Table 1.

Philippine Banking System: Financial Highlights

Levels (P Billion)
Income Statement
Total Operating Income
Net Interest Income
Non-interest Income
Non-Interest Expenses
Losses/Recoveries on Financial Assets
Bad Debts/Provisions for Credit Losses
Recovery on Charged-Off Assets
Net Profit Before Share in the Profit/(Loss) of Unconsolidated
Subsidiaries, Associates and Joint Ventures
Share in the Profit/(Loss) of Unconsolidated Subsidiaries,
Associates and Joint Ventures
Total Profit/Loss Before Tax and Before Minority Interest
Income Tax Expense
Total Profit/Loss After Tax and Before Minority Interest
Minority Interest in Profit/(Loss) of Subsidiaries
Net Profit or Loss
Balance Sheet
Total Assets 1/
Cash and Due from Banks
Financial Assets, gross (Other than Loans)
Financial Assets Held for Trading (HFT)
Financial Assets Designated at Fair Value through Profit and
Loss (DFVPL)
Available-for-Sale (AFS) Financial Assets
Held-to-Maturity (HTM) Financial Assets
Unquoted Debt Securities Classified as Loans
Investments in Non-Marketable Equity Securities (INMES)
Allowance for Credit Losses
Accumulated Market Gains/Losses
Financial Assets, net (Other than Loans)
Interbank Loans Receivable (IBL)
Loans, gross (exclusive of IBL)
Reverse Repurchase with BSP (RRP)
Loans, gross (exclusive of IBL and RRP)
Allowance for Probable Losses
Loans, net (exclusive of IBL and RRP)
Equity Investment in Subsidiaries, Associates and Joint
Ventures, net
ROPA, net
Other Assets, net
Total Liabilities
Financial Liabilities Held for Trading
Financial Liabilities DFVPL
Deposits
Peso Liablities
Foreign Currency
Bills Payable
Other Liabilities
Unsecured Subordinated Debt
Redeemable Preferred Shares
Total Capital Accounts 2/

2008

End-December
2009
2010 r/

End-June
2010
2011 p/

268.6
183.8
84.8
199.5
(19.2)
21.9
2.7

316.1
209.8
106.2
208.9
(28.6)
30.0
1.4

358.3
225.1
133.2
229.0
(29.3)
31.1
1.8

160.7
106.8
53.9
104.1
(13.0)
13.9
0.9

176.0
114.3
61.7
112.6
(8.9)
9.8
0.9

49.9

78.5

100.0

43.6

54.5

7.4

8.7

11.2

4.7

6.3

57.3
15.9
41.4
41.4

87.2
17.8
69.4
69.4

111.1
20.0
91.2
91.2

48.3
7.7
40.6
40.6

60.8
8.9
51.9
51.9

5,675.7
834.9
1,403.7
207.8

6,192.3
877.9
1,592.1
190.9

6,918.3
1,326.9
1,731.7
206.5

6,295.5
941.6
1,679.9
184.3

7,018.0
1,226.8
1,713.3
196.6

12.1

10.3

8.2

10.9

6.6

495.7
480.8
190.7
8.8
21.1
...
1,368.6
241.7
2,682.8
225.2
2,457.6
123.1
2,334.5

651.3
509.1
196.8
25.2
25.1
15.9
1,582.9
350.0
2,829.9
262.2
2,567.7
131.6
2,436.1

795.3
521.3
175.9
24.5
28.1
30.2
1,733.7
227.3
3,076.2
290.0
2,786.3
142.0
2,644.2

737.0
531.7
191.0
25.0
28.0
17.6
1,669.5
329.9
2,812.8
213.2
2,599.6
137.7
2,461.9

798.1
513.1
174.7
24.2
25.1
26.8
1,715.0
209.4
3,338.9
295.4
3,043.5
146.3
2,897.2

102.5

122.6

133.2

132.5

138.5

163.9
404.4
5,076.5
46.7
11.0
4,195.1
3,217.3
977.8
357.4
370.4
93.6
2.4
599.2

153.4
407.2
5,504.3
36.0
6.3
4,671.8
3,615.0
1,056.9
329.4
355.8
104.8
0.1
688.0

145.1
418.0
6,109.8
53.4
6.5
5,125.1
4,023.6
1,101.5
370.9
446.9
106.6
0.5
808.5

147.0
400.0
5,563.0
39.5
6.3
4,754.1
3,609.2
1,144.9
299.4
357.3
106.0
0.4
732.5

133.6
402.1
6,173.5
37.1
6.5
5,155.8
4,044.4
1,111.4
399.2
457.3
117.2
0.5
844.5

1/ Adjusted to net off the account "Due from Head Office" with "Due to Head Office" of branches of foreign banks
2/ Inclusive of the portion of the "Net Due to Head Office" which qualified as capital
r/ Revised
p/ Preliminary
Figures may not add up due to rounding-off
. . . Less than P0.05 billion

Table 2. Philippine Banking System: Growth Rates

Growth Rates
Income Statement
Total Operating Income
Net Interest Income
Non-interest Income
Non-Interest Expenses
Losses/Recoveries on Financial Assets
Bad Debts/Provisions for Credit Losses
Recovery on Charged-Off Assets
Net Profit Before Share in the Profit/(Loss) of Unconsolidated
Subsidiaries, Associates and Joint Ventures
Share in the Profit/(Loss) of Unconsolidated Subsidiaries,
Associates and Joint Ventures
Total Profit/Loss Before Tax and Before Minority Interest
Income Tax Expense
Total Profit/Loss After Tax and Before Minority Interest
Minority Interest in Profit/(Loss) of Subsidiaries
Net Profit or Loss
Balance Sheet
1/
Total Assets
Cash and Due from Banks
Financial Assets, gross (Other than Loans)
Financial Assets Held for Trading (HFT)
Financial Assets Designated at Fair Value through Profit and
Loss (DFVPL)
Available-for-Sale (AFS) Financial Assets
Held-to-Maturity (HTM) Financial Assets
Unquoted Debt Securities Classified as Loans
Investments in Non-Marketable Equity Securities (INMES)
Allowance for Credit Losses
Accumulated Market Gains/Losses
Financial Assets, net (Other than Loans)
Interbank Loans Receivable (IBL)
Loans, gross (exclusive of IBL)
Reverse Repurchase with BSP (RRP)
Loans, gross (exclusive of IBL and RRP)
Allowance for Probable Losses
Loans, net (exclusive of IBL and RRP)
Equity Investment in Subsidiaries, Associates and Joint
Ventures, net
ROPA, net
Other Assets, net
Total Liabilities
Financial Liabilities Held for Trading
Financial Liabilities DFVPL
Deposits
Peso Liablities
Foreign Currency
Bills Payable
Other Liabilities
Unsecured Subordinated Debt
Redeemable Preferred Shares
2/
Total Capital Accounts

2008

End-December
r/
2009
2010

End-June
p/
2010
2011

(4.5%)
9.3 %
(25.0%)
8.7 %
(7.9%)
(5.0%)
22.6 %

17.7 %
14.2 %
25.3 %
4.7 %
49.1 %
37.2 %
(47.9%)

13.4 %
7.3 %
25.4 %
9.6 %
2.4 %
3.7 %
29.4 %

4.4 %
1.8 %
9.9 %
(0.0%)
6.0 %
5.8 %
2.4 %

9.5%
7.0%
14.5%
8.1%
(31.3%)
(29.5%)
(3.8%)

(35.0%)

57.2 %

27.3 %

16.0 %

25.0%

0.0 %

17.8 %

28.7 %

14.7 %

34.5%

(25.5%)
13.6 %
(34.2%)
0.0 %
(34.2%)

52.2 %
11.9 %
67.6 %
0.0 %
67.6 %

27.4 %
12.4 %
31.3 %
0.0 %
31.3 %

15.9 %
(7.3%)
21.7 %
0.0 %
21.7 %

25.9%
14.9%
28.0%
...
28.0%

10.5 %
11.3 %
23.7 %

9.1 %
5.2 %
13.4 %
(8.1%)

11.7 %
51.1 %
8.8 %
8.2 %

9.0 %
20.6 %
11.5 %
(0.6%)

11.5%
30.3%
2.0%
6.7%

(15.1%)

(20.4%)

0.4 %

(39.2%)

256.5 %
(158.0%)
18.7 %
(37.8%)
21.5 %
11.9 %
22.4 %
6.2 %
23.4 %

31.4 %
5.9 %
3.2 %
184.9 %
18.8 %
(213.9%)
15.7 %
44.8 %
5.5 %
16.4 %
4.5 %
6.9 %
4.4 %

22.1 %
2.4 %
(10.6%)
(2.6%)
11.9 %
90.0 %
9.5 %
(35.1%)
8.7 %
10.6 %
8.5 %
7.9 %
8.5 %

31.5 %
2.8 %
(5.8%)
14.3 %
23.0 %
323.7 %
12.2 %
12.6 %
5.4 %
(22.3%)
8.5 %
6.8 %
8.6 %

8.3%
(3.5%)
(8.5%)
(3.3%)
(10.6%)
52.0%
2.7%
(36.5%)
18.7%
38.5%
17.1%
6.2%
17.7%

(13.0%)

19.6 %

8.6 %

15.3 %

4.5%

(9.5%)
(10.4%)
12.0 %
0.0 %
0.0 %
14.5 %
12.6 %
21.0 %
(14.0%)
(0.2%)
15.5 %

(6.4%)
0.7 %
8.4 %
(22.9%)
(42.3%)
11.4 %
12.4 %
8.1 %
(7.8%)
(3.9%)
12.0 %
(96.6%)
14.8 %

(5.4%)
2.6 %
11.0 %
48.3 %
2.6 %
9.7 %
11.3 %
4.2 %
12.6 %
25.6 %
1.7 %
459.7 %
17.5 %

(7.5%)
(0.6%)
8.5 %
38.2 %
(0.1%)
10.1 %
10.6 %
8.5 %
(10.5%)
7.2 %
4.7 %
(82.4%)
12.3 %

(9.1%)
0.5%
11.0%
(6.3%)
2.1%
8.5%
12.1%
(2.9%)
33.4%
28.0%
10.6%
5.2%
15.3%

(0.4%)

1/ Adjusted to net off the account "Due from Head Office" with "Due to Head Office" of branches of foreign banks
2/ Inclusive of the portion of the "Net Due to Head Office" which qualified as capital
r/ Revised
p/ Preliminary
. . . Less than 0.05 percent

Table 3. Philippine Banking System: Selected Performance Indicators

End-December
2008

Selected Ratios

2009

End-June
2010 r/

2010

2011 p/

Profitability
Earning Asset Yield
Funding Cost

1/

7.7 %

7.0 %

6.1 %

6.4 %

6.0 %

3.2 %

2.6 %

2.1 %

2.4 %

2.1 %

4.5 %

4.5 %

3.9 %

4.1 %

3.9 %

4.3 %

4.4 %

4.0 %

4.2 %

4.0 %

31.6 %

33.6 %

37.2 %

34.2 %

37.7 %

74.0 %

65.8 %

63.6 %

64.5 %

63.2 %

2/

Interest Spread

3/

Net Interest Margin

4/

Non-interest Income to Total Operating Income

Cost-to-Income

5/

6/

Return on Assets (ROA)

7/

0.8 %

1.2 %

1.4 %

1.3 %

1.5 %

Return on Equity (ROE)

7/

6.9 %

10.8 %

12.2 %

11.2 %

13.0 %

19.9 %

18.8 %

25.9 %

19.8 %

23.8 %

52.5 %

52.7 %

59.7 %

54.9 %

57.1 %

69.7 %

68.1 %

64.5 %

66.1 %

68.8 %

2.1 %

1.6 %

1.5 %

1.6 %

1.3 %

Allowance for Credit Losses on Loans to TLP

3.6 %

3.4 %

3.5 %

3.6 %

3.2 %

Non-performing Loans (NPL)

NPL, exclusive of IBL

4.1 %

3.7 %

3.6 %

3.9 %

3.1 %

4.5 %

4.1 %

3.9 %

4.4 %

3.3 %

86.0 %

93.1 %

97.6 %

92.1 %

103.9 %

5.1 %
45.0 %

4.5 %
48.7 %

3.9 %
52.7 %

4.4 %
50.5 %

3.6 %
56.0 %

3.1 %

2.6 %

2.3 %

2.5 %

2.1 %

ROPA Coverage Ratio

17.5 %

18.2 %

19.7 %

19.3 %

21.1 %

Distressed Assets

10.8 %

9.3 %

8.8 %

9.4 %

7.7 %

10.6 %

11.1 %

11.7 %

11.6 %

12.0 %

14.7 %

14.9 %

16.0 %

15.2 %

16.5 %

Liquidity
Cash and Due from Banks to Deposits
Liquid Assets to Deposits

8/

Loans, gross to Deposits

Asset quality
Restructured Loans to Total Loan Portfolio

NPL Coverage
Non-performing Assets (NPA) to Gross Assets
NPA Coverage
ROPA to Gross Assets Ratio

Capital Adequacy
Total Capital Accounts to Total Assets
Capital Adequacy Ratio (Solo)

9/

10/

1/ Earning Asset Yield refers to the ratio of interest income to average earning assets
2/ Funding Cost refers to the ratio of interest expenses to average interest-bearing liabilities
3/ Interest Spread refers to the difference between earning asset yield and funding cost
4/ Net Interest Margin refers to the ratio of net interest income to average earning assets
5/ Non-interest income now includes dividends income
6/ Cost-to-Income Ratio refers to the ratio of non-interest expenses to total operating income
7/ ROA and ROE refers to the ratio of annualized net profit to average assets and capital, respectively.
8/ Liquid Assets refers to Cash and Due from Banks plus Financial Assets, net of amortization (net of financial assets in equity securities).
9/ Total capital accounts includes redeemable preferred shares
10/ Based on the new framework provided for under Circular No. 280 dated 29 March 2001, formally adopted 1 July 2001; Under Circular No. 360 dated 3
December 2002, adopted 1 July 2003, Universal/Commercial Banks are to incorporate market risks in addition to credit risks; Under Circular No. 538 dated 4
August 2006, effective 1 July 2007, U/KBs are to incorporate operational risk in addition to credit and market risks.
r/ Revised
p/ Preliminary
a/ Data as of end-March 2011

a/