BPI sees double-digit growth in loans to small businesses
BANK of the Philippine Islands (BPI) expects its loans to small businesses to post double-digit growth this year, an official said.
The Ayala-led bank’s loans to small firms that have annual incomes of P3 million to P50 million stood at P12.1 billion last year, BPI Business Banking Head Dominique R. Ocliasa told reporters at the launch of its online and app-based loan application service for small and medium enterprises (SMEs).
“The prognosis of the industry is at 10% [loan growth] exiting 2023. I think we’re going to do better than that… because I don’t think we’re going to see a shift in ticket sizes. Especially where we are in small SMEs, I think the ticket sizes will more or less be the same,” Mr. Ocliasa added.
He said they see the wholesale, retail, trade, agricultural businesses, travel, food, business transportation, and construction sectors driving SME loan growth.
Mr. Ocliasa added that the potential cuts in benchmark rates, especially after May inflation eased, could contribute to the growth of BPI’s Business Banking segment.
Headline inflation slowed for a fourth straight month to 6.1% in May.
Still, this marked the 14th straight month that it breached the central bank’s 2-4% target.
The Bangko Sentral ng Pilipinas (BSP) on May 18 paused its tightening cycle and kept its key rate unchanged at 6.25% for the first time after nine meetings.
Since it began its aggressive monetary tightening cycle in May 2022, the central bank had raised borrowing costs by 425 bps.
BPI on Tuesday launched Ka-Negosyo on the Go to boost onboarding and loan disbursements for SMEs.
Mr. Ocliasa said he expects the Ka-Negosyo on the Go platform to contribute 25% to 50% to merchant acquisition.
He added that the platform will allow for faster loan approvals for interested businesses.
BPI is also planning to integrate the loans offered in Ka-Negosyo on the Go into its Agency Banking platform in Lazada soon.
Ka-Negosyo offers three main products: the Credit Line, the Ready Loan, and the SME Loan.
BPI booked an attributable net income of P12.134 billion in the first quarter, 51.98% higher year on year.
Its shares went up by P1.30 or 1.29% to end at P102 apiece on Tuesday. — AMCS
