{"id":331185,"date":"2025-01-15T19:50:46","date_gmt":"2025-01-15T11:50:46","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=331185"},"modified":"2025-01-15T19:50:50","modified_gmt":"2025-01-15T11:50:50","slug":"stock-in-focus-bank-of-the-philippine-islands-bpi-15-jan-2025-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-bank-of-the-philippine-islands-bpi-15-jan-2025-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Bank of the Philippine Islands (BPI) – 15 Jan 2025 by RCBC Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>BPI<\/td><\/tr>
Company Name<\/strong><\/td>Bank of the Philippine Islands<\/td><\/tr>
Broker<\/strong><\/td>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>15 Jan 2025<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 150.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We reiterate our Buy rating on BPI with a Target Price of PHP 150.00 per share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

Attractive mutliples<\/strong><\/p>\n\n\n\n

Bank of the Philippine Islands (BPI) slid to a new three-month low, bringing it 1.5% down year-to-date. Its price-to-book ratio (PBR) at 1.4x also looks attractive, trading at a 23% discount to its three-year pre-pandemic PBR of 1.8x. BPI is poised for continued double-digit loan growth and net interest margin (NIM) expansion given its focus on the consumer segment and the BSP\u2019s cutting of the reserve requirement ratio (RRR). Despite BPI\u2019s NPL ratio increasing, we believe it is still manageable, considering its NPL cover that remains above the 100% threshold.<\/p>\n\n\n\n

Positive momentum on loans<\/strong><\/p>\n\n\n\n

The BSP reported a 23-month high for its loan growth in November at 11.1%, indicating a positive momentum for banks. We project a 15% jump in loans for BPI backed by a more aggressive consumer segment on the back of the easing key policy rates and the BSP\u2019s cutting of the RRR by 250bps. A further 200bps cut could boost loan growth followed by a possible increase in capex spend for the corporates.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>