Search This Blog

Saturday, December 8, 2012

Planters Development Bank Takes the Bronze in NPLs as a Percentage of Stockholders Equity as of June 30, 2012

Editor's Note: Data is culled from  the Published Statements of Condition of individual thrift banks found in www.bsp.gov.ph.  Banks highlighted in yellow are classified as Distressed Banks.  The level of distressed is measured by the Ratio of their Total Distressed Assets/Total Capital Cushion as of June 30, 2012.  See a previous blog post: "Philippine Thrift Banks Continue to Improve in the 2nd Quarter of 2012".

NPLs.  Short for Non-Performing Loans.  The NPL Ratio, or the ratio of a bank's Non-Performing Loans (NPL) to Total Loan Portfolio (TLP) is a frequently cited figure in the general media to indicate a bank's financial health, or the health of the banking system as a whole.  See: http://business.inquirer.net/48943/banks-reduce-exposure-to-bad-debts-have-more-cash-to-loan-out%E2%80%94bsp.

In the Philippine Thrift Banking Industry, Non-Performing Loans stood at PHP 19.830 billion as of June 30, 2012 - approximately 4.87% of the Philippine Thrift Banking Industry's Total Loan Portfolio - Net of PHP 407.368 billion.

Philippine Thrift Banking System
NPL as % of TLP-Net
June 30, 2012









NPL TLP-Net NPL/TLP
Bank (In Php) (In Php) (In %)
Northpoint Development Bank, Inc. 5,705,839.36 1,869,665.92 305.18%
Pacific Ace Savings Bank, Inc. 10,252,586.49 14,484,805.38 70.78%
Metro-Cebu Public Savings Bank 30,863,778.38 48,479,236.03 63.66%
Comsavings Bank 197,917,363.94 350,740,295.16 56.43%
Silangan Savings and Loan Bank, Inc. 16,670,323.99 34,494,582.77 48.33%
Sun Savings Bank, Inc. 5,357,675.89 15,094,700.16 35.49%
Citibank Savings Inc. 2,856,110,549.96 8,384,518,529.47 34.06%
Malasiqui Progressive Savings and Loan Bank, Inc. 14,466,468.15 50,584,024.99 28.60%
Progress Savings and Loan Bank, Inc. 1,338,363.83 4,835,874.11 27.68%
Bataan Development Bank 40,674,274.39 152,823,325.49 26.62%
Lemery Savings and Loan Bank, Inc. 16,874,914.00 69,795,623.91 24.18%
Pride Star Development Bank, Inc. 8,692,326.39 36,843,209.72 23.59%
Farmers Savings and Loan Bank, Inc. 50,258,569.72 223,087,106.07 22.53%
Pampanga Development Bank 38,978,520.76 179,572,569.63 21.71%
Sampaguita Savings Bank, Inc. 10,572,407.09 50,248,485.44 21.04%
Quezon Coconut Producers Savings and Loan Bank 9,350,997.62 46,095,116.67 20.29%
Opportunity Kauswagan Bank, Inc. 47,684,373.36 244,466,985.22 19.51%
Security Bank Savings Corporation 515,520,772.12 3,395,634,954.06 15.18%
Cordillera Savings Bank, Inc. 21,144,063.87 140,412,050.46 15.06%
Philippine Postal Savings Bank, Inc. 380,024,247.12 2,728,397,058.22 13.93%
Business and Consumers Bank 12,969,732.74 102,214,183.62 12.69%
University Savings Bank, Inc. 51,628,327.48 432,813,979.68 11.93%
Hiyas Banking Corporation 40,185,600.53 368,935,912.58 10.89%
Allied Savings Bank 243,874,386.39 2,286,321,857.43 10.67%
Maritime Savings Bank Corporation 12,532,225.20 117,760,011.39 10.64%
Tong Yang Savings Bank, Inc. 90,160,279.49 881,823,607.97 10.22%
Bataan Savings and Loan Bank 3,084,817.02 31,185,673.18 9.89%
Village Bank, Inc. 28,818,153.47 339,283,229.03 8.49%
Malayan Bank Savings and Mortgage Bank, Inc. 313,632,569.20 3,888,868,219.48 8.06%
Luzon Development Bank 120,635,339.90 1,505,292,322.36 8.01%
Legazpi Savings Bank, Inc. 101,545,758.77 1,316,961,383.96 7.71%
Planters Development Bank 2,560,629,104.28 33,235,612,946.99 7.70%
Iloilo City Development Bank 16,904,440.87 242,685,753.89 6.97%
Microfinance Maximum Savings Bank, Inc. 1,056,155.26 15,382,763.37 6.87%
Dungganon Bank (A Microfinance Thrift Bank), Inc. 6,045,070.42 88,240,777.42 6.85%
Penbank, Inc. (A Private Development Bank) 66,828,825.29 992,717,997.78 6.73%
Life Savings Bank, Inc. 3,465,831.47 54,138,605.19 6.40%
First Consolidated Bank, Inc. 372,255,186.21 6,075,918,134.60 6.13%
Philippine Savings Bank 4,356,363,732.95 75,991,591,549.78 5.73%
Sterling Bank of Asia, Inc. 790,624,665.59 14,828,580,124.53 5.33%
Philippine Business Bank, Inc. 764,916,007.37 15,848,408,952.74 4.83%
Optimum Development Bank, Inc. 32,270,327.60 715,434,371.84 4.51%
Producers Savings Bank Corporation 150,497,298.52 3,486,064,084.48 4.32%
Dumaguete City Development Bank, Inc. 16,734,272.56 396,673,725.59 4.22%
World Partners Bank 30,418,730.86 841,238,193.47 3.62%
Wealth Development Bank Corporation 57,490,084.44 1,592,417,658.92 3.61%
RCBC Savings Bank, Inc. 1,240,532,347.87 34,755,158,754.67 3.57%
UCPB Savings Bank 187,376,711.23 5,440,675,119.72 3.44%
China Bank Savings Inc. 82,041,848.35 2,807,516,592.00 2.92%
BPI Direct Savings Bank, Inc. 158,748,252.54 5,432,888,203.95 2.92%
Equicom Savings Bank, Inc. 91,828,345.71 3,211,466,848.36 2.86%
Bank One Savings and Trust Corporation 19,402,717.57 713,989,303.26 2.72%
Card SME Bank, Inc., A Thrift Bank 11,987,442.75 453,488,263.37 2.64%
Tower Development Bank 3,682,116.29 143,019,035.08 2.57%
BPI Globe BanKO, Inc., A Savings Bank 54,467,929.26 2,188,003,299.43 2.49%
CityState Savings Bank, Inc. 34,636,907.54 1,451,505,166.65 2.39%
BPI Family Savings Bank, Inc. 3,101,887,737.55 135,760,881,316.65 2.28%
Century Savings Bank Corporation 10,752,766.23 498,115,266.79 2.16%
City Savings Bank, Inc. 203,764,171.46 11,534,816,408.46 1.77%
Queen City Development Bank, Inc. 14,159,937.67 1,321,719,166.55 1.07%
HSBC Savings Bank (Phils), Inc. 89,622,250.40 11,945,661,353.63 0.75%
Merchants Savings and Loan Association, Inc. 1,110,039.79 156,464,948.25 0.71%
Isla Bank (A Thrift Bank), Inc. 0.00 619,934,759.37 0.00%
Philippine Resources Savings Banking Corporation 0.00 6,472,098,955.98 0.00%
United Overseas Bank Philippines 0.00 611,561,387.68 0.00%
BDO Elite Savings Bank, Inc. 0.00 0.00 NA
Grand Total 19,830,026,862.52 407,368,008,370.00 4.87%


Source: www.bsp.gov.ph

 There are seven Thrift Banks with an NPL Ratio greater than 30% of Total Loan Portfolio - Net (TLP-Net).  These are as follows:

  1. Northpoint Development Bank (305.18% of TLP-Net)
  2. Pacific Ace Savings Bank (74.02% of TLP-Net)
  3. Metro Cebu Public Savings Bank (73.36% of TLP-Net)
  4. Comsavings Bank (56.43% of TLP-Net)
  5. Silangan Savings and Loan Bank, Inc. (48.33% of TLP-Net)
  6. Sun Savings Bank (35.49% of TLP-Net)
  7. Citibank Savings Inc. (34.06% of TLP-Net)
Of these banks, two banks are considered distressed:
  1. Comsavings Bank (formerly GSIS Family Bank)
  2. Silangan Savings and Loan Bank, Inc.
The ratio of a bank's NPLs to its total Stockholders Equity (SE) maybe more important than the ratio of its NPLs to Total Loan Portfolio.  The idea behind this is that NPLs are fragile things.  As a loan deteriorates, its recoverable value will deteriorate as well.  A foreclosure might result in a loan recovery that is a fraction of the loans original value.  Therefore, banks with high NPL Ratios relative to their Stockholders Equity may face a significant loss of capital if a substantial amount of their NPLs are written of as a loss.

Philippine Thrift Banking System
NPL as % of SE
June 30, 2012









NPL SE NPL/SE
Bank (In Php) (In Php) (In %)
Silangan Savings and Loan Bank, Inc. 16,670,323.99 9,740,651.89 171.14%
Citibank Savings Inc. 2,856,110,549.96 1,818,756,670.18 157.04%
Planters Development Bank 2,560,629,104.28 3,931,756,700.13 65.13%
Security Bank Savings Corporation 515,520,772.12 795,088,386.40 64.84%
Bataan Development Bank 40,674,274.39 70,387,217.02 57.79%
Legazpi Savings Bank, Inc. 101,545,758.77 178,699,023.83 56.83%
Comsavings Bank 197,917,363.94 350,468,111.01 56.47%
Philippine Postal Savings Bank, Inc. 380,024,247.12 688,770,339.88 55.17%
Opportunity Kauswagan Bank, Inc. 47,684,373.36 87,108,376.48 54.74%
Metro-Cebu Public Savings Bank 30,863,778.38 60,255,751.33 51.22%
Farmers Savings and Loan Bank, Inc. 50,258,569.72 100,549,296.43 49.98%
Sterling Bank of Asia, Inc. 790,624,665.59 1,633,872,061.27 48.39%
Village Bank, Inc. 28,818,153.47 70,653,647.74 40.79%
Pampanga Development Bank 38,978,520.76 105,904,741.40 36.81%
Philippine Savings Bank 4,356,363,732.95 13,303,936,411.40 32.74%
Malayan Bank Savings and Mortgage Bank, Inc. 313,632,569.20 975,332,768.21 32.16%
Luzon Development Bank 120,635,339.90 382,298,596.47 31.56%
Malasiqui Progressive Savings and Loan Bank, Inc. 14,466,468.15 49,198,079.06 29.40%
Iloilo City Development Bank 16,904,440.87 62,433,690.20 27.08%
Penbank, Inc. (A Private Development Bank) 66,828,825.29 260,723,835.90 25.63%
Hiyas Banking Corporation 40,185,600.53 157,846,553.87 25.46%
University Savings Bank, Inc. 51,628,327.48 205,163,329.73 25.16%
Allied Savings Bank 243,874,386.39 976,492,885.94 24.97%
Lemery Savings and Loan Bank, Inc. 16,874,914.00 69,169,391.20 24.40%
First Consolidated Bank, Inc. 372,255,186.21 1,671,795,340.03 22.27%
Tong Yang Savings Bank, Inc. 90,160,279.49 407,756,152.68 22.11%
Cordillera Savings Bank, Inc. 21,144,063.87 97,381,465.00 21.71%
Producers Savings Bank Corporation 150,497,298.52 701,811,191.57 21.44%
BPI Family Savings Bank, Inc. 3,101,887,737.55 14,481,315,010.85 21.42%
Equicom Savings Bank, Inc. 91,828,345.71 461,617,258.29 19.89%
BPI Direct Savings Bank, Inc. 158,748,252.54 801,926,465.90 19.80%
Philippine Business Bank, Inc. 764,916,007.37 3,922,725,430.38 19.50%
World Partners Bank 30,418,730.86 157,957,368.73 19.26%
Maritime Savings Bank Corporation 12,532,225.20 65,402,781.73 19.16%
RCBC Savings Bank, Inc. 1,240,532,347.87 6,792,900,833.67 18.26%
Business and Consumers Bank 12,969,732.74 78,446,370.26 16.53%
Sampaguita Savings Bank, Inc. 10,572,407.09 64,708,123.36 16.34%
Wealth Development Bank Corporation 57,490,084.44 353,186,841.84 16.28%
Quezon Coconut Producers Savings and Loan Bank 9,350,997.62 57,580,765.13 16.24%
BPI Globe BanKO, Inc., A Savings Bank 54,467,929.26 360,144,746.12 15.12%
Pacific Ace Savings Bank, Inc. 10,252,586.49 72,319,136.67 14.18%
Pride Star Development Bank, Inc. 8,692,326.39 67,743,003.08 12.83%
Northpoint Development Bank, Inc. 5,705,839.36 50,002,124.18 11.41%
City Savings Bank, Inc. 203,764,171.46 1,977,741,378.55 10.30%
Dungganon Bank (A Microfinance Thrift Bank), Inc. 6,045,070.42 62,917,082.13 9.61%
UCPB Savings Bank 187,376,711.23 2,125,681,500.16 8.81%
Dumaguete City Development Bank, Inc. 16,734,272.56 203,578,072.13 8.22%
Sun Savings Bank, Inc. 5,357,675.89 72,664,822.80 7.37%
China Bank Savings Inc. 82,041,848.35 1,134,231,220.75 7.23%
Card SME Bank, Inc., A Thrift Bank 11,987,442.75 179,116,409.99 6.69%
Life Savings Bank, Inc. 3,465,831.47 63,317,167.29 5.47%
Optimum Development Bank, Inc. 32,270,327.60 660,520,247.44 4.89%
CityState Savings Bank, Inc. 34,636,907.54 773,945,359.88 4.48%
Bataan Savings and Loan Bank 3,084,817.02 77,808,302.16 3.96%
Bank One Savings and Trust Corporation 19,402,717.57 520,315,658.47 3.73%
Tower Development Bank 3,682,116.29 113,529,745.58 3.24%
HSBC Savings Bank (Phils), Inc. 89,622,250.40 2,938,428,344.64 3.05%
Queen City Development Bank, Inc. 14,159,937.67 669,119,640.27 2.12%
Microfinance Maximum Savings Bank, Inc. 1,056,155.26 62,353,596.96 1.69%
Progress Savings and Loan Bank, Inc. 1,338,363.83 84,103,829.68 1.59%
Century Savings Bank Corporation 10,752,766.23 883,428,855.96 1.22%
Merchants Savings and Loan Association, Inc. 1,110,039.79 658,930,240.51 0.17%
BDO Elite Savings Bank, Inc. 0.00 1,527,059,062.56 0.00%
Isla Bank (A Thrift Bank), Inc. 0.00 630,420,695.84 0.00%
Philippine Resources Savings Banking Corporation 0.00 1,195,719,804.03 0.00%
United Overseas Bank Philippines 0.00 704,856,569.14 0.00%
Grand Total 19,830,026,862.52 74,331,114,533.36 26.68%

Source: www.bsp.gov.ph


Of the sixty-six thrift banks in this list, seventeen have an NPL to Stockholders Equity Ratio of 30% or more.  These banks are as follows:
  1. Silangan Savings and Loan Bank, Inc. (171.14% of SE)
  2. Citibank Savings Inc. (157.04% of SE)
  3. Planters Development Bank (65.13% of SE)
  4. Security Bank Savings Corporation (64.84% of SE)
  5. Bataan Development Bank (57.79% of SE)
  6. Legazpi Savings Bank Inc. (56.83% of SE)
  7. Comsavings Bank (56.47% of SE)
  8. Philippine Postal Savings Bank (55.17% of SE)
  9. Opportunity Kauswagan Bank, Inc. (54.74% of SE)
  10. Metro-Cebu Public Savings Bank (51.22% of SE)
  11. Farmers Savings & Loan Bank (49.98% of SE)
  12. Sterling Bank of Asia, Inc. (48.39% of SE)
  13. Village Bank, Inc. (40.79% of SE)
  14. Pampanga Development Bank (36.81% of SE)
  15. Philippine Savings Bank (32.74% of SE)
  16. Malayan Bank Savings and Mortgage Bank, Inc. (32.16% of SE_
  17. Luzon Development Bank (31.56% of SE)


Another indicator of a bank's financial health is the level of DOSRI Loans in relation to a bank's Total Loan Portfolio.  Under current banking regulations, the limit on the amount of individual loans to DOSRI, of which 70% must be secured, should not exceed a bank's parent company's regulatory capital or 15% of the bank's parent company's total loan portfolio, whichever is lower.  These limits do not apply to loans secured by assets considered as non-risk as defined in the regulations. Therefore banks with significantly high DOSRI Loan to Total Loan Portfolio - Net ratios may be bumping up or exceeding the limits of compliance with DOSRI regulations.

Of the sixty-six banks listed as Thrift Banks, twenty-two reported having no DOSRI Loans.  Of the forty-four thrift banks with DOSRI Loans, fifteen had DOSRI Loans that made up less than 1% of their Total Loan Portfolios.  However, several thrift banks had DOSRI Loans that comprised more than 15% of their Total Loan Portfolios.  They are as follows:
  1. Penbank, Inc. (21.89% of TLP-Net)
  2. The Queen City Development Bank (21.46% of TLP-Net)
  3. CityState Savings Bank, Inc. (20.46% of TLP-Net)
  4. Life Savings Bank (19.27% of TLP-Net)


Philippine Thrift Banking System
DOSRI as % of TLP-Net
June 30, 2012









DOSRI TLP-Net DOSRI/TLP-Net
Bank (In Php) (In Php) (In %)
Penbank, Inc. (A Private Development Bank) 217,300,169.60 992,717,997.78 21.89%
Queen City Development Bank, Inc. 283,693,169.37 1,321,719,166.55 21.46%
CityState Savings Bank, Inc. 296,981,670.93 1,451,505,166.65 20.46%
Life Savings Bank, Inc. 10,717,950.20 54,138,605.19 19.80%
Silangan Savings and Loan Bank, Inc. 5,118,257.50 34,494,582.77 14.84%
World Partners Bank 108,369,578.06 841,238,193.47 12.88%
Village Bank, Inc. 40,911,220.58 339,283,229.03 12.06%
Malasiqui Progressive Savings and Loan Bank, Inc. 5,450,000.00 50,584,024.99 10.77%
Pampanga Development Bank 18,406,018.40 179,572,569.63 10.25%
Tower Development Bank 14,571,080.10 143,019,035.08 10.19%
Sampaguita Savings Bank, Inc. 4,500,000.00 50,248,485.44 8.96%
Opportunity Kauswagan Bank, Inc. 19,339,041.10 244,466,985.22 7.91%
Philippine Postal Savings Bank, Inc. 190,660,354.20 2,728,397,058.22 6.99%
Quezon Coconut Producers Savings and Loan Bank 2,378,442.60 46,095,116.67 5.16%
Century Savings Bank Corporation 25,000,000.00 498,115,266.79 5.02%
Luzon Development Bank 72,810,817.87 1,505,292,322.36 4.84%
Maritime Savings Bank Corporation 5,029,322.89 117,760,011.39 4.27%
Bank One Savings and Trust Corporation 29,893,333.33 713,989,303.26 4.19%
Hiyas Banking Corporation 15,151,873.63 368,935,912.58 4.11%
Cordillera Savings Bank, Inc. 5,346,034.96 140,412,050.46 3.81%
Dumaguete City Development Bank, Inc. 15,051,131.19 396,673,725.59 3.79%
Producers Savings Bank Corporation 98,233,426.66 3,486,064,084.48 2.82%
Philippine Savings Bank 1,831,354,695.43 75,991,591,549.78 2.41%
Legazpi Savings Bank, Inc. 26,645,180.28 1,316,961,383.96 2.02%
Comsavings Bank 6,622,529.48 350,740,295.16 1.89%
Planters Development Bank 588,268,255.43 33,235,612,946.99 1.77%
Philippine Business Bank, Inc. 219,932,551.99 15,848,408,952.74 1.39%
University Savings Bank, Inc. 5,311,014.03 432,813,979.68 1.23%
Malayan Bank Savings and Mortgage Bank, Inc. 39,528,633.77 3,888,868,219.48 1.02%
HSBC Savings Bank (Phils), Inc. 94,527,359.43 11,945,661,353.63 0.79%
Lemery Savings and Loan Bank, Inc. 349,475.00 69,795,623.91 0.50%
Security Bank Savings Corporation 16,512,938.23 3,395,634,954.06 0.49%
RCBC Savings Bank, Inc. 145,761,846.86 34,755,158,754.67 0.42%
China Bank Savings Inc. 10,146,125.78 2,807,516,592.00 0.36%
Tong Yang Savings Bank, Inc. 2,188,040.40 881,823,607.97 0.25%
Wealth Development Bank Corporation 3,175,468.29 1,592,417,658.92 0.20%
First Consolidated Bank, Inc. 11,003,949.28 6,075,918,134.60 0.18%
Farmers Savings and Loan Bank, Inc. 388,631.04 223,087,106.07 0.17%
Equicom Savings Bank, Inc. 2,870,501.13 3,211,466,848.36 0.09%
UCPB Savings Bank 3,085,789.10 5,440,675,119.72 0.06%
Sterling Bank of Asia, Inc. 5,230,184.85 14,828,580,124.53 0.04%
BPI Family Savings Bank, Inc. 46,256,800.06 135,760,881,316.65 0.03%
BPI Direct Savings Bank, Inc. 1,824,071.66 5,432,888,203.95 0.03%
Isla Bank (A Thrift Bank), Inc. 109,595.85 619,934,759.37 0.02%
Allied Savings Bank 0.00 2,286,321,857.43 0.00%
Bataan Development Bank 0.00 152,823,325.49 0.00%
Bataan Savings and Loan Bank 0.00 31,185,673.18 0.00%
BPI Globe BanKO, Inc., A Savings Bank 0.00 2,188,003,299.43 0.00%
Business and Consumers Bank 0.00 102,214,183.62 0.00%
Card SME Bank, Inc., A Thrift Bank 0.00 453,488,263.37 0.00%
Citibank Savings Inc. 0.00 8,384,518,529.47 0.00%
City Savings Bank, Inc. 0.00 11,534,816,408.46 0.00%
Dungganon Bank (A Microfinance Thrift Bank), Inc. 0.00 88,240,777.42 0.00%
Iloilo City Development Bank 0.00 242,685,753.89 0.00%
Merchants Savings and Loan Association, Inc. 0.00 156,464,948.25 0.00%
Metro-Cebu Public Savings Bank 0.00 48,479,236.03 0.00%
Microfinance Maximum Savings Bank, Inc. 0.00 15,382,763.37 0.00%
Northpoint Development Bank, Inc. 0.00 1,869,665.92 0.00%
Optimum Development Bank, Inc. 0.00 715,434,371.84 0.00%
Pacific Ace Savings Bank, Inc. 0.00 14,484,805.38 0.00%
Philippine Resources Savings Banking Corporation 0.00 6,472,098,955.98 0.00%
Pride Star Development Bank, Inc. 0.00 36,843,209.72 0.00%
Progress Savings and Loan Bank, Inc. 0.00 4,835,874.11 0.00%
Sun Savings Bank, Inc. 0.00 15,094,700.16 0.00%
United Overseas Bank Philippines 0.00 611,561,387.68 0.00%
BDO Elite Savings Bank, Inc. 0.00 0.00 NA
Grand Total 4,546,006,530.54 407,368,008,370.00 1.12%

Source: www.bsp.gov.ph


DOSRI Rules indicate that, in the aggregate, DOSRI Loans should not exceed the total equity of the bank.  Therefore banks with a significantly high DOSRI Loans as a percentage of Stockholders Equity may be approaching DOSRI Limits.



Philippine Thrift Banking System
DOSRI as % of Stockholders Equity
June 30, 2012









DOSRI SE DOSRI/SE
Bank (In Php) (In Php) (In %)
Penbank, Inc. (A Private Development Bank) 217,300,169.60 260,723,835.90 83.34%
World Partners Bank 108,369,578.06 157,957,368.73 68.61%
Village Bank, Inc. 40,911,220.58 70,653,647.74 57.90%
Silangan Savings and Loan Bank, Inc. 5,118,257.50 9,740,651.89 52.55%
Queen City Development Bank, Inc. 283,693,169.37 669,119,640.27 42.40%
CityState Savings Bank, Inc. 296,981,670.93 773,945,359.88 38.37%
Philippine Postal Savings Bank, Inc. 190,660,354.20 688,770,339.88 27.68%
Opportunity Kauswagan Bank, Inc. 19,339,041.10 87,108,376.48 22.20%
Luzon Development Bank 72,810,817.87 382,298,596.47 19.05%
Pampanga Development Bank 18,406,018.40 105,904,741.40 17.38%
Life Savings Bank, Inc. 10,717,950.20 63,317,167.29 16.93%
Planters Development Bank 588,268,255.43 3,931,756,700.13 14.96%
Legazpi Savings Bank, Inc. 26,645,180.28 178,699,023.83 14.91%
Producers Savings Bank Corporation 98,233,426.66 701,811,191.57 14.00%
Philippine Savings Bank 1,831,354,695.43 13,303,936,411.40 13.77%
Tower Development Bank 14,571,080.10 113,529,745.58 12.83%
Malasiqui Progressive Savings and Loan Bank, Inc. 5,450,000.00 49,198,079.06 11.08%
Hiyas Banking Corporation 15,151,873.63 157,846,553.87 9.60%
Maritime Savings Bank Corporation 5,029,322.89 65,402,781.73 7.69%
Dumaguete City Development Bank, Inc. 15,051,131.19 203,578,072.13 7.39%
Sampaguita Savings Bank, Inc. 4,500,000.00 64,708,123.36 6.95%
Bank One Savings and Trust Corporation 29,893,333.33 520,315,658.47 5.75%
Philippine Business Bank, Inc. 219,932,551.99 3,922,725,430.38 5.61%
Cordillera Savings Bank, Inc. 5,346,034.96 97,381,465.00 5.49%
Quezon Coconut Producers Savings and Loan Bank 2,378,442.60 57,580,765.13 4.13%
Malayan Bank Savings and Mortgage Bank, Inc. 39,528,633.77 975,332,768.21 4.05%
HSBC Savings Bank (Phils), Inc. 94,527,359.43 2,938,428,344.64 3.22%
Century Savings Bank Corporation 25,000,000.00 883,428,855.96 2.83%
University Savings Bank, Inc. 5,311,014.03 205,163,329.73 2.59%
RCBC Savings Bank, Inc. 145,761,846.86 6,792,900,833.67 2.15%
Security Bank Savings Corporation 16,512,938.23 795,088,386.40 2.08%
Comsavings Bank 6,622,529.48 350,468,111.01 1.89%
Wealth Development Bank Corporation 3,175,468.29 353,186,841.84 0.90%
China Bank Savings Inc. 10,146,125.78 1,134,231,220.75 0.89%
First Consolidated Bank, Inc. 11,003,949.28 1,671,795,340.03 0.66%
Equicom Savings Bank, Inc. 2,870,501.13 461,617,258.29 0.62%
Tong Yang Savings Bank, Inc. 2,188,040.40 407,756,152.68 0.54%
Lemery Savings and Loan Bank, Inc. 349,475.00 69,169,391.20 0.51%
Farmers Savings and Loan Bank, Inc. 388,631.04 100,549,296.43 0.39%
Sterling Bank of Asia, Inc. 5,230,184.85 1,633,872,061.27 0.32%
BPI Family Savings Bank, Inc. 46,256,800.06 14,481,315,010.85 0.32%
BPI Direct Savings Bank, Inc. 1,824,071.66 801,926,465.90 0.23%
UCPB Savings Bank 3,085,789.10 2,125,681,500.16 0.15%
Isla Bank (A Thrift Bank), Inc. 109,595.85 630,420,695.84 0.02%
Allied Savings Bank 0.00 976,492,885.94 0.00%
Bataan Development Bank 0.00 70,387,217.02 0.00%
Bataan Savings and Loan Bank 0.00 77,808,302.16 0.00%
BDO Elite Savings Bank, Inc. 0.00 1,527,059,062.56 0.00%
BPI Globe BanKO, Inc., A Savings Bank 0.00 360,144,746.12 0.00%
Business and Consumers Bank 0.00 78,446,370.26 0.00%
Card SME Bank, Inc., A Thrift Bank 0.00 179,116,409.99 0.00%
Citibank Savings Inc. 0.00 1,818,756,670.18 0.00%
City Savings Bank, Inc. 0.00 1,977,741,378.55 0.00%
Dungganon Bank (A Microfinance Thrift Bank), Inc. 0.00 62,917,082.13 0.00%
Iloilo City Development Bank 0.00 62,433,690.20 0.00%
Merchants Savings and Loan Association, Inc. 0.00 658,930,240.51 0.00%
Metro-Cebu Public Savings Bank 0.00 60,255,751.33 0.00%
Microfinance Maximum Savings Bank, Inc. 0.00 62,353,596.96 0.00%
Northpoint Development Bank, Inc. 0.00 50,002,124.18 0.00%
Optimum Development Bank, Inc. 0.00 660,520,247.44 0.00%
Pacific Ace Savings Bank, Inc. 0.00 72,319,136.67 0.00%
Philippine Resources Savings Banking Corporation 0.00 1,195,719,804.03 0.00%
Pride Star Development Bank, Inc. 0.00 67,743,003.08 0.00%
Progress Savings and Loan Bank, Inc. 0.00 84,103,829.68 0.00%
Sun Savings Bank, Inc. 0.00 72,664,822.80 0.00%
United Overseas Bank Philippines 0.00 704,856,569.14 0.00%
Grand Total 4,546,006,530.54 74,331,114,533.36 6.12%

Source: www.bsp.gov.ph


Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “substantially on the same terms as with other individuals and businesses of comparable risks.  (See Planters Development Bank Annual Report December 31, 2010). Loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:
  1. Written off as soon as possible;
  2. Refinanced or Restructured to become current (this requires Board of Directors Approval); or are
  3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 
As a result, the Thrift Bank Industry reported that PHP 505.858 million, or 11.13% of its DOSRI Loans fell past due as of June 30, 2012.  This ratio is more than double the Thrift Bank Industry's NPL to TLP-Net Ratio of 4.87% as of the same period.  Of the forty-four banks with DOSRI Loans, forty had zero past due DOSRI Loans.  Of the four remaining banks  in this list, two had past due DOSRI Loans exceeding 30% of their Total DOSRI Loan Portfolio.  These three are as follows:
  1. Silangan Savings and Loan Bank, Inc. (64.70% of DOSRI Loans)
  2. Cordillera Savings Bank, Inc. (33.13% of DOSRI Loans)

Philippine Thrift Banking System
DOSRI Past Due as % of DOSRI
June 30, 2012





DOSRI Past Due DOSRI DOSRI Past Due/DOSRI
Bank (In Php) (In Php) (In %)
Silangan Savings and Loan Bank, Inc. 3,311,630.00 5,118,257.50 64.70%
Cordillera Savings Bank, Inc. 1,771,325.87 5,346,034.96 33.13%
Philippine Savings Bank 500,774,859.76 1,831,354,695.43 27.34%
UCPB Savings Bank 4.00 3,085,789.10 0.00%
Bank One Savings and Trust Corporation 0.00 29,893,333.33 0.00%
BPI Direct Savings Bank, Inc. 0.00 1,824,071.66 0.00%
BPI Family Savings Bank, Inc. 0.00 46,256,800.06 0.00%
Century Savings Bank Corporation 0.00 25,000,000.00 0.00%
China Bank Savings Inc. 0.00 10,146,125.78 0.00%
CityState Savings Bank, Inc. 0.00 296,981,670.93 0.00%
Comsavings Bank 0.00 6,622,529.48 0.00%
Dumaguete City Development Bank, Inc. 0.00 15,051,131.19 0.00%
Equicom Savings Bank, Inc. 0.00 2,870,501.13 0.00%
Farmers Savings and Loan Bank, Inc. 0.00 388,631.04 0.00%
First Consolidated Bank, Inc. 0.00 11,003,949.28 0.00%
Hiyas Banking Corporation 0.00 15,151,873.63 0.00%
HSBC Savings Bank (Phils), Inc. 0.00 94,527,359.43 0.00%
Isla Bank (A Thrift Bank), Inc. 0.00 109,595.85 0.00%
Legazpi Savings Bank, Inc. 0.00 26,645,180.28 0.00%
Lemery Savings and Loan Bank, Inc. 0.00 349,475.00 0.00%
Life Savings Bank, Inc. 0.00 10,717,950.20 0.00%
Luzon Development Bank 0.00 72,810,817.87 0.00%
Malasiqui Progressive Savings and Loan Bank, Inc. 0.00 5,450,000.00 0.00%
Malayan Bank Savings and Mortgage Bank, Inc. 0.00 39,528,633.77 0.00%
Maritime Savings Bank Corporation 0.00 5,029,322.89 0.00%
Opportunity Kauswagan Bank, Inc. 0.00 19,339,041.10 0.00%
Pampanga Development Bank 0.00 18,406,018.40 0.00%
Penbank, Inc. (A Private Development Bank) 0.00 217,300,169.60 0.00%
Philippine Business Bank, Inc. 0.00 219,932,551.99 0.00%
Philippine Postal Savings Bank, Inc. 0.00 190,660,354.20 0.00%
Planters Development Bank 0.00 588,268,255.43 0.00%
Producers Savings Bank Corporation 0.00 98,233,426.66 0.00%
Queen City Development Bank, Inc. 0.00 283,693,169.37 0.00%
Quezon Coconut Producers Savings and Loan Bank 0.00 2,378,442.60 0.00%
RCBC Savings Bank, Inc. 0.00 145,761,846.86 0.00%
Sampaguita Savings Bank, Inc. 0.00 4,500,000.00 0.00%
Security Bank Savings Corporation 0.00 16,512,938.23 0.00%
Sterling Bank of Asia, Inc. 0.00 5,230,184.85 0.00%
Tong Yang Savings Bank, Inc. 0.00 2,188,040.40 0.00%
Tower Development Bank 0.00 14,571,080.10 0.00%
University Savings Bank, Inc. 0.00 5,311,014.03 0.00%
Village Bank, Inc. 0.00 40,911,220.58 0.00%
Wealth Development Bank Corporation 0.00 3,175,468.29 0.00%
World Partners Bank 0.00 108,369,578.06 0.00%
Allied Savings Bank 0.00 0.00 NA
Bataan Development Bank 0.00 0.00 NA
Bataan Savings and Loan Bank 0.00 0.00 NA
BDO Elite Savings Bank, Inc. 0.00 0.00 NA
BPI Globe BanKO, Inc., A Savings Bank 0.00 0.00 NA
Business and Consumers Bank 0.00 0.00 NA
Card SME Bank, Inc., A Thrift Bank 0.00 0.00 NA
Citibank Savings Inc. 0.00 0.00 NA
City Savings Bank, Inc. 0.00 0.00 NA
Dungganon Bank (A Microfinance Thrift Bank), Inc. 0.00 0.00 NA
Iloilo City Development Bank 0.00 0.00 NA
Merchants Savings and Loan Association, Inc. 0.00 0.00 NA
Metro-Cebu Public Savings Bank 0.00 0.00 NA
Microfinance Maximum Savings Bank, Inc. 0.00 0.00 NA
Northpoint Development Bank, Inc. 0.00 0.00 NA
Optimum Development Bank, Inc. 0.00 0.00 NA
Pacific Ace Savings Bank, Inc. 0.00 0.00 NA
Philippine Resources Savings Banking Corporation 0.00 0.00 NA
Pride Star Development Bank, Inc. 0.00 0.00 NA
Progress Savings and Loan Bank, Inc. 0.00 0.00 NA
Sun Savings Bank, Inc. 0.00 0.00 NA
United Overseas Bank Philippines 0.00 0.00 NA
Grand Total 505,857,819.63 4,546,006,530.54 11.13%

Source: www.bsp.gov.ph
Posted by at 8 comments:
Labels: , , , , ,

Monday, December 3, 2012

Bank of Commerce Takes the Gold in NPLs as of June 30, 2012


DOSRI.  Short for DOSRI Loans and Transactions.  Otherwise known as loans to Directors, Officers, Stockholders, and Related Interests (DOSRI).  Regulators and Legislators have established laws and regulations that limit DOSRI loans.  The General Banking Act and BSP regulations limit the amount of the loans granted by a bank to a single borrower to 25% of equity.  The amount of individual loans to DOSRI, of which 70% must be secured, should not exceed the amount of the deposit and book value of the investment in the bank.  In the aggregate, loans to DOSRI generally should not exceed the total equity or 15% of the total loan portfolio of the bank, whichever is lower.

In the Philippine Commercial Banking Industry, DOSRI Loans stood at Php 214.871 billion, or 6.59% of a Total Loan Portfolio - Net (TLP-Net) of Php 3.261 trillion as of June 30, 2012

Editor's Note: Data is culled from  the Published Statements of Condition of individual commercial banks found in www.bsp.gov.ph.  Banks highlighted in yellow are classified as Distressed Banks.  The level of distressed is measured by the Ratio of their Total Distressed Assets/Total Capital Cushion as of June 30, 2012.  See a previous blog post: "Philippine U/KBs Show Some Deterioration in the 2nd Qtr. of 2012". 
Philippine Universal and Commercial Banking System
DOSRI as % of TLP-Net
June 30, 2012









DOSRITLP-NetDOSRI/TLP-Net
Bank(In Php)(In PHP)(In %)
Development Bank of the Philippines37,917,488,222.01132,330,130,718.8828.65%
Land Bank of the Philippines68,646,469,730.17249,893,860,362.2427.47%
China Banking Corporation18,459,703,104.87160,336,920,730.8011.51%
Banco De Oro Unibank Inc.59,353,773,766.32687,449,848,983.948.63%
Robinsons Bank Corporation1,092,204,794.1815,901,720,790.626.87%
Rizal Commercial Banking Corporation4,774,849,864.29147,566,030,748.893.24%
Bank of Commerce1,107,424,200.5140,286,168,910.842.75%
Philippine National Bank3,289,296,631.39130,344,611,716.692.52%
Metropolitan Bank & Trust Company8,141,482,227.33356,405,295,315.462.28%
Allied Banking Corporation2,185,463,587.9397,005,209,447.242.25%
East West Banking Corporation1,110,900,418.5752,595,614,642.102.11%
Maybank Philippines Inc.579,226,472.3327,960,133,075.292.07%
Bank of the Philippine Islands5,111,996,958.34381,129,488,188.361.34%
Union Bank of the Philippines959,960,804.9486,315,941,248.741.11%
Asia United Bank280,570,289.0030,447,777,903.990.92%
HongKong & Shanghai Banking Corporation574,583,499.0171,135,474,496.390.81%
Bank of America N.A.27,542,992.474,366,919,280.840.63%
Citibank N.A.588,421,598.88127,326,018,344.680.46%
United Coconut Planters Bank273,499,739.7064,560,997,791.910.42%
JP Morgan Chase Bank National Association54,865,997.9021,401,181,445.240.26%
Philippine Bank of Communications19,185,960.769,373,967,066.040.20%
Philippine Veterans Bank47,571,251.3424,461,896,932.690.19%
Chinatrust (Philippines) Commercial Banking Corporation20,156,646.0612,626,685,303.370.16%
ANZ Banking Group Ltd39,648,428.7025,012,985,590.310.16%
Security Bank Corporation186,843,553.26121,418,657,430.700.15%
Standard Chartered Bank18,590,466.9537,400,519,794.200.05%
The Bank of Tokyo - Mitsubishi UFJ Ltd8,860,884.9223,472,630,029.700.04%
Korea Exchange Bank673,920.005,265,334,464.090.01%
Al Amanah Islamic Bank of the Philippines0.00286,658,067.440.00%
Bangkok Bank Public Co. Ltd.0.003,308,082,971.500.00%
Bank of China Limited - Manila Branch0.005,022,505,240.780.00%
BDO Private Bank, Inc.0.006,045,408,925.810.00%
Deutsche Bank AG0.0024,392,915,946.480.00%
Internationale Nederlanden Groep Bank0.009,623,642,231.230.00%
Mega International Commercial Bank Co. Ltd0.007,024,204,490.460.00%
Mizuho Corporate Bank Ltd - Manila Branch0.0025,422,078,830.340.00%
Philippine Trust Company0.0035,904,262,386.840.00%
Grand Total214,871,256,012.133,260,821,779,845.126.59%

Source: www.bsp.gov.ph

Of the 37 banks in this list, nine banks had no DOSRI loans as of June 30, 2012.  Of the 29 banks that reported DOSRI loans, the ratio of DOSRI Loans to Total Loan Portfolio - Net as of June 30, 2012 was slightly higher (6.59%) than the 6.07% ratio reported for all commercial banks as of March 31, 2012.  The banks with the highest ratio of DOSRI Loans to TLP-Net were government banks:
  1. Development Bank of the Philippines (28.65% of TLP-Net)
  2. Land Bank of the Philippines (27.47% of TLP-Net)
DOSRI rules indicate that DOSRI Loans, in the aggregate, should not exceed the total equity of the bank.  Therefore banks with significantly high DOSRI Loans as a percentage of Total Stockholders Equity (SE) may be approaching DOSRI Limits.  In this matter, two government banks again stand out:
  1. Development Bank of the Philippines (96.88% of SE)
  2. Land Bank of the Philippines (95.30% of SE)
A third bank, Banco de Oro Unibank has DOSRI Loans equivalent to 58.23% of SE as of June 30, 2012, up significantly from 30.61% as of March 31, 2012.  China Banking Corporation also had DOSRI Loans equivalent to more than 50% of SE as of June 30, 2012, up very significantly from 21.28% as of March 31, 2012.  On an overall basis, DOSRI Loans comprised 28.43% of Stockholders Equity as of June 30, 2012, up from 24.01% as of March 31, 2012.

Philippine Universal and Commercial Banking System
DOSRI as % of Stockholders Equity
June 30, 2012









DOSRISEDOSRI/SE
Bank(In Php)(In PHP)(In %)
Development Bank of the Philippines37,917,488,222.0139,139,801,398.2196.88%
Land Bank of the Philippines68,646,469,730.1772,035,398,618.5995.30%
Banco De Oro Unibank Inc.59,353,773,766.32101,929,325,323.6758.23%
China Banking Corporation18,459,703,104.8736,037,127,084.4851.22%
Robinsons Bank Corporation1,092,204,794.185,400,718,494.9120.22%
Allied Banking Corporation2,185,463,587.9318,326,663,200.6811.93%
Rizal Commercial Banking Corporation4,774,849,864.2940,339,304,322.0211.84%
HongKong & Shanghai Banking Corporation574,583,499.015,388,712,213.2010.66%
Maybank Philippines Inc.579,226,472.335,535,707,537.0310.46%
Philippine National Bank3,289,296,631.3937,122,489,253.608.86%
Metropolitan Bank & Trust Company8,141,482,227.33106,194,109,504.717.67%
Citibank N.A.588,421,598.887,841,168,502.187.50%
East West Banking Corporation1,110,900,418.5716,170,114,535.466.87%
Bank of Commerce1,107,424,200.5117,557,056,210.056.31%
Bank of the Philippine Islands5,111,996,958.3487,074,496,134.625.87%
Bank of America N.A.27,542,992.47596,946,705.204.61%
JP Morgan Chase Bank National Association54,865,997.901,727,884,545.303.18%
Asia United Bank280,570,289.0010,173,091,443.182.76%
Union Bank of the Philippines959,960,804.9439,593,140,857.562.42%
ANZ Banking Group Ltd39,648,428.702,023,998,541.561.96%
United Coconut Planters Bank273,499,739.7018,524,593,394.881.48%
The Bank of Tokyo - Mitsubishi UFJ Ltd8,860,884.92746,456,907.951.19%
Standard Chartered Bank18,590,466.951,662,661,839.141.12%
Philippine Veterans Bank47,571,251.345,182,204,888.330.92%
Security Bank Corporation186,843,553.2634,857,762,333.000.54%
Chinatrust (Philippines) Commercial Banking Corporation20,156,646.066,118,237,659.450.33%
Philippine Bank of Communications19,185,960.768,262,907,312.020.23%
Korea Exchange Bank673,920.00561,460,316.560.12%
Al Amanah Islamic Bank of the Philippines0.00473,003,657.240.00%
Bangkok Bank Public Co. Ltd.0.001,150,161,682.460.00%
Bank of China Limited - Manila Branch0.00610,490,846.110.00%
BDO Private Bank, Inc.0.005,204,459,324.380.00%
Deutsche Bank AG0.001,617,692,819.390.00%
Internationale Nederlanden Groep Bank0.002,771,241,312.150.00%
Mega International Commercial Bank Co. Ltd0.00691,445,235.150.00%
Mizuho Corporate Bank Ltd - Manila Branch0.001,275,769,667.830.00%
Philippine Trust Company0.0015,758,749,258.440.00%
Grand Total214,871,256,012.13755,676,552,880.6928.43%

Source: www.bsp.gov.ph




Banks often take pains to avoid DOSRI Loans from falling past due. Although bank policies often state that DOSRI Loans are made “on commercial, arm's length terms, i.e., substantially on the same terms as loans to other individuals and businesses of comparable risks” (See RCBC's Consolidated Financial Statements as of December 31, 2010), loan underwriting standards should be tighter because a past due DOSRI loan reflects badly on the bank.    DOSRI Loans that fall past due are often:
  1. Written off as soon as possible;
  2. Refinanced or Restructured to become current; or are
  3. Technically reclassified as a general NPL (like if a loan to a former bank officer falls past due). 
As a result, only Php 0.539 billion of DOSRI Loans or 0..25% are past due out of a Total DOSRI Loan Portfolio of Php 214.871 billion as of June 30, 2012, down significantly from 0.32% as of March 31, 2012.



Philippine Universal and Commercial Banking System
DOSRI Past Due as % of DOSRI
June 30, 2012





DOSRI Past DueDOSRIDOSRI Past Due/DOSRI
Bank(In PHP)(In PHP)(In %)
Rizal Commercial Banking Corporation525,431,611.244,774,849,864.2911.00%
Bank of America N.A.1,754,488.6227,542,992.476.37%
Asia United Bank5,945,458.44280,570,289.002.12%
United Coconut Planters Bank2,994,626.21273,499,739.701.09%
Chinatrust (Philippines) Commercial Banking Corporation73,276.1920,156,646.060.36%
Philippine Bank of Communications34,589.3219,185,960.760.18%
Standard Chartered Bank24,181.7318,590,466.950.13%
Bank of the Philippine Islands2,770,338.255,111,996,958.340.05%
Citibank N.A.205,789.59588,421,598.880.03%
China Banking Corporation40,842.0018,459,703,104.870.00%
Allied Banking Corporation0.002,185,463,587.930.00%
ANZ Banking Group Ltd0.0039,648,428.700.00%
Banco De Oro Unibank Inc.0.0059,353,773,766.320.00%
Bank of Commerce0.001,107,424,200.510.00%
Development Bank of the Philippines0.0037,917,488,222.010.00%
East West Banking Corporation0.001,110,900,418.570.00%
HongKong & Shanghai Banking Corporation0.00574,583,499.010.00%
JP Morgan Chase Bank National Association0.0054,865,997.900.00%
Korea Exchange Bank0.00673,920.000.00%
Land Bank of the Philippines0.0068,646,469,730.170.00%
Maybank Philippines Inc.0.00579,226,472.330.00%
Metropolitan Bank & Trust Company0.008,141,482,227.330.00%
Philippine National Bank0.003,289,296,631.390.00%
Philippine Veterans Bank0.0047,571,251.340.00%
Robinsons Bank Corporation0.001,092,204,794.180.00%
Security Bank Corporation0.00186,843,553.260.00%
The Bank of Tokyo - Mitsubishi UFJ Ltd0.008,860,884.920.00%
Union Bank of the Philippines0.00959,960,804.940.00%
Al Amanah Islamic Bank of the Philippines0.000.00NA
Bangkok Bank Public Co. Ltd.0.000.00NA
Bank of China Limited - Manila Branch0.000.00NA
BDO Private Bank, Inc.0.000.00NA
Deutsche Bank AG0.000.00NA
Internationale Nederlanden Groep Bank0.000.00NA
Mega International Commercial Bank Co. Ltd0.000.00NA
Mizuho Corporate Bank Ltd - Manila Branch0.000.00NA
Philippine Trust Company0.000.00NA
Grand Total539,275,201.59214,871,256,012.130.25%


Source: www.bsp.gov.ph

Given all the measures banks can take to prevent a DOSRI Loan from falling past due, it is not surprising to find past due rates of DOSRI Loans significantly below the NPL ratios of their Total Loan Portfolios.  What is generally surprising is to find DOSRI Loans that fall past due in significantly higher proportions than the banks NPL ratio on their Total Loan Portfolios.  Only three banks fall into this category:
  1. Rizal Commercial Banking Corporation (DOSRI Past Due Ratio of 11% versus an NPL Ratio of 0.86%)
  2. Bank of America N.A. (DOSRI Past Due Ratio of 6.37% versus an NPL Ratio of 0.00%)
The NPL Ratio of the Philippine Commercial Banking System has dropped slightly to 2.21% of Total Loan Portfolio - Net as of June 30, 2012 from 2.53% as of March 31, 2012.



Philippine Universal and Commercial Banking System
NPL as % of TLP-Net
June 30, 2012









NPLTLP-NetNPL/TLP
Bank(In Php)(In Php)(In %)
Bank of Commerce4,127,215,374.3740,286,168,910.8410.24%
United Coconut Planters Bank4,550,757,595.9764,560,997,791.917.05%
Philippine National Bank6,580,772,204.25130,344,611,716.695.05%
East West Banking Corporation2,434,617,349.2252,595,614,642.104.63%
Philippine Veterans Bank1,118,165,728.4524,461,896,932.694.57%
Union Bank of the Philippines3,321,506,763.2886,315,941,248.743.85%
Allied Banking Corporation3,620,865,825.6897,005,209,447.243.73%
Development Bank of the Philippines4,891,977,135.48132,330,130,718.883.70%
Philippine Trust Company1,187,297,173.2835,904,262,386.843.31%
Land Bank of the Philippines8,082,570,361.75249,893,860,362.243.23%
Standard Chartered Bank1,148,204,008.2837,400,519,794.203.07%
Maybank Philippines Inc.841,828,527.9727,960,133,075.293.01%
Chinatrust (Philippines) Commercial Banking Corporation373,752,807.1112,626,685,303.372.96%
Robinsons Bank Corporation463,679,512.2115,901,720,790.622.92%
China Banking Corporation4,182,883,177.08160,336,920,730.802.61%
Asia United Bank737,542,513.4330,447,777,903.992.42%
Banco De Oro Unibank Inc.11,005,621,686.35687,449,848,983.941.60%
Metropolitan Bank & Trust Company4,899,855,939.33356,405,295,315.461.37%
Bank of the Philippine Islands4,527,776,844.83381,129,488,188.361.19%
Philippine Bank of Communications110,498,322.409,373,967,066.041.18%
HongKong & Shanghai Banking Corporation815,276,281.0271,135,474,496.391.15%
Rizal Commercial Banking Corporation1,267,514,279.70147,566,030,748.890.86%
Security Bank Corporation854,299,182.91121,418,657,430.700.70%
Citibank N.A.882,189,033.18127,326,018,344.680.69%
Korea Exchange Bank36,302,160.895,265,334,464.090.69%
Al Amanah Islamic Bank of the Philippines1,232,146.27286,658,067.440.43%
Bangkok Bank Public Co. Ltd.5,804,155.553,308,082,971.500.18%
Bank of China Limited - Manila Branch8,660,895.915,022,505,240.780.17%
ANZ Banking Group Ltd23,339,114.8525,012,985,590.310.09%
The Bank of Tokyo - Mitsubishi UFJ Ltd125,938.8023,472,630,029.700.00%
Internationale Nederlanden Groep Bank86.249,623,642,231.230.00%
Bank of America N.A.0.004,366,919,280.840.00%
BDO Private Bank, Inc.0.006,045,408,925.810.00%
Deutsche Bank AG0.0024,392,915,946.480.00%
JP Morgan Chase Bank National Association0.0021,401,181,445.240.00%
Mega International Commercial Bank Co. Ltd0.007,024,204,490.460.00%
Mizuho Corporate Bank Ltd - Manila Branch0.0025,422,078,830.340.00%
Grand Total72,102,132,126.043,260,821,779,845.122.21%

Source: www.bsp.gov.ph


However, one bank has a significantly high NPL as a percentage of its stockholders equity as of June 30, 2012.  This bank is Standard Chartered Bank (NPL/SE Ratio of 69.06%).

Other banks with NPLs that are more than 20% of their stockholders equity are:
  1. United Coconut Planters Bank (NPL/SE Ratio of 24.57%)
  2. Bank of Commerce (NPL/SE Ratio of 23.51% of SE)
  3. Philippine Veterans Bank (NPL/SE Ratio of 21.58% of SE)
Again, any further deterioration in the value of these banks NPLs may lead to a significant reduction of the bank's capital, particularly if the bank has not adequately reserved capital for future losses on these NPLs.  But of the four banks listed above, three banks are listed as distressed:
  1. United Coconut Planters Bank
  2. Bank of Commerce
  3. Philippine Veterans Bank

Philippine Universal and Commercial Banking System
NPL as % of SE
June 30, 2012









NPLSENPL/SE
Bank(In PHP)(In PHP)(In %)
Standard Chartered Bank1,148,204,008.281,662,661,839.1469.06%
United Coconut Planters Bank4,550,757,595.9718,524,593,394.8824.57%
Bank of Commerce4,127,215,374.3717,557,056,210.0523.51%
Philippine Veterans Bank1,118,165,728.455,182,204,888.3321.58%
Allied Banking Corporation3,620,865,825.6818,326,663,200.6819.76%
Philippine National Bank6,580,772,204.2537,122,489,253.6017.73%
Maybank Philippines Inc.841,828,527.975,535,707,537.0315.21%
HongKong & Shanghai Banking Corporation815,276,281.025,388,712,213.2015.13%
East West Banking Corporation2,434,617,349.2216,170,114,535.4615.06%
Development Bank of the Philippines4,891,977,135.4839,139,801,398.2112.50%
China Banking Corporation4,182,883,177.0836,037,127,084.4811.61%
Citibank N.A.882,189,033.187,841,168,502.1811.25%
Land Bank of the Philippines8,082,570,361.7572,035,398,618.5911.22%
Banco De Oro Unibank Inc.11,005,621,686.35101,929,325,323.6710.80%
Robinsons Bank Corporation463,679,512.215,400,718,494.918.59%
Union Bank of the Philippines3,321,506,763.2839,593,140,857.568.39%
Philippine Trust Company1,187,297,173.2815,758,749,258.447.53%
Asia United Bank737,542,513.4310,173,091,443.187.25%
Korea Exchange Bank36,302,160.89561,460,316.566.47%
Chinatrust (Philippines) Commercial Banking Corporation373,752,807.116,118,237,659.456.11%
Bank of the Philippine Islands4,527,776,844.8387,074,496,134.625.20%
Metropolitan Bank & Trust Company4,899,855,939.33106,194,109,504.714.61%
Rizal Commercial Banking Corporation1,267,514,279.7040,339,304,322.023.14%
Security Bank Corporation854,299,182.9134,857,762,333.002.45%
Bank of China Limited - Manila Branch8,660,895.91610,490,846.111.42%
Philippine Bank of Communications110,498,322.408,262,907,312.021.34%
ANZ Banking Group Ltd23,339,114.852,023,998,541.561.15%
Bangkok Bank Public Co. Ltd.5,804,155.551,150,161,682.460.50%
Al Amanah Islamic Bank of the Philippines1,232,146.27473,003,657.240.26%
The Bank of Tokyo - Mitsubishi UFJ Ltd125,938.80746,456,907.950.02%
Internationale Nederlanden Groep Bank86.242,771,241,312.150.00%
Bank of America N.A.0.00596,946,705.200.00%
BDO Private Bank, Inc.0.005,204,459,324.380.00%
Deutsche Bank AG0.001,617,692,819.390.00%
JP Morgan Chase Bank National Association0.001,727,884,545.300.00%
Mega International Commercial Bank Co. Ltd0.00691,445,235.150.00%
Mizuho Corporate Bank Ltd - Manila Branch0.001,275,769,667.830.00%
Grand Total72,102,132,126.04755,676,552,880.699.54%

Source: www.bsp.gov.ph
Posted by at No comments:
Labels: , , , , ,
Subscribe to: Posts (Atom)