The banking sector in the Philippines is vital in supporting the country’s economic growth. It includes various institutions ranging from universal and commercial banks to rural and thrift banks. Regulated by the Bangko Sentral ng Pilipinas (BSP), the banking system remains stable, as confirmed by recent Moody’s ratings. This stability is driven by the banks’ solid asset performance and liquidity. Below, we’ll take a closer look at the top banks in the Philippines and their contributions to the economy.
Structure of the Philippine Banking Industry
The banking industry in the Philippines is a diverse system comprising:
- Universal and commercial banks: Offering a wide range of financial services.
- Thrift banks: Focused on savings and investments.
- Rural banks: Supporting rural communities and economies.
- Credit unions: Operated by members, these institutions provide financial services to their communities.
- Non-banks: Financial institutions that offer bank-related services but do not hold full banking licenses.
Universal and commercial banks hold around 90% of the market share and dominate the banking sector. Meanwhile, rural and thrift banks play a significant role in supporting local economies, particularly in underserved areas.
Let’s explore the top banks in the Philippines and their services.
Top 10 Banks in the Philippines
1. BDO Unibank Inc.
Founded in 1968, BDO Unibank Inc. is the largest bank in the Philippines, both in terms of assets and network. Initially a thrift bank, it has grown into a full-service universal bank with an extensive range of products, including deposits, lending, credit cards, remittances, and investment services. BDO has an asset base of approximately US$48.98 billion, and a net profit of US$94.67 million.
Official Website: BDO Unibank Inc.
2. Metropolitan Bank and Trust Company (Metrobank)
Established in 1962, Metrobank is one of the premier banks in the Philippines. It offers a variety of banking services, including retail, corporate, and investment banking. With over 2,300 ATMs and 950 branches, it also has a strong international presence. Metrobank’s total assets amount to US$102.56 billion, with a net profit of US$1.02 billion.
Official Website: Metropolitan Bank and Trust Company (Metrobank)
3. Bank of the Philippine Islands (BPI)
BPI is the oldest bank in the Philippines and Southeast Asia, founded in 1851. The bank provides comprehensive financial services, including consumer banking, lending, insurance, and foreign exchange. With US$32.91 billion in assets and a US$425.2 million net profit, BPI remains a leading player in the financial sector.
Official Website: Bank of the Philippine Islands (BPI)
4. Land Bank of the Philippines
Founded in 1963, Land Bank is government-owned and is the largest credit institution supporting the agricultural sector. It operates primarily in rural areas, helping to promote development. Land Bank’s assets total US$30.83 billion. It is a key player in financing farmers, fishermen, and small businesses.
Official Website: Land Bank of the Philippines
5. Philippine National Bank (PNB)
PNB, established in 1916, is one of the largest private banks in the Philippines. Offering a wide range of financial products and services, PNB serves individuals, corporations, and government units. It has a vast network of branches and ATMs across the country.
Official Website: Philippine National Bank (PNB)
6. Security Bank Corporation
Founded in 1951, Security Bank Corporation is a privately owned universal bank, offering a full suite of services including retail, corporate, and financial products. Security Bank remains one of the most stable financial institutions in the Philippines, with assets of US$2.68 billion.
Official Website: Security Bank Corporation
7. China Banking Corporation
China Bank, founded in 1920, was the first privately owned commercial bank in the country. Today, it offers a wide range of services, including deposits, investments, loans, and cash management. The bank also has subsidiaries offering insurance and financial brokerage services.
Official Website: China Banking Corporation
8. Development Bank of the Philippines (DBP)
With US$10.27 billion in assets, DBP is the second-largest state-owned bank in the country. It specializes in providing financing for critical sectors such as infrastructure, logistics, SMEs, and environmental projects. It plays a significant role in national development by financing public and private enterprises.
Official Website: Development Bank of the Philippines (DBP)
9. Union Bank of the Philippines
UnionBank is known for its innovation, being the first to introduce online banking in the Philippines. It offers a variety of banking services, including the EON Cyber Account, the country’s first electronic savings account. UnionBank also provides cash management solutions for both local and multinational companies.
Official Website: Union Bank of the Philippines
10. Rizal Commercial Banking Corporation (RCBC)
RCBC is a development bank licensed by the Bangko Sentral ng Pilipinas for both commercial and investment banking. It operates through 448 branches and over 1,100 ATMs nationwide. With US$9.95 billion in assets, RCBC is one of the largest banks in the country, offering a full suite of financial products and services.
Official Website: Rizal Commercial Banking Corporation (RCBC)
Conclusion
The Philippine banking industry is dynamic, with universal and commercial banks holding the majority of the market share. However, rural, thrift, and development banks continue to play a vital role in providing financial services to underserved communities, supporting local economies, and fostering rural development. With the stability of the banking sector, as rated by Moody’s, the top banks in the Philippines are well-positioned to continue contributing to the country’s economic growth.