NG debt hits record P16.63 trillion

April 2, 2025 | 12:34 am

By Aubrey Rose A. Inosante, Reporter

THE NATIONAL Government’s (NG) outstanding debt rose to a fresh high of P16.63 trillion as of end-February, the Bureau of the Treasury (BTr) reported.

Latest data from the BTr showed that the debt jumped by 1.96% from P16.31 trillion at the end of January.

Year on year, outstanding debt went up by 9.57% from P15.18 trillion as of end-February 2024.

“The rise was primarily driven by the net issuance of new domestic and external debt to support more public programs and projects,” the BTr said in a statement on Tuesday.

Despite hitting another record high, the Treasury said the outstanding debt “remains manageable.”

NG debt is the total amount owed by the Philippine government to creditors such as international financial institutions, development partner-countries, banks, global bondholders and other investors.

“Nevertheless, the increase was partially offset by the strengthening of the peso against the US dollar, which appreciated from P58.375 at the end of January to P57.99 at the end of February, helping manage foreign debt obligations,” it added.

The bulk or 67.5% of the total debt was owed to domestic creditors, while the rest was owed to foreign creditors.

“This financing mix reflects a prudent approach to debt management to help mitigate exposure to external risks while taking advantage of the country’s liquid domestic market,” the BTr said.

Domestic debt, which was composed of government securities, increased by 1.26% to P11.22 trillion as of end-February from P11.08 trillion as of end-January.

Year on year, it also rose by 6.12% from P10.58 trillion in February 2024.

“This was mainly due to P140.72 billion in net domestic financing, as the P268.25-billion gross issuance of government securities exceeded redemptions of P127.53 billion for the month,” the BTr said.

However, the rise in domestic debt was tempered by the peso appreciation against the US dollar, which reduced the overall valuation by P1.1 billion.

Meanwhile, external debt rose by 3.44% to P5.41 trillion from P5.23 trillion in the previous month.

Year on year, foreign debt climbed by 17.52% from P4.6 trillion.

“This was attributed to the net availment of foreign borrowing amounting to P193.71 billion and the P20.41-billion net appreciation effect on third currency-denominated debt,” the BTr said.

“However, these factors were partially offset by a P34.48-billion reduction due to the peso appreciation against the US dollar,” it added.

External debt was composed mainly of P2.53 trillion in loans, and P2.88 trillion in government securities.

“For the month, the NG secured a total of P197.3 billion in external financing, including P190.82 billion through a triple-tranche global bond issuance comprised of 10- and 25-year USD bonds ($2.25 billion), and 25-year EUR bonds (1 billion euros) and P6.48 billion in project loans,” the Treasury said.

The BTr said the project loans will fund rail projects through the Japan International Cooperation Agency (P3.86 billion) as well as physical connectivity and health sector efforts with the Asian Development Bank (P1.71 billion).

For February, NG-guaranteed obligations slipped by 1.49% to P341.11 billion as of end-February from the end-January level of P346.27 billion.

Year on year, it fell by 1.11% from P344.93 billion.

“The decrease resulted from the net repayment of both domestic and external guarantees, amounting to P5.83 billion and P0.15 billion, respectively,” the BTr said.

However, this was partially offset by the P1.43-billion net appreciation effect on third currency-denominated guarantees, it added.

Oikonomia Advisory and Research, Inc. Economist Reinielle Matt M. Erece said the increase in the debt level reflected new government borrowings.

“This trend may continue this year as the government plans to borrow again, mainly from domestic sources, to support their programs,” he said.

“Moreover, the forecasted peso depreciation against the US dollar may inflate the dollar value of foreign debt,” Mr. Erece added.

He also said the debt is still manageable “as long as the government continues to enhance its revenue generation, and (economic) growth exceeds the growth in expenditures.”

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the higher NG debt level is due to the need to finance the budget deficit.

“There is a need to bring down the share of debt servicing costs as a percentage of the total national budget as a test of the need for more tax reform and other fiscal reform measures to structurally narrow the budget deficit and curb the growth in overall debt in view of the large borrowings/debt since the COVID-19 pandemic,” he said.

Mr. Ricafort said there is a need to bring the NG debt-to-gross domestic product (GDP) ratio below the international threshold of 60%.

Outstanding debt as a share of GDP inched up to 60.7% as of end-2024 from 60.1% a year earlier.

The NG’s outstanding debt is projected to reach P17.35 trillion by end-2025.

Bank lending growth slows in February

April 2, 2025 | 12:33 am

By Aaron Michael C. Sy, Reporter

BANK LENDING growth slowed in February, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

Outstanding loans of universal and commercial banks rose by 12.2% year on year to P13.03 trillion in February from P11.61 trillion in the same period in 2024. This was slower than the 12.8% expansion in January, which was the fastest in two years.

Year on year, the growth in lending was faster than the 8.7% increase in February 2024.

On a seasonally adjusted basis, big banks’ outstanding loans inched up by 0.6% month on month.

Central bank data showed outstanding loans to residents climbed by 12.6% to P12.7 trillion in February, slower than the 13.3% growth in January.

Meanwhile, loans to nonresidents declined by 3.2% to P324.82 billion in February, slightly better than the 3.5% decline in the previous month.

Outstanding loans to residents for production activities expanded by 11.2% to P11.08 trillion last month, slower than 11.8% in January.

“The growth was driven largely by increased lending to key industries such as electricity, gas, steam and air-conditioning supply (21.5%); wholesale and retail trade, repair of motor vehicles and motorcycles (13.7%); manufacturing (0.9%); construction (12.7 %); and transportation and storage (20.6%),” the BSP said.

On the other hand, consumer loans jumped by 24.1% in February to P1.62 trillion, slightly slower than 24.4% in the previous month.

BSP data showed credit card loans rose by an annual 28.9% to P950.97 billion in February.

Loans for motor vehicles went up by 19.2% to P470.13 billion in February, while salary-based general purpose consumption loans rose by 11.5% to P158.16 billion.

“Loan growth still grew on a month-on-month basis. The year-on-year growth is still among the fastest in more than two years and also more than twice faster than GDP (gross domestic product) growth,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Bank lending’s continued expansion in February was also supported by lower borrowing costs, he added.

Since August last year, the central bank has brought down benchmark interest rates by a total of 75 basis points (bps) to 5.75%.

The Monetary Board kept benchmark rates unchanged at its Feb. 13 meeting.

For the next few months, Mr. Ricafort said the BSP’s further easing could lift demand for loans.

BSP Governor Eli M. Remolona, Jr. said last week that there is a “good chance” that the Monetary Board will cut rates by 25 bps at their April 10 review.

He said the BSP remains on an easing cycle and could reduce borrowing costs by as much as 75 bps this year, depending on data.

MONEY SUPPLY
Meanwhile, domestic liquidity (M3) grew by 6.3% in February, slower than the 6.8% expansion in January, preliminary BSP data showed.

M3 — which is considered as the broadest measure of liquidity in an economy — increased to P17.98 trillion from P16.92 trillion a year earlier.

Month on month, M3 dipped by 0.3% on a seasonally adjusted basis.

Data from the BSP showed domestic claims increased by 10.1% during the month, slower than 10.9% in January.

“Claims on the private sector grew by 12.3% in February from 13.1% in the previous month, driven by continued expansion in bank lending to nonfinancial private corporations and households,” the BSP said.

The growth in net claims on the central government eased to 5.9% in February from 7.4% in the previous month due to lower National Government borrowings.

Meanwhile, growth in net foreign assets (NFA) in peso terms quickened to 5.8% last month from 2.6% in January.

“The BSP’s NFA expanded by 8.9%, reflecting the increase in gross international reserves. Meanwhile, the NFA of banks declined, largely due to higher foreign currency-denominated bills and bonds payable,” it added.

Real estate lending to require closer monitoring amid rising risks — BSP

April 2, 2025 | 12:32 am

Manila-Buildings-skyline — Dark clouds hover over Metro Manila, March 18, 2025. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Luisa Maria Jacinta C. Jocson, Senior Reporter

LENDING to the real estate sector will need tighter supervision amid emerging risks that could impact the financial system, a Philippine central bank report showed.

“Real estate loan (REL) exposures need closer monitoring amid evolving market conditions,” the Bangko Sentral ng Pilipinas (BSP) said in its latest financial stability report.

“The high-interest rate environment, shifting consumer preferences, remote work arrangements and recent government pronouncements banning Philippine offshore gaming operators (POGO) have implications on the sector’s loan quality.”

Latest data from the BSP showed Philippine banks and trust entities’ real estate exposure ratio rose to 19.75% as of end-December from 19.55% at end-September.

The central bank monitors lenders’ exposure to the real estate industry as part of its mandate to maintain financial stability.

Broken down, real estate loans increased by 7.9% year on year to P2.95 trillion at end-December. This as residential real estate loans climbed by an annual 9.6% to P1.1 trillion, while commercial real estate loans went up by 6.9% to P1.85 trillion.

The BSP also noted the rise in nonperforming loans in the real estate sector. Data showed the bulk or 62.5% of the NPL portfolio consists of commercial real estate.

“However, majority of the nonperforming RELs are residential RELs at 65.2% against commercial RELs at 34.8% as of September 2024,” it added.

The BSP also said that the rise in bad loans was driven by the mid- and low-cost housing segments as they account for a large share in residential loans.

“What does not show up as higher NPLs for commercial real estate are likely to be seen in the financial statements of real estate developers,” it added.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said consumers could be struggling to pay back their loans, which is why developers are finding ways to offer more flexible payment terms.

“Based on anecdotes that we have been getting, a lot of buyers right now are scouting and looking for the most attractive payment terms or incentives, especially in the ready-for-occupancy (RFO) market,” he said in a phone call.

Mr. Bondoc said there is a “pretty substantial” number of unsold RFO units in the market, especially in the mid-income segment, which covers nearly 60% of unsold RFO units.

“Essentially, six out of 10 unsold RFO (units) are from the mid-income segment, which is heavily dependent on bank mortgages,” he added.

He noted some developers are extending downpayment terms among other measures to make financing more accessible.

“Banks should also be more cautious moving forward because the ready-for-occupancy (RFO) promos are getting sweeter, they’re getting extended, but you don’t want to see the market falling into that trap again,” Mr. Bondoc said.

The BSP noted the oversupply in the property market, especially in the condominium segment. It noted it would take 34 months for the current condominium supply to be sold.

“Despite recovery in prices, vacancies remain elevated amid the increase in residential real estate supply,” the central bank said.

The rise in new units is outpacing net take-ups in the secondary market, it added.

“It will be very interesting this first quarter because we’re seeing tepid launches. Developers are almost not launching new projects at this point,” Mr. Bondoc said.

OTHER RISKS
Meanwhile, the BSP also flagged other risks to the real estate sector.

“A potential risk is the buildup of in-house financing as reflected in the installment contract receivables of real estate developers. These contribute to revenues but also expose developers to credit risk.”

“Past due and impaired receivables remain elevated including in real estate developers exposed to POGOs,” it added.

While property developers are seeking ways to provide more enticing payment terms, Mr. Bondoc noted it is unlikely that there will be significant price reductions.

However, he noted that once the central bank continues cutting interest rates, this would result in lower mortgage rates.

“Probably that’s when we might start seeing low interest rates having a positive impact, kicking in and resulting in lower mortgage rates. Therefore, perhaps chipping in to greater take-up in the pre-selling sector.”

Housing prices rose by 6.7% year on year in the fourth quarter, according to the latest Residential Real Estate Price Index. This was a turnaround from the 2.3% decline in the previous quarter.

The Monetary Board cut the key rate by a total of 75 basis points last year.

While the central bank delivered a pause at its first meeting in 2025, BSP Governor Eli M. Remolona, Jr. has said it is still on an easing trajectory and has signaled further rate cuts this year.

Apart from lower interest rates, real estate loan demand could also be impacted by remittance flows, Mr. Bondoc said.

“I think that will be crucial because data from the central bank would also show that more remittance-receiving households are in fact allocating money for real estate requirements,” he said.

The BSP’s latest Consumer Expectations Survey also showed that 5% of households plan to buy or acquire real property in the next 12 months, up from 4.8% a year ago.

Domestic trade in goods jumps by 23% in 2024 as economy picks up

April 2, 2025 | 12:31 am

Trucks-vehicles-road — Trucks are seen along the South Luzon Expressway. — PHILIPPINE STAR/MIGUEL DE GUZMAN

DOMESTIC TRADE in goods grew by 23.1% to P1.31 trillion in 2024, reflecting the uptick in overall economic activity, analysts said.

According to the Philippine Statistics Authority’s (PSA) Commodity Flow in the Philippines report, the value of goods traded rose to P1.31 trillion in 2024 from the revised P1.07 trillion in 2023.

This was a turnaround from the 3.1% contraction in 2023.

By volume, domestic trade likewise rose by 8.4% to 30 million tons from the revised 27.66 million tons in 2023.

The PSA reported that the majority of the commodities that flowed within the country in terms of value were traded through water.

Domestic trade by value is the outflow value of commodities transported from the place of origin to the destination.

Philippine Chamber of Commerce and Industry (PCCI) Chairman George T. Barcelon attributed the increase in domestic trade in 2024 to the economy’s performance.

In 2024, the Philippine economy expanded by 5.6% from 5.5% a year earlier.

Mr. Barcelon said the improved domestic trade data reflect the government’s investments in infrastructure projects and increased foreign direct investments.

In 2024, seven out of 10 traded commodity groups monitored by the PSA grew by value.

Food and live animals, which accounted for the largest share of trade in terms of value at 35.6%, rose by 96.6% to P466.65 billion in 2024. By volume, it climbed by 48.8% to 8.55 million tons.

The value of machinery and transport equipment fell by 15% to P308.23 billion in 2024, accounting for 23.5% of domestic trade. By volume, it declined by 46.5% to 2.89 million tons.

Manufactured goods rose by 12.5% to P175.5 billion. In terms of volume, it grew by 15.6% to 3.95 million tons.

“Food items are still the primary driver of growth of domestic trade, especially as foreign exchange concerns and global supply-chain uncertainty make locally sourced food items more attractive,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc. said in an e-mail.

Mr. Erece also noted that the National Capital Region continues to be the primary hub for higher value-added items, particularly manufactured goods, contributing to the high value of outflows from the region.

Among regions, Metro Manila posted the largest value of traded commodities with total outflows amounting to P451.41 billion for a trade surplus of P225.11 billion.

The National Capital Region (NCR) accounted for 34.4% of the total value of domestic trade in 2024.

This was followed by Western Visayas with traded commodities reaching P313.07 billion for a trade surplus of P134.15 billion. The region accounted for 23.9% of domestic trade.

Central Visayas followed with P135.02 billion, bringing the trade deficit to P101.43 billion.

Meanwhile, in terms of favorable trade balance among the regions, NCR led the regions with P225.11 billion. Western Visayas trailed with P134.15 billion and Central Luzon with P51.69 billion.

On the other hand, regions with the most unfavorable trade balances were Central Visayas (P101.43-billion trade deficit), Calabarzon (P93.69-billion trade deficit) and Caraga (P83.27-billion trade deficit).

According to the PSA, the trade balance is the difference between the outflow value and inflow value.

Mr. Erece said low inflation, especially for food items, may have increased demand for locally sourced goods in the first quarter.

“The increasing international trade tensions and foreign exchange worries can also make local sources a viable alternative to imports,” Mr. Erece said in a Viber message.

He said the ongoing election season will likely boost domestic trade.

“The growth brought by the election season may materialize during the second quarter,” Mr. Erece said. — Abigail Marie P. Yraola

East West Banking Corp. to hold virtual Annual Stockholders’ Meeting on April 24

April 2, 2025 | 12:30 am

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

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BDO Unibank, Inc.: Notice of 2025 Annual Stockholders’ Meeting (Second Publication)

April 2, 2025 | 12:30 am

BDO Unibank, Inc. will hold its Annual Stockholders’ Meeting on April 25, 2025, Friday, at 2:00 p.m., at the Forbes Ballroom 1, Third Floor, Conrad Manila, and will be livestreamed for stockholders participating remotely.

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by publishing their stories on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.

Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.

Manila Water moves forward with P95-B capex through 2027

April 2, 2025 | 12:09 am

EAST ZONE concessionaire Manila Water Co., Inc. said it is continuing its P95-billion capital expenditure (capex) program for water and wastewater projects, which began in 2023 and will run until 2027.

“Manila Water will be undertaking considerable fundraising activities to support its substantial operating and capital expenditures from 2023 to 2047, intended primarily for water security, service accessibility, service continuity, and environmental sustainability programs,” the company said in its approved 2023 rate rebasing service improvement plan (RR23SIP).

For water supply projects, Manila Water’s proposed investments include the Wawa-Kaysakat-Pasig Water Supply System and Long-Term East Line Projects, based on its RR23SIP.

Among the major projects expected to be completed is the second phase of the East Bay Water Treatment Plant, which has a capacity of 200 million liters per day (MLD) of water.

“This system project is expected to result in an increase in water service coverage, serving Pasig, Pateros, Taguig, and Talim Island after its target completion. This new water source shall also de-load the Angat water system and serve as an augmentation source for Metro Manila,” said Manila Water.

For wastewater projects, the company is anticipating the completion of the Hinulugang Taktak Sewage Treatment Plant (STP) by the third quarter of 2025.

The facility will treat used water generated within the catchment area before discharging to Hinulugang Taktak Falls, meeting the priority requirement of the local government of Antipolo concerning the preservation of the falls.

Another project is the Mandaluyong West STP, which is designed to treat domestic wastewater generated from the western area of Mandaluyong, south of San Juan South, and south of Quezon City.

The STP is slated for completion by the third quarter of 2025.

Manila Water serves the east zone network of Metro Manila, covering parts of Marikina, Pasig, Makati, Taguig, Pateros, Mandaluyong, San Juan, portions of Quezon City and Manila, and several towns in Rizal province. — Sheldeen Joy Talavera

SM Prime sets sights on premium residential development

April 2, 2025 | 12:08 am

By Revin Mikhael D. Ochave, Reporter

REAL ESTATE company SM Prime Holdings, Inc. is entering the country’s premium residential market.

“The premium segment is shock-resistant,” SM Prime Holdings Executive Vice-President and Premium Residential Line Head Jose Juan Z. Jugo said in an interview with BusinessWorld.

“It can weather storms better than the broader market. It is more resilient. SM is seeing the opportunity to move to a wider spectrum of residential products with the premium market. There is enough space in this segment for another large player,” he added.

In November last year, SM Prime announced the expansion of its residential portfolio into the high-end horizontal and vertical principal homes, bolstering its current economic, mid-range, and leisure residential offerings.

The company is aiming to launch its first upscale residential project this year. It is a master-planned subdivision designed with a strong focus on sustainability, convenience, and community.

“We’re ready to work hard. We already are working hard. Definitely, this first project will make a significant impact in the high-end segment,” Mr. Jugo said.

“SM Prime is so big. When a company is this big, you have to start thinking about where you are going to get the growth. What an organization this large needs is a new engine. Hopefully, this will provide that to a certain extent,” he added.

He noted that the new venture aims to leverage the company’s expertise in creating upscale, large-scale developments, similar to its success in the mall sector.

“These new SM malls, they’re beautiful and very upscale. However, they also have not left behind the broader segment in the retail market. They’ve been able to adapt from being a very broad-based market leader to now entering and succeeding in high-end retail,” he said.

“If we do what we’re expected to do, we now become a full-line residential developer, from economic all the way to ultra-luxury. We’re trying our best to move the needle toward the upper spectrum,” he added.

Mr. Jugo brings over 23 years of real estate experience to SM’s new venture. He previously served as the executive vice-president of listed luxury property developer Shang Properties, Inc. until July 2023.

He was also the managing director of Ayala Land Premier, Inc., vice-president of Ayala Land, Inc., and director, chief executive officer, and non-independent executive director of Malaysian real estate developer MCT Bhd., now known as Avaland Bhd.

Mr. Jugo has a graduate degree from Escuela Superior de Estudios de Marketing de Madrid and an undergraduate degree from De La Salle University.

“What can be expected is that, because we’re a very large company, it will be a continuing thing. We do not expect to do just one premium project and then call it a day. It will be a succeeding series of high-end projects if we do things right,” Mr. Jugo said.

“The land is there. The resources are there. The commitment of the principals is there. We are being given leeway to grow our own organization the way we think we should to succeed. It will be a long-term thing,” he added.

Real estate consultancy firm Colliers Philippines said that demand for premium residential units is recovering, led by a cash-rich market.

It also advised property developers to prioritize the upscale and luxury segments due to steady demand amid market challenges.

“We’re creating our own brand. Right now, we are all SM Development Corp. (SMDC). However, we will eventually have our own brand, logo, and even our own legal entity. It is a development company for the premium segment. SMDC will be mid-market. We will be upper market,” Mr. Jugo said.

“It’s a startup. I tell my team members that this is a startup. Even our mindset has to be different. We’re building the organization,” he added.

SM Prime has earmarked P100 billion in capital expenditure for its malls, residences, and integrated property developments this year.

For 2024, the company posted a 14% increase in its consolidated net income to P45.6 billion as revenue climbed by 10% to P140.4 billion.

SM Prime’s portfolio consists of 87 local malls, 22 office towers, and more than 185,000 residential units launched. It is the real estate subsidiary of Sy-led conglomerate SM Investments Corp.

MPH plans to acquire at least 4 hospitals this year

April 2, 2025 | 12:07 am

Asian-Hospital-and-Medical-Center — Asian Hospital and Medical Center — ASIANHOSPITAL.COM

METRO PACIFIC Health Corp. (MPH) is aiming to acquire at least four hospitals this year, the company’s president said.

“The last two years were rather good, with four transactions made in 2023 and 2024… I’m hoping we can do the same, if not more, this year,” MPH President and Vice-Chair Augusto P. Palisoc, Jr. said during a recent briefing.

Mr. Palisoc said that MPH has been in talks with many hospitals for possible acquisitions.

“That’s what we do every day. We talk to all the hospital owners and try to find the deals that are more imminent and are already ripe,” he said.

MPH currently has 27 hospitals in its portfolio. The company’s latest acquisition took place in November last year with the addition of the City of General Trias Doctors Medical Center, Inc. in Cavite.

MPH is the healthcare arm of the Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC).

MPIC Chief Finance, Risk, and Sustainability Officer June Cheryl Cabal-Revilla said MPH experienced double-digit growth in both revenue and net profit last year.

“The (profit) contribution is P560 million (in 2024) versus P330 million (in 2023), increasing by 50%. We actually added more hospitals. There is a plan to add more,” she said.

“From an organic standpoint, on a same-facility basis, we’re seeing growth even without the added hospitals. Our healthcare group is doing very well. Double-digit growth across all financial metrics, from revenues down to core income. This is due to increases in inpatient and outpatient census,” she added.

Some of the other hospitals under the MPH network include Makati Medical Center, Asian Hospital and Medical Center, Cardinal Santos Medical Center, Davao Doctors Hospital, and Riverside Medical Center.

For 2024, MPIC recorded a 41% jump in its attributable net income to P28.2 billion due to non-recurring gains from its real estate business and a lower interest bill.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.

Hastings Holdings Inc., a unit of the PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

BPI sees double-digit consumer loan growth

April 2, 2025 | 12:06 am

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

FDC boosts 2025 capex by 20% to P24 Billion

April 2, 2025 | 12:06 am

One-Filinvest-Ortigas-Filinvest-Land-Inc-original — ONE FILINVEST IN ORTIGAS AVENUE — FILINVEST.COM

GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) has allocated a P24-billion capital expenditure (capex) budget for 2025 to drive growth.

The conglomerate’s 2025 capex is 20% higher than the P20 billion set aside for 2024, FDC Chief Finance Officer Ven Christian S. Guce said during a briefing last week.

“Forty-seven percent of that will go into the expansion projects of our real estate. These are projects that are already ongoing or nearing completion. Forty percent will go into expanding the different portfolios of our segments, such as hotels, investments in renewables, and investments in our core power business,” Mr. Guce said.

“Ten percent will go into digitalization, which will improve operational efficiencies across the group,” he added.

FDC President and Chief Executive Officer Rhoda A. Huang said the conglomerate is on track with its roadmap of posting an average annual profit growth of 20% over the next five years.

“In terms of a roadmap towards that (growth), when we look at the year-to-date performance, it’s currently tracking. This is going to be consumption-led growth,” Ms. Huang said.

When asked about international business ventures, Ms. Huang said the company has seen opportunities but is focusing on businesses that complement its existing portfolio.

“I have not seen anything interesting enough to bring that forward. What we are trying to focus on will be businesses that will complement existing businesses,” she said.

Mr. Guce said the company’s current portfolio is sufficient to sustain growth over the next five years.

“Just looking at our portfolio, at least for the next five years, it’s enough to sustain the level of growth we want to achieve without having to look outside,” Mr. Guce said.

Last year, FDC recorded a record-high attributable profit, up by 36% to P12.1 billion, as total revenue and other income likewise rose by 22% to a record-high of P113.4 billion.

The conglomerate has interests in the banking sector through East West Banking Corp., the real estate business through Filinvest Land, Inc. and Filinvest Alabang, Inc., and the power sector through FDC Utilities, Inc.

It is also present in the hotel sector through Filinvest Hospitality Corp., in the sugar business through Pacific Sugar Holdings Corp., and in the infrastructure sector through a 42.5% stake in Luzon International Premier Airport Development Corp., which operates Clark International Airport.

FDC shares were last traded on March 28, closing unchanged at P4.90 per share. — Revin Mikhael D. Ochave

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April 2, 2025 | 12:05 am

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