|
By Likha C. Cuevas-Miel, Reporter
THE Philippines’ third largest bank is beefing
up its war chest for the possible acquisition of a rival as the
industry consolidates amid tighter competition.
In a briefing, Aurelio R. Montinola 3rd, Bank of
the Philippine Islands (BPI) president, said the lender is preparing
its funds for “opportunities,” adding the acquisition of another
bank is in the cards.
He said that BPI is poised to grab any
opportunity that may crop up within the year as it finds itself
financially capable to do so given its “very strong” organic
growth. The executive said BPI’s credit card loans were up by 15
percent while billings and overall lending grew 25 percent and 13
percent, respectively, vis-à-vis the industry’s five percent.
Montinola said the lender’s asset management
and remittance businesses were also healthy, registering 17 percent
and between 25 percent and 30 percent expansion, respectively.
“So we’re seeing there is definitely room
for organic growth and our customers are responding well to that. On
the other hand, if there are opportunities then we will look at
potential acquisitions (and) I think the general statement is BPI is
known for acquiring and our last acquisition is in 2005. Let’s
just say—given the health of BPI today—we are ready when an
opportunity arises,” he said.
Astro del Castillo, First Grade Holdings
managing director, said now is a good time to acquire to be “on
top or stay on top” given that assets are trading at a discount
especially during the current crisis triggered by the US’ credit
crunch and global inflationary pressures.
“In fact there are already some back talking
about acquisitions (now). But BPI is probably also eyeing expanding
its business abroad and not just to be active locally due to stiff
competition. It is not cheap to make your presence felt especially
among the overseas Filipinos,” he said.
BPI stockholders approved on Thursday the
increase in the lender’s authorized capital stock from P2.9
billion to P4.9 billion. They also gave their consent to a
20-percent stock dividend. This is payable to all common share
holders of record 15 working days after approval by the Securities
and Exchange Commission.
“The increase in authorized capital stock is
the first we’ve done within the last seven years. Every now and
then we increase our (capital) significantly so we will be ready for
(opportunities) the next four or five years,” Montinola said.
This year, the bank would have a difficult time
maintaining the same level of income growth as last year despite the
“good business volumes” due to the “turbulent” first quarter
for the financial sector. “There will be a lot of challenges in
the interest income side although we’re still evaluating how the
first quarter will look. As the Philippines improves, there will be
more pressures on the margins,” the executive said.
|
