Here are the best financial companies in the Philippines to invest this 2023. They are the largest and most dominant publicly listed corporations in the financial sector.
Many people who have been investing in the stock market or planning to invest soon consider the large-cap stocks of the financial industry. After all, investing is about growing money, and money is the main business core of the financial empire.
In this article, we share the biggest publicly listed financial companies in the Philippines. Most of these firms are also included in the country’s benchmark, the PSE Index (PSEI), and among the best stocks in the Philippines to invest in long term.
Table of Contents:
What are Financial Companies?
Financial companies are businesses and institutions that provide financial products and services, including banking, insurance, investment, and digital payment system. The financial sector is very important in the lifeblood of an economy. It contributes to the growth and stability of the country.
Best Financial Companies in the Philippines in 2023
1. BDO Unibank, Inc. (BDO)
BDO is the No. 1 bank in the Philippines in terms of assets under management, deposits, loans, and capital. It is a banking segment of the SM group of companies, one of the country’s biggest and most successful conglomerates.
The biggest bank in the Philippines has over 1,500 operating branches nationwide. Last October, BDO has reported that their earnings are back to pre-pandemic levels. The stock is also back to its bullish trend as investors gain more confidence with BDO’s brighter outlook.
2. Bank of the Philippine Islands (BPI)
BPI is the second largest publicly-listed financial company in the Philippines, with over 491 billion market capitalization. BPI is the oldest bank in the Philippines. Founded in 1851, BPI is also the first bank in the Southeast Asian Region.
Why invest in BPI stock? BPI is the banking arm of the Ayala group of companies, one of the wealthiest firms in the country. BPI has a strong balance sheet and high liquidity ratios. If you like a generous dividend-paying stock, you can rely on BPI. The current dividend yield is 1.97%.
Furthermore, BPI has sustained its customer acquisition growth and focused on accelerating its digital transformation.
3. Metropolitan Bank & Trust Company (MBT)
Metrobank is among the top 3 banks in the Philippines. The bank was established in 1962 and had been providing financial services to large local and multinational firms, middle-market and SMEs, the retail sector, and high net-worth individuals even to this time.
The first and only Exchange-Traded Fund in the Philippines, FMETF, was launched by Metrobank Group. Metrobank is always one of the top investment companies in the Philippines for its various investment products. It also owns the most advanced trading platform in the country – First Metro Sec Pro.
4. Union Bank of the Philippines (UBP)
UnionBank was founded in 1968 as Union Savings and Mortgage Bank. Later in 1982, it became a commercial bank. Unionbank has been consistently recognized among Asia’s leading companies as one of the top universal banks in terms of profitability and efficiency.
Why invest in UnionBank stock? UnionBank is always the favorite bank of millennials. It became popular among the first to prioritize the next-gen banking innovations. Because of its digital transformation, UnionBank is now the best Digital Bank in the Philippines.
Among the top 8 banks in the country, UnionBank is the only “Digital Bank” licensed by the Bangko Sentral ng Pilipinas in 2021.
5. China Banking Corporation (CHIB)
China Bank was established in 1920 and opened on the Quintin Paredes Street in Binondo, the world’s oldest China Town. Trusted by Chinese merchants and prominent businessmen, China Bank remains one of the Philippines’ most respected robust financial companies.
The bank’s 2022 net income increased by 27% YOY and brought earnings P19.1 billion, with higher Return on Equity of 15.1%.
Like BDO, China Bank is also a banking business segment of the SM Group. A financial firm that is backed by a giant conglomerate in the Philippines has abundant benefits to prosper.
6. Security Bank Corporation (SECB)
Security Bank was established in 1951, was the first private Filipino-controlled bank of the post-World War II. It is now among the leading universal banks in the Philippines. Security bank’s core businesses are wholesale banking, financial markets, and retail banking.
Security Bank has 316 branches across the Philippines. SECB stock also has a Buy rating, and our estimated target price is 140. We believe most banks will benefit from the easing business and travel restrictions.
7. Philippine National Bank (PNB)
PNB is the first universal bank in the Philippines. It was established in 1916 and is now a powerhouse of excellent banking in the Philippines. PNB is among the largest privately-owned commercial banks in the country today.
It is the banking firm of the Lucio Tan Group of Companies (LT Group). PNB has the widest international reach among the other top banks in the Philippines, with more than 71 branches, representative offices, remittance centers, and subsidiaries across Asia, Europe, the Middle East, and North America.
Philippine National Bank’s net income skyrocketed in the first half of 2022. It reported a net income of 11.1 billion. We think that PNB will maintain its strong position and remain among the Philippines’ leading banks and the financial sector.
8. East West Banking Corporation (EW)
EastWest Bank is the youngest best bank in the Philippines. It was established in 1994 yet is already among the largest banks in the country in terms of market capitalization. It is one of the fastest-growing banks in the Philippines and one of the top 10 biggest privately owned banks in terms of assets.
Despite inflation, EastWest Bank reported a surge of 16.6% net income in 3Q 2022. Their assets, deposits, and capital also grew amid the economic challenges. We like growing companies, and EastWest is poised to continue this momentum in this decade.
Biggest Financial Companies in the Philippines (By Market Cap)
- BDO Unibank (P653 billion)
- BPI (P491 billion)
- Metrobank (P268 billion)
- Union Bank (P208 billion)
- China Bank (P84 billion)
- Security Bank (P74 billion)
- PNB (P29.9 billion)
- East West Bank (P16 billion)
Data as of March 13, 2023
Disclaimer: The article is for information purposes only and should not be taken as professional investment advice or endorsement of a particular asset. Trading in the stock market carries risks. Always invest with due diligence.