The thrift bank arm of Bank of the Philippine Islands (BPI) is on track toward expanding its presence outside Metro Manila to service the growing market in the provinces.
BPI Family Savings Bank President Natividad Alejo, at the sidelines of the launching of said bancassurance event, said the 19 additional branches they plan to open before 2016 ends is on its way to completion.
“We’re expanding mainly in the provincial areas because we have enough presence in the urban centers. We’re seeing the growth also outside [Metro Manila]. So we’re trying to expand in the provincial areas, particularly in the Visayas-Mindanao [region],” Alejo said.
The thrift bank arm of the Ayala Group currently operates 144 branches spread out nationwide. In June, BPI Family set up shop in Baguio, Cabanatuan and Lucena.
The thrift unit vowed to focus small and medium enterprises (SMEs) lending as the sector accounts for 90 percent of all registered businesses in the Philippines.
Alejo said five of the branches they intend to set up have already opened.
With three months left, the executive is positive the lender will be able to open 14 more branches before the year ends.
The thrift unit is also confident of sustaining its growth momentum.
“We’re still very positive, we’re very optimistic that the bank’s fundamentals are intact and we hope to be able to see the continued vigor of the consumer sector, of the retail sector,” she added.
In 2015 BPI Family Savings reported a 19-percent growth in its total loan portfolio of P206 billion, surpassing its original target of only P200 billion.
The lender was also the top deposit-taker, posting a 27.9-percent market share of total deposits raised by the thrift bank sector, raking in P213.7 billion out of the P767.1 billion total.
In terms of loan growth, BPI Family continues to see expansion in its lending business.
“Generally, we’re on track….The market is strong, continues to be strong,” Alejo said.
Parent bank BPI’s loan portfolio expanded 18.6 percent to P904.38 billion as the first half of 2016, anchored by the 20.4-percent rise in corporate loans, while deposits rose 10.8 percent to P1.33 trillion.
However, despite the increase in its loan book, BPI said its gross 90-day nonperforming loans dropped to 1.6 percent, from 1.8 percent, while reserve cover stood at 117.8 percent.
BPI booked a 35.6-percent increase in earnings to P12.67 billion in the first half, while revenues rose 20.9 percent to P35.2 billion on the back of strong results from its core lending business, noninterest income and securities trading.