Philippines Banking Sector Analysis

Over a period, the banking sector in the Philippines have seen a transformation with the reforms carried out by both the banking regulator and the government. The reform process has resulted in an improvement in the banking sector, with industry income touching new heights in 2007.Moreover, the Philippine banking sector has undergone consolidation, which 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 risk of a sharp rise in unemployment or corporate bankruptcies, as per "Philippines Banking Sector Analysis", a new research report from 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 sector. The report provides detailed overview of the banking sector 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 in the Philippines banking industry and their future opportunities.

The future forecast discusses the future prospects of different arms of banking industry, including banc assurance, financial cards, mobile banking, role of technology in banking. The future projection of this report is drawn up based on the current market situation scenario, past trends, and rules and regulations set by the central bank.

For the purposes of this research report, Asia comprises 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 9.82% from 2004 to 2007.

- Deposit mobilization is concentrated with universal and commercial banks which account for most of the Philippine banking industry deposit.

- Financial intermediation contract was the largest shareholder of the loan disbursal by banks during 2004-2007.

- Banc assurance will account for 65% of the total sales of insurance products in 2011.

- Increasing at a CAGR of 69.78%, micro financing 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 in 2011.

Key Issues & Facts analyzed

- Market analysis of different product areas in the banking sector.

- Evaluation of current market trends.

- Factors driving growth in the Philippines banking industry.

- Analysis of challenges and opportunities for industry.

Key players analyzed

This section includes an overview of the key players in the Philippines banking industry like Metropolitan Bank and Trust, Bank of the Philippine Islands, Banco de Ore Nubian Inc. and Land Bank of the Philippines.

Research Methodology

Information Sources

The information comes from books, newspapers, 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, and linear regression analysis using software tools, judgmental forecasting and cause and effect analysis.