Other monetary intermediation industry dominates the sector
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Preliminary results of the 2009 ASPBI showed that the Philippines had a total of 651 establishments with Total Employment of 20 and over engaged in Financial Intermediation. As shown in Figure 1, Other monetary intermediation registered the highest, with 38.4 percent of the total. Non-bank financial intermediation, not elsewhere classified (n.e.c.), ranked second with 19.0 percent and Insurance & pension funding, except compulsory social security, third with 15.1 percent. However, Pawnshop operations recorded the least number of establishments with one percent.
More than half of the establishments are located in the National Capital Region (NCR)
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At the regional level, 57.1 percent of the establishments were situated in the NCR. CALABARZON placed far second with 6.8 percent, followed by Central Luzon with 5.2 percent. The Cordillera Administrative Region (CAR) had the least number of Financial Intermediation establishments with less than one percent.
Other monetary intermediation establishments employ the biggest number of workers
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Financial Intermediation establishments generated jobs for 157,021 persons in 2009. Majority (99.7%) were paid employees while the remaining 0.2 percent were unpaid employees.
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Other monetary intermediation, having the highest number of establishments, also employed the most number of workers with 114,035 (72.6%). Insurance & pension funding, except compulsory social security, ranked far second, with 15,741 employees (10.0%). The least number of employees were employed by Pawnshop operations. (See Fig.2)
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NCR was the top employer among regions with 135,536 employees (86.3%). This was far followed by CALABARZON with 3,887 (2.5%). CAR registered the least, with only 156 employees.
Other monetary intermediation establishments pay the highest compensation
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Aggregate compensation paid by Financial Intermediation establishments amounted to PhP79.8 billion, an equivalent of PhP508.9 thousands, average annual compensation. Of the total, PhP70.9 billion (88.8%) comprised the gross salaries and wages, PhP5.4 billion (6.7%) were separation, retirement or terminal pay, gratuities and others and the remaining PhP3.5 billion (4.4%) were the employer�s contribution to SSS/GSIS and the like.
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Industry-wise, Other monetary intermediation paid the highest compensation to its employees amounting to PhP59.7 billion or 77.3 percent of the total. This was far followed by Insurance & pension funding, except compulsory social security which paid PhP7.8 billion (9.8%).
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By region, NCR registered the highest labor payments which amounted to PhP75.8 billion (95.1%) of the total compensation. CALABARZON, which paid around PhP732.7 million, came next. CAR paid the least to its employees with only PhP28.5 million.
Activities auxiliary to insurance and pension funding industry employees earns the highest
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Employees in Activities auxiliary to insurance and pension funding establishments were the highest earners in 2009 with an average annual compensation of PhP710, 532. Workers in Non-bank financial intermediation, n.e.c. establishments followed next with PhP700,373. Pawnshop operations employees recorded the least average annual compensation of PhP111,114. (See Fig.3)
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By region, workers based in the NCR received the highest average annual compensation of PhP560,266 while employees from Region IX (Zamboanga Peninsula) received the least with only PhP129,102.
Total revenue amounts to PhP706.0 billion; Other monetary intermediation industry earns the largest
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In 2009, the gross revenue generated by the Financial Intermediation sector reached PhP706.0 billion. Establishments engaged in Other monetary intermediation operations was always the top contributor to the sector with revenue of PhP427.9 billion or 60.6 percent of the total. Insurance & pension funding, except compulsory social security industry placed second with PhP126.3 billion (17.9%). On the other hand, the Pawnshop operations generated the least revenue with only PhP145.8 million. (See Fig.3)
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By region, the NCR, being the hub of business activities, earned the highest revenue amounting to PhP678.8 billion. CAR registered the least revenue among the regions with PhP143.7 million.
Total cost reaches PhP463.9 billion, Other monetary intermediation industry spends the highest
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The total costs for operating the sector reached PhP463.9 billion in 2009. Other monetary intermediation industry incurred the highest cost with PhP280.7 billion (60.5%). This was far followed by Insurance & pension funding, except compulsory social security industry with PhP96.8 billion (20.9%). (See Fig.4)
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Region-wise, the NCR incurred the highest cost for operating the sector with P450.0 billion (97.0%). Central Visayas followed next with PhP4.0 billion. The least cost was incurred by CAR with only PhP109.4 million.
Revenue-cost ratio amounts to PhP1.52, Non-bank financial intermediation, n.e.c. industry records the highest returns
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The revenue per peso cost generated by the sector amounted to 1.52 in 2009. Among industries, Non-bank financial intermediation, n.e.c. recorded the highest and surpassed the national average with 2.29 revenue per peso cost. This was followed by Credit granting industry with 2.08. Activities auxiliary to insurance and pension funding recorded the least revenue per peso cost at 1.16.
Value added amounts to PhP336.9 billion
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Value added contributed by the Financial Intermediation sector was estimated at PhP336.9 billion. Industry-wise, Other monetary intermediation industry generated the highest value added with PhP211.2 billion (62.7%). Pawnshop operations industry contributed the least value added with PhP70.8 million. (See Fig.5)
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Regionwise, NCR contributed the largest value added with PhP321.1 billion or 95.3 percent of the total. This was far followed by Central Visayas with PhP7.8 billion (2.3%). The rest of the regions contributed a total value added of less than one percent
Non-bank financial intermediation, n.e.c. industry employees have the highest revenue per employee
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Labor productivity, measured in terms of revenue per employment, showed that PhP4.5 million of revenue per employee was produced by the Financial Intermediation sector in 2009. Employees of Non-bank financial intermediation, n.e.c. industry registered the highest revenue per employee with PhP10.8 million. Pawnshop operations industry on the other hand recorded the least with PhP461,297.
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Value added per total employment, another measure of labor productivity, was valued at PhP2.1 million. Among industries, Activities auxiliary to insurance and pension funding industry recorded the highest ratio with PhP8.2 million per worker. This was followed by Non-bank financial intermediation, n.e.c. industry with an estimated ratio of PhP6.6 million per worker. The least was recorded by establishments engaged in Pawnshop operations with PhP224,018 per worker.
Gross addition to fixed assets totals to PhP10.6 billion
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Gross addition to fixed assets in 2009 totaled to PhP10.6 billion. Other monetary intermediation industry recorded the highest additions to fixed assets with PhP7.2 billion (76.3%). Pawnshop operations industry had the lowest with only PhP370,000.
Government grants PhP4.7 billion to Financial Intermediation
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The total subsidies received by Financial Intermediation establishments reached PhP4.7 billion in 2009. Establishments engaged in Credit granting received the highest subsidies amounting to PhP2.6 billion (54.9%). This was followed by Activities auxiliary to insurance and pension funding with PhP1.6 billion (34.5%). Non-bank financial intermediation, n.e.c. received the least with PhP2.4 million. Other industries did not receive any subsidy from the government.
TECHNICAL NOTES
Introduction
The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals..
Scope and coverage
The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:.
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Agriculture, Hunting and Forestry
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Fishing
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Mining and Quarrying
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Manufacturing
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Electricity, Gas and Water Supply
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Construction
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Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods
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Hotels and Restaurants
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Transport, Storage and Communications
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Financial Intermediation
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Real Estate, Renting and Business Activities
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Private Education
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Health and Social Work
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Other Community, Social and Personal Service Activities
The scope of the ASPBI was confined to "formal sector" only, which consists of the following:.
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Corporations and partnership
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Cooperatives and foundations
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Single proprietorships with employment of 10 or more
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Single proprietorships with branches
Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."
Classification of Establishments
Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
Economic organizations relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
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Single establishment is an establishment which has neither branch nor main office
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Branch only is an establishment which has a separate main office located elsewhere
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Establishment and main office, both located in the same address and with branches elsewhere
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Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
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Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments
The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
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Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
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Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS
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Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC
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Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
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Cooperative - the establishment name includes words such as Cooperative or COOP
The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.
The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.
The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2009 ASPBI:
0 1 - 4 5 100 - 199 1 5 - 9 6 200 - 499 2 10 - 19 7 500 - 999 3 20 - 49 8 1000 - 1999 4 50 - 99 9 2000 and Over TE Code Total Employment TE Code Total Employment The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.
Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE less than 20, the data that will be presented is limited only at the national level.
Response Rate
A total of 691 out of 720 or 96.0 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Concepts and Definition of Terms
Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.
Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.
Total Employment is the number of persons who worked in or for this establishment as of November 15, 2009.
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, 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.
Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser's price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.
Valued added is gross output less intermediate input.
Gross output (for Banking institutions and Non-bank financial intermediation) is equal to the sum of total revenue (less rent income from land, delivery charges separately invoiced to customers, royalty income and franchise income) less interest expense plus capital expenditures of fixed assets produced on own account.
Gross output (for Insurance and pension funding, except compulsory social security and Pre-need plan activities) is equal to the sum of total revenue (less rent income from land, delivery charges separately invoiced to customers, royalty income and franchise income) less insurance claims paid plus capital expenditures of fixed assets produced on own account.
Gross output (for Administration of financial markets; Security dealing activities; Foreign exchange dealing; Activities auxiliary to financial intermediation except foreign exchange dealing, n.e.c and Activities auxiliary to insurance and pension funding) is equal to the sum of total revenue (less rent income from land, delivery charges separately invoiced to customers, royalty income and franchise income) and capital expenditures of fixed assets produced on own account.
Intermediate costs is equal to the sum of the following cost items: materials and supplies; real estate purchased for sale; fuels, lubricants, oils and greases; electricity and water; cost of industrial services done by others; cost of non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee; inventory of materials and supplies, real estate for sale, fuels, lubricants, oils and greases, goods for resale (beginning less ending); and other cost.
Tangible Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.
Book Value of Tangible Assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.
Gross additions to tangible fixed assets is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.
Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.
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 or production and to protect it against competition.
Source: National Statistics OfficeManila, Philippines
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