BPI expects remittance growth to soften this year

MANILA, Philippines - The Bank of the Philippine Islands (BPI) is expecting a softening in the growth of remittances from overseas Filipino Workers (OFWs) this year.

BPI executive vice president Teresita B. Tan said that remittances coursed through the Ayala-led commercial bank would still grow but not at the same pace as the previous years.

Remittances from OFWs coursed through BPI’s network reached $4.3 billion in 2009 from $4.4 billion in 2008.

BPI accounted for 24 percent of total remittances in 2009.

Total remittances amounted to $17.3 billion in 2009, 5.4 percent higher than the $16.4 billion recorded in 2008.

BPI said the number of remittance transactions this year will likely be the same or slightly less than last year.

“But the volume will still increase as Filipinos will lump their remittances thus saving on fees,” Tan said during the formal launching of the 24/7 Cashierless Payment System Program for ease the convenience in paying Globe Telecommunications bills.

BPI anticipates a softening in remittance growth as more and more overseas Filipinos are reducing their direct remittances to their beneficiaries but increasing their investments.

Tan said that a growing number of their clients are investing in properties sold by Ayala Land Inc., buying life insurance policies from the Philippine American Life and General Insurance Co. (Philamlife), or acquiring new automobiles.

The BPI executive vice president remains bullish as its expansion overseas will continue, be it branches, remittances centers or tie-ups with international bank and non-bank financial institutions.

The target areas for additional outlets are Spain, Italy and France. Likewise, BPI controls over 60 percent of the Filipino seafarers market.

According to the Trade Union Congress of the Philippines (TUCP), Filipino Sailors on foreign oceangoing vessels remitted a total of $888.949 million in the first quarter of 2010, up 11.04 percent or $88.414 million from the $800.535 million they remitted over the same period last year.