BPI Family sees hike in loan volume target

MANILA, Philippines - BPI Family Savings Bank said it expects an upward revision in its loan volume targets this year following a recent partnership with Robinsons Land Corp. (RLC).

Last year, the bank’s total loan portfolio grew to P85 billion and this year, it was originally targeted to expand by 10- to 12 percent.

BPI Family Savings Bank president Alfonso L. Salcedo Jr. said that it might still be too early to set a new target for its 2010 loan growth.

“The pipeline looks encouraging and we are way within our targets,” Salcedo said at the formal launching of the tie-up, which likewise marks the first Housing Madness program in Metro Manila.

BPI Family Savings Bank is focused mainly on the retail market and specializing in loans for mortgage, auto, consumer and the small and medium enterprises (SME). Roughly half of its loan portfolio is in the property and real estate market.

The thrift bank of the Ayala Group of Companies will be offering housing loans with interest rates as low as eight percent for the first year, and 8.75 percent for the subsequent annual payments. Current interest rates on mortgage loans range from 9.5 percent to as high as 10.25 percent for five years.

The Bangko Sentral ng Pilipinas (BSP) is expected to increase interest rates up to 50 basis points after the May national elections. It could be higher if the elections are perceived as a failure, or that it has been “placed in doubt”, or if the US Federal Reserve increases its rates dramatically.

Under the program, the housing loans must be for the acquisition of condominiums, properties or other real estate under the RLC brand, approved on or before June this year.

To make it even more enticing, RLC president and chief operating officer Frederick Go said that they would be throwing in special discounts and freebies.

“Discounts could go up to P300,000 on unit prices and special rates that translate to low monthly amortizations,” Go said in a press briefing yesterday.

Other freebies are a free overnight stay at Robinsons Land hotels at the Crowne Plaza Galleria Manila or Summit Ridge Tagaytay, and waiver of P3,500 appraisal fee. Approved applications will get a free BPI Express Credit Gold MasterCard.

Go and Salcedo were in agreement that the property market has been gaining momentum after the global property and credit crisis.

“In fact, property prices today are still below the peak prices prior to the crisis,” Go said.

Real estate in the Ortigas area are said to be priced around P100,000 per square although its peak price reached P175,000. In the Ermita area, it is presently ranging at P300,000 while the peak price in the late 90s was placed at P450,000.

RLC properties involved in the program include Signa Designer Residences, Adriatico Residences, The Magnolia Residences, Escalades 20th Ave. and South Metro, East of Galleria, Sonata Private Residences, Amisa, Gateway Regency, the Fort Residences, Woodsville Mansions and Trion.