Sees 15% loan growth in 2016
BPI Family Savings Bank, the thrift bank arm of the Ayala-led Bank of the Philippine Islands, is confident of hitting its P200-billion target in loans for the whole year, citing increased demand from younger clients as prime movers of the economy and an improved take up in provinces.
Maria Cristina L. Go, senior vice president of BPI Family Savings, said in a press briefing that the bank has already “doubled the size of retail loans” in the last five years resulting in a 15-percent to 20-percent average revenue growth yearly from 2010 to 2015.
“It has been double-digit growth in the last five years… and we are aiming to cross the P200-billion outstanding loan portfolio this year from the P180 billion last year. So far, we’re already tracking the P200 billion,” said Go.
“We’ve seen growth in provincial areas outpace the Greater Metro Manila region,” she added, citing BPI Family’s 25 percent growth in retail loans in the provinces compared with the 15 to 18 percent in the same nine-month period for the Greater Metro Manila area.
Go said the robust growth in loans in the provinces were attributed to the real estate boom outside Metro Manila that micro, small and medium enterprises encourages to borrow.
Auto car dealerships in the provinces are also prompting people to go for auto loans, and there is an increase in housing loans as buyers shun the busy and cramped metropolis.
She said 30 percent or P60 billion of the P200 billion goal this year will come from the provinces. Housing loans account for the bulk of the 2015 target (54 percent or P107 billion).
Next year, Go said BPI Family is “still targeting 15 percent in loan growth” on the back of a robust growth prospects for the Philippine economy.
“We continue to be positive and optimistic given the scenario we are in the global economy, and locally where there is a change in leadership. Forecasts are very positive. We also noted OFWs have more propensity to avail of house, car, and micro-enterprise loans,” said Go.
“We see increased propensity in younger ages in their 20s that are availing of car loans, of condo units and of the likes. They are now looking… In the past, they were afraid. But with regular cash flows, they can put their cash to good use,” she added.
Given the stellar growth opportunities in loans, Go said loan take ups are still dependent on the “resilience of the economy, foreign exchange rates, interest rates and infrastructure projects.”
“Property or housing will be affected by the rate in interest rates. If rates move up quickly, it will affect demand. Infrastructure – also for businesses as we move into the provinces,” she added.
As of end-September, the bank has 185 branches across the Philippines and is on track to opening 19 branches for 2015 and 2016, mostly outside Metro Manila.