The gross financial assets of Philippine households jumped by 12.9 percent in 2022, above the seven percent increase in the previous year.
According to the Allianz Global Wealth Report 2023, the Philippines is one of the very few countries in the world where growth in financial assets accelerated in 2022.
The report said that the main cause was the asset class securities which gained 26.3 percent in value.
Insurance/pensions, on the other hand, lost in value by 4.1 percent, the first decline in 12 years. However, with a portfolio share of seven percent, this asset class is still underdeveloped in the Philippines.
Bank deposits, with a portfolio share of around 60 percent, held steady, increasing by 6.5 percent.
“2022 was a challenging year globally for savers, with a decline of 2.7 percent in private households’ financial assets. The growth in financial assets can be attributed to savings and price increases (increase in value). Based on 2022 performance, bank deposits are the preferred savings vehicle in Asia, and insurance is only seven percent portfolio share (in asset class). This presents a solid opportunity for insurance propositions, especially via bancassurance. Smart, long term savings is key to grow wealth in the long run,” Allianz PNB Life CFO Fang Siong Chong said.
Compared to the pre-pandemic year of 2019, the report said financial assets are 35.9 percent higher, but only in nominal terms.