BPI gets conditional approval to set up branch in London

The Financial Services Authority (FSA) in London has approved the application of the Bank of the Philippine Islands (BPI) (Europe) Plc to establish a branch in the area, a ranking bank official said.

BPI vice president Gertie K. Sinio told the Philippine Stock Exchange (PSE) that they were informed of the approval through an e-mail message, wherein the FSA also required BPI to submit proof of its capitalization and other documents prior to its final decision.

The application for a branch in London was submitted last year.

BPI officials said that remittances from overseas Filipino workers (OFWs) in Europe continue to grow, accounting for five percent of its remittance business last year.

The biggest contributor of remittance for BPI are the Filipino seafarers, accounting for 33 percent of the business and a 60-percent market share overall.

The rest of BPI’s remittance business comes from the United States, which accounts for 20 percent of its business, followed by the Middle East, Asia and Europe.

BPI was among the top remittance banks in 2005 with $2.2-billion transactions and is estimated to reach $2.8 billion last year. Total remittances coursed through the country’s banking system reached $12.6 billion in 2006.

BPI Direct Savings Bank president Raul D. Dimayuga said that they are looking at a 15-percent growth this year. BPI Direct Savings is the BPI subsidiary that takes a lead role in the remittance business. It is also a virtual, or click-and-portal, bank that will service its client through the telephone and the Internet.

BPI has 17 international branches, over 100 tie-ups with money transfer operators like Western Union and Wells Fargo, and over 300 correspondent bank relations worldwide.