BPI remittance business seen to expand to $5 billion in 2009

MANILA, Philippines - The Bank of the Philippine Islands (BPI) is confident that it would surpass its 2008 remittances business of $4.4 billion this year, despite the negative impact of global credit crunch on the global and domestic economy.

“The government expects remittances to expand by three to five percent, we expect our numbers to double that,” Aurelio R. Montinola III, BPI president said in the sidelight of the 2009 Ten Outstanding Expat Pinoy Children yesterday.

BPI forecasts its remittances to growth from $4.4 billion in 2008 to nearly $5 billion this year. The numbers is expected to keep the commercial bank of the Ayala Group among the leaders in the money transfer or remittance business among local commercial banks.

It reported remittances worth $3.3 billion in 2007 from $2.8 billion the year before, and $2.4 billion in 2005.

The Philippines reported remittances worth $16.4 billion last year. It is likewise forecast to be one of the few Asian nations to experience positive growth in remittances.

BPI has grown its remittances business steadily for the past year, earning the bank from the foreign currency business related to money transfers. It has since gained market control of at least 25 percent of the business.

“The next stage is for the overseas Filipinos sending money to their beneficiaries through BPI to start becoming saving depositors, and later, to invest in the bank’s different bank products like insurance,” Montinola said.

Deployments of Filipinos continue to grow especially in the Middle East while the US market is anticipated to register flat to low single digit growth. Deployment of Filipinos steadily increased including Qatar, Chad, Algeria, Malta and Saudi Arabia.

BPI increased its presence in the Middle East market through strategic partnerships through correspondent banking, and tie ups with international money transfer firms.

But what has surprised BPI officials is the dramatic recovery of sea-based overseas Filipinos.

While the first semester registered some disturbing decreases due to drydocking of vessels, foreign ship management and manning agencies decided to retain the Filipino seafarers especially in the cargo vessel.

“They did not want to let them go,” said BPI senior vice president and head of Global Remittance Business Raul Marcelo de Leon Dimayuga. “When the economic recovery occurs, the ship management would need the experienced crew that is already familiar with their operations.”

Dimayuga also explained that it was slightly different in the ocean cruising business.

“Ship management instead let go of some of the more expensive foreign crew, particularly western Europeans, and kept the Filipino seafarers that were just as experienced and capable but slightly cheaper,” the BPI official added.

BPI has working relationships with 250 of the 300 active and accredited international manning agencies.

Labor data shows that at any given time, 262,000 Filipino seafarers are onboard an oceangoing vessel.

Meanwhile, the winners of the 2009 Ten Outstanding Expat Pinoy Children are: Kennie Kabeen A. Alegno (UST); Armando G. Araneta Jr. (John B. Lacson Foundation Maritime University); Jirah Cortes Armandico (Trinity University of Asia); Jezza May A. Boquilon (UP-Diliman); Jordan C. Cabandong (FEU); Alyanna N. Cunanan (UST); Daryl K. Del Rosario (ADMU); Maris Cay E. Gabornes (UP-Visayas Tacloban College); Nikko Jones G. Servanio (John B. Lacson Foundation Maritime University-Arevalo); and Leon Angelo A. Silverio (UST).

The winners received a trophy and P50,000 in cash credited to a BPInoy savings account.

Apart from academic excellence, skills in sports, music and arts, and contribution to the community — the winners also turned in the best essays answering the question, “What is my role in the development of our society, as a son/daughter of an Expat Pinoy?”

First initiated by BPI’s Overseas Banking Group in 2007, the Search for Outstanding Expat Pinoy Children aims to honor both Expat Pinoy parent and children.

“Children and family members of Overseas Filipinos form a big part of our population. Through the Search for Expat Pinoy Children, we aim to engage them to actively participate in the growth and development of our nation,” Teresita B. Tan, BPI senior vice president and group head of Overseas Banking and Channels Services, said during the awarding.