MANILA -- Bank of the Philippine Island (BPI) President and Chief Executive Officer (CEO) Cezar Consing is optimistic the Ayala-led financial institution will post higher income year-on-year in 2019 after a 7.6 percent growth in net income in the first quarter of the year.
In a briefing Thursday, Consing said he is optimistic that this year’s profits will be “higher, faster (and) stronger.”
In 2018, the bank posted a three percent growth in net income to PHP23.08 billion.
Consing attributed his optimism to the strong rise of their loans in the first quarter this year after it grew by 11.5 percent year-on-year to PHP1.35 trillion.
In a report to the Philippine Stock Exchange (PSE) Thursday, the bank said credit card loans grew by 20.3 percent, housing loans by 9.9 percent and corporate loans by 11.8 percent.
BPI executives target to increase the share of consumer loans to around 35 percent of total in four to five years from the current 20 percent. The higher portion is accounted for by the corporate segment.
BPI Chief Finance Officer and head of Strategy and Development Maria Theresa Javier, during the same briefing, said they are giving consumer and small and medium enterprise (SME) loans greater focus, with a combined target growth of 15 percent this year, higher than the 10-12 percent eyed for corporate lending.
Relatively, BPI executives have set a PHP6 billion capital expenditures this year, higher than in the past, as it focuses more on digitalization of its processes as well as expanding its branch network.
Javier said they target to open 14 new BPI branches and 100 branches of its microfinance arm – BPI Direct BanKo.
To date, the bank has over 800 branches in the country, Hong Kong, and Europe and about 200 BanKO branches nationwide.
Javier said half of the new branches that will be opened this year will be in the Visayas and Mindanao, same as their decisions in recent years as they recognize the rising economic growth in these areas.
Relatively, Consing said a big chunk of the capital expenditures will be allocated for digitalization since this will have a big impact on their operations and cost in the coming years.
Digitalization will eventually lessen the need to put up additional physical branches since more customers will have an option to use mobile and online platforms, he added. (PNA)
