BPI sees steady loan growth

Ayala-run Bank of Philippine Islands (BPI) expects steady loan growth this year, BPI president Aurelio Montinola III said.

He said they expect their loan portfolio “to reach around 16 percent in 2012.”

For 2013, he said the bank is setting the market industry’s projection of around 12 to 15 percent.

“Our target last year was 12-15 percent and then there was a very strong start and then we said we will have around 15- 16 percent so we’re quite happy. I think there was a report today that total loans of the industry were around 14 percent,” he said.

He said loans would be propelled primarily by consumer lending.

“It is very broad based because there is top tier, the middle market, provincial, consumer so we’re very happy that it is broad based,” he said.

According to the BPI president, they would continue to lend to the agriculture sector.

“We are exploring. We are giving more loans, if there is an opportunity. It is an area where it is good to help the country but we are also selective of who we lend to. People have to come up with the project then we will be prepared to lend but definitely the sector for the rice products we can easy do P3 billon to P5 billion,” he said.

On raising capital for Basel 3, Montinola said they are still looking at it and evaluating if they need to raise capital.

“We are at the 14 percent range so that’s far from 10 percent and given the current scenario we feel we can stay above the 10 percent for a long time so unless we want to do it for opportunistic reasons maybe then (we could proceed with the capital raising schemes),” Montinola said.

On acquisition mode, he said they would still want to pursue organic growth.

He said, “We take care of our shareholders with dividends there is a little bit of extra for profits and then that little extra help us fund for loan growth so under the organic strategy, there’s no real need to raise capital unless we plan to do it for opportunistic reasons.”

On branch expansion, he said BPI is eyeing to enhance further its online operations.

“We have around 800 branches. We have selective small increases but we’re really promoting the Internet and the mobile. The Internet we have about a million customers then transaction levels have gone up. We’re doing something like 18 million transactions done via online. There are two parts the individual which is the express online and the corporate side,” he said.