Overseas Filipino Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of March 31, 2018

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 1st in Non-Performing Loans as % of Stockholder's Equity as of December 31, 2017 .


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

In the Philippine Banking Industry, Gross Non-Performing Loans stood at Php 146.70 billion as of March 31, 2018 - approximately 1.68% of the Philippine Banking Industry's Total Loan Portfolio of Php 8.89 trillion.

 

Philippine Banking System
NPL as % of TLP
March 31, 2018
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
MALASIQUI PROGRESSIVE SLB, INC	18,193,736.59	37,649,168.25	48.32%
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,372,036,167.05	4,997,588,647.97	47.46%
PHIL STAR DEVELOPMENT BANK INC	13,483,385.28	33,497,734.93	40.25%
LEGAZPI SAVINGS BANK INC	329,579,647.69	1,246,664,436.92	26.44%
NORTHPOINT DEV'T BANK INC	117,143,695.58	463,936,448.00	25.25%
UNIVERSITY SAVINGS BANK INC	92,295,812.86	400,064,055.35	23.07%
MAXIMUM SAVINGS BANK INC	10,342,264.54	45,418,715.79	22.77%
ENTERPRISE BANK INC (A THRIFT BANK)	372,014,404.47	1,691,603,144.43	21.99%
YUANTA SAVINGS BANK PHILIPPINES INC	113,530,881.58	531,396,842.55	21.36%
PAMPANGA DEVELOPMENT BANK	69,353,372.83	377,544,474.70	18.37%
HIYAS BANKING CORPORATION	37,495,017.41	271,051,418.54	13.83%
BATAAN DEVELOPMENT BANK	24,676,967.70	197,615,749.81	12.49%
LIFE SAVINGS BANK INC	5,501,639.71	45,630,225.30	12.06%
LUZON DEVELOPMENT BANK	416,440,693.84	3,461,551,366.28	12.03%
BPI DIRECT BANKO INC A SAVINGS BANK	954,911,331.10	8,467,274,911.50	11.28%
UCPB SAVINGS BANK	1,745,232,594.64	15,827,783,050.08	11.03%
PHILIPPINE VETERANS BANK	2,181,098,696.83	20,010,055,011.42	10.90%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,062,566,562.48	10,092,308,403.84	10.53%
1ST VALLEY BANK INC A DEVELOPMENT BANK	588,001,638.40	5,615,140,528.14	10.47%
PACIFIC ACE SAVINGS BANK INC	2,984,850.00	28,656,513.00	10.42%
EQUICOM SAVINGS BANK INC	611,032,784.07	5,912,075,520.82	10.34%
MALAYAN BANK SAVINGS AND MORT BANK INC	406,014,848.11	4,430,968,039.28	9.16%
CITYSTATE SAVINGS BANK INC	185,543,258.69	2,098,873,376.30	8.84%
BANK OF MAKATI (A SAVINGS BANK) INC	2,121,239,215.17	24,723,560,622.78	8.58%
FARMERS SAVINGS & LOAN BANK INC	18,191,139.09	214,967,114.08	8.46%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,138,725.50	1,745,219,551.12	8.32%
STANDARD CHARTERED BANK	2,628,789,265.43	35,509,698,802.38	7.40%
THE PALAWAN BANK (PALAWAN DB) INC	19,228,837.97	274,078,355.30	7.02%
ALLBANK (A THRIFT BANK) INC	134,213,404.65	1,918,267,784.97	7.00%
CORDILLERA SAVINGS BANK INC	13,442,527.92	197,258,543.02	6.81%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	138,442,344.22	6.75%
FIRST CONSOLIDATED BANK INC (A PDB)	705,237,796.65	10,860,379,024.20	6.49%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	1,100,985,341.72	6.13%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	1,100,985,341.72	6.13%
BUSINESS AND CONSUMERS BANK (A DB)	9,756,926.51	162,885,914.43	5.99%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,699,159,473.33	28,739,354,925.43	5.91%
WEALTH DEVELOPMENT BANK CORPORATION	412,713,639.62	7,029,985,548.76	5.87%
CHINA BANK SAVINGS INC	3,790,269,728.70	64,759,949,759.08	5.85%
RCBC SAVINGS BANK INC	4,109,016,585.20	84,527,653,225.99	4.86%
BPI FAMILY SAVINGS BANK INC	9,790,467,131.53	216,567,832,000.87	4.52%
EAST WEST BANKING CORP	8,930,351,011.28	198,418,976,247.90	4.50%
PNB SAVINGS BANK	2,124,019,395.12	48,130,815,518.83	4.41%
PHIL BANK OF COMMUNICATIONS	2,360,805,236.87	53,581,934,854.62	4.41%
BANK ONE SAVINGS CORPORATION	49,944,276.09	1,219,065,530.04	4.10%
CITY SAVINGS BANK INC	2,301,306,789.86	57,983,098,538.23	3.97%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,606,066.55	70,515,172.15	3.70%
PHIL SAVINGS BANK	5,252,790,829.40	149,165,225,748.55	3.52%
PRODUCERS SAVINGS BANK CORPORATION	353,037,002.05	10,516,333,981.50	3.36%
DUMAGUETE CITY DEV BANK INC	17,922,228.25	548,737,602.39	3.27%
UNITED COCONUT PLANTERS BANK	5,128,033,818.99	159,677,909,819.72	3.21%
UNION BANK OF THE PHILS	7,464,200,947.49	245,961,938,465.86	3.03%
INTER-ASIA DEVELOPMENT BANK	6,176,468.45	203,726,032.38	3.03%
BANK OF COMMERCE	1,714,905,631.27	64,713,113,404.29	2.65%
LEMERY SAVINGS & LOAN BANK, INC.	1,981,724.21	79,142,464.34	2.50%
PHIL TRUST COMPANY	1,277,448,244.94	51,085,957,438.33	2.50%
ASIA UNITED BANK CORPORATION	3,026,033,955.52	129,308,187,733.29	2.34%
CARD SME BANK INC A THRIFT BANK	88,020,494.62	3,798,744,157.07	2.32%
MAYBANK PHILIPPINES INCORPORATED	1,654,606,707.98	73,104,819,383.28	2.26%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,686,555,957.00	75,254,361,459.10	2.24%
CENTURY SAVINGS BANK CORPORATION	16,544,659.57	741,131,011.26	2.23%
DEVELOPMENT BANK OF THE PHIL	6,314,041,316.18	300,046,948,913.61	2.10%
PHIL NATIONAL BANK	8,679,744,711.60	448,892,491,256.15	1.93%
SUN SAVINGS BANK INC	17,732,744.36	1,007,358,714.18	1.76%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	29,307,273.85	1,738,839,847.12	1.69%
CTBC BANK (PHILIPPINES) CORP	496,282,907.62	32,003,609,788.18	1.55%
HSBC SAVINGS BANK(PHILS) INC	47,493,373.87	3,180,887,686.52	1.49%
ROBINSONS BANK CORPORATION	791,070,048.46	55,653,609,744.42	1.42%
RIZAL COMM'L BANKING CORP	3,569,025,053.26	288,000,321,097.91	1.24%
LAND BANK OF THE PHILIPPINES	7,976,576,276.23	708,105,646,304.78	1.13%
BANK OF THE PHIL ISLANDS	9,962,513,455.51	1,017,784,548,639.78	0.98%
HONGKONG & SHANGHAI BANKING CORP	576,180,886.39	58,911,243,926.22	0.98%
BDO UNIBANK INC	17,688,078,804.39	1,845,080,955,467.83	0.96%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,347,508.72	503,345,286.11	0.86%
CHINA BANKING CORP	2,569,254,055.11	385,625,202,187.36	0.67%
METROPOLITAN BANK & TCO	6,457,035,907.54	1,005,009,788,904.47	0.64%
SECURITY BANK CORP	1,962,296,925.07	367,703,966,237.24	0.53%
CITIBANK, N.A.	928,476,627.31	178,672,940,343.25	0.52%
BANGKOK BANK PUBLIC CO LTD	30,625,504.25	6,753,516,945.04	0.45%
KEB HANA BANK - MANILA BRANCH	28,266,209.64	7,392,595,428.29	0.38%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	2,578,975.82	1,658,524,207.05	0.16%
ING BANK N.V.	106.32	13,972,864,509.79	0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	24,284,413,520.05	0.00%
BANK OF AMERICA N.A.	0.00	11,764,704,178.10	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	12,626,778,967.38	0.00%
BDO PRIVATE BANK, INC.	0.00	6,424,833,092.22	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	1,409,976,394.12	0.00%
DEUTSCHE BANK AG	0.00	30,888,807,589.36	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	583,213,947.00	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	13,874,560.00	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,388,942,388.35	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	845,542,507.72	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	23,151,909,566.33	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	10,680,948,302.91	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	56,382,336,543.65	0.00%
MUFG BANK, LTD.	0.00	33,804,086,500.95	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	1,894,337,257.00	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	26,487,703,785.94	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	31,466,693,437.28	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,047,454,734.00	0.00%
Grand Total	149,058,808,343.82	8,894,265,349,254.06	1.68%

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

1. Malasiqui Progressive SLB Inc (48.32% of TLP)
2. Overseas Filipino Bank Inc (47.46% of TLP)
3. Philippine Star Development Bank Inc (40.25% of TLP)
4. Legazpi Savings Bank (26.44% of TLP)
5. Northpoint Development Bank Inc (25.25% 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 8.58% of Stockholders Equity as of March 31, 2018.

 

 

 

Philippine Banking System
NPL as % of SE
March 31, 2018
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,372,036,167.05	575,283,935.41	412.32%
ENTERPRISE BANK INC (A THRIFT BANK)	372,014,404.47	256,670,902.62	144.94%
EQUICOM SAVINGS BANK INC	611,032,784.07	721,342,861.05	84.71%
LUZON DEVELOPMENT BANK	416,440,693.84	569,392,826.39	73.14%
UCPB SAVINGS BANK	1,745,232,594.64	2,576,222,533.92	67.74%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,699,159,473.33	2,617,171,615.23	64.92%
PHILIPPINE VETERANS BANK	2,181,098,696.83	3,546,686,087.06	61.50%
LEGAZPI SAVINGS BANK INC	329,579,647.69	543,738,187.58	60.61%
THE PALAWAN BANK (PALAWAN DB) INC	19,228,837.97	36,601,723.72	52.54%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,062,566,562.48	2,379,962,205.92	44.65%
BPI DIRECT BANKO INC A SAVINGS BANK	954,911,331.10	2,153,005,938.46	44.35%
CHINA BANK SAVINGS INC	3,790,269,728.70	9,053,480,327.13	41.87%
STANDARD CHARTERED BANK	2,628,789,265.43	6,749,665,879.36	38.95%
MALASIQUI PROGRESSIVE SLB, INC	18,193,736.59	49,677,187.76	36.62%
BPI FAMILY SAVINGS BANK INC	9,790,467,131.53	28,023,825,708.56	34.94%
1ST VALLEY BANK INC A DEVELOPMENT BANK	588,001,638.40	1,709,639,863.89	34.39%
MALAYAN BANK SAVINGS AND MORT BANK INC	406,014,848.11	1,200,949,700.84	33.81%
PAMPANGA DEVELOPMENT BANK	69,353,372.83	207,713,272.18	33.39%
NORTHPOINT DEV'T BANK INC	117,143,695.58	351,178,908.00	33.36%
RCBC SAVINGS BANK INC	4,109,016,585.20	12,686,760,226.17	32.39%
UNITED COCONUT PLANTERS BANK	5,128,033,818.99	16,377,078,239.62	31.31%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,138,725.50	486,118,728.58	29.86%
BATAAN DEVELOPMENT BANK	24,676,967.70	85,864,003.12	28.74%
WEALTH DEVELOPMENT BANK CORPORATION	412,713,639.62	1,474,283,674.61	27.99%
BANK OF MAKATI (A SAVINGS BANK) INC	2,121,239,215.17	7,707,227,776.13	27.52%
CITYSTATE SAVINGS BANK INC	185,543,258.69	682,120,704.96	27.20%
PHIL SAVINGS BANK	5,252,790,829.40	21,323,053,833.17	24.63%
EAST WEST BANKING CORP	8,930,351,011.28	39,693,326,119.10	22.50%
UNIVERSITY SAVINGS BANK INC	92,295,812.86	412,193,280.50	22.39%
HIYAS BANKING CORPORATION	37,495,017.41	173,781,047.34	21.58%
MAXIMUM SAVINGS BANK INC	10,342,264.54	49,297,891.97	20.98%
MAXIMUM SAVINGS BANK INC	10,342,264.54	49,297,891.97	20.98%
PRODUCERS SAVINGS BANK CORPORATION	353,037,002.05	1,804,812,249.70	19.56%
PHIL BANK OF COMMUNICATIONS	2,360,805,236.87	12,193,339,670.16	19.36%
PNB SAVINGS BANK	2,124,019,395.12	11,656,394,712.00	18.22%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	54,425,535.71	17.16%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,686,555,957.00	10,342,565,339.90	16.31%
CITY SAVINGS BANK INC	2,301,306,789.86	14,203,775,349.59	16.20%
FIRST CONSOLIDATED BANK INC (A PDB)	705,237,796.65	4,447,438,408.10	15.86%
PHIL STAR DEVELOPMENT BANK INC	13,483,385.28	96,549,200.95	13.97%
FARMERS SAVINGS & LOAN BANK INC	18,191,139.09	132,521,313.38	13.73%
DEVELOPMENT BANK OF THE PHIL	6,314,041,316.18	47,564,672,250.07	13.27%
ALLBANK (A THRIFT BANK) INC	134,213,404.65	1,022,343,970.93	13.13%
MAYBANK PHILIPPINES INCORPORATED	1,654,606,707.98	12,672,853,485.28	13.06%
YUANTA SAVINGS BANK PHILIPPINES INC	113,530,881.58	922,179,895.91	12.31%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	568,142,385.86	11.87%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	568,142,385.86	11.87%
BANK OF COMMERCE	1,714,905,631.27	15,421,530,110.54	11.12%
ASIA UNITED BANK CORPORATION	3,026,033,955.52	27,557,243,684.03	10.98%
BUSINESS AND CONSUMERS BANK (A DB)	9,756,926.51	88,903,120.67	10.97%
UNION BANK OF THE PHILS	7,464,200,947.49	68,746,659,791.74	10.86%
CORDILLERA SAVINGS BANK INC	13,442,527.92	133,007,979.69	10.11%
INTER-ASIA DEVELOPMENT BANK	6,176,468.45	67,741,101.66	9.12%
CARD SME BANK INC A THRIFT BANK	88,020,494.62	1,035,686,910.72	8.50%
BANK ONE SAVINGS CORPORATION	49,944,276.09	594,847,657.82	8.40%
PHIL NATIONAL BANK	8,679,744,711.60	110,115,102,783.46	7.88%
LIFE SAVINGS BANK INC	5,501,639.71	71,170,518.33	7.73%
SUN SAVINGS BANK INC	17,732,744.36	237,598,081.14	7.46%
LAND BANK OF THE PHILIPPINES	7,976,576,276.23	108,366,736,685.40	7.36%
CTBC BANK (PHILIPPINES) CORP	496,282,907.62	7,057,736,654.89	7.03%
DUMAGUETE CITY DEV BANK INC	17,922,228.25	276,295,125.48	6.49%
ROBINSONS BANK CORPORATION	791,070,048.46	12,625,207,278.85	6.27%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	29,307,273.85	477,960,046.90	6.13%
BDO UNIBANK INC	17,688,078,804.39	298,798,395,425.01	5.92%
CITIBANK, N.A.	928,476,627.31	15,758,089,456.63	5.89%
PHIL TRUST COMPANY	1,277,448,244.94	21,772,279,045.71	5.87%
BANK OF THE PHIL ISLANDS	9,962,513,455.51	186,071,504,302.11	5.35%
RIZAL COMM'L BANKING CORP	3,569,025,053.26	68,100,028,004.45	5.24%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,606,066.55	59,156,808.09	4.41%
HONGKONG & SHANGHAI BANKING CORP	576,180,886.39	13,633,923,197.71	4.23%
PACIFIC ACE SAVINGS BANK INC	2,984,850.00	76,338,628.27	3.91%
CHINA BANKING CORP	2,569,254,055.11	74,797,575,576.60	3.43%
METROPOLITAN BANK & TCO	6,457,035,907.54	207,671,217,224.36	3.11%
HSBC SAVINGS BANK(PHILS) INC	47,493,373.87	1,652,823,357.98	2.87%
LEMERY SAVINGS & LOAN BANK, INC.	1,981,724.21	86,402,574.53	2.29%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,347,508.72	222,678,391.14	1.95%
SECURITY BANK CORP	1,962,296,925.07	103,960,293,797.50	1.89%
KEB HANA BANK - MANILA BRANCH	28,266,209.64	1,557,742,517.72	1.81%
CENTURY SAVINGS BANK CORPORATION	16,544,659.57	1,001,502,299.84	1.65%
BANGKOK BANK PUBLIC CO LTD	30,625,504.25	3,148,882,045.35	0.97%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	2,578,975.82	677,897,962.11	0.38%
ING BANK N.V.	106.32	2,621,198,022.76	0.00%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	4,236,427,985.62	0.00%
BANK OF AMERICA N.A.	0.00	2,096,035,697.20	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	10,123,673,611.68	0.00%
BDO PRIVATE BANK, INC.	0.00	5,453,472,151.95	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	5,182,801,228.08	0.00%
DEUTSCHE BANK AG	0.00	2,293,567,648.05	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,008,698,173.74	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,095,195,148.86	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,225,788,242.42	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	683,537,077.73	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	1,482,157,317.84	0.00%
MEGA INT'L COMM'L BANK CO LTD	0.00	1,895,565,404.00	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,575,924,360.63	0.00%
MUFG BANK, LTD.	0.00	4,583,142,130.78	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,201,523,316.78	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,001,868,449.98	0.00%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	4,665,723,811.53	0.00%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	2,380,887,784.77	0.00%
Grand Total	146,697,114,441.31	1,708,924,831,011.14	8.58%

 

 

 

Of the 100 banks in this list, twenty-one banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of March 31, 2018.  These banks are as follows:

1. Overseas Filipino Bank Inc (412.32%  of SE)
2. Enterprise Bank Inc (144.94% of SE)
3. Equicom Savings Bank Inc (84.71% of SE)
4. Luzon Development Bank (73.14% of SE)
5. UCPB Savings Bank (67.74% of SE)
6. Sterling Bank of Asia Inc (64.92% of SE)
7. Philippine Veterans Bank (61.50% of SE)
8. Legazpi Savings Bank (60.61% of SE)
9. The Palawan Bank Inc (52.54% of SE)
10. Philippine Resources Savings Banking Corporation (44.65% of SE)
11. BPI Direct Banko Inc (44.35% of SE)
12. China Bank Savings Inc (41.87% of SE)
13. Standard Chartered Bank (38.95% of SE)
14. Malasiqui Progressive SLB Inc (36.62% of SE)
15. BPI Family Savings Bank Inc (34.94% of SE)
16. 1st Valley Bank Inc (34.39% of SE)
17.  Malayan Bank Savings and Mortgage Bank Inc (33.81% of SE)
18. Pampanga Development Bank (33.39% of SE)
19. Northpoint Development Bank Inc (33.36% of SE)
20. RCBC Savings Bank Inc (32.39% of SE)
21. United Coconut Planters Bank (31.31% of SE)

Source: www.bsp.gov.ph

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - March 31, 2018

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of March 31, 2017", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 2.00% as of March 31, 2018, is below the historic average of 4.08% for the last thirty-four years.

 
 
 
Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses. Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 30 banks (highlighted in yellow, failed banks in red) fall into this deficiency.

 

Philippine Banking System
NPL Coverage Ratio
March 31, 2018
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	351,740,331.70	2,372,036,167.05	14.83%
CITY SAVINGS BANK INC	468,632,904.47	2,301,306,789.86	20.36%
ALLBANK (A THRIFT BANK) INC	32,979,738.86	134,213,404.65	24.57%
PNB SAVINGS BANK	737,210,888.12	2,124,019,395.12	34.71%
UCPB SAVINGS BANK	620,627,702.81	1,745,232,594.64	35.56%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	400,401,281.25	1,062,566,562.48	37.68%
WEALTH DEVELOPMENT BANK CORPORATION	155,750,397.86	412,713,639.62	37.74%
MALASIQUI PROGRESSIVE SLB, INC	6,951,706.48	18,193,736.59	38.21%
1ST VALLEY BANK INC A DEVELOPMENT BANK	225,928,271.41	588,001,638.40	38.42%
EQUICOM SAVINGS BANK INC	234,892,363.03	611,032,784.07	38.44%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	676,763,352.26	1,699,159,473.33	39.83%
ENTERPRISE BANK INC (A THRIFT BANK)	148,926,171.26	372,014,404.47	40.03%
CITYSTATE SAVINGS BANK INC	78,417,232.11	185,543,258.69	42.26%
PAMPANGA DEVELOPMENT BANK	32,319,534.28	69,353,372.83	46.60%
UNIVERSITY SAVINGS BANK INC	43,842,434.66	92,295,812.86	47.50%
PRODUCERS SAVINGS BANK CORPORATION	171,868,036.32	353,037,002.05	48.68%
LUZON DEVELOPMENT BANK	207,825,009.13	416,440,693.84	49.91%
PACIFIC ACE SAVINGS BANK INC	1,499,713.76	2,984,850.00	50.24%
RCBC SAVINGS BANK INC	2,166,957,468.17	4,109,016,585.20	52.74%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,433,319.51	2,606,066.55	55.00%
CHINA BANK SAVINGS INC	2,173,374,030.82	3,790,269,728.70	57.34%
EAST WEST BANKING CORP	6,028,528,902.09	8,930,351,011.28	67.51%
UNITED COCONUT PLANTERS BANK	3,490,576,572.71	5,128,033,818.99	68.07%
PHIL STAR DEVELOPMENT BANK INC	9,276,107.75	13,483,385.28	68.80%
BPI FAMILY SAVINGS BANK INC	7,140,640,820.52	9,790,467,131.53	72.93%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	3,337,624.39	4,347,508.72	76.77%
HIYAS BANKING CORPORATION	28,859,545.81	37,495,017.41	76.97%
BPI DIRECT BANKO INC A SAVINGS BANK	743,711,267.25	954,911,331.10	77.88%
PHILIPPINE VETERANS BANK	1,704,851,375.58	2,181,098,696.83	78.16%
STANDARD CHARTERED BANK	2,076,857,495.38	2,628,789,265.43	79.00%
PHIL SAVINGS BANK	4,229,577,772.28	5,252,790,829.40	80.52%
LEGAZPI SAVINGS BANK INC	267,915,422.76	329,579,647.69	81.29%
BANK OF MAKATI (A SAVINGS BANK) INC	1,782,032,082.32	2,121,239,215.17	84.01%
ASIA UNITED BANK CORPORATION	2,557,307,069.63	3,026,033,955.52	84.51%
FIRST CONSOLIDATED BANK INC (A PDB)	598,493,763.36	705,237,796.65	84.86%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	127,898,091.74	145,138,725.50	88.12%
BANK ONE SAVINGS CORPORATION	44,384,460.48	49,944,276.09	88.87%
BATAAN DEVELOPMENT BANK	22,116,112.30	24,676,967.70	89.62%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,529,847,756.55	1,686,555,957.00	90.71%
YUANTA SAVINGS BANK PHILIPPINES INC	103,959,106.39	113,530,881.58	91.57%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	27,484,231.38	29,307,273.85	93.78%
PHIL BANK OF COMMUNICATIONS	2,232,079,425.83	2,360,805,236.87	94.55%
RIZAL COMM'L BANKING CORP	3,469,857,170.18	3,569,025,053.26	97.22%
LIFE SAVINGS BANK INC	5,424,695.67	5,501,639.71	98.60%
MALAYAN BANK SAVINGS AND MORT BANK INC	414,769,389.74	406,014,848.11	102.16%
MAXIMUM SAVINGS BANK INC	10,709,623.18	10,342,264.54	103.55%
MAXIMUM SAVINGS BANK INC	10,709,623.18	10,342,264.54	103.55%
BUSINESS AND CONSUMERS BANK (A DB)	10,242,248.42	9,756,926.51	104.97%
NORTHPOINT DEV'T BANK INC	124,190,688.07	117,143,695.58	106.02%
INTER-ASIA DEVELOPMENT BANK	6,628,197.52	6,176,468.45	107.31%
DUMAGUETE CITY DEV BANK INC	19,299,237.59	17,922,228.25	107.68%
ROBINSONS BANK CORPORATION	874,576,172.78	791,070,048.46	110.56%
SUN SAVINGS BANK INC	19,612,159.35	17,732,744.36	110.60%
CORDILLERA SAVINGS BANK INC	15,115,675.60	13,442,527.92	112.45%
DEVELOPMENT BANK OF THE PHIL	7,232,794,354.83	6,314,041,316.18	114.55%
MERCHANTS SAVINGS & LOAN ASSN INC	79,906,370.97	67,454,694.49	118.46%
MERCHANTS SAVINGS & LOAN ASSN INC	79,906,370.97	67,454,694.49	118.46%
UNION BANK OF THE PHILS	8,869,250,015.55	7,464,200,947.49	118.82%
MAYBANK PHILIPPINES INCORPORATED	1,967,154,226.15	1,654,606,707.98	118.89%
CENTURY SAVINGS BANK CORPORATION	19,702,529.95	16,544,659.57	119.09%
LEMERY SAVINGS & LOAN BANK, INC.	2,374,586.45	1,981,724.21	119.82%
THE PALAWAN BANK (PALAWAN DB) INC	23,117,928.44	19,228,837.97	120.23%
BANK OF COMMERCE	2,252,201,482.03	1,714,905,631.27	131.33%
PHIL NATIONAL BANK	11,403,926,454.40	8,679,744,711.60	131.39%
FARMERS SAVINGS & LOAN BANK INC	27,019,800.14	18,191,139.09	148.53%
CTBC BANK (PHILIPPINES) CORP	753,239,497.59	496,282,907.62	151.78%
CARD SME BANK INC A THRIFT BANK	145,936,911.85	88,020,494.62	165.80%
LAND BANK OF THE PHILIPPINES	13,398,345,758.80	7,976,576,276.23	167.97%
BANK OF THE PHIL ISLANDS	16,789,943,088.53	9,962,513,455.51	168.53%
BDO UNIBANK INC	31,634,486,676.97	17,688,078,804.39	178.85%
METRO CEBU PUBLIC SAVINGS BANK	18,946,249.25	9,340,189.11	202.85%
PHIL TRUST COMPANY	2,693,239,225.85	1,277,448,244.94	210.83%
HSBC SAVINGS BANK(PHILS) INC	103,782,524.11	47,493,373.87	218.52%
METROPOLITAN BANK & TCO	17,600,268,142.31	6,457,035,907.54	272.58%
HONGKONG & SHANGHAI BANKING CORP	1,680,479,111.28	576,180,886.39	291.66%
KEB HANA BANK - MANILA BRANCH	82,992,871.97	28,266,209.64	293.61%
SECURITY BANK CORP	6,090,025,018.16	1,962,296,925.07	310.35%
CHINA BANKING CORP	8,363,288,057.83	2,569,254,055.11	325.51%
CITIBANK, N.A.	3,928,907,029.10	928,476,627.31	423.16%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	31,745,501.19	2,578,975.82	1230.93%
BANGKOK BANK PUBLIC CO LTD	411,008,000.00	30,625,504.25	1342.04%
ING BANK N.V.	89,069,918.98	106.32	83775318.83%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	142,565,127.97	0.00	NA
BANK OF AMERICA N.A.	34,093,660.58	0.00	NA
BANK OF CHINA LIMITED-MANILA BRANCH	243,551,988.51	0.00	NA
BDO PRIVATE BANK, INC.	9,599,102.90	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	30,062,417.98	0.00	NA
DEUTSCHE BANK AG	179,433,093.04	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	5,391,000.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	138,745.60	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	23,346,757.13	0.00	NA
ISLA BANK(A THRIFT BANK) INC	4,290,580.33	0.00	NA
JP MORGAN CHASE BANK NATIONAL ASSN.	16,000,000.00	0.00	NA
MEGA INT'L COMM'L BANK CO LTD	126,332,409.24	0.00	NA
MIZUHO BANK LTD - MANILA BRANCH	489,988,770.84	0.00	NA
MUFG BANK, LTD.	388,210,030.46	0.00	NA
SHINHAN BANK - MANILA BRANCH	18,617,312.96	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	196,596,318.46	0.00	NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	388,210,030.46	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	14,166,903.20	0.00	NA
Grand Total	186,752,863,729.36	149,069,150,608.36	125.28%

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

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
March 31, 2018
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Stockholder's Equity	Impact on SE
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,372,036,167.05	1,897,628,933.64	575,283,935.41	-268.72%
ENTERPRISE BANK INC (A THRIFT BANK)	372,014,404.47	297,611,523.58	256,670,902.62	-57.93%
EQUICOM SAVINGS BANK INC	611,032,784.07	488,826,227.26	721,342,861.05	-35.20%
UCPB SAVINGS BANK	1,745,232,594.64	1,396,186,075.71	2,576,222,533.92	-30.10%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,699,159,473.33	1,359,327,578.66	2,617,171,615.23	-26.08%
LUZON DEVELOPMENT BANK	416,440,693.84	333,152,555.07	569,392,826.39	-22.01%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,062,566,562.48	850,053,249.98	2,379,962,205.92	-18.89%
MALASIQUI PROGRESSIVE SLB, INC	18,193,736.59	14,554,989.27	49,677,187.76	-15.31%
1ST VALLEY BANK INC A DEVELOPMENT BANK	588,001,638.40	470,401,310.72	1,709,639,863.89	-14.30%
WEALTH DEVELOPMENT BANK CORPORATION	412,713,639.62	330,170,911.70	1,474,283,674.61	-11.83%
PAMPANGA DEVELOPMENT BANK	69,353,372.83	55,482,698.26	207,713,272.18	-11.15%
CITYSTATE SAVINGS BANK INC	185,543,258.69	148,434,606.95	682,120,704.96	-10.26%
CITY SAVINGS BANK INC	2,301,306,789.86	1,841,045,431.89	14,203,775,349.59	-9.66%
CHINA BANK SAVINGS INC	3,790,269,728.70	3,032,215,782.96	9,053,480,327.13	-9.49%
RCBC SAVINGS BANK INC	4,109,016,585.20	3,287,213,268.16	12,686,760,226.17	-8.83%
PNB SAVINGS BANK	2,124,019,395.12	1,699,215,516.10	11,656,394,712.00	-8.25%
UNIVERSITY SAVINGS BANK INC	92,295,812.86	73,836,650.29	412,193,280.50	-7.28%
ALLBANK (A THRIFT BANK) INC	134,213,404.65	107,370,723.72	1,022,343,970.93	-7.28%
PRODUCERS SAVINGS BANK CORPORATION	353,037,002.05	282,429,601.64	1,804,812,249.70	-6.13%
UNITED COCONUT PLANTERS BANK	5,128,033,818.99	4,102,427,055.19	16,377,078,239.62	-3.74%
EAST WEST BANKING CORP	8,930,351,011.28	7,144,280,809.02	39,693,326,119.10	-2.81%
BPI FAMILY SAVINGS BANK INC	9,790,467,131.53	7,832,373,705.22	28,023,825,708.56	-2.47%
PHIL STAR DEVELOPMENT BANK INC	13,483,385.28	10,786,708.22	96,549,200.95	-1.56%
PACIFIC ACE SAVINGS BANK INC	2,984,850.00	2,387,880.00	76,338,628.27	-1.16%
PHILIPPINE VETERANS BANK	2,181,098,696.83	1,744,878,957.46	3,546,686,087.06	-1.13%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,606,066.55	2,084,853.24	59,156,808.09	-1.10%
BPI DIRECT BANKO INC A SAVINGS BANK	954,911,331.10	763,929,064.88	2,153,005,938.46	-0.94%
HIYAS BANKING CORPORATION	37,495,017.41	29,996,013.93	173,781,047.34	-0.65%
STANDARD CHARTERED BANK	2,628,789,265.43	2,103,031,412.34	6,749,665,879.36	-0.39%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	4,347,508.72	3,478,006.98	222,678,391.14	-0.06%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	2,095,195,148.86	0.01%
PHIL SAVINGS BANK	5,252,790,829.40	4,202,232,663.52	21,323,053,833.17	0.13%
BDO PRIVATE BANK, INC.	0.00	0.00	5,453,472,151.95	0.18%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	2,008,698,173.74	0.27%
ASIA UNITED BANK CORPORATION	3,026,033,955.52	2,420,827,164.42	27,557,243,684.03	0.50%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	5,182,801,228.08	0.58%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	0.00	2,380,887,784.77	0.60%
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	683,537,077.73	0.63%
CENTURY SAVINGS BANK CORPORATION	16,544,659.57	13,235,727.66	1,001,502,299.84	0.65%
BANK ONE SAVINGS CORPORATION	49,944,276.09	39,955,420.87	594,847,657.82	0.74%
FIRST CONSOLIDATED BANK INC (A PDB)	705,237,796.65	564,190,237.32	4,447,438,408.10	0.77%
LEGAZPI SAVINGS BANK INC	329,579,647.69	263,663,718.15	543,738,187.58	0.78%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	29,307,273.85	23,445,819.08	477,960,046.90	0.84%
SHINHAN BANK - MANILA BRANCH	0.00	0.00	2,201,523,316.78	0.85%
RIZAL COMM'L BANKING CORP	3,569,025,053.26	2,855,220,042.61	68,100,028,004.45	0.90%
LEMERY SAVINGS & LOAN BANK, INC.	1,981,724.21	1,585,379.37	86,402,574.53	0.91%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	0.00	2,225,788,242.42	1.05%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	0.00	1,482,157,317.84	1.08%
BANK OF MAKATI (A SAVINGS BANK) INC	2,121,239,215.17	1,696,991,372.14	7,707,227,776.13	1.10%
YUANTA SAVINGS BANK PHILIPPINES INC	113,530,881.58	90,824,705.26	922,179,895.91	1.42%
LIFE SAVINGS BANK INC	5,501,639.71	4,401,311.77	71,170,518.33	1.44%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	0.00	13,001,868,449.98	1.51%
BANK OF AMERICA N.A.	0.00	0.00	2,096,035,697.20	1.63%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,686,555,957.00	1,349,244,765.60	10,342,565,339.90	1.75%
DUMAGUETE CITY DEV BANK INC	17,922,228.25	14,337,782.60	276,295,125.48	1.80%
ROBINSONS BANK CORPORATION	791,070,048.46	632,856,038.77	12,625,207,278.85	1.91%
SUN SAVINGS BANK INC	17,732,744.36	14,186,195.49	237,598,081.14	2.28%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	0.00	10,123,673,611.68	2.41%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	145,138,725.50	116,110,980.40	486,118,728.58	2.42%
INTER-ASIA DEVELOPMENT BANK	6,176,468.45	4,941,174.76	67,741,101.66	2.49%
BUSINESS AND CONSUMERS BANK (A DB)	9,756,926.51	7,805,541.21	88,903,120.67	2.74%
BATAAN DEVELOPMENT BANK	24,676,967.70	19,741,574.16	85,864,003.12	2.77%
PHIL BANK OF COMMUNICATIONS	2,360,805,236.87	1,888,644,189.50	12,193,339,670.16	2.82%
CORDILLERA SAVINGS BANK INC	13,442,527.92	10,754,022.34	133,007,979.69	3.28%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	0.00	4,236,427,985.62	3.37%
ING BANK N.V.	106.32	85.06	2,621,198,022.76	3.40%
KEB HANA BANK - MANILA BRANCH	28,266,209.64	22,612,967.71	1,557,742,517.72	3.88%
HSBC SAVINGS BANK(PHILS) INC	47,493,373.87	37,994,699.10	1,652,823,357.98	3.98%
PHIL NATIONAL BANK	8,679,744,711.60	6,943,795,769.28	110,115,102,783.46	4.05%
UNION BANK OF THE PHILS	7,464,200,947.49	5,971,360,757.99	68,746,659,791.74	4.22%
SECURITY BANK CORP	1,962,296,925.07	1,569,837,540.06	103,960,293,797.50	4.35%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	2,578,975.82	2,063,180.66	677,897,962.11	4.38%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	53,963,755.59	568,142,385.86	4.57%
MERCHANTS SAVINGS & LOAN ASSN INC	67,454,694.49	53,963,755.59	568,142,385.86	4.57%
DEVELOPMENT BANK OF THE PHIL	6,314,041,316.18	5,051,233,052.94	47,564,672,250.07	4.59%
BANK OF THE PHIL ISLANDS	9,962,513,455.51	7,970,010,764.41	186,071,504,302.11	4.74%
MAXIMUM SAVINGS BANK INC	10,342,264.54	8,273,811.63	49,297,891.97	4.94%
MAXIMUM SAVINGS BANK INC	10,342,264.54	8,273,811.63	49,297,891.97	4.94%
CTBC BANK (PHILIPPINES) CORP	496,282,907.62	397,026,326.10	7,057,736,654.89	5.05%
MAYBANK PHILIPPINES INCORPORATED	1,654,606,707.98	1,323,685,366.38	12,672,853,485.28	5.08%
BANK OF COMMERCE	1,714,905,631.27	1,371,924,505.02	15,421,530,110.54	5.71%
BDO UNIBANK INC	17,688,078,804.39	14,150,463,043.51	298,798,395,425.01	5.85%
METROPOLITAN BANK & TCO	6,457,035,907.54	5,165,628,726.03	207,671,217,224.36	5.99%
LAND BANK OF THE PHILIPPINES	7,976,576,276.23	6,381,261,020.98	108,366,736,685.40	6.48%
MEGA INT'L COMM'L BANK CO LTD	0.00	0.00	1,895,565,404.00	6.66%
CARD SME BANK INC A THRIFT BANK	88,020,494.62	70,416,395.70	1,035,686,910.72	7.29%
MALAYAN BANK SAVINGS AND MORT BANK INC	406,014,848.11	324,811,878.49	1,200,949,700.84	7.49%
PHIL TRUST COMPANY	1,277,448,244.94	1,021,958,595.95	21,772,279,045.71	7.68%
DEUTSCHE BANK AG	0.00	0.00	2,293,567,648.05	7.82%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD	0.00	0.00	4,665,723,811.53	8.32%
CHINA BANKING CORP	2,569,254,055.11	2,055,403,244.09	74,797,575,576.60	8.43%
MUFG BANK, LTD.	0.00	0.00	4,583,142,130.78	8.47%
NORTHPOINT DEV'T BANK INC	117,143,695.58	93,714,956.46	351,178,908.00	8.68%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	5,575,924,360.63	8.79%
HONGKONG & SHANGHAI BANKING CORP	576,180,886.39	460,944,709.11	13,633,923,197.71	8.94%
FARMERS SAVINGS & LOAN BANK INC	18,191,139.09	14,552,911.27	132,521,313.38	9.41%
BANGKOK BANK PUBLIC CO LTD	30,625,504.25	24,500,403.40	3,148,882,045.35	12.27%
CITIBANK, N.A.	928,476,627.31	742,781,301.85	15,758,089,456.63	20.22%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	7,472,151.29	54,425,535.71	21.08%
THE PALAWAN BANK (PALAWAN DB) INC	19,228,837.97	15,383,070.38	36,601,723.72	21.13%
Grand Total	149,069,150,608.36	119,255,320,486.69	1,709,500,114,946.55	3.95%

Source: www.bsp.gov.ph

Out of the five banks highlighted in yellow, three banks have been regularly listed as one of the "The Top Distressed Philippine Banks as of March 31, 2018".

The most notable of the banks in this list is Overseas Filipino Bank Inc. The bank faces a shortfall of 268.72% of its stated stockholder's equity of Php 575.29 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. In short, it's equity would be completely wiped out and then some if the bank were to properly account for its losses.