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
	DOSRI	TLP-Net	DOSRI/TLP-Net
Bank	(In Php)	(In PHP)	(In %)
Development Bank of the Philippines	37,917,488,222.01	132,330,130,718.88	28.65%
Land Bank of the Philippines	68,646,469,730.17	249,893,860,362.24	27.47%
China Banking Corporation	18,459,703,104.87	160,336,920,730.80	11.51%
Banco De Oro Unibank Inc.	59,353,773,766.32	687,449,848,983.94	8.63%
Robinsons Bank Corporation	1,092,204,794.18	15,901,720,790.62	6.87%
Rizal Commercial Banking Corporation	4,774,849,864.29	147,566,030,748.89	3.24%
Bank of Commerce	1,107,424,200.51	40,286,168,910.84	2.75%
Philippine National Bank	3,289,296,631.39	130,344,611,716.69	2.52%
Metropolitan Bank & Trust Company	8,141,482,227.33	356,405,295,315.46	2.28%
Allied Banking Corporation	2,185,463,587.93	97,005,209,447.24	2.25%
East West Banking Corporation	1,110,900,418.57	52,595,614,642.10	2.11%
Maybank Philippines Inc.	579,226,472.33	27,960,133,075.29	2.07%
Bank of the Philippine Islands	5,111,996,958.34	381,129,488,188.36	1.34%
Union Bank of the Philippines	959,960,804.94	86,315,941,248.74	1.11%
Asia United Bank	280,570,289.00	30,447,777,903.99	0.92%
HongKong & Shanghai Banking Corporation	574,583,499.01	71,135,474,496.39	0.81%
Bank of America N.A.	27,542,992.47	4,366,919,280.84	0.63%
Citibank N.A.	588,421,598.88	127,326,018,344.68	0.46%
United Coconut Planters Bank	273,499,739.70	64,560,997,791.91	0.42%
JP Morgan Chase Bank National Association	54,865,997.90	21,401,181,445.24	0.26%
Philippine Bank of Communications	19,185,960.76	9,373,967,066.04	0.20%
Philippine Veterans Bank	47,571,251.34	24,461,896,932.69	0.19%
Chinatrust (Philippines) Commercial Banking Corporation	20,156,646.06	12,626,685,303.37	0.16%
ANZ Banking Group Ltd	39,648,428.70	25,012,985,590.31	0.16%
Security Bank Corporation	186,843,553.26	121,418,657,430.70	0.15%
Standard Chartered Bank	18,590,466.95	37,400,519,794.20	0.05%
The Bank of Tokyo - Mitsubishi UFJ Ltd	8,860,884.92	23,472,630,029.70	0.04%
Korea Exchange Bank	673,920.00	5,265,334,464.09	0.01%
Al Amanah Islamic Bank of the Philippines	0.00	286,658,067.44	0.00%
Bangkok Bank Public Co. Ltd.	0.00	3,308,082,971.50	0.00%
Bank of China Limited - Manila Branch	0.00	5,022,505,240.78	0.00%
BDO Private Bank, Inc.	0.00	6,045,408,925.81	0.00%
Deutsche Bank AG	0.00	24,392,915,946.48	0.00%
Internationale Nederlanden Groep Bank	0.00	9,623,642,231.23	0.00%
Mega International Commercial Bank Co. Ltd	0.00	7,024,204,490.46	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	25,422,078,830.34	0.00%
Philippine Trust Company	0.00	35,904,262,386.84	0.00%
Grand Total	214,871,256,012.13	3,260,821,779,845.12	6.59%

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
	DOSRI	SE	DOSRI/SE
Bank	(In Php)	(In PHP)	(In %)
Development Bank of the Philippines	37,917,488,222.01	39,139,801,398.21	96.88%
Land Bank of the Philippines	68,646,469,730.17	72,035,398,618.59	95.30%
Banco De Oro Unibank Inc.	59,353,773,766.32	101,929,325,323.67	58.23%
China Banking Corporation	18,459,703,104.87	36,037,127,084.48	51.22%
Robinsons Bank Corporation	1,092,204,794.18	5,400,718,494.91	20.22%
Allied Banking Corporation	2,185,463,587.93	18,326,663,200.68	11.93%
Rizal Commercial Banking Corporation	4,774,849,864.29	40,339,304,322.02	11.84%
HongKong & Shanghai Banking Corporation	574,583,499.01	5,388,712,213.20	10.66%
Maybank Philippines Inc.	579,226,472.33	5,535,707,537.03	10.46%
Philippine National Bank	3,289,296,631.39	37,122,489,253.60	8.86%
Metropolitan Bank & Trust Company	8,141,482,227.33	106,194,109,504.71	7.67%
Citibank N.A.	588,421,598.88	7,841,168,502.18	7.50%
East West Banking Corporation	1,110,900,418.57	16,170,114,535.46	6.87%
Bank of Commerce	1,107,424,200.51	17,557,056,210.05	6.31%
Bank of the Philippine Islands	5,111,996,958.34	87,074,496,134.62	5.87%
Bank of America N.A.	27,542,992.47	596,946,705.20	4.61%
JP Morgan Chase Bank National Association	54,865,997.90	1,727,884,545.30	3.18%
Asia United Bank	280,570,289.00	10,173,091,443.18	2.76%
Union Bank of the Philippines	959,960,804.94	39,593,140,857.56	2.42%
ANZ Banking Group Ltd	39,648,428.70	2,023,998,541.56	1.96%
United Coconut Planters Bank	273,499,739.70	18,524,593,394.88	1.48%
The Bank of Tokyo - Mitsubishi UFJ Ltd	8,860,884.92	746,456,907.95	1.19%
Standard Chartered Bank	18,590,466.95	1,662,661,839.14	1.12%
Philippine Veterans Bank	47,571,251.34	5,182,204,888.33	0.92%
Security Bank Corporation	186,843,553.26	34,857,762,333.00	0.54%
Chinatrust (Philippines) Commercial Banking Corporation	20,156,646.06	6,118,237,659.45	0.33%
Philippine Bank of Communications	19,185,960.76	8,262,907,312.02	0.23%
Korea Exchange Bank	673,920.00	561,460,316.56	0.12%
Al Amanah Islamic Bank of the Philippines	0.00	473,003,657.24	0.00%
Bangkok Bank Public Co. Ltd.	0.00	1,150,161,682.46	0.00%
Bank of China Limited - Manila Branch	0.00	610,490,846.11	0.00%
BDO Private Bank, Inc.	0.00	5,204,459,324.38	0.00%
Deutsche Bank AG	0.00	1,617,692,819.39	0.00%
Internationale Nederlanden Groep Bank	0.00	2,771,241,312.15	0.00%
Mega International Commercial Bank Co. Ltd	0.00	691,445,235.15	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	1,275,769,667.83	0.00%
Philippine Trust Company	0.00	15,758,749,258.44	0.00%
Grand Total	214,871,256,012.13	755,676,552,880.69	28.43%

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 Due	DOSRI	DOSRI Past Due/DOSRI
Bank	(In PHP)	(In PHP)	(In %)
Rizal Commercial Banking Corporation	525,431,611.24	4,774,849,864.29	11.00%
Bank of America N.A.	1,754,488.62	27,542,992.47	6.37%
Asia United Bank	5,945,458.44	280,570,289.00	2.12%
United Coconut Planters Bank	2,994,626.21	273,499,739.70	1.09%
Chinatrust (Philippines) Commercial Banking Corporation	73,276.19	20,156,646.06	0.36%
Philippine Bank of Communications	34,589.32	19,185,960.76	0.18%
Standard Chartered Bank	24,181.73	18,590,466.95	0.13%
Bank of the Philippine Islands	2,770,338.25	5,111,996,958.34	0.05%
Citibank N.A.	205,789.59	588,421,598.88	0.03%
China Banking Corporation	40,842.00	18,459,703,104.87	0.00%
Allied Banking Corporation	0.00	2,185,463,587.93	0.00%
ANZ Banking Group Ltd	0.00	39,648,428.70	0.00%
Banco De Oro Unibank Inc.	0.00	59,353,773,766.32	0.00%
Bank of Commerce	0.00	1,107,424,200.51	0.00%
Development Bank of the Philippines	0.00	37,917,488,222.01	0.00%
East West Banking Corporation	0.00	1,110,900,418.57	0.00%
HongKong & Shanghai Banking Corporation	0.00	574,583,499.01	0.00%
JP Morgan Chase Bank National Association	0.00	54,865,997.90	0.00%
Korea Exchange Bank	0.00	673,920.00	0.00%
Land Bank of the Philippines	0.00	68,646,469,730.17	0.00%
Maybank Philippines Inc.	0.00	579,226,472.33	0.00%
Metropolitan Bank & Trust Company	0.00	8,141,482,227.33	0.00%
Philippine National Bank	0.00	3,289,296,631.39	0.00%
Philippine Veterans Bank	0.00	47,571,251.34	0.00%
Robinsons Bank Corporation	0.00	1,092,204,794.18	0.00%
Security Bank Corporation	0.00	186,843,553.26	0.00%
The Bank of Tokyo - Mitsubishi UFJ Ltd	0.00	8,860,884.92	0.00%
Union Bank of the Philippines	0.00	959,960,804.94	0.00%
Al Amanah Islamic Bank of the Philippines	0.00	0.00	NA
Bangkok Bank Public Co. Ltd.	0.00	0.00	NA
Bank of China Limited - Manila Branch	0.00	0.00	NA
BDO Private Bank, Inc.	0.00	0.00	NA
Deutsche Bank AG	0.00	0.00	NA
Internationale Nederlanden Groep Bank	0.00	0.00	NA
Mega International Commercial Bank Co. Ltd	0.00	0.00	NA
Mizuho Corporate Bank Ltd - Manila Branch	0.00	0.00	NA
Philippine Trust Company	0.00	0.00	NA
Grand Total	539,275,201.59	214,871,256,012.13	0.25%

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
	NPL	TLP-Net	NPL/TLP
Bank	(In Php)	(In Php)	(In %)
Bank of Commerce	4,127,215,374.37	40,286,168,910.84	10.24%
United Coconut Planters Bank	4,550,757,595.97	64,560,997,791.91	7.05%
Philippine National Bank	6,580,772,204.25	130,344,611,716.69	5.05%
East West Banking Corporation	2,434,617,349.22	52,595,614,642.10	4.63%
Philippine Veterans Bank	1,118,165,728.45	24,461,896,932.69	4.57%
Union Bank of the Philippines	3,321,506,763.28	86,315,941,248.74	3.85%
Allied Banking Corporation	3,620,865,825.68	97,005,209,447.24	3.73%
Development Bank of the Philippines	4,891,977,135.48	132,330,130,718.88	3.70%
Philippine Trust Company	1,187,297,173.28	35,904,262,386.84	3.31%
Land Bank of the Philippines	8,082,570,361.75	249,893,860,362.24	3.23%
Standard Chartered Bank	1,148,204,008.28	37,400,519,794.20	3.07%
Maybank Philippines Inc.	841,828,527.97	27,960,133,075.29	3.01%
Chinatrust (Philippines) Commercial Banking Corporation	373,752,807.11	12,626,685,303.37	2.96%
Robinsons Bank Corporation	463,679,512.21	15,901,720,790.62	2.92%
China Banking Corporation	4,182,883,177.08	160,336,920,730.80	2.61%
Asia United Bank	737,542,513.43	30,447,777,903.99	2.42%
Banco De Oro Unibank Inc.	11,005,621,686.35	687,449,848,983.94	1.60%
Metropolitan Bank & Trust Company	4,899,855,939.33	356,405,295,315.46	1.37%
Bank of the Philippine Islands	4,527,776,844.83	381,129,488,188.36	1.19%
Philippine Bank of Communications	110,498,322.40	9,373,967,066.04	1.18%
HongKong & Shanghai Banking Corporation	815,276,281.02	71,135,474,496.39	1.15%
Rizal Commercial Banking Corporation	1,267,514,279.70	147,566,030,748.89	0.86%
Security Bank Corporation	854,299,182.91	121,418,657,430.70	0.70%
Citibank N.A.	882,189,033.18	127,326,018,344.68	0.69%
Korea Exchange Bank	36,302,160.89	5,265,334,464.09	0.69%
Al Amanah Islamic Bank of the Philippines	1,232,146.27	286,658,067.44	0.43%
Bangkok Bank Public Co. Ltd.	5,804,155.55	3,308,082,971.50	0.18%
Bank of China Limited - Manila Branch	8,660,895.91	5,022,505,240.78	0.17%
ANZ Banking Group Ltd	23,339,114.85	25,012,985,590.31	0.09%
The Bank of Tokyo - Mitsubishi UFJ Ltd	125,938.80	23,472,630,029.70	0.00%
Internationale Nederlanden Groep Bank	86.24	9,623,642,231.23	0.00%
Bank of America N.A.	0.00	4,366,919,280.84	0.00%
BDO Private Bank, Inc.	0.00	6,045,408,925.81	0.00%
Deutsche Bank AG	0.00	24,392,915,946.48	0.00%
JP Morgan Chase Bank National Association	0.00	21,401,181,445.24	0.00%
Mega International Commercial Bank Co. Ltd	0.00	7,024,204,490.46	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	25,422,078,830.34	0.00%
Grand Total	72,102,132,126.04	3,260,821,779,845.12	2.21%

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

See a previous blog post: "Philippine U/KBs Show Some Deterioration in the 2nd Qtr. of 2012". 

Philippine Universal and Commercial Banking System
NPL as % of SE
June 30, 2012
	NPL	SE	NPL/SE
Bank	(In PHP)	(In PHP)	(In %)
Standard Chartered Bank	1,148,204,008.28	1,662,661,839.14	69.06%
United Coconut Planters Bank	4,550,757,595.97	18,524,593,394.88	24.57%
Bank of Commerce	4,127,215,374.37	17,557,056,210.05	23.51%
Philippine Veterans Bank	1,118,165,728.45	5,182,204,888.33	21.58%
Allied Banking Corporation	3,620,865,825.68	18,326,663,200.68	19.76%
Philippine National Bank	6,580,772,204.25	37,122,489,253.60	17.73%
Maybank Philippines Inc.	841,828,527.97	5,535,707,537.03	15.21%
HongKong & Shanghai Banking Corporation	815,276,281.02	5,388,712,213.20	15.13%
East West Banking Corporation	2,434,617,349.22	16,170,114,535.46	15.06%
Development Bank of the Philippines	4,891,977,135.48	39,139,801,398.21	12.50%
China Banking Corporation	4,182,883,177.08	36,037,127,084.48	11.61%
Citibank N.A.	882,189,033.18	7,841,168,502.18	11.25%
Land Bank of the Philippines	8,082,570,361.75	72,035,398,618.59	11.22%
Banco De Oro Unibank Inc.	11,005,621,686.35	101,929,325,323.67	10.80%
Robinsons Bank Corporation	463,679,512.21	5,400,718,494.91	8.59%
Union Bank of the Philippines	3,321,506,763.28	39,593,140,857.56	8.39%
Philippine Trust Company	1,187,297,173.28	15,758,749,258.44	7.53%
Asia United Bank	737,542,513.43	10,173,091,443.18	7.25%
Korea Exchange Bank	36,302,160.89	561,460,316.56	6.47%
Chinatrust (Philippines) Commercial Banking Corporation	373,752,807.11	6,118,237,659.45	6.11%
Bank of the Philippine Islands	4,527,776,844.83	87,074,496,134.62	5.20%
Metropolitan Bank & Trust Company	4,899,855,939.33	106,194,109,504.71	4.61%
Rizal Commercial Banking Corporation	1,267,514,279.70	40,339,304,322.02	3.14%
Security Bank Corporation	854,299,182.91	34,857,762,333.00	2.45%
Bank of China Limited - Manila Branch	8,660,895.91	610,490,846.11	1.42%
Philippine Bank of Communications	110,498,322.40	8,262,907,312.02	1.34%
ANZ Banking Group Ltd	23,339,114.85	2,023,998,541.56	1.15%
Bangkok Bank Public Co. Ltd.	5,804,155.55	1,150,161,682.46	0.50%
Al Amanah Islamic Bank of the Philippines	1,232,146.27	473,003,657.24	0.26%
The Bank of Tokyo - Mitsubishi UFJ Ltd	125,938.80	746,456,907.95	0.02%
Internationale Nederlanden Groep Bank	86.24	2,771,241,312.15	0.00%
Bank of America N.A.	0.00	596,946,705.20	0.00%
BDO Private Bank, Inc.	0.00	5,204,459,324.38	0.00%
Deutsche Bank AG	0.00	1,617,692,819.39	0.00%
JP Morgan Chase Bank National Association	0.00	1,727,884,545.30	0.00%
Mega International Commercial Bank Co. Ltd	0.00	691,445,235.15	0.00%
Mizuho Corporate Bank Ltd - Manila Branch	0.00	1,275,769,667.83	0.00%
Grand Total	72,102,132,126.04	755,676,552,880.69	9.54%

Source: www.bsp.gov.ph

Can Philippine Thrift Banks Charge their Unbooked Losses Against Retained Earnings? - June 30, 2012

Last July 25, 2012, the Bangko Sentral ng Pilipinas (BSP) encouraged banks, particularly Universal and Commercial Banks that continue to reflect unbooked losses or "deferred charges" on their balance sheets, to charge those losses against retained earnings.  This implies that the BSP now considers that these banks have amassed so much in retained earnings that "they can now afford to absorb higher charges without impairing their capital and also without making their shareholders unhappy."

But can these banks do so? The answer is yes. As can be seen from the table below, all seven banks with Deferred Charges have the Stockholders Equity (SE) to absorb these Deferred Charges:

1. Bataan Development Bank (Deferred Charges of 18.18% of SE)
2. Planters Development Bank (Deferred Charges of 16.27% of SE)
3. Citibank Savings, Inc. (Deferred Charges of 10.46% of SE)
4. Card SME Bank (Deferred Charges of 3.23% of SE)
5. Wealth Bank (Deferred Charges of 1.99% of SE)
6. Security Bank Savings Corporation (Deferred Charges of 0.20% of SE)
7. Farmers Savings & Loan Bank (Deferred Charges of 0.00% of SE)

It must be noted that three of these banks are considered borderline insolvent (highlighted in yellow):

1. Bataan Development Bank
2. Planters Development Bank
3. Farmers Savings & Loan Bank

For more information on distressed banks, please see the previous blog post: "Philippine Thrift Banks Continue to Improve in the 2nd Quarter of 2012".

Retained Earnings

Only two banks have sufficient Retained Earnings (RE) to absorb their unbooked losses:

1. Wealth Bank (Deferred Charges of 11.88% of RE)
2. Security Bank Savings Corporation (Deferred Charges of 0.20% of RE)

For one bank, Deferred Charges will impact 25% or more of its Retained Earnings:

1. Planters Development Bank (Deferred Charges of 28.40% of RE)

For one bank, Deferred Charges will exceed their Retained Earnings:

1. Bataan Development Bank (Deferred Charges of 196.61% of RE)

Two of the banks with substantial Deferred Charges have negative Retained Earnings.  As such, they do not have the capacity to absorb additional losses.

1. Citibank Savings Inc. (Retained Earnings of - PhP 2.373 billion vs. Deferred Charges of PhP 190.165 million)
2. Card SME Bank Inc. (Retained Earnings of - PhP 41.963 million vs. Deferred Charges of PhP 5.777 million)

For more information of these Deferred Charges, please consult three previous blog posts:"Can Philippine Thrift Banks Charge their Unbooked Losses Against Retained Earnings?", "Philippine Thrift Banks with Overstated Capital as of Year End 2011" and "BSP's Ampaw Accounting System".

Philippine Thrift Banking System
Deferred Charges Not Yet Written Down
Impact on Stockholders Equity
In Php
June 30, 2012
Bank	Unbooked Losses	SE	Adjusted SE	Impact on SE
Bataan Development Bank	12,793,520.73	70,387,217.02	57,593,696.29	18.18%
Planters Development Bank	639,513,631.59	3,931,756,700.13	3,292,243,068.54	16.27%
Citibank Savings Inc.	190,165,383.13	1,818,756,670.18	1,628,591,287.05	10.46%
Card SME Bank Inc. (A Thrift Bank)	5,777,110.37	179,116,409.99	173,339,299.62	3.23%
Wealth Bank - A Development Bank	7,030,637.31	353,186,841.84	346,156,204.53	1.99%
Security Bank Savings Corporation	1,619,206.37	795,088,386.40	793,469,180.03	0.20%
Farmers Savings & Loan Bank	1,663.18	100,549,296.43	100,547,633.25	0.00%
Allied Savings Bank	0.00	976,492,885.94	976,492,885.94	0.00%
Bank One Savings and Trust Corp.	0.00	520,315,658.47	520,315,658.47	0.00%
Bataan SLA	0.00	77,808,302.16	77,808,302.16	0.00%
BDO Elite Savings Bank	0.00	1,527,059,062.56	1,527,059,062.56	0.00%
BPI Direct Savings Bank	0.00	801,926,465.90	801,926,465.90	0.00%
BPI Family Savings Bank	0.00	14,481,315,010.85	14,481,315,010.85	0.00%
BPI Globe Banko Inc. Savings Bank	0.00	360,144,746.12	360,144,746.12	0.00%
Business & Consumers Bank	0.00	78,446,370.26	78,446,370.26	0.00%
Century Savings Bank	0.00	883,428,855.96	883,428,855.96	0.00%
China Bank Savings	0.00	1,134,231,220.75	1,134,231,220.75	0.00%
City Savings Bank	0.00	1,977,741,378.55	1,977,741,378.55	0.00%
CityState Savings Bank	0.00	773,945,359.88	773,945,359.88	0.00%
Comsavings Bank	0.00	350,468,111.01	350,468,111.01	0.00%
Cordillera Savings Bank	0.00	97,381,465.00	97,381,465.00	0.00%
Dumaguete City Development Bank	0.00	203,578,072.13	203,578,072.13	0.00%
Dungganon Bank	0.00	62,917,082.13	62,917,082.13	0.00%
Equicom SB	0.00	461,617,258.29	461,617,258.29	0.00%
First Consolidated Bank	0.00	1,671,795,340.03	1,671,795,340.03	0.00%
Hiyas Savings & Loan Bank	0.00	157,846,553.87	157,846,553.87	0.00%
HSBC Savings Bank (Phils) Inc.	0.00	2,938,428,344.64	2,938,428,344.64	0.00%
Iloilo City Development Bank	0.00	62,433,690.20	62,433,690.20	0.00%
Isla Bank (A Thrift Bank) Inc.	0.00	630,420,695.84	630,420,695.84	0.00%
Legazpi Savings Bank Inc.	0.00	178,699,023.83	178,699,023.83	0.00%
Lemery Savings & Loan Bank, Inc.	0.00	69,169,391.20	69,169,391.20	0.00%
Life Savings Bank	0.00	63,317,167.29	63,317,167.29	0.00%
Luzon Development Bank	0.00	382,298,596.47	382,298,596.47	0.00%
Malasiqui Progressive SLB, Inc.	0.00	49,198,079.06	49,198,079.06	0.00%
Malayan Bank Savings & Mortgage Bank	0.00	975,332,768.21	975,332,768.21	0.00%
Maritime SLA	0.00	65,402,781.73	65,402,781.73	0.00%
Merchants Savings & Loan Association Inc.	0.00	658,930,240.51	658,930,240.51	0.00%
Metro Cebu Public Savings Bank	0.00	60,255,751.33	60,255,751.33	0.00%
Microfinance Maximum SB (Maxbank)	0.00	62,353,596.96	62,353,596.96	0.00%
Northpoint Development Bank	0.00	50,002,124.18	50,002,124.18	0.00%
Opportunity Kauswagan Bank	0.00	87,108,376.48	87,108,376.48	0.00%
Optimum Development Bank	0.00	660,520,247.44	660,520,247.44	0.00%
Pacific Ace Savings Bank	0.00	72,319,136.67	72,319,136.67	0.00%
Pampanga Development Bank	0.00	105,904,741.40	105,904,741.40	0.00%
Penbank, Inc.	0.00	260,723,835.90	260,723,835.90	0.00%
Philippine Business Bank	0.00	3,922,725,430.38	3,922,725,430.38	0.00%
Philippine Postal Savings Bank	0.00	688,770,339.88	688,770,339.88	0.00%
Philippine Resources Savings Banking Corporation	0.00	1,195,719,804.03	1,195,719,804.03	0.00%
Philippine Savings Bank	0.00	13,303,936,411.40	13,303,936,411.40	0.00%
Pridestar Development Bank	0.00	67,743,003.08	67,743,003.08	0.00%
Producers Savings Bank	0.00	701,811,191.57	701,811,191.57	0.00%
Progress SLA	0.00	84,103,829.68	84,103,829.68	0.00%
Quezon Coconut Producers SLB Inc.	0.00	57,580,765.13	57,580,765.13	0.00%
RCBC Savings Bank	0.00	6,792,900,833.67	6,792,900,833.67	0.00%
Sampaguita SLA	0.00	64,708,123.36	64,708,123.36	0.00%
Silangan Savings and Loan Bank, Inc.	0.00	9,740,651.89	9,740,651.89	0.00%
Sterling Bank of Asia Inc.	0.00	1,633,872,061.27	1,633,872,061.27	0.00%
Sun Savings Bank	0.00	72,644,822.80	72,644,822.80	0.00%
The Queen City Development Bank	0.00	669,119,640.27	669,119,640.27	0.00%
Tong Yang Savings Bank Inc.	0.00	407,756,152.68	407,756,152.68	0.00%
Tower Development Bank	0.00	113,529,745.58	113,529,745.58	0.00%
UCPB Savings Bank	0.00	2,125,681,500.16	2,125,681,500.16	0.00%
United Overseas Bank Philippines	0.00	704,856,569.14	704,856,569.14	0.00%
University Savings Bank	0.00	205,163,329.73	205,163,329.73	0.00%
Village SLA, Inc.	0.00	70,653,647.74	70,653,647.74	0.00%
World Partners Bank (A Thrift Bank)	0.00	157,957,368.73	157,957,368.73	0.00%
Real Bank (A Thrift Bank) Inc.	NA	NA	NA	NA
Grand Total	856,901,152.68	74,331,094,533.36	73,474,193,380.68	1.15%

Source: www.bsp.gov.ph

Deferred Charges Not Yet Written Down
Impact on Retained Earnings
In PHP
June 30, 2012
Bank	Unbooked Losses	RE	Adjusted RE	Impact on RE
Bataan Development Bank	12,793,520.73	6,506,937.24	-6,286,583.49	196.61%
Planters Development Bank	639,513,631.59	2,251,768,609.03	1,612,254,977.44	28.40%
Wealth Bank - A Development Bank	7,030,637.31	59,174,895.50	52,144,258.19	11.88%
Security Bank Savings Corporation	1,619,206.37	795,088,386.40	793,469,180.03	0.20%
Citibank Savings Inc.	190,165,383.13	-2,373,027,012.86	-2,563,192,395.99	-8.01%
Card SME Bank Inc. (A Thrift Bank)	5,777,110.37	-36,186,335.58	-41,963,445.95	-15.96%
Grand Total	856,899,489.50	703,325,479.73	-153,574,009.77	121.84%

Source: www.bsp.gov.ph