BPI on track to hit growth goal

AYALA-LED Bank of the Philippine Islands (BPI) is on track towards hitting its growth target this year, its chief executive officer said, with the bank’s less risky and more balanced portfolio seen to drive expansion.

BPI President and CEO Cezar P. Consing said the bank is looking at better growth this year given the bank’s current performance thus far.

“I think our growth targets in general are on track,” Mr. Consing said in a recent interview when asked whether the bank could hit its growth level in 2015.

The country’s third largest bank in asset terms saw its net income rise to P18.04 billion in 2015 from the P18.038 billion seen in 2014 which was mainly boosted by gains in its deposits and lending business.

In the first six months of 2016, its net profit was already up by 35.6% to P12.6 billion from last year’s comparable period income of P9.3 billion as all areas of its operations grew.

Mr. Consing said the bank is currently seeing “very balanced growth.”

“I think in general [ our growth], is steady. Drivers, it’s very balanced growth,” he added.

BPI earlier said it expects the continued expansion of its core businesses to drive its growth for 2016 as it “reduced trading gains” and “push a much more balanced portfolio.”

BPI Executive Vice-President and Chief Financial Officer Joseph Albert L. Gotuaco had said the bank is looking at a “doubledigit” growth in both its loans and deposits for 2016 adding that there is “nothing in sight to threaten” their outlook, so far.

In the January to June period, the Ayala bank booked a 9.6% higher net interest income at P20.70 billion, while its noninterest income also grew 41.7% to P14.50 billion driven by expansion in its securities trading, bank fees and commissions, bancassurance and income from capital markets.

BPI said its net earnings translated to a 16.4% return on equity, or the net income earned as a percentage of stockholder investment — a key measure of performance, while return on assets, or the net income as a percentage of total assets, was at 1.6%. Total loans during the period stood at P904.38 billion, up 18.6% while total deposits with the bank was at P1.33 trillion, also higher by 10.8% year on year.

Earlier, Mr. Consing said the Ayala-led bank is focusing on “organic” sources of growth for the year, with the economy providing firms ample room to expand, doing away with the need to acquire other lenders or for the entry of foreign capital.

Mr. Consing said the Ayala-led bank is also looking to boost lending further, adding that there is “room to grow” for BPI especially outside Metro Manila.

Recently, BPI acquired a 10% minority stake in Rizal Bank, Inc. ( RBI) — a microfinance-oriented rural bank with more than 120,000 clients served nationwide — in a deal that is seen to expand its presence in the microfinance space and as part of efforts to push financial inclusion in the country.

BPI’s total assets as of end-June reached P1.58 trillion, up 11.2%.