METROPOLITAN Bank & Trust Co. (Metrobank) has raised P10 billion in fresh funds via fixed-rate bonds — the first ever bond issuance by a local lender since the regulator liberalized rules on banks’ fundraising activities.
In a disclosure on Friday, Metrobank said the bond issuance, which is part of its P100-billion bond and commercial paper program announced last month, carry an interest rate of 7.15% and a two-year tenor. The lender listed the papers on the Philippine Dealing & Exchange Corp. last Friday.
The bank’s issuance marks the first ever by a local lender under Bangko Sentral ng Pilipinas’ Circulars 975 and 1010 which allow banks to tap the capital market as a funding source without having to secure approval from the regulator. It is also the first bank bond priced under the new benchmark, the PHP Bloomberg Valuation Service Reference Rates, which replaced the Philippine Dealing System Treasury Reference Rates.
Metrobank said the offering was almost 10 times oversubscribed on the back of robust demand during the book building process. The lender upsized the issue to P10 billion from its initial target issue size of P2 billion after orders reached as much as P19.635 billion.
Standard Chartered Bank acted as the transaction’s sole arranger, selling agent and market maker. Metrobank and First Metro Investment Corp. were also selling agents, while UnionBank of the Philippines was another market maker.
“We are proud to once again be a trailblazer in the local bond market. Our hope is that this issuance paves the way for a robust market for bank-issued bonds in the near future. We are grateful to the BSP and the SEC (Securities and Exchange Commission) for allowing this opportunity to diversify our sources of liquidity to fund our growth prospects…,” Metrobank President Fabian S. Dee was quoted as saying in the statement.
“This is a major development in deepening the local capital markets space as we expect other banks to follow suit. This maiden issuance allows Metrobank to establish its own credit curve and will serve as a benchmark not only for its future issuances but also for other bank issuers,” Standard Chartered Bank Philippines CEO Lynette V. Ortiz said.
Last month, Metrobank likewise raised some P8.68 billion from the first tranche of its P25-billion long-term negotiable certificates of deposit program. The notes will mature in 5.5 years to be paid quarterly and carry a 5.375% rate.
Metrobank posted a P5.3-billion income in the second quarter, up 31% from the P3.9 billion tallied the previous year on the back of its robust core business.
Shares in Metrobank went down 50 centavos or 0.76% to close at P65.05 each on Friday.
RIZAL Commercial Banking Corp. (RCBC) and East West Banking Corp. (EastWest Bank) saw their net incomes decline in the first nine months due to lower trading gains and revenues, respectively.
In a disclosure on Friday, RCBC said it posted a consolidated net income of P3.2 billion in the nine months ended September, down from its P3.4-billion profit in the same period last year, amid a decline in trading gains.
The bank said excluding trading gains, its core income went up 42% year-on-year as its main businesses continued to grow.
RCBC’s net interest income went up 12% to P14.7 billion as of September driven by a 12% growth in its loans to P379 billion. Average loan volume of its corporate segment grew 9%, while the SME segment expanded 32% and consumer by 33%, with credit card receivables growing 33%. RCBC’s microfinance arm Rizal MicroBank also grew its average loan portfolio by 20% year-on-year.
Still, despite the growth in its lending business, asset quality remained healthy, with its consolidated nonperforming loan (NPL) ratio at 1.22% from 1.41% last year. NPL coverage also improved to 96.94% at the consolidated level from last year’s 77.39%, while the level was at 141.84% at the parent bank level.
Meanwhile, RCBC’s gross income stood at P19.4 billion in the first nine months, with total operating income at P4.7 billion. Fee-based income grew 15%.
On the other hand, the bank’s operating expenses amounted to P14.4 billion in the period amid its continued branch expansion and higher documentary stamp taxes.
RCBC’s network grew to 509 branches as of September from 503 a year prior, while its automated teller machines were at 1,593 versus 1,539 the previous year.
The bank’s consolidated resources grew 17% to P614.4 billion. Deposits increased 10% to P410.1 billion, with its current accounts and savings accounts at P231.8 billion as of September.
Its capital position stood at P83.6 billion, with its capital adequacy ratio (CAR) at 17.28% and common equity Tier 1 (CET1) ratio at 14.45%.
Shares in RCBC went up 20 centavos or 0.72% to P28 each on Friday. EASTWEST BANK
Meanwhile, the Gotianun-led EastWest Bank said in a separate disclosure on Friday that it booked a net income of P3.2 billion in the first nine months, 13% lower year-on-year mainly due to an increase in capital stock as well as the lower income contribution from its wholly-owned subsidiary EastWest Rural Bank (EWRB).
EWRB only resumed its lending program to public school teachers in late June after being suspended since November 2018.
EastWest Bank said its core recurring operating revenues increased by 8% year-on-year.
Its nine-month net income translated to a return on equity of 10.7% and return on assets of 1.4%.
The lender’s net interest income grew 6% to P14.5 billion as of September on the back of the expansion of its consumer lending businesses. Excluding teachers’ loans which declined, EastWest Bank’s consumer portfolio of credit cards, auto, home and personal loans went up 14%. Consumer loans accounted for 72% of its total loans. Meanwhile, its commercial lending business grew 6%.
“The increase in consumer loans allowed the bank to minimize the impact of lower margins as deposit interest rates rose faster and higher than loan rates,” EastWest Bank said.
Fees and commissions declined 16% to P3.4 billion due to the lower contribution from its rural bank subsidiary. On the other hand, trading income went up 33% to P444.8 million, driven by foreign exchange trading gains.
Meanwhile, the bank’s operating expenses went up 13% to P11.1 billion at end-September.
EastWest Bank’s total assets stood at P337.2 billion as of September, up 7% from the previous year.
Its CAR stood at 13.1%, while its CET1 ratio was at 10.6%, still above the regulatory minimums.
EastWest Bank shares finished at P10.56 apiece on Friday, down 10 centavos or 0.94%.
THE BANGKO SENTRAL ng Pilipinas (BSP) has shut down a bank based in Quezon City, bringing the number of closed lenders to 12 this year.
The BSP’s Monetary Board ordered the closure of the San Francisco Del Monte Rural Bank on Thursday. The Philippine Deposit Insurance Corp. (PDIC) took over the bank a day later and liquidate its assets.
San Francisco Del Monte Rural Bank runs one branch in Barangay Damayan in the city.
The central bank has the authority to shut down banks which are found not viable to remain in business. The PDIC’s takeover paves the way for the state-run insurer to acquire the bank’s assets and pay liabilities to depositors.
Bank deposits are insured up to P500,000 per depositor, according to the PDIC charter. Any lender which have been placed under liquidation cannot be reopened or revive its banking operations.
Funds used to settle valid deposit insurance claims are drawn from the Deposit Insurance Fund managed by the PDIC, as well as from remaining cash and assets held by the fallen lender.
With the PDIC takeover, bank directors, officers and shareholders cannot do transactions or meddle with records on the lender’s behalf.
The shutdown of the Quezon City-based bank brings the total of shuttered lenders to 12 this year, already well above the seven which the BSP ordered closed in 2017.
Other lenders which have been shuttered by the BSP this year include the Rural Bank of Maigo, Inc. in Lanao del Norte; the Rural Bank of Luna, Inc. in Apayao; Rural Bank of Pagbilao, Inc. in Quezon; the Rural Bank of Sta. Elena, Inc. in Camarines Norte.
The Tiaong Rural Bank, Inc., Empire Rural Bank, and Women’s Rural Bank, Inc. in Batangas; Bangko Buena Consolidated, Inc. of Iloilo; the Rural Bank of Initao, Inc. in Misamis Oriental; and the Rural Bank of Loreto, Inc. in Dinagat Islands have also been ordered to stop operations earlier this year.
BSP Governor Nestor A. Espenilla, Jr. previously said that they are actively weeding out “weak” banks in the interest of consumer protection and financial stability. — Melissa Luz T. Lopez
By Melissa Luz T. Lopez, Senior Reporter
THE PESO ended its five-day uptrend on Friday to log its weakest showing in three days, just as bets of another rate hike in the United States next month became more certain.
The local unit closed the week at P52.96 versus the dollar, 39 centavos weaker than Thursday’s P52.57 rate which was a five-month low, to wipe out the sharp drop posted that day.
This is the currency’s weakest performance since the P53.025-per-dollar rate on Tuesday.
The peso lost its strength during the entire session as it opened at P52.87 against the greenback. Its best showing was at P52.83, while it hit an intraday low of P52.97 before settling at the closing rate.
Sought for comment, two traders attributed the peso’s slump to a stronger dollar, which gained strength from the outcome of the policy meeting of the US Federal Reserve.
“The peso briefly weakened which can be attributed to bargain-hunting for the greenback following the upbeat US initial jobless claims data and muted Fed remarks increased bets of a December Fed rate hike,” one trader said.
The Fed affirmed that the US economy remains on solid footing, reaffirming its hawkish monetary policy stance and setting the stage for another rate hike.
The peso also tracked the downward move of other currencies in the region against the greenback, according to Reuters.
A second trader affirmed that the peso depreciated due to broad dollar strength overnight, as market players were assured that the Fed will proceed with another hike worth 25 basis points during their December meeting.
The trader added that the peso traded within range for the rest of the session, without large inflows seen the previous days to help boost the currency.
Dollars traded on Friday amounted to $897.5 million, down from the $1.353 billion which exchanged hands the previous session. A trader attributed the higher-than-usual volumes the past few days to equity inflows for a follow-on offering by a listed conglomerate.
By Arra B. Francia, Reporter
SHARES SLUMPED on Friday as investors continued to sell their holdings after the slower third-quarter gross domestic product (GDP) growth data released on Thursday.
The 30-member Philippine Stock Exchange index lost 0.95% or 66.89 points to close at 6,968.82 on Friday. The broader all shares index also gave up 0.46% or 19.99 points to 4,269.88.
“Negative sentiment from EPHE (iShares MSCI Philippines ETF) dropping 2.6% last night following the disappointing 3Q18 GDP figure may have affected today’s movement. Net foreign selling also remains to be a significant factor with today’s value of P598 million,” P2P Trade Online Sales Associate Gabriel Jose F. Perezo said in an e-mail on Friday.
The EPHEs track the investment results of a broad-based index consisting of local stocks.
Listed telco players continued to take a hit from the third player race, with incumbents Globe Telecom, Inc. and PLDT, Inc. listed as two of the day’s biggest losers. The former dropped 5.21% to P1,728 each, while the latter tumbled 4.98% to P1,220 apiece.
In contrast, ISM Communications Corp. — which could be businessman Dennis A. Uy’s vehicle for the third telco player — was the most actively traded, gaining 7.94% to P6.80.
Regina Capital Development Corp. Managing Director Luis A. Limlingan meanwhile attributed the decline to the US Federal Reserve’s hint at another rate hike despite keeping borrowing costs steady at its recent meeting.
“Philippine shares slid after the FOMC (Federal Open Market Committee) meeting gave a signal to investors of another rate hike,” Mr. Limlingan said in a mobile message, further attributing the drop to some rebalancing after companies released their nine-month earnings results.
Wall Street’s major indices ended mostly lower overnight, with the S&P 500 index dropping 0.25% or 7.06 points to 2,806.83 while the Nasdaq Composite index shed 0.53% or 39.87 points to 7,530.89. The Dow Jones Industrial Average managed to eke out gains, adding 0.04% or 10.92 points to 26,191.22.
Back home, all sectoral indices moved to negative territory, led by services which fell 2.03% or 28.8 points to 1,383.58. Financials followed with a 1.21% or 19.34-point decrease to 1,572.53, while industrials slipped 1.03% or 110.68 points to 10,577.25. Property shed 0.79% or 27.3 points to 3,390.46. Mining and oil dipped 0.28% or 25.82 points to 9,120.22.
Some 1.17 billion issues switched hands, resulting in a turnover of P5.96 billion, down from Thursday’s P8.39 billion.
Advancers outpaced decliners, 105 to 84, while 53 issues ended flat.
Foreign outflows persisted but dropped to P598.19 million on Friday from the previous session’s P668.31 million.
“With the index continuing to remain weak and with the ever-present net foreign selling, we place our initial support level to the PSEi’s recent low of 6,790,” P2P Trade’s Mr. Perez said.
By Michael Angelo S. Murillo, Senior Reporter
SINGAPORE — What has been a banner year for Benguet-based Team Lakay was further souped-up on Thursday night when it was among the big winners at the 2018 Global Martial Arts Awards here, including for Gym of the Year.
An event dedicated to recognizing contributors to the tremendous exponential growth of mixed martial arts, and martial arts in general, the Martial Arts Awards was held at the JW Marriott in Singapore where a summit also happened that gathered various stakeholders of the discipline.
Team Lakay was recognized for climbing significant heights in 2018 that saw it produce three world champions, namely flyweight Geje “Gravity” Eustaquio, strawweight Joshua “The Passion” Pacio, and interim bantamweight champ Kevin “The Silencer” Belingon, who was to attempt to be the undisputed world champion in his division later Friday against reigning champion Bibiano “The Flash” Fernandes of Brazil in “ONE: Heart of the Lion.”
The thriving Filipino gym beat out American Kickboxing Academy, American Top Team, Evolve MMA, Tiger Muay Thai, Tribe Tokyo MMA, and TriStar Gym for the award.
Members of Team Lakay were also feted with Mr. Pacio winning Submission of the Year for his impressive victory in the first round over Pongsiri Mitsatit in Manila in July.
Coach of the Year went to Team Lakay head Mark Sangiao while Martial Arts Hero of the Year was veteran fighter Eduard “Landslide” Folayang.
In an interview with BusinessWorld after the award ceremonies, Mr. Sangiao said they never expected to win gym of the year but nonetheless something they accept with much honor.
“We’re happy to have won four awards tonight. We share these with our fans and sponsors who have supported us from the start up to now,” said Mr. Sangiao.
“The Year 2018 has been a good one for us. I cannot really describe how I feel. We’re just happy. We’re going to do our best to live up to such high standard, showing the skills of our athletes and hopefully we can continue to succeed next year,” he added.
For Mr. Folayang, the former ONE lightweight champion who is out to reclaim his title, the hero of the year honor only serves to inspire him to work harder not only inside the cage but outside of it as well, inspiring people to be the best that they can be.
“I’m happy to accept this award. I would like to thank my family and my team for being with me throughout. This award only represents the start and beginning of a never-ending journey of discipline, hard work, perseverance, and pushing for an even higher standard,” said Mr. Folayang in his short message after receiving the prestigious award.
Other nominees for hero of the year were Angela Lee, Aung La N Sang and Martin Nguyen of ONE Championship, Daniel Cormier and Henry Cejudo of the Ultimate Fighting Championship, and Tenshin Nakusawa of Rizin.
Mr. Folayang returns to action on Nov. 29 in Manila against Singaporean Amir Khan for the vacant ONE lightweight title.
Other winners at the 2018 Global Martial Arts Awards were Stamp Fairtex (Breakthrough athlete), Olivier Coste (Referee of the Year), Andy Nguyen (Walkout of the Year), ONE: Kingdom of Heroes (Event of the Year), Lee Ji Na of ONE (Ring Girl of the Year), Manabu Takashima of MMA Planet (Martial Arts Journalist of the Year), Mr. La N Sang (Male Athlete of the Year), Ms. Lee (Female Athlete of the Year), Nong-O Gaiyanghadao (Muay Thai Athlete of the Year), Tenshin Nasukawa (Kickboxing Athlete of the Year), Mr. La N Sang versus Ken Hasegawa (Bout of the Year), and Brian Ortega (Knockout of the Year).
By Elijah Joseph C. Tubayan Reporter
THE PHILIPPINE ECONOMY grew at its slowest pace in three years last quarter, weighed down by tempered household spending amid high inflation and farm contraction, the Philippine Statistics Authority (PSA) said on Thursday.
Gross domestic product (GDP) — the total amount of final goods and services produced within the country’s borders — grew by 6.1% year-on-year in the July-September period, slower than the revised 6.2% the preceding three months and the 7.2% growth recorded in July-September 2017, according to data released by the PSA yesterday.
Third-quarter growth also compared to the 6.3% median estimate in BusinessWorld’s poll of 15 analysts last week and was the slowest pace since the second quarter of 2015 when it clocked six percent.
GDP growth averaged 6.3% in the first three quarters, compared to 6.8% in the same period in 2017, and is below the government’s downward-adjusted 6.5-6.9% target range for 2018.
Socioeconomic Planning Secretary Ernesto M. Pernia said in a briefing that the economy needs to grow by at least seven percent this quarter to hit the floor of this year’s goal.
Increase in gross national income — the sum of the GDP and net income from abroad — picked up to six percent last quarter from April-June’s 5.9% but was still slower than the year-ago 7.3%.
Mr. Pernia said that third-quarter growth was “respectable,” just below Vietnam’s seven percent and China’s 6.5% but still faster than Indonesia’s 5.2% for the same three months.
Moreover, the Philippines’ sustaining at least six percent growth for the past 14 quarters “suggests that we are now on a higher growth trajectory,” he added.
Saying economic managers were “not exactly exuberant about the 6.1% growth rate,” Mr. Pernia said: “We are concerned about third-quarter growth numbers — not because it fell below expectations… at 6.3%… not because it makes the… growth target for the year much more challenging… Rather, we are concerned because the reason for the slowdown — among others — is the slowdown in household consumption, particularly the marked slowdown in the household spending on food and other basic products.”
Growth of household final consumption expenditure clocked 5.2% last quarter compared to 5.4% a year ago and the second quarter’s 5.9%. Mr. Pernia said he expects household demand “to return to high gear this fourth quarter due to the holiday season”.
The third quarter’s GDP growth slowdown came at a time of elevated inflation, which averaged 6.6% in the same three months after September and October’s nine-year-high 6.7% pace.
The government has scrambled to temper price increases especially of food through non-tariff measures designed to clear supply bottlenecks.
It is also pushing a shift from a decades-old import quota scheme for rice to one that opens importation to all qualified private groups in order to slash retail prices by about P7 per kilogram and inflation rate by 0.7 percentage points.
Fueling growth on the demand side was government spending, whose growth accelerated to 14.3% in the third quarter from 8.3% the past year and 11.9% in the second quarter.
Capital formation surged 16.7% in the three months ended September from 10.3% in the same period last year, but slumped from 21.5% in the April-June period.
Increase in exports of goods and services slowed to 14.3% from 18.8% a year ago, but was faster than 12.6% the previous quarter.
Imports on the other hand expanded by 18.9%, slightly slower than the 17.2% last year, but a tad faster than 18.5% in April-June.
Among sectors, services continued to be the main driver of the economy, expanding by 6.9% in the third quarter, slower than 7.3% a year ago though up slightly from the second quarter’s 6.8% in the second quarter.
Industry, however, slowed down to 6.2% from 8.1% last year and 6.5% in the second quarter, as Mr. Pernia said that it faced higher input costs. Manufacturing remained the top contributor to industry expansion in the third quarter, but continued its growth slowdown to four percent from 10.1% in July-September 2017 and 5.5% in the second quarter. Construction accelerated to 16.1% from four percent the past year and 14.1% in the second quarter. Mining and quarrying fell by 1.1%, compared to 7.9% growth last year though still better than the second quarter’s 6.9% drop.
Agriculture, hunting, forestry and fishing dropped 0.4% compared to 2.6% growth in the third quarter last year and 0.3% in the second quarter.
Finance Secretary Carlos G. Dominguez III said in a statement that the economy is “expected to regain its stride as the government has sustained its accelerated investments in infrastructure and social services on the back of a strong fiscal position… the growth momentum would be on an upward trajectory from hereon as the government rolls out more big-ticket infrastructure projects under the ‘Build, Build, Build’ initiative in the months ahead, implements more measures to make inflation taper off closer to the government-set target in 2019, and pursues more policy reforms to make the domestic economy more conducive to investments.”
Private sector economists said in separate commentaries yesterday said that the third quarter GDP growth has set the tone for a softer policy stance from the central bank when it conducts its last two policy reviews on Nov. 15 and Dec. 13.
ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa said that the GDP growth data provide “ammunition for the doves to call for a pause at next week’s 15 November monetary meeting” and noted that the 150 basis point interest rate increase since May will likely weigh on consumption and investment in the quarters ahead.
“Holding off on an additional rate hike — as marginal as it may be — would give the Philippine economy the breathing room it needs to catch its breath and resume its above six percent growth trajectory in 4Q with the mid-term election in sights,” he explained.
Ruben Carlo O. Asuncion, chief economist at Union Bank of the Philippines, said that “the BSP is done with tweaks this 2018,” noting that the impact of monetary tightening can linger for a whole year from the time of tweaks.
Economists from ANZ Research, on the other hand, believe there remains some space for raising interest rates further, saying: “Even as we think that inflation has peaked, the descent is likely to be gradual.”
“This requires further policy response, in our view. As such, we expect a final rate hike of 25 basis points to 4.75% at the central bank’s December meeting.”
Despite the rate hikes, economists still see robust growth this quarter, even as high inflation and tighter monetary conditions will continue to weigh on economic activity.
“The impact of BSP rate hikes will continue to act as a drag on household consumption in coming quarters, with Q4 GDP growth likely to moderate to a pace of around six percent,” said Rajiv Biswas, chief economist for Asia Pacific at IHS Markit.
“However the Philippines’ economy is still forecast to grow at a robust pace of around 6.2% in 2019, underpinned strong construction sector growth, which will be boosted by the ramping up of infrastructure spending under the government’s ‘Build, Build, Build’ program.”
Noting that “growth in consumer spending softened in the past three quarters due to rising inflation and tightening monetary conditions.”, Land Bank of the Philippines market economist Guian Angelo S. Dumalagan said: “With inflation expected to weaken towards the end of the year, we might see some acceleration in consumer spending and perhaps an improvement in capital formation this quarter. This might translate to a growth of at least 6.3% in the last three months of the year.”
“Going forward, growth is seen to likely follow the same formula of late with slowing consumption offset by government spending and investments,” Mr. Mapa said, noting a possible “pick-up in government spending ahead of the mid-term elections.”
THE PHILIPPINE ECONOMY grew at its slowest pace in three years last quarter, weighed down by tempered household spending amid high inflation and farm contraction, the Philippine Statistics Authority (PSA) said on Thursday. Read the full story.
By Joseph L. Garcia Reporter
FOR millennia, humans have sought for ways to preserve their dead, perhaps as a way for the bereaved to remember, and for the deceased to be remembered. Since the body also served as a shell for the spirit, it was also believed by many ancient cultures that a well-preserved body, possibly better and purer than it had been in life, guaranteed a person to live beyond death in a comfortable afterlife. An incorrupt body could also be seen as a reflection of the soul: in the Roman Catholic and Eastern Orthodox faiths, the body of an extraordinarily good person that has been revealed to be intact after death just may place one on the path to sainthood — a prerequisite being that this body has not been preserved through embalming, but by some miracle. Examples of these saints would be St. Bernadette and Saint Elizabeth, of the Catholic and Orthodox faiths, respectively.
However, the art, science, and business of embalming, the preservation of the body to arrest decomposition, really took off during the 1800s. The Victorian preoccupation with death was a factor, but so was the practical reason of preserving the bodies of soldiers killed during the American Civil War. Since these bodies may have been killed in combat zones far from home, they had to be returned to their families whole; a small mercy for the loss of life. A zenith for the art of embalming was the corpse of Eva “Evita” Peron, the wife of Argentine dictator Juan Peron. The hugely popular former actress and later political figure died in 1952, and was embalmed by Dr. Pedro Ara over a series of treatments that lasted over a year. Evita, knowing the immortality her image would achieve in death, had her hair dyed blonde and her nails painted red right before she died. Her body was soaked and pumped full of chemicals, and a thin and clear coating was placed over her skin. The result was a marvelous corpse, enviable as a Sleeping Beauty. Her well-preserved body would haunt her husband’s successors, as it served as an enduring symbol of her husband’s regime. After a disappearance of 16 years, it was finally laid to rest in the 1970s in a very secure tomb; to sleep undisturbed and undisturbing through the ages. EMBALMER TO THE STARS
In the Philippines, Arlington Memorial Chapels and Crematory serves as embalmer to the stars: actors Rico Yan and Fernando Poe, Jr. received their treatments in death, and visitors to their wakes noted the beauty of their resting faces and their likeness to life. It has also filled in the role of embalmer to several other celebrities and various political figures. The company was founded in 1985, after the father of Rafael Jose purchased Funeraria Nacional in 1982. Mr. Jose now sits as the company’s president, inheriting it from his father. Businessworld sat down with him and Victoria Pagayon, Embalming Supervisor, a week before All Souls’ Day in their offices in Quezon City.
No school in the Philippines teaches Mortuary Science, which is readily available as a degree course in other countries. All embalmers here receive their training and licensure from the Department of Health (DoH). Arlington, however, takes this a step further by getting trainers from the United States, usually from the companies which supply their embalming fluids. This initiative made Arlington one of the leaders in the business, leading for them to get numerous awards from the Funeral Directors Association of the Philippines (FDAP). Still, the lack of a proper degree for Mortuary Science may hamper the business, as Mr. Jose says, “We’re delayed in the processes that have been learned all over the world.”
Arlington specializes in the soft-embalming method, as opposed to the standard embalming method, using formaldehyde alone. Under the standard method, “What we end up getting is a body that’s as stiff as wood.” The plump and cheerful Mr. Jose knocked on a wooden table for emphasis. “Soft embalming is more natural,” he continued. “You get the natural feel of the remains of the body, It’s like the person is still the way they feel when they were alive.” Mr. Jose did not reveal all the components of the chemicals used in soft embalming, but he did say that lanolin, secreted by animals with soft wool, was an ingredient. STEP BY STEP
Ms. Pagayon then began to take us through the steps of embalming — the final steps a person’s body takes in this world. The funeral home is called by the bereaved, and the body is transported to Arlington. The accompanying members of the family are taken to a room where details such as preferences and the length of the wake are discussed. The length of the wake is vital because it will determine the work of the embalmer. Ms. Pagayon, meanwhile, will wait for a go signal from the family.
“We have to have a next of kin sign it. Meaning, we have already ascertained the cause of death,” said Mr. Jose. “There are hospitals that sometimes say, ‘undetermined cause of death,’ which means the person arrived in the hospital and expired before they can do a full study of what happened.
“When that is the case, we are required to call the medico-legal office,” he added. “We’re required to have the body autopsied — not necessarily [for] a criminal investigation, but to determine the actual cause of death. Sometimes a private physician determines the cause of death.” There are multiple reasons for this: one being, a person who has died of a communicable disease such as SARS may not be embalmed and they will then have to cremate the body immediately. Another reason would be the presence of bullet holes, stab wounds, and other such injuries on the body, which might then prompt a criminal investigation.
Once the family gives its approval, they are then offered the opportunity to watch the embalming process. This isn’t for some morbid or sentimental reason, but for reasons of practicality. For example, a family is asked how they would want their dearly departed hands to rest. “Once we do the embalming process, the muscles harden. That will stay,” said Mr. Jose.
The first step is called in the industry as “setting the features” — a euphemistic term for making up the face of the dead. The family is asked to bring a picture of the deceased when they were healthy so the embalmers could have an image of what they looked like in life. The eyes are closed and fixed into place, and the sunken cheeks and other parts of the face are stuffed with cotton or injected with embalming fluid, to give it the appearance of fullness that might have been robbed by illness and death. The hair is dyed, and the face is made up, with cosmetics imported by Arlington. Sometimes, requests by the family for a certain shade and brand used by the deceased in life would be entertained. Ms. Pagayon says that there’s little difference in making up the face of a dead person from a living one, except perhaps that the dead have skin that has dried. Arlington also uses airbrush techniques instead, because it adheres to a face better. Some discoloration and disfigurement can be fixed by the embalmers: Ms. Pagayon recalled having to reconstruct a damaged nose. Dr. Pedro Ara inspects Eva Peron’s embalmed corpse.
After that, the body is drained of its fluids from all its cavities, including the stomach and the lungs: anything that may decompose inside. It is then injected with preservative fluid, while the drained cavities are filled with the same. The whole process would take about 30 minutes to an hour, depending on the body’s size. However, the full effect of the preservation method will be seen in about three to four hours, after the chemicals have fully penetrated into the body. The body is then washed, bathed, and clothed, and prepared for viewing. The whole process, from when the family first steps into Arlington, would take about four to six hours. THANKS FOR THE MEMORIES
It’s not exactly how you would want to live life: to leave the land of the living for that of the dead. Mr. Jose says that he was once destined for a life in finance, but his father urged him to stay with the company, even for just a year, and he sort of fell into it.
“It’s the times that your friends and the people that you serve come back and say thank you for having guided us,” that make the difference. He recalls people stopping him at malls to thank him for arranging funerals for their families. “That’s what keeps me doing what I’m doing. You know you’re able to help somebody, and they remember you. You might not remember them, but they’ll always remember you.”
For Ms. Pagayon’s part, she has received this compliment after the bereaved see their loved one: “Mas gwapo pa siya kaysa noong nabubuhay siya (He looks better than he did in life).”
“Whatever comforts them; whatever gives them peace and solace during that hard time, is what we’re supposed to be doing here. That’s the mission that was given to us. We become like family to them, guiding them through a hard time when they can’t even think about what to do next,” said Mr. Jose.
Mr. Jose sometimes encounters cases where the family will refuse a viewing, and instead asks for an immediate cremation. While he respects their wishes, he makes a final plea to the family. “We would like you to know that the reason we have wakes is for us to be able to acknowledge that the person has died,” he says. “If I don’t see a person in a casket… physically, before I cremate; chances are, the acceptance of the death is not going to come easily.”
Preserving a body for viewing also brings back a little bit of the person before their final farewell. “What’s going to stay in your mind is the last image of the person,” said Mr. Jose. So if one has died from a long illness or else in a traumatic way, a preserved and beautiful body can help take away that memory, and replace it with one of a person at peaceful rest, giving back a little bit of the life that had been taken away. After all, Mr. Jose says, “Is that the way you want to be remembered? You, sick; you, coughing?”
Mr. Jose was asked if he believes in an afterlife. “Yes, of course.”
“We’re responsible for the people who come through our doors. If there is an afterlife, we want them to look good. We want them to feel good.”
By Denise A. Valdez Reporter
THE IMPENDING ADDITION to the Philippines’ list of major telecommunications service providers notwithstanding, the new entrant faces systemic constraints to full-blown competition, Fitch Ratings said in a Nov. 7 note e-mailed to journalists on Thursday.
The credit rater said the provisional winner of the government auction for the Philippines’ third major telco — Mislatel Consortium, composed of China Telecommunications Corp., Dennis A. Uy’s Udenna Corp. and its subsidiary Chelsea Logistics Holdings Corp. — faces industry barriers that will make the task of challenging incumbents PLDT, Inc. and Globe Telecom, Inc. a tall order.
Fitch said it expects the third telco to “initially… compete aggressively on price as it strives to grab market share in an already highly saturated mobile market” and its challenge “to temper revenue growth and raise the capex pressure on PLDT, Inc. and Globe Telecom, Inc.”
PLDT Chairman Manuel V. Pangilinan said in a briefing on Thursday that the company is likely to maintain capital expenditures at P58-60 billion for 2019, while Ma. Yolanda C. Crisanto, Globe senior vice-president for Corporate Communications, said in a mobile phone message also yesterday that capex will keep close to spending in the last two years. PLDT has kept capex guidance at P58 billion this year, while that of Globe of $950 million.
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.
“The severity of the threat from a new entrant is unclear at this stage,” the debt watcher said, adding that “government intervention may be needed to accelerate industry reforms to raise competition.”
Such intervention includes mandating infrastructure and tower sharing, spectrum redistribution as well as removal or reduction of the 40% foreign ownership cap on public utilities.
“Even after setting aside spectrum frequencies to the new telco, the incumbents still possess a majority of the rights across a range of spectrum frequencies…” Fitch noted, adding that this limitation may push the third major telco to invest more in cost-effective long-term evolution (LTE) technologies to accelerate network rollout.
The debt watcher noted, however, that incumbents PLDT and Globe have already had a headstart even in the LTE space.
Globe said last week it is close to achieving 95% nationwide coverage for its LTE rollout, while PLDT said its LTE base stations not total some 14,300.
Overall, Fitch — which has a “BBB” credit rating for PLDT, or a notch above minimum investment grade, and “BBB-” for Globe, or minimum investment grade, both with “stable” outlook (meaning debt ratings are likely to be sustained over the next 12-18 months) — said it has a negative sector outlook on the Philippine telecommunications market due to intensifying competition and rising debt.
AT first glance, Leyte’s Baybay City does not seem to be a sight-seeing destination. But a closer look reveals that it is emerging as Eastern Visayas’ hub for faith, farm, and eco-tourism — with a bit of a push by the Department of Tourism (DoT).
Declared a component city of Leyte in June 2007, Baybay has been quietly attracting visitors because of the unique convergence of these three tourism sectors. FAITH TOURISM
Baybay is the home to the Diocesan Shrine of San Antonio de Padua, which draws hordes of pilgrims to venerate the century-old image of the saint which is believed to be miraculous.
Located in the coastal barangay of Pomponan, the shrine draws Catholics from around the country who venerate the saint every 13th day of the month, although the devotion actually starts the day before. A traditional religious dance called sirong is performed during the saint’s feast day on June 13, two days before Baybay’s cityhood anniversary.
The church, which receives over 300,000 devotees a year, constantly ranks as the top cultural attraction in Region 8. This number is part of the more than 647,045 day visitors who swing by annually in Baybay, the highest in the region based on data from DoT-8.
Another religious spot in the city is the Our Lady of the Immaculate Conception church, a classic example of a baroque structure whose construction was started in 1852 by Spanish friar Vicente Cronado and continued by Maestro Proceso.
Gutted by fire in 1866 — although the Holy Cross Chapel survived — the rebuilding of the church was completed in 1870. Sculptor and painter Capitan Mateo Espinoso applied the finishing touches to the house of worship.
The church is in the heart of the city’s “heritage lane” — an area full of well-preserved Spanish and American-era ancestral houses, several of which serve as living museums.
The parish celebrates its patron’s feast day on Dec. 27 and the city government started the Binaybayon Festival on that day to showcase the city’s rich cultural heritage. FARM TOURISM
Baybay was showcasing its agriculture potential long before Republic Act 10816 — also known as the Farm Tourism Development Act 2016 — was signed into law.
This is thanks to the Visayas State University (VSU), which has been at the forefront of agricultural education and research and development. Formerly the Visayas State College of Agriculture, this sprawling school has been quietly sowing the seeds of farm tourism for decades with its vast gardens and demo farms.
Sandwiched between the Pangasugan mountain range and the Camotes Sea, this 1,479-hectare university houses the National Abaca Research Center, National Coconut Research Center-Visayas, the Philippine Root Crops Research and Training Center, and regional centers of agencies on agriculture and environment sciences.
The campus is conducive to learning thanks to its back-to-nature atmosphere and greenery which bring out the proverbial green thumb in every student and visitor.
Baybay is also the home of a 13,820-hectare coconut plantation, the biggest in Eastern Visayas, which attracted big agro-industries SC Global Coco Products, Inc. and SC Global Food Products, Inc. the world’s largest producer of organic coconut oil.
The city is also host to Ching Bee Trading Corp., the world’s biggest trader of abaca fiber, and Specialty Pulp Manufacturing, Inc., Asia’s biggest abaca pulp mill. These factories form the core of a specialized industrial tourism circuit for bench-marking of best practices and technologies. ECO-TOURISM
The city has the longest coastline in Leyte, so it is not surprising to learn that its name literally means “beach.” It goes without saying that among its top tourist draws is its coast, bissected by rivers and streams emanating from the Pangasugan mountain range, which has remarkable flora and fauna.
Lintaon Peak, the highest point in the mountain range, offers a commanding view of the Camotes sea and the islands across the channel. As part of 10th cityhood day last year, Baybay opened the 16,000 Blossoms Park, adorned by 16,000 LED lights, which brighten the mountain at night. The park is filled with white and red rose bushes in a grassy meadow whose arrangement forms the phrase “I Love Baybay.” The park will be developed into the Lintaon Ecotourism Zone, which will include an information center, view deck, pavilion, picnic areas, and tourist facilities.
The construction of a large statue of the Immaculate Conception is also being planned to make it a pilgrimage site to supplement the San Antonio de Padua Shrine.
Meanwhile, adventurers can explore the nearby Lintaon Cave, scale Mt. Pangasugan which served as a refuge of Filipino World War 2 guerillas, or dip at the rejuvenating waters of Bakwitan River and Falls.
By Melissa Luz T. Lopez Senior Reporter
BANKS in the country are more than ready to comply with global standards on capital and liquidity buffers due in January, a central bank official said, with latest data showing they are well above the required levels.
Universal and commercial banks have more than enough funds to meet the requirements under the Basel III framework, Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi G. Fonacier said, months before these are imposed on Jan. 1, 2019.
“… [L]ocal lenders can comply with the international standards, not only of the Basel accord, but other standards set forth by international standard setting bodies. The Philippine banking system’s relative position of strength also enables it to fully comply with international standards,” Ms. Fonacier said in a recent e-mailed response to queries.
“Based on our monitoring of the BSP’s roll out of the Basel III reforms, we have noted excess compliance with the minimum standard requirements in general.”
All four standards — the risk-based capital adequacy ratio (CAR), common equity tier (CET) 1 ratio, leverage ratio framework, and liquidity coverage ratio (LCR) — are well above the minimum levels set by Basel III.
“Most of the big banks have undergone a series of capital raising as early as last year and this year,” Edwin R. Bautista, president and chief executive officer of the Union Bank of the Philippines, replied when sought for comment.
Banks in the country have embarked on fund-raising this year to raise fresh capital in anticipation of the implementation of the Basel III requirements as well as to support business growth.
“As of June 2018, most of the top 10 publicly listed banks’ CAR… and CET1 ratio remain well above regulatory minimum. CAR… of listed banks range from 13% to 18%, while CET1 range from 11% to 16%,” Mr. Bautista noted.
“Hence, there is sufficient buffer over the regulatory minimum even if the full HLA (higher loss absorbency) is implemented for those classified as ‘too-big-to-fail’ banks.”
The international Basel III framework is a set of prudential measures designed to improve risk management among banks.
Such measures are meant to help guarantee that banks will not fold in the face of excessive financial stress, drawing lessons from the 2008 Global Financial Crisis.
Latest available data show that big banks maintained a risk-based CAR of 15.87% as of end-June, which is substantially higher than the 10% requirement set by the central bank since 2014.
The CET 1 ratio, which focuses on high-quality capital buffers, stood at 14.2% versus the six percent minimum.
The leverage ratio — which checks “excessive” accumulation of assets by limiting banks’ loan exposure — amounted to 9.59% of banks’ total funds as of June versus the five percent standard that took effect in July.
Banks in the country are also prepared to adopt the LCR, which requires big banks to hold high-quality, readily convertible assets to cover net cash outflows for a 30-day period. Lenders had already set aside buffers equivalent to 164.44% of their projected needs as of June, which is well above the 90% coverage prescribed this year and the 100% set for 2019.
Philippine banks are “generally comparable” with regional and global peers in terms of Basel III compliance, Ms. Fonacier said, noting that compliance in the country has been generally within the middle of the pack versus other banking systems.
“In view of Philippine banks’ focus on domestic market, their competitive advantage lies not only in their ability to comply with the Basel reforms but also in their familiarity with the market and established relationships with their clients,” the central bank official added.
“Exposure to external shocks are manageable.”
