A Simple Stress Test of Philippine Banks as of September 30, 2018

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 156.90 billion or 8.20% of the PhP 1,912.78 billion in Stockholders Equity (SE) as of June 30, 2018.  So, writing off 50% of the Philippine Banks NPLs would reduce their aggregate stockholder's equity by a little less than 5%.

Naturally, some banks would be more affected than others.

The stockholder's equity of seven banks would be severely affected.  These banks are:

1. Overseas Filipino Bank (129.25% decline in SE)
2. Enterprise Bank (67.90% decline in SE)
3. Equicom Savings Bank (47.20% decline in SE)
4. UCPB Savings Bank (36.17% decline in SE)
5. Legazpi Savings Bank (30.21% decline in SE)
6. Sterling Bank of Asia (28.89% decline in SE)
7. Philippine Resources Savings Banking (25.57% decline in SE)

Some of these banks are distressed. For more information regarding this, please read The Top Distressed Philippine Banks as of September 30, 2018).

1. Overseas Filipino Bank (Distressed Ratio of 292.01%)
2. Enterprise Bank Inc (Distressed Ratio of 155.18%)
3. Equicom Savings Bank (Distressed Ratio of 122.89%)
4. Philippine Resources Savings Banking (Distressed Ratio of 103.36%)

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 September 30, 2018, "Classified Loans and Other Risky Assets" of the Philippine Banks amounted to PhP 383.42 billion or more than two times the size of the Philippine Banking System's NPLs of PhP 1456.90 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 383.42 billion or 19.36% of the Php 1.98 trillion in Total Capital Cushion of Philippine Banks as of September 30, 2018.

 

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 19.48% 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 1.95% and a 50% write-off of classified loans will reduce the banking system's Total Capital Cushion by 9.74%.

Individual Banks

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

 

1. Inter-Asia Development Bank (35.77% reduction in Total Capital Cushion)
2. Overseas Filipino Bank (27.23% reduction in Total Capital Cushion)

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

1. Inter-Asia Development Bank (71.53% reduction in Total Capital Cushion)
2. Overseas Filipino Bank (54.46% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (46.54% reduction in Total Capital Cushion)
4. Bangko Kabayan Inc (45.34% reduction in Total Capital Cushion)
5. Yuanta Savings Bank Philippines (32.81% reduction in Total Capital Cushion)
6. Malayan Bank Savings and Mortgage Bank Inc (25.04% reduction in Total Capital Cushion)

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

1. Inter-Asia Development Bank (107.30% reduction in Total Capital Cushion)
2. Overseas Filipino Bank (81.69% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (69.81% reduction in Total Capital Cushion)
4. Bangko Kabayan Inc (68.01% reduction in Total Capital Cushion)
5. Yuanta Savings Bank Philippines (49.22% reduction in Total Capital Cushion)
6. Malayan Bank Savings and Mortgage Bank Inc (37.56% reduction in Total Capital Cushion) 
7. RCBC Savings Bank Inc (34.93% reduction in Total Capital Cushion)
8. Bank of China Limited - Manila Branch (34.12% reduction in Total Capital Cushion)
9. Bataan Development Bank (29.26% reduction in Total Capital Cushion)
10. Equicom Savings Bank (26.48% reduction in Total Capital Cushion)
11. Legazpi Savings Bank Inc (26.14% reduction in Total Capital Cushion)

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

1. Inter-Asia Development Bank (143.06% reduction in Total Capital Cushion)
2. Overseas Filipino Bank (108.92% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (93.08% reduction in Total Capital Cushion)
4. Bangko Kabayan Inc (90.69% reduction in Total Capital Cushion)
5. Yuanta Savings Bank Philippines (65.63% reduction in Total Capital Cushion)
6. Malayan Bank Savings and Mortgage Bank Inc (50.08% reduction in Total Capital Cushion) 
7. RCBC Savings Bank Inc (46.58% reduction in Total Capital Cushion)
8. Bank of China Limited - Manila Branch (45.49% reduction in Total Capital Cushion)
9. Bataan Development Bank (39.01% reduction in Total Capital Cushion)
10. Equicom Savings Bank (35.31% reduction in Total Capital Cushion)
11. Legazpi Savings Bank Inc (34.85% reduction in Total Capital Cushion)
12. Philippine Resources Savings Banking (30.52% reduction in Total Capital Cushion)
13. Robinsons Bank Corporation (28.76% reduction in Total Capital Cushion)
14. China Bank Savings Inc (27.59% reduction in Total Capital Cushion)
15. Dumaguete City Development Bank (25.86% reduction in Total Capital Cushion)

A 50% write-off of Classified Loans will totally wipe out the Total Capital Cushion of four banks and severely affect (reduce by 30% or more) the Total Capital Cushion of sixteen more banks:

 

1. Inter-Asia Development Bank (178.83% reduction in Total Capital Cushion)
2. Overseas Filipino Bank (136.15% reduction in Total Capital Cushion)
3. United Coconut Planters Bank (116.35% reduction in Total Capital Cushion)
4. Bangko Kabayan Inc (113.36% reduction in Total Capital Cushion)
5. Yuanta Savings Bank Philippines (82.03% reduction in Total Capital Cushion)
6. Malayan Bank Savings and Mortgage Bank Inc (62.60% reduction in Total Capital Cushion) 
7. RCBC Savings Bank Inc (58.22% reduction in Total Capital Cushion)
8. Bank of China Limited - Manila Branch (56.86% reduction in Total Capital Cushion)
9. Bataan Development Bank (48.76% reduction in Total Capital Cushion)
10. Equicom Savings Bank (44.13% reduction in Total Capital Cushion)
11. Legazpi Savings Bank Inc (43.57% reduction in Total Capital Cushion)
12. Philippine Resources Savings Banking (38.15% reduction in Total Capital Cushion)
13. Robinsons Bank Corporation (35.95% reduction in Total Capital Cushion)
14. China Bank Savings Inc (34.49% reduction in Total Capital Cushion)
15. Dumaguete City Development Bank (32.33% reduction in Total Capital Cushion)
16. MUFG Bank (30.94% reduction in Total Capital Cushion)
17. UCPB Savings Bank (30.61% reduction in Total Capital Cushion)
18. Philippine Savings Bank (30.61% reduction in Total Capital Cushion)
19. Maritime Savings Bank Corporation (28.27% reduction in Total Capital Cushion)
20. Penbank (27.36% reduction in Total Capital Cushion)

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 September 30, 2018".  Moreover, their capital can be overstated.  See a previous blog post "Overstated Capital of Philippine Banks as of September 30, 2018".  As such, any reduction in their capital cushion could knock down an already weak bank.

Source: www.bsp.gov.ph
 

Overseas Filipino Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of September 30, 2018

Editor's Note: Data is culled from  the Published Statements of Condition of individual Philippine Banks found in www.bsp.gov.ph.  
This blog post updates previous blog posts such as Enterprise Bank Ranks 1st in Non-Performing Loans as % of Stockholder's Equity as of June 30, 2018 .


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: "Banks reduce exposure to bad debts, have more cash to loan out—BSP".

In the Philippine Banking Industry, Gross Non-Performing Loans stood at Php 156.90 billion as of September 30, 2018 - approximately 1.65% of the Philippine Banking Industry's Total Loan Portfolio of Php 9.50 trillion.

 

Philippine Banking System
NPL as % of TLP
September 30, 2018
			Gross NPL/ Gross TLP
Bank	Gross NPLs	Gross TLP	(In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,200,789,892.72	5,094,778,470.77	43.20%
LEGAZPI SAVINGS BANK INC	333,789,458.23	1,322,980,737.95	25.23%
NORTHPOINT DEV'T BANK INC	107,859,057.88	488,801,489.68	22.07%
ENTERPRISE BANK INC (A THRIFT BANK)	356,405,207.95	1,725,298,400.72	20.66%
BATAAN DEVELOPMENT BANK	43,838,647.03	216,326,782.28	20.27%
MARITIME SAVINGS BANK CORPORATION	22,871,486.95	117,428,310.74	19.48%
YUANTA SAVINGS BANK PHILIPPINES INC	107,918,892.35	555,257,606.16	19.44%
UNIVERSITY SAVINGS BANK INC	88,980,921.54	505,386,227.10	17.61%
PHILIPPINE RESOURCES SAVINGS BANKING	1,335,254,894.57	8,952,499,513.98	14.91%
PAMPANGA DEVELOPMENT BANK	56,591,647.47	391,249,540.25	14.46%
HIYAS BANKING CORPORATION	37,619,784.78	282,769,577.77	13.30%
PACIFIC ACE SAVINGS BANK INC	5,715,436.00	43,058,422.00	13.27%
UCPB SAVINGS BANK	1,935,843,102.92	15,460,866,820.09	12.52%
FARMERS SAVINGS & LOAN BANK INC	25,140,440.92	227,452,624.49	11.05%
EQUICOM SAVINGS BANK INC	680,239,107.69	6,860,301,827.27	9.92%
BUSINESS AND CONSUMERS BANK (A DB)	15,247,805.02	163,347,615.72	9.33%
1ST VALLEY BANK INC A DEVELOPMENT BANK	655,178,883.27	7,180,153,024.95	9.12%
BPI DIRECT BANKO INC A SAVINGS BANK	940,487,823.05	10,792,456,336.54	8.71%
MALAYAN BANK SAVINGS AND MORT BANK INC	383,863,085.92	4,409,869,955.43	8.70%
LEMERY SAVINGS & LOAN BANK, INC.	7,744,052.82	91,907,596.36	8.43%
BANK OF MAKATI (A SAVINGS BANK) INC	2,236,149,315.57	27,236,677,434.59	8.21%
FIRST CONSOLIDATED BANK INC (A PDB)	972,574,900.13	12,569,284,678.93	7.74%
STANDARD CHARTERED BANK	2,636,355,424.79	37,158,319,433.32	7.09%
CORDILLERA SAVINGS BANK INC	13,267,153.17	194,090,956.17	6.84%
LIFE SAVINGS BANK INC	2,826,635.39	42,992,745.18	6.57%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	112,664,915.67	1,746,676,175.70	6.45%
ALLBANK (A THRIFT BANK) INC	127,269,730.63	2,088,608,767.75	6.09%
WEALTH DEVELOPMENT BANK CORPORATION	430,079,540.50	7,278,797,639.07	5.91%
MERCHANTS SAVINGS & LOAN ASSN INC	68,439,569.26	1,176,991,869.00	5.81%
CHINA BANK SAVINGS INC	3,441,198,508.56	68,760,845,869.87	5.00%
STERLING BANK OF ASIA INC (A SAVINGS	1,540,579,044.23	31,163,423,371.46	4.94%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	190,161,729.25	4.91%
BPI FAMILY SAVINGS BANK INC	10,552,134,142.00	216,758,458,702.17	4.87%
RCBC SAVINGS BANK INC	4,323,774,066.58	89,499,842,288.23	4.83%
EAST WEST BANKING CORP	9,928,665,998.30	205,623,058,452.01	4.83%
PNB SAVINGS BANK	2,432,403,665.94	51,619,166,157.65	4.71%
CITYSTATE SAVINGS BANK INC	95,397,795.70	2,095,935,715.74	4.55%
BANK ONE SAVINGS CORPORATION	55,495,016.00	1,249,509,778.13	4.44%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,750,058.15	64,663,215.27	4.25%
CITY SAVINGS BANK INC	2,349,989,074.91	60,026,765,775.78	3.91%
PHIL SAVINGS BANK	6,079,237,828.83	155,832,186,066.97	3.90%
PHIL BANK OF COMMUNICATIONS	2,227,830,089.40	57,561,799,182.67	3.87%
INTER-ASIA DEVELOPMENT BANK	8,003,219.40	222,492,562.82	3.60%
UNITED COCONUT PLANTERS BANK	5,788,951,065.80	163,424,471,415.49	3.54%
UNION BANK OF THE PHILS	8,362,824,273.02	246,014,440,795.55	3.40%
DUMAGUETE CITY DEV BANK INC	19,352,294.27	597,974,940.38	3.24%
CARD SME BANK INC A THRIFT BANK	113,262,457.07	4,315,115,189.32	2.62%
PRODUCERS SAVINGS BANK CORPORATION	301,475,746.19	12,494,292,385.45	2.41%
BANK OF COMMERCE	1,716,313,857.28	76,885,958,428.44	2.23%
MAYBANK PHILIPPINES INCORPORATED	1,684,022,869.48	75,635,847,670.17	2.23%
PHIL TRUST COMPANY	1,120,924,013.08	53,513,186,557.88	2.09%
ASIA UNITED BANK CORPORATION	3,140,761,256.03	150,428,168,644.13	2.09%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,670,174,788.13	81,326,329,722.38	2.05%
DEVELOPMENT BANK OF THE PHIL	6,602,579,350.58	330,624,448,474.96	2.00%
SUN SAVINGS BANK INC	24,553,384.53	1,232,265,335.70	1.99%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	36,485,231.94	1,856,866,463.02	1.96%
PHIL NATIONAL BANK	9,211,276,436.89	485,953,221,491.27	1.90%
CENTURY SAVINGS BANK CORPORATION	9,576,010.25	707,549,331.72	1.35%
CTBC BANK (PHILIPPINES) CORP	486,534,090.10	38,328,216,948.88	1.27%
ROBINSONS BANK CORPORATION	837,243,488.25	67,205,209,334.85	1.25%
LAND BANK OF THE PHILIPPINES	10,303,174,785.49	838,748,183,535.24	1.23%
RIZAL COMM'L BANKING CORP	3,687,347,269.88	301,628,052,265.20	1.22%
BANK OF THE PHIL ISLANDS	11,453,165,899.59	1,062,564,415,603.71	1.08%
HSBC SAVINGS BANK(PHILS) INC	39,257,127.28	3,939,406,481.24	1.00%
BDO UNIBANK INC	16,819,459,499.14	1,972,213,472,427.11	0.85%
HONGKONG & SHANGHAI BANKING CORP	496,832,854.33	60,268,298,588.35	0.82%
CHINA BANKING CORP	2,977,677,152.77	422,831,715,307.63	0.70%
METROPOLITAN BANK & TCO	7,311,098,641.93	1,065,954,962,441.97	0.69%
SECURITY BANK CORP	2,617,722,711.70	402,730,418,354.29	0.65%
CITIBANK, N.A.	1,041,410,107.97	221,368,210,180.64	0.47%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	7,096,494.50	1,670,569,677.35	0.42%
KEB HANA BANK - MANILA BRANCH	23,050,217.08	10,090,068,113.05	0.23%
MEGA INT'L COMM'L BANK CO LTD	5,025,000.00	12,257,477,761.68	0.04%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	107,342.00	445,696,276.44	0.02%
ING BANK N.V.	110.04	13,511,114,460.23	0.00%
BANK OF AMERICA N.A.	0.00	10,854,306,917.90	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	11,549,036,719.47	0.00%
BDO PRIVATE BANK, INC.	0.00	6,547,318,042.19	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	4,915,994,218.12	0.00%
DEUTSCHE BANK AG	0.00	26,901,519,389.83	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	1,549,876,653.06	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	3,002,598,176.32	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	875,053,275.00	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	31,427,358,241.49	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	53,059,695,963.31	0.00%
MUFG BANK, LTD.	0.00	39,021,289,105.37	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	32,785,081.01	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	2,358,852,912.40	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	32,167,293,126.05	0.00%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	0.00	NA
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	0.00	NA
Grand Total	156,896,541,337.89	9,500,071,541,873.22	1.65%

There are two Philippine Banks with a Gross NPL Ratio greater than 25.00% of Total Loan Portfolio (TLP).  These are as follows:

1. Overseas Filipino Bank (43.20% of TLP)
2. Legazpi Savings Bank (25.23% of TLP)

 

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 will most likely result in a loan recovery that is a mere fraction of the loan's 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 off as a loss.

 

On an overall basis, the Gross NPLs of Philippine Banks amounted to 8.20% of Stockholders Equity as of September 30, 2018.

 

 

 

Philippine Banking System
NPL as % of SE
September 30, 2018
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
OVERSEAS FILIPINO BANK INC A SAVINGS BANK OF LANDBANK	2,200,789,892.72	851,391,260.99	258.49%
ENTERPRISE BANK INC (A THRIFT BANK)	356,405,207.95	262,432,745.24	135.81%
EQUICOM SAVINGS BANK INC	680,239,107.69	720,551,822.22	94.41%
UCPB SAVINGS BANK	1,935,843,102.92	2,676,275,605.64	72.33%
LEGAZPI SAVINGS BANK INC	333,789,458.23	552,479,895.89	60.42%
STERLING BANK OF ASIA INC (A SAVINGS	1,540,579,044.23	2,666,557,786.63	57.77%
PHILIPPINE RESOURCES SAVINGS BANKING	1,335,254,894.57	2,610,782,762.71	51.14%
BATAAN DEVELOPMENT BANK	43,838,647.03	90,981,864.09	48.18%
MARITIME SAVINGS BANK CORPORATION	22,871,486.95	48,057,298.31	47.59%
STANDARD CHARTERED BANK	2,636,355,424.79	6,433,779,518.07	40.98%
BPI DIRECT BANKO INC A SAVINGS BANK	940,487,823.05	2,380,498,023.59	39.51%
UNITED COCONUT PLANTERS BANK	5,788,951,065.80	15,545,284,976.24	37.24%
CHINA BANK SAVINGS INC	3,441,198,508.56	9,665,552,831.21	35.60%
1ST VALLEY BANK INC A DEVELOPMENT BANK	655,178,883.27	1,878,319,702.26	34.88%
BPI FAMILY SAVINGS BANK INC	10,552,134,142.00	31,043,734,154.36	33.99%
RCBC SAVINGS BANK INC	4,323,774,066.58	13,143,447,804.18	32.90%
MALAYAN BANK SAVINGS AND MORT BANK INC	383,863,085.92	1,220,714,583.08	31.45%
NORTHPOINT DEV'T BANK INC	107,859,057.88	359,843,555.03	29.97%
WEALTH DEVELOPMENT BANK CORPORATION	430,079,540.50	1,458,867,818.36	29.48%
PHIL SAVINGS BANK	6,079,237,828.83	21,682,564,108.71	28.04%
PAMPANGA DEVELOPMENT BANK	56,591,647.47	211,695,855.07	26.73%
BANK OF MAKATI (A SAVINGS BANK) INC	2,236,149,315.57	8,949,660,005.21	24.99%
EAST WEST BANKING CORP	9,928,665,998.30	41,562,795,425.71	23.89%
PENBANK INC (A PDB) (FORMERLY: PENINSULA	112,664,915.67	496,026,518.77	22.71%
UNIVERSITY SAVINGS BANK INC	88,980,921.54	415,427,596.89	21.42%
HIYAS BANKING CORPORATION	37,619,784.78	181,211,637.94	20.76%
FIRST CONSOLIDATED BANK INC (A PDB)	972,574,900.13	4,756,374,516.92	20.45%
PNB SAVINGS BANK	2,432,403,665.94	11,968,053,834.19	20.32%
FARMERS SAVINGS & LOAN BANK INC	25,140,440.92	135,104,052.70	18.61%
PHIL BANK OF COMMUNICATIONS	2,227,830,089.40	12,258,856,525.99	18.17%
BUSINESS AND CONSUMERS BANK (A DB)	15,247,805.02	89,251,525.56	17.08%
PRODUCERS SAVINGS BANK CORPORATION	301,475,746.19	1,870,038,125.55	16.12%
CITY SAVINGS BANK INC	2,349,989,074.91	14,602,983,429.47	16.09%
PHILIPPINE BUSINESS BANK INC A SAVINGS	1,670,174,788.13	10,692,002,382.23	15.62%
METRO CEBU PUBLIC SAVINGS BANK	9,340,189.11	67,130,689.45	13.91%
CITYSTATE SAVINGS BANK INC	95,397,795.70	695,147,738.58	13.72%
MAYBANK PHILIPPINES INCORPORATED	1,684,022,869.48	12,320,804,298.35	13.67%
DEVELOPMENT BANK OF THE PHIL	6,602,579,350.58	49,692,662,235.85	13.29%
ALLBANK (A THRIFT BANK) INC	127,269,730.63	1,025,352,805.75	12.41%
YUANTA SAVINGS BANK PHILIPPINES INC	107,918,892.35	894,713,556.64	12.06%
MERCHANTS SAVINGS & LOAN ASSN INC	68,439,569.26	577,100,684.96	11.86%
ASIA UNITED BANK CORPORATION	3,140,761,256.03	27,509,878,284.85	11.42%
BANK OF COMMERCE	1,716,313,857.28	15,885,446,788.33	10.80%
CORDILLERA SAVINGS BANK INC	13,267,153.17	126,347,325.60	10.50%
SUN SAVINGS BANK INC	24,553,384.53	234,677,569.27	10.46%
CARD SME BANK INC A THRIFT BANK	113,262,457.07	1,119,003,013.69	10.12%
UNION BANK OF THE PHILS	8,362,824,273.02	83,357,116,245.76	10.03%
INTER-ASIA DEVELOPMENT BANK	8,003,219.40	81,497,365.68	9.82%
BANK ONE SAVINGS CORPORATION	55,495,016.00	614,583,060.89	9.03%
LEMERY SAVINGS & LOAN BANK, INC.	7,744,052.82	88,037,046.62	8.80%
LAND BANK OF THE PHILIPPINES	10,303,174,785.49	124,878,408,978.83	8.25%
PHIL NATIONAL BANK	9,211,276,436.89	115,706,534,484.20	7.96%
BANGKO KABAYAN INC (A PRIVATE DEVELOPMENT	36,485,231.94	499,941,142.92	7.30%
DUMAGUETE CITY DEV BANK INC	19,352,294.27	268,904,371.88	7.20%
PACIFIC ACE SAVINGS BANK INC	5,715,436.00	81,290,976.62	7.03%
CTBC BANK (PHILIPPINES) CORP	486,534,090.10	7,107,330,394.70	6.85%
ROBINSONS BANK CORPORATION	837,243,488.25	12,391,055,517.66	6.76%
PHIL TRUST COMPANY	1,120,924,013.08	20,547,874,035.43	5.46%
BDO UNIBANK INC	16,819,459,499.14	311,051,055,324.27	5.41%
CITIBANK, N.A.	1,041,410,107.97	19,470,788,969.10	5.35%
BANK OF THE PHIL ISLANDS	11,453,165,899.59	244,943,113,583.49	4.68%
QUEZON COCONUT BANK INC (A THRIFT BANK)	2,750,058.15	59,188,811.45	4.65%
RIZAL COMM'L BANKING CORP	3,687,347,269.88	83,563,839,192.21	4.41%
LIFE SAVINGS BANK INC	2,826,635.39	71,561,539.54	3.95%
CHINA BANKING CORP	2,977,677,152.77	79,905,698,095.95	3.73%
HONGKONG & SHANGHAI BANKING CORP	496,832,854.33	13,730,780,221.06	3.62%
METROPOLITAN BANK & TCO	7,311,098,641.93	275,498,373,694.06	2.65%
HSBC SAVINGS BANK(PHILS) INC	39,257,127.28	1,501,959,982.97	2.61%
SECURITY BANK CORP	2,617,722,711.70	110,023,121,105.34	2.38%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK	7,096,494.50	676,768,697.94	1.05%
CENTURY SAVINGS BANK CORPORATION	9,576,010.25	974,853,448.93	0.98%
KEB HANA BANK - MANILA BRANCH	23,050,217.08	3,181,245,849.38	0.72%
MEGA INT'L COMM'L BANK CO LTD	5,025,000.00	1,874,119,562.22	0.27%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS	107,342.00	191,420,267.24	0.06%
ING BANK N.V.	110.04	2,359,925,861.80	0.00%
BANK OF AMERICA N.A.	0.00	2,236,402,418.64	0.00%
BANK OF CHINA LIMITED-MANILA BRANCH	0.00	10,326,804,753.84	0.00%
BDO PRIVATE BANK, INC.	0.00	5,089,452,595.77	0.00%
CATHAY UNITED BANK CO LTD - MANILA BRANCH	0.00	5,219,738,763.97	0.00%
CHANG HWA COMMERCIAL BANK LTD - MANILA BRANCH	0.00	2,151,550,906.66	0.00%
DEUTSCHE BANK AG	0.00	2,306,640,247.77	0.00%
FIRST COMMERCIAL BANK LTD MANILA BRANCH	0.00	1,994,776,582.76	0.00%
HUA NAN COMMERCIAL BANK LTD MANILA BRANCH	0.00	2,088,229,638.08	0.00%
INDUSTRIAL BANK OF KOREA MANILA BRANCH	0.00	2,287,606,650.30	0.00%
ISLA BANK(A THRIFT BANK) INC	0.00	688,999,925.11	0.00%
JP MORGAN CHASE BANK NATIONAL ASSN.	0.00	2,280,190,545.36	0.00%
MIZUHO BANK LTD - MANILA BRANCH	0.00	5,516,835,936.44	0.00%
MUFG BANK, LTD.	0.00	4,868,976,775.54	0.00%
PHIL STAR DEVELOPMENT BANK INC	0.00	100,903,539.70	0.00%
SHINHAN BANK - MANILA BRANCH	0.00	4,233,575,219.10	0.00%
SUMITOMO MITSUI BANKING CORPORATION-MANILA BRANCH	0.00	13,057,132,001.43	0.00%
Grand Total	156,896,541,337.89	1,912,778,068,868.94	8.20%

 

 

Of the 91 banks in this list, seventeen banks have a Gross NPL to Stockholders Equity Ratio of 30% or more as of September 30, 2018.  These banks are as follows:

1. Overseas Filipino Bank (258.49% of SE)
2. Enterprise Bank Inc (135.81% of SE)
3. Equicom Savings Bank Inc (94.41% of SE)
4. UCPB Savings Bank (72.33% of SE)
5. Legazpi Savings Bank (60.42% of SE)
6. Sterling Bank of Asia Inc (57.77% of SE)
7. Philippine Resources Savings Banking Corporation (51.14% of SE)
8. Bataan Development Bank (48.18% of SE)
9. Maritime Savings Bank Corporation (47.59% of SE)
10. Standard Chartered Bank (40.98% of SE)
11. BPI Direct Banko Inc (39.51% of SE)
12. United Coconut Planters Bank (37.24% of SE)
13. China Bank Savings Inc (35.60% of SE)
14. 1st Valley Bank Inc (34.88% of SE)
15. BPI Family Savings Bank Inc (33.99% of SE)
16. RCBC Savings Bank Inc (32.90% of SE)
17. Malayan Bank Savings and Mortgage Bank Inc (31.45% of SE)

Source: www.bsp.gov.ph