BPI expects 10 percent growth in loan portfolio

MANILA, Philippines — Ayala-led Bank of the Philippine Islands (BPI) is aiming to expand its loan portfolio by up to 10 percent this year, optimistic that demand for financing will go up from the infrastructure sector.

BPI Executive Vice President and head of institutional banking Juan Carlos Syquia told The STAR that the bank has multiple projects in its pipeline that could grow its loan book by 10 percent for this year.

Syquia said BPI is prepared to fund a number of infrastructure projects, ranging from power to technology, once its proponents receive regulatory approval to deliver them.

“From a project standpoint, the issue is whether these projects would proceed. Our clients are waiting for permits for the expansion of plants. Those are in our pipeline and we are ready with a few. We are ready with our commitments, it is just whether they get the green light,” Syquia said.

BPI plans to finance energy projects that will address the looming shortage of power in the Philippines. The country is facing an energy crisis with the Malampaya gas field, where 30 percent of Luzon’s power is sourced, expected to be depleted by 2024.

“We are headed to a situation, potentially a shortage, wherein our surplus supply is not as big as we need,” Syquia said.

Likewise, Syquia disclosed that BPI could provide loans for whoever would rehabilitate the Ninoy Aquino International Airport once the bidding for its operations and maintenance is completed.

“We still need the airport. The way we position, and this is no secret, we look top down and we talk to our clients. When we look top down, we look at what the big infrastructure projects are and then we position ourselves to the potential players,” Syquia said.

Similar to property experts, BPI believes the Philippines can position itself as a data center leader in Southeast Asia, although Syquia said the government and investors have to align their efforts. Syquia disclosed that BPI is funding the completion of several data centers right now.

Data centers serve as storage sites for information handled by tech giants, such as Amazon, Meta and Google, making them crucial infrastructure in the era of digital transition. The Ayala Group, for instance, is putting up a $1 billion data center in Quezon City, set to be the largest of its kind in the Philippines.

BPI grew its loan portfolio by 15 percent to P1.7 trillion in 2022, from P1.48 trillion in 2021, on the resurgence of economic activities in the pandemic aftermath.