BPI Private Wealth aims to double assets and capture 25% local HNW market

CEO Maria Theresa Marcial says they are targeting US$53b in AUM by 2026.

The Philippines’ oldest bank aims to double the assets that it manages for the ultra-wealthy and to clinch a 25% share in the Philippines’ growing wealth management market over the next two years.

Speaking to reporters, BPI Private Wealth president and CEO Maria Theresa Marcial said that they are targeting an assets under management (AUM) of about US$53.3b (PHP3t) by 2026 – more than double the current US$21b (PHP1.22t) they currently manage.

Marcial cites opportunities with the growing number of high net worth (HNW) individuals in the Philippines– those with assets of US$1m and above– which is estimated to grow to 32,000 by 2026, from just 18,000 in 2021.

The ultra high net worth (UHNW) Filipinos, or those with over US$30m in assets, will remain few at an expected 440 by 2026. But this would still be a massive jump from just 313 UHNW Filipinos in 2021.

“We’re expecting strong growth in this segment,” Marcial said. “The key theme [in the market] is the growing affluence…it’s not just coming from the old rich, we’re seeing more and more people reach this affluence.”

As of 2024, BPI Private Wealth has reportedly cornered 25% of the UHNW market, and eyes to grow its number of HNW customers with the aim of being the bank of choice of 25% of this.

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Establishing legacies
Marcial highlighted BPI Private Wealth’s expected role in the lives of their clients: not just to manage their investments, but also to help prepare their children and grandchildren in preserving their wealth across generations.

Estate planning is a particular pain point of HNW clients, noted Atty. Gail Totanes, head of wealth planning at BPI Private Wealth.

“[They’ve] been so busy dealing with their businesses, so busy focusing on their careers, that they leave out estate planning and the transition of their wealth to the next generation,” Totanes said.

This isn’t just a matter of wealth preservation, but also customer preservation.

Marcial also noted the potential to tap into a broader ecosystem that involves not just wealth management, but their customers’ businesses tapping into other non-wealth related services offered by BPI.

“We are tapping into potential opportunities for their businesses,” Marcial said.

For the children and grandchildren of UHNW and HNW, they hold seminars and lessons to help them in a future of managing their finances and their wealth.

Amongst events they hold include their Signature Yacht Race series, with four races taking place in Corregidor Island, Busuanga, Boracay, and Subic between 2023 to 2024.

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Wealth loans
Whilst their premier customers may be amongst the country’s creme de la creme in terms of assets, they could still find themselves in need of immediate liquidity– to buy a much-desired property, for example, at a short notice.

To meet the wealthy’s liquidity needs, BPI Private Wealth unveiled its “Wealth Loans.” Touted the first in the market, these loans are backed by their clients’ personal investments. This allows clients to obtain the funds they need without having to liquidate assets.

Compared to the off-the-shelf retail loans, these wealth loans are bespoke to each customer and offer varying interest rates and tenors depending on their individual needs.

BPI Private Wealth adapts a discretionary model portfolio, with customised investment strategies based on objectives of their clients– whether it be wealth preservation, income generation, or capital growth.

Assistance is also offered in regard to legal, property management, investment assistance, and even in navigating taxes and other government structures, amongst others.

(US$1 = PHP56.18)