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PHL stock market accounts hit 1 million in 2018


THE number of stock market accounts at the Philippine bourse breached the one-million mark in 2018. — BW FILE PHOTO

THE RISE of online trading pushed the number of stock market accounts past the one-million mark in 2018, according to a report by the Philippine Stock Exchange, Inc. (PSE).

The PSE said in a statement Thursday that its 2018 Stock Market Investor Profile report showed there were 1.089 million stock market accounts by the end of last year, 25.4% higher than 2017’s 868,810.

The increase can be attributed to the 60.9% surge in online accounts to 625,763 from 388,864 in the previous year.

“It may have taken some time to breach this one million milestone but as they say better late than never. The advent of online trading has proven to be the catalyst for the rapid growth of stock market investors in the last five years,” PSE President and Chief Executive Officer Ramon S. Monzon said in a statement.

Mr. Monzon added that they will continue to intensify investment literacy efforts in order to reach the next million stock market investors in a shorter period of time.

Retail investors accounted for 97.5% of total stock market accounts, while the 2.5% balance came from institutional investors. Domestic investors dominated the total accounts at 98.4%, while foreign investors owned the rest.

The PSE report showed that 51.6% of total investors were male, while 48.4% were female. This is an improvement from 2017’s ratio of 54.6% to 45.4% for male and female investors, respectively.

Investors aged from 18 to 29 years old showed the fastest growth for the year, as they increased their share of account holders to 21.5% from 16.2% in 2017. The 30- to 40-year-old range still comprised bulk of total investors at 43.1%, while those aged 45 to 59 account for 21.5%. The 60 and above range contributed the balance of 13.9%.

“Some people still have stereotypes of stock market investors which are debunked by our latest investor profile report. Investors nowadays are younger and a significant number of them are women,” Mr. Monzon said.

Meanwhile, 62.4% of investors revealed that their salaries were less than P500,000 annually. Those who earned between P500,000 to P1 million accounted for 21%, while those earning more than P1 million per year made up 16.6% of total investors.

“It also shows that it is not necessary to have a big salary to be able to invest, what is important is to know how to set aside money for investment,” Mr. Monzon added.

In terms of location, most investors still came from Metro Manila at 62.2%, followed by those in Luzon at 21.5%. Investors based in Visayas and Mindanao were recorded at 8.9% and 4.4%, respectively.

On the other hand, foreign investors in the PSE were mostly Chinese (23.7%), American (15.7%), and Japanese (10.3%). — Arra B. Francia

DMCI Power sales jump 20% in Q1

DMCI Power Corp. reported a 20% rise in sales in the first quarter, driven by an increase in energy demand from its three electric cooperatives in Oriental Mindoro, Palawan and Masbate.

In a disclosure to the stock exchange, listed parent company DMCI Holdings, Inc. said the off-grid energy player reported total volume sold increased to 76 gigawatt-hours (GWh) during the January to March period, from 63 GWh in the same period last year.

“The 20% increase was driven by the strong take-up of Oriental Mindoro Electric Cooperative (Ormeco), Palawan Electric Cooperative (Paleco) and Masbate Electric Cooperative (Maselco),” the Consunji-led company said.

Energy sales to Ormeco stood at 15.87 GWh during the first quarter, surging 39% from 11.39 GWh in the same period last year. This was driven by the opening of the rehabilitated 69-kilo volt (KV) transmission line from Calapan to Puerto Galera.

“The National Power Corporation completed the rehabilitation of the transmission line in May last year. Since then, we have been able to maximize the generation capacity of our power plant,” DMCI Power President Nestor D. Dadivas said in the statement.

Energy sales to Paleco went up 19% to 33.21 GWh in the three-month period, due to an increase in tourist arrivals in Palawan.

Citing the Provincial Tourism Office of Palawan, DMCI Power said tourist arrivals in the island during the first quarter rose 20% to 1.165 million.

Meanwhile, DMCI Power said dispatch to Maselco jumped 12% to 26.64 GWh, as Masbate saw “strong economic activities” during the first quarter.

“We are confident that sales volume to our offtakers will continue to grow in the ensuing months of 2019,” Mr. Dadivas was quoted as saying.

DMCI Holdings earlier said it will allocate P1.3 billion from its P31-billion capital expenditures (capex) this year to DMCI Power. The off-grid energy business posted a net income of P100 million in the first quarter, up 32% from the P76 million it recorded in the same period last year. — Denise A. Valdez

YouTube booming in PHL

By Zsarlene B. Chua, Reporter

WHEN YouTube was started 14 years ago, it was originally intended to be a website where people could shoot, post, and share their videos, and while the original purpose remains, the video-sharing website has become so much more — it is now a platform on which people can build careers.

“I’ve watched YouTube over the years change the landscape [in the United States] and I think it’s starting to happen elsewhere as well. I think YouTube is now a platform for media,” Mark Lefkowitz, head of YouTube Creator and Artist Development for Asia Pacific, told reporters during a press conference preceding the YouTube Fanfest Manila on May 26 at City of Dreams Manila in Parañaque City.

“People are leaving broadcast television and cable television in the US [for YouTube]. So I think it’s a platform that allows everyone to have a voice and share their experience with the world,” he added.

Since August 2018, the site has been the second most popular website in the world after Google, according to analytics website, Alexa.

Mr. Lefkowitz admitted that it comes as a “shock to [him]” when he goes to YouTube events like YouTube Fanfests and he sees the screaming fans of various content creators.

YouTube Fanfests (YTFF) are typically held annually in various cities in the world and have been held in Manila since 2014. The one-day live show brings local and international YouTube stars together on stage to entertain their fans.

This year, the Philippines saw two international and 15 homegrown “creators,” as those who make content posted on the video sharing site are called, take the stage including Alex Wassabi and dancer/choreographer Matt Steffanina, Ranz Kyle and Niana Guerrero, Hannah Kathleen, JaMill, ThatsBella, Rei Germar, and Ken San Jose, among others.

The event was held on May 26 at the Mall of Asia Arena in Pasay City and was attended by thousands of fans who lined up at the venue hours before the live show started at 6 p.m.

“We’re now seeing people who are everyday people becoming stars in the platform, so to me it’s unbelievable but it’s really cool, like anybody can be famous,” he said.

Mr. Lefkowitz mentioned that he has noticed the Philippines is “starting to take off” as the company’s numbers showed that there are currently over 750 channels with 100,000 subscribers and more than 60 channels with more than a million subscribers in the country. Last year, only about 300 channels had passed the 100,000 subscriber mark and 19 channels had more than a million subscribers.

“I get really excited when I think about the Philippines because there’s so much opportunity here, we just started to see over the last few years a lot of diverse creators come online. We have seen creators from the north of the country… [to] the south,” he said.

“The Philippines is, I would say, just starting to catch on in terms of a YouTube culture. And I think we’ve seen a tremendous amount of growth last year,” he added.

THE YOUTUBER CAREER
A successful YouTube career can bring in considerable amounts of money — social media tracking and analytics website Social Blade estimates that YouTube’s most popular content creator, Pewdiepie (real name: Felix Kjellberg), who has more than 96 million subscribers, can earn up to $14.8 million annually from YouTube ads alone.

Other revenue streams like sponsorships are also available for creators.

“I don’t know how [much] all of these make but we see people more and more who are able to earn a living on YouTube, which for us, makes us really happy that they can do what they love and they can actually earn a living here,” Mr. Lefkowitz said.

“In the beginning, it was just me and my friends doing whatever we wanted to do,” said Alex “Wassabi” Burriss, at a roundtable discussion on the same day, “and now I have a manager and assistant and agent — all this stuff — and a whole team of editors and cameramen.”

Mr. Burriss started his YouTube career in 2006 and currently has over 11 million subscribers and has clocked in more than 4 billion views. He is known for his challenge videos, skits, and travel vlogs, among others.

“I’ve been making videos for 13 years and [during] the first five years, it was just me and my friends having fun, we weren’t getting paid to do it. There’s no other reason [to do it other than] we just like making videos. And then it took off and it just hasn’t stopped. It’s gotten crazier and crazier,” he said.

He now describes his YouTube career as “more of a business” and that it’s “gotten a lot more difficult” because more and more eyes are on him.

“When I started, it was like a new thing: it was like uncharted territory and you kind of had to figure [things] out as you went, and now it’s a lot more pressure because there are just so many other YouTubers. So you got to try really hard to find your voice and find what you want to be and what you want kids to look up to you for,” Mr. Burriss said.

“And with all this power or responsibility you have to be more careful [with] what you do,” he explained.

THE NEW RULES
With YouTube’s ever-growing popularity, it has become a continuous challenge for the site to try and maintain a “responsible and healthy” environment as it has faced criticism over the years when it came to its response to copyrighted content, conspiracy videos, videos involving minors, monetizing and demonetizing content, among others.

“We started to make a lot of changes: I think we made 30 policy changes over the last year to try and strengthen our guidelines… [Creators] should make sure they follow our guidelines and are creating responsible content,” YouTube’s Mr. Lefkowitz said.

Among the new policy changes is that YouTube will now show abbreviated subscriber counts instead of precise totals starting August.

The change was prompted by the recent drama which happened between beauty YouTubers James Charles and Tati Westbrook where Mr. Charles lost more than 3 million subscribers while Ms. Westbrook gained more than 4 million in a week.

(The drama revolved around Ms. Westbrook announcing her disassociation from Mr. Charles, whom she had been friends with since he started YouTube four years ago, after accusing Mr. Charles of allegedly hitting on unwilling straight men and for promoting a competitor to her health supplements brand.)

While Mr. Charles has regained more than a million of his lost subscribers, ripples have been felt in the community, and while YouTube did not explicitly state that the aforementioned issue was the reason for the policy change, they did say that they want to “foster a sense of digital well-being” as content creators are “just too concerned about their [numbers],” said Tu Nguyen, communications manager, YouTube APAC during the press conference.

Mr. Burriss said that after more than a decade in YouTube, he is at a point where he “doesn’t look at numbers anymore.”

“I just do whatever I want to do and then I film it… my main focus now is just to have fun,” he said.

“I think for creators to be successful, it’s really important to be authentic and really share the message you want to share. And so I would advise creators [that] if they want to be successful, to think about that and to be themselves,” Mr. Lefkowitz said.

Robinsons Retail still rationalizing RSCI stores

ROBINSONS Retail Holdings, Inc. (RRHI) is looking to rationalize the store network of Rustan Supercenters, Inc. (RSCI)

“Like what the whole RRHI does, we’ll expand (in) the locations we know would be profitable. And then we’ll close those that are hopeless,” RRHI President and Chief Executive Officer Robina Y. Gokongwei-Pe told reporters after the company’s stockholders’ meeting in Ortigas on Thursday.

“You have to look at efficiencies, and like all companies, you have to cut off the fat,” she said.

RRHI completed the acquisition of RSCI in December last year. The deal placed RSCI’s total network of 80 stores, including Marketplace by Rustan’s, Rustan’s Supermarket, Shopwise Hypermarket, Shopwise Express, and Wellcome, under RRHI’s control.

Ms. Gokongwei-Pe noted the company bought RSCI because it “saw the potential.”

“Their top-line sales was P24 billion when we got it. With P24 billion you’ll be able to get scale, take advantage of the scale and the efficiencies,” she said.

RRHI’s attributable net income fell 32% to P827 million in the January to March period. Excluding RSCI, the company would have booked an eight percent uptick in core net earnings to P1 billion.

The company said it is targeting to open 100 to 125 new stores in 2019, composed of 15 to 17 supermarkets, 18 to 20 do-it-yourself stores, 30 to 40 convenience stores, 15 to 30 drugstores and 20 to 25 specialty stores. This does not include another 100 new franchise stores of The Generics Pharmacy (TGP).

“We project to spend a total P3.5 billion to P5 billion for our planned organic store expansion this 2019,” Ms. Gokongwei-Pe said. She noted the allocation of the capital expenditures will likely remain the same: 52% for supermarkets, 16% for specialty stores, 14% for department stores, 10% for do-it-yourself stores, 5% for convenience stores and 3% for drugstores. — Denise A. Valdez

Disney’s Star Wars Land is a rich nerd mall

FORGET WHAT you’ve heard about gliding into the cockpit of the Millennium Falcon or seeing Chewbacca face-to-face at Disney’s latest thematic romp. When Star Wars: Galaxy’s Edge opens at Disneyland Park in Anaheim, Calif., on May 31 and Walt Disney World outside Orlando later this year, it won’t just be a collection of attractions, entertainment, and a liquor-slinging cantina. It’s also a nerd mall.

The highlight of Disneyland Resort’s largest-ever land expansion and first large-scale footprint since Walt Disney Co.’s acquisition of Lucasfilm more than six years ago is undoubtedly the merchandise. Come for a vivid universe of attractions, stay for a detailed treasure trove referencing every obscure toy, cackling monkey, and pathetic pretzel rod that characters such as Jyn Erso, Leia Organa, and Luke Skywalker have encountered in the 42-year history of the film franchise.

As for the rest of the land? It’s brilliantly Star Wars with a Disney sheen. Since park offerings are centered on the planet of Batuu (not yet seen in the films), whose gone-by-the-wayside Black Spire Outpost trading station has become a new stomping ground for the First Order, the light-vs.-dark conflict is there but subtle. Expect Stormtroopers to gently accost you, Rey and Chewbacca to interact, and more references to Solo throughout than one might expect. Still, there’s no space scum lurking around the cantina, just friendly human staffers. Droids won’t be wandering the 14-acre expanse until crowds subside, the prospect of which itself may be in a galaxy far, far away.

Till then, there’s shopping to be done. Disney has mastered finding something for everyone both in terms of age (the Toydarian Toymaker shop is stocked with games, sweet stuffed dolls, and cantina band instruments) and fandom, with offerings for casual Jedi enthusiasts and die-hards spread among their different points of entry, whether cinematic or animated, new or old.

If you’ve ever wanted your wedding photos held inside a frame by C-3PO’s disembodied hand, you’re in luck for $85. Crave the half-melted face of a battered-down Luke cast in bronze? Dream big, young Padawan, because everything you never thought could be put into production is here.

Pick up a few chance cubes like Watto’s in The Phantom Menace, a busted wooden Stormtrooper doll similar to the one young Jyn Erso had in Rogue One: A Star Wars Story, or decorate your desk with Hera Syndulla’s prized Kalikori as seen in Star Wars Rebels. There’s even a Resistance MRE toolbox filled with pretzels, crackers, and candies designed after the dinner Luke refuses to share with Yoda in The Empire Strikes Back.

No longer are fans of Revenge of the Sith relegated to the edge of the internet; here, one can purchase triangular Sith holocrons for $49.99 that will recite Emperor Palpatine’s “Return of the Jedi” speech — or even don his robes (produced from archival designs) and $150 cane yourself. (Note that Disney’s policies haven’t changed with the advent of this far-flung planet; only children under age 14 can wear full costuming inside the park.)

Even the toys aren’t, as one could say, galactic basic. Many products sold among the stalls in the marketplace section of Galaxy’s Edge — an expanse inspired by bazaars and souks in Turkey and Morocco — emphasize handmade designs or are seemingly whittled from natural materials, like a poseable jointed Admiral Ackbar doll for $19.99 or a small wooden Convor that doubles as a whistle. Pick up a fuzzy brown Bantha or a bat-like Mynock and quell your surprise when they react to your touch; the Tauntauns will growl, Puffer Pigs grunt, Loth cats hiss, and the deadly Rathar, seen in The Force Awakens, shake uncontrollably when activated.

Fans are already clamoring for the most popular items like customizable R- or BB-series droids from the Droid Depot (where guests can select their own parts off a conveyor belt for $99 a pop) and personalized lightsabers crafted in Savi’s Workshop. The exclusive, handbuilt lightsaber experience costs $199. (Both the Depot and Savi’s are likely to take reservations going forward.) With a selection of pieces for each, the deep-cut enhancements don’t end there. Disneyland is even selling modifications, like R2-D2’s cocktail tray used to serve drinks aboard Jabba the Hutt’s barge in Return of the Jedi, to turn your droid into a tiny remote-controlled waiter, twisting indelible cinematic moments into must-buy souvenirs.

Kyber crystals within Savi’s Workshop’s customized lightsabers are interchangeable with holocrons and “legacy lightsabers,” or $100-$200 hilts modeled after popular Star Wars characters, sold around the corner at Dok-Ondar’s Den of Antiquities — the first place a collector should beeline toward within the intentionally decrepit land. This cavernous shop rife with collectibles and oddities is where devoted superfans will gleefully flip open their wallets, and it’s the only one on Batuu manned by a nonhuman creature. Here, Dok-Ondar — a towering audio-animatronic figure who oscillates between sitting and standing to tally his sales — has hoarded the good stuff. You can ask him for a discount, but don’t expect one; the discerning Ithorian won’t interact directly with guests visiting the park but with staff, who translate his native tongue.

Other items within the den are unique designs for true galaxy obsessives, with $325 General Grevious masks, $450 Imperial Tie Fighter Helmets and $200 models of Darth Vader’s obsidian sanctum, ideal for the thriving dad who needs to zhuzh up his in-home theater. The upper level, filled with relics from past films only a keen eye could identify, also boasts a 12-foot taxidermied Wampa and plenty of items recognizable to fans, while the rest of the store offers collectibles such as statues and busts from the Jedi Temple and General Palpatine’s office as well as a likeness of Darth Maul, among others. Between sandstone art of Jabba the Hutt, Padmé Amidala stained-glass squares, and a statuette of Supreme Leader Snoke on his throne seemingly made of iron, every inch of Dok-Ondar’s den is fan service at its stunning finest.

There’s even a jewelry section, offering a collection of galactic baubles including Rose Tico’s crescent necklace ($50), a half-circle pendant necklace ($295) modeled after Qi’ra’s in Solo: A Star Wars Story, and Leia’s famed silver-plated Chalcedony Waves necklace for $2,000. (The actual Planetoid Valleys necklace by Lapponia, as worn in the film, costs a cool $2,500.)

Still, even with a $25,000 full-scale automated R2-D2, the most talked-about take-home item is likely to come free with a soda purchase. Aurebesh alphabet-branded Dasani water bottles and tiny containers of Coke, Diet Coke, and Sprite sold within the land are bound to be hot-ticket items, popping up on eBay even prior to opening. The Walt Disney Company spending a rumored billion bucks on a transportive, expansive theme park land and having hand-held plastic grenades of soda feels more American than interplanetary, but for Star Wars fans, being able to take home any piece of the saga is worth it. — Bloomberg

IBPAP says revenues grow in 2018 but falls short of road map target

By Janina C. Lim, Reporter

THE Information Technology and Business Process Association of the Philippines (IBPAP) said revenues picked up pace in 2018, but failed to reach its targets under the current industry road map.

During a roundtable interview with reporters on Wednesday at the group’s headquarters in Taguig City, IBPAP President and CEO Rey E. Untal said the industry does not have official revenue figures yet, but estimated it generated between $24.5 billion to $24.8 billion in revenues last year.

If achieved, this would translate to a 4.7-5.98% growth from 2017’s $23.4 billion revenues. The growth rate is faster than the 2.18% increase recorded in 2017.

“I think there was a prevailing discussion around the overall uncertainty, really and what we have said in the past, it’s less about what eventually the fiscal regime will be. It’s more about how are we managing the predictability of fiscal forecasts,” Mr. Untal said.

These uncertainties will likely prevent the industry from attaining the $40-billion revenue target by 2022, which translates to a 9% annual revenue growth.

“We will not hit [the annual target]. I’m certain. I will be happy if we hit the 6%,” Mr. Untal added.

Mr. Untal said the IBPAP will most likely lower the targets under the road map.

However, he noted that major incumbents saw growth, adding that the information technology and business process outsourcing (IT-BPO) grew as much as 32% in terms of new investment pledges at the Philippine Economic Zone Authority.

“The 2022 roadmap was created to determine what was the maximum trajectory that the industry could have, in terms of growth and what is needed… unfortunately nga lang nung 2016 the horizon on tax reform being so contentious was not factored in. And also the initially viewed protectionist stance in the US, wala pa ’yun eh. So when we do this recalibration, the premise will be what is the maximum growth we can achieve given how globally this industry is growing,” Mr. Untal said.

The revised industry road map will also outline the interventions that can be made to drive growth, and will likely touch on the fiscal incentives regime, according to Mr. Untal.

The IBPAP official noted that the local industry’s performance should, moving forward, outpace global growth which is currently at 4% to 5%, citing estimates by research firm Everest Group.

“If we are lower than the world is growing, then the other countries will overtake us,” Mr. Untal said.

Mr. Untal is hoping to finish the revised road map within two to three months and present it at the annual IT-BPO summit slated in November.

Gender diversity in management improves firms’ performance

THE International Labor Organization (ILO) said one of its studies has found that greater gender diversity in management positions is likely to improve company performance in metrics like productivity and job retention, adding that many organizations estimate that gender diversity drove profit growth of 5-20%.

In a report, “Women in Business and Management: The business case for change,” the ILO said: “A gender-inclusive culture requires a critical mass of women in management, senior leadership and on boards of directors, of at least 30%.”

A study of 13,000 companies surveyed worldwide showed that over 60% of organizations that achieved such diversity saw improved labor productivity.

In involving more women in management positions and prioritizing equality in employment, 54% of companies said they saw more innovation in their operations while 57% said women in managerial positions also helped attract and retain workers.

ILO reported that 74% of respondents attribute to gender diversity in management profit growth of 5% to 20%.

“(T)hese results make gender diversity part of a larger dynamic of innovative and sustainable business practices, which also contribute to improved outcomes. These are companies focused on the future and how best to thrive in a changing global business environment,” ILO said.

Despite the advantages of gender diversity for businesses, the ILO said women remain a minority in top management and CEO ranks.

“There are a couple of prime contributors to this shortfall. One is the ‘leaky pipeline,’ in which the representation of women decreases as the level of management increases, resulting in continued male dominance of the chief executive level and boards,” the report said. ILO said that as enterprise size expands, the amount of women in the C-Level jobs also drops.

In the Philippines, ILO estimates that women make up only 25.8% of top management and CEOs in 2015. Some 29.6% worked for small enterprises; 33.9% for medium-sized firms; and 14.0% for large-scale companies. ILO said companies need to address the “leaky pipeline” that takes women out of contention for top jobs, adding that they need to invest in strategies that promote gender diversity in order to keep afloat in the global economy.

“Gender-inclusive policies and their enforcement are important for achieving gender balance at all levels. Almost 75% of the enterprises surveyed have equal opportunity or diversity and inclusion policies, but more specific actions are needed so that women gain the experiences that prepare them to be promoted to strategic areas of business,” ILO said. — Gillian M. Cortez

HSBC plans retail wealth headcount boost; eyes Singapore expansion

HONG KONG — HSBC Holdings PLC plans to boost its Asia retail wealth management staff by about 300 by end of this year, with Europe’s biggest lender by assets sharpening its focus on Singapore to add to its presence in core markets of Hong Kong and China.

London-headquartered HSBC, which makes more than 80% of its profit in Asia, will boost its wealth staff in Singapore by 50 and launch new digital offerings this year, said Kevin Martin, Asia Pacific head of retail banking and wealth management.

While HSBC did not disclose its wealth management headcount in Singapore at present, the bank’s business of offering advice and investment products to affluent clients in the city-state is smaller compared to its presence in China and Hong Kong.

“It’s fair to say that our entire business in Singapore underperformed, and we haven’t hidden from that fact,” Martin told Reuters in a recent interview, referring to the bank’s retail banking and wealth management unit.

“As we build Asia wealth … there is a really significant opportunity in Singapore, not just onshore Singapore, but offshore Singapore,” he said, adding the bank expects the country to be a “growth engine” over the next few years.

HSBC’s retail banking and wealth management division serves clients with less than $5 million of investable assets, while those with more than that threshold are taken up by the bank’s private banking unit.

Chief Executive John Flint last year said building a leading wealth management business, mainly in Greater China and Southeast Asia, was key for accelerated revenue growth in Asia, where individual wealth is growing at the fastest pace globally.

Singapore’s high net worth population, those with investable assets of $1 million or more, rose 11.5% in 2017, as per consultant Capgemini’s latest wealth report, ahead of China’s 11.2%, Japan’s 9.4% and Australia’s 9.2%.

Of respondents in a survey conducted by trade publication Asian Private Banker in July last year, 58% ranked Singapore as the most preferred offshore wealth management hub, followed by Hong Kong, Switzerland and London.

HSBC is looking to target both onshore as well as offshore clients, with a large number of rich individuals in China, India and other Southeast Asian nations looking for wealth management services in Singapore, Martin said.

In Singapore, HSBC will compete with global rivals such as Citigroup Inc and Standard Chartered PLC, as well as Southeast Asia’s biggest lender DBS Group Holdings Ltd which has a strong presence in the mass-affluent wealth management business.

As part of its plans to grow its Asia wealth business, HSBC also intends to ramp up its insurance distribution and product offerings in Hong Kong, China and Singapore this year, Martin said.

HSBC’s life insurance business within the wealth management unit posted 66% growth in revenue to $793 million in the first quarter of this year compared to the year-earlier period.

“We are not even partly done in terms of the upside for insurance … And as we have increased distribution, provided all products and put digital capabilities in place and promoted the brand, the growth you see will continue.” — Reuters

Stressed Game of Thrones star Kit Harington getting treatment

LOS ANGELES — Game of Thrones actor Kit Harington is undergoing treatment after the end of the HBO television series in which he starred as the heartthrob Jon Snow, his representative said on Tuesday.

“Kit has decided to utilize this break in his schedule as an opportunity to spend some time at a wellness retreat to work on some personal issues,” a representative for the British actor said in a statement.

Harington, 32, went from virtual unknown to world stardom in Game of Thrones, in which he played the role of the courageous Snow, whose actions in the final episode were one of the show’s biggest shockers.

The statement did not give details of his issues, but The New York Post’s “Page Six” column said Harington was hard hit by the ending of the show and was being treated for stress, exhaustion, and alcohol use.

“Page Six” added that he checked into a clinic in the United States help several weeks before the medieval fantasy series came to an end on May 19. The finale attracted a record 19.3 million viewers in the United States alone.

Harington, who married his Game of Thrones co-star Rose Leslie in 2018, told Variety earlier this year that he had previously found it hard to deal with the fame and attention the show brought, calling it “terrifying.”

“I felt I had to feel that I was the most fortunate person in the world, when actually, I felt very vulnerable. I had a shaky time in my life around there — like I think a lot of people do in their 20s,” he told Variety in an interview published in March. — Reuters

MRC Allied puts LNG projects on hold

MRC ALLIED, Inc. on Thursday said it has placed plans for a liquefied natural gas (LNG) facility on hold, while it awaits the government’s rules governing such projects.

In a disclosure to the stock exchange, MRC Allied said it will focus on completing its current solar power projects.

“(It) has been recommended by the technical team of MRC that the LNG projects of the company be put on hold considering that the Department of Energy (DOE) is finalizing its guidelines and Implementing Rules and Regulations (IRR) governing Liquefied Natural Gas (LNG) projects,” MRC Allied said.

In November 2017, MRC Allied signed a memorandum of understanding (MoU) with China Energy Engineering Corp. Ltd. (CEEC) “to confirm that both parties have an interest in exploring the possibility of investing, constructing, developing and operating [LNG] projects in the Philippines.”

It described CEEC as a foreign company based in Beijing, China, which is engaged in the business of exploration, development and construction of energy projects.

Also in the same month, MRC Allied signed a separate MoU with Guangdong Power Engineering Co., Ltd. (GPEC) to explore LNG projects in the country.

The MoUs were renewed by the parties, after the one-year validity period of the original deals had lapsed.

MRC Allied trimmed its net loss to P7.83 million as of end-March 2019, from P10.10-million loss during the same period a year ago.

“The increase was largely due to the related party transaction with Menlo Capital Corp. to support the general and administrative expenses of the company and the accrual of interest on the bank loans,” the company said.

MRC Allied, which diversified from property to energy development, plans to invest between P80 billion and P100 billion over a 10-year period to achieve its aspirational goal of putting up 10,000 MW of power capacity.

EastWest Bank to raise P10 billion from bonds

EAST WEST Banking Corp. (EastWest Bank) is set to offer P10 billion in peso-denominated bonds to raise fresh funds.

In a disclosure to the local bourse on Thursday, the Gotianun-led lender said its board of directors approved the lender’s issuance of up to P10 billion in bonds to be issued in one or more tranches.

EastWest Bank added that the timing of the issuance will be subject to market conditions.

Banks can now raise fresh funds through corporate bonds after the Bangko Sentral ng Pilipinas last year relaxed its rules by doing away with having to secure approval from them.

UnionBank of the Philippines, Inc. recently raised P5.8 billion in three-year fixed-rate bonds, fetching a coupon of six percent to be paid quarterly until May 2022.

BDO Unibank, Inc., Metropolitan Bank & Trust Co. and Philippine National Bank have also issued peso-denominated bonds recently to diversify funding sources.

The lender did not respond to a request for additional details regarding the bond issuance as of press time.

In June 2018, the bank raised P2.45 billion from the first tranche of its P15-billion long-term negotiable certificates of deposit program.

The 5.5-year notes carry an interest rate of 4.625% to be paid quarterly until December 2023.

EastWest Bank posted a net income of P1.3 billion in the first three months of the year, up 36% from the same period a year ago, driven by improved trading income, lower credit costs and the resumption of the teachers’ lending program of the bank’s rural banking arm.

EastWest Bank said consumer lending, which made up 71% of its loan portfolio, grew by 10% to P177.5 billion in the first three months from P161.3 billion last year. Corporate or middle-market business loans also increased by 19% to P71.6 billion from P60.2 billion in the same period a year ago.

As of March 31, EastWest Bank had a total of 390 stores. Its total automated teller machine network was at 584. Meanwhile, the bank’s subsidiaries have a total of 76 stores.

EastWest Bank’s shares were at P11.44 apiece on Thursday, down two centavos or 0.17%. — KANV

BoJ policy maker warns against ‘reckless’ easing

SHIZUOKA, Japan — Bank of Japan (BoJ) policy maker Makoto Sakurai on Thursday warned against “recklessly” ramping up stimulus just to prop up prices, blaming soft inflation on structural factors that were positive for the economy.

Sakurai said the BoJ’s attempt to hit its 2% target has been hampered by companies’ efforts to boost productivity, as they cope with labor shortages by investing in automation rather than raising wages.

“Improvements in productivity aren’t necessarily bad for the economy. As such, it’s undesirable to expand stimulus further just to deal with weak price growth,” Sakurai said.

“We shouldn’t recklessly seek to achieve our price target with additional easing because doing so could accumulate imbalances in the economy,” he said in a meeting with business leaders in Shizuoka, eastern Japan.

In a news conference after the meeting, Sakurai said the BoJ may consider taking steps to mitigate the demerits of prolonged easing, if doing so becomes necessary in the future.

But he said the central bank did not need to take such steps now nor ramp up stimulus, as more data was needed to decide the next appropriate move might be.

“If necessary, the BoJ will consider taking action that could involve steps beyond the existing policy framework. It could be something within the framework. In any case, that’s something we’ll consider when the time comes,” Sakurai said.

The remarks highlight a longstanding rift between those in the nine-member board who, like Sakurai, are wary of the rising cost of prolonged easing, and those who feel the central bank can do more to fire up inflation.

A former academic, Sakurai said the stress the BoJ’s easy policy is inflicting on financial institutions is increasing.

At the same time, heightening economic uncertainties could increase the need for additional stimulus, he added.

A scheduled domestic sales tax hike in October could hurt the economy if global growth does not pick up by then, he said.

“We don’t need to take additional easing steps now. We can watch developments for the time being. If economic developments take a turn for the worse, we may consider taking action,” he said. “The decision will be data-dependent.”

TOUGH DECISION AHEAD
The BoJ is in a bind. Years of heavy money printing have failed to drive up inflation, forcing it to maintain a radical stimulus program longer than expected and leaving it with little ammunition to fight the next recession.

Ultra-low interest rates are also straining profits of regional banks by narrowing the margin they earn from lending, stoking fears some may face financial trouble in coming years.

Under a policy dubbed yield curve control, the BoJ guides short-term rates at minus 0.1% and long-term rates around zero.

Concerns that escalating trade tensions could hurt global growth drove investors into the safety of government bonds, pushing Japan’s 10-year bond into negative territory.

Sakurai said the drop in bond yields was not a problem yet because they remained within a range the BoJ saw as acceptable.

But he said the BoJ could face a tough balancing act trying to keep the economy afloat, while addressing the rising cost of ultra-low rates.

“We need to consider the side-effects of our policy more than ever before,” Sakurai said. “We also need to look out for the economy. The biggest question is which one to prioritize.” — Reuters

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