BPI Family plans to issue ₱35-B debt securities

Published December 12, 2019, 12:00 AM

by manilabulletin_admin

By James A. Loyola

BPI Family Savings Bank (BFSB), the consumer and retail banking arm of the Bank of the Philippine Islands (BPI), is planning to raise ₱35 billion via its proposed Three-Year Shelf Registration Debt Securities Program (DSP).

The planned ₱35-billion issuance has been assigned the top issuer rating of PRS Aaa (corp.) by Philippine Rating Services Corporation (PhilRatings). The rating has a Stable Outlook.

A company rated “PRS Aaa” has a very strong capacity to meet its financial commitments relative to that of other Philippine corporates.

“The assigned issuer rating to BFSB considers the bank’s solid brand equity; highly-experienced Board and management; sound capitalization; close strategic link with its strong Parent; and the favorable outlook for the consumer market,” PhilRatings said.

BFSB is the largest thrift bank in the country. As of June 30, 2019, BFSB led the thrift banking sector in terms of assets (21.9 percent market share), net loans and receivables (23.9 percent), deposits (23.4 percent), and capital (19.7 percent).

It also had double-digit market shares of the thrift banking sector’s housing and auto loans.

In the last five years (2014-2018), the bank’s retail loan portfolio recorded a compounded annual growth rate (CAGR) of 10.2 percent.

Growth was largely supported by real estate mortgage and auto loans, which represented 58.4 percent and 24.6 percent, respectively of total gross loans.

Outlook for the housing and auto loan markets, which are BFSB’s core businesses, are viewed as favorable. Going forward, housing and auto loans demand is expected to receive a strong boost from consumers’ optimistic sentiment, anchored on expectations of higher income, good governance, stable prices, and availability of jobs.

BFSB is seen as strategically important to Bank of the Philippine Islands and is, therefore, expected to receive strong support from its Parent. BFSB carries the BPI brand, and holds the retail and consumer banking franchise of the BPI Group.

In 2018, BFSB continued to significantly contribute to the BPI Group’s loans and deposits, as well as net income. Also, BFSB represented a significant portion of the BPI Group’s assets.