PHILIPPINES Business Bank (PBB) is looking to grow its business in consumer loans.
Part of a three-pronged strategy of the fourth largest savings bank in the Philippines is its bid to gain a license to operate as a universal bank.
PBB in particular wants to widen its reach in the salary loan market, according to Rolando Avante, PBB president.
Avante said PBB has “steadily grown” its market for salary loans over the last two years.
“We are also slowly building the base into taking a look at the motorcycle lending business. We all know that this business has started to grow during the pandemic, as after seeing that the supply side for motorcycles, together with the continued demand for good transportation coming in, that will form part of the business strategy that we are looking at at the level of the consumer,” Avante said in a recent forum.
Joseph Jeabin Segui, PBB head of corporate finance, in the same forum said the bank eyes to grow its consumer loan to 20 percent of its loan mix compared to the present 7 percent.
Sequi also said that complements the bank’s thrust on strategic acquisition and partnership as well as upgrade PBB into a universal bank.
The bank continues to explore acquisitions that can provide strategic value to help it grow, added Segui.
PBB is “at the cusp” of hitting the required P20 billion in capital to be classified as a universal bank, said Segui.
“We’re confident definitely that by next year we’ll be there, so we continue to gear up and prepare towards this,” he said.
Avante said the bank feels confident about its prospects to be a universal bank by next year on the back of its search for a strategic partner as well as the bank’s growth prospects.
“(Our) capitalization, as mentioned, is at P18.5 billion, P20 billion is the minimum capital for a universal bank. So given our search for a strategic business partner and the organic profitability growth that we foresee by the second half of the year, I think it is something forthcoming or within our reach,” he said.
