BPI foresees slower loan growth in 2014

Due to higher interest rates and delays in PPP projects.

Bank of the Philippine Islands expects loan growth to range from 13% to 17% through 2014 year. It said its lending business would grow by 15% for 2013 on the back of demand from corporates and consumers.

The Philippines’ second largest lender said higher rates next year would slow down its trading business and net income growth. In H1, BPI’s lending grew 17% on-year as corporate loans rose 18% and consumer credit, 16%. BPI expects lending to slow next year because of the likelihood of higher interest rates and delays in the public-private partnership (PPP) projects of the government.

The latest report from the Bangko Sentral ng Pilipinas, the central bank, shows that the outstanding loan portfolio of the country's biggest banks, excluding money lent overnight to the central bank, grew 12.3% on-year in July or the same pace as in June. Including their reverse repurchase agreements with the BSP, the big banks' loan portfolio rose 11.7% last July, down from 13% the month before. Business loans, which accounts for four out of every five pesos lent, increased 11%, slower than the 12.2% in June.