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BMI gearing up to become mSME bank of choice

Bank of Makati (A Savings Bank), Inc. (BMI) is entering the next phase of its growth to become the micro, small and medium enterprises’ (mSME) bank of choice with a new leadership on board.

“BMI upholds its commitment to enable more Filipinos to save for a better future, as well as unleash their potential as entrepreneurs,” said the thrift bank’s new president, Luis M. Chua.

“As we further expand our services and reach, we look forward to becoming the mSME bank of choice,” added Chua, who assumed leadership of the bank following the seven-year term of Ma. Rodora E. Bañares.

BMI has 62 branches across the archipelago, primarily catering to Filipino savers and small entrepreneurs.
Based on its three-year strategy, the bank intends to expand its branch network in regions that register high business growth, significant mSME concentration and consumer traffic.

BMI also looks to further optimize its expanded affiliation with motorcycle dealerships. The bank currently offers financing packages to customers of the Motortrade Group–the country’s largest motorcycle trading group–among others.

“The Motortrade Group has been our trusted partner through the years,” Chua said. “We plan on continuing to strengthen this partnership to reach not only motorcycle buyers and the mSME, but the unbanked and underserved Filipinos as well.”

BMI has posted significant growth since the entry of its new shareholders, the Ongtenco family, who is behind Motortrade.

Latest comparable data from the Bangko Sentral ng Pilipinas (BSP) show that BMI corners 96% of the Philippine banking system’s total outstanding motorcycle loans. The total stood at P15.396 billion as of end-September 2017, of which BMI accounted for P14.772 billion.

BMI is one of the biggest stand-alone savings bank in the Philippines, in terms of total assets. It is also a leading thrift bank in terms of profitability margins and cost-efficient operations, registering a 20.82% return on equity and 4.80% return on assets as of December 2017.

“We will work toward servicing the mSME sector by offering products that fit their needs,” Chua said. “We will also continue building on our motorcycle lending business, especially since the demand for motorcycles for business use has been increasing.”

Built on more than 60 years of experience in community banking, BMI was originally founded as a rural bank in July 1956. It gained stronger capability with the entry of new shareholders, a new management and bigger capitalization in 2001.

By 2006, BMI became the first rural bank to land on the elite list of the Top 1,000 Corporations in the Philippines. It was recognized in the same year as the country’s biggest rural bank.

BMI officially became a savings bank in 2015. Moving forward, the bank envisions itself to become the micro, small and medium enterprises’ bank of choice.