Overview of Investment Banking in the 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 Moody’s Analytics, the Philippines’ banking sector is looking quite positive. The most important factor for which Moody’s Analytics has 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 the 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 –
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Source: Investment Banking in Philippines (wallstreetmojo.com)
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 the Philippines offers that room and assistance for any corporate to expand through public takeovers, cross-border deals or joint venturesJoint VenturesA joint venture is a commercial arrangement between two or more parties in which the parties pool their assets with the goal of performing a specific task, and each party has joint ownership of the entity and is accountable for the costs, losses, or profits that arise out of the venture.read more 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 the Philippines understand the intricacies of the debt and capital marketsCapital MarketsA capital market is a place where buyers and sellers interact and trade financial securities such as debentures, stocks, debt instruments, bonds, and derivative instruments such as futures, options, swaps, and exchange-traded funds (ETFs). There are two kinds of markets: primary markets and secondary markets.read more. They help their clients spot the trends, help them understand the nitty-gritty of the global market, and also let them make smart moves around their investments.
Bespoke Financing
Through bespoke financing, the investment banks in the 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 the 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 the 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 is 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 the 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 the Philippines, one of the most important aspects is family, having a good work-life balance is what every professional desires.
Culture in Investment Banks in Philippines
In an 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 the 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 spending time with family is considered most important.
Investment Banks in Philippines – Salaries
- The Philippines is famous for getting cheap labor. 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 of 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 the Philippines
It has been seen that not many stay in an investment banking careerInvestment Banking CareerAn investment banking personnel is a motivated professional who aims to help their clients reach their financial goals and objectives. The top four investment banking careers are - Analyst, Associate, Vice president, Managing director. read more for more than 10 years. Then what are the options that these finance professionals choose? The possible options are corporate finance careerCorporate Finance CareerFinancial analyst, cost analyst, credit manager, cash manager, and benefits officer are some of the most popular career paths in Corporate Finance.read more, careers in commercial bankingCareers In Commercial BankingThe risk parity approach is a method of portfolio creation, the amount invested in various assets in the portfolio is determined based on the quantum of risk that security brings to the portfolio to ensure that each asset contributes equally to the portfolio's overall risk.read more, or starting one’s own business. Since banking in the Philippines is huge and well-controlled, commercial bankingCommercial BankingA commercial bank refers to a financial institution that provides various financial solutions to the individual customers or small business clients. It facilitates bank deposits, locker service, loans, checking accounts, and different financial products like savings accounts, bank overdrafts, and certificates of deposits.read more is always a viable option as an exit route.
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This has been a guide to Investment Banking in the Philippines. Here we discuss the Investment banking market in the Philippines, Top Investment Banks in the Philippines along their culture, recruitment process, salaries offered, and exit opportunities. You may learn more about Investment Banking from the following articles –
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