Six thrift banks control bulk of industry assets

MANILA, Philippines - The top six thrift banks in the Philippines account for 71.7 percent of total assets and half of the total branch network of the thrift bank sector as of September 2015.

The total assets of the 68 thrift banks amount to P954.346 billion, of which the top six banks account for P683.9 billion, or 71.7 percent of total.

The top six thrift banks are BPI Family Savings Bank with total assets of P243.2 billion or a market share of 25.5 percent; Philippine Savings Bank, P158.3 billion for a 16.6-percent market share; RCBC Savings Bank (RSB), P86.5 billion for 9.1 percent; China Bank Savings (CBS), P71.5 billion for 7.5 percent; Philippine Business Bank (PBB) P62.5 billion, for 6.6 percent; and City Savings Bank, P61.8 billion, for 6.5 percent.

BPI Family is a subsidiary of the Bank of the Philippine Islands, which in turn is part of Ayala Corp. PSBank is part of the Metropolitan Bank & Trust Co. (Metrobank), which is allied with GT Capital.

RSB is a subsidiary of the Rizal Commercial Banking Corp. (RCBC), which is part of the Yuchengco Group of Companies (YGC). CBS is a subsidiary of the China Banking Corp., a member of the SM Group.

PBB is part of the Zest-O Corp. of Amb. Alfredo M. Yao, while CitySavings is part of the Aboitiz Equity Ventures Inc., of which one of its key affiliates is Union Bank of the Philippines.

The Bangko Sentral ng Pilipinas (BSP) said thrift banks are engaged in accumulating savings of depositors and investing them.

They also provide short-term working capital and medium- and long-term financing to businesses engaged in agriculture, services, industry and housing, and diversified financial and allied services, and to their chosen markets and constituencies, especially small- and medium-enterprises and individuals.

In terms of gross loans, the top six lent out P501.1 billion or 75-percent of the total loans of the sector amounting to P668.46 billion.

BPI Family accounted for 28.5-percent market share to P190.5 billion, while PSBank raised P111.92 billion for a share worth 16.7 percent.

RSB took nine-percent market share, CBS settled for 7.4 percent, CitySavings 7.4 percent, and PBB 5.9 percent.

Once more, BPI Family was the leader this time as top deposit-taker with P213.7 billion or 27.9-percent market share of the total deposits raised by the sector worth P767.1 billion.

In fact, the top six players accounted for 74.4 percent of total.

PSBank grabbed 16.6 percent market share, RSB with 9.7 percent, CBS with 8.3 percent, PBB with 6.7 percent, and CitySavings with 5.3 percent.

The elite six accumulated P571.115 billion, equivalent to 74.4 percent of the thrift bank’s total of P767.1 billion.

In terms of the capital base, the combined top six raised a total of P83 billion, or 68.1 percent of the sector’s P121.8 billion.

BPI Family Savings reported a capital base of P24.68 billion, for a market share of 20.3 percent. PSBank raised P17.9 billion, or 14.7 percent of market.

A first time member of the elite thrift banks is PNB Savings Bank reporting a capital base of P11.1 billion, accounting for 9.1 percent of market.

PNB Savings is a subsidiary of the Philippine National Bank (PNB), the commercial bank of the Lucio Tan Group.

RSB took 7.2-percent market share, PBB clung to 6.9 percent share, and CitySavings for 6.5 percent.

Thrift banks operate a total branch network of 2,013 as of June 2015, or a fifth of the country’s banking system’s 10,528.

The top six account for half or 1,010 branches, this time with PSBank as the leader with 247 branches.

BPI Family for once settled for second best with 190 branches.

The field becomes tight as PBB operates 174 branches, CBS with 165, and RSB with 150. A distance sixth is CitySavings with 84.