Thirst-quenchers for the last hurrah of summer

May 16, 2019 | 12:03 am

JUST before we say goodbye to summer, maximize the balmy weather with lazy summer afternoon outdoor get-togethers.

Bar expert and food and beverage consultant Ryan Viray — now with De La Salle-College of Saint Benilde where he currently teaches Food and Beverage Service Operations and Bar Management in its School of Hotel, Restaurant, and Institution Management — shares these concoctions that are not just refreshing but are likewise excellent for the health.

SPICY NATURE’S COOLER

120 ml lemongrass-infused water

30 ml fresh lemon juice

1 tbsp honey (or more according to preference)

Siling labuyo to taste

Procedure:

Put all ingredients in a cocktail shaker with ice. Shake vigorously. Strain in a Poco Grande glass with ice. Garnish with lemongrass stalk and burned sugared lemon wheel in the drink.

This versatile drink can also be served in beach parties. For a non-virgin version, add a dose of vodka.

CUCUMBER BASIL MAGNIFICO

10 g basil Leaves

25 g cucumber

15 ml fresh lemon juice

2 tsp honey

Splash of lemon soda (Sprite)

Procedure:

Blend basil leaves and peeled cucumber in 60 ml of water. Run the blender for 10 to 20 seconds. Combine all ingredients in a cocktail shaker with ice. Shake well. Strain into a double Old-Fashioned glass over fresh ice. Garnish with basil leaves and cucumber slice in the drink. Top up with lemon soda.

You can opt to transform this virgin drink to a stylish summer cocktail by adding a dash of gin.

Firms urged to future-proof vs cyber risks

May 16, 2019 | 12:03 am

By Denise A. Valdez
Reporter

AS THE Philippines saw a quick rise in cybersecurity awareness and data protection efforts in recent years, companies are now urged to look far ahead to prepare for newer threats that are expected to come in three to five years time.

Content delivery network service provider Akamai Technologies said the best way to future-proof is by teaming up with a cybersecurity provider that would help a business form a strategy against the ever-progressing attacks that emerge.

“Invest in a provider that is going to care about what’s happening in three to five years time. Because you genuinely can’t possibly know… Find someone you can trust to do that for you, and to work with you and advice you as to what’s occurring elsewhere around the world that you may want to think about building into your strategy,” Akamai Technologies Regional Vice President Vaughan Woods said in an interview in Makati City last week.

“The other thing you could do is simply prepare a strategy for how to deal with it. Don’t just buy tools. Have an overall strategy… And that needs to include what your team is going to look like, how you communicate, how you talk to your board about cybersecurity,” he added.

Mr. Woods pointed out that there is a growing level of harm that cyber attackers may cause, as it “used to be a 14-year old kid with a hoodie and a can of Red Bull,” but now they are organized groups, governments, or business competitors.

“As the Philippines has evolved in the sense of its digital strategy, so has the threat externally evolved from different actors. And we’re seeing more common, more frequent attacks, but also more well-orchestrated and more clever attacks on the Philippine market,” he said.

But he said the good news is companies are now more aware of what needs to be done to put the level of cybersecurity in the country at par with the rest of the world.

“The rate of growth from a security maturity perspective has definitely been phenomenal in the Philippines. I think globally, there’s been a steady growth of awareness of security threats. But from where we are today, 2019, and going back to 2016, where the Philippines was, certainly the curve has been a lot steeper. The rate of growth has been a lot steeper for the Philippines,” Akamai Head of Security Technology and Strategy for Asia-Pacific Fernando Serto said.

Mr. Woods added that C-level executives are starting to change their mindsets and are now more willing to spend time and resources to heighten guards against cyber attackers.

“What we learned was that boards (of directors) are now beginning to believe that they must invest in cybersecurity. We’re now at that juncture where the senior executives of a company understand that they need to invest. When you’re at that stage, the cost (of cybersecurity) is no longer prohibitive, because they will need to invest,” he said.

“As soon as you understand the value of the assets that you’re trying to protect, you can dictate how much money is worth investing to protect those,” Mr. Serto added.

Mr. Serto said it is important that companies are receptive to newer technology — whether it be for cyber protection or operational enhancement — to remain relevant in a fast-evolving digital landscape that’s shaping the mindset and behavior of both businesses and its customers.

“My biggest advice to any organization so it can survive in three to five years is that to be more open-minded on how they engage with their customers and how they deploy applications to engage with their customers,” he said.

“One thing that we hear time and time again is that the older organizations say that’s now how we do things. Trying to adopt exactly the same technology that they’ve had for 20 years in today’s digital world, it just doesn’t work. So they have to be more open-minded to doing things differently,” he added.

Term deposit yields drop

May 16, 2019 | 12:03 am

peso remittance — YIELDS on the central bank’s term deposits declined. — *PHILSTAR/KRIZ JOHN ROSALES*

YIELDS ON term deposits continued to decline amid steady demand as the central bank placed a higher volume on the auction block, resuming its offering of the month-long tenor after several weeks.

The Bangko Sentral ng Pilipinas (BSP) on Wednesday received total tenders worth P42.891 billion under its term deposit facility (TDF), above the P40 billion up for grabs. This was also higher than last week’s bids worth P38.540 billion, although that was against a P30-billion offer.

The central bank awarded just P17.486 billion in the seven-day papers yesterday as its P20-billion offer was undersubscribed. This was also lower than the P20.53 billion in tenders seen last week.

Accepted yields for the one-week papers ranged from 4.453%-4.76% yesterday, slightly lower than the 4.55%-4.76% margin seen at last week’s offer. This caused the average rate to settle at 4.5695%, also down from the 4.6925% seen last week.

Tenders for the 14-day papers likewise declined to P14.26 billion this week from P18.01 billion during the May 8 auction, but still filled the P10 billion the BSP offered to investors.

Returns sought by banks for parking their funds with the BSP dropped to a range of 4.5%-4.75% yesterday from 4.6%-4.76% the previous week. The average yield on the two-week tenor declined to 4.6013% from last week’s 4.6961%.

Meanwhile, the BSP saw P11.145 billion in tenders for its 29-day term deposits, slightly higher than the P10 billion on offer. Yields sought by banks ranged from 4.5%-4.75%, resulting in an average rate of 4.6495%.

The central bank placed its month-long term deposits on the auction block anew yesterday after eight weeks of not offering the tenor.

The TDF stands as the central bank’s primary tool to shore up excess funds in the financial system and to better guide market interest rates.

The BSP’s Monetary Board (MB) last Thursday cut benchmark interest rates by 25 basis points (bp) in its third policy review for the year, hours after the Philippine Statistics Authority (PSA) reported that the economy grew at 5.6% — the slowest clip in four years — last quarter and two days after the PSA said inflation eased to 3% in April — the slowest pace in 16 months.

The MB’s decision, which it said was due to a “manageable” inflation outlook, brought the interest rate on the BSP’s overnight reverse repurchase facility to 4.5% effective last Friday. The rates on the overnight lending and deposit facilities were also reduced accordingly to 5% and 4%, respectively.

This partially dialled back the cumulative 175 bps in hikes implemented by the BSP through five meetings last year as it sought to rein in inflation, which hit a peak of 6.7% in September and October.

Following its review, the BSP also lowered its 2019 inflation forecast to 2.9% from 3% in the previous meeting, but upped next year’s outlook to 3.1% from 3%. Inflation averaged at 3.6% in the first four months.

BSP Governor Benjamin E. Diokno said a potential cut in big banks’ reserve requirement ratio (RRR), currently at 18%, will be on the table at the MB’s meeting this week.

The central bank has said reducing banks’ RRR by 100 bps will release about P90 billion in liquidity into the financial system.

Cyber risks to exceed disasters for insurers

May 16, 2019 | 12:02 am

CYBER RISKS will soon become bigger risks than natural catastrophes for the insurance sector, Scor Chairman and Chief Executive Officer Denis Kessler said, recommending the industry build a comprehensive, common global scale to assess cyber-related incidents.

“I dream of a kind of Richter scale for cyber security,” Kessler said at a conference on cybersecurity held at the Bank of France, referring to the scale used to measure earthquakes. “It would be very helpful to have measurement and modeling tools. Unless we can model, it’s very difficult for us to provide coverage. We have scenarios but not modeling tools.”

Cybersecurity experts and top executives in the financial sector as well as representatives from the European Central Bank (ECB), the Federal Reserve and the central banks of Canada and Japan convened in Paris to assess the risk.

SYSTEMIC RISK
ECB Executive Board Member Sabine Lautenschlaeger said it was “but a matter of time” before serious incidents would hurt the systemic sector.

To try and prepare for potential attacks, the Group of Seven — currently presided by France — will simulate a cross-border crisis next month.

“This is a world first and I am confident we will be able to learn a great deal from it,” French Finance Minister Bruno Le Maire said at the conference in Paris.

Bank of France Governor Francois Villeroy said the cybersecurity threats are a “major and systemic risk” to the financial sector as attacks are more frequent and public action on cyber attacks in the sector is “sub-optimal.” He said the crisis-simulations should be repeated to enhance the resilience of the financial system.

“The monetary impact — of attacks so far — was not so high, negligible. But I don’t feel comfortable, calm, not at all, it is a question of time, let me be very clear,” Lautenschlaeger said. She called on the financial institutions to review their information systems infrastructure, conduct stress tests and joint exercises to improve their resilience, she said.

$600 BILLION A YEAR
While the cost of cyber risks has been small until now, the panel agreed it was only bound to increase. Kessler said the cyber risk could exceed $600 billion per year “in the worst case scenario.” That compares with the yearly cost of natural catastrophes, which he said is about $230 billion. The cyber risk “would dwarf it. So it gives you a size of the risk,” he said.

Still, “the demand for cyber risk coverage well exceeds the supply and this is an issue,” Kessler said, calling for a “re-balance” of the situation. The lack of aggregated data monitoring incidents is partly responsible for the shortage of coverage, he said. Kessler said the sector needs to coordinate and also to partner with authorities “to build databases and a taxonomy to share information,” or a common vocabulary for policy makers and companies to use in assessing cyber-related impact on the financial or industrial sector.

For Lautenschlaeger and Kessler, cybersecurity is shared responsibility and companies must invest to have better protections and understanding of the risk, they said. — Bloomberg

Wilcon nets P484M on double-digit sales growth

May 16, 2019 | 12:02 am

EARNINGS of Wilcon Depot, Inc. jumped 18.2% in the first three months of the year, boosted by a double-digit increase in sales alongside steady margin expansion.

In a regulatory filing, the listed home improvement and construction supplies retailer said net income reached P484 million following a 21.9% uptick in net sales to P5.73 billion in the first quarter.

“The increase is attributed mainly to a strong net sales growth and healthy gross profit margin expansion,” the company said in a statement.

Depot format stores, which accounted for 96.1% of total net sales, saw revenues grow 22.5%, driven by same-store sales growth of 8%. New stores also contributed to topline growth as the company opened its second depot in Davao City during the quarter.

Wilcon’s smaller format, Home Essentials, contributed 2.8% of net sales which stood at P161 million. Home Essentials recorded a same-store sales growth of 4.5%.

The balance of net sales came from project sales, or those made to large property developers, which firmed up 4.9% to P65 million.

The company also noted that gross profit margin improved to 32%, against the 31.3% it booked in the same period a year ago.

“The improvement was brought about mainly by the rising contribution of higher margin in-house and exclusive products to total net sales, which accounted for 48.8% this period,” the company said.

Wilcon closed the quarter with 53 stores, bringing it closer to its target of 59 outlets by the end of the year. — Arra B. Francia

The Carol Burnett Show’s Tim Conway, 85

May 16, 2019 | 12:02 am

EMMY-WINNING actor Tim Conway, who brought an endearing, free-wheeling goofiness to skits on The Carol Burnett Show that cracked up his cast mates as well as the audience, died on Tuesday at the age of 85, his publicist said.

Publicist Howard Bragman said Conway died in the Los Angeles area on Tuesday morning. Prior to his death, he had suffered complications from normal pressure hydrocephalus (NPH) and had no signs of dementia or Alzheimer’s, Mr. Bragman said.

Mr. Conway won three Emmy awards for acting on the Burnett show and a fourth as a writer in the 1960s and ’70s. He also won guest actor Emmys for a 1996 appearance on Coach and another in 2008 for 30 Rock.

Ms. Burnett said on Tuesday she was “heartbroken” at Mr. Conway’s death.

“He was one in a million, not only as a brilliant comedian but as a loving human being. I cherish the times we had together both on the screen and off. He’ll be in my heart forever,” she said in a statement.

Vicki Lawrence, who co-starred on The Carol Burnett Show, called Ms. Conway “hysterical, crazy, bold, fearless, humble, kind, adorable… The angels are laughing out loud tonight,” the actress wrote on Tuesday in an Instagram posting.

Ms. Conway first found television fame on the 1960s comedy McHale’s Navy playing Ensign Parker, a befuddled by-the-book officer in a group of unconventional sailors in the Pacific during World War II.

He would find greater success in the comedy sketches on Ms. Burnett’s show starting in 1968. He was at his best with characters that were a little naive, clumsy or slow-witted, and especially when teamed with straight man Harvey Korman and given the chance to show off his improvisational and slapstick skills.

“Nobody could be with Tim and keep a straight face once he got on a roll,” Ms. Burnett said in a 2003 interview with the Television Academy Foundation.

She said Mr. Conway would stick with a sketch’s script through dress rehearsal but once it was time to tape the performance for a broadcast, he began freelancing. His improvised antics often reduced his co-stars — especially his close friend Korman — to tears of laughter.

“I think Conway’s goal in life was to destroy Harvey,” Burnett told the Television Academy Foundation.

In one popular skit, Mr. Conway’s portrayal of an inept dentist who accidentally injects himself with painkiller resulted in Korman, who was playing the patient, laughing so hard that he wet his pants, Ms. Burnett said.

Mr. Conway’s other most memorable recurring characters included an elderly man whose shuffling pace always caused trouble and Mr. Tudball, a businessman plagued by an indifferent and inept secretary played by Ms. Burnett.

“People have often asked me, ‘If you weren’t in show business, what would you be doing?’” Mr. Conway wrote in his memoir What’s So Funny?: My Hilarious Life. “The truth is I don’t think there’s anything else I could be doing so the answer would have to be, nothing… I guess you could say I’m in the only business I could be in.”

His popularity on the Burnett program led to his own shows — a sitcom in 1970 and a variety show in 1980 — and they lasted about a year each. He said they failed because he was not comfortable being the star.

Before Korman’s death in 2008 he and Mr. Conway toured with an act that featured stand-up comedy, recreations of their better-known skits and question-and-answer sessions with the audience.

His movie work included The World’s Greatest Athlete in 1973, The Apple Dumpling Gang in 1975, The Shaggy D.A. in 1976, The Prize Fighter in 1979, and Private Eyes in 1980.

Mr. Conway also starred in the Dorf series of short videos as a sawed-off golf instructor, borrowing the accent his Mr. Tudball character used. He said Dorf was one of his favorite characters.

Mr. Conway, who was born on Dec. 15, 1933, grew up near Cleveland and after serving in the Army worked in Cleveland radio and developed comedy routines. — Reuters

RCBC to issue P5 billion in sustainability bonds

May 16, 2019 | 12:02 am

RIZAL COMMERCIAL Banking Corp. (RCBC) is set to issue at least P5 billion in two-year peso-denominated sustainability bonds, the first of its kind in the country, with the proceeds to fund environmental and social projects.

In a disclosure to the local bourse on Wednesday, the Yuchengco-led lender announced it will offer a Peso ASEAN Sustainability Bond amounting to P5 billion, with an option to upsize.

The sustainability bonds carry a coupon of 6.15% per annum, and will be offered to the public from May 14 to 28, unless adjusted by the bank. They will be listed on the Philippine Dealing & Exchange Corp. on or around June 4.

“The bank is proud to pioneer another first in the Philippine capital markers after its issuance of green bonds earlier this year,” RCBC Senior Executive Vice- President and Treasurer Horacio E. Cebrero III was quoted as saying in the disclosure.

The fund-raising activity comes after RCBC announced last week the establishment of its Sustainable Finance Network, which serves as a guideline for sustainable financing instruments to fund loans and projects that have environmental and social benefits.

This will be the first debt note in the country to be issued under the Association of Southeast Asian Nations (ASEAN) Sustainability Bond Standards 2018.

“Proceeds from the ASEAN Sustainability Bond will go towards strengthening RCBC’s commitment to the sustainable initiatives of its customers,” Mr. Cebrero added.

In particular, the bank will use the bonds’ proceeds to fund the following projects: renewable energy, green buildings, clean transportation, energy efficiency, pollution prevention and control, sustainable water management, environmentally sustainable management of living natural resources and land use, affordable basic infrastructure, access to essential services, employment generation, affordable housing and socioeconomic advancement and empowerment.

“The bonds provide investors with a means to channel their investible funds towards projects with positive environmental and social impacts,” RCBC said.

The bank mandated ING Bank N.V.-Manila branch as the sole arrange for the issuance and sustainable structuring adviser for its sustainable finance framework.

In January, it raised P15 billion worth of 1.5-year green bonds under its green finance framework. Proceeds will be used to support RCBC’s expansion and initiatives in the green space.

The bank added that the sustainable bonds to be raised this month are in support of the Securities and Exchange Commission’s (SEC) thrust to develop the sustainable financing in the domestic market.

The SEC approved the guidelines for the issuance of social and sustainability bonds late last month under the ASEAN Social Bond Standards.

RCBC posted a P1.3-billion net income in the first quarter, up 15% from P1.1 billion booked in the same period in 2018.

Shares in RCBC closed unchanged at P26.20 apiece yesterday. — Karl Angelo N. Vidal

Tencent’s PUBG replacement ‘Game for Peace’ rakes in $14M in 72 hours

May 16, 2019 | 12:01 am

BEIJING — Tencent Holdings Ltd.’s alternative to its video game “PlayerUnknown’s Battlegrounds” (PUBG) in China became the world’s top-grossing mobile battle royale title on Apple’s iOS app store in the first 72 hours of its launch, research showed.

US app analytics firm Sensor Tower said on Friday that China’s App Store users had spent more than $14 million on “Game for Peace” through in-app purchases.

The Chinese video gaming leader shut down its test version of global blockbuster PUBG in China last week and shifted users to the similar, more patriotic video game that, unlike PUBG, has regulatory approval to generate revenue.

It had waited in vain for more than a year for approval to earn money on PUBG via in-app purchases, having given the gory, South Korean-made game a socialist makeover to meet stringent government rules.

Tencent did not immediately respond to requests for comment on Monday.

Sensor Tower also said the sum earned by “Game for Peace” over the first three days was approximately six times the total spent by users on PUBG in other countries where it is available to play. — Reuters

1950s, ’60s Hollywood star Doris Day, 97

May 16, 2019 | 12:01 am

ACTRESS Doris Day, who became one of the greatest box-office attractions of her time as the cheery, freckle-faced personification of wholesomeness, died on Monday at the age of 97, her foundation said on Monday.

Ms. Day, who co-starred with 1950s and ’60s superstars such as Rock Hudson and Cary Grant, died at her Carmel, California home after a bout with pneumonia, the Doris Day Animal Foundation said on its website.

Her shiny girl-next-door image was built on a series of innocent romantic comedies, including Pillow Talk, for which Ms. Day received an Oscar nomination, That Touch of Mink and The Thrill of It All.

Ms. Day also had hit records, most notably “Que Sera, Sera” from the movie The Man Who Knew Too Much. It became her theme song, even though she had initially been reluctant to record it.

Ms. Day’s life was not always as sunny as her movie roles. She married four times, was divorced three times and widowed once, suffered a nervous breakdown and had severe financial trouble after one husband squandered her money.

“My public image is unshakably that of America’s wholesome virgin, the girl next door, carefree and brimming with happiness,” she said in a memoir, “an image, I can assure you, more make-believe than any film part I ever played. But I am Miss Chastity Belt and that’s all there is to it.”

“She’s the girl every guy should marry,” a critic wrote in the Saturday Review. “Marilyn Monroe, Elizabeth Taylor, Kim Novak? They’d all be trouble. Doris Day would be true blue, understanding, direct, honest, and even a little sexy.”

Tributes to her memory poured in from fellow entertainment giants.

Former Beatle Paul McCartney said Ms. Day was a “true star” who had “a heart of gold.”

“I will miss her but will always remember her twinkling smile and infectious laugh,” Mr. McCartney said on his website.

“She was a wonderful friend to us and a lovely and very talented lady,” singer Tony Bennett said on Twitter. “We will miss her beautiful smile.”

Ms. Day was born Doris von Kappelhoff on April 3, 1922, in Cincinnati and headed to California at age 14 to be a dancer. She abandoned that dream after her right leg was broken in an auto accident.

Ms. Day concentrated on singing and at 16 had a job with Les Brown, one of the top orchestra leaders of the day, and recorded her first hit, “Sentimental Journey,” with him. She changed her surname at the suggestion of a band leader who heard her sing “Day by Day.”

At 17, Ms. Day married Al Jorden, a trombone player who she later claimed beat her. Her only child, son Terry, was born in 1942, and the couple divorced the following year.

Ms. Day’s movie debut, Romance on the High Seas in 1948, was a hit.

A series of musicals followed with Ms. Day often playing a singer trying to break into the entertainment world: My Dream Is Yours in 1949, It’s a Great Feeling in 1949 and Tea for Two in 1950.

In 1953, she landed the title role in Calamity Jane, and success continued in 1955 as she teamed with Frank Sinatra for the musical Young at Heart and with James Cagney for the drama Love Me or Leave Me. She expanded her range again in Alfred Hitchcock’s remake of his own The Man Who Knew Too Much, which co-starred Jimmy Stewart.

Ms. Day returned to light comedy in 1957 with The Pajama Game and two years later first joined forces with Hudson for Pillow Talk, her most popular movie and the one that earned her an Oscar nomination.

She and Mr. Hudson made some of the most popular — and profitable — movies of the early 1960s, including Lover Come Back, Move Over Darling, and Send Me No Flowers.

In 1951 Ms. Day married agent Martin Melcher and after his 1968 death, she found he had left her nearly penniless. She had a nervous breakdown in 1974 and then won $22 million in damages from Mr. Melcher’s attorney and other associates who had mismanaged her money.

New success came, however, with The Doris Day Show on TV, which ran for four seasons. Day did not learn until after Mr. Melcher’s death that he had committed her to do the show and she was initially reluctant to do it.

In 1976, Ms. Day married restaurant owner Barry Comden but they also divorced.

After retiring from performing, Ms. Day worked mainly with the Doris Day Animal Foundation, helping abused animals. Her home in Carmel, California, was usually full of dogs and cats, mostly adopted strays.

She stayed away from entertainment circles for more than 20 years after accepting a lifetime achievement honor from Golden Globe organizers in 1989 but released a CD in 2011. Proceeds from the recording went to her animal foundation. — Reuters

Melco Philippines set to be delisted in June

May 16, 2019 | 12:01 am

MELCO Resorts and Entertainment (Philippines) Corp. (MRP) stands to get delisted from the local bourse by June should it fail to meet the minimum public ownership (MPO) requirement.

In a memorandum dated May 14, the Philippine Stock Exchange, Inc. (PSE) said that MRP will be automatically removed from the roster of listed companies on June 11, as it has been non-compliant with the MPO rule of 10% since December 2018.

MRP’s public float dropped to 2.06% after its largest shareholder, MCO (Philippines) Investments Limited (MCO Investments), conducted a tender offer to minority stockholders late last year. Trading of shares in MRP has been suspended since, in order to give the company time to increase its public ownership.

The company earlier tried to exit the PSE through voluntary delisting, citing its inability to raise funds through share issuances despite efforts to maintain its listed status. Its mandatory tender offer price of P7.25 each at the time, however, was met with opposition from market participants questioning the low valuation.

MRP then withdrew its voluntary delisting plan, but MCO Investments went ahead with its no longer mandatory tender offer. This led to the drop in public ownership. — Arra B. Francia

Cultural Center to pay tribute to National Artists today

May 16, 2019 | 12:01 am

THE SEVEN individuals who were conferred the National Artist Awards in 2018 will be given a tribute today at 6 p.m. at the Tanghalang Nicanor Abelardo of the Cultural Center of the Philippines.

The event is open to the public.

The seven are cartoonist Lauro “Larry” Alcala, theater advocate Amelia Lapeña- Bonifacio, composer Raymund “Ryan” Cayabyab, filmmaker Kidlat Tahimik, architect Francisco Mañosa, writers Resil Mojares and Ramon L. Muzones.

The program, which is directed by Cris Villongco, will be filled with iconic representations of the works of the seven artists.

EastWest Bank earnings rise 36% in first quarter

May 16, 2019 | 12:01 am

eastwest_philamlife_080317 — EAST WEST Banking Corp. booked a higher net income in the first quarter. — *BW FILE PHOTO*

EAST WEST Banking Corp. (EastWest Bank) booked a 36% increase in net income in the first quarter on the back of improved lending and trading gains.

In a disclosure to the Philippine Stock Exchange on Wednesday, EastWest Bank said its net profit grew 36% year-on-year to P1.3 billion in the first quarter from P945 million in the same period last year.

The bank’s first quarter income translated to a return on equity of 12%.

EastWest Bank attributed the increase in its income to “the resumption of its rural bank subsidiary’s DepEd (Department of Education) loan program, improved trading income, and lower credit costs.”

The lender’s revenues rose by 13.3% to P6.6 billion in the first quarter from P5.8 billion in the same period last year, primarily driven by fees and commissions growing by 29% to P1.3 billion. Securities and foreign exchange trading gains stood at P525.1 million, a reversal of the loss worth P136.5 million in the comparable year-ago period.

Interest income increased by 19% to P7 billion. EastWest Bank said around 50% or P516.1 million of the increase in interest income was accounted for by the rise in consumer loans.

Total gross loans grew 12% to P249 billion on the back of strong performances from both consumer and business loans.

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.

Interest expense, on the other hand, more than doubled to P2.3 billion from P1 billion last year. This caused its net interest income to fall by by 3% to P4.69 billion to translate to a net interest margin of 6.4%.

On the funding side, total deposits grew 12% to P286.2 billion in the quarter. The bank’s low-cost deposits increased by 4% year-on-year to P143.1 billion from P137.4 billion.

Meanwhile, operating expenses excluding provisions for losses increased by 19% to P4 billion, mainly due to business taxes and other business related expenses. Provisions for losses went down by 22% to P872.6 million from the previous year.

EastWest Bank’s capital rose 10% to P43.9 billion, while total assets stood at P372.8 billion at end-March, growing by 18% from the same period last year.

The bank’s capital adequacy ratio stood at 12.6%, while its common equity Tier 1 ratio stood at 9.9%.

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

“For the rest of 2019, East West expects market liquidity situation to improve and interest rates to go lower as the year progresses,” EastWest Bank said in its quarterly report. “This is expected to be felt in the second half of the year. In the first six months of the year, we expect continued challenges on net interest margins as deposit costs is expected to remain high while competition will exert pressure for loan yield adjustments to be subdued.”

EastWest Bank shares closed at P10.98 apiece on Wednesday, up by 0.73%. — RJNI

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