A comparison in the efficiency and profitability performance of bank-managed and insurance company-managed conglomerates

• Main Authors: Hui, Kathryn S., Liao, Barbra Jamille C., Ong Keh, Sheila Lorayne A., Viacrusis, Jesy Rose A.
• Format: text
• Language: English
• Published: Animo Repository 2006
• Subjects: Conglomerate corporations > Philippines; Business enterprises > Finance; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18338
• Institution: De La Salle University

The study compared the financial performance of the bank-managed and insurance company-managed financial conglomerates in terms of their efficiency and profitability from 1995 to 2004. for efficiency, the cost-to-asset ratio and the efficiency ratio were used. On the other hand, return on asset (ROA) and return on equity (ROE) were utilized for profitability. Using the statistical software Ph Stat, the results of the t-test revealed that there were no significant differences in the efficiency ratio and ROE of the two groups. However, when it comes to cost-to-asset ratio and ROA, significant differences existed. It was found out that bank-managed financial conglomerates were more efficient during the ten-year period whereas the insurance company-managed financial conglomerates were more profitable. In addition, the study also provided an overview of the status of financial conglomerates in the Philippines and their supervision.