Bank presidents share bullish outlook for 2025

As 2024 draws to a close, bank leaders are optimistic about 2025, highlighting resilience, growth opportunities as well as cautious optimism amid global challenges.

- By KEISHA TA-ASAN

BDO Unibank Inc. president and CEO Nestor Tan summarized 2024 as a year of mixed dynamics.

"This year was actually a good year," he said. "It started out slow, was getting better, and then in the fourth quarter, it started to slow again. I think there were factors beyond our control," he said.

According to Tan, external uncertainties such as the change in US administration, political noise in the Philippines and regional tensions in the South China Sea as factors influencing corporate decisions.

"These factors have put a lot of plans of corporations temporarily on hold, and I hope they don't cancel it. So we're looking forward to a more reserved 2024 ending and hopefully a pickup in 2025," Tan said.

Sanjiv Vohra, president and chief executive officer of Security Bank Corp., said 2024 was a "progressive" year and underscored significant advancements despite external challenges.

"Our outlook on the banking industry for 2025 is upbeat," Vohra said in an email interview with The STAR.

Vohra said the factors that would drive growth in the banking sector next year include a stronger gross domestic product (GDP) growth of above 6.1 percent amid the election spending.

The Philippine economy grew by only 5.2 percent in the third quarter, slower than the 6.4 percent in the previous quarter and six percent a year ago. From January to September, GDP growth averaged 5.8 percent.

Inflation is also projected to remain manageable as it is expected to average by around 3.2 percent in 2025, which is near the midpoint of the two to four target range of the Bangko Sentral ng Pilipinas (BSP).