A Simple Stress Test of Philippine Banks as of June 30, 2019

In an April 9, 2012 article entitled "Stress Test Proves Strength of PH Banks", "Philippine banks are seen to survive a disaster in which the various lenders are forced to write off loans as large as PhP 36 billion without asking shareholders, the central bank, or the national government for bailout money."  This assertion stems from a recent stress test conducted by the Bangko Sentral ng Pilipinas (BSP) on all 55 regular and commercial and expanded license banks.

For Philippine Banks, these NPLs currently comprise PhP 206.59` billion or 9.67% of the PhP 2,135.84 billion in Stockholders Equity (SE) as of June 30, 2019.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

 

Are NPLs the Right Numbers to Look At?

In a financial crisis, a loan that is current can very well become past due, and a past due loan can become a non-performing loan, and a non-performing loan can become a loan write-off.  The real number to look at are the loans that the banks and BSP already consider doubtful: Classified Loans.

Investopedia.com defines "Classified Loans" as:

"Any bank loan that is in danger of default. Classified loans have unpaid interest and principal outstanding, and it is unclear whether the bank will be able to recoup the loan proceeds from the borrower. Banks usually categorize such loans as adversely classified assets on their books."

The US Federal Deposit Insurance Corporation (FDIC), similar to our very own Philippine Deposit Insurance Corporation (PDIC), defines Classified Loans as:

"Loans classified Loss are considered uncollectible and of such little value that their continuance as bankable assets is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future."

In Circular #0247 dated May 19, 2000, BSP defines Classified Loans as loans which possess the following characteristics:

1. Loans especially mentioned because they have potential weaknesses that deserve Management's close attention;
2. Substandard Loans are loans which appear to involve a substantial and unreasonable degree of risk to the institution because of unfavorable record or unsatisfactory characteristics;
3. Doubtful Loans are Substandard Loans with the added characteristics that existing facts, conditions, and values make collection or liquidation in full highly improbable and in which substantial loss is probable;
4. Loss loans are loans that are considered uncollectible or worthless and are of such little value that their continuance as bankable assets is not warranted although the loans may have some recovery or salvage value.

The circular mandates that an allowance for probable losses should be set up in accordance with the following schedule:

1. Loans Especially Mentioned: 5%
2. Substandard - Secured: 6% - 25%
3. Substandard - Unsecured: 25%
4. Doubtful: 50%
5. Loss: 100%

 

As of June 30, 2019, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 450.61 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 197.13 billion for the same period.  Consequently, any write-offs of Classified Loans will have more than twice the impact of an NPL write-off.

This level of classified loans should be measured against the bank's "capital cushion" or its ability to absorb losses.  Capital Cushion is normally defined as a bank's "Tangible Common Equity" plus its Loan Loss Reserves.  Tangible Common Equity (TCE) refers to the subset of shareholders' equity that is not preferred equity and not intangible assets.  So it excludes such items as Hybrid equity (like preferred shares) and goodwill.

By this measure, the level of "Classified Loans and other Risky Assets" amounts to Php 450.61 billion or 20.46% of the Php 2.20 trillion in Total Capital Cushion of Philippine Banks as of June 30, 2019.

 

Stress Test Scenarios

Aggregate

So how will a 10%, 20%, 30%, 40%, and even 50% write-off of Classified Loans affect the Total Capital Cushion of the Philippine Banking System?

In the aggregate, if Classified Loans amount to 20.46% of the banking system's Total Capital Cushion, then it follows that a 10% write-off of Classified Loans will reduce the total capital by 2.04% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 10.23%.

Individual Banks

A 10% write-off of Classified Loans would severely impact (by 25% or more) the Total Capital Cushion of twelve banks (severely affected banks highlighted in yellow).

 

Philippine Banking System
Impact of 10% Classified Loan Loss Severities on Total Capital Cushion
June 30, 2019
	Classified Loans	10% Classified Loan Loss Severity	Total Capital Cushion	Impact of 10% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	505,916,633.70	50,591,663.37	103,497,793.61	48.88%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	844,094,354.12	84,409,435.41	188,282,991.32	44.83%
RB OF JAEN INC	248,944,297.48	24,894,429.75	59,030,481.69	42.17%
INTER-ASIA DEVELOPMENT BANK	333,844,979.64	33,384,497.96	90,342,875.94	36.95%
RB OF BROOKE'S POINT (PALAWAN) INC	340,223,797.76	34,022,379.78	98,136,085.41	34.67%
COOP BANK OF CAGAYAN	359,139,360.98	35,913,936.10	104,614,927.74	34.33%
MOUNT MAKILING RURAL BANK INC	949,958,134.91	94,995,813.49	278,630,039.74	34.09%
RB OF DULAG (LEYTE) INC	332,967,294.90	33,296,729.49	115,417,424.73	28.85%
COMMTY RB OF DAPITAN CITY INC	439,705,504.58	43,970,550.46	161,552,378.64	27.22%
TANAY RB INC	870,195,068.71	87,019,506.87	331,358,597.12	26.26%
BENGUET CENTER BANK INC A RB	183,633,117.27	18,363,311.73	70,284,882.93	26.13%
VILLAGE BANK INC (A RURAL BANK)	268,499,131.80	26,849,913.18	107,313,565.81	25.02%

A 20% write-off of Classified Loans will severely impact the Total Capital Cushion of twenty-eight banks:

 

Philippine Banking System
Impact of 20% Classified Loan Loss Severities on Total Capital Cushion
June 30, 2019
	Classified Loans	10% Classified Loan Loss Severity	Total Capital Cushion	Impact of 20% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	505,916,633.70	101,183,326.74	103,497,793.61	97.76%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	844,094,354.12	168,818,870.82	188,282,991.32	89.66%
RB OF JAEN INC	248,944,297.48	49,788,859.50	59,030,481.69	84.34%
INTER-ASIA DEVELOPMENT BANK	333,844,979.64	66,768,995.93	90,342,875.94	73.91%
RB OF BROOKE'S POINT (PALAWAN) INC	340,223,797.76	68,044,759.55	98,136,085.41	69.34%
COOP BANK OF CAGAYAN	359,139,360.98	71,827,872.20	104,614,927.74	68.66%
MOUNT MAKILING RURAL BANK INC	949,958,134.91	189,991,626.98	278,630,039.74	68.19%
RB OF DULAG (LEYTE) INC	332,967,294.90	66,593,458.98	115,417,424.73	57.70%
COMMTY RB OF DAPITAN CITY INC	439,705,504.58	87,941,100.92	161,552,378.64	54.44%
TANAY RB INC	870,195,068.71	174,039,013.74	331,358,597.12	52.52%
BENGUET CENTER BANK INC A RB	183,633,117.27	36,726,623.45	70,284,882.93	52.25%
VILLAGE BANK INC (A RURAL BANK)	268,499,131.80	53,699,826.36	107,313,565.81	50.04%
RB OF CARDONA (RIZAL) INC	274,850,250.31	54,970,050.06	119,739,699.49	45.91%
RB OF MIDSAYAP INC	233,776,961.77	46,755,392.35	103,381,730.49	45.23%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,819,065,392.80	563,813,078.56	1,450,421,091.32	38.87%
BANK OF CHINA LIMITED-MANILA BRANCH	19,328,927,481.93	3,865,785,496.39	10,072,962,874.79	38.38%
RANG-AY BANK INC (A RURAL BANK)	887,379,996.37	177,475,999.27	469,875,846.12	37.77%
RB OF PILAR (BATAAN) INC	286,964,726.82	57,392,945.36	152,706,485.36	37.58%
YUANTA SAVINGS BANK PHILIPPINES INC	1,728,866,973.94	345,773,394.79	991,594,566.36	34.87%
RB OF GENERAL TRIAS INC	241,599,193.52	48,319,838.70	141,057,528.85	34.26%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	2,496,093,478.22	7,829,198,136.33	31.88%
RB OF BAMBANG (NUEVA VIZCAYA) INC	217,636,072.34	43,527,214.47	138,206,742.03	31.49%
RB OF SAN MATEO(ISABELA) INC	214,246,088.75	42,849,217.75	138,529,764.18	30.93%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	271,150,600.00	891,921,691.63	30.40%
RB OF SAN LUIS (PAMPANGA) INC	165,430,372.01	33,086,074.40	112,892,106.41	29.31%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	219,300,941.25	43,860,188.25	154,423,979.91	28.40%
RCBC SAVINGS BANK INC	20,769,209,191.88	4,153,841,838.38	15,154,113,922.64	27.41%
RB OF MARIA AURORA (AURORA) INC	306,205,126.85	61,241,025.37	238,942,441.99	25.63%

A 30% write-off of Classified Loans will totally wipe out the Total Capital Cushion of seven banks (highlighted in red) and severely affect (reduce by 25% or more) the Total Capital Cushion of thirty-four other banks:

 

Philippine Banking System
Impact of 30% Classified Loan Loss Severities on Total Capital Cushion
June 30, 2019
	Classified Loans	30% Classified Loan Loss Severity	Total Capital Cushion	Impact of 30% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	505,916,633.70	151,774,990.11	103,497,793.61	146.65%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	844,094,354.12	253,228,306.24	188,282,991.32	134.49%
RB OF JAEN INC	248,944,297.48	74,683,289.24	59,030,481.69	126.52%
INTER-ASIA DEVELOPMENT BANK	333,844,979.64	100,153,493.89	90,342,875.94	110.86%
RB OF BROOKE'S POINT (PALAWAN) INC	340,223,797.76	102,067,139.33	98,136,085.41	104.01%
COOP BANK OF CAGAYAN	359,139,360.98	107,741,808.29	104,614,927.74	102.99%
MOUNT MAKILING RURAL BANK INC	949,958,134.91	284,987,440.47	278,630,039.74	102.28%
RB OF DULAG (LEYTE) INC	332,967,294.90	99,890,188.47	115,417,424.73	86.55%
COMMTY RB OF DAPITAN CITY INC	439,705,504.58	131,911,651.37	161,552,378.64	81.65%
TANAY RB INC	870,195,068.71	261,058,520.61	331,358,597.12	78.78%
BENGUET CENTER BANK INC A RB	183,633,117.27	55,089,935.18	70,284,882.93	78.38%
VILLAGE BANK INC (A RURAL BANK)	268,499,131.80	80,549,739.54	107,313,565.81	75.06%
RB OF CARDONA (RIZAL) INC	274,850,250.31	82,455,075.09	119,739,699.49	68.86%
RB OF MIDSAYAP INC	233,776,961.77	70,133,088.53	103,381,730.49	67.84%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,819,065,392.80	845,719,617.84	1,450,421,091.32	58.31%
BANK OF CHINA LIMITED-MANILA BRANCH	19,328,927,481.93	5,798,678,244.58	10,072,962,874.79	57.57%
RANG-AY BANK INC (A RURAL BANK)	887,379,996.37	266,213,998.91	469,875,846.12	56.66%
RB OF PILAR (BATAAN) INC	286,964,726.82	86,089,418.05	152,706,485.36	56.38%
YUANTA SAVINGS BANK PHILIPPINES INC	1,728,866,973.94	518,660,092.18	991,594,566.36	52.31%
RB OF GENERAL TRIAS INC	241,599,193.52	72,479,758.06	141,057,528.85	51.38%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	3,744,140,217.32	7,829,198,136.33	47.82%
RB OF BAMBANG (NUEVA VIZCAYA) INC	217,636,072.34	65,290,821.70	138,206,742.03	47.24%
RB OF SAN MATEO(ISABELA) INC	214,246,088.75	64,273,826.63	138,529,764.18	46.40%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	406,725,900.00	891,921,691.63	45.60%
RB OF SAN LUIS (PAMPANGA) INC	165,430,372.01	49,629,111.60	112,892,106.41	43.96%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	219,300,941.25	65,790,282.38	154,423,979.91	42.60%
RCBC SAVINGS BANK INC	20,769,209,191.88	6,230,762,757.56	15,154,113,922.64	41.12%
RB OF MARIA AURORA (AURORA) INC	306,205,126.85	91,861,538.06	238,942,441.99	38.45%
COMMON WEALTH RURAL BANK INC	151,091,716.84	45,327,515.05	134,316,764.09	33.75%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	410,827,434.84	123,248,230.45	368,211,887.04	33.47%
GATEWAY RURAL BANK INC	120,578,718.40	36,173,615.52	122,718,695.67	29.48%
RB OF SAN NARCISO INC	49,111,174.46	14,733,352.34	51,598,577.94	28.55%
RB OF BAYOMBONG INC	170,933,078.46	51,279,923.54	180,621,948.11	28.39%
ILOCOS CONSOLIDATED COOPERATIVE BANK	255,897,337.98	76,769,201.39	282,316,631.55	27.19%
CORDILLERA SAVINGS BANK INC	124,269,666.49	37,280,899.95	137,464,721.38	27.12%
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	67,226,674.54	20,168,002.36	74,503,135.57	27.07%
EQUICOM SAVINGS BANK INC	920,327,756.01	276,098,326.80	1,032,700,546.10	26.74%
BOF INC (A RURAL BANK)	556,137,577.71	166,841,273.31	636,921,968.52	26.19%
ASIA UNITED BANK CORPORATION	26,432,607,223.46	7,929,782,167.04	30,368,926,156.25	26.11%
BATAAN DEVELOPMENT BANK	102,400,000.00	30,720,000.00	118,200,818.90	25.99%
UCPB SAVINGS BANK	2,911,217,229.07	873,365,168.72	3,431,124,571.20	25.45%

A 40% write-off of Classified Loans will totally wipe out the Total Capital Cushion of twelve banks and severely affect (reduce by 25% or more) the Total Capital Cushion of forty-two more banks:

 

Philippine Banking System
Impact of 40% Classified Loan Loss Severities on Total Capital Cushion
June 30, 2019
	Classified Loans	40% Classified Loan Loss Severity	Total Capital Cushion	Impact of 40% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	505,916,633.70	202,366,653.48	103,497,793.61	195.53%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	844,094,354.12	337,637,741.65	188,282,991.32	179.32%
RB OF JAEN INC	248,944,297.48	99,577,718.99	59,030,481.69	168.69%
INTER-ASIA DEVELOPMENT BANK	333,844,979.64	133,537,991.86	90,342,875.94	147.81%
RB OF BROOKE'S POINT (PALAWAN) INC	340,223,797.76	136,089,519.10	98,136,085.41	138.67%
COOP BANK OF CAGAYAN	359,139,360.98	143,655,744.39	104,614,927.74	137.32%
MOUNT MAKILING RURAL BANK INC	949,958,134.91	379,983,253.96	278,630,039.74	136.38%
RB OF DULAG (LEYTE) INC	332,967,294.90	133,186,917.96	115,417,424.73	115.40%
COMMTY RB OF DAPITAN CITY INC	439,705,504.58	175,882,201.83	161,552,378.64	108.87%
TANAY RB INC	870,195,068.71	348,078,027.48	331,358,597.12	105.05%
BENGUET CENTER BANK INC A RB	183,633,117.27	73,453,246.91	70,284,882.93	104.51%
VILLAGE BANK INC (A RURAL BANK)	268,499,131.80	107,399,652.72	107,313,565.81	100.08%
RB OF CARDONA (RIZAL) INC	274,850,250.31	109,940,100.12	119,739,699.49	91.82%
RB OF MIDSAYAP INC	233,776,961.77	93,510,784.71	103,381,730.49	90.45%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,819,065,392.80	1,127,626,157.12	1,450,421,091.32	77.74%
BANK OF CHINA LIMITED-MANILA BRANCH	19,328,927,481.93	7,731,570,992.77	10,072,962,874.79	76.76%
RANG-AY BANK INC (A RURAL BANK)	887,379,996.37	354,951,998.55	469,875,846.12	75.54%
RB OF PILAR (BATAAN) INC	286,964,726.82	114,785,890.73	152,706,485.36	75.17%
YUANTA SAVINGS BANK PHILIPPINES INC	1,728,866,973.94	691,546,789.58	991,594,566.36	69.74%
RB OF GENERAL TRIAS INC	241,599,193.52	96,639,677.41	141,057,528.85	68.51%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	4,992,186,956.43	7,829,198,136.33	63.76%
RB OF BAMBANG (NUEVA VIZCAYA) INC	217,636,072.34	87,054,428.94	138,206,742.03	62.99%
RB OF SAN MATEO(ISABELA) INC	214,246,088.75	85,698,435.50	138,529,764.18	61.86%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	542,301,200.00	891,921,691.63	60.80%
RB OF SAN LUIS (PAMPANGA) INC	165,430,372.01	66,172,148.80	112,892,106.41	58.62%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	219,300,941.25	87,720,376.50	154,423,979.91	56.80%
RCBC SAVINGS BANK INC	20,769,209,191.88	8,307,683,676.75	15,154,113,922.64	54.82%
RB OF MARIA AURORA (AURORA) INC	306,205,126.85	122,482,050.74	238,942,441.99	51.26%
COMMON WEALTH RURAL BANK INC	151,091,716.84	60,436,686.74	134,316,764.09	45.00%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	410,827,434.84	164,330,973.94	368,211,887.04	44.63%
GATEWAY RURAL BANK INC	120,578,718.40	48,231,487.36	122,718,695.67	39.30%
RB OF SAN NARCISO INC	49,111,174.46	19,644,469.78	51,598,577.94	38.07%
RB OF BAYOMBONG INC	170,933,078.46	68,373,231.38	180,621,948.11	37.85%
ILOCOS CONSOLIDATED COOPERATIVE BANK	255,897,337.98	102,358,935.19	282,316,631.55	36.26%
CORDILLERA SAVINGS BANK INC	124,269,666.49	49,707,866.60	137,464,721.38	36.16%
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	67,226,674.54	26,890,669.82	74,503,135.57	36.09%
EQUICOM SAVINGS BANK INC	920,327,756.01	368,131,102.40	1,032,700,546.10	35.65%
BOF INC (A RURAL BANK)	556,137,577.71	222,455,031.08	636,921,968.52	34.93%
ASIA UNITED BANK CORPORATION	26,432,607,223.46	10,573,042,889.38	30,368,926,156.25	34.82%
BATAAN DEVELOPMENT BANK	102,400,000.00	40,960,000.00	118,200,818.90	34.65%
UCPB SAVINGS BANK	2,911,217,229.07	1,164,486,891.63	3,431,124,571.20	33.94%
LIBERTY BANK (A RURAL BANK) INC	62,413,969.68	24,965,587.87	76,850,630.93	32.49%
RB OF MIAGAO (ILOILO) INC	86,700,309.08	34,680,123.63	108,272,092.04	32.03%
RB OF MAGDALENA (LAGUNA) INC	98,428,172.07	39,371,268.83	129,674,268.10	30.36%
BANGKO MABUHAY (A RURAL BANK) INC	253,754,640.13	101,501,856.05	339,618,717.24	29.89%
CHINA BANK SAVINGS INC	8,551,581,412.89	3,420,632,565.16	11,672,982,591.41	29.30%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	304,220,638.03	121,688,255.21	421,692,152.80	28.86%
GM BANK OF LUZON INC (A RURAL BANK)	354,910,979.93	141,964,391.97	495,670,348.90	28.64%
PBCOM RURAL BANK INC	649,633,897.93	259,853,559.17	927,489,160.41	28.02%
PHIL BANK OF COMMUNICATIONS	8,837,270,539.14	3,534,908,215.66	12,724,060,977.65	27.78%
PHIL STAR DEVELOPMENT BANK INC	74,021,906.74	29,608,762.70	110,492,220.27	26.80%
LEGAZPI SAVINGS BANK INC	543,831,000.00	217,532,400.00	829,066,116.78	26.24%
RNG COASTAL BANK INC(A RURAL BANK)	112,930,339.47	45,172,135.79	173,280,870.87	26.07%
DUMAGUETE CITY DEV BANK INC	214,711,638.19	85,884,655.28	332,628,399.87	25.82%

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of fourteen banks and severely affect (reduce by 25% or more) the Total Capital Cushion of fifty more banks:

Philippine Banking System
Impact of 50% Classified Loan Loss Severities on Total Capital Cushion
June 30, 2019
	Classified Loans	50% Classified Loan Loss Severity	Total Capital Cushion	Impact of 50% Loss on Total Capital Cushion
Bank	(In Php)	(In Php)	(In Php)	(In %)
SAVIOUR RURAL BANK INC	505,916,633.70	252,958,316.85	103,497,793.61	244.41%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	844,094,354.12	422,047,177.06	188,282,991.32	224.16%
RB OF JAEN INC	248,944,297.48	124,472,148.74	59,030,481.69	210.86%
INTER-ASIA DEVELOPMENT BANK	333,844,979.64	166,922,489.82	90,342,875.94	184.77%
RB OF BROOKE'S POINT (PALAWAN) INC	340,223,797.76	170,111,898.88	98,136,085.41	173.34%
COOP BANK OF CAGAYAN	359,139,360.98	179,569,680.49	104,614,927.74	171.65%
MOUNT MAKILING RURAL BANK INC	949,958,134.91	474,979,067.46	278,630,039.74	170.47%
RB OF DULAG (LEYTE) INC	332,967,294.90	166,483,647.45	115,417,424.73	144.24%
COMMTY RB OF DAPITAN CITY INC	439,705,504.58	219,852,752.29	161,552,378.64	136.09%
TANAY RB INC	870,195,068.71	435,097,534.36	331,358,597.12	131.31%
BENGUET CENTER BANK INC A RB	183,633,117.27	91,816,558.64	70,284,882.93	130.63%
VILLAGE BANK INC (A RURAL BANK)	268,499,131.80	134,249,565.90	107,313,565.81	125.10%
RB OF CARDONA (RIZAL) INC	274,850,250.31	137,425,125.16	119,739,699.49	114.77%
RB OF MIDSAYAP INC	233,776,961.77	116,888,480.89	103,381,730.49	113.06%
MALAYAN BANK SAVINGS AND MORT BANK INC	2,819,065,392.80	1,409,532,696.40	1,450,421,091.32	97.18%
BANK OF CHINA LIMITED-MANILA BRANCH	19,328,927,481.93	9,664,463,740.97	10,072,962,874.79	95.94%
RANG-AY BANK INC (A RURAL BANK)	887,379,996.37	443,689,998.19	469,875,846.12	94.43%
RB OF PILAR (BATAAN) INC	286,964,726.82	143,482,363.41	152,706,485.36	93.96%
YUANTA SAVINGS BANK PHILIPPINES INC	1,728,866,973.94	864,433,486.97	991,594,566.36	87.18%
RB OF GENERAL TRIAS INC	241,599,193.52	120,799,596.76	141,057,528.85	85.64%
UNITED COCONUT PLANTERS BANK	12,480,467,391.08	6,240,233,695.54	7,829,198,136.33	79.70%
RB OF BAMBANG (NUEVA VIZCAYA) INC	217,636,072.34	108,818,036.17	138,206,742.03	78.74%
RB OF SAN MATEO(ISABELA) INC	214,246,088.75	107,123,044.38	138,529,764.18	77.33%
AMA RURAL BANK OF MANDALUYONG INC	1,355,753,000.00	677,876,500.00	891,921,691.63	76.00%
RB OF SAN LUIS (PAMPANGA) INC	165,430,372.01	82,715,186.01	112,892,106.41	73.27%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	219,300,941.25	109,650,470.63	154,423,979.91	71.01%
RCBC SAVINGS BANK INC	20,769,209,191.88	10,384,604,595.94	15,154,113,922.64	68.53%
RB OF MARIA AURORA (AURORA) INC	306,205,126.85	153,102,563.43	238,942,441.99	64.08%
COMMON WEALTH RURAL BANK INC	151,091,716.84	75,545,858.42	134,316,764.09	56.24%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	410,827,434.84	205,413,717.42	368,211,887.04	55.79%
GATEWAY RURAL BANK INC	120,578,718.40	60,289,359.20	122,718,695.67	49.13%
RB OF SAN NARCISO INC	49,111,174.46	24,555,587.23	51,598,577.94	47.59%
RB OF BAYOMBONG INC	170,933,078.46	85,466,539.23	180,621,948.11	47.32%
ILOCOS CONSOLIDATED COOPERATIVE BANK	255,897,337.98	127,948,668.99	282,316,631.55	45.32%
CORDILLERA SAVINGS BANK INC	124,269,666.49	62,134,833.25	137,464,721.38	45.20%
NORTH PACIFIC BANKING CORPORATION (A RB OF STA MARIA ISABELA	67,226,674.54	33,613,337.27	74,503,135.57	45.12%
EQUICOM SAVINGS BANK INC	920,327,756.01	460,163,878.01	1,032,700,546.10	44.56%
BOF INC (A RURAL BANK)	556,137,577.71	278,068,788.86	636,921,968.52	43.66%
ASIA UNITED BANK CORPORATION	26,432,607,223.46	13,216,303,611.73	30,368,926,156.25	43.52%
BATAAN DEVELOPMENT BANK	102,400,000.00	51,200,000.00	118,200,818.90	43.32%
UCPB SAVINGS BANK	2,911,217,229.07	1,455,608,614.54	3,431,124,571.20	42.42%
LIBERTY BANK (A RURAL BANK) INC	62,413,969.68	31,206,984.84	76,850,630.93	40.61%
RB OF MIAGAO (ILOILO) INC	86,700,309.08	43,350,154.54	108,272,092.04	40.04%
RB OF MAGDALENA (LAGUNA) INC	98,428,172.07	49,214,086.04	129,674,268.10	37.95%
BANGKO MABUHAY (A RURAL BANK) INC	253,754,640.13	126,877,320.07	339,618,717.24	37.36%
CHINA BANK SAVINGS INC	8,551,581,412.89	4,275,790,706.45	11,672,982,591.41	36.63%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	304,220,638.03	152,110,319.02	421,692,152.80	36.07%
GM BANK OF LUZON INC (A RURAL BANK)	354,910,979.93	177,455,489.97	495,670,348.90	35.80%
PBCOM RURAL BANK INC	649,633,897.93	324,816,948.97	927,489,160.41	35.02%
PHIL BANK OF COMMUNICATIONS	8,837,270,539.14	4,418,635,269.57	12,724,060,977.65	34.73%
PHIL STAR DEVELOPMENT BANK INC	74,021,906.74	37,010,953.37	110,492,220.27	33.50%
LEGAZPI SAVINGS BANK INC	543,831,000.00	271,915,500.00	829,066,116.78	32.80%
RNG COASTAL BANK INC(A RURAL BANK)	112,930,339.47	56,465,169.74	173,280,870.87	32.59%
DUMAGUETE CITY DEV BANK INC	214,711,638.19	107,355,819.10	332,628,399.87	32.28%
SUGBUANON RB INC	70,780,600.64	35,390,300.32	113,285,345.58	31.24%
NEW RB OF SAN LEONARDO(N.E.) INC	153,139,627.85	76,569,813.93	250,454,948.80	30.57%
PHIL SAVINGS BANK	20,609,413,884.25	10,304,706,942.13	35,267,890,986.65	29.22%
FILIDIAN RURAL BANK OF ANTIPOLO INC	88,214,142.71	44,107,071.36	153,486,975.62	28.74%
RB OF ITOGON (BENGUET) INC	74,517,110.50	37,258,555.25	132,911,006.61	28.03%
HIGHLAND RURAL BANK INC	89,261,964.37	44,630,982.19	162,069,267.73	27.54%
GOLDEN RURAL BANK OF THE PHILIPPINES INC	41,907,426.93	20,953,713.47	76,590,243.22	27.36%
BANGKOK BANK PUBLIC CO LTD	2,808,425,265.06	1,404,212,632.53	5,190,893,397.00	27.05%
COOPERATIVE BANK OF NUEVA VIZCAYA	57,374,356.60	28,687,178.30	106,266,823.22	27.00%
ENTREPRENEUR RB INC	48,077,559.85	24,038,779.93	92,511,237.84	25.98%

Please bear in mind that a number of these banks are already very weak and are in distress.  Please see a previous blog post: "The Top Distressed Philippine Banks as of June 30, 2019. Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of June 30, 2019". 

 

As such, any reduction in their capital cushion could knock down an already weak bank.

Source: www.bsp.gov.ph