MANILA - BDO Unibank expects 8 to 10 percent growth in its consumer loan business this year despite rising interest rates, the company said on Wednesday.
BDO President Nestor Tan said as mobility improves following 3 years of pandemic lockdowns, more Filipinos are expected to get loans for their business or other needs.
"The good news is that it's broad-based. It's not one sector carrying the other, although consumers are a little bit stronger because of mobility," Tan told reporters at the sideline of the BDO Annual Stockholders' Meeting.
The bank earlier reported its 2022 gross customer loans climbed 8 percent to P2.6 trillion.
Tan however also said his optimism is tempered with caution as inflation remains elevated which may put further pressure on interest rates.
"What we're not sure [about] is the trajectory of interest rates and how it will impact them and the new loans that you bring in which may be coming from an optimistic outlook. That's the one I'm cautioning," said Tan.
But he also said that another round or two of interest rate hikes won't be a problem for BDO as it is in a good position to weather short-term volatility.
The bank has announced a P16.5 billion net income for the first quarter of 2023.