BANK of the Philippine Islands (BPI) will tap a syndicated loan instead of offering dollar bonds to partly refinance $600 million in debt papers maturing this year.
“We’re going to refinance that maturity partially. But it won’t be a public issuance. We’re going to do it by a syndicated loan,” BPI Treasurer and Global Markets Head Dino R. Gasmen said at a press briefing on Thursday.
“We’re going to finance less, just a portion. We have the extra funds to pay off the entire debt,” he added.
Mr. Gasmen said BPI decided to raise funds via a syndicated loan instead of the previously planned dollar bonds due to a volatile market.
“The certainty of getting it done is better compared to a bond, because a bond issuance is subject to market conditions, and as we know, conditions right now are very volatile,” he said.
He added that BPI is unlikely to issue peso-denominated bonds this year.
Meanwhile, BPI Executive Vice-President and Mass Retail Segment Head Marie Josephine “Jojo” M. Ocampo said the bank has grown faster than the industry in terms of credit card spending for the first quarter amid the reopening of the economy.
“There also is very much a return to face-to-face spending, as well as travel, entertainment, and dining,” she said.
BPI’s credit card base grew year on year by 28% versus the industry’s 14.25%, while credit card loans grew by 38.7% versus the industry’s 29.8%. For card spending, BPI grew by 64.2%, compared with the industry’s 46.9%, Ms. Ocampo said.
“All these while being best in class in terms of delinquency rate,” she said.
“Our growth has really been driven by investments that had been put behind the credit card business in 2022 that had allowed us to acquire more customers and market share, as well as solidify spending among our cardholders to give their preferred card of choice,” Ms. Ocampo added.
BPI added that it is looking to refurbish 25 branches to “phygital” or physical plus digital offices within the year, with the first branch to be inaugurated in Agoo, La Union on May 19.
“Phygital is exactly the combination of physical and digital,” BPI Head of Consumer Banking and Executive Vice-President Maria Cristina “Ginbee” L. Go said.
The new branches will be enhanced with digital tools that will enable efficient and effective conversations, as well as better servicing of transactions, Ms. Go said.
New features to be seen in these branches include a concierge and a self-assisted area where customers can learn about online banking.
“We recognize that, particularly in areas outside Metro Manila, people still need help in terms of navigating the online and mobile world, particularly those who are not digital natives. We will help them get educated on online and mobile banking, which will be the self-assisted area,” Ms. Go said.
The new branches will also include meeting pods and rooms. Meanwhile, meeting rooms will give customers access to specialists virtually.
“Meeting pods will be really for those conversations that require some sensitivity and more personalization,” Ms. Go said.
“Our ability to now on-board customers digitally had allowed us to be more inclusive,” she added.
She said through their presence in GCash, BPI on-boarded 500,000 new bank clients, and 150,000 through its all-digital savings account.
BPI saw its net income rise by 52% year on year to P12.1 billion in the first quarter amid improved net interest earnings and as it set aside lower loan loss provisions.
Its shares fell by P1 or 0.93% to end at P109 apiece on Thursday. — A.M.C. Sy