Bank of the Philippine Islands is looking to build up operations in developed markets by boosting its trading business in key financial hubs like London.
In expanding across developed economies, BPI president Cezar Consing said the bank would focus on the markets trading side of the business—a route taken by some of the world’s best emerging market banks.
“If you look at, for example, Santander or Standard Chartered, they came into these markets really in the trading side: Fixed income, equities, etc. And they used that to fund the more traditional banking business,” Consing said Friday on the sidelines of BPI’s signing of an agreement to support the British government’s post-graduate Chevening scholarship program.
“So, we’re looking at what they have done and we’re saying, that makes sense for us. We haven’t decided yet, but it’s something we’re looking at,” Consing told the Inquirer.
In 2007, BPI was allowed by the Financial Services Authority to establish and operate a wholly owned subsidiary in the United Kingdom, gaining a passport to expand operations within the European Union. At present, BPI Europe Plc. has two branches in London, as well as in the Italian cities of Rome and Milan. It also has a remittance office in Barcelona, Spain.
Aside from growing its offshore trading business, he said BPI was working to get more advisory mandates for Filipino companies expanding overseas.
“We would love to do that. As a matter of fact, we have a couple of mandates. The Philippines will eventually become a net investor as opposed to being a net borrower,” he said, citing the growing number of homegrown multinationals like International Container Terminal Services Inc., Jollibee Foods Corp., San Miguel Corp., Universal Robina Corp. and Emperador Inc.