BPI looking to sustain 13% loan growth in 2026

Ayala-led Bank of the Philippine Islands (BPI) is looking to sustain its loan growth at a high of 13% in the coming year given the current liquidity levels in the market, with the lender hitting its target to have consumer and small business loans accounting for 30%.

According to BPI chief executive officer Jose Teodoro “TG” Limcaoco, the bank is looking to grow its loan book by 12% to 13% in 2026. BPI set the same target for 2025, with gross loans up 13.3% to P2.4 trillion in the first nine months of the year.

“We’re hoping in the next year we’ll grow probably 12 (percent), 13%, depends on the economy. Sustained,” he told reporters in an interview.

“I think banks will continue to grow. I think loan volumes will… loan outstanding volumes will continue to grow. There is sufficient liquidity in the market,” he added.

This comes as the Bangko Sentral ng Pilipinas (BSP) has continued to ease monetary policy, the latest being a 25-basis point cut in October to bring the target reverse repurchase rate to 4.75%, the overnight deposit rate to 4.25%, and the overnight lending facility rate to 5.25%.

Policy rates were also reduced by 25 basis points each at the Monetary Board’s meetings in August, April, and June.

“The BSP is lowering rates, right? So that will generate liquidity in the market… I mean, our loan growth at BPI and in my peer banks’ at 14%, that’s pretty healthy. We’ve not seen loan growth like that in a long time, right?” Limcaoco said.

BPI this year hit its target to have its non-institutional loans account for 30% of the total loan portfolio.

“We also have very strong loan growth in our consumer book, and decent in our institutional book. Our institutional book is growing like 10%, so I’m happy,” Limcaoco said.

Limcaoco also noted that while the country’s economic growth has slowed down to 4.0% in the third quarter, the slowest since the 4.3% in the second quarter of 2022, it remains to be faster than other economies across the globe.

“While people might be disappointed with the 4% growth, let’s remember the rest of the world is growing at 2%, so the Philippine economy is still growing. It’s not growing as fast as it used to, but it is still growing,” he said.

In terms of fundraising in the near term, Limcaoco said BPI will plan it against maturities or needs: “If there’s no need, we won’t raise.”

BPI chief finance officer and chief sustainability officer Eric Luchangco earlier this month said the issuance of blue bonds — designed to finance marine and ocean-based projects — is “inevitable” and could possibly come in the first half of 2026.

Blue finance covers sustainable water management, sustainable management of waste and wastewater; sustainable shipping; marine transportation, and port logistics; marine renewable energy; sustainable fisheries; sustainable tourism services; and solid waste management, among others.—AOL, GMA Integrated News