BDO Unibank Inc., the country's largest lender by asset size, remains the most attractive local bank for foreign investors as it continues to deliver the highest earnings, a key bank official claimed.
"The share price of BDO shows that. We're the consensus buy of all foreign fund managers," Frederico Rafael Ocampo, BDO senior vice president and chief investment officer, told The Manila Times last week.
"When you look at what the foreign fund managers are buying, it's BDO and SM ... If they can buy several stocks, BDO will be the bank of choice," he continued.
"Foreign investors are long-term investors. They cannot go in and out because it's costly for them. They're thinking, 'I need to be in banks in the Philippines. What bank will that be?' They've chosen BDO."
Markets expect the Sy family's banking unit to deliver a net income of close to P80 billion this year, making it the "most profitable" Philippine bank in history, Ocampo said.
With its diversified portfolio, BDO will hinge growth on continued improvement in loans, which are expected to maintain an upward trend as interest rates are projected to ease later this year.
BDO's gross customer loans grew by an above-industry rate of 9 percent to P2.85 trillion last year, driven by 14-percent growth in consumer lending, mostly from credit cards, and an 8-percent increase in loans to corporates and middle-market customers.
Loans will "continue to grow as interest rates move down," Ocampo said, noting that the country's financial sector has been preparing for the anticipated policy easing.
"As an investor, you cannot not be in banks. So now that the banks are correcting, that's the window to buy the banks. They're the big winners when interest rates are down," he added.
Assuming that lending would accelerate this year, Ocampo said BDO could begin tapping the market anew to borrow and cater to the growing demand for more loans.
While no new business ventures were identified yet, the bank would likely focus on improving its operations to provide better services to its clients.
"BDO will be doing the same things. We are the middlemen between those who have money and those who need money — the borrowers. We will continue to do that," he vowed.
"We will continue to look at wealth management; that's a priority for the group. We will also enhance our database so that we can see where customers are headed."
On the other hand, downside factors for growth include delayed monetary policy easing and continued geopolitical concerns, the bank executive added.
As of end-February 2024, BDO had the largest distribution network in the country, with more than 1,700 consolidated branches and over 4,800 automated teller machines nationwide.
BDO shares dropped 1.43 percent to close at P151.80 apiece on Monday.
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