The Top Distressed Philippine Banks as of June 30, 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 June 30, 2019.  It updates a previous blog post: "The Top Distressed Philippine Banks as of March 31, 2019".

To see where your bank stands relative to these banks, please check the previous blog post: "Philippine Banks Deteriorate Slightly in the 2nd Quarter of 2019 "

 

The Top Distressed Philippine Banks
Total Distressed Assets/ Total Capital Cushion
June 30, 2019
In Php
	June 30, 2019
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
SAVIOUR RURAL BANK INC	517,925,681.33	103,497,793.61	500.42%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	845,353,759.04	188,282,991.32	448.98%
RB OF JAEN INC	262,250,228.67	59,030,481.69	444.26%
INTER-ASIA DEVELOPMENT BANK	346,824,619.67	90,342,875.94	383.90%
RB OF BROOKE'S POINT (PALAWAN) INC	344,717,169.84	98,136,085.41	351.26%
COOP BANK OF CAGAYAN	366,577,720.45	104,614,927.74	350.41%
MOUNT MAKILING RURAL BANK INC	965,919,952.04	278,630,039.74	346.67%
RB OF DULAG (LEYTE) INC	345,674,258.40	115,417,424.73	299.50%
TANAY RB INC	937,455,043.99	331,358,597.12	282.91%
COMMTY RB OF DAPITAN CITY INC	442,198,607.32	161,552,378.64	273.72%
BENGUET CENTER BANK INC A RB	191,548,767.50	70,284,882.93	272.53%
VILLAGE BANK INC (A RURAL BANK)	278,436,299.86	107,313,565.81	259.46%
RB OF CARDONA (RIZAL) INC	298,277,829.32	119,739,699.49	249.11%
MALAYAN BANK SAVINGS AND MORT BANK INC	3,603,626,987.06	1,450,421,091.32	248.45%
UNITED COCONUT PLANTERS BANK	18,892,313,076.33	7,829,198,136.33	241.31%
RB OF MIDSAYAP INC	235,527,461.75	103,381,730.49	227.82%
RB OF PILAR (BATAAN) INC	337,338,984.22	152,706,485.36	220.91%
BANK OF CHINA LIMITED-MANILA BRANCH	19,418,011,848.98	10,072,962,874.79	192.77%
RANG-AY BANK INC (A RURAL BANK)	896,073,163.77	469,875,846.12	190.70%
YUANTA SAVINGS BANK PHILIPPINES INC	1,817,124,719.29	991,594,566.36	183.25%
RB OF GENERAL TRIAS INC	242,287,797.03	141,057,528.85	171.77%
RB OF SAN MATEO(ISABELA) INC	237,642,482.52	138,529,764.18	171.55%
RB OF BAMBANG (NUEVA VIZCAYA) INC	231,661,890.27	138,206,742.03	167.62%
AMA RURAL BANK OF MANDALUYONG INC	1,406,003,291.02	891,921,691.63	157.64%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	241,150,917.52	154,423,979.91	156.16%
RCBC SAVINGS BANK INC	23,361,062,622.95	15,154,113,922.64	154.16%
GRAND-AGRI RURAL BANK	89,264,540.89	58,527,467.81	152.52%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	557,926,263.09	368,211,887.04	151.52%
RB OF SAN LUIS (PAMPANGA) INC	169,791,281.12	112,892,106.41	150.40%
ENTERPRISE BANK INC (A THRIFT BANK)	614,529,364.80	416,558,371.02	147.53%
RB OF MARIA AURORA (AURORA) INC	321,352,013.84	238,942,441.99	134.49%
LUZON DEVELOPMENT BANK	934,164,004.10	735,120,909.19	127.08%
COMMON WEALTH RURAL BANK INC	161,737,784.25	134,316,764.09	120.42%
CHINA BANK SAVINGS INC	14,001,639,515.99	11,672,982,591.41	119.95%
EQUICOM SAVINGS BANK INC	1,229,477,116.28	1,032,700,546.10	119.05%
RB OF BAYOMBONG INC	208,500,222.30	180,621,948.11	115.43%
GATEWAY RURAL BANK INC	139,355,243.55	122,718,695.67	113.56%
RB OF SAN NARCISO INC	57,609,782.92	51,598,577.94	111.65%
PHIL BANK OF COMMUNICATIONS	14,076,985,661.05	12,724,060,977.65	110.63%
UCPB SAVINGS BANK	3,733,053,169.68	3,431,124,571.20	108.80%
GM BANK OF LUZON INC (A RURAL BANK)	526,054,165.25	495,670,348.90	106.13%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	441,756,111.36	421,692,152.80	104.76%
ASIA UNITED BANK CORPORATION	30,772,524,359.16	30,368,926,156.25	101.33%
Grand Total	145,098,705,779.77	102,083,262,617.76	142.14%

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 March 31, 2019 and June 30, 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.