The Bank of the Philippines (BPI) will continue to digitize its services while reducing cyber security risks as more customers now feel more comfortable transacting online.
“I think for 2022, our budget for digital spending or technology is about 50% higher than in 2021. Much of this is going to cyber security,” said Jose Teodoro, chief executive officer of the BPI president. Limkaoko said in a media briefing. Virtual Annual Stockholders Meeting on Thursday.
In 2021, Ayla-led lenders spent P9 billion on technology and digital ventures, or about 9% of its total revenue in 2021, it said in a statement. It was to create and improve the customer platform and for its onboard partners for open banking business.
BPI Chief Operating Officer Ramon L. Jackson said they are expanding the bank’s internal capabilities as well as partnering to enhance their cyber security defenses.
“The cyber security elements that we spend primarily on monitoring and collaboration, and this through our Cyber Security Operations Center, which is linked to BAP’s (Bankers Association of the Philippines) Cyber Security Events Database and BSP (Bangko Sentral ng Pilipinas). “Mr Jackson said.
“The second level is that we spend on threat intelligence analysis. We get different feeds from different providers around the world, so if there are any vulnerabilities, we are notified immediately, ”he added.
Mr Jackson said they incur growing costs for on-boarding clients because of the costs associated with analysis and multi-factor authentication.
“We will continue to innovate banking so that we can better serve the growing needs of our customers. Digitization, customer obsession and sustainability remain our focus as we move forward into a post-epidemic environment, ”said Mr Limkaoko.
Meanwhile, BPI Chief Financial Officer Maria Theresa D. Marshall-Xavier says tightening the open monetary policy of Banco Central NG Polypinos will help raise interest rates on loans.
“It’s just a matter of time before we see our central bank raise interest rates, and that’s good for our balance sheet. This is good for about 70-80% of our loan books, which we expect higher refinancing due to higher interest rates, ”he said.
Mrs Marshall-Xavier said they expect a significant reduction in provisions this year, which could lead to a significant gain for the year as well as improved asset quality.
“You may have heard of Hanzin [Heavy Industries and Construction] Transactions, and this will allow us to reduce our NPL (Upperforming Loan) level by about 10 basis points, ”said Mrs. Marshall.
Cerberus Frontier, a US-based private equity firm, has been acquired. BPI is one of the local banks that has exposure to Korean shipbuilders
Meanwhile, BPI has signed two term loan agreements with a total of P77 billion, which will allow PLDT, Inc. to acquire telecom towers from international tower operator ComWorks Infratech Corp. And ISOC enabled edotco to sell to Towers, Inc. Sales total involved 6 5,907 telecom towers.
BPI Capital Corporation acted as a mandatory lead arranger, while BPI Asset Management and Trust Corporation was both a loan facility and a security agent.
“More than ever, connectivity plays an important role and BPI is committed to supporting such innovative and strategic acquisitions that will make a significant contribution to a better Philippines,” Mr Limkaoko said.
Ayla-led lender’s net income rose 59.6% to P8 billion fiFirst quarter from a year ago. As the quality of assets improved it was encouraged by the provision of higher interest earnings and lower debt losses.
Shares of BPI closed higher at PC at P96.95 on Thursday, rising fiSee cents or 0.05%. – Loose Wendy T. Nobel