BPI bullish on 2003 performance

The Bank of the Philippine Islands (BPI) said yesterday that all indications point to an extremely good performance this year despite local and global challenges.

BPI has remained profitable through the years amid economic instability, its officials said. BPI’s net income last year reached P5.2 billion, or a 10.4 percent return on shareholders’ equity, while capital stood at P51 billion, five percent higher than the previous year and still one of the industry’s highest.

BPI’s auto and mortgage loan portfolio and credit card finance grew significantly, while increases were also seen in its other products and services, such as remittance, leasing, asset and trust management, corporate finance, Internet banking, apart from ventures into life and non-life insurance.

Due to this performance, BPI had been voted as the best emerging markets bank in the Philippines by British financial publication Euromoney, and best domestic commercial bank in the Philippines by The Asset and Asiamoney, both regional financial publications based in Hong Kong.

Overseas, the Hong Kong-based Far Eastern Economic Review and Finance Asia magazines had respectively cited BPI as "One of the Most Admired Companies" and "One of Asia’s Best Companies" this year.

The London-based financial magazine, Euromoney, gave BPI the "Best Bank Award for Excellence" for 2003. It was also honored as one of the "World’s Best Internet Banks in 2003" by Global Finance.In addition, BPI merited the highest grades ever given to a local bank from such rating agencies as FitchRatings and Standard & Poor’s."We have gone through every conceivable adversity in our more than 150 years of existence, but we consider the past five years as collectively one of the most challenging periods in our history," bank officials said in a statement.

BPI, in turning 152 years old today, has been a "consistent presence in the tumultuous history" of the Philippines, the statement added.

"The bank has survived uprisings, world wars and coup attempts, witnessed change of Presidents, and withstood economic adversities. More than weathering every conceivable trial and test, the bank has maintained an important role in the Philippine and Asian banking industry. It is a pioneer in the implementation — and popularization — of innovative banking products and services in the market," the officials said.

They also hastened to add that in the face of these achievements, the oldest bank in the Philippines and in Southeast Asia "is not about to rest on its laurels." The awards, honors, and the years of existence "only serve as fuel in its continued drive to excellence."

The bank is currently headed by chairman Jaime Zobel de Ayala, vice-chairman Jaime Augusto Zobel de Ayala II, and president Xavier P. Loinaz.

In 1851, El Banco Español Filipino de Isabel II, the forerunner of BPI, was established following a Spanish Crown’s royal decree. It changed its name to BPI in 1912 during the American Occupation to reflect the realities of the time.

In 1982, it revolutionized the banking industry by introducing the 24-hour automated teller machine (ATM). From 1998, it has made available to its clients such innovations as Internet banking, kiosk banking, express payment, and the call center.

Today, BPI operates the most extensive branch and ATM network in the local scene, with over 700 online branches, 1,200 ATMs, and 8,500 point-of-sales terminals.