Philippine Other Financial Corporations (OFCs) Witness Nine Percent Growth in First Quarter 2021

Strategic Insights -

The growth of Other Financial Corporations (OFCs) in the Philippines reached P6.815 trillion as of the end of the first quarter 2021, marking a nine percent increase from the previous year's figure of P6.251 trillion. This surge is attributed to higher claims from the private sector and depository corporations (DCs). The Bangko Sentral ng Pilipinas (BSP) attributes the growth in OFCs to increased investments in equity and debt securities issued by private nonfinancial corporations, as well as higher holdings of bank-issued debt securities and increased deposits.

Key Takeaways:

  • The growth of OFCs in the Philippines reached P6.815 trillion as of the end of the first quarter 2021, a nine percent increase from the previous year's figure of P6.251 trillion.
  • Claims from the private sector increased to P3.493 trillion during the period, up 12.8 percent from P3.097 trillion last year, resulting in higher OFC investments in equity and debt securities issued by private nonfinancial corporations.
  • Claims on DCs also increased 9.5 percent in the first quarter to P1.748 trillion from P1.596 trillion, primarily due to increased holdings of bank-issued debt securities and deposits.
  • The OFCs' net foreign assets went up by 42.6 percent to P156.2 billion in the first quarter from P109.5 billion same time in 2020, driven by increased investments in debt and equity securities, and insurance technical reserves.
  • The OFCs' assets were funded primarily by issuances of shares and other equity, which increased its other liabilities by 9.6 percent to P6.971 trillion end-March from P6.361 trillion same time in 2020.
  • Liabilities to the central government decreased, while debt securities holdings increased, causing claims on the central government to rise by 0.8 percent to P1.556 trillion from P1.543 trillion.

Statistics:

  • P6.815 trillion: The total growth of OFCs in the Philippines as of the end of the first quarter 2021.
  • 9.0%: The percentage growth of OFCs from the previous year's figure of P6.251 trillion.
  • P3.493 trillion: The claims from the private sector in the first quarter, up 12.8 percent from P3.097 trillion last year.
  • 12.8%: The percentage increase in claims from the private sector from P3.097 trillion last year.
  • P1.748 trillion: The claims on DCs in the first quarter, up 9.5 percent from P1.596 trillion.
  • 9.5%: The percentage increase in claims on DCs from P1.596 trillion.
  • P156.2 billion: The OFCs' net foreign assets in the first quarter, up 42.6 percent from P109.5 billion same time in 2020.
  • 42.6%: The percentage increase in the OFCs' net foreign assets from P109.5 billion same time in 2020.
  • P6.971 trillion: The total liabilities of OFCs end-March, up 9.6 percent from P6.361 trillion same time in 2020.
  • 9.6%: The percentage increase in liabilities of OFCs from P6.361 trillion same time in 2020.
  • P1.556 trillion: The total claims on the central government in the first quarter, up 0.8 percent from P1.543 trillion.
  • 0.8%: The percentage increase in claims on the central government from P1.543 trillion.

Sources:

  • The Bangko Sentral ng Pilipinas (BSP)