARD CHARTERED BANK	U/KB	15.46
SECURITY BANK CORP	U/KB	15.61
BPI FAMILY SAVINGS BANK INC	Thrift Bank	15.71
CITY SAVINGS BANK INC	Thrift Bank	15.85
ANZ BANKING GROUP LTD	U/KB	16.65
DEUTSCHE BANK AG	U/KB	16.76
CITIBANK, N.A.	U/KB	16.91
KEB HANA BANK - MANILA BRANCH	U/KB	17.92
CTBC BANK (PHILIPPINES) CORP	U/KB	18.59
MEGA INT'L COMM'L BANK CO LTD	U/KB	19.41
HONGKONG & SHANGHAI BANKING CORP	U/KB	19.76
BANK OF COMMERCE	U/KB	19.99
ROBINSONS BANK CORPORATION	U/KB	20.78
PNB SAVINGS BANK	Thrift Bank	25.48
JP MORGAN CHASE BANK NATIONAL ASSN.	U/KB	27.27
LEGAZPI SAVINGS BANK INC	Thrift Bank	27.52
BPI DIRECT BANKO INC	Thrift Bank	32.84
HSBC SAVINGS BANK PHILIPPINES	Thrift Bank	35.67
BANGKOK BANK PUBLIC CO LTD	U/KB	36.70
PHIL TRUST COMPANY	U/KB	40.78
MERCHANTS SAVINGS & LOAN ASSN INC	Thrift Bank	46.53
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH	U/KB	86.33
SHINHAN BANK - MANILA BRANCH	U/KB	90.78
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	U/KB	96.73
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	U/KB	97.36
INDUSTRIAL BANK OF KOREA MANILA BRANCH	U/KB	107.87
CATHAY UNITED BANK CO LTD - MANILA BRANCH	U/KB	171.94
FIRST COMMERCIAL BANK	U/KB	297.46
ING BANK N.V.	U/KB	NA
MICROFINANCE MAXIMUM SB INC	Thrift Bank	NA

Source: www.bsp.gov.ph