This year’s national election plays a major role in the income growth projection of the Bank of the Philippine Islands (BPI).
BPI president Aurelio Montinola, in a briefing Thursday, said they expect to do better than their P8.5 billion net income in 2009.
He, however, noted that the forecast “will also depend partly on the conduct of the elections.”
“If the election is peaceful and orderly, we will have an opportunity to grow our income by up to 15 percent. If not we will be more cautious and will go with our usual 10 percent goal,” he said.
The bank’s net income last year was 33 percent higher than year-ago’s P6.4-billion net income and was achieved amid the global slowdown.
In 2009, BPI’s capital adequacy ratio (CAR), a measure of a bank’s financial strength, stood at 14.7 percent, above the 10 percent requirement of the Bangko Sentral ng Pilipinas (BSP).
Montinola said they continue to do stress test to check their capital.