The Best Commercial Banks in the Philippines

If you need to start saving money for the rainy days by opening a savings account, applying for a car loan, or applying for a credit card, all you have to do is go to a commercial bank. Commercial banks in the Philippines are typically where most Filipinos do most of their banking transactions. However, according to the Bangko Sentral ng Pilipinas (Central Bank of the Philippines), and as provided in Republic Act No. 879 (The General Banking Law of 2000) for official bank listing, 43 universal and commercial banks exist in the Philippines. This is already among 492 rural banks, 40 credit unions, and 6,267 quasi-banks.

So, what’s the difference between a universal and a commercial bank?

Universal Banks In The Philippines

Universal banks are financial service conglomerates that combine commercial banking with investment banking, development banking, and insurance. They can also engage in housing finance, factoring, mutual funds, and merchant banking. They are also called investment banks. As of 2018, these are the universal banks operating in the Philippines:

Land Bank of the Philippines
Australia and New Zealand Banking Group Limited
Deutsche Bank AG
ING Bank N.V.
Mizuho Bank, Ltd. – Manila Branch
Standard Chartered Bank
The Hongkong & Shanghai Banking Corporation
Asia United Bank Corporation
Rizal Commercial Banking Corporation
Security Bank Corporation
Union Bank of the Philippines
Al-Amanah Islamic Investment Bank of the Philippines
Development Bank of the Philippines
Bank of the Philippine Islands
BDO Unibank, Inc.
United Coconut Planters Bank
China Banking Corporation
East West Banking Corporation
Metropolitan Bank and Trust Company
Philippine National Bank
Philippine Trust Company

Commercial Banks In The Philippines

These are privately owned banks, and their essential services are savings accounts and lending money to earn interest. Other services include certificates of deposit (CD), checking accounts, and various personal, business, and mortgage loans. Ownership is primarily through shareholders. Commercial banks examples include:

Bank of Commerce
BDO Private Bank, Inc.
Philippine Bank of Communications
Philippine Veterans Bank
Robinsons Bank Corporation
CTBC Bank (Philippines) Corporation
Maybank Philippines, Incorporated
Bangkok Bank Public Co. Ltd.
Bank of America, N.A.
Bank of China Limited
Citibank, N.A.
JP Morgan Chase Bank, N.A.
KEB Hana Bank
Mega International Commercial Bank Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
First Commercial Bank, Ltd.
Cathay United Bank Co., Ltd.
Shinhan Bank – Manila Branch
Sumitomo Mitsui Banking Corporation
Industrial Bank of Korea
United Overseas Bank Ltd.
Hua Nan Commercial Bank, Ltd.

A few universal banks are listed as commercial banks. This is because the essential services of both types are the same.

Basic Products And Services

Whether you decide to bank with one or the other, universal and commercial banks in the Philippines, offer almost the same financial products and services to all their clients.

1. Deposit accounts – Commercial banks are well-known for basic deposit accounts such as savings, checking, and time deposit for all types of consumers.

2. Credit cards – Some people need credit cards to spend money through credit for goods and services without carrying so much cash.

3. Loan services – Consumers can apply for personal, mortgage, car, and business loans.

4. Wealth management – Commercial banks in the Philippines offer wealth management as an investment advisory service for specific financial services and needs.

The Top Commercial Banks In The Philippines

Banco de Oro (BDO Unibank, Inc.) – Total assets: P2,484,620,573,596.92

Established in January 1968 with the original but funny name of Acme Savings Bank, this thrift bank was acquired by the S.M. Group and renamed Banco de Oro Savings. In 1994, BDO became a commercial bank, eventually becoming a universal bank in 1996, hence its name Banco de Oro Universal Bank (BDO Unibank). BDO has since acquired or merged with ten savings or commercial banks. Over the years, this increased the bank’s total assets and the number of branches in the country.

Metropolitan Bank and Trust Company (Metrobank) – Total assets: P1,627,441,032,025.43

Metrobank is the country’s second-largest universal and commercial bank in total assets. It was founded in the early 1960s and relied more on its subsidiaries for more streamlined operations of specific business interests. Its subsidiaries include AXA Philippines for insurance and First Metro Asset Management (FAMI) for personal investments and financial management.

Bank of the Philippine Islands (BPI) – Total assets: P1,541,030,664,261.33

BPI was founded in 1851 and is the oldest bank in Southeast Asia. It is the country’s third-largest bank in terms of total assets. The Ayala Group of Companies owns the bank, with over 869 branches and 2,700 ATMs and CAMs nationwide. It deals with a diverse range of clients for services such as asset management for investors, retail lending for regular customers, and corporate lending for large companies needing additional capital.

Landbank of the Philippines – Total assets: P1,479,365,223,422.43

Landbank is an example of a commercial bank that the government financially funds. Instituted in 1963, the bank focuses on implementing services for farmers and fishermen such as land evaluation, compensation to private agricultural land owners, and collection of amortizations from farmer beneficiaries under the CARP (Comprehensive Agrarian Reform Program). It also offers credit assistance for fishermen and farmers.

Security Bank Corporation – Total assets: P796,957,013,257.16

Security Bank is one example of a commercial bank in the Philippines founded in 1951 after World War II as a completely Filipino-owned private commercial bank offering universal banking services. Its universal banking services are handled by its conglomerates, such as S.B. Cards, S.B. Equities, S.B. Capital Corporation, S.B. Forex, and S.B. Rental Corporation. In 2016, the Mitsubishi UFJ Bank (under the MUJ Financial Group, Inc.) became a strategic partner and significant shareholder of Security Bank.

Philippine National Bank (PNB) – Total assets: P758,919,001,298.77

PNB, founded in 1916, is one of the country’s oldest banks and the first universal bank in the Philippines. It was also the first bank in the Philippines in 1996 to reach the P100 billion mark in assets, though it now ranks sixth among universal and commercial banks in the country in total assets. Originally established as a government-owned corporation, the bank became privatized in 2007 and wholly owned by the Lucio Tan Group. It currently operates 670 branches nationwide.

Development Bank of the Philippines (DBP) – Total assets: P557,458,721,276.70

Now a quasi-government bank, DBP offers developmental banking, financing, management, and remittance services to the agricultural and industrial sectors. This includes environmental benefits, social services, community development, transportation and logistics, and SME enterprises.

Union Bank of the Philippines – Total assets: P488,052,235,582.21

This bank is one of the forerunners in the digital transformation of the country’s banking industry. Having digitized its banking services earlier than most, it became one of the top universal banks in the Philippines. It provides particular lending for financial technology (fintech) through its Application Programming Interface (API) portals.

Rizal Commercial Banking Corporation (RCBC) – P420,353,746,114.14

RCBC started as a development bank in the early 1960s and is now one of the top commercial banks in the Philippines. It is one of the largest private banks in the country in terms of total assets and branches (444), wholly owned by the Yuchengco Group of Companies (YGC).

Conclusion

If you are looking for a financial partner in the Philippines, look at the five previously mentioned banks. Each brings various features, from attractive interest rates to excellent customer service and security measures. Ultimately, you should carefully consider which bank best meets your individual needs. Pay attention to interest rates and fees, account features, customer service availability, reliability, convenience, and security protocols. With this guidance, you can find the perfect commercial bank in the Philippines for your specific banking needs. With a substantial selection of commercial banks available today across the country, you can find reliable and convenient banking solutions that serve your best interests every time.