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PLDT opens Cebu data center, its 10th in PHL

By Patrizia Paola C. Marcelo, Reporter
MANDAUE CITY, Cebu — PLDT, Inc. has launched its tenth data center in the country.
The telecommunications giant on Tuesday launched the P1-billion VITRO data center in this city, aimed at serving the 10,000 businesses in the province and in the Visayas.
VITRO Cebu 2 has 800 racks, bringing ePLDT’s current rack capacity to 9,150. The new facility is built from the ground up and has new technologies and features, including finger-vein scanning features, special closed-circuit television cameras, and 24/7 monitoring and surveillance.
PLDT Chief Revenue Officer Ernesto R. Alberto said the data center is targeting companies from banking and insurance, retail, government, and business process outsourcing (BPOs) industries, as well as small and medium enterprises.
“Before, companies are not really going into data centers, but now a lot of companies, even small and medium enterprises, see the value… as more companies rely on servers,” PLDT Enterprise head Juan Victor I. Hernandez said in a press conference here.
Mr. Alberto said for the data center, they target a utilization rate between 40-50% by year-end from the current 35%. He said when the utilization rate goes over 50%, the company will be looking at building an eleventh data center.
“International companies have more racks. There are more local companies but we feel there’s still room for improvement in terms of number of racks to be offloaded,” Mr. Hernandez said.
The VITRO Network of Data Centers includes facilities in Makati, Pasig, Clark economic zone, and Davao, the first in Mindanao. The 10 sites are interconnected through a software-defined network, which allows data-centric services to be available across all facilities.
PLDT Enterprise is eyeing more ventures and investments in infrastructure expansion and information and communication technology (ICT) this year.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

Fluidity and mastery of colors


By Nickky F. P. de Guzman, Reporter
THE WORKS of Filipino artist Edgar Doctor heal. In his ongoing exhibition at the Conrad Hotel’s Gallery C called Master of Colors, he showcases the power of vibrant colors and how they have the ability to cure the tired eyes of the viewers, caused by the bleakness and monotony of the everyday life. His subjects — which range from mangoes and fish to a bowl of sinigang (sour soup) — are about the mundane and simple, but they show his mastery in watercolor: they are fluid and without edges, and aesthetically therapeutic.
“I don’t know,” Mr. Doctor said when asked of the repeated appearances of fish and fruits in his latest exhibitions.
But what he does know is that the idea that watercolor is a difficult medium is a misconception he’d like to debunk. Mr. Doctor says that a mistake in watercolor can still be “cured” (pun intended) like oil and acrylic, but entails mastery in stroke.
“All I can say is that doing an artwork is not about its difficulty, but creating an artwork lies in the artist’s enjoyment and satisfaction while creating a piece. Para kang nanliligaw (It’s like wooing a woman). When you do it in haste, there is no glory in it. So paghirapan mo, ’yun ang masarap (You work hard for it — that is what feels good),” Mr. Doctor said.
Born in 1941, Mr. Doctor is recognized as one of the country’s finest visual artists. Besides watercolor — which is what he is best known for — he does metal and wood sculptures, print, and oil and acrylic paintings.
“Being an artist requires you to be always in the mood. As they say, art is the first love of an artist. His wife is second, a mistress. Art is our lifeline, we’re like fish taken out of water [if you take away art],” said the 77-year-old artist who works on “at least drawing” every day to keep his art alive.
“The passion is there. ’Pag gusto mo yung trabaho mo walang kasawaan (if you love your work you will never tire of it). I make it a point to at least draw every day. The discipline is there. Art is jealous, iwanan mo ’yan, iiwan ka din nyan eh (leave it, and it will leave you, too),” he said.
A member of the Saturday Group of artists, he shuttles between Manila and New York twice a year. He was listed in the 2,000 Outstanding Artists and Designers of the 20th Century published by the International Biographical Center in Cambridge, England.
Conrad Hotel’s Of Art and Wine series, featuring 30 works by Mr. Doctor, is on view until June 8.

Pilipinas Shell earnings decline by 20% in Q1

HTTP://PILIPINAS.SHELL.COM.PH/

PILIPINAS Shell Petroleum Corp. reported on Tuesday a first-quarter net income of P2.32 billion, lower by 20% compared with the P2.89 billion recorded in the same period last year after a slide in revenues.
In a regulatory filing, Pilipinas Shell said net sales during the period rose 19% to P49.54 billion, as prices of fuel products rose due to the increase in average global oil prices.
Cost of sales grew at a faster clip of 23.5% to P42.46 billion, as a result of higher purchase costs.
The company in a statement said it hit an “industry-leading” 27% return on capital. It also recorded growth in operational cash flow by 23% on a trailing 12-month basis.
“Pilipinas Shell’s performance in the first quarter demonstrates the strength of our brand. Amidst the challenges brought by higher excise taxes, customers continue to patronize our products,” said Cesar G. Romero, Pilipinas Shell president and chief executive officer, in a statement.
“We even saw an increase in V-Power uptake of 2% vs Q1 2017. We remain pleased with our marketing businesses which continue to demonstrate strong underlying performance both financially, and operationally,” he added.
Pilipinas Shell also said operational cash flows during the period increased 23% to P3.5 billion year on year, “mainly driven by total sales volume growth of 4%, higher premium fuel penetration and better working capital management.”
While softer regional refining margins during the quarter contributed to the roughly 20% decrease in overall earnings, Pilipinas Shell said its marketing business increased profitability by 13%.
“In retail, sales volumes were sustained while increasing premium fuel sales, closing the quarter with 27% V-Power penetration,” it said.
Pilipinas Shell opened four new stations in the first three months of the year, ending the quarter with 1,047 retail sites.
On Tuesday, shares in the company slipped 1.39% to close at P53.05 each. — V.V. Saulon

Modigliani sells for $157.2M in New York — Sotheby’s

NEW YORK — A stunning nude that is the largest painting produced by Italian artist Amedeo Modigliani sold for $157.2 million in New York on Monday, becoming the fourth most expensive work of art sold at auction.
Painted a century ago, Modigliani’s masterpiece Nu couche (sur le cote gauche) fetched the highest price in Sotheby’s history and was the star single lot in the May art auction season in New York.
Modigliani follows Leonardo da Vinci and Pablo Picasso as the third highest-selling artist at auction. Monday’s sale failed to eclipse the $170.4 million paid for another Modigliani nude at Christie’s in 2015.
Nearly 58 inches (147 centimeters) wide, the picture was the cover star of a recent retrospective at the Tate Modern gallery in London.
Modigliani reinvented the nude for the modern era, and when his series of paintings were first exhibited in 1917, they were considered so shocking that police closed the show in Paris.
Bidding was restrained, lasting three to four minutes and opening at $125 million before auctioneer Helena Newman brought the hammer down at $139 million. The final price includes a buyer’s premium.
The price chalks up a healthy profit for its seller, who acquired the picture in 2003 for $26.9 million.
Modigliani completed 22 reclining nudes and 13 seated nudes between 1916 and 1919. Most of the former are found in museums, such as The Museum of Modern Art and the Metropolitan Museum of Art in New York.
Simon Shaw, co-head of impressionist and modern art at Sotheby’s, said the painting sold Monday, while rooted in tradition, reflected the changing status of women during World War I.
“This is a nude of a very self-possessed, sexually confident woman who is not looking out from a distance. She’s absolutely meeting our gaze,” he told AFP prior to the sale.
Modigliani’s dealer Leopold Zborowski gave him a stipend of 15 francs a day and paid the models five francs to pose in a Paris apartment. — AFP

Higher passenger revenues boost Cebu Air profit in 1st quarter

CEBU AIR, Inc., the listed operator of Cebu Pacific, reported its net income increased by 12% to P1.437 billion, driven by higher passenger revenues from a 10% increase in average fares.
In a regulatory filing, the Gokongwei-led company said revenues went up 8.3% to P18.261 billion for the three month period. The bulk came from passenger revenues, which rose 11.4% to P13.676 billion.
“This increase (in passenger revenues) was largely due to the 10.0% increase in average fares to P2,805 for the three months ended March 31, 2018 from P2,551 for the same period last year,” it said.
Cebu Air reported passenger volume grew to 4.876 million from 4.813 million last year. The budget carrier is currently has 2,622 flights a week.
The company saw a 26% increase in cargo revenues to P1.279 billion in the first quarter, while ancillary revenues fell 7.5% to P3.3 billion due to lower baggage and pre-ordered meals with the suspension of Middle East operations in 2017.
Higher fuel prices, weak Philippine peso and the airline’s purchase of new aircraft drove the company’s operating expenses 11.8% up to P15.997 billion.
“The increase was primarily attributable to the rise in fuel prices in 2018 coupled with the weakening of the Philippine peso against the US dollar…. The growth in the airline’s seat capacity from the acquisition of new aircraft also contributed to the increase in expenses,” Cebu Air said.
Expenses from flying operations increased 15% to P6.91 billion, mainly due to a 18.9% increase in aviation fuel expenses to P5.853 billion.
Cebu Air also recorded net foreign exchange losses of P838.619 million for the three months, as the Philippine peso weakened against the US dollar. The Philippine peso averaged P52.16 per US dollar for the three months ended March 31, from P49.93 per US dollar for the 12 months ended Dec. 31, 2017. — D.A. Valdez

Under the hammer: record art auctions

NEW YORK — A stunning nude that is the largest painting produced by Italian artist Amedeo Modigliani sold for $157.2 million in New York on Monday, becoming the fourth most expensive work of art sold at auction.
The exact value of private sales are often not revealed. But a Willem de Kooning painting and a Gauguin were reportedly sold separately for $300 million each in 2015, according to US media.
Below is a list of the 10 most expensive art works ever sold at an auction. All are paintings and all were sold in New York, the capital of the global art market.
1. Leonardo da Vinci’s Salvator Mundi or Savior of the World, sells for $450.3 million at Christie’s in November 2017.
2. Pablo Picasso’s The Women of Algiers (Version O) fetches $179.4 million at Christie’s in May 2015.
3. Amedeo Modigliani’s Nu couche of a reclining naked woman draws $170.4 million at Christie’s in November 2015.
4. Modigliani’s Nu couche (sur le cote gauche), another work from his series of nudes, sells for $157.2 million at Sotheby’s in May 2018.
5. Francis Bacon’s triptych Three Studies of Lucian Freud sells for $142.4 million at Christie’s in 2013.
6. Edvard Munch’s pastel The Scream, fetches $119.9 million at Sotheby’s in 2012.
7. Picasso’s Young Girl With a Flower Basket sells for $115 million at Christie’s in May 2018.
8. Jean-Michael Basquiat’s 1982 Untitled sells for $110.5 million at Sotheby’s in May 2017.
9. Picasso’s Nu au plateau de sculpteur (Nude, Green Leaves and Bust) lures $106.4 million at Christie’s in May 2010.
10. Andy Warhol’s Silver Car Crash (Double Disaster), sells for $105.4 million at Sotheby’s in November 2013. — AFP

Gov’t makes partial award of Treasury bills

By Melissa Luz T. Lopez, Senior Reporter
THE GOVERNMENT made a partial award of the P15 billion worth of Treasury bills (T-bills) it offered yesterday, as market players largely preferred shorter-termed papers and demanded higher rates for the one-year tenor.
Bids received during Tuesday’s auction reached P28.724 billion, nearly double the amount the Bureau of the Treasury wanted to raise. However, the bureau only awarded P11.236 billion worth of papers, as bulk of the demand went to the three-month and six-month instruments.
Rates saw mixed movements during the offering.
The Treasury raised P5 billion by offering 91-day papers as bids reached triple the auction size at P15.086 billion. Rates moved slightly higher to average 3.451% coming from the 3.439% fetched the previous week.
Demand for the 182-day tenor also remained strong as the offer was oversubscribed, attracting P10.492 billion and allowing the Treasury to fully award the P4 billion it eyed to raise. The average rate even slipped to 3.934% from the 3.958% recorded during last week’s offering.
In contrast, demand for the 364-day notes remained sluggish as investors only put forward P3.146 billion in bids versus the P6 billion the government was programmed to raise. The Treasury even rejected some bids and awarded only P2.236 billion, as it capped bids at 4.35% even as offers went as high as 4.9%.
This brought the average yield to 4.226%, higher than the 3.986% seen a week ago which were rejected by the Treasury.
At the secondary market yesterday before the auction, the 91-, 182- and 364-day papers were quoted at 3.4965%, 3.8272% and 4.0853%, respectively.
After the auction, yields on the three-month, six-month and one-year papers closed at 3.4413%, 3.8306% and 3.9187%.
National Treasurer Rosalia V. De Leon said market preference towards the shorter T-bills is due to the decision of the Bangko Sentral ng Pilipinas (BSP) to raise benchmark rates by 25 basis points last Thursday.
“Still, rates continue to trend upwards given expectations from some that there will still be additional rate hikes coming from the BSP,” Ms. De Leon told reporters following the auction.
The Monetary Board tightened policy settings last week as inflation continues to trend higher. It now expects prices to maintain its ascent until the end of the year.
Sought for comment, a trader said yesterday’s auction results were expected.
“Most investors are still asking for higher premiums on the longer tenors like the one-year… Concerns regarding domestic inflation and domestic budget deficits lead to supply risks,” the trader said via phone.
Inflation has averaged 4.1% as of end-April, already beyond the 2-4% target set by the central bank for the full year.
Work is also underway for additional bond offerings for investors, the National Treasurer said, in anticipation of the government’s increased funding requirements.
Ms. De Leon said plans to offer dollar-denominated notes before the year’s end will be for pre-funding as well as for debt management.
“[W]e are more proactive given that we already expect what would be the emerging developments in the market next year, so we are just seeing if we can have more lead time in terms of preparation for our funding for 2019,” she told reporters.
Finance Secretary Carlos G. Dominguez III has said the dollar bond sale will be timed ahead of future tightening moves by the United States Federal Reserve, which are expected to push global yields higher.
Meanwhile, the government has also engaged five banks for its planned issuance of yen-denominated debt papers.
Ms. De Leon said they have already mandated the following lenders for the maiden issuance of samurai bonds: Mizuho Bank, Ltd., The Daiwa Bank, Ltd., Nomura, Sumitomo Mitsui Banking Corp., and the Mitsubishi UFJ Group.
Plans for a fresh offering of retail Treasury bonds are likewise on the table, she added.
The government plans to borrow a total of P888.23 billion this year to plug its budget deficit that is capped at 3% of the country’s gross domestic product, or P523.7 billion.
The Development Budget Coordination Committee raised the share of foreign borrowings to 35% this year in a bid to diversify its financing base, from 26% previously expected for 2018 and 20% in 2017. The government will then maintain the borrowing mix at 75-35% for 2019 to 2022, still in favor of domestic sources.

Ayala Land to form JV for projects in Aurora, Quezon

AYALA LAND, Inc. (ALI) is teaming up with two companies headed by businessman Romeo G. Roxas for two projects in Aurora and Quezon province.
In a disclosure to the stock exchange on Tuesday, the listed property giant said it has signed a memorandum of understanding with Green Square Properties Corp. (GSPC) and Green Circle Properties and Resources, Inc. (GCPRI) for the establishment of a joint venture company.
ALI is set to own 51% of the joint venture (JV), while 49% will be split between GSPC and GCPRI.
The JV firm will be tasked to develop 27,852 hectares of land located in Dingalan, Aurora, and General Nakar in Quezon province.
“The long-term vision for the properties is to support the government’s initiative of developing the country’s eastern coast and promoting inclusive growth through the phased development of a master planned mixed-use estate, principally oriented towards tourism, commercial, residential, and institutional uses,” ALI said in a statement.
The company noted it will incorporate environmental and ecological programs in the development of the properties to conserve the forest and to protect its biodiversity.
One of the projects developed by GSPC and GCPRI is the 1,000-hectare Taal Volcano Ridge in Tagaytay.
ALI is known for developing mixed-use estates that house residential, office, commercial, and retail developments. So far, it has 25 such estates under its portfolio. Its 25th is the P53-billion Parklinks, a 35-hectare project along the C-5 corridor being developed with Lucio C. Tan, Sr.’s Eton Properties Philippines, Inc.
ALI booked a 17% increase in earnings in the first quarter of 2018 to P6.52 billion, supported by 17% revenue growth to P36.98 billion.
This year, the company is spending P111 billion in capital expenditures to help achieve its 2020 goal of having P40 billion in net income. For the first quarter alone, it has already rolled out P26.7 billion for residential developments, commercial leasing projects, estate development, and equity investments.
Shares in ALI climbed 3.05% or P1.25 to close at P42.25 each at the Philippine Stock Exchange on Tuesday. — Arra B. Francia

Ready for another spin?

DO YOU often feel that Philippine politics is simply taking you for a ride? A series of paintings by a political cartoonist is set up like a carousel to show that we’ve been going around in circles, on the same darn ride, for the past 50 years or so.
The paintings were executed as part of Jose Santos P. Ardivilla’s MFA degree exhibition, titled Kahayupan. It consists of seven paintings formed in a circle, each depicting a political cartoon measuring six feet by six feet. Each giant cartoon is a summary of the administrations of the seven most recent presidents of the Philippines: Ferdinand Marcos, Corazon Cojuangco Aquino, Fidel Ramos, Joseph Estrada, Gloria Macapagal-Arroyo, Benigno Aquino III, and Rodrigo Duterte.
During the exhibit’s opening on May 2 in UP’s Bulwagan ng Dangal, Mr. Ardivilla discussed his work. Commenting on their size, he says that he wants the works to serve as an immersive experience: “I wanted it elevated, bigger than us, because I have this notion: what if you can step inside a political cartoon?”
Adding to the experience is a recording in the background, played as if it were a safety reminder in a theme park, inviting guests to come to “Impunity Land.”
As for the arrangement of the paintings in a circle, designed to be viewed counterclockwise beginning with the political cartoon depicting the Duterte administration and ending with the Marcos years, Mr. Ardivilla said: “There’s something counterintuitive about it… something regressive.”
“My point here is that nothing really change[s], except for the people in power.”
Each painting displays a common theme, that of a horse on a carousel. A spoke pokes through the horse, and is built on a base of people in restraints and certain agony. This certainly isn’t Disney. The background, meanwhile, displays the color of flesh, with blushes of purple — the effect is supposed to call to mind aging newspaper, or else bruised flesh, according to the artist. The presidents, as objects of our derision, are actually quite tiny figures in the grand scheme of things, while the issues that plagued their administrations are spread like webs, rashes, filth, or traces of decay on the horses. “My point is, all of us are part of this system in which we produce a Marcos, a Cory…,” he said, then lists off the presidents who came after them. “Not just through elections, but because of systemic abuse, organizational chaos… we just keep on repeating the same thing.”
“I don’t subscribe to the school that powerful people make history.”
The exhibit was titled Kahayupan, according to Mr. Ardivilla, due to the use of animal imagery in political cartoons. For example, he cites the use of the word and image of the buwaya (crocodile) to describe corrupt politicians in the Philippines, or else the use of the Democratic Donkey or the Republican Elephant. As well, there’s also the use of animal imagery to ascribe a certain trait of an animal to a person: for example, ascribing serpents to the treacherous, or the lamb to the innocent. As well, Mr. Ardivilla runs to the Filipino word, “kahayupan,” which we sometimes use to describe indescribable brutality. “It’s like we’re reduced to animals because of how people are like animals, in terms of political greed, etc.”
More than cynicism, which implies some acceptance of the situation of going around in circles, what one may see in Mr. Ardivilla’s work is raw anger. Mr. Ardivilla, who also teaches at the College of Fine Arts in UP Diliman, has been a political cartoonist since 1999, which means he has been on this ride before, and over and over, too. Mr. Ardivilla says he is “Angry, as opposed to just apathetic. I always tell my students that love and hatred are not opposites, really. They’re just the same emotions going in different directions. What is opposite of these feelings… is apathy. If you’re apathetic, that means you will let these things happen.”
On another note, the paintings also add to the question of political cartooning as a serious art form. In A Gentleman in Moscow, a novel by Amor Towles, Mishka, a Communist, a writer, and the titular gentleman’s friend, says: “Every country has its grand canvas… the so-called masterpiece that hangs in a hallowed hall and sums up the national identity for generations to come.” To this, he cites Delacroix’s Liberty Leading the People, and for the Americans, it’s supposedly Washington Crossing the Delaware. This might be true, but these images are reverent of their subject of the state. On the other side of the spectrum, we have the cartoons from Charlie Hebdo and the satirical stylings of The Simpsons, both of which poke fun at figures in power, their irreverence empowering the common man, as well as making sure that their images are seared in the minds of the collective consciousness. In the race of which gets the word out more, and which messages stay, which one wins?
“If you ask the art market, there is a huge disparity between the cartoonist and the artist. The fact that I always insist on being called a cartoonist is my way of defying the art market. The art market would like it [to be an] elevated discourse. They still rely on this very ancient… notion of high art versus low art,” said Mr. Ardivilla. “What I like about cartoons, they’re very transgressive, in terms of message and format. It’s not ‘high art’: oil paintings and gorgeous paintings. These (cartoons) are implements of mockery.
“This allows you to make fun of people who deserve to be made fun of.”
Kahayupan is on show in UP Diliman’s Bulwagan ng Dangal until June 28. — Joseph L. Garcia

S&P ups PHL banks’ risk assessment

S&P GLOBAL Ratings has upgraded its risk assessment on the Philippine banking industry, supported by the sector’s improved credit fundamentals.
The credit rater said it upgraded its Banking Industry Country Risk Assessment (BICRA) score for the domestic banking industry to “6” from the previous “7.”
“We revised our Banking Industry Country Risk Assessment (BICRA) on the Philippines to group ‘6’ from group ‘7’ due to the sector’s improved credit fundamentals,” S&P said in a May 14 report.
S&P uses its BICRA framework to evaluate and compare global banking systems. Scoring is done on a 1-to-10 scale, with 1 being the best score or those with the lowest risks.
The debt watcher said credit risk in the Philippines has lessened on the back of “the establishment of credit bureaus and the banks’ improving underwriting practices in the consumer loans segment.”
It cited the state-led Credit Information Corp. (CIC), a centralized public credit registry, which is mandated to collect credit-related data from financial institutions and other potential sources of credit information.
“Better data availability of credit history is positive for this segment where credit quality has historically been constrained by lack of information,” the debt watcher said, adding that clarity on creditworthiness should also foster risk-based pricing.
The report noted that CIC will strengthen the underwriting standards in the consumer lending segment, leading to better transparency which will lower banks’ consumer nonperforming loans (NPLs).
S&P said local banks have been expanding their consumer loan portfolios for higher margins even as the retail segment is likely to have higher delinquencies. However, banks’ NPLs have been declining, standing at 3.9% as of end-2017 versus 2013’s 5.3%.
“The narrowing of the gap with total NPLs points to banks’ gradually refining their risk management practices in this segment and making better lending decisions,” S&P added.
It also noted consumer lending still forms a small portion of the domestic banks’ loan portfolios, cornering 17.6% of the total, although growing from 2013’s 16% share.
On the corporate lending side — which S&P said constitutes about 80% of banks’ total loans — strong economic growth, low interest rates as well as adequate liquidity will continue to support the debt-servicing capacity of corporate borrowers.
It added that the credit losses of the banking industry from the corporate sector will likely remain subdued.
“Diminished risks from the consumer segment along with sustained credit performance of the corporate segment should support the favorable asset quality trends at Philippine banks,” S&P added, noting that this underpins its stable trend on the economic risk.
Last month, S&P revised the country’s ratings outlook to “positive” from “stable” as it expects improved fiscal policies to support more sustainable public finances and balanced growth.
The Philippines currently holds a “BBB” rating from S&P, a notch above the minimum investment grade.
BANK RATINGS
S&P also hiked its ratings for Security Bank Corp., while affirming that for the Development Bank of the Philippines (DBP) following its upgrade of the Philippine banking industry’s credit risk assessment.
In a statement sent to reporters late Monday, the global debt watcher upgraded Security Bank to investment grade, raising the lender’s long-term issuer credit rating to “BBB-” from “BB+,” with a “stable” outlook. Its short-term credit rating was also hiked to “A-3” from “B.”
Meanwhile, S&P affirmed DBP’s long-term credit rating at “BBB,” a notch above the minimum investment grade, and its short-term credit rating at “A-2.” It also maintained its “positive” outlook on the state-owned bank’s ratings.
In a May 14 report, S&P said it upgraded Security Bank’s long- and short-term credit ratings as reduced credit risk in the Philippine banking industry will strengthen the lender’s capital position and provide a solid buffer against potential losses.
“We expect Security Bank’s risk-adjusted capital ratio (RAC) to remain strong at 11-12% over the next two years,” S&P said, adding that although the lender’s RAC declined from 13.5% as of end-2017 due to the bank’s “above average credit growth.”
Security Bank is also expected to gradually upsize its market share over the next two years, with asset quality seen to come closer to the industry average as its loan book seasons.
“The stable outlook on Security Bank reflects our view that the bank will maintain its strong capital buffers and good asset quality over the next two years,” S&P added.
Central bank data show Security Bank was the sixth largest bank in the country in asset terms as of end-December 2017 with P755.77 billion.
Meanwhile, S&P said it believes the improvement of credit fundamentals in the Philippine banking industry will have a positive effect on the creditworthiness of DBP, revising its assessment on the state-run bank’s standalone credit profile to “bb” from “bb-.”
S&P said its credit ratings on DBP are in line with the sovereign’s as the government is likely to “provide timely and sufficient extraordinary support to the bank if needed.”
DBP’s capital position is seen to remain adequate over the next two years, with the credit rater forecasting a RAC ratio of 7-8%.
“We anticipate that DBP will maintain its market position over the next two years,” S&P said.
However, it added that the lender’s funding profile is constrained due to its policy role and smaller-than-average branch network.
Meanwhile, S&P’s “positive” outlook on DBP’s rating reflects mirrors that on the sovereign.
“We expect DBP to remain an important instrument for the government in its medium-term development strategy,” S&P said, adding that the lender is seen to sustain its public policy role over the next two years.
DBP was the eighth largest Philippine bank in asset terms at end-2017 with P597.05 billion. — Karl Angelo N. Vidal

CPG eyes P13B from Batulao Artscapes Phase 2

CENTURY Properties Group, Inc. (CPG) expects to generate around P13 billion from sales of the second phase of its Batulao Artscapes project in Nasugbu, Batangas.
In a statement, Tim Hallett, president of Century Properties Leisure and Hospitality, Inc., said there is strong demand for the project, which it described as the world’s first “livable art park.” Pre-selling for Phase 2 of Batulao Artscapes will begin in the next few weeks.
“We are very excited to offer approximately 1,700 residential units, as part of the next phase of pre-sale for Batulao Artscapes. This inventory represents the biggest bulk of the project and we expect the sales to be brisk due to the overwhelming demand for the project,” Mr. Hallett said.
Batulao Artscapes was launched in December 2017, and will feature houses designed by local and international architects and built by Revolution Precrafted. Located within a 142-hectare property, it has four villages named, Cluster, Commune, Collection and Curated.
The first three villages are designed by Filipino architects and designers — architect Eduardo Calma’s Polygonal Successions for Cluster Village; Budji Layug and Royal Pineda’s Tranche and Facet Homes for Collection Village; and designer Kenneth Cobonpue’s Hedera Homes for Commune Village.
For Curated Village, there are 12 one-of-a-kind homes by international designers and architects such as David Salle and AA Studio for the “Billboard Home,” Marcel Wanders for “Eden,” Studio Libeskind Design for “Adaptation II,” and Daphne Guinness for the “Daphne Skin Home.”
Batulao Artscapes is targeting retirees and families searching for designer homes outside Metro Manila.
The company said it has pre-sold 74%, with a sales value of P1.2 billion, of the first 306 homes from the various collections that it offered to the market.
Also being developed are a 500-room art-inspired condominium inside the 2.5-hectare Batulao Artscapes Art Park, as well as 30 resort villas.
“We are making sure that the Batulao Art Park will reflect the original vision of creating an artventure community built on the foundation of good design, art and architecture,” Mr. Hallett said.
Batulao Artscapes is expected to be completed in 2021.
CPG’s profit fall by 10.59% to P649.9 million last year, lower than the P726.9 million it delivered in 2016.

Lost and found: an exhibit

THERE IS a Sarah Geronimo in all of us.
For those outside of the pop culture loop, know that the singer broke down in the middle of her most recent performance, crying: “Why do I feel empty?”
Photographer-artist Ritz Marie asked the same question. It was during a dark episode in her life when she was lost that she found art, and the result is an exhibition called Lucid Dreams, which is on view at Pineapple Lab Gallery in Poblacion, Makati City until May 19.
Aside from the show of more than 30 manipulated photographs, she has a self-published journal titled The Journal of Lucid Dreams, which is an extension of the exhibition.
“Both are about the experiences that everyone goes through. It was more of a dark place I was in before. I have like ‘letters to the wounded ones’ or ‘dear darkness’ and ‘shadow play.’ I am writing the letters to the abstracts that I couldn’t understand before. It is so personal, yet universal concepts and feelings. Sometimes I think, this is too personal, who would want to read it? Pero parang okay talaga (but it seems OK really), I want to share it,” she said of her works.
Her journal-turned-book and her exhibit feature headshots of models and friends that Ms. Ritz has worked with during her stints in New York and in Toronto when she studied at York University.
The works on sale (P13,000 each) are manipulations of her photographs, which are “virtually framed” with oil on canvas paintings from her friends. The titles of her works have prose pieces that go with them. Her favorite, The Hero Piece, shows a picture of a man, a friend, and has a caption that says: “To all the boyfriends I never had: You may have not given me the love I wanted, but you loved me the way I needed. I am grateful for you being a vessel — that poured inspiration over my life. Through the divines of you, I truly felt what love should be.”
“It’s one big exhibition of hugot,” she said, smiling, using the popular piece of slang meaning excessive feeling.
“I am sharing the times in my life that were not so sparkly, like quarter life crisis and depression. You don’t know what to do with your life. I just had to let everything out. There were times I was feeling low, and writing was my therapy. When you’re depressed, you don’t want to shoot photos, you only wanted to be alone — and writing was an exercise in solitude. I learned how to enjoy my time with myself,” she added.
Ms. Ritz does commercial, fashion, and advertising work, and discovered her love for photography in the 2000s.
When asked her thoughts that photography and photo manipulation as a technique are not “art,” she shrugged and said: “I think sometimes people can overdo it (manipulation), and I do not know where the line is drawn, but I think photo manipulation is a vehicle for expression. If it is beneficial to furthering the meaning of art, use it, but if you just want to show that you have skills in manipulation — a lot of people can do it anyways — I think you have to draw the line.”
In a much better personal place now, she said: “I am slowly realizing who I am. It did not come easy. I am in a great place now, and I hope to sustain that.” Art was, is, and will always be one of her therapies. — Nickky Faustine P. de Guzman