The Top Distressed Philippine Banks as of March 31, 2019

Editor's Note: The Philippine Deposit Insurance Corporation (PDIC) advised consumers to wisely choose the banks where they will deposit their money. The trouble is, most depositors don't and can't read financial statements before they open a bank account. The regulators, whose job is to safeguard the public's money, have not done a good job recently.  In the past ten years, two commercial banks, twenty-one thrift banks, and a staggering 187 rural banks have collapsed, often quite suddenly and without warning:  Regulators do have a problem bank list that they do not divulge to the public, for fear of sparking another bank run. So who can the public turn to, to advise them where to put their money? No one, except the banks themselves who will always promote their self-interests. This analysis is an attempt to fill in that knowledge gap, by screening out the weaker banks that seem ready to implode at any given moment.

Editor's Note: The ratio of Distressed Assets to Total Capital Cushion is a variant of the famous Texas Ratio, which was widely used by US financial regulators to predict bank failure during the US Savings and Loan Crisis in the 1980s and early 1990s. The basic premise is that a bank with Distressed Assets greater than its Capital Cushion is in danger of insolvency because a significant drop in the value of  the Distressed Assets will eat into a significant amount of the bank's capital.  A bank that has a Distressed Ratio greater than 100% is flagged as borderline insolvent.  For a more detailed discussion of this ratio, please visit a previous blog post: The Texas Ratio of Select Philippine Banks

This is a list of the top distressed Universal and Commercial (U/KB) as well as Thrift Banks in the Philippines as of March 31, 2019.  It updates a previous blog post: "The Top Distressed Philippine Banks as of December 31, 2018".

To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Improve Slightly in the 4th Quarter of 2018 "

 

The Top Distressed Philippine Banks
Total Distressed Assets/ Total Capital Cushion
March 31, 2019
In Php
	March 31, 2019
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
SAVIOUR RURAL BANK INC	520,928,565.56	101,990,261.31	510.76%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	837,425,414.89	188,221,991.32	444.91%
RB OF JAEN INC	258,121,386.76	59,232,407.94	435.78%
INTER-ASIA DEVELOPMENT BANK	322,846,792.97	91,796,389.86	351.70%
MOUNT MAKILING RURAL BANK INC	969,019,139.08	278,855,031.66	347.50%
COOP BANK OF CAGAYAN	360,288,378.47	105,322,538.61	342.08%
VILLAGE BANK INC (A RURAL BANK)	358,365,146.14	106,430,495.60	336.71%
RB OF BROOKE'S POINT (PALAWAN) INC	331,414,039.38	101,629,964.67	326.10%
BENGUET CENTER BANK INC A RB	205,435,049.13	64,294,387.22	319.52%
RB OF DULAG (LEYTE) INC	338,978,879.20	119,420,435.33	283.85%
COMMTY RB OF DAPITAN CITY INC	426,229,194.27	161,867,993.76	263.32%
UNITED COCONUT PLANTERS BANK	18,794,452,911.88	8,381,446,388.01	224.24%
MALAYAN BANK SAVINGS AND MORT BANK INC	3,255,668,126.89	1,468,433,302.28	221.71%
RB OF SAN MATEO(ISABELA) INC	303,422,072.05	137,514,038.45	220.65%
RB OF MIDSAYAP INC	220,745,255.45	102,966,058.13	214.39%
RB OF CARDONA (RIZAL) INC	291,338,000.94	142,508,947.39	204.43%
YUANTA SAVINGS BANK PHILIPPINES INC	1,913,632,862.61	992,257,234.14	192.86%
RB OF PILAR (BATAAN) INC	294,143,468.38	154,060,715.31	190.93%
RB OF GENERAL TRIAS INC	263,820,247.94	139,393,957.69	189.26%
TANAY RB INC	775,662,243.77	413,538,998.72	187.57%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	280,875,875.93	154,425,067.15	181.88%
RBG IMPERIAL BANK INC(A RURAL BANK)	164,283,874.35	92,643,136.85	177.33%
BANK OF CHINA LIMITED-MANILA BRANCH	17,309,788,413.88	10,050,902,348.08	172.22%
VALIANT BANK INC (A RURAL BANK)	394,692,183.07	235,494,542.72	167.60%
RANG-AY BANK INC (A RURAL BANK)	899,504,899.99	538,461,371.90	167.05%
AMA RURAL BANK OF MANDALUYONG INC	1,405,295,708.26	891,921,691.67	157.56%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	575,418,226.30	368,615,858.88	156.10%
RB OF BAMBANG (NUEVA VIZCAYA) INC	208,043,754.42	138,569,500.13	150.14%
RB OF SAN LUIS (PAMPANGA) INC	170,768,504.72	115,428,386.16	147.94%
RCBC SAVINGS BANK INC	22,189,756,941.39	15,268,125,557.71	145.33%
RB OF MARIA AURORA (AURORA) INC	345,004,673.41	238,887,658.99	144.42%
GRAND-AGRI RURAL BANK	81,669,317.16	61,608,243.49	132.56%
ENTERPRISE BANK INC (A THRIFT BANK)	566,919,073.84	432,863,823.39	130.97%
D' ASIAN HILLS BANK INC (A RURAL BANK)	167,331,970.65	139,095,628.07	120.30%
EQUICOM SAVINGS BANK INC	1,170,954,448.43	990,367,470.10	118.23%
PHIL BANK OF COMMUNICATIONS	14,790,357,661.06	12,773,089,763.85	115.79%
LUZON DEVELOPMENT BANK	837,650,136.98	724,473,558.19	115.62%
CHINA BANK SAVINGS INC	13,460,407,389.28	11,700,972,862.23	115.04%
GM BANK OF LUZON INC (A RURAL BANK)	571,934,530.73	505,251,055.09	113.20%
RB OF BAYOMBONG INC	206,127,762.26	184,378,189.97	111.80%
UCPB SAVINGS BANK	3,707,204,271.49	3,408,915,226.74	108.75%
GATEWAY RURAL BANK INC	131,735,366.51	121,478,790.50	108.44%
ILOCOS CONSOLIDATED COOPERATIVE BANK	296,194,247.45	277,471,591.70	106.75%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	428,767,866.26	421,692,152.80	101.68%
Grand Total	111,402,624,273.58	73,146,315,013.76	152.30%

Source: www.bsp.gov.ph


Disclaimer:


This list only serves as a screening guide.  It is not a definitive guide and must be taken in the context of other factors.  The figures are based on the individual banks' statement of condition as of December 31, 2018 and March 31, 2019 as published in the BSP website (www.bsp.gov.ph). For this analysis, no attempt was made to go through the audited financial statements of each bank. Readers are suggested to make their own investigations and verify the figures presented. Both BSP and PDIC have their own problem bank screening systems that are much more sophisticated in scope and design, given that they have more access to information over the banks they regulate.