Philippine banks outclass S-E Asian peers in valuations

Manila

THE Philippines' biggest banks may be the smallest lenders in South-east Asia by market cap, but they are now more expensive than their peers in the region, stoked by a steady inflow of foreign investor funds and a bullish economic outlook.

The median price-to-earnings (PE) ratio of Bank of the Philippine Islands (BPI), BDO Unibank Inc, Metropolitan Bank & Trust, Philippine National Bank and Security Bank rose to 14.53 this month, the highest since June 2013, Reuters StarMine data shows. In contrast, the median PE ratio of their regional peers was at 11.17.