CEO INTERVIEW

Could you share with us BPI’s growth targets over the next 12-24 months?

Our strategy remains the same — stay true to our roots and be focused on our journey of banking excellence anchored on trust and the best digital offers.

Our goal for this year is to surpass our achievements from the previous year. Our strategic plan is to maintain our competitive edge, expand customer base, and increase shareholder value. We aim to be the undisputed leader in digital banking, achieve a greater share of SME and consumer loans, close the gap in funding leadership, and transform the role of branches in the new normal.

From here on and until 2026, we will continue to focus on our key strategic priorities of digitalisation, customer obsession, and sustainability. We will be growing the BPI ecosystem through digitalisation, and capitalise on technology to serve the needs, and anticipate the wants of our different market segments. We will carry on with initiatives to nurture our relationships with our clients and make their lives easier.

Lastly, we will strengthen our efforts to champion sustainability. We will help create a sustainable future by further incorporating ESG principles in the way we do business, whilst ensuring concrete economic benefits are derived from these sustainability initiatives.

What would you say are the current concerns and challenges affecting the Philippine banking industry?

Whilst demand for services worldwide has remained firm, manufacturing may underperform in the coming year as demand for goods continues to slow. Higher cost of living and borrowing costs in most major economies is the main culprit and has increased the probability of recession.

A prolonged period of elevated inflation may also drag consumer spending in the Philippines in 2023. Better access to consumer credit since 2022 has offset some of the drag from inflation but is not expected to avert an impending slowdown in consumption.

Another factor that could pull down growth in 2023 is the increase in interest rates. Monetary policy usually works with a lag, and the full impact of rate hikes in

2022 will likely be felt more in 2023 and in early 2024. Higher refinancing costs may discourage businesses from ramping up their capital expenditures, which is historically proven to be a key driver.

But despite these circumstances, Philippine banks will stay resilient amidst headwinds. Interest rates have gone up, but the impact on economic activity and lending will not be disruptive. A manageable slowdown in loan growth may happen as businesses adjust to higher rates.

The country will do well, supported by a young, confident, digitally oriented population. BPI will do just as well, as we focus on this segment to help in building a better Philippines.

In your opinion, what does the future of banking look like — and where do you see BPI in this said future?

The future of banking will still focus on digitalisation and sustainability. New technology and new players in the industry will come in, impacting the competitive landscape. The number of digital savvy and young consumers who may view banking services differently from the traditional view of previous generations will increase.

On the other hand, we see an evolving regulatory landscape with the thrust toward digitalisation, sustainability, and financial inclusion of the BSP (Bangko Sentral ng Pilpinas or the central bank) and SEC (Securities and Exchange Commission). New laws may affect the traditional operating model, credit card caps, amongst others.

As for BPI, aside from our digital transformation journey, we will continue to focus on customer obsession. Likewise, we shall move forward with sustainability as core to our business and an integral factor on how we make decisions. We will remain focused on banking excellence anchored on trust and the best digital offers. Committed to promoting financial inclusion in the country, we are determined to make banking products and services more accessible to more people.