BPI sees modest loan growth for 2015
Bank of the Philippine Islands (BPI) has set a lower loan growth outlook for 2015, but expects to reap dividends on investments made last year.
Net loans expanded 26 percent to P800 billion last year.
BPI president and chief executive officer Cesar P. Consing said the bank is still looking at strong double-digit growth in loans this year but not like record growth rates similar to 2014.
“It will be hard to match this year,” Consing said in a press briefing after the annual stockholders meeting.
However, earnings outlook for the commercial bank of the Ayala Group remained positive.
“So far, the first quarter performance is still on track with our aspirations,” the bank chief executive added.
Last year, net income was placed at P18 billion, or a four-percent decline from the previous year. Minus trading gains, it is translated to a positive growth of 27 percent.
BPI positive outlook for the year is also based on investments in human resources and other platforms focused on retaining both its corporate and retail markets.
The bank has a deposit base of a little over seven million, which will be serviced by 15,000 bank personnel. In fact, technological spending had increased by 20 percent.
Earning from its remittance grew nine percent while the volume of transactions grew by eight percent.
BPI executive vice president Antonio V. Paner said that the bank increased its market share of the remittance business among banks from 28 percent in 2013 to 29 percent last year.
BPI is part of the top three commercial banks in the remittance business, which opens various transaction and earnings stream opportunities for the banks.
The BSP reported that over 90 percent of the billions of dollars in remittance are coursed through the country’s banking system.
Meanwhile, Consing reiterated that BPI does not have any intention of expanding into the region, in lieu of the Asean regional integration.
The Ayala commercial bank has taken a position of strengthening domestic operations rather than expand aggressively into the Asean region. Investments are made on human resources, organic growth or branch expansion, and distribution network, such as electronic platforms and automated teller machine (ATM).
“Our role is to be more relevant here. Mergers and acquisitions is not on the top of our agenda,” the BPI chief executive added.