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An 80% Minimum NPL Coverage Ratio Will Result In A Severe Undercapitalization Of Some Philippine Banks - March 31, 2014

|Includes: CKGOY, iShares MSCI Philippines ETF (EPHE)

An 80% Minimum NPL Coverage Ratio will Result in a Severe Undercapitalization of Some Philippine Banks - March 31, 2014

 

In a previous blog post called "Are Philippine Banks Under Provisioning Loan Losses? - As of March 31, 2013", we discussed the current aggregate Loan Loss Reserves (LLR) as a percentage of Total Loan Portfolio (NYSE:TLP), which stood at 3.10% as of March 31, 2014, is below the historic average of 4.32% for the last thirty years. Despite NPLs being at or near historic lows, some banks still have not adequately provisioned for loan losses. Their NPL Coverage Ratios are below the ideal ratio of 100% and even below the suggested minimum of 80% NPL Coverage Ratio.

As the table below suggests, it seems that around 48 banks (highlighted in yellow) fall into this deficiency.

Philippine Banking System
NPL Coverage Ratio
March 31, 2014
       
       
Bank Loan Loss Provisions Gross NPLs NPL Coverage Ratio
PRODUCERS SAVINGS BANK CORPORATION 62,993,638.40 322,246,331.41 19.55%
PHILIPPINE RESOURCES SAVINGS BANKING 212,441,553.87 935,376,928.06 22.71%
THE REAL BANK (A THRIFT BANK) INC 656,788,213.44 2,665,857,090.78 24.64%
PROGRESS SAVINGS AND LOAN BANK INC 309,923.60 1,247,829.54 24.84%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE 19,545,709.08 73,280,074.41 26.67%
MALASIQUI PROGRESSIVE SLB, INC 6,470,762.05 23,758,506.25 27.24%
EQUICOM SAVINGS BANK INC 78,171,347.82 285,604,477.12 27.37%
LIFE SAVINGS BANK INC 2,649,806.08 9,499,865.50 27.89%
DUNGGANON BANK (A MICROFINANCE THRIFT 9,922,919.00 34,773,345.24 28.54%
METRO CEBU PUBLIC SAVINGS BANK 5,223,157.51 17,551,596.78 29.76%
QUEZON COCONUT BANK INC (A THRIFT BANK) 930,212.75 3,073,050.56 30.27%
COMSAVINGS BANK 60,506,624.39 191,305,787.91 31.63%
NORTHPOINT DEV'T BANK INC 16,405,983.73 50,239,956.29 32.66%
WEALTH DEVELOPMENT BANK CORPORATION 64,853,212.07 195,898,098.57 33.11%
CENTURY SAVINGS BANK CORPORATION 12,646,730.90 37,181,786.96 34.01%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK 15,538,217.16 45,631,012.38 34.05%
PACIFIC ACE SAVINGS BANK INC 2,829,328.72 8,033,232.49 35.22%
PLANTERS DEVELOPMENT BANK 1,315,210,918.76 3,573,216,336.81 36.81%
LUZON DEVELOPMENT BANK 76,211,555.66 188,268,285.57 40.48%
DUMAGUETE CITY DEV BANK INC 17,300,528.04 41,571,909.87 41.62%
MARITIME SAVINGS BANK CORPORATION 7,074,281.24 16,625,205.32 42.55%
ALLIED SAVINGS BANK 185,955,059.14 436,778,077.39 42.57%
PAMPANGA DEVELOPMENT BANK 17,325,061.24 40,645,528.06 42.62%
CITYSTATE SAVINGS BANK INC 50,682,977.13 118,808,414.32 42.66%
BUSINESS AND CONSUMERS BANK (A DB) 7,130,940.77 15,928,824.09 44.77%
LEMERY SAVINGS & LOAN BANK, INC. 5,008,824.64 10,377,162.11 48.27%
CHINA BANK SAVINGS INC 225,492,939.65 463,950,396.70 48.60%
LEGAZPI SAVINGS BANK INC 152,736,227.42 298,280,428.39 51.21%
MICROFINANCE MAXIMUM SB INC 1,434,011.34 2,711,378.39 52.89%
BANK ONE SAVINGS AND TRUST CORP. 8,261,602.53 15,304,127.53 53.98%
PENBANK INC (A PDB) (FORMERLY: PENINSULA 48,608,159.37 88,363,646.80 55.01%
FARMERS SAVINGS & LOAN BANK INC 24,218,286.37 41,176,509.30 58.82%
STERLING BANK OF ASIA INC (A SAVINGS 528,217,652.34 804,918,619.51 65.62%
WORLD PARTNERS BANK (A THRIFT BANK) 67,792,897.28 102,728,095.15 65.99%
RCBC SAVINGS BANK INC 1,333,628,847.92 1,996,786,055.85 66.79%
HIYAS BANKING CORPORATION 12,588,045.27 18,816,080.51 66.90%
EAST WEST BANKING CORP 3,116,330,203.78 4,598,059,488.49 67.77%
MAYBANK PHILIPPINES INC 876,734,789.30 1,282,710,033.55 68.35%
PRIDE STAR DEVELOPMENT BANK INC 6,090,315.48 8,882,515.92 68.57%
TONGYANG SAVINGS BANK INC 98,611,405.84 140,394,529.05 70.24%
BATAAN DEVELOPMENT BANK 15,592,398.15 21,736,980.10 71.73%
BPI GLOBE BANKO INC A SAVINGS BANK 189,492,130.37 258,776,399.64 73.23%
TOWER DEVELOPMENT BANK 8,420,489.56 11,363,447.67 74.10%
BATAAN SAVINGS AND LOAN BANK 2,137,583.98 2,838,338.85 75.31%
UNITED COCONUT PLANTERS BANK 4,310,199,030.53 5,711,874,624.13 75.46%
KOREA EXCHANGE BANK 121,587,117.18 158,745,180.26 76.59%
1ST VALLEY BANK INC A DEVELOPMENT BANK 176,196,944.07 227,611,007.05 77.41%
SAMPAGUITA SAVINGS BANK INC 21,561,538.64 27,028,077.39 79.77%
VILLAGE BANK INC (A THRIFT BANK) 17,342,200.42 21,639,438.67 80.14%
MALAYAN BANK SAVINGS AND MORT BANK INC 176,965,866.26 218,312,032.21 81.06%
THE PALAWAN BANK (PALAWAN DB) INC 11,645,752.16 14,071,641.06 82.76%
UNIVERSITY SAVINGS BANK INC 41,066,844.80 48,282,166.46 85.06%
STANDARD CHARTERED BANK 1,339,429,791.93 1,572,054,950.49 85.20%
ENTERPRISE BANK INC (A THRIFT BANK) 45,072,038.57 52,061,188.50 86.58%
PHIL POSTAL SAVINGS BANK INC 346,062,955.34 387,713,709.40 89.26%
PHILIPPINE BUSINESS BANK INC A SAVINGS 706,501,501.15 786,384,293.47 89.84%
BPI FAMILY SAVINGS BANK INC 4,211,946,971.24 4,654,699,353.00 90.49%
FIRST CONSOLIDATED BANK INC (A PDB) 435,179,565.24 471,778,749.04 92.24%
PHIL NATIONAL BANK 9,590,241,198.85 10,323,540,398.06 92.90%
PHIL BANK OF COMMUNICATIONS 1,298,732,232.42 1,369,863,596.82 94.81%
DEVELOPMENT BANK OF THE PHIL 5,715,894,730.19 5,952,217,939.24 96.03%
ROBINSONS BANK CORPORATION 439,347,712.86 450,161,983.95 97.60%
BANK OF COMMERCE 3,108,071,210.14 3,140,730,913.06 98.96%
INTER-ASIA DEVELOPMENT BANK 5,749,165.66 5,766,081.97 99.71%
HONGKONG & SHANGHAI BANKING CORP 1,188,727,905.84 1,186,140,410.67 100.22%
UNITED OVERSEAS BANK PHILIPPINES 667,735,102.81 665,448,276.65 100.34%
SECURITY BANK SAVINGS CORPORATION 638,145,183.42 603,956,346.71 105.66%
ASIA UNITED BANK CORPORATION 1,144,070,390.43 1,067,876,024.36 107.14%
PHILIPPINE VETERANS BANK 1,076,688,778.04 953,671,205.86 112.90%
RIZAL COMM'L BANKING CORP 3,561,804,559.33 3,128,741,619.03 113.84%
SUN SAVINGS BANK INC 7,995,615.69 6,955,500.63 114.95%
CORDILLERA SAVINGS BANK INC 17,486,628.42 15,135,180.92 115.54%
UNION BANK OF THE PHILS 10,735,837,873.52 9,264,016,489.58 115.89%
PHIL SAVINGS BANK 4,466,521,734.22 3,852,498,544.36 115.94%
UCPB SAVINGS BANK 412,117,873.82 353,568,135.78 116.56%
CTBC BANK (PHILIPPINES) CORP 457,401,405.13 376,072,936.98 121.63%
HSBC SAVINGS BANK(PHILS) INC 100,295,645.53 74,113,078.25 135.33%
MERCHANTS SAVINGS & LOAN ASSN INC 5,149,261.10 3,649,479.97 141.10%
LAND BANK OF THE PHILIPPINES 11,864,985,279.25 7,718,631,312.24 153.72%
BANK OF THE PHIL ISLANDS 11,724,931,399.54 7,313,979,407.47 160.31%
BDO UNIBANK INC 27,958,729,248.94 17,110,528,484.20 163.40%
CHINA BANKING CORP 6,743,511,736.83 4,085,461,652.86 165.06%
CARD SME BANK INC A THRIFT BANK 36,422,500.47 21,670,955.37 168.07%
PHIL TRUST COMPANY 1,992,376,839.36 1,146,303,968.20 173.81%
BPI DIRECT SAVINGS BANK INC 185,278,822.46 92,818,624.06 199.61%
OPTIMUM DEVELOPMENT BANK INC 44,626,617.39 18,286,790.21 244.04%
SECURITY BANK CORP 2,452,549,980.38 958,577,062.77 255.85%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 3,147,733.68 1,092,048.97 288.24%
METROPOLITAN BANK & TCO 11,572,102,150.64 3,280,149,921.17 352.79%
CITIBANK, N.A. 7,628,556,408.94 1,337,572,880.61 570.33%
BANK OF CHINA LIMITED-MANILA BRANCH 69,701,614.59 8,660,895.91 804.79%
ANZ BANKING GROUP LTD 259,724,705.59 23,339,114.85 1112.83%
JP MORGAN CHASE BANK NATIONAL ASSN. 20,313,705.00 734,885.22 2764.20%
BANGKOK BANK PUBLIC CO LTD 160,619,067.50 4,914,155.55 3268.50%
INTERNATIONALE NEDERLANDEN GROEP BK 73,974,214.82 91.63 80731436.01%
BANK OF AMERICA N.A. 10,250,004.00 4.00 256250100.00%
BDO ELITE SAVINGS BANK INC 0.00 0.00 NA
BDO PRIVATE BANK, INC. 79,530,838.02 0.00 NA
CITIBANK SAVINGS INC 0.00 0.00 NA
CITY SAVINGS BANK 0.00 0.00 NA
DEUTSCHE BANK AG 178,284,263.40 0.00 NA
ISLA BANK(A THRIFT BANK) INC 4,004,580.33 0.00 NA
MEGA INT'L COMM'L BANK CO LTD 219,352,501.10 0.00 NA
MIZUHO BANK LTD - MANILA BRANCH 329,971,183.27 0.00 NA
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 366,210,030.46 0.00 NA
Grand Total 150,204,443,224.05 119,769,678,594.46 125.41%

Raising the NPL Coverage Ratio to a minimum of 80% will entail additional loan loss provisions for some banks that could eat into a substantial chunk (20% or more) of their Stockholder's Equity. Based on the table below, around 10 banks will be severely affected:

Philippine Banking System
Impact on SE of Minimum Loan Loss Provisions
March 31, 2014
             
             
Bank Gross NPLs Minimum Loan Loss Provisions at 80% NPL Coverage Ratio Actual Loan Loss Provisions Excess/Deficit Loan Loss Provisions Stockholder's Equity Impact on SE
THE REAL BANK (A THRIFT BANK) INC 2,665,857,090.78 2,132,685,672.62 656,788,213.44 -1,475,897,459.18 623,169,811.49 -236.84%
PLANTERS DEVELOPMENT BANK 3,573,216,336.81 2,858,573,069.45 1,315,210,918.76 -1,543,362,150.69 2,962,516,124.60 -52.10%
COMSAVINGS BANK 191,305,787.91 153,044,630.33 60,506,624.39 -92,538,005.94 182,352,184.78 -50.75%
OPPORTUNITY KAUSWAGAN BANK INC (A MICROFINANCE 73,280,074.41 58,624,059.53 19,545,709.08 -39,078,350.45 102,749,325.53 -38.03%
NORTHPOINT DEV'T BANK INC 50,239,956.29 40,191,965.03 16,405,983.73 -23,785,981.30 64,659,809.94 -36.79%
PHILIPPINE RESOURCES SAVINGS BANKING 935,376,928.06 748,301,542.45 212,441,553.87 -535,859,988.58 1,662,827,636.60 -32.23%
EQUICOM SAVINGS BANK INC 285,604,477.12 228,483,581.70 78,171,347.82 -150,312,233.88 553,343,969.61 -27.16%
LEGAZPI SAVINGS BANK INC 298,280,428.39 238,624,342.71 152,736,227.42 -85,888,115.29 337,575,540.91 -25.44%
WEALTH DEVELOPMENT BANK CORPORATION 195,898,098.57 156,718,478.86 64,853,212.07 -91,865,266.79 373,531,565.95 -24.59%
MALASIQUI PROGRESSIVE SLB, INC 23,758,506.25 19,006,805.00 6,470,762.05 -12,536,042.95 54,677,057.82 -22.93%
DUNGGANON BANK (A MICROFINANCE THRIFT 34,773,345.24 27,818,676.19 9,922,919.00 -17,895,757.19 90,348,361.85 -19.81%
WORLD PARTNERS BANK (A THRIFT BANK) 102,728,095.15 82,182,476.12 67,792,897.28 -14,389,578.84 80,585,454.05 -17.86%
ALLIED SAVINGS BANK 436,778,077.39 349,422,461.91 185,955,059.14 -163,467,402.77 963,266,165.32 -16.97%
PRODUCERS SAVINGS BANK CORPORATION 322,246,331.41 257,797,065.13 62,993,638.40 -194,803,426.73 1,215,363,319.51 -16.03%
LUZON DEVELOPMENT BANK 188,268,285.57 150,614,628.46 76,211,555.66 -74,403,072.80 494,724,410.20 -15.04%
METRO CEBU PUBLIC SAVINGS BANK 17,551,596.78 14,041,277.42 5,223,157.51 -8,818,119.91 64,050,550.49 -13.77%
PAMPANGA DEVELOPMENT BANK 40,645,528.06 32,516,422.45 17,325,061.24 -15,191,361.21 118,955,453.11 -12.77%
BPI GLOBE BANKO INC A SAVINGS BANK 258,776,399.64 207,021,119.71 189,492,130.37 -17,528,989.34 152,910,249.12 -11.46%
MARITIME SAVINGS BANK CORPORATION 16,625,205.32 13,300,164.26 7,074,281.24 -6,225,883.02 62,296,104.59 -9.99%
PENBANK INC (A PDB) (FORMERLY: PENINSULA 88,363,646.80 70,690,917.44 48,608,159.37 -22,082,758.07 249,183,698.85 -8.86%
CHINA BANK SAVINGS INC 463,950,396.70 371,160,317.36 225,492,939.65 -145,667,377.71 1,680,952,906.29 -8.67%
FARMERS SAVINGS & LOAN BANK INC 41,176,509.30 32,941,207.44 24,218,286.37 -8,722,921.07 116,414,913.18 -7.49%
DUMAGUETE CITY DEV BANK INC 41,571,909.87 33,257,527.90 17,300,528.04 -15,956,999.86 213,345,382.52 -7.48%
STERLING BANK OF ASIA INC (A SAVINGS 804,918,619.51 643,934,895.61 528,217,652.34 -115,717,243.27 1,550,771,793.07 -7.46%
LIFE SAVINGS BANK INC 9,499,865.50 7,599,892.40 2,649,806.08 -4,950,086.32 67,757,354.91 -7.31%
BUSINESS AND CONSUMERS BANK (A DB) 15,928,824.09 12,743,059.27 7,130,940.77 -5,612,118.50 82,328,718.85 -6.82%
CITYSTATE SAVINGS BANK INC 118,808,414.32 95,046,731.46 50,682,977.13 -44,363,754.33 734,307,159.32 -6.04%
PACIFIC ACE SAVINGS BANK INC 8,033,232.49 6,426,585.99 2,829,328.72 -3,597,257.27 76,986,659.97 -4.67%
LEMERY SAVINGS & LOAN BANK, INC. 10,377,162.11 8,301,729.69 5,008,824.64 -3,292,905.05 72,217,211.14 -4.56%
RCBC SAVINGS BANK INC 1,996,786,055.85 1,597,428,844.68 1,333,628,847.92 -263,799,996.76 6,452,786,425.53 -4.09%
TONGYANG SAVINGS BANK INC 140,394,529.05 112,315,623.24 98,611,405.84 -13,704,217.40 388,809,256.43 -3.52%
QUEEN CITY DEVELOPMENT BANK INC OR QUEENBANK 45,631,012.38 36,504,809.90 15,538,217.16 -20,966,592.74 659,366,771.59 -3.18%
EAST WEST BANKING CORP 4,598,059,488.49 3,678,447,590.79 3,116,330,203.78 -562,117,387.01 19,488,602,756.57 -2.88%
BATAAN DEVELOPMENT BANK 21,736,980.10 17,389,584.08 15,592,398.15 -1,797,185.93 68,019,741.89 -2.64%
QUEZON COCONUT BANK INC (A THRIFT BANK) 3,073,050.56 2,458,440.45 930,212.75 -1,528,227.70 58,691,004.89 -2.60%
MICROFINANCE MAXIMUM SB INC 2,711,378.39 2,169,102.71 1,434,011.34 -735,091.37 38,321,311.19 -1.92%
CENTURY SAVINGS BANK CORPORATION 37,181,786.96 29,745,429.57 12,646,730.90 -17,098,698.67 916,937,801.45 -1.86%
HIYAS BANKING CORPORATION 18,816,080.51 15,052,864.41 12,588,045.27 -2,464,819.14 161,399,880.28 -1.53%
MAYBANK PHILIPPINES INC 1,282,710,033.55 1,026,168,026.84 876,734,789.30 -149,433,237.54 10,384,055,196.64 -1.44%
PRIDE STAR DEVELOPMENT BANK INC 8,882,515.92 7,106,012.74 6,090,315.48 -1,015,697.26 74,725,625.76 -1.36%
UNITED COCONUT PLANTERS BANK 5,711,874,624.13 4,569,499,699.30 4,310,199,030.53 -259,300,668.77 19,877,073,858.92 -1.30%
KOREA EXCHANGE BANK 158,745,180.26 126,996,144.21 121,587,117.18 -5,409,027.03 480,909,788.62 -1.12%
PROGRESS SAVINGS AND LOAN BANK INC 1,247,829.54 998,263.63 309,923.60 -688,340.03 82,292,284.97 -0.84%
BANK ONE SAVINGS AND TRUST CORP. 15,304,127.53 12,243,302.02 8,261,602.53 -3,981,699.49 544,534,902.56 -0.73%
TOWER DEVELOPMENT BANK 11,363,447.67 9,090,758.14 8,420,489.56 -670,268.58 114,419,099.22 -0.59%
1ST VALLEY BANK INC A DEVELOPMENT BANK 227,611,007.05 182,088,805.64 176,196,944.07 -5,891,861.57 1,073,900,287.47 -0.55%
BATAAN SAVINGS AND LOAN BANK 2,838,338.85 2,270,671.08 2,137,583.98 -133,087.10 72,157,228.01 -0.18%
SAMPAGUITA SAVINGS BANK INC 27,028,077.39 21,622,461.91 21,561,538.64 -60,923.27 57,672,342.21 -0.11%
BDO ELITE SAVINGS BANK INC 0.00 0.00 0.00 0.00 807,091,446.79 0.00%
CITIBANK SAVINGS INC 0.00 0.00 0.00 0.00 971,883,844.42 0.00%
VILLAGE BANK INC (A THRIFT BANK) 21,639,438.67 17,311,550.94 17,342,200.42 30,649.48 77,175,718.91 0.04%
MALAYAN BANK SAVINGS AND MORT BANK INC 218,312,032.21 174,649,625.77 176,965,866.26 2,316,240.49 1,054,678,882.87 0.22%
MERCHANTS SAVINGS & LOAN ASSN INC 3,649,479.97 2,919,583.98 5,149,261.10 2,229,677.12 471,236,692.40 0.47%
AL-AMANAH ISLAMIC INVESTMENT BANK OF THE PHILS 1,092,048.97 873,639.18 3,147,733.68 2,274,094.50 381,793,454.58 0.60%
ISLA BANK(A THRIFT BANK) INC 0.00 0.00 4,004,580.33 4,004,580.33 649,558,600.52 0.62%
PHILIPPINE BUSINESS BANK INC A SAVINGS 786,384,293.47 629,107,434.78 706,501,501.15 77,394,066.37 7,358,693,887.87 1.05%
UNIVERSITY SAVINGS BANK INC 48,282,166.46 38,625,733.17 41,066,844.80 2,441,111.63 219,269,486.25 1.11%
JP MORGAN CHASE BANK NATIONAL ASSN. 734,885.22 587,908.18 20,313,705.00 19,725,796.82 1,415,521,783.62 1.39%
THE PALAWAN BANK (PALAWAN DB) INC 14,071,641.06 11,257,312.85 11,645,752.16 388,439.31 27,795,358.05 1.40%
BDO PRIVATE BANK, INC. 0.00 0.00 79,530,838.02 79,530,838.02 5,435,347,034.96 1.46%
ROBINSONS BANK CORPORATION 450,161,983.95 360,129,587.16 439,347,712.86 79,218,125.70 5,239,101,313.23 1.51%
ENTERPRISE BANK INC (A THRIFT BANK) 52,061,188.50 41,648,950.80 45,072,038.57 3,423,087.77 219,921,441.20 1.56%
ASIA UNITED BANK CORPORATION 1,067,876,024.36 854,300,819.49 1,144,070,390.43 289,769,570.94 18,505,614,444.76 1.57%
HSBC SAVINGS BANK(PHILS) INC 74,113,078.25 59,290,462.60 100,295,645.53 41,005,182.93 2,578,035,862.71 1.59%
PHIL NATIONAL BANK 10,323,540,398.06 8,258,832,318.45 9,590,241,198.85 1,331,408,880.40 78,098,746,199.06 1.70%
BANK OF AMERICA N.A. 4.00 3.20 10,250,004.00 10,250,000.80 596,946,705.20 1.72%
INTER-ASIA DEVELOPMENT BANK 5,766,081.97 4,612,865.58 5,749,165.66 1,136,300.08 52,501,490.26 2.16%
FIRST CONSOLIDATED BANK INC (A PDB) 471,778,749.04 377,422,999.23 435,179,565.24 57,756,566.01 2,618,040,856.36 2.21%
SUN SAVINGS BANK INC 6,955,500.63 5,564,400.50 7,995,615.69 2,431,215.19 104,537,929.83 2.33%
RIZAL COMM'L BANKING CORP 3,128,741,619.03 2,502,993,295.22 3,561,804,559.33 1,058,811,264.11 45,331,529,316.16 2.34%
DEVELOPMENT BANK OF THE PHIL 5,952,217,939.24 4,761,774,351.39 5,715,894,730.19 954,120,378.80 40,094,459,800.95 2.38%
CTBC BANK (PHILIPPINES) CORP 376,072,936.98 300,858,349.58 457,401,405.13 156,543,055.55 6,392,598,403.91 2.45%
BPI FAMILY SAVINGS BANK INC 4,654,699,353.00 3,723,759,482.40 4,211,946,971.24 488,187,488.84 18,563,852,659.29 2.63%
INTERNATIONALE NEDERLANDEN GROEP BK 91.63 73.30 73,974,214.82 73,974,141.52 2,532,701,534.05 2.92%
HONGKONG & SHANGHAI BANKING CORP 1,186,140,410.67 948,912,328.54 1,188,727,905.84 239,815,577.30 6,101,749,058.38 3.93%
SECURITY BANK CORP 958,577,062.77 766,861,650.22 2,452,549,980.38 1,685,688,330.16 42,016,799,127.69 4.01%
OPTIMUM DEVELOPMENT BANK INC 18,286,790.21 14,629,432.17 44,626,617.39 29,997,185.22 713,672,445.02 4.20%
BANK OF COMMERCE 3,140,730,913.06 2,512,584,730.45 3,108,071,210.14 595,486,479.69 13,184,273,245.48 4.52%
PHIL POSTAL SAVINGS BANK INC 387,713,709.40 310,170,967.52 346,062,955.34 35,891,987.82 792,374,957.78 4.53%
PHIL BANK OF COMMUNICATIONS 1,369,863,596.82 1,095,890,877.46 1,298,732,232.42 202,841,354.96 4,472,824,414.17 4.53%
BANK OF THE PHIL ISLANDS 7,313,979,407.47 5,851,183,525.98 11,724,931,399.54 5,873,747,873.56 126,212,538,457.67 4.65%
UCPB SAVINGS BANK 353,568,135.78 282,854,508.62 412,117,873.82 129,263,365.20 2,730,465,559.23 4.73%
STANDARD CHARTERED BANK 1,572,054,950.49 1,257,643,960.39 1,339,429,791.93 81,785,831.54 1,666,384,056.91 4.91%
PHIL TRUST COMPANY 1,146,303,968.20 917,043,174.56 1,992,376,839.36 1,075,333,664.80 21,083,481,851.29 5.10%
CORDILLERA SAVINGS BANK INC 15,135,180.92 12,108,144.74 17,486,628.42 5,378,483.68 101,920,877.44 5.28%
PHILIPPINE VETERANS BANK 953,671,205.86 762,936,964.69 1,076,688,778.04 313,751,813.35 5,840,262,371.45 5.37%
CARD SME BANK INC A THRIFT BANK 21,670,955.37 17,336,764.30 36,422,500.47 19,085,736.17 291,104,890.74 6.56%
METROPOLITAN BANK & TCO 3,280,149,921.17 2,624,119,936.94 11,572,102,150.64 8,947,982,213.70 130,598,953,354.14 6.85%
ANZ BANKING GROUP LTD 23,339,114.85 18,671,291.88 259,724,705.59 241,053,413.71 3,302,947,026.06 7.30%
BANK OF CHINA LIMITED-MANILA BRANCH 8,660,895.91 6,928,716.73 69,701,614.59 62,772,897.86 797,420,382.03 7.87%
THE BNK OF TOKYO-MITSUBISHI UFJ LTD 0.00 0.00 366,210,030.46 366,210,030.46 4,581,085,136.29 7.99%
CHINA BANKING CORP 4,085,461,652.86 3,268,369,322.29 6,743,511,736.83 3,475,142,414.54 41,863,129,705.04 8.30%
UNION BANK OF THE PHILS 9,264,016,489.58 7,411,213,191.66 10,735,837,873.52 3,324,624,681.86 39,604,317,566.75 8.39%
LAND BANK OF THE PHILIPPINES 7,718,631,312.24 6,174,905,049.79 11,864,985,279.25 5,690,080,229.46 67,638,813,297.23 8.41%
BDO UNIBANK INC 17,110,528,484.20 13,688,422,787.36 27,958,729,248.94 14,270,306,461.58 165,466,057,134.09 8.62%
PHIL SAVINGS BANK 3,852,498,544.36 3,081,998,835.49 4,466,521,734.22 1,384,522,898.73 15,229,885,315.52 9.09%
BPI DIRECT SAVINGS BANK INC 92,818,624.06 74,254,899.25 185,278,822.46 111,023,923.21 1,038,535,786.97 10.69%
UNITED OVERSEAS BANK PHILIPPINES 665,448,276.65 532,358,621.32 667,735,102.81 135,376,481.49 1,264,480,366.89 10.71%
DEUTSCHE BANK AG 0.00 0.00 178,284,263.40 178,284,263.40 1,577,747,405.91 11.30%
MEGA INT'L COMM'L BANK CO LTD 0.00 0.00 219,352,501.10 219,352,501.10 1,878,799,338.87 11.68%
MIZUHO BANK LTD - MANILA BRANCH 0.00 0.00 329,971,183.27 329,971,183.27 2,724,745,253.27 12.11%
BANGKOK BANK PUBLIC CO LTD 4,914,155.55 3,931,324.44 160,619,067.50 156,687,743.06 1,121,635,525.23 13.97%
SECURITY BANK SAVINGS CORPORATION 603,956,346.71 483,165,077.37 638,145,183.42 154,980,106.05 987,411,819.09 15.70%
CITIBANK, N.A. 1,337,572,880.61 1,070,058,304.49 7,628,556,408.94 6,558,498,104.45 7,568,976,199.15 86.65%
CITY SAVINGS BANK NA NA NA NA NA NA
Grand Total 119,769,678,594.46 95,815,742,875.57 150,204,443,224.05 54,388,700,348.48 1,028,250,270,531.76 5.29%

Out of the 10 banks highlighted in yellow, 4 banks have been regularly listed as one of the"The Top Distressed Philippine Banks as of March 31, 2014".

Planters Development Bank faces a shortfall of 52.10% of its stated stockholders equity of Php 2.963 billion if it were to increase its loan loss provisions to meet a minimum NPL Coverage Ratio of 80%. Planters nearly failed in the last half of 2013 but was rescued when it was acquired by China Banking Corporation, a much healthier bank, for Php 1.863 billion last September 18, 2013. This represents a 40% discount to Planters stated book value of Php 3.133 billion as of September 30, 2013 or a 41% premium to their actual book value of Php 1.323 billion (after subtracting for unbooked losses/deferred charges). For more information regarding this, please read a previous blog post: "The Near Death Experience of Planters Development Bank".

We predicted that another bank on this list, The Real Bank, which had a loan loss provision shortfall of 2.37 times its equity as of March 31, 2014, would have to be recapitalized several times over to meet minimum loan loss provisions on its Gross NPLs. Just last July 7, 2014, the bank was acquired by BDO Unibank, the largest bank in the country, and it now has the financial resources to undertake this much needed recapitalization.