BPI to Focus on Growing its Loan Portfolio

Despite the eventual increase in interest rates, the Bank of the Philippine Islands (BPI) will focus on growing its loan portfolio, a bank official said on Sunday.

BPI global market strategist Antonio Paner said the bank’s overall strategy is to increase its loan book, adding that “the remaining funds available for investments would be placed in relatively shorter tenors as we expect interest rates to eventually rise.”

BPI has allocated a sizeable amount to invest in short-term vehicles, Paner said.

“As our loan-to-deposit ratio increases, the amount of funds available for investment contracts,” he said.

BPI’s earnings reached a record P18.8 billion at end-2013 on the back of better deposit levels and lending transactions, with an 18.1-percent return on equity and a 1.9-percent return on assets, report said.

Source: GMA News Online