2009 Annual Survey of Philippine Business and Industry (ASPBI) - Financial Intermediation for All Establishments : Final Results

Reference Number: 

683

Release Date: 

Thursday, February 9, 2012

 

Number of Establishments

The 2009 Annual Survey of Philippines Business and Industry (ASPBI) covered a total of 14,078 Financial Intermediation establishments. As shown in Figure 1, Pawnshop operations registered the highest number with 6,953 establishments or almost fifty percent (49.4%) of the total. Credit granting ranked second with 23.4 percent followed by Non-bank financial intermediation, n.e.c., with 14.4 percent. However, Insurance & pension funding, except compulsory social security recorded the least number of establishments with one percent.

Employment

Financial Intermediation establishments generated jobs for 231,336 workers in 2009. Majority (99.0%) were paid employees while the remaining 1.0 percent were unpaid employees.

Other monetary intermediation employed the most number of workers with 123,463 (53.4%). Credit granting ranked far second with 32,924 (14.2%) employees. Pawnshop operations industry ranked third with 23,499 (10.2%) workers. The least number of employees were employed by Activities auxiliary to insurance and pension funding. (See Fig. 2)

The ratio of employment per establishment is used to determine whether the respective industry is labor-intensive or not. An estimated 16 workers per establishment were recorded for the sector. At the industry-level, Other monetary intermediation and Insurance and pension funding, except compulsory social security recorded the high ratio with 158 and 128 workers per establishment, respectively. Take note that the two industries mentioned above, covered the company-wide report on employment and include only the total head offices for these industries. Activities auxiliary to financial intermediation, except insurance and pension funding followed next with 17 workers per establishment. Pawnshop operations industry employed the least with only 3 workers per establishments.

Compensation

The total compensation paid by Financial Intermediation establishments amounted to PHP92.7 billion, an equivalent of PHP404,972 average annual compensation per paid employee. Industry-wise, Other monetary intermediation paid the highest compensation to its employees amounting to PHP62.9 billion or 67.9 percent of the total. Far second was Insurance & pension funding, except compulsory social security which paid PHP7.9 billion (8.6%). Activities auxiliary to insurance and pension funding spent the least with PHP2.1 billion (2.3%)

As shown in Figure 3, three industries surpassed the national average annual compensation. Employees in Other monetary intermediation establishments were the highest earners in 2009 with an average annual compensation of PHP510,200, closely followed by employees in Activities auxiliary to insurance & pension funding establishments with PHP509,657. Pawnshop operations employees recorded the lowest average annual compensation of PHP113,935.

Revenue and Cost

In 2009, the gross revenue generated by the Financial Intermediation sector reached PHP811.2 billion. Establishments engaged in Other monetary intermediation operations was consistent top contributor to the sector earning PHP447.0 billion or 55.1 percent of the total. Insurance & pension funding, except compulsory social security industry placed second with PHP128.1 billion (15.8%). On the other hand, the Pawnshop operations generated the least income with PHP10.3 billion (1.3%). (See Fig. 4)

Total costs excluding compensation spent by the sector reached PHP503.6 billion in 2009. Other monetary intermediation industry incurred the highest cost with PHP292.8 billion (58.1%). This was far followed by Insurance & pension funding, except compulsory social security industry with PHP98.7 billion (19.6%). Pawnshop operations establishments spent the least cost with PHP4.3 billion (0.9%). (See Fig. 4)

The revenue per peso cost indicates the amount generated for every peso spent. The revenue per peso cost generated by the sector amounted to 1.61 in 2009. Among industries, Non-bank financial intermediation, n.e.c., Pawnshop operations and Credit granting recorded the highest ratio and surpassed the national average with 2.94, 2.39 and 2.06 revenue per peso cost, respectively. Establishments engaged in Activities auxiliary to insurance and pension funding recorded the least revenue per peso cost at 1.21.

Value Added

Value added contributed by the Financial Intermediation sector was estimated at PHP409.5 billion. Industry-wise, Other monetary intermediation industry generated the highest value added with PHP221.0 billion (54.0%). This was followed by Non-bank financial intermediation, n.e.c. with PHP89.6 billion (21.9%). Activities auxiliary to financial intermediation, except insurance and pension funding industry contributed the least value added with PHP6.6 billion (1.6%).

Labor productivity computed as the ratio of the value added to total employment posted an annual average of PHP1.8 million for Financial Intermediation in 2009. Three industries surpassed the national average namely: Activities auxiliary to insurance and pension funding with PHP4.2 million, Non-bank financial intermediation, n.e.c. with PHP3.9 million and Insurance and pension funding, except compulsory social security with PHP2.2 million. Pawnshop operations industry recorded the least ratio with PHP0.3 million. (See Fig. 5 above)

Gross Additions to Tangible Fixed Assets

The total gross additions to tangible fixed assets for the sector in 2009 summed up to PHP11.5 billion. Other monetary intermediation industry recorded the highest additions to tangible fixed assets with PHP7.3 billion (63.7%). Non-bank financial intermediation, n.e.c. placed second with PHP2.2 billion (19.3%) worth of added tangible fixed assets. Activities auxiliary to insurance and pension funding industry had the lowest with PHP102.2 million (0.9%).

Change in Inventory

From the inventory reports of Financial Intermediation sector, total change in inventories netted a negative value of P203.2 million in 2009. Activities auxiliary to financial intermediation, except insurance and pension funding registered the highest change in inventories with PHP26.3 million. Pawnshop operations industry followed next with PHP17.1 million. Insurance and pension funding, except compulsory social security and Non-bank financial intermediation, n.e.c. recorded a combined change in inventories of negative P263.9 million.

Subsidies

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 (54.8%). This was followed by Activities auxiliary to insurance and pension funding with PHP1.6 billion (34.5%). Other monetary intermediation ranked third with PHP0.3 billion (6.8%). Non-bank financial intermediation, n.e.c. received the least with PHP2.4 million (0.1%). The rest of the 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.

The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19,1940.

Scope and coverage

The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:

  • A - Agriculture, Hunting and Forestry
  • B - Fishing
  • C - Mining and Quarrying
  • D - Manufacturing
  • E - Electricity, Gas and Water Supply
  • F - Construction
  • G - Wholesale and Retail Trade, Repair and Maintenance of Motor Vehicles, Motorcycles, and Personal and Household Goods
  • H - Hotels and Restaurants
  • I - Transportation, Storage and Communications
  • J - Financial Intermediation
  • K - Real Estate, Renting and Business Activities
  • M - Private Education
  • N - Health and Social Work
  • O - Other Community, Social and Personal Service Activities

The scope of the ASPBI was confined to the "formal sector" only consisting of the following:

  • Corporations and partnership
  • Cooperatives and foundations
  • Single proprietorships with employment of 10 or more
  • 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 organization refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

  • Single establishment is an establishment which has neither branch nor main office
  • Branch only is an establishment which has a separate main office located elsewhere
  • Establishment and main office, both located in the same address and with branches elsewhere
  • Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
  • 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 provide 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:

  • 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.
  • 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.
  • 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.
  • Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC.
  • 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:

TE Code Total Employment TE Code Total Employment
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

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 of less than 20, the data that will be presented is limited only at the national level.

Response Rate

A total of 1,190 out of 1,281 or 92.9 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 DEFINITIONS OF TERMS

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 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.

Value added is gross output less intermediate costs.

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 ; 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);research and experimental development expense; environmental protection expense; royalty fee; franchise fee, inventory of materials and supplies, fuels, lubricants, oils and greases (beginning less ending) and other cost.

Tangible Fixed assets are physical assets expected to have productive life 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, fixtures, machinery, tool, furniture, office equipment and other fixed assets.

Book value of tangible fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Gross addition to fixed assets is the sum of costs 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 Office
                 Manila, Philippines

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