Banking
From The Report: The Philippines 2012
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The Philippines’ well-capitalised banks enjoyed strong profit growth in 2011, and excess liquidity is the main worry at this point. Much-hyped PPP projects could be a fillip for the sector, providing an avenue for lending. A number of factors point to consolidation in the sector, include the labour intensiveness of Philippines banking, rising capital requirements, and merger incentives from the central bank. Foreign acquisitions are also possible, with the Malaysian lender CIMB a candidate to acquire one or more local banks.
This section includes interviews with Amando M Tetangco Jr, Governor, Bangko Sentral ng Pilipinas (BSP); Aurelio Montinola, President, Bank of the Philippine Islands; and Florence Tarriela, Chairperson, Philippine National Bank (PNB).

Articles from this Chapter

Overview

Bigger and stronger: Lending increases while the regulator ensures that the system will continue to remain stable
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Having been largely unaffected by the global economic turmoil of the second half of 2011, banks in the Philippines are highly liquid and adequately capitalised. Performance indicators for 2011 have shown steady asset expansion, double-digit credit growth, above-standard solvency ratios and healthy bottom lines. Underscoring the resilience of the local banking sector, Philippine banks posted a 28% year-on-year (y-o-y) rise in profitability during the first six months of 2011 to P51.9bn ($1.2bn),…

Analysis

A watchful eye: New regulations from the central bank
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The Bangko Sentral ng Pilipinas (BSP), the country’s central bank, announced in 2011 it had approved revised guidelines on financial reporting and was modifying restrictions on the number of branches that can serve certain areas. BSP officials also indicated in late 2011 the regulator planned to accelerate the implementation of Basel III standards for the country’s banks, a move that could further bolster local banking stability. BASEL III: In December 2011 Johnny Noe Ravalo, the managing…

Interview

OBG talks to Aurelio Montinola, President, Bank of the Philippine Islands
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Interview:Aurelio Montinola What developments are taking place in the market for business loans and other financing? AWRELIO MONTINOLA: With seemingly intact economic fundamentals and ample market liquidity, all signs currently point toward the continued growth in lending in the short and medium term. Moving forward, as GDP continues to rise at a steady pace, albeit perhaps not as quickly as initially forecast, the industry is anticipating double-digit lending growth over the next few years. Historically,…

Analysis

At the top: Profiles of the six biggest banks
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While there may be more than 700 banks in the Philippines, the six largest account for more than 60% of total assets. Despite the fact that many lenders around the world have taken a hit due to the global economic slowdown, most of the banks in the Philippines are doing quite well, posting good numbers in 2011. Moreover, the country’s banks are stable, with capital adequacy ratios (CARs) well above the required minimum, and plentiful liquidity. As ranked by assets, the following are currently the…

Interview

OBG talks to Florence Tarriela, Chairperson, Philippine National Bank (PNB)
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Interview:Florence Tarriela How would you describe the current competitive landscape for retail banking? What is the outlook for consolidation in the sector? FLORENCE TARRIELA: The retail banking business in the Philippines remains very competitive, with banks focusing on the expansion of their customer base, geographic reach and technology-based banking services. To improve customer support across a variety of diverse segments, banks continue to provide a wide range of innovative and customer-focused…