2017 Annual Survey of Philippine Business and Industry (ASPBI) - Financial and Insurance Activities Sector For All Establishments: Final Results

Reference Number: 

2019-345

Release Date: 

Monday, December 2, 2019

TABLE A Comparative Summary Statistics for Financial and Insurance Activities for All Establishments: Philippines, 2017 and 2016

Table A

Other financial service activities, except insurance and pension funding industry leads the sector in terms of number of establishments

The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 6,990 establishments in the formal sector of the economy were engaged in financial and insurance activities in 2017. This represents a decrease of 5.7 percent from the previous year’s report of 7,416 establishments.

Among the industry groups, other financial service activities, except insurance and pension funding activities recorded the majority of establishments, which comprised 5,249 or 75.1 percent of the total. This was followed by monetary intermediation with 636 establishments or 9.1 percent.

Figure 1 shows the percentage distribution of the number of establishments for all financial and insurance establishments by industry group in 2017.

Figure 1

Monetary intermediation industry employs the highest number of workers

The total employment for the sector was recorded at 344,197 workers in 2017, a decrease of 22.4 percent from the 443,617 workers in 2016. Of the total employment, 99.7 percent were paid employees while the rest were working owners and unpaid workers.

Among the industry groups, monetary intermediation employed more than half of the total number of workers (173,579 or 50.4%). This was followed by other financial service activities, except insurance and pension funding activities with 121,839 workers or 35.4 percent.

Figure 2 displays the distribution of employment for all financial and insurance establishments by industry group in 2017.

Figure 2

The sector recorded an average number of 49 workers per establishment in 2017, lower by 18.3 percent than the average of 60 workers per establishment in 2016. Monetary intermediation posted the highest average of 273 workers per establishment. Conversely, activities auxiliary to financial service, except insurance and pension funding reported the lowest average of 20 workers per establishment.

Employees in activities of holding companies industry are the highest paid

The total compensation paid by the sector amounted to PHP202.0 billion in 2017, which translates to an average annual compensation of PHP588.6 thousand per employee. Compared with the average annual pay of PHP486.8 thousand per employee in 2016, the average pay in 2017 increased by 20.9 percent.

Employees in activities of holding companies were the highest paid, receiving an average annual compensation of PHP1,835.8 thousand per employee. Trusts, funds and other financial vehicles employees followed with an average annual compensation of PHP1,194.2 thousand per employee. However, those employed in other financial service activities, except insurance and pension funding activities received the lowest average annual pay of PHP314.7 thousand per employee.

Figure 3 illustrates the average annual compensation of employees for the top five industries for all financial and insurance establishments by industry group in 2017.

Figure 3

Monetary intermediation industry contributes the biggest share to total income and expense

The total income realized by the sector reached PHP1.65 trillion in 2017. This figure increased by 3.2 percent from the PHP1.60 trillion income in 2016.

Among the industry groups, monetary intermediation earned the highest income of   PHP682.0 billion or 41.3 percent of the total income. Activities auxiliary to financial services, except insurance and pension funding, on the other hand, generated the lowest income of PHP12.7 billion or 0.8 percent.

The total expense incurred by the sector amounted to PHP1.03 trillion in 2017. This figure was lower by 1.5 percent from the reported total expense of PHP1.05 trillion in 2016. Being the major contributor to total income, monetary intermediation also had the highest proportion to total expense worth PHP494.5 billion or 47.9 percent.

Figure 4 shows the top five industry groups in terms of income and expense for all establishments of the sector in 2017.

Figure 4

The income per peso expense generated by all establishments of the sector stood at 1.60 in 2017, slightly higher by 5.3 percent than the income per peso expense of 1.52 in 2016. Trusts, funds and other financial vehicles recorded the highest income per peso expense of 3.18, nearly twice than that of the sector’s average.

Monetary intermediation generates the highest value added

The total value added generated by all establishments of the sector was estimated at PHP1,005.4 billion in 2017. This represents an increase of 5.4 percent from the PHP954.2 billion value added in 2016.

The top three contributors to the total value added of the sector were the following industries:

  •  Monetary intermediation, PHP385.4 billion (38.3%),
  •  Activities of holding companies, PHP205.4 billion (20.4%), and
  •  Other financial service activities, except insurance and pension funding activities, PHP167.1 billion (16.6%).

Labor productivity, which is the ratio of value added to total employment, was estimated at PHP2,921.0 thousand per worker in 2017. This represents an increase of 35.8 percent from the PHP2,151.0 thousand per worker in 2016.  Among the industries, activities of holding companies led the sector with labor productivity of PHP33.2 million per worker. On the other hand, activities auxiliary to financial service, except insurance and pension funding reported the lowest labor productivity of PHP975.1 thousand per worker.

Figure 5 presents the labor productivity of the top five industries for all financial and insurance establishments by industry group in 2017.

Figure 5

Gross additions to tangible fixed assets reaches PHP24.3 billion

Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all establishments of the sector reached PHP24.3 billion in 2017. This figure increased by 65.0 percent from the PHP14.7 billion gross additions to tangible fixed assets in 2016.

Monetary intermediation posted the highest gross addition to tangible fixed assets of  PHP16.1 billion or 66.2 percent of the total. Trusts, funds and other financial vehicles, on the other hand, reported the least which amounted to PHP152.9 million.

Total subsidies received from the government amounts to PHP10.6 billion

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry. The total subsidies received by the sector from the government amounted to PHP10.6 billion in 2017 with other financial service activities, except insurance and pension funding activities receiving the highest at PHP7.5 billion or 71.3 percent of the total.

 

(Sgd.) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Financial and Insurance Activities (Sector K).

The ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2017.

The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15  November 2017.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.

Data are presented by industry group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national level.

Legal Authority

The conduct of the 2017 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013,which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2017 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

  •  Agriculture, Forestry and Fishing (A)
  •  Mining and Quarrying (B)
  •  Manufacturing (C)
  •  Electricity, Gas, Steam, and Air Conditioning Supply (D)
  •  Water Supply; Sewerage, Waste Management and Remediation Activities (E)
  •  Construction (F)
  •  Wholesale and Retail Trade;Repair of  Motor Vehicles and Motorcycles (G)
  •  Transportation and Storage (H)
  •  Accommodation and Food Service Activities (I)
  •  Information and Communication (J)
  •  Financial and Insurance Activities (K)
  •  Real Estate Activities (L)
  •  Professional, Scientific and Technical Activities (M)
  •  Administrative and Support Service Activities (N)
  •  Education (P)
  •  Human Health and Social Work Activities (Q)
  •  Arts, Entertainment and Recreation (R)
  •  Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

  •  Corporations and partnership
  •  Cooperatives and foundations
  •  Single proprietorship with employment of 10 and over
  •  Single proprietorships with branches

Hence, the 2017 ASPBI covered only the following economic units:

  •  All establishments with total employment (TE) of 10 or more, and;
  •  All establishments with TE of less than 10, except those establishments with Legal Organization = 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).

Frame of Establishments

The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.

Unit of Enumeration

The unit of enumeration for the 2017 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.

Taxonomy of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization.  An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.

Industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue.  The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its TE as of a specific date. TE refers to the total number of persons who work in or for the establishment.

This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.

Geographic Classification refers to the grouping of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The PSGC as of 31 December 2017 was used for the 2017 ASPBI.

Methodology

Sampling Design

The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

The estimate of the total of a characteristic Formulafor the non-certainty employmentstratum TE less than 20 in the sth industry domain was

Formula

where:

  s         denotes the non-certainty employment strata in TE of less than 20
  Xsj    = value of the jth establishment in non-certainty employment stratum in TE of  less than 20 in Sth industry domain
        = 1,2,3..., ns establishments
  Wsj   = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

Formula

Ns   =  total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns   =   number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

b. Certainty Stratum

The total of a characteristic (Xc)  for the certainty employment stratum in the Cth industry domain was

Formula

where:

c         denotes the certainty employment strata in TE of less than 20 in the cth industry
xcj   =  value of the jth establishment in the certainty employment strata in TE of less of  than 20 in the cth industry domain
j      =  1,2,3,..., mc establishments
mc  =  number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

c. Total Estimate for TE of Less Than 20

For all sections except B and C, national level estimates of the total of a characteristic  for the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

Formula

where d denotes the industry domain.

Estimation Procedure for Establishments with TE of 20 and Over

a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
Sections A, C, E,F, G, H, I, J, K, L, M, N, P, Q, R and S.

The estimate of the total of a characteristic Formulafor the non-certainty employment strata in an industry domain in each region,

Formula

where:

s           denotes the non-certainty employment strata in TE of 20 and over
p       =  1, 2,...,18  regions (geographic domains)
xspj   =  value of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
j        =  1, 2, 3,…,nsp establishments
Wspj  =  weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

Formula

Nsp  = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCCs and with  TE 100 and over)

The estimate of the total of a characteristic Formulafor the certainty employment stratum in an industry domain in each region,

Formula

where:

           denotes the certainty employment strata in TE of 20 and over
p        =  1, 2,..., 17 regions (geographic domains)
xcpj    =  value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain within each region
j         =  1, 2, 3, …,mcp establishments
mcp   =  number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

c. Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic Formulafor the industry domain in each region (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

Formula

Where dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates Formulafor the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

Formula

Thus, the adjusted weight (W’spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Formula

where:

Nsp     = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)
n’sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

Response Rate

Response rate for all financial and insurance activities establishments was 92.9 percent (1,104 out of 1,122 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 53 establishments responded online.

Reports of the remaining non-reporting establishments were taken from financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment’s report, out-of-scope, and out of business in 2017 were not included in the generation of statistical tables.

Limitation of Data

The survey covered only the formal sector of the economy.

Concepts and Definitions of Terms

Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

E-commerce is the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and   e-mails.

Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.

Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Expense is the cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Income or Revenue is the cash received and receivables for goods/products andby-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

Inventories are the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

Total employment is the number of persons who worked in for the establishment as of 15 November 2017.

Value added is gross output less intermediate input. Computation of gross output for financial and insurance activities sector varies per industry as presented below:

For PSIC K641, K649 is equal to the sum of net interest income (interest income – interest expense); value of industrial services done for others; value of non-industrial services done for others less rent income from land; service charges; dividend income; commission and fees earned; foreign exchange gains; other income; capital expenditures produced on own account.

For PSIC K651, K652, K6623 is equal to the sum of net premiums earned (insurance premium- insurance claims paid); value of industrial services done for others; value of non-industrial services done for others less rent income from land; dividend income; commission and fees earned; other income; capital expenditures produced on own account.

For PSIC K66130 is equal to the sum of foreign exchange gains; value of industrial services done for others; value of non-industrial services done for others less rent income from land; commission and fees earned; other income; capital expenditures produced on own account.

For PSIC K642 is equal to the sum of dividend income; value of industrial services done for others; value of non-industrial services done for other less rent income from land; commission and fees earned; other income; capital expenditures produced on own account.

For PSIC K643, K66210, K66220, K66290, K66300, K661 except K66130 is equal to the sum of commission and fees earned; value of non-industrial services done for others; other income; capital expenditures produced on own account.

Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others less rent expense for land; research and development expense; environmental protection expense; royalty fee; franchise fee; foreign exchange losses and other expense.


See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.

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