Industry conditions
The banking industry in the Philippines is composed of universal banks, commercial banks, savings banks, and mortgage banks, private development banks, stock savings and loan associations, rural banks, and micro-finance banks. At end-2005, the commercial banking sector consisted of 42 commercial banks, of which 20 are private domestic banks, 18 are branches of foreign banks and three are government-controlled banks. Of the 42 commercial banks, 18 are universal banks, of which three are foreign bank branches.
In terms of structure, the top six banks account for more than 53% of the total assets of the whole commercial banking system. Increased competition in the industry has exerted pressure on margins with both the domestic and foreign banks competing for the same markets, from the corporate side to the consumer finance side.
Equitable PCI Bank enjoys many advantages as the third largest bank in the Philippines. The Bank has had a long history of financial strength and stability and holds leading positions in key business segments. It has a strong position in the middle market and in the corporate market. It enjoys a large presence, wide customer base, and extensive distribution network. The Bank has a base of diversified well-established financial services businesses, which further bolster its position. In credit cards, Equitable Card Network dominates the local credit card industry as merchant acquirer, and third party processor. This provides good scope for the Bank to increase its retail lending. The Bank's remittance arm, Express Padala, is a pioneer in the local remittance business possessing more than 20 years of experience. PCI Leasing and Finance is one of the most profitable finance companies with a high capital base and wide reach ...