Bank of the Philippine Islands (BPI), the country’s leading bank controlled by the country’s oldest conglomerate, Ayala Corp., has identified logistics as an emerging frontier for business financing opportunities as more companies expand their operations into the provinces.
Jose Teodoro “TG” Limcaoco, BPI president and CEO, said in an interview during the bank’s 175th anniversary that BPI’s financing for logistics companies is typically used to build warehouses, purchase storage equipment, and install the necessary infrastructure inside their facilities.
Limcaoco noted that logistics players are now expanding into the provinces where they see strong growth potential.
“This development is good so they can reach more people because unlike before where everything is in Metro Manila,” he added.
He further said companies, particularly consumer-oriented businesses, are now seeing greater potential in the provinces.
BPI has seen growth in the number of logistics companies in its loan portfolio since it began focusing on the sector three years ago. While Limcaoco could not provide exact figures for the amount of bank loans extended to the logistics sector, he said the portfolio has been growing significantly.
Financing is not limited to warehousing and vehicles used by logistics companies but also extends to the consumer side.
According to Limcaoco, the bank has also been expanding its financing offerings on the consumer side, including mobility financing.
As more electric vehicles (EVs) are introduced into the domestic market, he said BPI has also been supporting consumers with their mobility needs.
EV financing
Earlier, Maria Cristina L. Go, BPI executive vice president for consumer banking, said the bank’s financing for new energy vehicles (NEVs) reached PHP17 billion as of the second half of the year, up 157 percent year on year, as improved charging infrastructure encourages the rapid adoption of sustainable mobility solutions.
Go said NEVs now account for 13 percent of BPI’s total automotive loan portfolio of PHP131 billion accumulated over the past five years.
Aside from high oil prices, Go said improving EV infrastructure remains a key driver of EV sales. She noted that the EV charging ecosystem is expanding, with more charging stations available in malls, gas stations, and other facilities, while infrastructure is also being rolled out in the provinces.
“So there’s really demand and it’s growing because of the confidence in the infrastructure,” she added.
In terms of NEV brands, Go said BYD accounts for the largest share of the bank’s NEV financing portfolio, with AC Mobility, another Ayala subsidiary, serving as one of its major distributors.
However, Go clarified that even before BYD’s rise in popularity and the surge in oil prices, BPI had already been supporting sustainable mobility by offering financing for EVs and other green solutions, including solar power systems.
“We’ve always been in sustainability. We were the first bank to support sustainability financing,” she said.
Go noted that the bank’s green financing solutions were introduced about a year and a half ago.
“So even before BYD was big, even before oil prices were at this level, we already offered EV financing, and so on,” she pointed out.
Go also emphasized that BPI continues to provide auto loans for internal combustion engine (ICE) vehicles, although demand for NEVs has been growing significantly faster than demand for traditional vehicles.
The only deterrent to the growth of NEV adoption in the Philippines, she said, is supply.
