Connect with us

Hi, what are you looking for?

News

BPI expects merger with Robinsons Bank to boost income, revenues

BW FILE PHOTO

BANK of the Philippine Islands (BPI) expects its net income to climb by 5-6% and its revenues to rise by around 7% once its planned merger with Robinsons Bank Corp. takes effect, its top official said.

“Robinsons Bank is expected to expand BPI’s key balance sheet metrics by between 6.5%, maybe 7%. As mentioned over the past years, Robinsons Bank has been really steadily growing its deposit and loan books at a pace much faster than industry,” BPI President and Chief Executive Officer Jose Teodoro “TG” K. Limcaoco said in a special stockholders’ meeting on Tuesday.

Shareholders of the Ayala-led bank owning 79.69% of total outstanding stocks approved the planned merger on Tuesday.

Mr. Limcaoco said the main advantage Robinsons Bank has that was factored into the projected revenue growth is its customer base’s strong digital adoption, with over 35% of their retail clients enrolled in its online app.

“So, we think that Robinsons Bank can potentially add about 7% to our revenues, and 5 to 6% to our net income,” he said.

Mr. Limcaoco added that the merger is expected to immediately improve BPI’s industry ranking in terms of deposits to second place from third currently.

He noted that Robinsons Bank’s current and savings (CASA) ratio of 83% is higher than BPI’s by 4% and it has “manageable asset quality,” which is not seen to have a negative impact on BPI’s.

The official said they see growth opportunities in Robinsons Bank’s lending book, including in the housing, salary, motorcycle and teachers loan segments and its “unique” credit card portfolio, and that he expects these to help in achieving BPI’s target to have consumer credit comprise 30% of its loan portfolio.

“They have a significant portion of their loan book as consumer loans, but really, their loan book is about 6% of the combined loans of BPI and Robinsons Bank. So, if the merger in and of itself will not really bring us to our aspirations of 30% consumer loans, what we will be doing is taking some of their products, some of their approaches, utilizing their ecosystem,” Mr. Limcaoco said.

He added that the merger is expected to take effect on Jan. 1, 2024 as they still need to secure some approvals from government agencies.

BPI booked a net income of P10.1 billion in the third quarter of 2022 amid higher revenues.

This brought the bank’s bottom line for the first nine months of 2022 to P30.5 billion, backed by higher revenues and lower provisions for loan losses.

BPI’s shares dropped by P2.10 or 1.87% to close at P110.30 apiece on Tuesday. — AMCS

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Editor’s Pick

<?xml encoding=”utf-8″ ??> Aspect is the well-known property maintenance company in London that is recognised for its signature yellow and blue vans, which are...

Editor’s Pick

<?xml encoding=”utf-8″ ??> The Wakelet Microsoft 365 Children’s Parliament backed by The Express, is proud to announce that James Caan CBE, the former Chairman...

News

THE TOWERING BUILDINGS of Makati’s central business district are seen in the background in this May 13, 2020 file photo. — PHILIPPINE STAR/ MIGUEL...

News

A Philippines peso note is seen in this illustration on June 2, 2017. — REUTERS THE PHILIPPINES could benefit from the proposed Maharlika Investment...

News

PASSENGERS queue before the check-in counters at the Ninoy Aquino International Airport (NAIA) Terminal 3 after flights were canceled due to technical issues on...

News

By Arjay L. Balinbin, Senior Reporter METRO PACIFIC Investment Corp. (MPIC) expects to generate P500 million in revenue from its dairy business by 2025,...

You May Also Like

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.