A regionalized assessment of risk and return of selected BSP accredited banks with microfinance functions in the Philippines

Added Title

Assessment of risk and return

Date of Publication

2012

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Junette Perez

Defense Panel Member

Vivian Eleazar

Neriza Casas

Abstract/Summary

This paper aims to give a regionalized assessment of profitability and volatility of the five regions in the Philippines with the most number of Bangko Sentral ng Pilipinas (BSP) accredited banks with microfinance functions. These banks have an annualized 10 year financial statements from Securities and Exchange Commission (SEC) period covered from 2002-2011. The regions covered are Region III, NCR, IV-A, V and VI. The study is divided into two analyses, which are the profitability and volatility. Three ratios were used to measure the profitability of the banks with microfinance functions: return on sales (ROS), return on equity (ROE) and return on assets (ROA). For the volatility analysis, the researchers used 5 different regression models. The independent variable used on five regression are the gross regional domestic product (GRDP) and the dependent variables for each are the five key financial variables. These are the net operating income (NOI), return on equity (ROE), profit margins (PM), change in total assets (% in TA) and loan portfolio at risk (PAR).

The researchers found out that all the regions were profitable but with varying degrees and no predictable trend. For volatility, GRDP is statistically significant to NOI, ROE, PM % in TA and PAR. GRDP has an impact to the overall fundamental value of the BSP accredited banks with microfinance functions in the Philippines.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU17150

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

117 leaves : illustrations (some color) ; 28 cm.

Keywords

Banks and banking--Philippines

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