Philippines Banking Sector Analysis: Industry Report

Philippines Banking Sector Analysis

Product Type: Market Research Report
Published by: RNCOS
Published: June 2008
Product Code: R459-1159

Description

Over a period of time, the banking industry of the Philippines has seen a transformation with the reforms being carried out by both the banking regulator and the government. The reform process has resulted in improved banking industry, with industry income touching new heights in 2007. Moreover, the Philippine banking industry has been undergoing consolidation that will further strengthen its position as new entities will increase the competition level. Moreover, banks will continue to be supported by a benign economic outlook, which reduces the likelihood of a sharp increase in unemployment or corporate bankruptcies, as per ""Philippines Banking Sector Analysis"", a new research report by RNCOS.

The report provides extensive research and rational analysis on the Philippines banking industry and helps clients in analyzing the current performance and growth opportunities that exist in the banking industry. The report provides detailed overview of the banking industry in the Philippines by contemplating and analyzing various parameters like assets size, income level, number of financial cardholders etc. It helps clients to understand various products available in the Philippines banking industry and their future scope.

The future forecast discusses the future prospects of different arms of banking industry, including bancassurance, financial cards, mobile banking and role of technology in banking. The future projection given in this report is done on the basis of the current market scenario, past trends, and rules and regulations laid by the central bank.

For the purpose of this research report, Asia consist of China, India, Hong Kong, Taiwan, South Korea, Singapore, Malaysia, Thailand, Indonesia, Philippines and Vietnam.

Key Findings

The Philippine banking industry posted a CAGR hike of 8.46% in asset base between 2004 and 2007.
Industry deposits in the country grew at a CAGR of 9.82% from 2004 to 2007.
Deposit mobilization is concentrated with universal and commercial banks, which account for the majority of the Philippine banking industry deposit.
Financial Intermediation was the largest shareholder of the loan disbursal by banks during 2004-2007.
Bancassurance will account for 65% of the total sales of insurance products by 2011.
Increasing at a CAGR of 69.78%, microfinancing in the Philippines is expected to reach 56.5 Billion Pesos.
Increasing mobile penetration will expand the mobile banking user base to more than 11 Million by 2011.

Key Issues & Facts Analyzed

Market analysis of different product segments in the banking industry.
Evaluation of current market trends.
Factors driving growth in the Philippines banking industry.
Analysis of challenges and opportunities for the industry.

Key Players Analyzed

This section covers the overview about the major players in the Philippines banking industry like Metropolitan Bank and Trust, Bank of the Philippine Islands, Banco de Oro UniBank Inc. and Land Bank of the Philippines.

Research Methodology Used

Information Sources
Information has been sourced from books, newspapers, trade journals, and white papers, industry portals, government agencies, trade associations, monitoring industry news and developments, and through access to more than 3000 paid databases.

Analysis Method
The analysis methods include ratio analysis, historical trend analysis, linear regression analysis using software tools, judgmental forecasting, and cause and effect analysis.

Table of Contents

1. Analyst View
2. Asia Banking Industry
3. Philippines Banking Industry
4. Favorable Factors: 4.1 Assets Quality; 4.2 Banking Reforms; 4.3 Interest Rates; 4.4 Bankable Households; 4.5 Young & Educated Population
5. Philippines Banking Industry Performance: 5.1 Assets; 5.2 Deposits; 5.3 Income; 5.4 Performance Indicators; 5.5 By Product
6. Future Growth Areas: 6.1 Mobile Banking; 6.2 Bancassurance; 6.3 Microfinance; 6.4 Wealth Management; 6.5 IT Investment; 6.6 Mutual Fund Asset Expansion
7. Roadblocks: 7.1 Political Instability; 7.2 Basel II Accords; 7.3 Fragmented Industry; 7.4 Credit Risk
8. Key Players: 8.1 Metropolitan Bank and Trust; 8.2 Bank of the Philippine Islands; 8.3 Banco de Oro Unibank, Inc.; 8.4 Land Bank of the Philippines
List of Figures:: Figure 2-1: Asia - Banking Industry Assets (in Trillion US$), 2004E-2007E; Figure 2-2: Asia - Banking Industry Assets by Country (in Billion US$), 2007E; Figure 4-1: Philippines - NPL Ratio including Interbank Loans (%), Q1 2005 & Q4 2007; Figure 4-2: Philippines - NPL Ratio excluding Interbank Loan (%), Q1 2005 & Q4 2007; Figure 4-3: Philippines - Interest Rates (%), 2001-2007; Figure 4-4: Philippines - Bankable Households (in ‘000), 2001 & 2007; Figure 4-5: Philippines - Population by Age Group of 15-64 Years (in Million), 2001E-2007E; Figure 5-1: Philippines - Banking Industry Assets* (in Billion Pesos), 2004-2007; Figure 5-2: Philippines - Domestic & Foreign Bank Assets (%), Dec 2007; Figure 5-3: Philippines - Forecast for Banking Industry Assets (in Billion Pesos), 2008-2011; Figure 5-4: Philippines - Deposits* with Banking Industry (in Billion Pesos), 2004-2007; Figure 5-5: Philippines - Operating Income of Banking Industry (in Billion Pesos), 2004-2007; Figure 5-6: Philippines - Deposits* with Universal & Commercial Banks (in Billion Pesos), 2004-2007; Figure 5-7: Philippines - Deposits* with Universal & Commercial Banks by Type (%), 2007; Figure 5-8: Philippines - Deposits with Thrift Banks (in Billion Pesos), 2004-2007; Figure 5-9: Philippines - Types of Deposits with Thrift Banks (%), 2007; Figure 5-10: Philippines - Deposits with Rural & Cooperative Banks (in Billion Pesos), 2004-2007; Figure 5-11: Philippines - Types of Deposits with Rural & Cooperative Banks (%), 2007; Figure 5-12: Philippines - Number of Credit Cards (in Million), 2007*-2011F; Figure 5-13: Philippines - Credit Card Receivables* by Banking Group (%), 2007; Figure 5-14: Philippines - Credit Card Purchases (in Billion Pesos), 2007*-2011F; Figure 5-15: Philippines - Mutual Fund Assets under Management (in Billion Pesos), 2006 & 2007E; Figure 6-1: Philippines - Forecast for Mobile Banking Users (in Million), 2008-2011; Figure 6-2: Philippines - Forecast for Mobile Subscribers (in Million) & Penetration (%), 2008-2011; Figure 6-3: Philippines - Forecast for Bancassurance in Life Insurance Product Sales (%), 2011; Figure 6-4: Philippines - Forecast for Microfinance Industry (in Billion Pesos), 2008-2010; Figure 6-5: Philippines - Forecast for Mass Affluent Households (in ‘000), 2008-2012; Figure 6-6: Philippines - Forecast for Wealth of Mass Affluent Households (in Billion US$), 2008-2012; Figure 6-7: Philippines - Forecast for IT Spending* by Banking Industry (in Million US$), 2008-2011; Figure 6-8: Philippines - Forecast for Mutual Fund Assets under Management (in Billion Pesos), 2008-2011
List of Tables:: Table 2-1: Asia - Top Performing Banks by Country (2007); Table 5-1: Philippines - Assets by Banking Group (in Billion Pesos), 2004-2007; Table 5-2: Philippines - Interest Rates for Deposits by Time Period (%), 2001-2007 & Mar2008; Table 5-3: Philippines - Operating Income by Banking Group (in Billion Pesos), 2004-2007; Table 5-4: Philippines - Assets Quality Ratios of Banking Industry (%), 2004-2007; Table 5-5: Philippines - Profitability Ratios of Banking Industry (%), 2004-2007; Table 5-6: Philippines - Deposits* with Universal & Commercial Banks by Type (in Billion Pesos), 2004-2007; Table 5-7: Philippines - Types of Deposits with Thrift Banks (in Billion Pesos), 2004-2007; Table 5-8: Philippines - Types of Deposits with Rural & Cooperative Banks (in Billion Pesos), 2004-2007; Table 5-9: Philippines - Loans Portfolio of Banking Industry (in Billion Pesos), 2004-2007; Table 5-10: Philippines - Loans Portfolio of Universal & Commercial Banks (in Billion Pesos), 2004-2007; Table 5-11: Philippines - Loans Portfolio of Thrift Banks (in Billion Pesos), 2004-2007; Table 5-12: Philippines - Loans Portfolio of Rural & Cooperative Banks (in Billion Pesos), 2004-2007; Table 5-13: Philippines - ATM by Banking Group (in Number), 2004-2007; Table 5-14: Philippines - On-site & Off-site ATM by Banking Group (in Number), 2004-2007

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