Investment Banking in Philippines

Investment Banking Tutorials

Overview of Investment Banking in Philippines

In the Philippines, the banking sector is pretty wide and many banking and non-banking institutions offer a whole gamut of services.

There are 36 commercial banks, 492 rural banks, 57 thrift banks, 40 credit unions, and around 6000 plus non-banking institutions in the Philippines.
To control and direct these banks, the Bangko Sentral ng Philipinas was established. In the month of July 1993, this central authority was founded. It was created as per the Philippine Constitution, 1987 and also as per the New Central Bank Act, 1993.
The Bangko Sentral ng Philipinas was established to regulate all the banks and also help these banks informing the right policies.
As per the Moody’s Analytics, the Philippines’ banking sector is looking quite positive. The most important factor for which the Moody’s Analytics have been very positive about the banking sector of the Philippines is the way the central bank of Philippines has curbed the effect of inflation over the years.

Services Offered by Investment Banks in Philippines

Investment banking in the Philippines offers a whole range of services to their eminent customers.

Let’s look at the most significant services these investment banks provide –

M&A Advisory

For a company that looks to grow, a merger or acquisition is an opportunity to expand its horizon. The investment banking in Philippines offers that room and assistance for any corporate to expand through public takeovers, cross-border deals or joint ventures at an international level.

Debts & Equity Capital Markets Financing

Investors don’t always know which trends can help them make more money or prevent them from making more profits. Investment banks in Philippines understand the intricacies of the debt and capital markets. They help their clients spot the trends, help them understand the nitty-gritty of global market, and also let them make smart moves around their investments.

Bespoke Financing

Through bespoke financing, the investment banks in Philippines help their clients understand the need of right financing. The company may look for structured financing, leveraged, or specialized financing.

Investment Research

This is another most significant service offered by investment banks in Philippines. In doing the research for their clients’ investment banks in Philippines use quantitative research, statistical modeling, and data science.

Top Investment Banks in the Philippines

Here is the list of top investment banks in the Philippines –

ABCapitalOnline.com, Inc.
Asian Alliance Investment Corporation
Asian Focus Group Inc.
BPI Capital Corporation
Eastgate Capital Partners, Inc.
First Abacus Financial Holdings Corporation
First Metro Investment Corporation
FSG Capital Inc.
Insular Investment & Trust Corporation
Investment & Capital Corporation of the Philippines
Mabuhay Capital Corporation, Inc.
Medco Holdings, Incorporated
Navarro Amper & Co
PNB Capital and Investment Corporation
Punongbayan & Araullo
SB Capital Investment Corporation
Unioil Resources & Holdings Company, Inc

Recruitment Process of Investment Banking in Philippines

The investment banking career is quite lucrative for any finance professional. Unlike the other investment banks in various countries, a lot of emphases is given on work-life balance. The best way to approach investment banking career in the Philippines is to go for an internship with the top investment banks in Philippines and then learn your way up to becoming an associate.

Few things you need to look for while applying for an investment banking career are –

How the investment banking firm approaches to experience and how much professional growth you may get while pursuing your career in that particular investment bank.
Whether there are any paid training offered or not.
Whether the investment bank provides any life insurance, health benefits, and retirement plan.
Whether there is an option for paternity, maternity leaves available if required in near future.

The most important thing to consider is how well you will be able to connect your career growth with your family goals. Since in Philippines, one of the most important aspects is family, having a good work-life balance is what every professional desire.

Culture in Investment Banks in Philippines

In investment banking career, culture plays a big role. That’s why in the Philippines, the investment banking career is approached in a completely different way. Since most of the banks in Philippines are foreign banks, in investment banks, one would see a mix and match of a foreign culture. The work ethic is very strong and investment banking professionals work hard, around 80 hours to 100 hours.

Having said that the investment banking professionals also value heritage and tradition. That’s why balancing both the work and the spending time with family is considered most important.

Investment Banks in Philippines – Salaries

Philippines is famous for getting cheap labors. And the most unfortunate thing about investment banking career in the Philippines is that the compensation of an investment banking professional is way too low.
The median compensation of an associate in an investment banking firm is PHP 353,749. While the investment banking professionals are raking in millions in the US and in Europe, the investment banking professionals in the Philippines are earning around the US $6000 in a year for under 10 years experience.
If you work your way up and can become a partner in a top-notch investment bank, you may earn a lot more though.

Here’s a chart created by PayScale that might be helpful –

source: payscale.com

Investment Banking Exit Opportunities in Philippines

It has been seen that not many stays in an investment banking career for more than 10 years. Then what are the options that these finance professionals choose? The possible options are corporate finance career, banking career in a commercial bank, or starting one’s own business. Since banking in the Philippines is huge and well-controlled, commercial banking is always a viable option as an exit route.

Overview of Investment Banking in Philippines