BPI Family loan portfolio hits P211 B

MANILA, Philippines - BPI Family Savings Bank has reported a total retail loan portfolio of P211 billion at the end of May, half of which was accounted for by mortgage lending.

Mortgage lending reached P111 billion, or 53 percent of the total portfolio.

Auto loans hit P53 billion, accounting for a 25-percent share, while the balance was accounted for by small and medium enterprise (SME) and personal loans.

Majority of the SME loans was extended to entrepreneurs and new businesses.

Increasing business loans were noted in small-scale manufacturing, transportation, agriculture, real estate, and the tourism industry.

A lot of start-up businesses run by young professionals, who are former employees, fresh graduates and other millenials were also noted,” the thrift bank said.

More than 96 percent of all registered businesses in the Philippines are classified as SME.

The figure reaches over 98 percent if the micro level is included.

However, majority of the SMEs are located outside Metro Manila, and are unable to access credit from the formal banking sector.

“We are hoping we can duplicate our 2015 double digit growth rate,” said Natividad N. Alejo, BPI Family Savings president.

Last year, loans grew 19 percent to P206 billion.

 BPI Family’s lending portfolio has grown by over 20 percent on a compounded annual growth rate in the past five years.

Alejo said the Philippine economic fundamentals remain strong, noting that banks generally reflect the condition of the economy.

It is basically healthy not only in the cash-rich Metro Manila, but energetic in areas outside of Metro Manila as well.

Earlier, Alejo said the thrift bank of the Bank of the Philippine Islands (BPI) wanted to put up 19 more branches this year.

“They are all in the middle of the construction phase and it should all be operational by year end,” she said.

By end-June, new branches in Lucena, Baguio and Cabanatuan will be open for business.

BPI Family Savings presently operates 143 branches nationwide.