Page 21 - IRC Research Abstracts _ Souvenir_Neat 9 6

THE COMPARATIVE FINANCIAL PERFORMANCES
OF THE SELECTED OFFSHORE BANKS IN
THE PHILIPPINES FROM 2008 TO 2018

Anthony D. Altarejos, DBA
Associate Professor, College of Commerce and Business Administration,
University of Santo Tomas
Manila, Philippines

ABSTRACT

An Offshore bank may not be a popular term for ordinary households, at least in the Philippines.
Primarily, it intends to cater to sophisticated individuals or entities that have business activities
outside of their respective locality. With the continuous trend of globalization, the majority of
the big banks of neighboring countries became indulged to open one for increasing demands of
their own clients, prominence on competition and better financial performance of the
organization. In this study, it acquired secondary data through the reported annual financial
statements to compare the growth rate of these banks, respective profiles and financial
performance indicators through ratios and investments infused. Based on the study, there were
gradual declines on the growth and investment of some offshore banks while others have erratic
patterns. In terms of ratios, there had been stability for a number of years for some while others
reflected gradual declines. The research further utilized the Correlation Coefficient to identify
the effects of several factors to the performance of these banks such as tourisms and foreign
exchange rates. Tourisms and Foreign Exchange rates turned out to have small negative
correlation with the ratio indicators.

KEYWORDS
Offshore Banks, financial performance, ratios, tourism, foreign exchange rates