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

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 2019 "

 

The Top Distressed Philippine Banks
Total Distressed Assets/ Total Capital Cushion
December 31, 2019
In Php
	December 31, 2019
Bank	Total Distressed Assets (In PhP)	Total Capital Cushion (In PhP)	Distressed Assets/ Total Capital Cushion (In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	3,599,452,808.79	343,423,948.21	1048.11%
INTER-ASIA DEVELOPMENT BANK	580,343,583.64	93,100,536.21	623.35%
SAVIOUR RURAL BANK INC	538,855,832.15	105,124,911.77	512.59%
RB OF JAEN INC	293,516,037.18	70,952,262.57	413.68%
RB OF CENTRAL PANGASINAN (BAYAMBANG) INC	835,033,299.61	211,380,771.73	395.04%
COOP BANK OF CAGAYAN	406,252,705.05	106,341,584.91	382.03%
RB OF BROOKE'S POINT (PALAWAN) INC	373,719,005.70	108,189,285.57	345.43%
BENGUET CENTER BANK INC A RB	231,439,784.76	75,941,779.86	304.76%
COMMTY RB OF DAPITAN CITY INC	465,739,134.83	155,710,142.84	299.11%
MAKILING DEVELOPMENT BANK CORPORATION	1,025,524,047.05	347,869,022.01	294.80%
UNITED COCONUT PLANTERS BANK	18,630,518,983.02	6,468,475,009.42	288.02%
RB OF DULAG (LEYTE) INC	338,944,902.96	119,405,668.67	283.86%
MALAYAN BANK SAVINGS AND MORT BANK INC	3,780,351,786.00	1,426,617,486.87	264.99%
RB OF PILAR (BATAAN) INC	262,386,548.51	99,122,048.81	264.71%
VILLAGE BANK INC (A RURAL BANK)	276,539,442.46	107,323,745.81	257.67%
RB OF CARDONA (RIZAL) INC	334,446,900.28	134,970,533.17	247.79%
YUANTA SAVINGS BANK PHILIPPINES INC	2,706,054,176.42	1,102,416,875.42	245.47%
BANK OF CHINA LIMITED-MANILA BRANCH	24,212,701,651.08	10,101,254,880.26	239.70%
RB OF MIDSAYAP INC	239,302,699.64	111,662,598.14	214.31%
RANG-AY BANK INC (A RURAL BANK)	951,678,434.64	534,762,711.74	177.96%
BANGKO CARRASCAL INC (A RB)	178,335,230.18	103,004,762.17	173.13%
RB OF SAN MATEO(ISABELA) INC	268,889,986.64	155,374,983.45	173.06%
COUNTRY BUILDERS BANK INC (A RURAL BANK)	600,142,043.89	352,714,022.86	170.15%
RB OF GENERAL TRIAS INC	252,002,002.50	150,183,071.71	167.80%
PLANBANK "RB OF CANLUBANG PLANTERS INC"	245,346,138.79	154,423,979.91	158.88%
RB OF SAN LUIS (PAMPANGA) INC	168,807,015.29	110,886,625.96	152.23%
LUZON DEVELOPMENT BANK	1,082,171,322.26	749,358,995.18	144.41%
PEOPLES BANK OF CARAGA INC (A RURAL BANK)	575,266,209.26	415,729,594.05	138.38%
COMMON WEALTH RURAL BANK INC	178,471,519.28	133,729,174.88	133.46%
ENTERPRISE BANK INC (A THRIFT BANK)	590,748,040.45	452,809,102.69	130.46%
EQUICOM SAVINGS BANK INC	1,458,076,305.44	1,140,430,762.66	127.85%
BOF INC (A RURAL BANK)	790,898,470.89	644,522,302.93	122.71%
RB OF BAYOMBONG INC	219,684,296.39	179,916,625.79	122.10%
GATEWAY RURAL BANK INC	149,297,572.32	122,636,297.59	121.74%
GM BANK OF LUZON INC (A RURAL BANK)	574,876,106.57	479,747,833.76	119.83%
CHINA BANK SAVINGS INC	13,831,019,944.59	11,764,325,022.53	117.57%
ILOCOS CONSOLIDATED COOPERATIVE BANK	351,882,313.25	308,472,576.39	114.07%
UCPB SAVINGS BANK	4,197,891,846.21	3,726,979,885.87	112.64%
RB OF BAMBANG (NUEVA VIZCAYA) INC	151,253,378.82	138,079,267.69	109.54%
PHIL BANK OF COMMUNICATIONS	13,257,265,912.42	12,588,949,484.09	105.31%
RB OF MARIA AURORA (AURORA) INC	271,295,321.42	259,222,396.22	104.66%
RB OF SAN NARCISO INC	56,119,709.70	54,200,364.80	103.54%
LIPA BANK INC (A RB)	90,761,255.62	88,701,384.66	102.32%
PHILIPPINE VETERANS BANK	5,745,095,303.80	5,630,463,823.05	102.04%
CORDILLERA SAVINGS BANK INC	155,281,848.66	152,504,576.55	101.82%
Grand Total	105,523,680,858.41	61,881,412,721.43	170.53%

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 September 30, 2019 and December 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.