Last January 8,2018, Hanjin Philippine which is one of the biggest ship builder in the Philippines, declared bankruptcy. It totaled an exposure of $412 dollars worth of loans which affected 5 different local banks.
worst case scenario.
BDO $60 million (estimated 10.3% 2018E income)
BPI $60 million (estimated 13.3% 2018E income)
MBT $72 million (estimated 16.5% 2018E income)
RCBC $140 million (estimated 166.1% 2018E income)
Landbank $80 million (n/a)
with RCBC taking most of the hit, the rest will add about an estimated around a mere 0.2 % in their non performing loan ratio.
A better scenario would be the courts to accept Hanjin's request for receivership for equitable remedy or loan restructuring and even corporate rehabilitation. It was estimated that Hanjin's assets reached an amount of $1.6 Billion which can be used to cover the loans.
There was a minor negative sentiments regarding the four banks affected but after the dust is clear and the statistics kicked off, we are back on tract, We are not so worried about the situation at the moment and at statues-quo.
Be calm and relaxed, We are here for the long-term.
Be calm and relaxed. We are here for the long-term gains