BPI lending growth on track

Bank of the Philippine Islands (BPI) said its lending portfolio has grown 16 percent so far this year, well within its 2012 targets.

“It is still within our full year target of between 12-to 15-percent loan growth,” said Aurelio Luis R. Montinola III, BPI president and chief executive officer.

From the initial transactions, Montinola said he was also confident the bank would be able to meet the minimum 15-percent return on equity (ROE) level and a capital adequacy ratio (CAR) of 13 percent.

The universal bank of the Ayala Group is reviewing the requirements of the new Basel III framework, which may require banks to increase their capital base.

“We are reviewing all the capital requirements, but so far, we are well within our targeted capital levels,” he said on the sidelines of the annual membership meet- ing of the Chamber of Thrift Banks (CTB).

The BPI executive said the lending environment remained strong particularly in the consumer market. He said there is also strong demand from the property sector as well as small and medium enterprises (SMES).

BPI has a deposit base of five million at the end of 2011, from 2.5 million in 2009. It is likewise estimated one million are directly correlated to the remittance business.

He said growth of deposits will not rely on any acquisitions but in organic growth and “peripheral expansion.”

“Instead of looking to acquire another banking institution, BPI prefers to expand its own network organically,” Montinola said.

“Peripheral expansion” means that the bank will maximize and match all its bank products with its client base. That means maximizing its cross-selling opportunities, joint ventures, strategic alliances, alternative channels including Internet and mobile banking.