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Sunday, October 14, 2018

The Financial Strength of Philippine Banks according to BSP: From Weakest to Strongest - As of June 30, 2018

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).


In the aggregate, Philippine Universal and Commercial Banks are well capitalized. As of June 30, 2018, Total CAR is 15.75%, within the range of 15% to 20% of the last 31 years.

 


Every quarter, several Philippine Banks do not meet these guidelines. As of June 30, 2018, the banks that failed to meet BSP's recommended minimum capital requirements are as follows:


 TOTAL CAR:
 

  1. United Coconut Planters Bank (Total CAR of 7.19) 
  2. Philippine Veterans Bank (Total CAR of 8.25)


TIER ONE CAR


Seven banks reported Tier One CAR of 0.00 as of June 30, 2018. Of those that did report Tier One CAR greater than 0.00, three banks have less than the BSP-recommended Tier One CARs of 10.00. These banks are:



  1. United Coconut Planters Bank (Tier One CAR of 7.19)
  2. Sterling Bank of Asia (Tier One CAR of 7.34)
  3. Philippine Veterans Bank (Tier One CAR of 7.62)

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.  Forty-five banks reported their CET1 Ratio as 0.00 for June 30, 2018.



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



  1. Philippine Veterans Bank (Common Equity Tier One CAR of 6.31)



The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Banks as of June  30, 2018 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):
 
Philippine Banking System
TOTAL CAR
June 30, 2018









Bank Type of Bank Total CAR
UNITED COCONUT PLANTERS BANK U/KB 7.19
PHILIPPINE VETERANS BANK U/KB 8.25
ENTERPRISE BANK INC (A THRIFT BANK) Thrift Bank 11.05
EQUICOM SAVINGS BANK INC Thrift Bank 11.36
LAND BANK OF THE  PHILIPPINES U/KB 11.46
CHINA BANK SAVINGS INC Thrift Bank 11.59
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift Bank 11.88
MUFG BANK INC U/KB 12.08
PHIL NATIONAL BANK U/KB 12.19
EAST WEST BANKING CORP U/KB 13.16
RCBC SAVINGS BANK INC Thrift Bank 13.29
CHINA BANKING CORP U/KB 13.50
BDO UNIBANK INC U/KB 13.56
FARMERS SAVINGS & LOAN BANK INC Thrift Bank 13.60
MIZUHO BANK LTD - MANILA BRANCH U/KB 13.66
PHIL SAVINGS BANK Thrift Bank 13.67
PRODUCERS SAVINGS BANK CORPORATION Thrift Bank 13.81
UNION BANK OF THE PHILS U/KB 13.81
UCPB SAVINGS BANK Thrift Bank 14.15
RIZAL COMM'L BANKING CORP U/KB 14.34
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift Bank 14.37
ASIA UNITED BANK CORPORATION U/KB 15.01
DEVELOPMENT BANK OF THE PHIL U/KB 15.05
PHIL BANK OF COMMUNICATIONS U/KB 15.10
MAYBANK PHILIPPINES INC U/KB 15.24
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift Bank 15.73
CITYSTATE SAVINGS BANK INC Thrift Bank 15.87
CITIBANK, N.A. U/KB 16.09
KEB HANA BANK - MANILA BRANCH U/KB 16.47
BANK OF THE PHIL ISLANDS U/KB 16.54
BANGKO KABAYAN INC Thrift Bank 16.97
STANDARD CHARTERED BANK U/KB 16.99
BDO PRIVATE BANK, INC. U/KB 17.02
BPI FAMILY SAVINGS BANK INC Thrift Bank 17.06
METROPOLITAN BANK & TRUST CO U/KB 17.24
ROBINSONS BANK CORPORATION U/KB 17.29
CTBC BANK (PHILIPPINES) CORP U/KB 17.68
SECURITY BANK CORP U/KB 17.79
BANK OF COMMERCE U/KB 17.81
CARD SME BANK INC A THRIFT BANK Thrift Bank 17.92
BATAAN DEVELOPMENT BANK Thrift Bank 19.33
HONGKONG & SHANGHAI BANKING CORP U/KB 19.55
BANK OF MAKATI (A SAVINGS BANK) INC Thrift Bank 20.13
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS Thrift Bank 20.65
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift Bank 21.00
MEGA INT'L COMM'L BANK CO LTD U/KB 21.17
BPI DIRECT BANKO INC Thrift Bank 21.44
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 21.77
HIYAS BANKING CORPORATION Thrift Bank 21.88
PNB SAVINGS BANK Thrift Bank 21.88
1st VALLEY BANK INC A DEVELOPMENT BANK Thrift Bank 22.56
ANZ BANKING GROUP LTD U/KB 22.58
INTER-ASIA DEVELOPMENT BANK Thrift Bank 23.25
BUSINESS AND CONSUMERS BANK (A DB) Thrift Bank 25.35
SUN SAVINGS BANK INC Thrift Bank 26.36
UNIVERSITY SAVINGS BANK INC Thrift Bank 26.60
METRO CEBU PUBLIC SAVINGS BANK Thrift Bank 27.40
MARITIME SAVINGS BANK CORPORATION Thrift Bank 28.18
DUMAGUETE CITY DEV BANK INC Thrift Bank 29.71
FIRST CONSOLIDATED BANK INC (A PDB) Thrift Bank 30.53
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 31.58
PHIL TRUST COMPANY U/KB 32.08
LEGAZPI SAVINGS BANK INC Thrift Bank 32.95
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift Bank 33.20
LIFE SAVINGS BANK INC Thrift Bank 33.30
HSBC SAVINGS BANK PHILIPPINES Thrift Bank 33.61
LEMERY SAVINGS & LOAN BANK, INC. Thrift Bank 36.05
CORDILLERA SAVINGS BANK INC Thrift Bank 36.11
MALASIQUI PROGRESSIVE SLB, INC Thrift Bank 36.43
NORTHPOINT DEV'T BANK INC Thrift Bank 37.61
BANGKOK BANK PUBLIC CO LTD U/KB 37.73
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 39.81
PAMPANGA DEVELOPMENT BANK Thrift Bank 44.77
SHINHAN BANK - MANILA BRANCH U/KB 46.71
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 47.24
ING BANK N.V. U/KB 49.47
ALLBANK Thrift Bank 51.27
BANK OF CHINA LIMITED U/KB 53.56
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 56.56
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 57.81
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift Bank 59.74
BANK OF AMERICA N.A. U/KB 60.33
BANK ONE SAVINGS AND TRUST CORP. Thrift Bank 60.57
PACIFIC ACE SAVINGS BANK INC Thrift Bank 68.12
CENTURY SAVINGS BANK CORPORATION Thrift Bank 75.14
PHIL STAR DEVELOPMENT BANK INC Thrift Bank 78.75
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 84.07
ISLA BANK(A THRIFT BANK) INC Thrift Bank 118.06
UNITED OVERSEAS BANK LIMITED MANILA BRANCH U/KB 128.24
FIRST COMMERCIAL BANK U/KB 195.48
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 334.63
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH U/KB 371.60
CITY SAVINGS BANK INC Thrift Bank NA
DEUTSCHE BANK AG U/KB NA
LUZON DEVELOPMENT BANK Thrift Bank NA
MAXIMUM SAVINGS BANK Thrift Bank NA
OVERSEAS FILIPINO BANK Thrift Bank NA
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank NA
 
Philippine Banking System
Tier One CAR
June 30, 2018









Bank Type of Bank Tier One CAR
1st VALLEY BANK INC A DEVELOPMENT BANK Thrift Bank 0.00
ALLBANK 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
UNITED COCONUT PLANTERS BANK U/KB 7.19
STERLING BANK OF ASIA INC (A SAVINGS BANK) Thrift Bank 7.34
PHILIPPINE VETERANS BANK U/KB 7.62
LAND BANK OF THE  PHILIPPINES U/KB 10.61
CHINA BANK SAVINGS INC Thrift Bank 10.66
RIZAL COMM'L BANKING CORP U/KB 10.81
PHIL SAVINGS BANK Thrift Bank 10.97
EAST WEST BANKING CORP U/KB 11.01
UNION BANK OF THE PHILS U/KB 11.23
DEVELOPMENT BANK OF THE PHIL U/KB 11.37
MUFG BANK INC U/KB 11.39
PHIL NATIONAL BANK U/KB 11.42
ASIA UNITED BANK CORPORATION U/KB 11.53
MAXIMUM SAVINGS BANK Thrift Bank 11.87
MAYBANK PHILIPPINES INC U/KB 11.98
BDO UNIBANK INC U/KB 12.11
PHIL BANK OF COMMUNICATIONS U/KB 12.25
RCBC SAVINGS BANK INC Thrift Bank 12.65
MIZUHO BANK LTD - MANILA BRANCH U/KB 12.73
CHINA BANKING CORP U/KB 12.76
PRODUCERS SAVINGS BANK CORPORATION Thrift Bank 13.26
UNIVERSITY SAVINGS BANK INC Thrift Bank 13.30
UCPB SAVINGS BANK Thrift Bank 13.39
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK Thrift Bank 13.44
FARMERS SAVINGS & LOAN BANK INC Thrift Bank 13.60
METROPOLITAN BANK & TRUST CO U/KB 14.63
MALAYAN BANK SAVINGS AND MORT BANK INC Thrift Bank 15.23
CITIBANK, N.A. U/KB 15.32
CITYSTATE SAVINGS BANK INC Thrift Bank 15.38
SECURITY BANK CORP U/KB 15.53
BANK OF THE PHIL ISLANDS U/KB 15.65
KEB HANA BANK - MANILA BRANCH U/KB 15.94
BPI FAMILY SAVINGS BANK INC Thrift Bank 16.21
ROBINSONS BANK CORPORATION U/KB 16.41
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS Thrift Bank 16.49
STANDARD CHARTERED BANK U/KB 16.58
BANGKO KABAYAN INC Thrift Bank 16.70
CTBC BANK (PHILIPPINES) CORP U/KB 16.79
BDO PRIVATE BANK, INC. U/KB 16.99
BANK OF COMMERCE U/KB 17.11
CARD SME BANK INC A THRIFT BANK Thrift Bank 17.18
HONGKONG & SHANGHAI BANKING CORP U/KB 18.89
BANK OF MAKATI (A SAVINGS BANK) INC Thrift Bank 20.13
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC) Thrift Bank 20.20
MEGA INT'L COMM'L BANK CO LTD U/KB 20.22
BPI DIRECT BANKO INC Thrift Bank 20.57
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 20.86
BATAAN DEVELOPMENT BANK Thrift Bank 21.33
PNB SAVINGS BANK Thrift Bank 21.39
HIYAS BANKING CORPORATION Thrift Bank 21.52
ANZ BANKING GROUP LTD U/KB 22.27
SUN SAVINGS BANK INC Thrift Bank 25.47
METRO CEBU PUBLIC SAVINGS BANK Thrift Bank 27.36
DUMAGUETE CITY DEV BANK INC Thrift Bank 29.19
FIRST CONSOLIDATED BANK INC (A PDB) Thrift Bank 29.65
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 31.45
PHIL TRUST COMPANY U/KB 31.73
LEGAZPI SAVINGS BANK INC Thrift Bank 32.14
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK Thrift Bank 32.47
HSBC SAVINGS BANK PHILIPPINES Thrift Bank 32.91
LIFE SAVINGS BANK INC Thrift Bank 33.06
LEMERY SAVINGS & LOAN BANK, INC. Thrift Bank 34.86
CORDILLERA SAVINGS BANK INC Thrift Bank 35.59
MALASIQUI PROGRESSIVE SLB, INC Thrift Bank 36.43
BANGKOK BANK PUBLIC CO LTD U/KB 36.76
NORTHPOINT DEV'T BANK INC Thrift Bank 37.02
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 39.16
SHINHAN BANK - MANILA BRANCH U/KB 46.21
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 47.24
ING BANK N.V. U/KB 49.04
BANK OF CHINA LIMITED U/KB 52.75
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 55.91
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 56.99
QUEZON COCONUT BANK INC (A THRIFT BANK) Thrift Bank 59.06
BANK ONE SAVINGS AND TRUST CORP. Thrift Bank 59.94
BANK OF AMERICA N.A. U/KB 60.06
PACIFIC ACE SAVINGS BANK INC Thrift Bank 67.89
CENTURY SAVINGS BANK CORPORATION Thrift Bank 74.16
PHIL STAR DEVELOPMENT BANK INC Thrift Bank 78.56
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 83.20
ISLA BANK(A THRIFT BANK) INC Thrift Bank 117.65
UNITED OVERSEAS BANK LIMITED MANILA BRANCH U/KB 127.37
FIRST COMMERCIAL BANK U/KB 194.75
PAMPANGA DEVELOPMENT BANK Thrift Bank 210.07
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 333.91
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH U/KB 371.60
CITY SAVINGS BANK INC Thrift Bank NA
DEUTSCHE BANK AG U/KB NA
LUZON DEVELOPMENT BANK Thrift Bank NA
OVERSEAS FILIPINO BANK Thrift Bank NA
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank NA
 
Philippine Banking System
Common Tier 1 Ratio
June 30, 2018









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
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
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
MAXIMUM SAVINGS BANK 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 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
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
WEALTH DEVELOPMENT BANK CORPORATION Thrift Bank 0.00
YUANTA SAVINGS BANK PHILIPPINES INC Thrift Bank 0.00
PHILIPPINE VETERANS BANK U/KB 6.31
LAND BANK OF THE  PHILIPPINES U/KB 10.61
CHINA BANK SAVINGS INC Thrift Bank 10.66
RIZAL COMM'L BANKING CORP U/KB 10.81
PHIL SAVINGS BANK Thrift Bank 10.97
EAST WEST BANKING CORP U/KB 11.01
UNION BANK OF THE PHILS U/KB 11.23
DEVELOPMENT BANK OF THE PHIL U/KB 11.37
MUFG BANK INC U/KB 11.39
PHIL NATIONAL BANK U/KB 11.42
ASIA UNITED BANK CORPORATION U/KB 11.53
BDO UNIBANK INC U/KB 11.86
MAYBANK PHILIPPINES INC U/KB 11.98
PHIL BANK OF COMMUNICATIONS U/KB 12.25
RCBC SAVINGS BANK INC Thrift Bank 12.65
MIZUHO BANK LTD - MANILA BRANCH U/KB 12.73
CHINA BANKING CORP U/KB 12.76
UCPB SAVINGS BANK Thrift Bank 13.39
METROPOLITAN BANK & TRUST CO U/KB 14.63
CITIBANK, N.A. U/KB 15.32
SECURITY BANK CORP U/KB 15.53
BANK OF THE PHIL ISLANDS U/KB 15.65
KEB HANA BANK - MANILA BRANCH U/KB 15.94
BPI FAMILY SAVINGS BANK INC Thrift Bank 16.21
ROBINSONS BANK CORPORATION U/KB 16.41
STANDARD CHARTERED BANK U/KB 16.58
CTBC BANK (PHILIPPINES) CORP U/KB 16.79
BDO PRIVATE BANK, INC. U/KB 16.99
BANK OF COMMERCE U/KB 17.11
HONGKONG & SHANGHAI BANKING CORP U/KB 18.89
MEGA INT'L COMM'L BANK CO LTD U/KB 20.22
BPI DIRECT BANKO INC Thrift Bank 20.57
PNB SAVINGS BANK Thrift Bank 21.39
ANZ BANKING GROUP LTD U/KB 22.27
JP MORGAN CHASE BANK NATIONAL ASSN. U/KB 31.45
PHIL TRUST COMPANY U/KB 31.73
LEGAZPI SAVINGS BANK INC Thrift Bank 32.14
HSBC SAVINGS BANK PHILIPPINES Thrift Bank 32.91
BANGKOK BANK PUBLIC CO LTD U/KB 36.76
MERCHANTS SAVINGS & LOAN ASSN INC Thrift Bank 39.16
SHINHAN BANK - MANILA BRANCH U/KB 46.21
ING BANK N.V. U/KB 49.04
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS U/KB 55.91
SUMITOMO MITSUI BANKING CORPORATION - MANILA BRANCH U/KB 56.99
INDUSTRIAL BANK OF KOREA MANILA BRANCH U/KB 83.20
FIRST COMMERCIAL BANK U/KB 194.75
CATHAY UNITED BANK CO LTD - MANILA BRANCH U/KB 333.91
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH U/KB 371.60
CITY SAVINGS BANK INC Thrift Bank NA
DEUTSCHE BANK AG U/KB NA
LUZON DEVELOPMENT BANK Thrift Bank NA
OVERSEAS FILIPINO BANK Thrift Bank NA
THE PALAWAN BANK (PALAWAN DB) INC Thrift Bank NA

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