Tax and other perks received by firms engaged in financial and insurance activities contracted by 25 percent, according to data released by the Philippine Statistics Authority (PSA) on Tuesday.
Based on the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Financial and Insurance Activities Sector For All Establishments, total subsidies received by these firms reached P2.1 billion in 2015.
In 2014 tax and other perks received by firms engaged in Financial and Insurance Activities reached P2.8 billion. In 2013 the amount was even higher at P6.4 billion.
“Subsidies are all 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 PSA said.
In 2015 only five industries received subsidies from the government. The industry that received the lion’s share was nonlife insurance at P1.3 billion.
Other industries that received subsidies were financing company operations, P750 million; lending investor activities, P90.6 million; other credit granting, P7.7 million; and credit cooperative activities, P3.2 million.
The PSA also said the gross income posted by the sector reached P1.4 trillion in 2015, 16.7 percent higher than the P1.2-trillion gross income posted in 2014.
The PSA said the sector incurred expenses amounting to P967 billion in expense in 2015, 15 percent higher than the P838 billion recorded in 2014.
The industry that posted the highest income and expense was expanded commercial banking or universal banking.
“The sector generated an income-per-expense ratio of 1.50. This means that for every peso spent, a corresponding income of P1.50 was generated,” the PSA said.
Universal banking posted a gross income of P373.2 billion, or 25.8 percent of the sector’s total income. It also accounted for P268.7 billion, or 27.8 percent of the total expense of the sector in 2015.
Industries that posted high gross incomes included activities of holding companies ranked second with P273.2 billion, or 18.9 percent of the total and life insurance ranked third with P216 billion, or 14.9 percent in 2015.
Data showed that apart from universal banking, industries that posted the highest expense in 2015 were life insurance with P185.8 billion, or 19.2 percent of the total and activities of holding companies with expense of P90.1 billion, or 9.3 percent.
However, mutual benefit association operation incurred the lowest expense of P65.1 million in 2015.
“Across industries, investment company operation recorded the highest and surpassed the national average of 4.21, while mutual building and loan association operation recorded the least income-per-expense ratio of 1.01,” the PSA said.
In 2015 there were a total of 7,172 establishments in the formal sector of the economy were engaged in financial and insurance activities.
Credit cooperative activities covered 2,351 establishments, or 32.8 percent of the total number of establishments. Lending investor companies followed with 1,241 establishments, or 17.3 percent and pawnshop operations, 1,106 firms, or 15.4 percent of the total.
The 2015 ASPBI is 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 2015.
The survey was conducted nationwide in 2016 with 2015 as the reference period, except for employment where the reference period is November 15, 2015.