Bank of Commerce, an affiliate of conglomerate San Miguel Corp., said Thursday its assets under management grew 63 percent in 2021 to P63 billion from a year ago, as the bank strengthened its retail investor client base and pushed for wider access to low-risk and medium-to-long term investments.
Bank president Michelangelo Aguilar said in a statement the increase in AUM, which was also 5 percent higher than the bank’s initial P60-billion target, contributed to the robust performance of unit investment trust funds and investment management accounts, as clients sought more conservative products to better cover for future contingencies similar to the pandemic.
“We saw a 126-percent increase year-on-year in AUM for UITFs. Likewise, IMAs, which cater to clients with substantial funds looking for higher yields such as through bonds, common or preferred shares, grew 65 percent year-on-year,” Aguilar said.
“Our efforts to align our investment products with our customers’ needs, enabling them to maximize their revenue potential as we ensure the success of our portfolio, were key factors to our strong performance,” he said.
Meanwhile, the bank’s other fiduciary activities business for corporate clients looking to tap the investing public for capital rose 49 percent year-on-year.
Bank of Commerce said that as of the end-September 2021, it ranked ninth among universal, commercial and thrift banks in terms of AUM, rising from 11th place the previous year.
Over a four-year period from 2018 to 2021, the bank’s AUM grew 103 percent, with a better than industry compounded annual growth rate of 13 percent.
SMC president and chief executive Ramon Ang said the bank’s strong showing in investment products was one way Bank of Commerce fulfilled SMC’s mandate to all businesses to support the economy and help more Filipinos in this time of pandemic.
“We have seen the many impacts of the pandemic on our economy, on businesse, and our everyday lives. We need to continue finding ways to help more people become resilient and make smarter financial decisions,” Ang said.
“SMC’s businesses are all geared towards improving the lives of Filipinos, whether it’s providing high-quality, affordable products, or building infrastructure to stimulate and sustain economic growth,” Ang said.
Ang said banking and financial services are an important focus for the conglomerate. “That is why we’re leaning more heavily on Bank of Commerce to provide smart financial solutions, whether for ordinary Filipinos or larger corporate clients,” he said.
The Monetary Board of the Bangko Sentral ng Pilipinas recently approved the upgrade of status of Bank of Commerce from commercial to universal bank, subject to regulatory requirements.
The move would allow the bank to offer a wider variety of services to more clients, particularly debt and equity securities. The bank is also looking to expand its portfolio through more product alliances with third-party institutions.
Aguilar said Filipino investors would remain cautious in 2022 and prefer government securities and instruments issued by credit-worthy companies with strong and consistent cash flows.
“Attuned to the current risk appetite of our clients, we will continue to grow our AUM by providing them with quality short- or long-term investment opportunities through products and services catering to their financial goals,” Aguilar said.
Bank of Commerce posted a net income of P625.7 million in the first three quarters of 2021, or 26.3 percent higher year on year, led by higher interest income and lower provisions for credit losses.