Overseas Filipino Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of September 30, 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 Enterprise Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2018 .


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 156.90 billion as of September 30, 2018 - approximately 1.65% of the Philippine Banking Industry's Total Loan Portfolio of Php 9.50 trillion.

 

Philippine Banking System
NPL as % of TLP
September 30, 2018
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,200,789,892.72	5,094,778,470.77	43.20%
LEGAZPI SAVINGS BANK INC	333,789,458.23	1,322,980,737.95	25.23%
NORTHPOINT DEV'T BANK INC	107,859,057.88	488,801,489.68	22.07%
ENTERPRISE BANK INC (A THRIFT BANK)	356,405,207.95	1,725,298,400.72	20.66%
BATAAN DEVELOPMENT BANK	43,838,647.03	216,326,782.28	20.27%
MARITIME SAVINGS BANK CORPORATION	22,871,486.95	117,428,310.74	19.48%
YUANTA SAVINGS BANK PHILIPPINES INC	107,918,892.35	555,257,606.16	19.44%
UNIVERSITY SAVINGS BANK INC	88,980,921.54	505,386,227.10	17.61%
PHILIPPINE RESOURCES SAVINGS BANKING	1,335,254,894.57	8,952,499,513.98	14.91%
PAMPANGA DEVELOPMENT BANK	56,591,647.47	391,249,540.25	14.46%
HIYAS BANKING CORPORATION	37,619,784.78	282,769,577.77	13.30%
PACIFIC ACE SAVINGS BANK INC	5,715,436.00	43,058,422.00	13.27%
UCPB SAVINGS BANK	1,935,843,102.92	15,460,866,820.09	12.52%
FARMERS SAVINGS & LOAN BANK INC	25,140,440.92	227,452,624.49	11.05%
EQUICOM SAVINGS BANK INC	680,239,107.69	6,860,301,827.27	9.92%
BUSINESS AND CONSUMERS BANK (A DB)	15,247,805.02	163,347,615.72	9.33%
1ST VALLEY BANK INC A DEVELOPMENT BANK	655,178,883.27	7,180,153,024.95	9.12%
BPI DIRECT BANKO INC A SAVINGS BANK	940,487,823.05	10,792,456,336.54	8.71%
MALAYAN BANK SAVINGS AND MORT BANK INC	383,863,085.92	4,409,869,955.43	8.70%
LEMERY SAVINGS & LOAN BANK, INC.	7,744,052.82	91,907,596.36	8.43%
BANK OF MAKATI (A SAVINGS BANK) INC	2,236,149,315.57	27,236,677,434.59	8.21%
FIRST CONSOLIDATED BANK INC (A PDB)	972,574,900.13	12,569,284,678.93	7.74%
STANDARD CHARTERED BANK	2,636,355,424.79	37,158,319,433.32	7.09%
CORDILLERA SAVINGS BANK INC	13,267,153.17	194,090,956.17	6.84%
LIFE SAVINGS BANK INC	2,826,635.39	42,992,745.18	6.57%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	112,664,915.67	1,746,676,175.70	6.45%
ALLBANK (A THRIFT BANK) INC	127,269,730.63	2,088,608,767.75	6.09%
WEALTH DEVELOPMENT BANK CORPORATION	430,079,540.50	7,278,797,639.07	5.91%
MERCHANTS SAVINGS & LOAN ASSN INC	68,439,569.26	1,176,991,869.00	5.81%
CHINA BANK SAVINGS INC	3,441,198,508.56	68,760,845,869.87	5.00%
STERLING BANK OF ASIA INC (A SAVINGS	1,540,579,044.23	31,163,423,371.46	4.94%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	190,161,729.25	4.91%
BPI FAMILY SAVINGS BANK INC	10,552,134,142.00	216,758,458,702.17	4.87%
RCBC SAVINGS BANK INC	4,323,774,066.58	89,499,842,288.23	4.83%
EAST WEST BANKING CORP	9,928,665,998.30	205,623,058,452.01	4.83%
PNB SAVINGS BANK	2,432,403,665.94	51,619,166,157.65	4.71%
CITYSTATE SAVINGS BANK INC	95,397,795.70	2,095,935,715.74	4.55%
BANK ONE SAVINGS CORPORATION	55,495,016.00	1,249,509,778.13	4.44%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,750,058.15	64,663,215.27	4.25%
CITY SAVINGS BANK INC	2,349,989,074.91	60,026,765,775.78	3.91%
PHIL SAVINGS BANK	6,079,237,828.83	155,832,186,066.97	3.90%
PHIL BANK OF COMMUNICATIONS	2,227,830,089.40	57,561,799,182.67	3.87%
INTER-ASIA DEVELOPMENT BANK	8,003,219.40	222,492,562.82	3.60%
UNITED COCONUT PLANTERS BANK	5,788,951,065.80	163,424,471,415.49	3.54%
UNION BANK OF THE PHILS	8,362,824,273.02	246,014,440,795.55	3.40%
DUMAGUETE CITY DEV BANK INC	19,352,294.27	597,974,940.38	3.24%
CARD SME BANK INC A THRIFT BANK	113,262,457.07	4,315,115,189.32	2.62%
PRODUCERS SAVINGS BANK CORPORATION	301,475,746.19	12,494,292,385.45	2.41%
BANK OF COMMERCE	1,716,313,857.28	76,885,958,428.44	2.23%
MAYBANK PHILIPPINES INCORPORATED	1,684,022,869.48	75,635,847,670.17	2.23%
PHIL TRUST COMPANY	1,120,924,013.08	53,513,186,557.88	2.09%
ASIA UNITED BANK CORPORATION	3,140,761,256.03	150,428,168,644.13	2.09%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,670,174,788.13	81,326,329,722.38	2.05%
DEVELOPMENT BANK OF THE PHIL	6,602,579,350.58	330,624,448,474.96	2.00%
SUN SAVINGS BANK INC	24,553,384.53	1,232,265,335.70	1.99%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	36,485,231.94	1,856,866,463.02	1.96%
PHIL NATIONAL BANK	9,211,276,436.89	485,953,221,491.27	1.90%
CENTURY SAVINGS BANK CORPORATION	9,576,010.25	707,549,331.72	1.35%
CTBC BANK (PHILIPPINES) CORP	486,534,090.10	38,328,216,948.88	1.27%
ROBINSONS BANK CORPORATION	837,243,488.25	67,205,209,334.85	1.25%
LAND BANK OF THE PHILIPPINES	10,303,174,785.49	838,748,183,535.24	1.23%
RIZAL COMM'L BANKING CORP	3,687,347,269.88	301,628,052,265.20	1.22%
BANK OF THE PHIL ISLANDS	11,453,165,899.59	1,062,564,415,603.71	1.08%
HSBC SAVINGS BANK(PHILS) INC	39,257,127.28	3,939,406,481.24	1.00%
BDO UNIBANK INC	16,819,459,499.14	1,972,213,472,427.11	0.85%
HONGKONG & SHANGHAI BANKING CORP	496,832,854.33	60,268,298,588.35	0.82%
CHINA BANKING CORP	2,977,677,152.77	422,831,715,307.63	0.70%
METROPOLITAN BANK & TCO	7,311,098,641.93	1,065,954,962,441.97	0.69%
SECURITY BANK CORP	2,617,722,711.70	402,730,418,354.29	0.65%
CITIBANK, N.A.	1,041,410,107.97	221,368,210,180.64	0.47%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	7,096,494.50	1,670,569,677.35	0.42%
KEB HANA BANK - MANILA BRANCH	23,050,217.08	10,090,068,113.05	0.23%
MEGA INT'L COMM'L BANK CO LTD	5,025,000.00	12,257,477,761.68	0.04%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	107,342.00	445,696,276.44	0.02%
ING BANK N.V.	110.04	13,511,114,460.23	0.00%
BANK OF AMERICA N.A.	0.00	10,854,306,917.90	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	11,549,036,719.47	0.00%
BDO PRIVATE BANK, INC.	0.00	6,547,318,042.19	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	4,915,994,218.12	0.00%
DEUTSCHE BANK AG	0.00	26,901,519,389.83	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	1,549,876,653.06	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	3,002,598,176.32	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	875,053,275.00	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	31,427,358,241.49	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	53,059,695,963.31	0.00%
MUFG BANK, LTD.	0.00	39,021,289,105.37	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	32,785,081.01	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,358,852,912.40	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	32,167,293,126.05	0.00%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
Grand Total	156,896,541,337.89	9,500,071,541,873.22	1.65%

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

1. Overseas Filipino Bank (43.20% of TLP)
2. Legazpi Savings Bank (25.23% 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 8.20% of Stockholders Equity as of September 30, 2018.

 

 

 

Philippine Banking System
NPL as % of SE
September 30, 2018
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,200,789,892.72	851,391,260.99	258.49%
ENTERPRISE BANK INC (A THRIFT BANK)	356,405,207.95	262,432,745.24	135.81%
EQUICOM SAVINGS BANK INC	680,239,107.69	720,551,822.22	94.41%
UCPB SAVINGS BANK	1,935,843,102.92	2,676,275,605.64	72.33%
LEGAZPI SAVINGS BANK INC	333,789,458.23	552,479,895.89	60.42%
STERLING BANK OF ASIA INC (A SAVINGS	1,540,579,044.23	2,666,557,786.63	57.77%
PHILIPPINE RESOURCES SAVINGS BANKING	1,335,254,894.57	2,610,782,762.71	51.14%
BATAAN DEVELOPMENT BANK	43,838,647.03	90,981,864.09	48.18%
MARITIME SAVINGS BANK CORPORATION	22,871,486.95	48,057,298.31	47.59%
STANDARD CHARTERED BANK	2,636,355,424.79	6,433,779,518.07	40.98%
BPI DIRECT BANKO INC A SAVINGS BANK	940,487,823.05	2,380,498,023.59	39.51%
UNITED COCONUT PLANTERS BANK	5,788,951,065.80	15,545,284,976.24	37.24%
CHINA BANK SAVINGS INC	3,441,198,508.56	9,665,552,831.21	35.60%
1ST VALLEY BANK INC A DEVELOPMENT BANK	655,178,883.27	1,878,319,702.26	34.88%
BPI FAMILY SAVINGS BANK INC	10,552,134,142.00	31,043,734,154.36	33.99%
RCBC SAVINGS BANK INC	4,323,774,066.58	13,143,447,804.18	32.90%
MALAYAN BANK SAVINGS AND MORT BANK INC	383,863,085.92	1,220,714,583.08	31.45%
NORTHPOINT DEV'T BANK INC	107,859,057.88	359,843,555.03	29.97%
WEALTH DEVELOPMENT BANK CORPORATION	430,079,540.50	1,458,867,818.36	29.48%
PHIL SAVINGS BANK	6,079,237,828.83	21,682,564,108.71	28.04%
PAMPANGA DEVELOPMENT BANK	56,591,647.47	211,695,855.07	26.73%
BANK OF MAKATI (A SAVINGS BANK) INC	2,236,149,315.57	8,949,660,005.21	24.99%
EAST WEST BANKING CORP	9,928,665,998.30	41,562,795,425.71	23.89%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	112,664,915.67	496,026,518.77	22.71%
UNIVERSITY SAVINGS BANK INC	88,980,921.54	415,427,596.89	21.42%
HIYAS BANKING CORPORATION	37,619,784.78	181,211,637.94	20.76%
FIRST CONSOLIDATED BANK INC (A PDB)	972,574,900.13	4,756,374,516.92	20.45%
PNB SAVINGS BANK	2,432,403,665.94	11,968,053,834.19	20.32%
FARMERS SAVINGS & LOAN BANK INC	25,140,440.92	135,104,052.70	18.61%
PHIL BANK OF COMMUNICATIONS	2,227,830,089.40	12,258,856,525.99	18.17%
BUSINESS AND CONSUMERS BANK (A DB)	15,247,805.02	89,251,525.56	17.08%
PRODUCERS SAVINGS BANK CORPORATION	301,475,746.19	1,870,038,125.55	16.12%
CITY SAVINGS BANK INC	2,349,989,074.91	14,602,983,429.47	16.09%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,670,174,788.13	10,692,002,382.23	15.62%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	67,130,689.45	13.91%
CITYSTATE SAVINGS BANK INC	95,397,795.70	695,147,738.58	13.72%
MAYBANK PHILIPPINES INCORPORATED	1,684,022,869.48	12,320,804,298.35	13.67%
DEVELOPMENT BANK OF THE PHIL	6,602,579,350.58	49,692,662,235.85	13.29%
ALLBANK (A THRIFT BANK) INC	127,269,730.63	1,025,352,805.75	12.41%
YUANTA SAVINGS BANK PHILIPPINES INC	107,918,892.35	894,713,556.64	12.06%
MERCHANTS SAVINGS & LOAN ASSN INC	68,439,569.26	577,100,684.96	11.86%
ASIA UNITED BANK CORPORATION	3,140,761,256.03	27,509,878,284.85	11.42%
BANK OF COMMERCE	1,716,313,857.28	15,885,446,788.33	10.80%
CORDILLERA SAVINGS BANK INC	13,267,153.17	126,347,325.60	10.50%
SUN SAVINGS BANK INC	24,553,384.53	234,677,569.27	10.46%
CARD SME BANK INC A THRIFT BANK	113,262,457.07	1,119,003,013.69	10.12%
UNION BANK OF THE PHILS	8,362,824,273.02	83,357,116,245.76	10.03%
INTER-ASIA DEVELOPMENT BANK	8,003,219.40	81,497,365.68	9.82%
BANK ONE SAVINGS CORPORATION	55,495,016.00	614,583,060.89	9.03%
LEMERY SAVINGS & LOAN BANK, INC.	7,744,052.82	88,037,046.62	8.80%
LAND BANK OF THE PHILIPPINES	10,303,174,785.49	124,878,408,978.83	8.25%
PHIL NATIONAL BANK	9,211,276,436.89	115,706,534,484.20	7.96%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	36,485,231.94	499,941,142.92	7.30%
DUMAGUETE CITY DEV BANK INC	19,352,294.27	268,904,371.88	7.20%
PACIFIC ACE SAVINGS BANK INC	5,715,436.00	81,290,976.62	7.03%
CTBC BANK (PHILIPPINES) CORP	486,534,090.10	7,107,330,394.70	6.85%
ROBINSONS BANK CORPORATION	837,243,488.25	12,391,055,517.66	6.76%
PHIL TRUST COMPANY	1,120,924,013.08	20,547,874,035.43	5.46%
BDO UNIBANK INC	16,819,459,499.14	311,051,055,324.27	5.41%
CITIBANK, N.A.	1,041,410,107.97	19,470,788,969.10	5.35%
BANK OF THE PHIL ISLANDS	11,453,165,899.59	244,943,113,583.49	4.68%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,750,058.15	59,188,811.45	4.65%
RIZAL COMM'L BANKING CORP	3,687,347,269.88	83,563,839,192.21	4.41%
LIFE SAVINGS BANK INC	2,826,635.39	71,561,539.54	3.95%
CHINA BANKING CORP	2,977,677,152.77	79,905,698,095.95	3.73%
HONGKONG & SHANGHAI BANKING CORP	496,832,854.33	13,730,780,221.06	3.62%
METROPOLITAN BANK & TCO	7,311,098,641.93	275,498,373,694.06	2.65%
HSBC SAVINGS BANK(PHILS) INC	39,257,127.28	1,501,959,982.97	2.61%
SECURITY BANK CORP	2,617,722,711.70	110,023,121,105.34	2.38%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	7,096,494.50	676,768,697.94	1.05%
CENTURY SAVINGS BANK CORPORATION	9,576,010.25	974,853,448.93	0.98%
KEB HANA BANK - MANILA BRANCH	23,050,217.08	3,181,245,849.38	0.72%
MEGA INT'L COMM'L BANK CO LTD	5,025,000.00	1,874,119,562.22	0.27%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	107,342.00	191,420,267.24	0.06%
ING BANK N.V.	110.04	2,359,925,861.80	0.00%
BANK OF AMERICA N.A.	0.00	2,236,402,418.64	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	10,326,804,753.84	0.00%
BDO PRIVATE BANK, INC.	0.00	5,089,452,595.77	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	5,219,738,763.97	0.00%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	2,151,550,906.66	0.00%
DEUTSCHE BANK AG	0.00	2,306,640,247.77	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	1,994,776,582.76	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,088,229,638.08	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,287,606,650.30	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	688,999,925.11	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	2,280,190,545.36	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,516,835,936.44	0.00%
MUFG BANK, LTD.	0.00	4,868,976,775.54	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	100,903,539.70	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	4,233,575,219.10	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,057,132,001.43	0.00%
Grand Total	156,896,541,337.89	1,912,778,068,868.94	8.20%

 

 

Of the 91 banks in this list, seventeen banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of September 30, 2018.  These banks are as follows:

1. Overseas Filipino Bank (258.49% of SE)
2. Enterprise Bank Inc (135.81% of SE)
3. Equicom Savings Bank Inc (94.41% of SE)
4. UCPB Savings Bank (72.33% of SE)
5. Legazpi Savings Bank (60.42% of SE)
6. Sterling Bank of Asia Inc (57.77% of SE)
7. Philippine Resources Savings Banking Corporation (51.14% of SE)
8. Bataan Development Bank (48.18% of SE)
9. Maritime Savings Bank Corporation (47.59% of SE)
10. Standard Chartered Bank (40.98% of SE)
11. BPI Direct Banko Inc (39.51% of SE)
12. United Coconut Planters Bank (37.24% of SE)
13. China Bank Savings Inc (35.60% of SE)
14. 1st Valley Bank Inc (34.88% of SE)
15. BPI Family Savings Bank Inc (33.99% of SE)
16. RCBC Savings Bank Inc (32.90% of SE)
17. Malayan Bank Savings and Mortgage Bank Inc (31.45% of SE)

Source: www.bsp.gov.ph

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - September 30, 2018

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of June 30, 2018", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 1.91% as of June 30, 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 34 banks (highlighted in yellow, failed banks in red) fall into this deficiency.

 

Philippine Banking System
NPL Coverage Ratio
September 30, 2018
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	429,050,672.43	2,200,789,892.72	19.50%
ALLBANK (A THRIFT BANK) INC	33,943,161.99	127,269,730.63	26.67%
PHILIPPINE RESOURCES SAVINGS BANKING	384,104,649.18	1,335,254,894.57	28.77%
LEMERY SAVINGS & LOAN BANK, INC.	2,245,080.45	7,744,052.82	28.99%
UCPB SAVINGS BANK	567,011,384.46	1,935,843,102.92	29.29%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	22,871,486.95	30.38%
PNB SAVINGS BANK	805,324,872.37	2,432,403,665.94	33.11%
WEALTH DEVELOPMENT BANK CORPORATION	155,828,456.99	430,079,540.50	36.23%
PACIFIC ACE SAVINGS BANK INC	2,123,336.17	5,715,436.00	37.15%
EQUICOM SAVINGS BANK INC	261,892,363.03	680,239,107.69	38.50%
ENTERPRISE BANK INC (A THRIFT BANK)	148,926,171.26	356,405,207.95	41.79%
STERLING BANK OF ASIA INC (A SAVINGS	712,777,155.31	1,540,579,044.23	46.27%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,303,520.97	2,750,058.15	47.40%
1ST VALLEY BANK INC A DEVELOPMENT BANK	322,298,761.39	655,178,883.27	49.19%
BATAAN DEVELOPMENT BANK	21,905,463.47	43,838,647.03	49.97%
UNIVERSITY SAVINGS BANK INC	44,855,430.47	88,980,921.54	50.41%
CITY SAVINGS BANK INC	1,278,143,141.45	2,349,989,074.91	54.39%
RCBC SAVINGS BANK INC	2,384,442,457.66	4,323,774,066.58	55.15%
CHINA BANK SAVINGS INC	1,974,885,653.33	3,441,198,508.56	57.39%
BPI FAMILY SAVINGS BANK INC	6,208,962,899.55	10,552,134,142.00	58.84%
PRODUCERS SAVINGS BANK CORPORATION	178,366,079.27	301,475,746.19	59.16%
PAMPANGA DEVELOPMENT BANK	35,695,784.79	56,591,647.47	63.08%
BUSINESS AND CONSUMERS BANK (A DB)	9,807,832.52	15,247,805.02	64.32%
EAST WEST BANKING CORP	6,664,874,408.99	9,928,665,998.30	67.13%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	24,867,661.97	36,485,231.94	68.16%
FIRST CONSOLIDATED BANK INC (A PDB)	664,965,033.94	972,574,900.13	68.37%
UNITED COCONUT PLANTERS BANK	4,029,910,303.35	5,788,951,065.80	69.61%
BANK OF MAKATI (A SAVINGS BANK) INC	1,598,324,910.06	2,236,149,315.57	71.48%
UNION BANK OF THE PHILS	6,040,061,826.69	8,362,824,273.02	72.23%
PHIL SAVINGS BANK	4,613,120,050.09	6,079,237,828.83	75.88%
HIYAS BANKING CORPORATION	28,859,545.81	37,619,784.78	76.71%
CITYSTATE SAVINGS BANK INC	74,322,686.83	95,397,795.70	77.91%
STANDARD CHARTERED BANK	2,079,910,436.34	2,636,355,424.79	78.89%
BANK ONE SAVINGS CORPORATION	44,360,200.39	55,495,016.00	79.94%
BPI DIRECT BANKO INC A SAVINGS BANK	758,636,217.56	940,487,823.05	80.66%
LEGAZPI SAVINGS BANK INC	269,295,308.41	333,789,458.23	80.68%
SUN SAVINGS BANK INC	20,767,357.87	24,553,384.53	84.58%
RIZAL COMM'L BANKING CORP	3,198,644,715.60	3,687,347,269.88	86.75%
MALAYAN BANK SAVINGS AND MORT BANK INC	344,978,703.57	383,863,085.92	89.87%
ASIA UNITED BANK CORPORATION	2,916,218,326.27	3,140,761,256.03	92.85%
PHIL BANK OF COMMUNICATIONS	2,071,632,660.95	2,227,830,089.40	92.99%
YUANTA SAVINGS BANK PHILIPPINES INC	103,943,371.91	107,918,892.35	96.32%
INTER-ASIA DEVELOPMENT BANK	7,801,138.20	8,003,219.40	97.48%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,659,463,062.38	1,670,174,788.13	99.36%
DUMAGUETE CITY DEV BANK INC	19,299,237.59	19,352,294.27	99.73%
ROBINSONS BANK CORPORATION	869,175,859.43	837,243,488.25	103.81%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	116,963,969.64	112,664,915.67	103.82%
NORTHPOINT DEV'T BANK INC	116,559,202.49	107,859,057.88	108.07%
FARMERS SAVINGS & LOAN BANK INC	27,476,885.73	25,140,440.92	109.29%
DEVELOPMENT BANK OF THE PHIL	7,262,443,464.95	6,602,579,350.58	109.99%
CORDILLERA SAVINGS BANK INC	15,165,504.60	13,267,153.17	114.31%
MERCHANTS SAVINGS & LOAN ASSN INC	78,886,433.96	68,439,569.26	115.26%
SECURITY BANK CORP	3,185,335,132.57	2,617,722,711.70	121.68%
BANK OF COMMERCE	2,188,032,631.22	1,716,313,857.28	127.48%
MAYBANK PHILIPPINES INCORPORATED	2,156,753,376.51	1,684,022,869.48	128.07%
PHIL NATIONAL BANK	12,371,380,234.05	9,211,276,436.89	134.31%
BANK OF THE PHIL ISLANDS	15,415,358,860.40	11,453,165,899.59	134.59%
LAND BANK OF THE PHILIPPINES	15,396,683,001.08	10,303,174,785.49	149.44%
CTBC BANK (PHILIPPINES) CORP	760,381,386.86	486,534,090.10	156.29%
CARD SME BANK INC A THRIFT BANK	179,343,060.47	113,262,457.07	158.34%
CHINA BANKING CORP	5,250,825,862.95	2,977,677,152.77	176.34%
LIFE SAVINGS BANK INC	5,424,695.67	2,826,635.39	191.91%
BDO UNIBANK INC	33,313,727,520.85	16,819,459,499.14	198.07%
CENTURY SAVINGS BANK CORPORATION	19,537,665.62	9,576,010.25	204.03%
METROPOLITAN BANK & TCO	17,528,399,632.04	7,311,098,641.93	239.75%
HSBC SAVINGS BANK(PHILS) INC	103,572,570.73	39,257,127.28	263.83%
METRO CEBU PUBLIC SAVINGS BANK	25,738,098.54	9,340,189.11	275.56%
CITIBANK, N.A.	2,881,557,893.29	1,041,410,107.97	276.70%
PHIL TRUST COMPANY	3,276,793,042.10	1,120,924,013.08	292.33%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	22,468,801.30	7,096,494.50	316.62%
HONGKONG & SHANGHAI BANKING CORP	1,778,392,988.32	496,832,854.33	357.95%
KEB HANA BANK - MANILA BRANCH	96,772,719.47	23,050,217.08	419.83%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	3,250,374.39	107,342.00	3028.05%
MEGA INT'L COMM'L BANK CO LTD	226,379,249.43	5,025,000.00	4505.06%
ING BANK N.V.	94,683,922.69	110.04	86045004.26%
BANK OF AMERICA N.A.	21,994,948.48	0.00	NA
BANK OF CHINA LIMITED-MANILA BRANCH	178,392,364.78	0.00	NA
BDO PRIVATE BANK, INC.	8,960,971.92	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	30,208,542.18	0.00	NA
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	0.00	NA
DEUTSCHE BANK AG	243,015,193.99	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	6,522,440.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	28,590,213.94	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
MIZUHO BANK LTD - MANILA BRANCH	519,938,706.71	0.00	NA
MUFG BANK, LTD.	388,082,494.46	0.00	NA
PHIL STAR DEVELOPMENT BANK INC	413,704.66	0.00	NA
SHINHAN BANK - MANILA BRANCH	28,545,705.05	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	24,055,138.32	0.00	NA
Grand Total	179,471,575,184.69	156,896,541,337.89	114.39%

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
September 30, 2018
Bank	Gross NPLs	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Actual Loan Loss Provisions	Excess/Deficit Loan Loss Provisions	Stockholder's Equity	Impact on SE
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,200,789,892.72	1,760,631,914.18	429,050,672.43	-1,331,581,241.75	851,391,260.99	-156.40%
ENTERPRISE BANK INC (A THRIFT BANK)	356,405,207.95	285,124,166.36	148,926,171.26	-136,197,995.10	262,432,745.24	-51.90%
EQUICOM SAVINGS BANK INC	680,239,107.69	544,191,286.15	261,892,363.03	-282,298,923.12	720,551,822.22	-39.18%
UCPB SAVINGS BANK	1,935,843,102.92	1,548,674,482.34	567,011,384.46	-981,663,097.88	2,676,275,605.64	-36.68%
PHILIPPINE RESOURCES SAVINGS BANKING	1,335,254,894.57	1,068,203,915.66	384,104,649.18	-684,099,266.48	2,610,782,762.71	-26.20%
MARITIME SAVINGS BANK CORPORATION	22,871,486.95	18,297,189.56	6,948,645.24	-11,348,544.32	48,057,298.31	-23.61%
STERLING BANK OF ASIA INC (A SAVINGS	1,540,579,044.23	1,232,463,235.38	712,777,155.31	-519,686,080.07	2,666,557,786.63	-19.49%
BATAAN DEVELOPMENT BANK	43,838,647.03	35,070,917.62	21,905,463.47	-13,165,454.15	90,981,864.09	-14.47%
WEALTH DEVELOPMENT BANK CORPORATION	430,079,540.50	344,063,632.40	155,828,456.99	-188,235,175.41	1,458,867,818.36	-12.90%
1ST VALLEY BANK INC A DEVELOPMENT BANK	655,178,883.27	524,143,106.62	322,298,761.39	-201,844,345.23	1,878,319,702.26	-10.75%
PNB SAVINGS BANK	2,432,403,665.94	1,945,922,932.75	805,324,872.37	-1,140,598,060.38	11,968,053,834.19	-9.53%
RCBC SAVINGS BANK INC	4,323,774,066.58	3,459,019,253.26	2,384,442,457.66	-1,074,576,795.60	13,143,447,804.18	-8.18%
CHINA BANK SAVINGS INC	3,441,198,508.56	2,752,958,806.85	1,974,885,653.33	-778,073,153.52	9,665,552,831.21	-8.05%
BPI FAMILY SAVINGS BANK INC	10,552,134,142.00	8,441,707,313.60	6,208,962,899.55	-2,232,744,414.05	31,043,734,154.36	-7.19%
ALLBANK (A THRIFT BANK) INC	127,269,730.63	101,815,784.50	33,943,161.99	-67,872,622.51	1,025,352,805.75	-6.62%
UNIVERSITY SAVINGS BANK INC	88,980,921.54	71,184,737.23	44,855,430.47	-26,329,306.76	415,427,596.89	-6.34%
PAMPANGA DEVELOPMENT BANK	56,591,647.47	45,273,317.98	35,695,784.79	-9,577,533.19	211,695,855.07	-4.52%
LEMERY SAVINGS & LOAN BANK, INC.	7,744,052.82	6,195,242.26	2,245,080.45	-3,950,161.81	88,037,046.62	-4.49%
CITY SAVINGS BANK INC	2,349,989,074.91	1,879,991,259.93	1,278,143,141.45	-601,848,118.48	14,602,983,429.47	-4.12%
UNITED COCONUT PLANTERS BANK	5,788,951,065.80	4,631,160,852.64	4,029,910,303.35	-601,250,549.29	15,545,284,976.24	-3.87%
PRODUCERS SAVINGS BANK CORPORATION	301,475,746.19	241,180,596.95	178,366,079.27	-62,814,517.68	1,870,038,125.55	-3.36%
EAST WEST BANKING CORP	9,928,665,998.30	7,942,932,798.64	6,664,874,408.99	-1,278,058,389.65	41,562,795,425.71	-3.08%
PACIFIC ACE SAVINGS BANK INC	5,715,436.00	4,572,348.80	2,123,336.17	-2,449,012.63	81,290,976.62	-3.01%
BUSINESS AND CONSUMERS BANK (A DB)	15,247,805.02	12,198,244.02	9,807,832.52	-2,390,411.50	89,251,525.56	-2.68%
FIRST CONSOLIDATED BANK INC (A PDB)	972,574,900.13	778,059,920.10	664,965,033.94	-113,094,886.16	4,756,374,516.92	-2.38%
BANK OF MAKATI (A SAVINGS BANK) INC	2,236,149,315.57	1,788,919,452.46	1,598,324,910.06	-190,594,542.40	8,949,660,005.21	-2.13%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,750,058.15	2,200,046.52	1,303,520.97	-896,525.55	59,188,811.45	-1.51%
PHIL SAVINGS BANK	6,079,237,828.83	4,863,390,263.06	4,613,120,050.09	-250,270,212.97	21,682,564,108.71	-1.15%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	36,485,231.94	29,188,185.55	24,867,661.97	-4,320,523.58	499,941,142.92	-0.86%
UNION BANK OF THE PHILS	8,362,824,273.02	6,690,259,418.42	6,040,061,826.69	-650,197,591.73	83,357,116,245.76	-0.78%
HIYAS BANKING CORPORATION	37,619,784.78	30,095,827.82	28,859,545.81	-1,236,282.01	181,211,637.94	-0.68%
STANDARD CHARTERED BANK	2,636,355,424.79	2,109,084,339.83	2,079,910,436.34	-29,173,903.49	6,433,779,518.07	-0.45%
CITYSTATE SAVINGS BANK INC	95,397,795.70	76,318,236.56	74,322,686.83	-1,995,549.73	695,147,738.58	-0.29%
BANK ONE SAVINGS CORPORATION	55,495,016.00	44,396,012.80	44,360,200.39	-35,812.41	614,583,060.89	-0.01%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	0.00	0.00	0.00	2,151,550,906.66	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	0.00	0.00	2,088,229,638.08	0.00%
BDO PRIVATE BANK, INC.	0.00	0.00	8,960,971.92	8,960,971.92	5,089,452,595.77	0.18%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	0.00	24,055,138.32	24,055,138.32	13,057,132,001.43	0.18%
BPI DIRECT BANKO INC A SAVINGS BANK	940,487,823.05	752,390,258.44	758,636,217.56	6,245,959.12	2,380,498,023.59	0.26%
RIZAL COMM'L BANKING CORP	3,687,347,269.88	2,949,877,815.90	3,198,644,715.60	248,766,899.70	83,563,839,192.21	0.30%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	6,522,440.00	6,522,440.00	1,994,776,582.76	0.33%
LEGAZPI SAVINGS BANK INC	333,789,458.23	267,031,566.58	269,295,308.41	2,263,741.83	552,479,895.89	0.41%
PHIL STAR DEVELOPMENT BANK INC	0.00	0.00	413,704.66	413,704.66	100,903,539.70	0.41%
SUN SAVINGS BANK INC	24,553,384.53	19,642,707.62	20,767,357.87	1,124,650.25	234,677,569.27	0.48%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	0.00	30,208,542.18	30,208,542.18	5,219,738,763.97	0.58%
ISLA BANK(A THRIFT BANK) INC	0.00	0.00	4,290,580.33	4,290,580.33	688,999,925.11	0.62%
SHINHAN BANK - MANILA BRANCH	0.00	0.00	28,545,705.05	28,545,705.05	4,233,575,219.10	0.67%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	0.00	16,000,000.00	16,000,000.00	2,280,190,545.36	0.70%
BANK OF AMERICA N.A.	0.00	0.00	21,994,948.48	21,994,948.48	2,236,402,418.64	0.98%
SECURITY BANK CORP	2,617,722,711.70	2,094,178,169.36	3,185,335,132.57	1,091,156,963.21	110,023,121,105.34	0.99%
CENTURY SAVINGS BANK CORPORATION	9,576,010.25	7,660,808.20	19,537,665.62	11,876,857.42	974,853,448.93	1.22%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	0.00	28,590,213.94	28,590,213.94	2,287,606,650.30	1.25%
DUMAGUETE CITY DEV BANK INC	19,352,294.27	15,481,835.42	19,299,237.59	3,817,402.17	268,904,371.88	1.42%
ASIA UNITED BANK CORPORATION	3,140,761,256.03	2,512,609,004.82	2,916,218,326.27	403,609,321.45	27,509,878,284.85	1.47%
ROBINSONS BANK CORPORATION	837,243,488.25	669,794,790.60	869,175,859.43	199,381,068.83	12,391,055,517.66	1.61%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	107,342.00	85,873.60	3,250,374.39	3,164,500.79	191,420,267.24	1.65%
INTER-ASIA DEVELOPMENT BANK	8,003,219.40	6,402,575.52	7,801,138.20	1,398,562.68	81,497,365.68	1.72%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	0.00	178,392,364.78	178,392,364.78	10,326,804,753.84	1.73%
YUANTA SAVINGS BANK PHILIPPINES INC	107,918,892.35	86,335,113.88	103,943,371.91	17,608,258.03	894,713,556.64	1.97%
PHIL BANK OF COMMUNICATIONS	2,227,830,089.40	1,782,264,071.52	2,071,632,660.95	289,368,589.43	12,258,856,525.99	2.36%
KEB HANA BANK - MANILA BRANCH	23,050,217.08	18,440,173.66	96,772,719.47	78,332,545.81	3,181,245,849.38	2.46%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	7,096,494.50	5,677,195.60	22,468,801.30	16,791,605.70	676,768,697.94	2.48%
BANK OF THE PHIL ISLANDS	11,453,165,899.59	9,162,532,719.67	15,415,358,860.40	6,252,826,140.73	244,943,113,583.49	2.55%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,670,174,788.13	1,336,139,830.50	1,659,463,062.38	323,323,231.88	10,692,002,382.23	3.02%
MALAYAN BANK SAVINGS AND MORT BANK INC	383,863,085.92	307,090,468.74	344,978,703.57	37,888,234.83	1,220,714,583.08	3.10%
CHINA BANKING CORP	2,977,677,152.77	2,382,141,722.22	5,250,825,862.95	2,868,684,140.73	79,905,698,095.95	3.59%
CORDILLERA SAVINGS BANK INC	13,267,153.17	10,613,722.54	15,165,504.60	4,551,782.06	126,347,325.60	3.60%
DEVELOPMENT BANK OF THE PHIL	6,602,579,350.58	5,282,063,480.46	7,262,443,464.95	1,980,379,984.49	49,692,662,235.85	3.99%
ING BANK N.V.	110.04	88.03	94,683,922.69	94,683,834.66	2,359,925,861.80	4.01%
MERCHANTS SAVINGS & LOAN ASSN INC	68,439,569.26	54,751,655.41	78,886,433.96	24,134,778.55	577,100,684.96	4.18%
METROPOLITAN BANK & TCO	7,311,098,641.93	5,848,878,913.54	17,528,399,632.04	11,679,520,718.50	275,498,373,694.06	4.24%
PHIL NATIONAL BANK	9,211,276,436.89	7,369,021,149.51	12,371,380,234.05	5,002,359,084.54	115,706,534,484.20	4.32%
LIFE SAVINGS BANK INC	2,826,635.39	2,261,308.31	5,424,695.67	3,163,387.36	71,561,539.54	4.42%
HSBC SAVINGS BANK(PHILS) INC	39,257,127.28	31,405,701.82	103,572,570.73	72,166,868.91	1,501,959,982.97	4.80%
BANK OF COMMERCE	1,716,313,857.28	1,373,051,085.82	2,188,032,631.22	814,981,545.40	15,885,446,788.33	5.13%
CTBC BANK (PHILIPPINES) CORP	486,534,090.10	389,227,272.08	760,381,386.86	371,154,114.78	7,107,330,394.70	5.22%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	112,664,915.67	90,131,932.54	116,963,969.64	26,832,037.10	496,026,518.77	5.41%
FARMERS SAVINGS & LOAN BANK INC	25,140,440.92	20,112,352.74	27,476,885.73	7,364,532.99	135,104,052.70	5.45%
LAND BANK OF THE PHILIPPINES	10,303,174,785.49	8,242,539,828.39	15,396,683,001.08	7,154,143,172.69	124,878,408,978.83	5.73%
BDO UNIBANK INC	16,819,459,499.14	13,455,567,599.31	33,313,727,520.85	19,858,159,921.54	311,051,055,324.27	6.38%
MAYBANK PHILIPPINES INCORPORATED	1,684,022,869.48	1,347,218,295.58	2,156,753,376.51	809,535,080.93	12,320,804,298.35	6.57%
CARD SME BANK INC A THRIFT BANK	113,262,457.07	90,609,965.66	179,343,060.47	88,733,094.81	1,119,003,013.69	7.93%
MUFG BANK, LTD.	0.00	0.00	388,082,494.46	388,082,494.46	4,868,976,775.54	7.97%
NORTHPOINT DEV'T BANK INC	107,859,057.88	86,287,246.30	116,559,202.49	30,271,956.19	359,843,555.03	8.41%
MIZUHO BANK LTD - MANILA BRANCH	0.00	0.00	519,938,706.71	519,938,706.71	5,516,835,936.44	9.42%
HONGKONG & SHANGHAI BANKING CORP	496,832,854.33	397,466,283.46	1,778,392,988.32	1,380,926,704.86	13,730,780,221.06	10.06%
CITIBANK, N.A.	1,041,410,107.97	833,128,086.38	2,881,557,893.29	2,048,429,806.91	19,470,788,969.10	10.52%
DEUTSCHE BANK AG	0.00	0.00	243,015,193.99	243,015,193.99	2,306,640,247.77	10.54%
PHIL TRUST COMPANY	1,120,924,013.08	896,739,210.46	3,276,793,042.10	2,380,053,831.64	20,547,874,035.43	11.58%
MEGA INT'L COMM'L BANK CO LTD	5,025,000.00	4,020,000.00	226,379,249.43	222,359,249.43	1,874,119,562.22	11.86%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	7,472,151.29	25,738,098.54	18,265,947.25	67,130,689.45	27.21%
Grand Total	156,896,541,337.89	125,517,233,070.31	179,471,575,184.69	53,954,342,114.38	1,912,778,068,868.94	2.82%

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 September 30, 2018".

The most notable of the banks in this list is Overseas Filipino Bank. The bank faces a shortfall of 156.40% of its stated stockholder's equity of Php 851.40 million if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. In short, all of its equity would be wiped out if the bank were to properly account for its losses.