BPI Family eyes 10% income growth this year

MANILA, Philippines - BPI Family Savings Bank is looking to grow its net income by at least a 10-percent net income from P3 billion in 2013 to between P3.3 and P3.5 billion this year.

BPI Family president and chief executive officer Jose Teodoro Limcaoco said their core business will make up for poor trading gains.

“We are seeing good loan growth, where the consumer sector have good margins,” Limcaoco said during the regular membership meeting of the Chamber of Thrift Banks (CTB) yesterday.

The bank chief executive said there was strong indication that deposits will expand at least 20 percent, while loan growth had potential strength of 18 percent, led by its SMEs (small and medium enterprises) lending.

SME loans (Ka-Negosyo) expanded 22 percent as of end August this year.

“Businessmen SME are very bullish especially in the provincial areas which right now account for 50 percent of our Ka-Negosyo loans,” Limcaoco said.

So far, mortgage loans account for 50 percent of BPI Family Savings loan portfolio. Auto loans and the SME loans account for roughly 25-percent each.

In the past three years, residential loan portfolio has cornered 24 percent of the country’s residential loan market, which in turn has been growing by an average rate of 12 percent per annum.

Borrowers continue to gobble up housing loans be aggressive due to the continued erection of residential and commercial spaces under the overcast shadow of low lending rates.

End-users continue to dominate the buying scene over speculators or investors, particularly in the P2.5 million and below segment of the market.

Majority of the property buyers are first-time owners, young professionals, newly-married couples, and well-to-do students from the provinces enrolled in leading universities in Metro Manila.

BPI Family operates 160 branches but is part of BPI’s combined branch network of 808.