Overstated Capital of Philippine Rural and Cooperative Banks as of December 31, 2018

Overstated Capital

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, four rural banks have Deferred Charges as of December 31, 2018:

1. Rural Bank of Mabalacat Inc (Deferred Charges of 33.54% of SE)
2. Insular Savers Bank Inc (Deferred Charges of 2.89% of SE)
3. Rural Bank of Mabitac (Laguna) Inc (Deferred Charges of 1.64% of SE)
4. Aspac Rural Bank Inc. (Deferred Charges of 0.03% of SE)
   

Retained Earnings

Only two banks have sufficient Retained Earnings (RE) to absorb their unbooked losses as of December 31, 2018

1. Insular Savers Bank Inc (22.88% of RE)
2. Aspac Rural Bank Inc (0.09% of RE)

The two remaining banks do not have sufficient Retained Earnings (RE) to absorb their unbooked losses as of December 31, 2018

1. Rural Bank of Mabitac (Laguna) Inc (-1.26% of RE)
2. Rural Bank of Mabalacat Inc (-177.86% of RE)

The Financial Strength of Philippine Rural and Cooperative Banks according to BSP: From Weakest to Strongest - As of December 31, 2018

Capital Adequacy Ratios:
 
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 Rural and Cooperative Banks (RBs) are well capitalized. As of December 31, 2018, Total CAR is 19.87%, a healthy ratio.

Every quarter, several Philippine RBs do not meet these guidelines. As of December 31, 2018, the RBs that failed to meet BSP's recommended minimum capital requirements are as follows:


 TOTAL CAR:  

1. D'Asian Hills Bank Inc (Total CAR of -3.06)
2. Rural Bank of Mabitac (Laguna) Inc (Total CAR of 5.03)
3. Coop Bank of Benguet (Total CAR of 9.06)

 

TIER ONE CAR

A number of RBs reported a Tier One CAR of 0.00 as of December 31, 2018. These are as follows:

1. Insular Savers Bank
2. Lifebank 
3. MVSM Bank Inc
4. Progressive Bank Inc
5. Rural Bank of San Luis (Pampanga) Inc
6. Summit Bank (Rural Bank of Tublay Inc)

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. D'Asian Hills Bank Inc (Tier One CAR of -3.06)
2. Rural Bank of Mabitac (Laguna) Inc (Tier One CAR of 0.05)
3. Coop Bank of Benguet (Tier One CAR of 4.53)
4. Tanay Rural Bank (Tier One CAR of 5.50)
5. GM Bank of Luzon Inc (Tier One CAR of 8.96)
6. Mt Carmel Rural Bank Inc (Tier One CAR of 9.40)
7. Gateway Rural Bank Inc (Tier One CAR of 9.67)
8. Valiant Bank Inc (Tier Onel CAR of 9.75)

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.  One hundred twenty-three banks reported Tier One CAR of 0.00 as of December 31, 2018. Of those that did report Tier One CAR greater than 0.00, one bank has less than the BSP-recommended Tier One CARs of 10.00:

 

1. Sugbuanon Rural Bank (Tier One CAR of 9.58)

The Total CAR, Tier 1 CAR, and Common Equity Tier 1 CAR of Philippine Rural and Cooperative Banks as of December 31, 2018 is as follows:(Banks that do not meet BSP's minimum capital requirements are highlighted in yellow):

 

 

Philippine Rural Banking System
TOTAL CAR
December 31, 2018
Bank	Type of Bank	Total CAR
D' ASIAN HILLS BANK INC (A RURAL BANK)	RB	-3.06
RB OF MABITAC (LAGUNA) INC	RB	5.03
COOP BANK OF BENGUET (CBB)	RB	9.06
VALIANT BANK INC (A RURAL BANK)	RB	10.72
COOPERATIVE BANK OF BOHOL	RB	10.78
LAGAWE HIGHLANDS RB INC	RB	10.78
TANAY RB INC	RB	11.04
GM BANK OF LUZON INC (A RURAL BANK)	RB	11.10
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	RB	11.50
RB OF SAN MATEO(ISABELA) INC	RB	11.95
RB OF SAN PASCUAL(OBANDO BULACAN)INC	RB	12.49
RB OF MABALACAT INC	RB	12.76
RB OF GATTARAN (CAGAYAN) INC	RB	12.82
VILLAGE BANK INC (A RURAL BANK)	RB	13.00
RB OF LEBAK (SULTAN KUDARAT) INC	RB	13.01
SUMMIT BANK (RB OF TUBLAY INC)	RB	13.03
GATEWAY RURAL BANK INC	RB	13.08
MT CARMEL RURAL BANK INC	RB	13.08
RB OF MARAGONDON INC	RB	13.27
MALLIG PLAINS RURAL BANK (ISABELA) INC	RB	13.32
GRAND-AGRI RURAL BANK	RB	13.36
RB OF POZORRUBIO INC	RB	13.39
COMMTY RB OF CATMON (CEBU) INC	RB	13.54
RB OF JAEN INC	RB	13.70
ENTREPRENEUR RB INC	RB	13.97
CANTILAN BANK INC (A RURAL BANK)	RB	13.99
ILOCOS CONSOLIDATED COOPERATIVE BANK	RB	14.11
QUEZON CAPITAL RB INC	RB	14.11
BENGUET CENTER BANK INC A RB	RB	14.12
LIBERTY BANK (A RURAL BANK) INC	RB	14.32
RB OF BAMBANG (NUEVA VIZCAYA) INC	RB	14.38
PROGRESSIVE BANK INC (PROGRESSIVE A RURAL BANK INC)	RB	14.43
COOP BANK OF CAGAYAN	RB	14.95
SOUTH BANK (A RURAL BANK) INC	RB	15.17
RB OF DUMANGAS INC	RB	15.26
RB OF MAGDALENA (LAGUNA) INC	RB	15.28
RB OF TANGUB CITY (MIS OCC) INC	RB	15.38
RB OF BAY INC	RB	15.53
RB OF CARDONA (RIZAL) INC	RB	15.55
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE RURAL BANK)	RB	15.57
MVSM BANK (A RURAL BANK SINCE 1953) INC	RB	15.82
RB OF PILAR (SORSOGON) INC	RB	15.94
GOLDEN RURAL BANK OF THE PHILIPPINES INC	RB	16.02
PBCOM RURAL BANK INC	RB	16.11
ALIAGA FARMERS RURAL BANK INC	RB	16.25
COUNTRY BUILDERS BANK INC (A RURAL BANK)	RB	16.29
KATIPUNAN BANK INC "A RURAL BANK"	RB	16.61
ONE NETWORK BANK INC (A RURAL BANK OF BDO)	RB	16.65
BOF INC (A RURAL BANK)	RB	16.67
RB OF ROSARIO (LA UNION) INC	RB	16.67
RB OF ITOGON (BENGUET) INC	RB	16.87
PLANBANK "RB OF CANLUBANG PLANTERS INC"	RB	17.41
NEW RB OF SAN LEONARDO(N.E.) INC	RB	17.48
RB OF GUINOBATAN INC	RB	17.52
EAST WEST RURAL BANK INC	RB	17.64
RB OF DIGOS INC	RB	17.65
BANGKO MABUHAY (A RURAL BANK) INC	RB	17.67
SAVIOUR RURAL BANK INC	RB	17.68
CONSOLIDATED COOPERATIVE BANK	RB	17.82
METRO SOUTH COOP BANK	RB	17.97
ASPAC RURAL BANK INC	RB	18.10
RB OF CAUAYAN INC	RB	18.16
CENTURY RURAL BANK INC	RB	18.29
COOP BANK OF QUEZON PROVINCE	RB	18.30
CAMALIG BANK INC (A RURAL BANK)	RB	18.50
CARD MRI RIZAL BANK INC A MICROFINANCE-ORIENTED RURAL BANK	RB	18.66
AGRIBUSINESS RURAL BANK INC	RB	18.93
COMMON WEALTH RURAL BANK INC	RB	19.28
RB OF DOLORES (QUEZON) INC	RB	19.29
RB OF ANGELES INC	RB	19.51
FIRST ISABELA COOP BANK INC(FICOBANK)	RB	19.57
RB OF PARACALE(CAMARINES NORTE) INC	RB	19.59
COOPERATIVE BANK OF NUEVA VIZCAYA	RB	19.73
RB OF PANDI (BULACAN) INC	RB	19.73
RB OF PORAC (PAMPANGA) INC	RB	19.78
RB OF GENERAL TRIAS INC	RB	19.89
STA MARIA RURAL BANK INC	RB	19.95
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	RB	20.04
RB OF RIZAL (ZAMBOANGA DEL NORTE) INC	RB	20.07
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	RB	20.34
MACTAN RURAL BANK (LAPU-LAPU CITY) INC	RB	20.43
CARD BANK INC (A MF RB)	RB	20.63
RANG-AY BANK INC (A RURAL BANK)	RB	20.64
GUAGUA RURAL BANK INC	RB	20.67
BANKWAYS INC (A RURAL BANK)	RB	21.55
CEBUANA LHUILLIER RB INC	RB	21.67
HIGHLAND RURAL BANK INC	RB	21.68
COMMTY RB OF DAPITAN CITY INC	RB	21.84
MALARAYAT RB INC	RB	22.23
RB OF STA IGNACIA INC	RB	22.29
RB OF MONTALBAN INC	RB	22.55
BANGKO MONTANOSA INC (A RURAL BANK)	RB	22.73
RB OF PILAR (BATAAN) INC	RB	24.19
BANCO LAGUNA INC (A RURAL BANK SINCE 1965)	RB	24.30
RB OF SAN LUIS (PAMPANGA) INC	RB	24.34
RURAL BANK OF PLACER (SURIGAO DEL NORTE) INC	RB	24.38
BANCO SANTIAGO DE LIBON INC	RB	24.75
RB OF BAGABAG (N.V.)INC	RB	25.08
MARAYO BANK INC (A RURAL BANK)	RB	25.52
FIRST TAGUM RURAL BANK INC	RB	25.56
GUAGUA SAVERS BANK(A RB) INC	RB	25.80
BALANGA RURAL BANK, INC.	RB	26.05
RB OF MIAGAO (ILOILO) INC	RB	26.15
IMUS RURAL BANK INC	RB	26.96
COOP BANK OF COTABATO	RB	27.04
RB OF BAYOMBONG INC	RB	27.12
RURAL BANK OF SAN ANTONIO INC	RB	27.13
RB OF BARILI (CEBU) INC	RB	27.26
LIFEBANK- A RURAL BANK	RB	27.74
RBT BANK INC A RURAL BANK	RB	27.79
AMA RURAL BANK OF MANDALUYONG INC	RB	28.89
SUGBUANON RB INC	RB	29.02
RBG IMPERIAL BANK INC(A RURAL BANK)	RB	29.35
RB OF DULAG (LEYTE) INC	RB	29.93
RB OF BROOKE'S POINT (PALAWAN) INC	RB	31.04
MOUNT MAKILING RURAL BANK INC	RB	31.46
SECURED BANK INC (A RB)	RB	31.61
RB OF ALABEL (SARANGANI) INC	RB	31.84
INSULAR SAVERS BANK INC (A RURAL BANK)	RB	32.05
RB OF MARIA AURORA (AURORA) INC	RB	33.72
RB OF SOLANO (NUEVA VIZCAYA) INC	RB	35.37
NATIONAL TEACHERS & EMP. COOP BANK	RB	36.02
RB OF GLORIA (OR MIN) INC	RB	36.82
BANGKO CARRASCAL INC (A RB)	RB	37.53
RB OF MIDSAYAP INC	RB	38.52
DUNGGANON BANK (A MICROFINANCE RURAL BANK) INC	RB	39.40
RNG COASTAL BANK INC(A RURAL BANK)	RB	39.66
BHF RURAL BANK INC	RB	40.31
ARDCIBANK INC A RURAL BANK	RB	43.87
LAGUNA PRESTIGE BANKING CORPORATION (A RURAL BANK)	RB	44.72
MANOR BANK - A RURAL BANK CORP	RB	45.34
RB OF STA ROSA DE LIMA (PANIQUI TARLAC) INC	RB	52.32
RB OF ANTIPOLO INC	RB	55.82
FILIDIAN RURAL BANK OF ANTIPOLO INC	RB	58.07
CAVITE UNITED RURAL BANK CORP	RB	69.28
INNOVATIVE BANK INC (A RURAL BANK)	RB	190.20
RB OF POLA (ORIENTAL MINDORO) INC	RB	289.24

 

 

 

Philippine Rural Banking System
Tier 1 CAR
December 31, 2018
Bank	Type of Bank	Tier 1 CAR
D' ASIAN HILLS BANK INC (A RURAL BANK)	RB	-3.06
INSULAR SAVERS BANK INC (A RURAL BANK)	RB	0.00
LIFEBANK- A RURAL BANK	RB	0.00
MVSM BANK (A RURAL BANK SINCE 1953) INC	RB	0.00
PROGRESSIVE BANK INC (PROGRESSIVE A RURAL BANK INC)	RB	0.00
RB OF SAN LUIS (PAMPANGA) INC	RB	0.00
SUMMIT BANK (RB OF TUBLAY INC)	RB	0.00
RB OF MABITAC (LAGUNA) INC	RB	0.05
COOP BANK OF BENGUET (CBB)	RB	4.53
TANAY RB INC	RB	5.50
GM BANK OF LUZON INC (A RURAL BANK)	RB	8.96
MT CARMEL RURAL BANK INC	RB	9.40
GATEWAY RURAL BANK INC	RB	9.67
VALIANT BANK INC (A RURAL BANK)	RB	9.75
SUGBUANON RB INC	RB	10.12
LAGAWE HIGHLANDS RB INC	RB	10.25
COOPERATIVE BANK OF BOHOL	RB	10.43
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	RB	10.88
RB OF SAN MATEO(ISABELA) INC	RB	11.51
RB OF SAN PASCUAL(OBANDO BULACAN)INC	RB	11.84
RB OF LEBAK (SULTAN KUDARAT) INC	RB	12.16
VILLAGE BANK INC (A RURAL BANK)	RB	12.68
RB OF MABALACAT INC	RB	12.71
GRAND-AGRI RURAL BANK	RB	12.76
MALLIG PLAINS RURAL BANK (ISABELA) INC	RB	12.80
RB OF GATTARAN (CAGAYAN) INC	RB	12.81
COMMTY RB OF CATMON (CEBU) INC	RB	13.01
RB OF JAEN INC	RB	13.17
EAST WEST RURAL BANK INC	RB	13.19
RB OF MARAGONDON INC	RB	13.23
QUEZON CAPITAL RB INC	RB	13.36
ILOCOS CONSOLIDATED COOPERATIVE BANK	RB	13.47
RB OF BAMBANG (NUEVA VIZCAYA) INC	RB	13.55
ENTREPRENEUR RB INC	RB	13.61
BENGUET CENTER BANK INC A RB	RB	13.72
LIBERTY BANK (A RURAL BANK) INC	RB	13.96
PBCOM RURAL BANK INC	RB	14.51
SOUTH BANK (A RURAL BANK) INC	RB	14.55
CARD BANK INC (A MF RB)	RB	14.58
RB OF BAY INC	RB	14.90
RB OF MAGDALENA (LAGUNA) INC	RB	15.02
RB OF CARDONA (RIZAL) INC	RB	15.11
NEW RB OF SAN LEONARDO(N.E.) INC	RB	15.32
ALIAGA FARMERS RURAL BANK INC	RB	15.67
BOF INC (A RURAL BANK)	RB	15.67
ONE NETWORK BANK INC (A RURAL BANK OF BDO)	RB	15.82
KATIPUNAN BANK INC "A RURAL BANK"	RB	15.95
RB OF ITOGON (BENGUET) INC	RB	16.50
CARD MRI RIZAL BANK INC A MICROFINANCE-ORIENTED RURAL BANK	RB	16.68
RB OF GUINOBATAN INC	RB	16.76
PLANBANK "RB OF CANLUBANG PLANTERS INC"	RB	16.80
RB OF DIGOS INC	RB	17.00
COUNTRY BUILDERS BANK INC (A RURAL BANK)	RB	17.01
METRO SOUTH COOP BANK	RB	17.03
CAMALIG BANK INC (A RURAL BANK)	RB	17.30
BANGKO MABUHAY (A RURAL BANK) INC	RB	17.49
RB OF CAUAYAN INC	RB	17.75
CENTURY RURAL BANK INC	RB	17.76
ASPAC RURAL BANK INC	RB	17.82
RB OF MONTALBAN INC	RB	18.04
SAVIOUR RURAL BANK INC	RB	18.73
AGRIBUSINESS RURAL BANK INC	RB	18.93
RB OF PORAC (PAMPANGA) INC	RB	18.95
FIRST ISABELA COOP BANK INC(FICOBANK)	RB	18.96
RB OF PARACALE(CAMARINES NORTE) INC	RB	18.98
RB OF PANDI (BULACAN) INC	RB	19.22
RB OF ANGELES INC	RB	19.40
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	RB	19.57
STA MARIA RURAL BANK INC	RB	19.66
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	RB	19.68
MACTAN RURAL BANK (LAPU-LAPU CITY) INC	RB	19.81
GUAGUA RURAL BANK INC	RB	20.32
RANG-AY BANK INC (A RURAL BANK)	RB	20.40
BANKWAYS INC (A RURAL BANK)	RB	20.70
COMMTY RB OF DAPITAN CITY INC	RB	21.25
HIGHLAND RURAL BANK INC	RB	21.34
CEBUANA LHUILLIER RB INC	RB	21.37
RB OF STA IGNACIA INC	RB	21.48
BANGKO MONTANOSA INC (A RURAL BANK)	RB	22.43
FIRST TAGUM RURAL BANK INC	RB	23.62
RURAL BANK OF PLACER (SURIGAO DEL NORTE) INC	RB	23.95
RB OF PILAR (BATAAN) INC	RB	23.97
BANCO SANTIAGO DE LIBON INC	RB	24.00
RB OF BAGABAG (N.V.)INC	RB	24.50
MALARAYAT RB INC	RB	25.20
BALANGA RURAL BANK, INC.	RB	25.52
RB OF MIAGAO (ILOILO) INC	RB	25.81
COOP BANK OF COTABATO	RB	26.25
RURAL BANK OF SAN ANTONIO INC	RB	26.30
RB OF BAYOMBONG INC	RB	26.81
RBT BANK INC A RURAL BANK	RB	27.23
AMA RURAL BANK OF MANDALUYONG INC	RB	27.30
RB OF POZORRUBIO INC	RB	28.97
RBG IMPERIAL BANK INC(A RURAL BANK)	RB	28.97
RB OF BROOKE'S POINT (PALAWAN) INC	RB	30.57
SECURED BANK INC (A RB)	RB	30.70
MOUNT MAKILING RURAL BANK INC	RB	30.99
RB OF ALABEL (SARANGANI) INC	RB	31.00
RB OF MARIA AURORA (AURORA) INC	RB	32.95
RB OF SOLANO (NUEVA VIZCAYA) INC	RB	34.70
NATIONAL TEACHERS & EMP. COOP BANK	RB	35.29
BANGKO CARRASCAL INC (A RB)	RB	36.83
DUNGGANON BANK (A MICROFINANCE RURAL BANK) INC	RB	38.83
RNG COASTAL BANK INC(A RURAL BANK)	RB	39.33
ARDCIBANK INC A RURAL BANK	RB	43.46
LAGUNA PRESTIGE BANKING CORPORATION (A RURAL BANK)	RB	44.22
RB OF STA ROSA DE LIMA (PANIQUI TARLAC) INC	RB	52.16
COOP BANK OF CAGAYAN	RB	56.47
FILIDIAN RURAL BANK OF ANTIPOLO INC	RB	57.78
GOLDEN RURAL BANK OF THE PHILIPPINES INC	RB	64.04
RB OF ROSARIO (LA UNION) INC	RB	64.63
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE RURAL BANK)	RB	67.86
CAVITE UNITED RURAL BANK CORP	RB	69.28
RB OF PILAR (SORSOGON) INC	RB	72.47
RB OF DOLORES (QUEZON) INC	RB	72.94
GUAGUA SAVERS BANK(A RB) INC	RB	74.21
RB OF TANGUB CITY (MIS OCC) INC	RB	85.84
RB OF DUMANGAS INC	RB	86.32
RB OF MIDSAYAP INC	RB	93.27
COOPERATIVE BANK OF NUEVA VIZCAYA	RB	93.64
COMMON WEALTH RURAL BANK INC	RB	96.59
RB OF ANTIPOLO INC	RB	98.55
BHF RURAL BANK INC	RB	99.13
RB OF DULAG (LEYTE) INC	RB	100.10
RB OF GLORIA (OR MIN) INC	RB	102.10
COOP BANK OF QUEZON PROVINCE	RB	103.45
MANOR BANK - A RURAL BANK CORP	RB	113.13
BANCO LAGUNA INC (A RURAL BANK SINCE 1965)	RB	114.09
RB OF GENERAL TRIAS INC	RB	118.13
RB OF RIZAL (ZAMBOANGA DEL NORTE) INC	RB	153.20
IMUS RURAL BANK INC	RB	217.59
CONSOLIDATED COOPERATIVE BANK	RB	220.87
RB OF POLA (ORIENTAL MINDORO) INC	RB	287.01
CANTILAN BANK INC (A RURAL BANK)	RB	309.19
RB OF BARILI (CEBU) INC	RB	338.79
INNOVATIVE BANK INC (A RURAL BANK)	RB	354.50
MARAYO BANK INC (A RURAL BANK)	RB	570.23

 

 

 

Philippine Rural Banking System
Common Tier 1 Ratio
December 31, 2018
Bank	Type of Bank	Common Tier 1 Ratio
AGRIBUSINESS RURAL BANK INC	RB	0.00
ALIAGA FARMERS RURAL BANK INC	RB	0.00
AMA RURAL BANK OF MANDALUYONG INC	RB	0.00
ARDCIBANK INC A RURAL BANK	RB	0.00
ASPAC RURAL BANK INC	RB	0.00
BALANGA RURAL BANK, INC.	RB	0.00
BANCO LAGUNA INC (A RURAL BANK SINCE 1965)	RB	0.00
BANCO SANTIAGO DE LIBON INC	RB	0.00
BANGKO CARRASCAL INC (A RB)	RB	0.00
BANGKO MABUHAY (A RURAL BANK) INC	RB	0.00
BANGKO MONTANOSA INC (A RURAL BANK)	RB	0.00
BANKWAYS INC (A RURAL BANK)	RB	0.00
BENGUET CENTER BANK INC A RB	RB	0.00
BHF RURAL BANK INC	RB	0.00
BOF INC (A RURAL BANK)	RB	0.00
CAMALIG BANK INC (A RURAL BANK)	RB	0.00
CANTILAN BANK INC (A RURAL BANK)	RB	0.00
CARD BANK INC (A MF RB)	RB	0.00
CARD MRI RIZAL BANK INC A MICROFINANCE-ORIENTED RURAL BANK	RB	0.00
CEBUANA LHUILLIER RB INC	RB	0.00
CENTURY RURAL BANK INC	RB	0.00
COMMON WEALTH RURAL BANK INC	RB	0.00
COMMTY RB OF CATMON (CEBU) INC	RB	0.00
COMMTY RB OF DAPITAN CITY INC	RB	0.00
CONSOLIDATED COOPERATIVE BANK	RB	0.00
COOP BANK OF BENGUET (CBB)	RB	0.00
COOP BANK OF CAGAYAN	RB	0.00
COOP BANK OF COTABATO	RB	0.00
COOP BANK OF QUEZON PROVINCE	RB	0.00
COOPERATIVE BANK OF BOHOL	RB	0.00
COOPERATIVE BANK OF NUEVA VIZCAYA	RB	0.00
COUNTRY BUILDERS BANK INC (A RURAL BANK)	RB	0.00
D' ASIAN HILLS BANK INC (A RURAL BANK)	RB	0.00
DUNGGANON BANK (A MICROFINANCE RURAL BANK) INC	RB	0.00
ENTREPRENEUR RB INC	RB	0.00
FILIDIAN RURAL BANK OF ANTIPOLO INC	RB	0.00
FIRST ISABELA COOP BANK INC(FICOBANK)	RB	0.00
FIRST TAGUM RURAL BANK INC	RB	0.00
GATEWAY RURAL BANK INC	RB	0.00
GM BANK OF LUZON INC (A RURAL BANK)	RB	0.00
GOLDEN RURAL BANK OF THE PHILIPPINES INC	RB	0.00
GRAND-AGRI RURAL BANK	RB	0.00
GUAGUA RURAL BANK INC	RB	0.00
GUAGUA SAVERS BANK(A RB) INC	RB	0.00
HIGHLAND RURAL BANK INC	RB	0.00
ILOCOS CONSOLIDATED COOPERATIVE BANK	RB	0.00
IMUS RURAL BANK INC	RB	0.00
INNOVATIVE BANK INC (A RURAL BANK)	RB	0.00
INSULAR SAVERS BANK INC (A RURAL BANK)	RB	0.00
KATIPUNAN BANK INC "A RURAL BANK"	RB	0.00
LAGAWE HIGHLANDS RB INC	RB	0.00
LAGUNA PRESTIGE BANKING CORPORATION (A RURAL BANK)	RB	0.00
LIBERTY BANK (A RURAL BANK) INC	RB	0.00
LIFEBANK- A RURAL BANK	RB	0.00
MACTAN RURAL BANK (LAPU-LAPU CITY) INC	RB	0.00
MALARAYAT RB INC	RB	0.00
MALLIG PLAINS RURAL BANK (ISABELA) INC	RB	0.00
MANOR BANK - A RURAL BANK CORP	RB	0.00
MARAYO BANK INC (A RURAL BANK)	RB	0.00
METRO SOUTH COOP BANK	RB	0.00
MOUNT MAKILING RURAL BANK INC	RB	0.00
MT CARMEL RURAL BANK INC	RB	0.00
MVSM BANK (A RURAL BANK SINCE 1953) INC	RB	0.00
NATIONAL TEACHERS & EMP. COOP BANK	RB	0.00
NEW RB OF SAN LEONARDO(N.E.) INC	RB	0.00
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	RB	0.00
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE RURAL BANK)	RB	0.00
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	RB	0.00
PLANBANK "RB OF CANLUBANG PLANTERS INC"	RB	0.00
PROGRESSIVE BANK INC (PROGRESSIVE A RURAL BANK INC)	RB	0.00
QUEZON CAPITAL RB INC	RB	0.00
RANG-AY BANK INC (A RURAL BANK)	RB	0.00
RB OF ALABEL (SARANGANI) INC	RB	0.00
RB OF ANGELES INC	RB	0.00
RB OF ANTIPOLO INC	RB	0.00
RB OF BAGABAG (N.V.)INC	RB	0.00
RB OF BAMBANG (NUEVA VIZCAYA) INC	RB	0.00
RB OF BARILI (CEBU) INC	RB	0.00
RB OF BAY INC	RB	0.00
RB OF BAYOMBONG INC	RB	0.00
RB OF BROOKE'S POINT (PALAWAN) INC	RB	0.00
RB OF CARDONA (RIZAL) INC	RB	0.00
RB OF CAUAYAN INC	RB	0.00
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	RB	0.00
RB OF DIGOS INC	RB	0.00
RB OF DOLORES (QUEZON) INC	RB	0.00
RB OF DULAG (LEYTE) INC	RB	0.00
RB OF DUMANGAS INC	RB	0.00
RB OF GATTARAN (CAGAYAN) INC	RB	0.00
RB OF GENERAL TRIAS INC	RB	0.00
RB OF GLORIA (OR MIN) INC	RB	0.00
RB OF GUINOBATAN INC	RB	0.00
RB OF ITOGON (BENGUET) INC	RB	0.00
RB OF JAEN INC	RB	0.00
RB OF LEBAK (SULTAN KUDARAT) INC	RB	0.00
RB OF MABALACAT INC	RB	0.00
RB OF MABITAC (LAGUNA) INC	RB	0.00
RB OF MAGDALENA (LAGUNA) INC	RB	0.00
RB OF MARAGONDON INC	RB	0.00
RB OF MARIA AURORA (AURORA) INC	RB	0.00
RB OF MIAGAO (ILOILO) INC	RB	0.00
RB OF MIDSAYAP INC	RB	0.00
RB OF MONTALBAN INC	RB	0.00
RB OF PANDI (BULACAN) INC	RB	0.00
RB OF PARACALE(CAMARINES NORTE) INC	RB	0.00
RB OF PILAR (BATAAN) INC	RB	0.00
RB OF PILAR (SORSOGON) INC	RB	0.00
RB OF POLA (ORIENTAL MINDORO) INC	RB	0.00
RB OF PORAC (PAMPANGA) INC	RB	0.00
RB OF POZORRUBIO INC	RB	0.00
RB OF RIZAL (ZAMBOANGA DEL NORTE) INC	RB	0.00
RB OF ROSARIO (LA UNION) INC	RB	0.00
RB OF SAN LUIS (PAMPANGA) INC	RB	0.00
RB OF SAN MATEO(ISABELA) INC	RB	0.00
RB OF SAN PASCUAL(OBANDO BULACAN)INC	RB	0.00
RB OF SOLANO (NUEVA VIZCAYA) INC	RB	0.00
RB OF STA IGNACIA INC	RB	0.00
RB OF STA ROSA DE LIMA (PANIQUI TARLAC) INC	RB	0.00
RB OF TANGUB CITY (MIS OCC) INC	RB	0.00
RBG IMPERIAL BANK INC(A RURAL BANK)	RB	0.00
RBT BANK INC A RURAL BANK	RB	0.00
RNG COASTAL BANK INC(A RURAL BANK)	RB	0.00
RURAL BANK OF PLACER (SURIGAO DEL NORTE) INC	RB	0.00
RURAL BANK OF SAN ANTONIO INC	RB	0.00
SAVIOUR RURAL BANK INC	RB	0.00
SECURED BANK INC (A RB)	RB	0.00
SOUTH BANK (A RURAL BANK) INC	RB	0.00
STA MARIA RURAL BANK INC	RB	0.00
SUMMIT BANK (RB OF TUBLAY INC)	RB	0.00
TANAY RB INC	RB	0.00
VALIANT BANK INC (A RURAL BANK)	RB	0.00
VILLAGE BANK INC (A RURAL BANK)	RB	0.00
SUGBUANON RB INC	RB	9.58
EAST WEST RURAL BANK INC	RB	13.19
PBCOM RURAL BANK INC	RB	14.51
ONE NETWORK BANK INC (A RURAL BANK OF BDO)	RB	15.82
CAVITE UNITED RURAL BANK CORP	RB	69.28

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

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of December 31, 2018", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (TLP), which stood at 1.26% as of December 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 34 banks (highlighted in yellow, failed banks in red) fall into this deficiency.

 

Philippine Banking System
NPL Coverage Ratio
December 31, 2018
Bank	Loan Loss Provisions	Gross NPLs	NPL Coverage Ratio
UCPB SAVINGS BANK	586,168,305.86	2,520,179,947.97	23.26%
PACIFIC ACE SAVINGS BANK INC	2,348,484.84	7,984,007.00	29.41%
MARITIME SAVINGS BANK CORPORATION	6,948,645.24	22,037,335.09	31.53%
EQUICOM SAVINGS BANK INC	241,713,735.53	678,665,503.25	35.62%
WEALTH DEVELOPMENT BANK CORPORATION	162,085,067.38	425,898,417.61	38.06%
ASIA UNITED BANK CORPORATION	1,101,213,227.88	2,843,723,749.05	38.72%
LUZON DEVELOPMENT BANK	217,112,698.31	511,816,689.86	42.42%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	633,695,238.36	1,479,597,307.93	42.83%
PNB SAVINGS BANK	1,112,566,622.49	2,489,981,239.03	44.68%
PRODUCERS SAVINGS BANK CORPORATION	174,370,395.80	369,105,717.33	47.24%
QUEZON COCONUT BANK INC (A THRIFT BANK)	1,303,520.97	2,662,507.14	48.96%
RCBC SAVINGS BANK INC	2,258,272,487.07	4,538,925,881.88	49.75%
BPI FAMILY SAVINGS BANK INC	5,828,635,522.01	11,106,593,641.57	52.48%
CHINA BANK SAVINGS INC	1,852,672,792.44	3,487,278,553.65	53.13%
PHIL SAVINGS BANK	3,524,948,822.74	6,615,926,206.09	53.28%
ALLBANK (A THRIFT BANK) INC	32,418,962.81	58,307,833.04	55.60%
PAMPANGA DEVELOPMENT BANK	32,638,326.43	58,019,633.67	56.25%
LEMERY SAVINGS & LOAN BANK, INC.	3,226,233.46	5,620,497.35	57.40%
1ST VALLEY BANK INC A DEVELOPMENT BANK	314,268,918.97	545,183,711.79	57.64%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	20,709,613.77	34,853,596.58	59.42%
ENTERPRISE BANK INC (A THRIFT BANK)	206,217,463.29	334,690,957.76	61.61%
CITYSTATE SAVINGS BANK INC	74,322,686.83	116,312,839.73	63.90%
BATAAN DEVELOPMENT BANK	22,420,075.55	34,980,091.08	64.09%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,000,583,422.40	1,556,381,247.87	64.29%
FARMERS SAVINGS & LOAN BANK INC	26,526,351.09	41,255,102.82	64.30%
DUMAGUETE CITY DEV BANK INC	19,299,237.59	29,686,507.43	65.01%
EAST WEST BANKING CORP	6,783,668,064.65	10,239,430,293.81	66.25%
BUSINESS AND CONSUMERS BANK (A DB)	9,629,770.26	14,297,923.05	67.35%
LIFE SAVINGS BANK INC	5,424,695.67	7,909,027.36	68.59%
BANK OF MAKATI (A SAVINGS BANK) INC	1,416,211,879.00	2,061,100,494.13	68.71%
UNION BANK OF THE PHILS	6,376,143,862.37	8,681,263,266.47	73.45%
FIRST CONSOLIDATED BANK INC (A PDB)	702,400,198.51	937,301,137.75	74.94%
STANDARD CHARTERED BANK	1,988,192,954.24	2,613,663,314.20	76.07%
MALAYAN BANK SAVINGS AND MORT BANK INC	176,590,880.31	232,068,015.56	76.09%
HIYAS BANKING CORPORATION	23,858,848.68	28,152,649.56	84.75%
LEGAZPI SAVINGS BANK INC	276,759,960.86	325,749,920.79	84.96%
SUN SAVINGS BANK INC	18,733,181.51	21,977,627.97	85.24%
BANK ONE SAVINGS CORPORATION	44,360,200.39	50,920,016.00	87.12%
RIZAL COMM'L BANKING CORP	3,354,013,913.93	3,778,814,274.91	88.76%
BPI DIRECT BANKO INC A SAVINGS BANK	711,470,070.69	797,910,869.09	89.17%
UNIVERSITY SAVINGS BANK INC	38,806,861.19	41,532,383.06	93.44%
YUANTA SAVINGS BANK PHILIPPINES INC	100,931,349.56	105,709,543.16	95.48%
INTER-ASIA DEVELOPMENT BANK	7,309,690.80	7,591,147.82	96.29%
PHIL BANK OF COMMUNICATIONS	2,167,506,753.56	2,204,146,296.88	98.34%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,706,381,776.70	1,654,529,173.88	103.13%
NORTHPOINT DEV'T BANK INC	101,947,108.84	98,818,586.90	103.17%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	112,139,598.46	104,417,002.42	107.40%
DEVELOPMENT BANK OF THE PHIL	7,133,850,586.50	6,424,374,586.99	111.04%
MERCHANTS SAVINGS & LOAN ASSN INC	79,682,059.26	70,743,639.74	112.63%
SECURITY BANK CORP	3,161,010,688.45	2,796,885,255.23	113.02%
CORDILLERA SAVINGS BANK INC	14,379,069.48	12,123,604.31	118.60%
BANK OF THE PHIL ISLANDS	15,839,711,208.04	13,052,121,266.84	121.36%
CTBC BANK (PHILIPPINES) CORP	815,157,667.55	632,988,633.22	128.78%
MAYBANK PHILIPPINES INCORPORATED	2,319,584,041.63	1,639,158,444.58	141.51%
ROBINSONS BANK CORPORATION	1,054,220,185.44	730,058,854.95	144.40%
BANK OF COMMERCE	2,321,448,605.10	1,574,874,658.91	147.41%
CARD SME BANK INC A THRIFT BANK	209,329,524.53	135,584,638.32	154.39%
PHIL NATIONAL BANK	14,824,944,768.63	9,449,896,609.90	156.88%
LAND BANK OF THE PHILIPPINES	15,765,027,265.62	9,134,879,593.32	172.58%
CHINA BANKING CORP	5,018,293,472.15	2,672,209,854.94	187.80%
CENTURY SAVINGS BANK CORPORATION	19,537,665.62	9,670,265.48	202.04%
BDO UNIBANK INC	37,125,293,082.34	17,108,039,954.27	217.00%
PHIL STAR DEVELOPMENT BANK INC	9,482,646.07	4,367,377.11	217.12%
METROPOLITAN BANK & TCO	17,762,616,961.78	8,041,215,004.71	220.89%
METRO CEBU PUBLIC SAVINGS BANK	20,809,073.56	8,869,721.90	234.61%
CITIBANK, N.A.	3,133,374,962.15	1,156,260,580.22	270.99%
HSBC SAVINGS BANK(PHILS) INC	102,141,722.09	37,517,115.56	272.25%
PHIL TRUST COMPANY	3,312,326,017.46	1,158,278,288.02	285.97%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	23,293,288.66	6,842,722.12	340.41%
HONGKONG & SHANGHAI BANKING CORP	1,842,444,054.04	511,083,509.97	360.50%
KEB HANA BANK - MANILA BRANCH	87,545,320.21	23,050,211.32	379.80%
BANGKOK BANK PUBLIC CO LTD	514,119,420.00	23,558,872.16	2182.28%
MEGA INT'L COMM'L BANK CO LTD	249,403,952.44	4,815,000.00	5179.73%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	7,728,107.81	107,342.00	7199.52%
ING BANK N.V.	17,741,700.39	107.16	16556271.36%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	58,845,125.55	0.00	NA
BANK OF AMERICA N.A.	9,403,669.08	0.00	NA
BANK OF CHINA LIMITED-MANILA BRANCH	120,837,688.40	0.00	NA
BDO PRIVATE BANK, INC.	7,976,407.70	0.00	NA
CATHAY UNITED BANK CO LTD - MANILA BRANCH	33,383,797.25	0.00	NA
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	3,190,909.05	0.00	NA
CIMB BANK PHILIPPINES INC	0.00	0.00	NA
DEUTSCHE BANK AG	213,855,823.57	0.00	NA
FIRST COMMERCIAL BANK LTD MANILA BRANCH	7,409,560.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
INDUSTRIAL BANK OF KOREA MANILA BRANCH	30,371,287.79	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	564,948,450.39	0.00	NA
MUFG BANK, LTD.	387,752,746.02	0.00	NA
SHINHAN BANK - MANILA BRANCH	43,985,672.68	0.00	NA
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	57,509,951.73	0.00	NA
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	16,131,526.95	0.00	NA
Grand Total	179,351,042,002.08	147,814,383,446.62	121.34%

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, three banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
December 31, 2018
Bank	Minimum Loan Loss Provisions at 80% NPL Coverage Ratio	Actual Loan Loss Provisions	Excess/Deficit Loan Loss Provisions	Stockholder's Equity	Impact on SE
UCPB SAVINGS BANK	2,016,143,958.38	586,168,305.86	-1,429,975,652.52	2,723,545,194.11	-52.50%
EQUICOM SAVINGS BANK INC	542,932,402.60	241,713,735.53	-301,218,667.07	729,067,612.89	-41.32%
LUZON DEVELOPMENT BANK	409,453,351.89	217,112,698.31	-192,340,653.58	512,553,485.62	-37.53%
ENTERPRISE BANK INC (A THRIFT BANK)	267,752,766.21	206,217,463.29	-61,535,302.92	220,646,360.10	-27.89%
STERLING BANK OF ASIA INC (A SAVINGS BANK)	1,183,677,846.34	633,695,238.36	-549,982,607.98	2,734,098,751.47	-20.12%
MARITIME SAVINGS BANK CORPORATION	17,629,868.07	6,948,645.24	-10,681,222.83	53,824,388.21	-19.84%
PHILIPPINE RESOURCES SAVINGS BANKING CORPORATION (PR SAVINGS	1,245,104,998.30	1,000,583,422.40	-244,521,575.90	1,888,268,513.97	-12.95%
WEALTH DEVELOPMENT BANK CORPORATION	340,718,734.09	162,085,067.38	-178,633,666.71	1,453,322,660.58	-12.29%
RCBC SAVINGS BANK INC	3,631,140,705.50	2,258,272,487.07	-1,372,868,218.43	13,283,914,920.08	-10.33%
CHINA BANK SAVINGS INC	2,789,822,842.92	1,852,672,792.44	-937,150,050.48	9,582,604,212.94	-9.78%
BPI FAMILY SAVINGS BANK INC	8,885,274,913.26	5,828,635,522.01	-3,056,639,391.25	32,718,551,569.90	-9.34%
PHIL SAVINGS BANK	5,292,740,964.87	3,524,948,822.74	-1,767,792,142.13	22,991,966,427.28	-7.69%
PNB SAVINGS BANK	1,991,984,991.22	1,112,566,622.49	-879,418,368.73	11,586,836,716.84	-7.59%
1ST VALLEY BANK INC A DEVELOPMENT BANK	436,146,969.43	314,268,918.97	-121,878,050.46	1,918,619,895.86	-6.35%
PRODUCERS SAVINGS BANK CORPORATION	295,284,573.86	174,370,395.80	-120,914,178.06	1,977,454,300.17	-6.11%
BATAAN DEVELOPMENT BANK	27,984,072.86	22,420,075.55	-5,563,997.31	92,608,882.76	-6.01%
PAMPANGA DEVELOPMENT BANK	46,415,706.94	32,638,326.43	-13,777,380.51	250,061,794.92	-5.51%
FARMERS SAVINGS & LOAN BANK INC	33,004,082.26	26,526,351.09	-6,477,731.17	129,904,902.95	-4.99%
PACIFIC ACE SAVINGS BANK INC	6,387,205.60	2,348,484.84	-4,038,720.76	82,540,989.78	-4.89%
ASIA UNITED BANK CORPORATION	2,274,978,999.24	1,101,213,227.88	-1,173,765,771.36	29,600,543,068.70	-3.97%
EAST WEST BANKING CORP	8,191,544,235.05	6,783,668,064.65	-1,407,876,170.40	42,783,295,057.37	-3.29%
CITYSTATE SAVINGS BANK INC	93,050,271.78	74,322,686.83	-18,727,584.95	672,540,410.23	-2.78%
BANK OF MAKATI (A SAVINGS BANK) INC	1,648,880,395.30	1,416,211,879.00	-232,668,516.30	9,602,488,372.26	-2.42%
BUSINESS AND CONSUMERS BANK (A DB)	11,438,338.44	9,629,770.26	-1,808,568.18	88,379,217.15	-2.05%
DUMAGUETE CITY DEV BANK INC	23,749,205.94	19,299,237.59	-4,449,968.35	275,904,993.41	-1.61%
STANDARD CHARTERED BANK	2,090,930,651.36	1,988,192,954.24	-102,737,697.12	6,447,770,362.14	-1.59%
LEMERY SAVINGS & LOAN BANK, INC.	4,496,397.88	3,226,233.46	-1,270,164.42	91,169,252.11	-1.39%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,130,005.71	1,303,520.97	-826,484.74	59,372,600.22	-1.39%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT BANK)	27,882,877.26	20,709,613.77	-7,173,263.49	519,363,868.06	-1.38%
ALLBANK (A THRIFT BANK) INC	46,646,266.43	32,418,962.81	-14,227,303.62	1,036,335,582.85	-1.37%
LIFE SAVINGS BANK INC	6,327,221.89	5,424,695.67	-902,526.22	73,272,042.90	-1.23%
FIRST CONSOLIDATED BANK INC (A PDB)	749,840,910.20	702,400,198.51	-47,440,711.69	4,826,832,410.30	-0.98%
MALAYAN BANK SAVINGS AND MORT BANK INC	185,654,412.45	176,590,880.31	-9,063,532.14	1,246,922,920.50	-0.73%
UNION BANK OF THE PHILS	6,945,010,613.18	6,376,143,862.37	-568,866,750.81	84,284,141,087.13	-0.67%
CIMB BANK PHILIPPINES INC	0.00	0.00	0.00	2,386,578,288.43	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	0.00	2,086,861,509.77	0.00%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	3,190,909.05	3,190,909.05	2,150,807,588.36	0.15%
BDO PRIVATE BANK, INC.	0.00	7,976,407.70	7,976,407.70	5,138,022,947.23	0.16%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	7,409,560.00	7,409,560.00	2,022,175,409.58	0.37%
BANK OF AMERICA N.A.	0.00	9,403,669.08	9,403,669.08	2,369,266,015.18	0.40%
RIZAL COMM'L BANKING CORP	3,023,051,419.93	3,354,013,913.93	330,962,494.00	83,237,012,843.24	0.40%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	57,509,951.73	57,509,951.73	13,244,749,440.88	0.43%
SUN SAVINGS BANK INC	17,582,102.38	18,733,181.51	1,151,079.13	243,604,090.50	0.47%
BANK ONE SAVINGS CORPORATION	40,736,012.80	44,360,200.39	3,624,187.59	623,680,363.27	0.58%
ISLA BANK(A THRIFT BANK) INC	0.00	4,290,580.33	4,290,580.33	694,591,710.74	0.62%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	33,383,797.25	33,383,797.25	5,238,258,746.69	0.64%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	16,000,000.00	16,000,000.00	2,500,433,393.60	0.64%
UNITED OVERSEAS BANK LIMITED MANILA BRANCH	0.00	16,131,526.95	16,131,526.95	2,413,501,369.61	0.67%
ING BANK N.V.	85.73	17,741,700.39	17,741,614.66	2,517,864,730.75	0.70%
HIYAS BANKING CORPORATION	22,522,119.65	23,858,848.68	1,336,729.03	181,419,255.43	0.74%
SECURITY BANK CORP	2,237,508,204.18	3,161,010,688.45	923,502,484.27	111,294,030,670.00	0.83%
SHINHAN BANK - MANILA BRANCH	0.00	43,985,672.68	43,985,672.68	4,239,777,415.18	1.04%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	120,837,688.40	120,837,688.40	10,368,135,874.81	1.17%
CENTURY SAVINGS BANK CORPORATION	7,736,212.38	19,537,665.62	11,801,453.24	983,656,870.43	1.20%
UNIVERSITY SAVINGS BANK INC	33,225,906.45	38,806,861.19	5,580,954.74	431,364,936.28	1.29%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	30,371,287.79	30,371,287.79	2,320,444,050.00	1.31%
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED	0.00	58,845,125.55	58,845,125.55	4,111,922,273.29	1.43%
INTER-ASIA DEVELOPMENT BANK	6,072,918.26	7,309,690.80	1,236,772.54	84,534,827.98	1.46%
YUANTA SAVINGS BANK PHILIPPINES INC	84,567,634.53	100,931,349.56	16,363,715.03	883,651,164.96	1.85%
KEB HANA BANK - MANILA BRANCH	18,440,169.06	87,545,320.21	69,105,151.15	3,241,331,450.23	2.13%
BANK OF THE PHIL ISLANDS	10,441,697,013.47	15,839,711,208.04	5,398,014,194.57	247,385,436,610.38	2.18%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK A THRIFT BANK	5,474,177.70	23,293,288.66	17,819,110.96	673,508,129.74	2.65%
LEGAZPI SAVINGS BANK INC	260,599,936.63	276,759,960.86	16,160,024.23	544,117,725.12	2.97%
BPI DIRECT BANKO INC A SAVINGS BANK	638,328,695.27	711,470,070.69	73,141,375.42	2,368,682,739.22	3.09%
PHIL BANK OF COMMUNICATIONS	1,763,317,037.50	2,167,506,753.56	404,189,716.06	12,148,296,667.40	3.33%
PHILIPPINE BUSINESS BANK INC A SAVINGS BANK	1,323,623,339.10	1,706,381,776.70	382,758,437.60	10,940,818,994.42	3.50%
CHINA BANKING CORP	2,137,767,883.95	5,018,293,472.15	2,880,525,588.20	81,957,576,442.62	3.51%
CORDILLERA SAVINGS BANK INC	9,698,883.45	14,379,069.48	4,680,186.03	132,120,909.90	3.54%
MERCHANTS SAVINGS & LOAN ASSN INC	56,594,911.79	79,682,059.26	23,087,147.47	599,203,835.68	3.85%
DEVELOPMENT BANK OF THE PHIL	5,139,499,669.59	7,133,850,586.50	1,994,350,916.91	50,946,041,570.12	3.91%
ROBINSONS BANK CORPORATION	584,047,083.96	1,054,220,185.44	470,173,101.48	11,992,769,290.14	3.92%
METROPOLITAN BANK & TCO	6,432,972,003.77	17,762,616,961.78	11,329,644,958.01	281,281,577,024.65	4.03%
CTBC BANK (PHILIPPINES) CORP	506,390,906.58	815,157,667.55	308,766,760.97	7,173,797,753.56	4.30%
HSBC SAVINGS BANK(PHILS) INC	30,013,692.45	102,141,722.09	72,128,029.64	1,545,040,579.67	4.67%
PHIL STAR DEVELOPMENT BANK INC	3,493,901.69	9,482,646.07	5,988,744.38	127,354,103.35	4.70%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	85,873.60	7,728,107.81	7,642,234.21	162,369,604.50	4.71%
PENBANK INC (A PDB) (FORMERLY: PENINSULA RB INC)	83,533,601.94	112,139,598.46	28,605,996.52	501,682,183.07	5.70%
PHIL NATIONAL BANK	7,559,917,287.92	14,824,944,768.63	7,265,027,480.71	117,833,170,665.73	6.17%
NORTHPOINT DEV'T BANK INC	79,054,869.52	101,947,108.84	22,892,239.32	369,715,634.56	6.19%
LAND BANK OF THE PHILIPPINES	7,307,903,674.66	15,765,027,265.62	8,457,123,590.96	131,617,492,100.30	6.43%
BANK OF COMMERCE	1,259,899,727.13	2,321,448,605.10	1,061,548,877.97	15,522,989,477.35	6.84%
MEGA INT'L COMM'L BANK CO LTD	3,852,000.00	249,403,952.44	245,551,952.44	3,490,940,001.99	7.03%
BDO UNIBANK INC	13,686,431,963.42	37,125,293,082.34	23,438,861,118.92	327,542,497,477.73	7.16%
DEUTSCHE BANK AG	0.00	213,855,823.57	213,855,823.57	2,888,508,096.39	7.40%
MUFG BANK, LTD.	0.00	387,752,746.02	387,752,746.02	5,024,008,990.73	7.72%
MAYBANK PHILIPPINES INCORPORATED	1,311,326,755.66	2,319,584,041.63	1,008,257,285.97	12,657,372,797.92	7.97%
CARD SME BANK INC A THRIFT BANK	108,467,710.66	209,329,524.53	100,861,813.87	1,206,976,405.48	8.36%
HONGKONG & SHANGHAI BANKING CORP	408,866,807.98	1,842,444,054.04	1,433,577,246.06	14,567,725,227.25	9.84%
MIZUHO BANK LTD - MANILA BRANCH	0.00	564,948,450.39	564,948,450.39	5,619,388,628.63	10.05%
CITIBANK, N.A.	925,008,464.18	3,133,374,962.15	2,208,366,497.97	21,365,277,059.00	10.34%
PHIL TRUST COMPANY	926,622,630.42	3,312,326,017.46	2,385,703,387.04	21,698,718,077.54	10.99%
BANGKOK BANK PUBLIC CO LTD	18,847,097.73	514,119,420.00	495,272,322.27	3,181,957,942.56	15.57%
METRO CEBU PUBLIC SAVINGS BANK	7,095,777.52	20,809,073.56	13,713,296.04	74,925,108.22	18.30%
Grand Total	117,714,961,560.30	179,111,676,751.39	61,396,715,191.09	1,943,235,845,110.10	3.16%

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 December 31, 2018".

The most notable of the banks in this list is UCPB Savings Bank. The bank faces a shortfall of 52.50% of its stated stockholder's equity of Php 2.72 billion if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. In short, over 50% its equity would be wiped out if the bank were to properly account for its losses.