Citibank sees sustained 2-digit growth in loan portfolio

MANILA, Philippines - Citibank, the largest foreign commercial bank in the Philippines, expects to sustain a double-digit growth in its loan portfolio until next year, a bank official said.

Citi country officer for the Philippines Sanjiv Vohra said last year, the bank posted a low double digit-loan growth.

“We are hoping it to remain in the double-digit range as we saw in the first half. Trend would be the same,” he said.

Vohra said their optimism is anchored on the continuing growth in consumer and corporate loan demand in the local financial industry.

“Now on its 110th year, Citi has proven its breadth and depth in terms of customers, assets, revenues, profitability, and domestic presence in the country,” he said.

As of end-June 2012, Citi has P133 billion in loans (approximately $3.17 billion).

It also has P254 billion and P150 billion worth of assets and deposit balances, respectively.

Vohra said they continue to see business growing in the domestic front as the bank pursues more corporate investment banking activities.

The Citi executive also said the positive momentum around capital raising should continue.

Vohra cited the recent $1-billion rights offer of Banco de Oro where Citi served as joint lead manager and underwriter.

“We’re proud to have participated in this landmark transaction, which was the largest ever capital raised in the local equity markets. We worked closely with the client to achieve successful pricing and obtain a tighter discount than precedent Philippine and Asian bank right issues, despite volatile markets and amidst the euro zone debt crisis. The offering also achieved seamless and broad marketing process - Citi leveraged on its global network, bridging BDO management to 70 institutional investors during an international roadshow covering six cities in Asia, Europe and US,” Vohra said.

This year, Citi is celebrating its 200th anniversary as a global company.

In the Philippines, it continues to be the largest foreign bank and remains the dominant wholesale and retail banking franchise. 

It is the only foreign player that has entered and consistently ranks among the top 10 commercial banks in the country.