MANILA: Bank of the Philippine Islands, one the nation’s top lenders, expects the country’s millionaire population to continue rising, fuelled by robust economic growth.
"What is a key theme is the growing affluence - the growing affluence that’s not just coming from the old rich,” Maria Theresa Marcial, president of the Philippine lender’s asset management arm BPI Wealth, told a media roundtable on Thursday (March 21).
"We are seeing more and more people reaching that hurdle in terms of total wealth,” she said.
The Philippines overtook Vietnam and Malaysia to become South-East Asia’s fastest-growing economy last year, driven by stronger consumption, services and investment.
The improving macroeconomic picture, along with the global recovery, creates opportunities for investments that allows BPI to tap more individuals with liquid assets of at least US$1 million, or the high net worth market, Marcial said.
BPI Wealth, which manages about 1.22 trillion pesos ($22 billion) in assets in the Philippines, aims to corner as much as a third of the high net worth market, she said. The bank plans to grow its assets under management to about 3 trillion pesos by 2026.
Amid expectations that interest rates have peaked as inflationary pressures ease, the BPI executive said it may be time to start shifting to longer-term bonds. Stocks should also be vibrant again as interest rates fall, she said. - Bloomberg
