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April 21, 2024

Bank of Commerce sees faster economic growth. loan growth

Bank of Commerce led by bankero Michelangelo Aguilar sees the country’s gross domestic product (GDP) growing by five to seven percent this year resulting to higher credit growth.

The bankero told the stockholders of the banking unit of San Miguel Corp. during their online annual meeting that the bank’s loan book would book a double-digit growth this year after expanding by four percent last year

“Putting these in the proper context, we have set our minds to overcome the challenges and maximize the opportunities that 2022 presents,” Aguilar said in his presentation.

According to Aguilar, Bank of Commerce aims to build its accrual income by also focusing on fee income from its trust and trade finance businesses, foreign exchange flows as well as pursue campaigns to sell and reduce its inventories of foreclosed assets.

The San Miguel-led bank booked a 50 percent jump in net income to P1.2 billion last year from P784 billion in 2020 despite the challenges brought about by the ongoing global health crisis.

With the steady global economic reopens, the bank also expects remittances from overseas Filipino workers (OFWs).

To boost its interest income, Bank of Commerce sees the Bangko Sentral ng Pilipinas (BSP) raising interest rates to as high 50 basis points to 2.5 percent this year from an all-time low of two percent.

The San Miguel-led bank is also looking at launching its first investment banking deals this year.