Bank of the Philippine Islands
Encyclopedia
Bank of the Philippine Islands (Spanish
: Banco de las Islas Filipinas, commonly known as BPI; ) is the oldest bank
in the Philippines
still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank. It is owned by the Ayala Corporation
- the largest conglomerate in the Philippines, and is based in Makati's Central Business District, on the corner of Ayala Avenue and Paseo de Roxas.
BPI is also the oldest bank in Southeast Asia
and has a long and distinguished history that spans over a century
. It has either influenced or has been influenced by many nations, including parts of the former Spanish Empire
, especially Mexico
, and the United States
. While it is considered by many as an old institution, BPI is trying to promote itself as a dynamic institution that caters to its various client
s, which hail from various sectors of Philippine society.
BPI also pioneered rural banking in the Philippines, as its countryside banking operations preceded that of many other banks' rural banking operations by many years. Today, it maintains a large rural branch network, with some branches dating bank to the Spanish or American colonial periods. Its branch network of 831 branches is by far the largest branch network of any bank in the Philippines.
The bank has received several awards from various financial magazines, such as Euromoney the Far Eastern Economic Review
, The Banker
, Euromoney, Finance Asia, and Global Finance . Its most recent award was from Asiamoney
. In April 2010, which the bank was awarded as the Philippines' Strongest Bank. In 2009, the bank bags 10 awards as the Best Domestic Bank; Best Local Cash Management Bank in the Philippines as voted by Small-Sized Corporations; Best Local Cash Management Bank in the Philippines as voted by Medium-Sized Corporations; Best Local Cash Management Bank in the Philippines as voted by Large-Sized Corporations; Best Domestic Provider of FX Services in the Philippines as voted by Corporates; Best Domestic FX Provider of FX Prime Broking Services in the Philippines as voted by Corporates; Best Domestic FX Provider of Single-Bank Electronic Trading Platform.
BPI was established on August 1, 1851 as the Banco Español- Filipina de Isabel II (Spanish-Filipino Bank of Isabel II), named after the queen of Spain
, Isabella II
, the daughter of former king Ferdinand VII. The bank was the second Philippine bank during the Spanish era after a bank was founded by Francisco Rodriguez, a Filipino Quaker based in London
, in 1830. Today, Rodriguez's bank no longer exists.
The royal decree establishing the Banco Español-Filipino also gave it the power to print Philippine currency, the first time the Philippine peso
was printed in the country (before 1851, a multitude of currencies were used, most notably the Mexican peso
). They were originally called pesos fuertes (PF), or "strong pesos". First printed on May 1, 1852, they were reedemable at face value for gold or silver Mexican coins. The first deposit with the bank was also done on that day by a man named Fulgencio Barrera. Three days later, a Chinese man named Tadian became the first borrowing client of the bank after the bank discounted to him a promissory note
amounting to ten thousand pesos fuertes.
On September 3, 1869, following a revolution which overthrew Isabella II, the name was changed to Banco Español-Filipino. In January 1892, the bank moved from the Royal Custom House in Intramuros to the new business district of Binondo, north of the Pasig River
after it found out that Intramuros was becoming "economically inactive". It moved to 4 Plaza Cervantes, which was at that time a prime property owned by the Dominican friars.
The first branch of Banco Español-Filipino outside Manila
was opened in Iloilo
on March 15, 1897. However, the idea to set up branches outside Manila was formulated as far back as the 1850s, with the first branch planned to be opened in Bacolor
, the capital of Pampanga
at the time. But by then, Iloilo and other provinces in Panay became more productive than Pampanga in the sugar industry, hence the move to open the first branch in Iloilo, which was then the Queen City of the South.
Following the cession of the Philippines to the United States
following the signing of the 1898 Treaty of Paris, the bank changed from a Spanish institution to a Philippine one. On January 1, 1912, a decision by the shareholders of Banco Español-Filipino changed the name to the present Bank of the Philippine Islands (BPI), or Banco de las Islas Filipinas in Spanish
. The basis for the name change was Act
No. 1790, passed on October 12, 1907, which permitted the bank to change its name. The bank was also privatized during the American colonial period.
Following World War II
, BPI was actively involved in the post-war reconstruction of the Philippines. In 1949, with the establishment of the Central Bank of the Philippines (now the Bangko Sentral ng Pilipinas
), BPI (and other banks issuing Philippine currency) lost the right to issue Philippine pesos, a right it had since the Spanish colonial era and (with competition from other banks) during the American colonial period.
In 1969, Ayala Corporation
, which had been affiliated with BPI since its establishment in 1851, became the dominant shareholder of BPI and eventually made BPI into the flagship of Ayala's financial entities.
Starting in the 1970s, BPI has been involved with many mergers and acquisitions. The first merger occurred in 1974 with BPI's acquisition of the People's Bank and Trust Company. Major notable acquisitions include Citytrust Savings Bank, a unit of Citibank
, in 1996 and Far East Bank and Trust Company on April 7, 2000. The merger with Far East Bank is arguably one of the largest in the Philippine banking history(The largest merger before that was the EBC-PCI Merger but since then surpassed by the BDO-EPCI Merger). In 2002 with the acquisition of DBS Bank Philippines, a subsidiary of DBS Bank
. However, the BPI-DBS deal permitted DBS Bank to hold a stake in BPI. The latest acquisition occurred in 2005 with the acquisition of Prudential Bank.
In 1982, BPI became a universal bank
, and in 2000, became the Philippines' first bancassurance
firm, being the first Philippine bank to offer insurance services after acquiring the insurance companies of the Ayala Group, the parent company of the Ayala Corporation. Within that year, BPI also founded the BPI Direct Savings Bank
, an Internet
bank, which launched BPI into 21st century banking.
Today, BPI has maintained a leadership position in consumer banking, trust banking and asset management, corporate banking/corporate finance and bancassurance. BPI boasts of having the country's largest combined network of branches/kiosk units and ATMs: over 830 branches with over 1,700 ATMs. 20,000 point-of-sale terminals nationwide to support its delivery of services, with over 300 corresponding banks worldwide, with 11,925 employees servicing more than 3 million depositors. Its asset management division - BPI Asset Management, is the industry leader and country's largest in trust and investment management with over P490 billion (US$11.26 billion) in total assets under its asset management division alone as of December 2010. Total assets reached P877 billion (US$19.71 billion) as of December 2010. BPI managed total funds (deposits - [P720 billion] and trust assets - [P490 billion] combined as of December 2010) amounting to P1.21 trillion (US $27.82 billion), making it the country's second largest in the banking industry.
BPI was named as the Top Commercial Bank for OFW Remittances for the third year in a row and was elevated to the BSP Hall of Fame. This outstanding performance in the remittance services was replicated in 2008 as volume picked up by another 35.4%, well ahead of the industry growth rate.
Aided by the bank's risk management policies, BPI was the only major bank with no exposure to Lehman Brothers, AIG and the subprime mortgage industry. The bank also ably managed market risks by adhering to prudential Value at Risk (VAR) limits and reduced its trading books by 21%. Net 30-day non-performing loans ratio (BSP version) improved to 2.9%, and non-performing assets dropped below 10%.
In December 2008, BPI issued P5.0 billion (US$105.26 million) in 10-year subordinated debt eligible as Lower Tier 2 capital out of a BSP-approved P15.0 billion (US$315.79 million) issuance. The issue was well received and fully subscribed. Yearend capital was lower at P63.9 billion (US$1.35 billion), as actual dividend payments of P8.0 billion (US$168.42 million) exceeded the net income for the year and on lower market valuation of securities. Overall capital adequacy ratio of 14.1% remained sufficient and well above the 10% regulatory minimum.
BPI's market capitalization stood at P210.0bn (US$4.83 billion), the highest among the listed banks, notwithstanding the 24.9% drop in the stock price. The bank retained its CAMELS 4 rating in the annual BSP examination, and was assigned a National Long-term Rating of AAA(phl) rating by FitchRatings.
On December 8, 2010, BPI bagged a deal to take over the local fund management business of Dutch financial giant ING. That deal will turn the Ayala-led bank into an investment powerhouse. Making its first major acquisition since the buyout of Prudential Bank from the Santos family in 2005, the 159-year-old BPI will soon manage P78.4 billion in assets currently under ING Investment Management's care, making BPI the country's largest investment house. Under the terms of the agreement, BPI will acquire 100 percent of ING Bank Manila's trust assets. The acquisition is subject to certain conditions, including regulatory approvals.
BPI also maintains a specialized network of remittance centers for servicing overseas remittances from contract workers and other Filipinos working abroad. At present, BPI has remittance centers and desks located in Hong Kong, USA and Europe.
For years, international publications and rating agencies have given annual awards to BPI as one of the best banks in the region. Among these are the Far Eastern Economic Review, The Banker, Euromoney, Asiamoney, BusinessWeek, The Asset, Global Finance, Finance Asia, Alpha Southeast Asia, and The Asian Banker.
BPI has been consistently cited for its above-average profitability, sufficient capital/assets, low-cost funding base and manageable non-performing loan levels. Fitch Ratings noted that BPI has a comprehensive risk management which is superior to that of its peer banks, and this serves as an important element in keeping BPI better positioned in Philippine banking in the years ahead.
BPI is divided into the following subsidiaries and affiliates:
¹ Includes DBS Bank
² Voting powers are under the authority of the Archbishop
BPI's main competitor are BDO and Metrobank
. However, other competitors include Land Bank of the Philippines
, Philippine National Bank
, RCBC
, DBP
, and Citibank Philippines
.
BPI does not compete with its two banking partners: BPI Family Savings Bank and BPI Direct Savings Bank
. Instead, they offer different levels of services based on the needs of the potential BPI client(s).
BPI is highly regarded as one of the best Philippine banks. It has received a multitude of awards which are listed below:
BPI is known for its firsts which are listed below:
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
: Banco de las Islas Filipinas, commonly known as BPI; ) is the oldest bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank. It is owned by the Ayala Corporation
Ayala Corporation
Ayala Corporation is a holding company for the diversified interests of the Ayala Group. Founded in the Philippines by the Spanish and German Ayala, Roxas, and Zobel families during colonial rule, it is the country's oldest and largest conglomerate...
- the largest conglomerate in the Philippines, and is based in Makati's Central Business District, on the corner of Ayala Avenue and Paseo de Roxas.
BPI is also the oldest bank in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
and has a long and distinguished history that spans over a century
Century
A century is one hundred consecutive years. Centuries are numbered ordinally in English and many other languages .-Start and end in the Gregorian Calendar:...
. It has either influenced or has been influenced by many nations, including parts of the former Spanish Empire
Spanish Empire
The Spanish Empire comprised territories and colonies administered directly by Spain in Europe, in America, Africa, Asia and Oceania. It originated during the Age of Exploration and was therefore one of the first global empires. At the time of Habsburgs, Spain reached the peak of its world power....
, especially Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...
, and the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. While it is considered by many as an old institution, BPI is trying to promote itself as a dynamic institution that caters to its various client
Consumer
Consumer is a broad label for any individuals or households that use goods generated within the economy. The concept of a consumer occurs in different contexts, so that the usage and significance of the term may vary.-Economics and marketing:...
s, which hail from various sectors of Philippine society.
BPI also pioneered rural banking in the Philippines, as its countryside banking operations preceded that of many other banks' rural banking operations by many years. Today, it maintains a large rural branch network, with some branches dating bank to the Spanish or American colonial periods. Its branch network of 831 branches is by far the largest branch network of any bank in the Philippines.
The bank has received several awards from various financial magazines, such as Euromoney the Far Eastern Economic Review
Far Eastern Economic Review
The Far Eastern Economic Review was an English language Asian news magazine started in 1946. It printed its final issue in December 2009. The Hong Kong-based business magazine was originally published weekly...
, The Banker
The Banker
The Banker is an English-language monthly international financial affairs publication owned by The Financial Times Ltd. and edited in London...
, Euromoney, Finance Asia, and Global Finance . Its most recent award was from Asiamoney
Asiamoney
Asiamoney is a financial publication established in 1989. It is a division of global media group Euromoney Institutional Investor PLC, itself majority owned by the London-based Daily Mail and General Trust Group....
. In April 2010, which the bank was awarded as the Philippines' Strongest Bank. In 2009, the bank bags 10 awards as the Best Domestic Bank; Best Local Cash Management Bank in the Philippines as voted by Small-Sized Corporations; Best Local Cash Management Bank in the Philippines as voted by Medium-Sized Corporations; Best Local Cash Management Bank in the Philippines as voted by Large-Sized Corporations; Best Domestic Provider of FX Services in the Philippines as voted by Corporates; Best Domestic FX Provider of FX Prime Broking Services in the Philippines as voted by Corporates; Best Domestic FX Provider of Single-Bank Electronic Trading Platform.
History
BPI was established on August 1, 1851 as the Banco Español- Filipina de Isabel II (Spanish-Filipino Bank of Isabel II), named after the queen of Spain
Spain
Spain , officially the Kingdom of Spain languages]] under the European Charter for Regional or Minority Languages. In each of these, Spain's official name is as follows:;;;;;;), is a country and member state of the European Union located in southwestern Europe on the Iberian Peninsula...
, Isabella II
Isabella II of Spain
Isabella II was the only female monarch of Spain in modern times. She came to the throne as an infant, but her succession was disputed by the Carlists, who refused to recognise a female sovereign, leading to the Carlist Wars. After a troubled reign, she was deposed in the Glorious Revolution of...
, the daughter of former king Ferdinand VII. The bank was the second Philippine bank during the Spanish era after a bank was founded by Francisco Rodriguez, a Filipino Quaker based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, in 1830. Today, Rodriguez's bank no longer exists.
The royal decree establishing the Banco Español-Filipino also gave it the power to print Philippine currency, the first time the Philippine peso
Philippine peso
The peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
was printed in the country (before 1851, a multitude of currencies were used, most notably the Mexican peso
Mexican peso
The peso is the currency of Mexico. Modern peso and dollar currencies have a common origin in the 15th–19th century Spanish dollar, most continuing to use its sign, "$". The Mexican peso is the 12th most traded currency in the world, the third most traded in the Americas, and by far the most...
). They were originally called pesos fuertes (PF), or "strong pesos". First printed on May 1, 1852, they were reedemable at face value for gold or silver Mexican coins. The first deposit with the bank was also done on that day by a man named Fulgencio Barrera. Three days later, a Chinese man named Tadian became the first borrowing client of the bank after the bank discounted to him a promissory note
Promissory note
A promissory note is a negotiable instrument, wherein one party makes an unconditional promise in writing to pay a determinate sum of money to the other , either at a fixed or determinable future time or on demand of the payee, under specific terms.Referred to as a note payable in accounting, or...
amounting to ten thousand pesos fuertes.
On September 3, 1869, following a revolution which overthrew Isabella II, the name was changed to Banco Español-Filipino. In January 1892, the bank moved from the Royal Custom House in Intramuros to the new business district of Binondo, north of the Pasig River
Pasig River
The Pasig River is a river in the Philippines that connects Laguna de Bay to Manila Bay. Stretching for , it is lined by Metro Manila on each side...
after it found out that Intramuros was becoming "economically inactive". It moved to 4 Plaza Cervantes, which was at that time a prime property owned by the Dominican friars.
The first branch of Banco Español-Filipino outside Manila
Manila
Manila is the capital of the Philippines. It is one of the sixteen cities forming Metro Manila.Manila is located on the eastern shores of Manila Bay and is bordered by Navotas and Caloocan to the north, Quezon City to the northeast, San Juan and Mandaluyong to the east, Makati on the southeast,...
was opened in Iloilo
Iloilo City
The City of Iloilo is a highly urbanized city in the Philippines and the capital city of Iloilo province. It is the regional center of the Western Visayas, as well as the center of the Iloilo-Guimaras Metropolitan Area...
on March 15, 1897. However, the idea to set up branches outside Manila was formulated as far back as the 1850s, with the first branch planned to be opened in Bacolor
Bacolor, Pampanga
Bacolor is a 3rd class municipality in the province of Pampanga, Philippines.-Demographics:According to the latest census, it has a population of 25,238 people in 3,029 households.-History:...
, the capital of Pampanga
Pampanga
Pampanga is a province of the Philippines located in the Central Luzon region. Its capital is the City of San Fernando, Pampanga. Pampanga is bordered by the provinces of Bataan and Zambales to the west, Tarlac and Nueva Ecija to the north, and Bulacan to the southeast...
at the time. But by then, Iloilo and other provinces in Panay became more productive than Pampanga in the sugar industry, hence the move to open the first branch in Iloilo, which was then the Queen City of the South.
Following the cession of the Philippines to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
following the signing of the 1898 Treaty of Paris, the bank changed from a Spanish institution to a Philippine one. On January 1, 1912, a decision by the shareholders of Banco Español-Filipino changed the name to the present Bank of the Philippine Islands (BPI), or Banco de las Islas Filipinas in Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...
. The basis for the name change was Act
Republic Acts of the Philippines
This article contains a partial list of Philippine laws. Philippine laws have had various nomenclature designations at different periods in the history of the Philippines, as shown in the following table:...
No. 1790, passed on October 12, 1907, which permitted the bank to change its name. The bank was also privatized during the American colonial period.
Following World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, BPI was actively involved in the post-war reconstruction of the Philippines. In 1949, with the establishment of the Central Bank of the Philippines (now the Bangko Sentral ng Pilipinas
Bangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
), BPI (and other banks issuing Philippine currency) lost the right to issue Philippine pesos, a right it had since the Spanish colonial era and (with competition from other banks) during the American colonial period.
In 1969, Ayala Corporation
Ayala Corporation
Ayala Corporation is a holding company for the diversified interests of the Ayala Group. Founded in the Philippines by the Spanish and German Ayala, Roxas, and Zobel families during colonial rule, it is the country's oldest and largest conglomerate...
, which had been affiliated with BPI since its establishment in 1851, became the dominant shareholder of BPI and eventually made BPI into the flagship of Ayala's financial entities.
Starting in the 1970s, BPI has been involved with many mergers and acquisitions. The first merger occurred in 1974 with BPI's acquisition of the People's Bank and Trust Company. Major notable acquisitions include Citytrust Savings Bank, a unit of Citibank
Citibank
Citibank, a major international bank, is the consumer banking arm of financial services giant Citigroup. Citibank was founded in 1812 as the City Bank of New York, later First National City Bank of New York...
, in 1996 and Far East Bank and Trust Company on April 7, 2000. The merger with Far East Bank is arguably one of the largest in the Philippine banking history(The largest merger before that was the EBC-PCI Merger but since then surpassed by the BDO-EPCI Merger). In 2002 with the acquisition of DBS Bank Philippines, a subsidiary of DBS Bank
DBS Bank
DBS Bank Ltd is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank....
. However, the BPI-DBS deal permitted DBS Bank to hold a stake in BPI. The latest acquisition occurred in 2005 with the acquisition of Prudential Bank.
In 1982, BPI became a universal bank
Universal bank
A universal bank participates in many kinds of banking activities and is both a commercial bank and an investment bank.The concept is most relevant in the United Kingdom and the United States, where historically there was a distinction drawn between pure investment banks and commercial banks. In...
, and in 2000, became the Philippines' first bancassurance
Bancassurance
The Bank Insurance Model , also sometimes known as 'Bancassurance', is the term used to describe the partnership or relationship between a bank and an insurance company whereby the insurance company uses the bank sales channel in order to sell insurance products.BIM allows the insurance company to...
firm, being the first Philippine bank to offer insurance services after acquiring the insurance companies of the Ayala Group, the parent company of the Ayala Corporation. Within that year, BPI also founded the BPI Direct Savings Bank
BPI Direct Savings Bank
BPI Direct Savings Bank, a wholly owned subsidiary of Bank of the Philippine Islands , is the Philippines’ first internet bank operating in a generally paperless environment with no defined geographical boundaries....
, an Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
bank, which launched BPI into 21st century banking.
Today, BPI has maintained a leadership position in consumer banking, trust banking and asset management, corporate banking/corporate finance and bancassurance. BPI boasts of having the country's largest combined network of branches/kiosk units and ATMs: over 830 branches with over 1,700 ATMs. 20,000 point-of-sale terminals nationwide to support its delivery of services, with over 300 corresponding banks worldwide, with 11,925 employees servicing more than 3 million depositors. Its asset management division - BPI Asset Management, is the industry leader and country's largest in trust and investment management with over P490 billion (US$11.26 billion) in total assets under its asset management division alone as of December 2010. Total assets reached P877 billion (US$19.71 billion) as of December 2010. BPI managed total funds (deposits - [P720 billion] and trust assets - [P490 billion] combined as of December 2010) amounting to P1.21 trillion (US $27.82 billion), making it the country's second largest in the banking industry.
BPI was named as the Top Commercial Bank for OFW Remittances for the third year in a row and was elevated to the BSP Hall of Fame. This outstanding performance in the remittance services was replicated in 2008 as volume picked up by another 35.4%, well ahead of the industry growth rate.
Aided by the bank's risk management policies, BPI was the only major bank with no exposure to Lehman Brothers, AIG and the subprime mortgage industry. The bank also ably managed market risks by adhering to prudential Value at Risk (VAR) limits and reduced its trading books by 21%. Net 30-day non-performing loans ratio (BSP version) improved to 2.9%, and non-performing assets dropped below 10%.
In December 2008, BPI issued P5.0 billion (US$105.26 million) in 10-year subordinated debt eligible as Lower Tier 2 capital out of a BSP-approved P15.0 billion (US$315.79 million) issuance. The issue was well received and fully subscribed. Yearend capital was lower at P63.9 billion (US$1.35 billion), as actual dividend payments of P8.0 billion (US$168.42 million) exceeded the net income for the year and on lower market valuation of securities. Overall capital adequacy ratio of 14.1% remained sufficient and well above the 10% regulatory minimum.
BPI's market capitalization stood at P210.0bn (US$4.83 billion), the highest among the listed banks, notwithstanding the 24.9% drop in the stock price. The bank retained its CAMELS 4 rating in the annual BSP examination, and was assigned a National Long-term Rating of AAA(phl) rating by FitchRatings.
On December 8, 2010, BPI bagged a deal to take over the local fund management business of Dutch financial giant ING. That deal will turn the Ayala-led bank into an investment powerhouse. Making its first major acquisition since the buyout of Prudential Bank from the Santos family in 2005, the 159-year-old BPI will soon manage P78.4 billion in assets currently under ING Investment Management's care, making BPI the country's largest investment house. Under the terms of the agreement, BPI will acquire 100 percent of ING Bank Manila's trust assets. The acquisition is subject to certain conditions, including regulatory approvals.
BPI also maintains a specialized network of remittance centers for servicing overseas remittances from contract workers and other Filipinos working abroad. At present, BPI has remittance centers and desks located in Hong Kong, USA and Europe.
For years, international publications and rating agencies have given annual awards to BPI as one of the best banks in the region. Among these are the Far Eastern Economic Review, The Banker, Euromoney, Asiamoney, BusinessWeek, The Asset, Global Finance, Finance Asia, Alpha Southeast Asia, and The Asian Banker.
BPI has been consistently cited for its above-average profitability, sufficient capital/assets, low-cost funding base and manageable non-performing loan levels. Fitch Ratings noted that BPI has a comprehensive risk management which is superior to that of its peer banks, and this serves as an important element in keeping BPI better positioned in Philippine banking in the years ahead.
Subsidiaries and Affiliates
BPI is divided into the following subsidiaries and affiliates:
- 1851 Club Inc.
- AF Holdings & Mgt. Corp.
- AF Merchants Inc.
- AF Money Brokers Inc.
- Ayala Life Assurance Inc.
- Ayala Plans Inc.
- BPI Bancassurance Inc.
- BPI Capital Corp.
- BPI Computer Systems Corp.
- BPI Direct Savings Bank Inc.
- BPI Family Savings Bank
- BPI Forex Corp.
- BPI Foundation, Inc.
- BPI International Finance Ltd.
- BPI Investment Mgt. Inc.
- BPI Leasing Corp.
- BPI Operations Mgt. Corp.
- BPI Paseo de Roxas Condominium
- BPI-Philam Life Assurance
- BPI Rental Corp.
- BPI Securities Corp.
- BPI/MS Insurance Corp.
- CityTrust Realty Corp.
- CityTrust Securities Corp.
- Far East Bank Speed
- FCP Credit Corp.
- FEB Insurance Brokers, Inc.
- FEB Management, Inc.
- FEB Savings Bank
- FEB Stock Brokers Inc.
- Filinvest Algo Financial Corp.
- First FarEast Development Corp.
- Greentop Condominium Corp.
- Santiago Land & Dev't Corp.
- Shenton Corp.
- Zodiac Realty Corp.
Ownership
- PCD Nominee CorporationPCD Nominee CorporationPCD Nominee Corporation is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines...
: 35.55% (30.17% Filipino, 5.38% non-Filipino) - Ayala CorporationAyala CorporationAyala Corporation is a holding company for the diversified interests of the Ayala Group. Founded in the Philippines by the Spanish and German Ayala, Roxas, and Zobel families during colonial rule, it is the country's oldest and largest conglomerate...
: 23.28% - Ayala DBS Holdings¹: 21.43%
- Roman Catholic Archdiocese of ManilaRoman Catholic Archdiocese of ManilaThe Roman Catholic Archdiocese of Manila or Archdiocese of Manila is a particular Church or Diocese of the Catholic Church in the Philippines. It is also considered as the primatial see of the country, currently headed by the Archbishop of Manila and it enjoys primacy over the other dioceses in...
²: 8.51% - BPI directors and officers: 0.08%
- Public stock: 11.15%
¹ Includes DBS Bank
DBS Bank
DBS Bank Ltd is a bank incorporated in Singapore. It was previously known as The Development Bank of Singapore Limited, before the present name was adopted in July 2003 to reflect its changing role as a regional bank....
² Voting powers are under the authority of the Archbishop
Competition
BPI's main competitor are BDO and Metrobank
Metropolitan Bank and Trust Company
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance. Metrobank is the second largest bank in the Philippines.-History:...
. However, other competitors include Land Bank of the Philippines
Land Bank of the Philippines
Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...
, Philippine National Bank
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...
, RCBC
Rizal Commercial Banking Corporation
The Rizal Commercial Banking Corporation was established in 1960 as a development bank and is licensed by the Bangko Sentral ng Pilipinas for both commercial and investment banking...
, DBP
Development Bank of the Philippines
The Development Bank of the Philippines , commonly known by its initials, DBP, is a state-owned development bank in Makati, Philippines.It is the seventh-largest bank in the Philippines in terms of assets, and is the second-largest...
, and Citibank Philippines
Citibank Philippines
Citibank Philippines is the Philippines chapter of Citibank. Since its establishment in 1902, Citibank Philippines has played a central role in shaping the financial infrastructure and development of the country.-History:...
.
BPI does not compete with its two banking partners: BPI Family Savings Bank and BPI Direct Savings Bank
BPI Direct Savings Bank
BPI Direct Savings Bank, a wholly owned subsidiary of Bank of the Philippine Islands , is the Philippines’ first internet bank operating in a generally paperless environment with no defined geographical boundaries....
. Instead, they offer different levels of services based on the needs of the potential BPI client(s).
Awards
BPI is highly regarded as one of the best Philippine banks. It has received a multitude of awards which are listed below:
- The BankerThe BankerThe Banker is an English-language monthly international financial affairs publication owned by The Financial Times Ltd. and edited in London...
: The Best Bank in the Philippines, 2005, 2006, 2008, 2009 - AsiamoneyAsiamoneyAsiamoney is a financial publication established in 1989. It is a division of global media group Euromoney Institutional Investor PLC, itself majority owned by the London-based Daily Mail and General Trust Group....
: Best Domestic Commercial Bank, 2004, 2005, 2006 Best Cash Management Bank in the Philippines - AsiamoneyAsiamoneyAsiamoney is a financial publication established in 1989. It is a division of global media group Euromoney Institutional Investor PLC, itself majority owned by the London-based Daily Mail and General Trust Group....
: The Country's Strongest Bank 2010 - AsiamoneyAsiamoneyAsiamoney is a financial publication established in 1989. It is a division of global media group Euromoney Institutional Investor PLC, itself majority owned by the London-based Daily Mail and General Trust Group....
: The Best Domestic Bank for 2009; Best Local Cash Management Bank in the Philippines as voted by Small-Sized Corporations 2009; Best Local Cash Management Bank in the Philippines as voted by Medium-Sized Corporations 2009; Best Local Cash Management Bank in the Philippines as voted by Large-Sized Corporations 2009; Best Domestic Provider of FX Services in the Philippines as voted by Corporates 2009; Best Domestic FX Provider of FX Prime Broking Services in the Philippines as voted by Corporates 2009; Best Domestic FX Provider of Single-Bank Electronic Trading Platform 2009. - Development Bank of the PhilippinesDevelopment Bank of the PhilippinesThe Development Bank of the Philippines , commonly known by its initials, DBP, is a state-owned development bank in Makati, Philippines.It is the seventh-largest bank in the Philippines in terms of assets, and is the second-largest...
(DBP): Most Outstanding Participating Financial Institution - Euromoney: Best Bank in the Philippines for the 7th year
- Far Eastern Economic ReviewFar Eastern Economic ReviewThe Far Eastern Economic Review was an English language Asian news magazine started in 1946. It printed its final issue in December 2009. The Hong Kong-based business magazine was originally published weekly...
: Most Admired Company in Asia - FinanceAsiaFinanceAsiaFinanceAsia is a Hong Kong-based publication reporting on Asia’s financial and capital markets through a daily website and monthly magazine. At the end of 2005, FinanceAsia was acquired by Haymarket Group, the largest privately owned publishing company in the UK, created in part by Lord Heseltine,...
: Best Local Bank (2003), Best-Managed Company (2003), Best in Investor Relations (2003), Best in Financial Management (2003), Company Most Committed to Corporate Governance (2003), Strongest Commitment to Enhancing Shareholder Value (2003), - Global FinanceGlobal Finance (magazine)Global Finance is an English-language monthly financial magazine.Joseph D. Giarraputo, the founder and former publisher of Venture, the magazine for entrepreneurs, in 1987 joined forces with Carl G. Burgen, Stephan Spahn, H. Allen Fernald, and Paolo Panerai to start a magazine on financial...
: Best Internet Bank (2003, 2006), Best Emerging Markets Bank in the Philippines (2003) - Land Bank of the PhilippinesLand Bank of the PhilippinesLand Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...
(Landbank): Most Outstanding Countryside Partner - Pacific Asia Travel AssociationPacific Asia Travel AssociationThe is a membership association working to promote the responsible development of travel and tourism in the Asia Pacific region.-Beginnings:The association began in 1951 when Lorrin P...
(PATA): Gold Award for credit card madness campaign - The Asset: Best Domestic Bank in the Philippines 2005, 2006 Best Cash Management Bank in the Philippines
- Philippine Marketing Excellence Awards: Most Outstanding Bank (National Awards)
- Wall Street Journal Asia: Ranked 6th as most admired company in the Philippines 2006, 2007, 2008 (Highest rank in terms of banking industry in the country)
- Bangko Sentral ng PilipinasBangko Sentral ng PilipinasThe Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
(BSPBSPBSP is a three-letter abbreviation that may refer to:Computers and technology* Bell System Practices, technical documentation series published internally by the AT&T Bell System* Board support package, software needed to operate motherboards...
): Top Commercial Bank on OFW Remittances for three consecutive years by BSPBSPBSP is a three-letter abbreviation that may refer to:Computers and technology* Bell System Practices, technical documentation series published internally by the AT&T Bell System* Board support package, software needed to operate motherboards...
Stakeholder's awards, 2006, 2007, 2008 - Global FinanceGlobal Finance (magazine)Global Finance is an English-language monthly financial magazine.Joseph D. Giarraputo, the founder and former publisher of Venture, the magazine for entrepreneurs, in 1987 joined forces with Carl G. Burgen, Stephan Spahn, H. Allen Fernald, and Paolo Panerai to start a magazine on financial...
: Country Winner for 2007 World's Best Consumer Internet Bank in Asia - Institute of Corporate Directors (ICD): The only bank included in the top 20 listed companies with best governance practices in the country, 2007
- New Economy Sustainability Banking Awards: Most Sustainable Bank in The Philippines, 2009.
Firsts
BPI is known for its firsts which are listed below:
- BPI is the first bank in the PhilippinesPhilippinesThe Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, and in Southeast AsiaSoutheast AsiaSoutheast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...
. - BPI is the first bank to issue the Philippine pesoPhilippine pesoThe peso is the currency of the Philippines. It is subdivided into 100 centavos . Before 1967, the language used on the banknotes and coins was English and so "peso" was the name used...
- Introduced branch banking by opening its first branch outside Manila in Iloilo on March 15, 1897.
- BPI financed the first rail system, telephoneTelephoneThe telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
system, electric powerElectricityElectricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...
utility, and steamship service in the Philippines - BPI established the Philippines' first ATM system, with its ATMs being called Express Tellers. The system eventually evolved into the ExpressnetExpressnetExpressnet is an interbank network connecting the ATM networks of seven major banks in the Philippines. It is the second-largest ATM network in terms of number of ATMs and the smallest in terms of customers and number of member banks...
ATM consortium, which has seven members - Expressnet is also known for its Express Payment SystemExpress Payment SystemThe Express Payment System, more commonly known as the EPS, was the EFTPOS system originally of the ATM cards of Bank of the Philippine Islands and its subsidiaries, BPI Family Savings Bank and BPI Direct Savings Bank. Today, it is the EFTPOS system of the Expressnet interbank network in the...
(EPS), which was at first the debit card system of the BPI Express Teller ATM card. - BPI pioneered the concept of the banking kioskKioskKiosk is a small, separated garden pavilion open on some or all sides. Kiosks were common in Persia, India, Pakistan, and in the Ottoman Empire from the 13th century onward...
in the Philippines, with its kiosks being called Express Banking Centers or EBCs or by its older name, the Convenience Banking Center. EBCs can be found in malls, supermarkets, plazas and other locations and operate beyond normal Philippine banking hours, which are from 9.00 to 15.00 on weekdays. - The first local bank in the Philippines to introduce 24 hour branch banking called BPI Express.
- BPI is the first bank in the Philippines to make use of a call center and telephone banking, known as BPI Express Phone
- Launched BPI Express Mobile - Mobile BankingMobile BankingMobile banking is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant . The earliest mobile banking services were offered over SMS...
facility which enables accountholders to inquire about their deposit, credit cardCredit cardA credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holder's promise to pay for these goods and services...
, auto and housing loan and BPI Prepaid Card balances, transfer funds between enrolled deposit accounts, pay bills to over 200 merchants, reload Globe TelecomGlobe TelecomGlobe Telecom , commonly known as Globe, is a telecommunications company in the Philippines. Globe provides mobile, fixed line, and broadband Internet services.- History :In 1928, Congress passed Act No...
and Touch MobileTouch MobileTM, also known as Touch Mobile and "Republika ng TM", is a cellular service brand of Globe Telecom, the second largest telecommunications company in the Philippines. TM was launched on September 12, 2001 to provide prepaid mobile services to the middle income market. Over the years, TM has evolved...
prepaid mobile phones and BPI Express Cash MasterCard Electronic, and transfer money to and from Globe GCash wallet. - Launched BPI Express Credit Gold Mastercard with Paysafe System, the country's first EMVEMVEMV stands for Europay, MasterCard and VISA, a global standard for inter-operation of integrated circuit cards and IC card capable point of sale terminals and automated teller machines , for authenticating credit and debit card transactions.It is a joint effort between Europay, MasterCard and...
(Europay, MasterCardMasterCardMastercard Incorporated or MasterCard Worldwide is an American multinational financial services corporation with its headquarters in the MasterCard International Global Headquarters, Purchase, Harrison, New York, United States...
, Visa) compliant chip card. - The first airline co-brand chip credit card issued in the Philippines - BPI SkyMiles MasterCard and BPI SkyMiles Platinum MasterCard with its partner Delta Air LinesDelta Air LinesDelta Air Lines, Inc. is a major airline based in the United States and headquartered in Atlanta, Georgia. The airline operates an extensive domestic and international network serving all continents except Antarctica. Delta and its subsidiaries operate over 4,000 flights every day...
. - The first local bank in the country to offer most number of third currencies in its products and services - Savings Accounts and Time Deposit Accounts (As of January 2010) (Australian DollarAustralian dollarThe Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu...
s, Canadian dollarCanadian dollarThe Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
s, Swiss Francs, Euros, British Pounds, Japanese YenJapanese yenThe is the official currency of Japan. It is the third most traded currency in the foreign exchange market after the United States dollar and the euro. It is also widely used as a reserve currency after the U.S. dollar, the euro and the pound sterling...
, and Chinese YuanChinese yuanThe yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
.). - BPI issued its first Sustainability Report for 2008 along the Global Reporting Initiatives (GRI) Sustainability Reporting Guidelines, the first in the banking industry.
- The first bank to introduced "Bank Anywhere" capability by allowing clients of the bank to transact at any of its more than 800 BPI branches [b]free of charge[/b]
- Introduced the country's first branchless bank - BPI Globe Savings Bank (BanKo) using Mobile Money Technology (MMT) (December 2009).
- Introduced the country's first Mobile Mall - BPI Express Mobile - Mobile Mall (2009).
- Introduced "Bank Anywhere" facility to clients to process their banking transactions to any of its more than 800 branches free of charge.
See also
- Jaime Augusto Zobel de Ayala IIJaime Augusto ZobelJaime Augusto Zobel de Ayala is a Filipino businessman. He currently serves as chairman and chief executive officer of the Ayala Corporation...
- Chairman - Ariston Estrada, Jr. - former director
- Ayala CorporationAyala CorporationAyala Corporation is a holding company for the diversified interests of the Ayala Group. Founded in the Philippines by the Spanish and German Ayala, Roxas, and Zobel families during colonial rule, it is the country's oldest and largest conglomerate...
- ExpressnetExpressnetExpressnet is an interbank network connecting the ATM networks of seven major banks in the Philippines. It is the second-largest ATM network in terms of number of ATMs and the smallest in terms of customers and number of member banks...
(the BPI ATM network) - List of Philippine companies
- Mercedita S. NolledoMercedita S. NolledoMercedita S. Nolledo, born 1941 in the Philippines, has served as Director of the conglomerate Ayala Corporation since 2004. She is also Senior Counsel, Senior Managing Director and Corporate Secretary of Ayala and served as General Counsel of the Ayala group of companies until February 1,...
- director and chairperson of the trust committee