BPI sees double-digit consumer loan growth

BANK of the Philippine Islands (BPI) expects its consumer loans to grow by 10% to 12% this year as it continues to expand its customer base and with its auto and home lending businesses staying strong.

“We’ve crossed the P100-billion mark in auto loans and crossed the P200-billion mark in housing loans. 10 to 12% would be growth in our total consumer loan portfolio,” BPI Head of Consumer Banking and Executive Vice-President Maria Cristina “Ginbee” L. Go said on the sidelines of an event last month.

BPI is targeting about 20 million customers for its consumer banking business this year, she said. “We’re already at about 15 million. We never thought it’s even possible to grow double our customer base three years ago, but we have.”

“We have more appetite for risk because we believe that our penetration of consumer lending is still very low,” Ms. Go said. “Our consumer loan growth has been extremely impressive, but of course we want to make sure that we’re also able to manage the risks.”

The bank’s nonperforming loan (NPL) ratios for the consumer segment remain “well managed,” the official said.

“We are way below industry. Housing loans were 200 bps (basis points) lower than industry [in 2024]. Auto loans were 80 bps lower than industry. We have room to grow, definitely.”

BPI’s overall NPL ratio stood at 2.13% in 2024, while its NPL coverage ratio was at 106.2%.

Ms. Go added that the bank has “a lot of room to grow” in terms of microfinance lending, teachers’ loans through its subsidiary Legazpi Savings Bank, which became part of BPI following its acquisition of Robinsons Bank Corp. (RBC) in 2024, as well as personal loans.

BPI expects customer acquisition via online channels to continue as it continues to streamline its application process, she said.

Currently, more than half or 55% of BPI’s new-to-bank clients are acquired through digital channels, while the remaining 45% is on-boarded through branches, Ms. Go added.

The bank is also working to digitize all its branches and is looking at adding 80 more reformatted or digitalized branches this year, she said.

“We have 858 branches now, which is the combination of BPI and RBC branches. We will continue on branch transformation and optimization because part of the branch transformation is to make sure that we have the optimal branch footprint and that we’re able to provide the customer experience in-branch in light of all the digital capabilities that we already have, and make sure that we have an omni-channel experience,” Ms. Go said. “The digital format leverages on our digital capabilities and improves the customer experience because we shouldn’t be just transacting centers — we are advisory centers.”

BPI is also consolidating its branch network, the official said.

“There are areas wherein we’re saturated, particularly in Metro Manila. So, we will continue to consolidate branches, particularly since Robinsons Bank branches are also in the same areas where we are… We will retain the ex-Robinsons Bank branches in Robinson’s malls, where, of course, they have strategic locations.”

BPI’s attributable net income rose by 20.04% to a record P62.05 billion last year from P51.69 billion in 2023. — Aaron Michael C. Sy