Jaime Augusto Zobel de Ayala, chairman of Bank of the Philippine Islands (BPI), said the lender is closely tracking the escalating crisis in the Middle East, emphasizing that its direct exposure to the region remains minimal even as global risks rise.
“The conflict in the Middle East is complex and volatile,” Zobel said, noting that BPI is actively assessing potential spillover effects on both the Philippine economy and its own operations. He warned that the geopolitical strain has already contributed to elevated global prices, with the risk of further increases should tensions persist.
A key concern, he added, is the potential impact on overseas Filipino workers (OFWs) in the region. Any disruption to employment or sustained inflationary pressures could dampen remittance flows and household consumption, a critical driver of domestic growth.
Despite these risks, Zobel underscored that BPI’s direct financial linkages to the region are limited. “Less than 20% of our remittances originate from the Middle East. We have no lending or investment exposure to companies based there, and consumer loans to OFWs in the region account for only a small portion of our overall portfolio,” he said.
The bank, he stressed, remains on solid footing. BPI is “well-capitalized and highly liquid,” supported by a diversified loan book and robust risk management systems. Regular stress testing and scenario analysis are in place to help the bank withstand potential external shocks.
Zobel added that while higher oil prices and softer consumer demand could weigh on select sectors, BPI continues to monitor developments closely, positioning itself to respond swiftly to evolving global conditions.
