Philippines Commercial Banking Report Q4 2011

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Philippines Commercial Banking Report Q4 2011 Published on September 2011

Report Summary Since Q108, we have described numerically the banking business environment for each of the countries surveyed by BMI. We do this through our Commercial Banking Business Environment Rating (CBBER), a measure that ensures we capture the latest quantitative information available. It also ensures consistency across all countries and between the inputs to the CBBER and the Insurance Business Environment Rating, which is likewise now a feature of our insurance reports. Like the Business Environment Ratings calculated by BMI for all the other industries on which it reports, the CBBER takes into account the limits of potential returns and the risks to the realisation of those returns. It is weighted 70% to the former and 30% to the latter. The evaluation of the 'Limits of potential returns' includes market elements that are specific to the banking industry of the country in question and elements that relate to that country in general. Within the 70% of the CBBER that takes into account the 'Limits of potential returns', the market elements have a 60% weighting and the country elements have a 40% weighting. The evaluation of the 'Risks to realisation of returns' also includes banking elements and country elements (specifically, BMI's assessment of long-term country risk). However, within the 30% of the CBBER that take into account the risks, these elements are weighted 40% and 60% respectively. Further details on how we calculate the CBBER are provided at the end of this report. In general, though, three aspects need to be borne in mind in interpreting the CBBERs. The first is that the market elements of the 'Limits of potential returns' are by far the most heavily weighted of the four elements. They account for 60% of 70% (or 42%) of the overall CBBER. Second, if the market elements are significantly higher than the country elements of the 'Limits of potential returns', it usually implies that the banking sector is (very) large and/or developed relative to the general wealth, stability and financial infrastructure in the country. Conversely, if the market elements are significantly lower than the country elements, it usually means that the banking sector is small and/or underdeveloped relative to the general wealth, stability and financial infrastructure in the country. Third, within the 'Risks to the realisation of returns' category, the market elements (ie: how regulations affect the development of the sector, how regulations affect competition within it and Moody's ratings for local currency deposits) can be markedly different from BMI's longterm risk rating.

Table of Content Executive Summary . 5 Table: Levels (PHPbn) ..... 5 Table: Levels (US$bn) ...... 5 Table: Levels At April 2011 ....... 5 Table: Annual Growth Rate Projections 2011-2015 (%) ........ 5 Table: Ranking Out Of 59 Countries Reviewed In 2011 6 Table: Projected Levels (PHPbn) ....... 6 Table: Projected Levels (US$bn) ........ 6 SWOT Analysis 7 Philippines Commercial Banking SWOT ..... 7 Philippines Political SWOT ....... 8 Philippines Economic SWOT ..... 9 Philippines Business Environment SWOT .. 10

Philippines Commercial Banking Report Q4 2011 (From Issuu)

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>> Get this Report Now by email! Business Environment Outlook ........ 11 Commercial Banking Business Environment Ratings .. 11 Table: Philippines' Commercial Banking Business Environment Rating. 11 Commercial Banking Business Environment Rating Methodology . 12 Table: Asia Commercial Banking Business Environment Ratings .. 13 Global Commercial Banking Outlook ........ 14 Asia Banking Sector Outlook ... 18 Table: Banks' Bond Portfolios . 30 Table: Asia Commercial Banking Business Environment Ratings .. 31 Table: Comparison Of Loan/Deposit, Loan/Asset And Loan/GDP Ratios ........ 32 Table: Anticipated Developments In 2011 . 33 Table: Comparison Of Total Assets, Client Loans And Client Deposits, 2009-2010 (US$bn) ..... 34 Table: Comparison Of Per Capita Deposits, 2010 (US$) ..... 35 Table: Interbank Rates And Bond Yields, 2010-2011 .. 36 Philippines Banking Sector Outlook 37 Economic Outlook .. 41 Table: Philippines Economic Activity, 2008-2015 ....... 43 Company Profiles ... 44 Allied Banking Corporation ..... 44 Table: Key Statistics For Allied Banking Corporation, 2008-2009 (PHPmn) .. 45 Bank of the Philippine Islands . 46 Table: Stock Market Indicators 47 Table: Balance Sheet (PHPmn, unless stated) .... 47 Table: Balance Sheet (US$mn, unless stated) ..... 48 Table: Key Ratios (%) ..... 48 China Banking Corporation..... 49 Table: Stock Market Indicators 50 Table: Balance Sheet (PHPmn, unless stated) .... 50 Table: Balance Sheet (US$mn, unless stated) ..... 50 Table: Key Ratios (%) ..... 51 Banco de Oro Unibank ... 52 Table: Key Statistics For Banco de Oro Unibank, 2007-2008 (PHPmn) . 53 Development Bank of the Philippines ........ 54 Table: Key Statistics For Development Bank of the Philippines, 2007-2009 (PHPmn) ...... 55 Land Bank of the Philippines ... 56 Table: Key Statistics For Land Bank of the Philippines, 2008-2009 (PHPmn) . 57 Metropolitan Bank & Trust Company ........ 58 Table: Stock Market Indicators 59 Table: Balance Sheet (PHPmn, unless stated) .... 59 Table: Balance Sheet (US$mn, unless stated) ..... 59 Table: Key Ratios (%) ..... 60 Philippine National Bank 61 Table: Stock Market Indicators 62 Table: Balance Sheet (PHPmn, unless stated) .... 62 Table: Balance Sheet (US$mn, unless stated) ..... 62 Table: Key Ratios (%) ..... 63 United Coconut Planters Bank. 64 Table: Key Statistics For UCPB, 2005-2009 (PHPmn) ........ 65

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>> Get this Report Now by email! BMI Banking Sector Methodology .... 66 Commercial Banking Business Environment Rating .... 67 Table: Commercial Banking Business Environment Indicators And Rationale. 68 Table: Weighting Of Indicators ........ 69

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