Growth of PHL financial assets fastest in 6 years
GROSS FINANCIAL ASSETS in the Philippines posted the fastest growth in six years in 2023, driven mainly by securities, according to a report by Allianz SE.
“Gross financial assets increased by 13.2%, not only the fastest increase in six years, but also the fastest increase in the region (except for Cambodia), well ahead of China or India,” the German insurer said in a statement on Wednesday.
The Philippines’ gross financial assets were 327 billion euros, or 2,890 euros per capita and equivalent to 82.4% of economic output. Its net financial assets stood at 220 billion euros, or 1,940 euros per capita.
But Allianz noted that despite the strong growth, the Philippines still ranked low compared with other countries at 49th in net financial assets per capita out of 57.
The top five countries with the highest net financial assets per capita were the US (260,320 euros), Switzerland (255,440 euros), Denmark (172,200 euros), Singapore (171,930 euros) and Taiwan (148,750 euros).
The countries with the least net financial assets per capita were Pakistan (510 euros), Indonesia (940 euros), Argentina (940 euros), Cambodia (1,510 euros) and Vietnam (1,650 euros).
Allianz said real financial assets globally were well above the pre-pandemic level (28.9%). It added that countries’ financial asset growth was led by securities, which increased by 16%. Bank deposits and insurance and pensions grew by 9.1% and 9.8%, respectively.
However, it noted that insurance and pensions remained underweighted in Filipino households’ portfolios with a 7% share, compared with 57% for bank deposits.
“In real terms, the picture is a little less rosy,” Allianz said. “Adjusted for inflation, the increase in 2023 almost halved to 6.8%.”
Meanwhile, Philippine liabilities grew by 12.9%, resulting in a 27.1% growth in debt ratio in 2023, which Allianz said was at the lower end.
Allianz is active in the Philippines as Allianz PNB Life, a joint venture with Philippine National Bank (PNB).
Allianz bought 51% of PNB Life Insurance, Inc. in June 2016. — Aaron Michael C. Sy
