The Bank of the Philippines Islands (BPI), which counts itself a strong supporter of sustainable financing, has brought down its exposure to coal loans from a high 45 percent of portfolio in 2020 to only 29 percent thus far this year.
This was learned from Maria Cristina “Ginbee” L. Go, executive vice president and head of consumer banking at BPI, at the recent meeting of members of Tuesday Club where she played host.
According to Go, BPI is one of the first banks in the Philippines to come out and support the United Nations Sustainable Development Goals (UN SDG) and the sharp reduction in exposure to coal financing in just three years betrays their commitment to promote responsible lending.
“We’re one of the first” banks to adopt net zero financing by 2050, Go said of their promise to reduce their exposure to activities that contribute to the buildup of greenhouse gasses as close to zero as possible.
She pointed out that in energy financing, over 55 percent of what BPI supports by way of loans are renewable energy-related programs or P91 billion of its P165 billion energy portfolio.
It was noted that the listed Ayala Corp. subsidiary ACEN is rated 98 percent renewable energy producer, seen as one of the highest across Asia and the Pacific.
“Sustainability is at the core of what we do.”
Maria Cristina “Ginbee” L. Go, executive vice president and head of consumer banking at BPI
As for consumer lending, Go reported a portfolio growing twice as fast as that demonstrated by the industry as a whole, with BPI consumer loan growth averaging 10 percent.
“Our regular housing loan is going strong at 10 percent year-on-year, the default rate, or non-performing of below 4 percent,” she said.
The low number is explained by the peculiar Filipino trait of sustaining the housing loan even if it means sacrificing all other necessities, Go said.
She also noted that loans as percent of local output or the gross domestic product (GDP) is one of the lowest in the region and an indication that the industry as a whole does not lend as much of its resources to those who need financing such as households.
“We have one of the lowest loans-to-GDP ratios and so we have not extended as much to those who need credit the most. We at BPI make sure credit remains accessible,” Go said. – Jun Vallecera
