Philippines Financial Services

In what ways has the liberalisation of the banking sector altered the landscape for local banks?

THE COMPANY: Aboitiz Equity Ventures (AEV) is a Philippine conglomerate that is involved in power, banking, food manufacturing and real estate. It is one of the largest conglomerates in the country with total assets of P293.7bn ($6.5bn), placing it among the top-25 largest companies on the...

The banking sector is in the midst of a strong growth phase as economic development and use of banking services has been extended to traditionally under-banked areas in the Philippines. Tight fiscal policy has led to lower inflation and growing willingness to hold savings in bank deposits, while the number of people with enough income to use...

THE COMPANY: SM Prime Holdings (SMPH) is the Philippines' largest mall operator. Publicly listed since 1994, SMPH owns and runs world-class malls all over the country, providing millions of square metres of floor area for fully integrated shopping, dining, and entertainment experiences.

As banks expand credit in the domestic economy, the sector is enjoying a period of rapid catch-up growth. A positive feedback loop is at work in which banks are increasingly driving economic growth, supported by inflows from foreign investment and Filipinos working abroad, while growing trust in the banking system is drawing greater volumes of...

As domestic liquidity surged and foreign investors gradually returned after a general flight from emerging markets in 2013, Philippine capital markets were riding a wave of optimism in 2014 and early 2015. The Philippine Stock Exchange’s (PSE) blue-chip index, the PSEI, hit a fresh all-time high in January 2015 and was continuing to rise in...