BANK of the Philippine Islands (BPI) will likely book robust loan growth this year following its January 1 merger with Robinsons Bank Corp. (RBank), Maybank Investment Banking Group said Wednesday.

The consolidation with RBank, with BPI as the surviving entity, should help the Ayala-led bank notch 15-percent year-on-year loan growth from its corporate and consumer lending business, Maybank said in a report.

Stripping off the impact of RBank's loans, the country's second-largest listed bank in terms of assets will still likely register a 10-percent year-on-year expansion in loans in 2024, Maybank added.

System integration following the merger will likely take approximately a year to complete, the investment bank said, adding that BPI was aiming "to grow RBank's motorcycle and teachers' loans."

BPI earlier this month reported that its total loans in 2023 reached P1.9 trillion, up 10.5 percent from the previous year, on a brisk improvement across all its portfolios.

The bank's total deposits last year climbed by 9.5 percent to P2.3 trillion, mainly from growth in time deposits, which tempered the decline in CASA, or current account savings accounts.

Maybank continued that BPI's efforts toward digitalization and rationalization of branches and manpower would likely result in higher fees and reduced costs this year.

"BPI now has 11 million customers, up by 18 percent year on year, with 52 percent of new clients acquired through digital channels. Transaction count grew by 1.54 times in fiscal year 2023, with 66 percent of total transactions done digitally," it noted.

"Known for its prudent cost management and strong IT (information technology) infrastructure, BPI has among the lowest cost-to-income ratios in the industry. Digital banking will also drive higher fees."

Digital spending, meanwhile, would likely remain elevated this fiscal year as BPI "implements new digital initiatives."

Potential risks to the bank's prospects this year include slower net interest margin growth due to stiffer competition in the corporate and consumer lending segments, and higher-than-expected funding expenses to retain depositors, Maybank added.

BPI shares on Wednesday closed P1 higher at P114.50 apiece.