A further 26 commercial banks and four thrift banks are licensed to engage in derivatives activities. According to data from the central bank, Bangko Sentral ng Pilipinas (BSP), the combined assets of the country’s banks accounted for 81.4% of total financial system assets as of the first half of 2017. For example, comparing the return on assets between companies helps an analyst or investor to determine which company is making the most efficient use of its assets. A ratio is statistical yardstick by means of which relationships between two or various figures can be compared or measured. Credit card lending jumped from P149bn ($2.9bn) in 2012 to hit P239bn ($4.7bn) in 2017, and mortgage market growth has been even more pronounced, with the total residential real estate loan portfolio increasing from P265bn ($5.2bn) in 2012 to P600bn ($11.2bn) in 2017, equivalent to 40.2% of total consumer lending in 2017. Good luck! In its Financial Regulation Outlook report, BBVA Research analysts address some of the questions being asked in Europe over the course and pace that regulators will choose in the medium and long term. - The Philippine banking industry posted a CAGR hike of 8.46% in asset base between 2004 and 2007. BBVA Research has analyzed the potential regulatory scenarios that the financial industry will be facing in the next 5 to 10 years. Using ratios to compare one company to another is extremely helpful in gauging the financial … Register now and also receive a complimentary 2-month licence to the OBG Research Terminal. The price to earnings ratio is calculated by taking the latest closing price and dividing it by the most recent earnings per share (EPS) number. The BSP reported that the five banks with the largest assets as of December 2017 were BDO Unibank, at P2.53trn ($50bn), Metropolitan Bank and Trust Company, at P1.71trn ($33.8bn), Bank of the Philippine Islands, at P1.64trn ($32.4bn), Land Bank of the Philippines, at P1.62trn ($32bn), and the Philippine National Bank, at P779.8bn ($15.4bn). Browse our extensive research tools and reports. I. Working Capital Ratio Comment: On the trailing twelve months basis Due to increase in Current Liabilities in the 3 Q 2020, Working Capital Ratio fell to 1.08 below Commercial Banks Industry average. The surprising cut by the Bangko Sentral ng Pilipinas comes after a dismal third quarter. This study explored the effects of mergers and acquisitions, together with liquidity, activity, leverage, profitability, market performance ratios and industry subsectors on the year-on-year change in stock If you have already purchased this Report or have a website subscription, please login to continue. Net interest margin measures the difference between interest income generated and interest expenses. Efficiency Ratio — Overall the operating efficiency of the community banking industry remains good, however the slight increase from 66.92% in 2018 to 67.66% in 2019 is reflective of the increasing cost attracting and retaining quality bank personnel and the increasing cost of technology. This has improved liquidity and stability, and set the stage for long-term expansion. combination, financial ratios and industry subsectors as the independent variables and the change in stock price as the dependent variable. Ratios show how one number is related to another. As banks put a greater focus on retail loans, NPLs could rise, as these types of loans tend to have higher delinquency rates than corporate ones, according to Moody’s. 4/13/2020 2 ... UBP Union Bank of the Philippines UCPB United Coconut Planters Bank. Each issue of non-compliance will result in fines ranging from P150 ($2.96) for rural and cooperative lenders, to P3000 ($59.27) for universal banks. Listed companies' analysis | Ranking | Industry ratios | Statements. Within Financial sector 7 other industries have achieved higher Working Capital Ratio. Explore any of the chapters below to select an article. I.1 The banking industry grew moderately on the weak macroeconomic momentum Given such factors as the US policies on tax, investment and trade protection, tightening financial environment in emerging markets in the context of the Fed’s interest rate hikes, and geopolitical tensions in the Middle East, the global economic growth is expected to be only 3.7% in 2018, flat with one year ago. According to an August 2017 S&P report titled “Philippine Banks to Continue to Ride Robust Economic Growth”, the local credit cycle is still on an upswing, as it remains supported by healthy corporate profits and abundant liquidity. Moody’s expects banks’ capitalisation to remain strong in 2018, although it could weaken slightly under pressure from rapid credit growth and the implementation of the new financial reporting reforms, Philippine Financial Reporting Standards 9 (PFRS 9). The agency’s stable outlook is supported by strong macroeconomic fundamentals, with its baseline scenario assuming GDP growth will hit 6.8% in 2018, up slightly from 6.7% in 2017, supported by strong domestic consumption and faster deployment of investment. BizMiner provides analytical industry content to thousands of banking, accounting, valuation, CRE professionals and consultants; and over 200,000 business students in almost 100 universities. While conglomerates have larger balance sheets and a track record of resilience to market crises, the complex nature of such companies, which often hold multiple operating subsidiaries and cross holdings, creates risks arising from their interconnectedness. ASEAN Economic Community (AEC) integration should see foreign participation increase in the coming years, with the ITA reporting that under the AEC Blueprint, the Philippines is advancing regional financial service integration, including legislation to allow the entry of qualified ASEAN banks (QAB) under the ASEAN Banking Integration Framework (see regional analysis). Dun & Bradstreet’s Key Business Ratios on the Web provides online access to benchmarking data. Special accessing entities participating in the CIC project include CIBI Information, South Africa’s Compuscan, Italy’s CRIF and US-based TransUnion. The Philippines is a net cross-border lender, recording a net financial asset position of $6.9bn in the first half of 2017, against $5.9bn in the same period of 2016. All signs point to continued expansion in 2018, with non-performing loans (NPLs) declining in recent times as credit growth has gained momentum. ... Earnings-Per-Share (EPS), Return-On-Investment (ROI) and others based on Bank of Montreal's latest financial reports. Search reports, statistics & slideshows on Banking. There are many different approaches to benchmarking the banking sector. According to global ratings agency Moody’s, the nine listed banks it rates accounted for 75% of total banking system assets as of June 2017. 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. If you have a good handle and understanding of these three ratios, you will be able to go into the bank with confidence that your loan request is reasonable based on industry standard ratios. Emerging source of household credit in the next 5 to 10 years is nonetheless... 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