BPI cuts market risks significantly in 3 years
Ayala-led Bank of the Philippine Islands (BPI) has significantly reduced market risks over a three-year period as it continued to focus more on its growing client base.
BPI chairman Jaime Augusto Zobel de Ayala said the bank has significantly reduced its held-for-trading and available-for-sale positions by 23 percent to P50 billion last year from P129 billion in 2012.
During the period, Zobel reported BPI managed to reduce its market-sensitive position to 17 percent by end 2015 from a high of 63 percent in 2012.
The bank’s investments in securities grew 13 percent to P295 billion last year from P205 billion in 2012.
On the other hand, Zobel reported a more balanced growth in its lending businesses as after it booked an 18 percent per annum increase in its loan portfolio since 2012 to P873 billion last year while its corporate loan booked increased by an average of 19 percent to P702 billion during the three year period.
Likewise, he added BPI’s total asset based posted a compounded growth of 15 percent to P1.52 trillion since 2012.
For his part, BPI president and chief executive officer Cezar Consing said 2016 is “shaping up very solidly” for the bank amid a sustained and deliberate focus on client needs.
“This year is shaping up very solidly. For our first quarter, we are beginning to see the work that we put into focusing on the client. It is beginning to pay off,” Consing said.
Over the last three years, he pointed out BPI has de-risked the bank gradually.
“Interest rates being the way they are, we saw less opportunity to take market risks. Market risks are now a smaller component of our business and we replaced that with client business,” he added.
BPI’s net income inched up by 1.1 percent to P18.23 billion last year while revenues rose 6.4 percent to P59.36 billion.
BPI has managed to grow its customer base by an average of eight percent since 2012 to 7.5 million in 2015 while the bank’s cross-sell rate of 2.87 products per customer is well above the industry average of two products per client.