News: BPI Family to hike lending in consumer, SME markets -
12 Jan 2008
BPI Family Savings Bank is planning to expand its loan portfolio by about 17 percent this year to meet the expected increased demand from the consumer and SME markets.
BPI Family, the thrift banking arm of the Ayala group of companies, currently has total outstanding loans of P65 billion.
BPI Family president Alfonso L. Salcedo Jr. said despite growing competition for the consumer and small and medium enterprise (SME) markets, the bank was able to build up its loan portfolio due to its vast network.
Aside from its 109 branches and 30 kiosks nationwide, BPI Family also operates eight business centers outside Metro Manila that focus mainly on the SME market. These are in Dagupan, Pangasinan; San Fernando, Pampanga; Lipa, Batangas; Cebu; Bacolod; Negros; Cagayan de Oro and Davao. Salcedo said of the total portfolio, roughly P15 billion were availed by SMEs, P25 billion in the mortgage market, and the balance spread out in the auto and individual loan market.
“Delinquency is generally benign,” he said, adding that the bank’s past due ratio was at a healthy 2.7 percent.
The bank’s SME client base are in manufacturing, trade, tourism, housing/property for rent like apartments and hostels, and tourism-related activities.
Of the total housing loans, 15 percent are held by overseas Filipino workers (OFWs) and migrant Filipinos.
Generally, mortgage loans have a repayment period of 10 years with fixed interest rates. However, the thrift bank has the flexibility to restructure bad or potential bad loans by extending the repayment period up to 25 years. BPI Family reported a net income of P1.4 billion in the first nine months of 2007