Top Banks in the Philippines Based on Return on Equity

Top Philippine Banks Based on ROE

As an investor in bank stocks, certainly you want your bank to have a high Return on Equity (ROE) rate.  As investors know,  ROE represents a company’s net income in comparison with stockholders’ investments.  ROE = net income divided by stockholders’ equity.

But as a plain bank customer, do you want your bank to top bank rankings based on ROE?

Oftentimes we ask ourselves why banks give so little interest on our time deposits and then later we see them declaring super high levels of net income and ROE.

Based on Return on Equity, here are the top banks in the Philippines as of September 2010:

1 East West Banking Corp.  —  34.27 %
2 Standard Chartered Bank  —  23.09 %
3 Security Bank Corp.  —  22.98 %
4 Hongkong & Shanghai Banking Corp.  —  20.70 %
5 Land Bank of the Philippines  —  18.64 %
6 Bank of the Philippine Islands  —  17.65 %
7 Deutsche Bank  —  17.20 %
8 China Banking Corp.  —  16.61 %
9 BDO Private Bank  —  16.37 %
10 Union Bank of the Philippines  —  16.06 %
11 Citibank N.A.  —  15.70 %
12 Rizal Commercial Banking Corp.  —  15.63 %
13 United Coconut Planters Bank  —  15.63 %
14 Internationale Nederlanden Groep BK  —  15.12 %
15 Asia United Bank Corp.  —  15.02 %
16 Development Bank of the Philippines  —  14.49 %
17 Philippine Trust Co.  —  13.14 %
18 Banco de Oro Unibank  —  11.12 %
19 Philippine National Bank  —  10.89 %
20 Bank of Tokyo-Mitsubishi UFJ  —  9.83 %
21 Chinatrust Philippines  —  9.26 %
22 Philippine Veterans Bank  —  7.84 %
23 Korea Exchange Bank  —  7.81 %
24 Mega International Commercial Bank  —  7.48 %
25 Metropolitan Bank & Trust Co.  — 7.24 %
26 Allied Banking Corp. —  6.96 %
27 Bank of Commerce  —  5.25 %
28 JP Morgan Chase Bank N.A.  —  4.21 %
29 Royal Bank of Scotland Philippines  —  1.94 %
30 Mizuho Corporate Bank Manila  —  1.11 %
31 Bangkok Bank Public Co.  —  1.05 %
32 ANZ Banking Group  —  0.09 %
33 Bank of America N.A.  —  -0.02 %
34 Bank of China Manila  —  -1.47 %
35 Maybank Philippines  —  -1.85 %
36 Al-Amanah Islamic Bank of the Phil  —  -6.00 %
37 Philippine Bank of Communications  —  -11.92 %
38 Export and Industry Bank  —  -36.15 %

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It’s interesting to note that the banks in the list above — those with highest ROE — are not the banks with the highest deposits, assets or capital.

Look at Metrobank — it’s second in total deposits, second in total assets, and second in total capital as of Sep 2010, but it’s 25th in ROE. Does this mean Metrobank is not taking much from customers?

Based on Total Deposits:

1. Banco de Oro Unibank  —  693.903 billion pesos
2. Metropolitan Bank and Trust Co.  —  570.332
3. Bank of the Philippine Islands  —  494.465
4. Land Bank of the Philippines  —  398.668
5. Philippine National Bank  —  234.086
6. China Banking Corp.  —  189.121
7. Union Bank of the Philippines  —  184.719
8. Rizal Commercial Banking Corp.  —  172.048
9. Citibank NA  —  140.905
10. United Coconut Planters Bank  —  136.553

Related Articles:

Top Banks in the Philippines Based on Alexa Ranking

Top 10 Banks in the Philippines based on Assets, Deposits and Capital

List of Banks in the Philippines — Universal Banks, Commercial Banks

Top 27 Savings Banks in the Philippines — or Top 27 Thrift Banks

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