CEBU, Philippines — The Bank of the Philippine Islands (BPI) is poised to spend more on digital-banking expansion this year, while expressing interest to acquire the retail banking business of Citibank.
During the BPI annual stockholders meeting virtual press briefing, newly appointed BPI president Teodoro Limcaoco announced that it is serious to expand its leadership in digital banking and that bigger chunk of its capital expenditure for the year will go to digital banking initiatives.
Limcaoco, who is also a “digital native” and used to work for global technology company IBM in the past, said BPI is poised to take its digital banking leadership higher. While it readies to spend on technology advancement, training and re-skilling people, it will also adapt prudent spending.
The BPI top executive also announced the bank’s interest of acquiring the Philippine business of Citibank, which plans to give up its consumer and retail banking segment in the Philippines.
In its recent pronouncement, Citi plans to exit its consumer franchises in 13 jurisdictions—Australia, Bahrain, China, India, Indonesia, Korea, Malaysia, the Philippines, Poland, Russia, Taiwan, Thailand and Vietnam. It will keep the institutional businesses in these markets. According to the company, this move is part of its global downsizing program.
Limcaoco admitted that BPI has always been an admirer of Citi’s retail and consumer banking business in the Philippines, saying “We’ve always looked at it but we never believed that Citibank would ever give up on the Philippines.”
He said if given the opportunity, BPI has sufficient funds to assume Citi’s large consumer base or domestic assets. “It’s an excellent franchise.”
Meanwhile, BPI reported a 21.7-percent decline in its net income in the first quarter of 2021, owing the to a one-off tax adjustment as provided by the new tax law.
The Ayala-led universal bank net income hit P5 billion in the first three months this year.
The bank also officially announced its merger with thrift bank subsidiary BPI Family Savings Bank pending approval, as part of the company’s move to enhance the overall banking experience of customers.