BPI sees strong business growth in Q1

The second largest bank says growth will be driven by the Philippines’ strong economic performance.

Bank of the Philippine Islands said it expects positive growth in its business, as well as its loans, in the first quarter of 2013.

CEO Aurelio R. Montinola III said that the first quarter “. . . will be quite positive. I think the big driver will be the investment grade of the country, as well as the bank’s. The mood is very positive.”

Montinola believes BPI achieved an 18% year-on-year loan growth in the first quarter. He also said the bank doesn’t need to raise capital to meet Basel III requirements, adding that it has programmed lending growth to be between 12% and 14% for 2013.

BPI officials agree with the general perception that the Philippines’ gross domestic product will be somewhere about 6% and that corporate earnings will continue to be healthy.

“Banks mirror the economy. Whenever the economy is doing well, there’s a tendency for banks to do well,” Montinola noted.