BPI Family eyes gains through SMEs

MANILA, Philippines - BPI Family Savings Bank (BPI Family Savings) is looking at a 10-percent increase in its net earnings and double-digit growth in total loan and deposit portfolio, supported by the promising loan package for the franchise businesses.  

The thrift bank of the Bank of the Philippine Islands (BPI) reported a total loan portfolio of P108.7 billion at the end of 2011.  

BPI Family Savings president Jose Teodoro K. Limcaoco said that the bigger challenge this year is to increase its deposit base “to match the strong growth of the bank’s lending.” 

“The target of BPI as a whole is to increase the deposit-to-loan ratio,” Limcaoco said during the second Ka-Negosyo Expo 2012 held yesterday. 

In the first three months, consumer lending grew roughly 13 percent with mortgage loans leading the way.  

Auto loans grew by single digit due to problems of supply from auto dealers.  

Mortgage loans grew by 14 percent in the first quarter, and it is expected to continue expanding in double-digit fashion.  

Mortgage loans account for over 50 percent of its loan portfolio, with roughly 26 percent for commercial loans and the remaining for auto loans. 

The bank president said that 80 percent of mortgage lenders are end-users or real owners.  

Commercial loans also grew by 15 percent in the first three months of 2012, and the thrift bank expects a big boost from its Ka-Negosyo program. 

Meanwhile, BPI vice president and commercial loans division head Ma. Mercedes R. Roces said that they are targeting a total of 50 franchisors under its Ka-Negosyo program. It has so far accredited 32 franchisors since it started the program last year. 

“We are targeting the small franchisors as they need our help, more than the big boys,” Roces said, which includes Julie’s Bakeshop, Ministop, Frutas, Lydia’s Lechon, Phoenix Petroleum, Hungry Juan and Bodegas Site. 

The franchisors wanting to get accredited must have been around for more than three years, must be operating five-owned outlets, and manages another five franchisees. 

Individuals wishing to apply for a franchise with any of the BPI Family Savings accredited franchisors can get special deals, lending terms and loan interest rates. And that includes no collateral loans. 

“BPI Family Savings serves to customize the financial needs of both the franchisee and the franchisor,” Roces added.