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DBP sees net earnings decline in first half

BW FILE PHOTO

DEVELOPMENT BANK of the Philippines (DBP) saw its net income decline by 14.26% year on year to P3.79 billion in the first half as it booked lower foreign exchange gains and set aside more loan loss provisions.

This was down from the P4.42-billion net profit it booked in the same period last year, its unaudited financial statement showed.

DBP’s net interest income grew by 9.61% to P12.42 billion at end-June from P11.33 billion a year ago.

Broken down, interest earnings went up by 4.8% year on year to P23.84 billion from P22.75 billion, driven mainly by higher income from loans and receivables amid an elevated rate environment.

The bank’s interest expense was steady at P11.42 billion.

Meanwhile, other income fell by 21.59% year on year to P4.14 billion from P5.28 billion as DBP’s foreign exchange gains went down by 17.89% to P2.72 billion at end-June.

On the other hand, other expenses decreased by 12.99% to P7.44 billion from P8.55 billion.

The bank’s impairment provisions rose by 69.47% to P4.71 billion at end-June from P2.78 billion in the same period a year ago.

DBP’s net loans and receivables inched down by 2.6% to P471.38 billion at end-June from P483.97 billion a year prior.

On the funding side, deposits declined by 2% to P744.4 billion from P759.97 billion.

The bank’s total assets inched up by 0.87% to P974.43 billion as of June from P966.07 billion.

Its capital funds stood at P88.54 billion, up by 5.86% from P83.64 billion a year ago. — A.M.C. Sy

Disclaimer

RAWPIXEL.COM-FREEPIK

A DISCLAIMER usually prefaces a presentation or panel discussion sponsored by an organization that doesn’t want to be associated with the opinions that have not been vetted or voted on by the members. A disclaimer prior to the staged event may be issued — The opinions expressed by the panelists are their own and do not reflect those of the presenting organization.

Disclaimers provide a legal shield in case libelous statements are expressed by opinion makers or even spokespersons of an organization.

Those who may have just left positions of power and are now retired from the organization they used to be identified with may be accosted by media in an ambush interview to give a reaction to some developing crisis. It may be tempting for them to think out loud (for the microphones to pick up) what is running through their minds just before boarding a car on the way home. How difficult is it to keep those thoughts private and offer instead a disclaimer? (I am no longer part of that organization and cannot give any opinion on this matter.)

Disclaimers can be a natural refuge, especially for those whose opinions were once sought in a frenzy. It helps to leave the stage of opinion-giving to those still in the public eye.

Polls on the approval ratings of those in positions of power, especially in the political arena, are hedged by explaining the process. This definition of terms provides enough cover for those conducting the survey.

It is explained that the popularity polls are expressed in a net percentage figure, so it is called a net approval rating. The number is based on the responses of a sample, maybe a thousand respondents, theoretically a cross-section to represent the population of over a hundred million. The approval number (We like her children’s books, even if they are not original.) is subtracted from the level of disapproval. (Was it plagiarized?) Anyway, does it really cost P10 million?

It is safe to assume that surveys on popularity are seldom based on any personal encounter with the subject. It is a third-hand evaluation based on conversations with neighbors, taxi drivers, barbers, and media reports, including those of influencers who are themselves influenced and motivated for their opinions.

A disclaimer is almost automatic with legislative inquiries, even when they sound like trials by publicity. The presider usually intones that the subject being grilled is not a defendant in a trial but a “resource person.” The results of the interrogation, not always very friendly, are supposed to be insights “in aid of legislation.” The interrogators are not required to be polite. If someone in the resource panel being queried closes his eyes in meditation, he is accosted as being discourteous and needing a cup of coffee.

Economists are quite adept at disclaimers. They set out the assumptions for their forecasts with that qualifier “ceteris paribus” (all other things being the same). Thus, the impact of a rate reduction by the Fed or the Central Bank is predicted to affect stock prices positively as well as bring down unemployment. The outliers like a flare-up in the Gulf due to the intensification of the shooting war in the Gaza strip can sway the numbers in another direction. This is just one of those “other things” that were supposed to be static.

Those coming back to power after a long exile, even in the corporate world, are advised to issue disclaimers. Is he still a miracle worker? (The market may have changed as well as the technology.) Should the returning chief bill himself as a messiah or take the more modest route. (I will have to relearn this market as things have changed so much. I hope to be given some time to look for which switches to flip.)

Disclaimers can put context on certain situations. They don’t always set things right. Still, they prevent the interpretation of news and gossip from going too far out in the wrong direction.

A CEO retired from his powerful and highly compensated position before the mandatory age “due to health reasons” may raise eyebrows on the real reason for his hasty exit. This new retiree who seems to be physically active may issue a disclaimer, if only to his close circle of friends: “I was given a golden parachute and pushed out of the plane — before it even left the ground.”

 

Tony Samson is chairman and CEO of TOUCH xda

ar.samson@yahoo.com

Dining In/Out (09/19/24)

Peninsula in Pink, and other activities

THE Peninsula Manila has gone again until Oct. 15, with its annual campaign to raise funds and awareness in the fight against breast cancer. The Peninsula in Pink campaign includes pink-infused afternoon teas, and a Pink Staycation room package that comes with a pink turn-down amenity as well as a chance to sample The Lobby’s pink-tinted afternoon tea. The Grand Fountain is lit in pink every night until Oct. 15. Part of the proceeds raised from Peninsula in Pink will benefit the Philippine Foundation for Breast Care, Inc. and its advocacies. The Peninsula in Pink Afternoon Tea is available daily from 2:30 to 5 p.m., ranging in price from P2,890 (a three-tiered set with teas) to P4,890 (a three-tiered set with two flutes of champagne). The Pink Staycation Package room rates start at P15,100 for a Deluxe Room, where a part of the proceeds raised per room night will be donated. For inquiries, call The Peninsula Manila at 8887-2888 local 6694 (Restaurant Reservations) or 6630 (Rooms Reservations), e-mail diningpmn@peninsula.com or reservationpmn@peninsula.com, or visit peninsula.com.

Sheraton Manila sides with sustainable seafood

SHERATON MANILA BAY presents its Sustainable Seafood Night: A Discovery Moment of Responsible Sourcing and Food and Beverage Sustainability. The hotel has prepared a four-course dinner paired with artisanal cocktails. This event will also feature three businesses that have taken steps in sustainable sourcing, whether it be through farming, extracting, or designing. At the heart of the evening is the dinner, featuring sustainably sourced seafood and locally grown produce. The event will showcase the unique flavors of Osdone Corp., a local farm pioneering sustainable crayfish cultivation in the Philippines, Saint C, a brand that highlights the potential of calamansi, and Sula Spirits, an emerging player in the artisanal spirits scene, blending Filipino ingredients like coconut. The dinner will be held on Sept. 26, 7 p.m., at Sheraton Manila Bay’s &More by Sheraton restaurant. For inquiries, call 5318-0788, or visit www.sheratonmanilabay.com.

Chowking celebrates the Mid-Autumn Festival

CHOWKING offers its new Chocolate Buchi and Peanut Buchi flavors for Mid-Autumn Festival week. Chowking is also inviting families to visit their nearest Chowking branch to get a chance to join the Lucky Dice Game. For every purchase worth P600, diners get one roll of the dice for a chance to win instant prizes like exclusive Chowking merch and other freebies. The Chowking Buchi Platter and Family Lauriat are available via dine-in, take-out, drive-through, or delivery via www.chowkingdelivery.com, the Chowking App, GrabFood, or foodpanda. Chocolate Buchi and Peanut Buchi limited-time flavors are available until Feb. 28, 2025 (or until supplies last).

Pizza Hut offers burger pizza

Pizza Hut has created a new take on the cheeseburger with the Triple Cheesy Burger Pizza, made with a burger sauce base that’s topped with mozzarella cheese, beef burger patty pieces, beef toppings, and sliced cheddar cheese, finished with drizzles of burger sauce and cheese sauce, and then garnished with dried parsley. There’s also the new Triple Cheesy Burger Melts, made with mozzarella cheese, beef toppings, beef burger patty pieces, and sliced cheddar cheese, all folded into a thin and crispy parmesan cheese crust. It comes with a burger sauce dip on the side. The new Triple Cheesy Burger Pizza starts at P399 and is available in a variety of crusts: Pan Pizza, Mega Crunch Pizza, Stuffed Crust Pizza, and Ultimate Cheesy Bites Pizza. Meanwhile, the new Triple Cheesy Burger Melts is priced at P229 a la carte. Promos include the Triple Cheesy Craze for two set, priced at P799. It comes with one Regular Triple Cheesy Burger Pizza (a choice of Pan Pizza or Mega Crunch Pizza), one Regular Spaghetti Bolognese, four WingStreet Garlic Parmesan wings, and two servings of Pepsi. Then there’s the Triple Cheese Craze for four set, priced at P1,499; and the Triple Cheesy Pizza Craze set. The Triple Cheesy Burger Pizza is also available in Crunchy Pizza Pair Combo and Hot Deals 1+1. For delivery call the (02) 8911-1111 hotline, visit www.pizzahut.com, or the Pizza Hut mobile app, or order through Pizza Hut’s official delivery partners GrabFood and foodpanda (prices may vary).

Substantiation issues lead to partial VAT refund for PHL branch of Asurion HK

CTA.JUDICIARY.GOV.PH

THE Court of Tax Appeals partially granted a P3.1-million value-added tax (VAT) refund to the Philippine branch of Asurion Hong Kong Ltd.-Regional Operating Headquarters from P21.6 million, citing documentary deficiencies.

The 67-page decision, penned by Associate Justice Maria Belen M. Ringpis-Liban, ordered the Bureau of Internal Revenue (BIR) to refund Asurion P3.16 million, representing its excess and unutilized input VAT for 2018.

The technology company originally asked for a refund of P21.6 million, but the tax court denied the company the full amount due to a lack of proper documentation.

The tribunal said that Asurion met the legal requirements for a partial refund despite being unable to substantiate a portion of its declared zero-rated sales.

“Strict compliance with substantiation and invoicing requirements is necessary considering VAT’s nature and VAT system’s tax credit method, where tax payments are based on output and input taxes and where the seller’s output tax becomes the buyer’s input tax that is available as [a] tax credit or refund in the same transaction,” the decision publicized on Sept. 10 read.

“It ensures the proper collection of taxes at all stages of distribution, facilitates computation of tax credits, and provides accurate audit trail or evidence for BIR monitoring purposes,” it added.

The respondent, BIR, argued Asurion failed to justify its claim for a refund, citing incomplete documentation and the submission of photocopied invoices and receipts.

It added the taxes paid and collected are presumed to have been made under the laws and regulations, making them nonrefundable.

In defense, Asurion said its sales of services to clients outside the country qualified for zero-rated VAT status and the input VAT it had incurred should be refunded.

The tech firm refuted BIR’s claims that it did not provide the necessary documents to support its request. — Chloe Mari A. Hufana

China’s Lenovo to make AI servers in India, opens new centric lab

REUTERS

BENGALURU — China’s Lenovo Group will start making artificial intelligence (AI) servers at its plant in southern India and opened an AI servers-focused R&D lab in the tech hub of Bengaluru, the electronics hardware maker said on Tuesday.

Lenovo said it aims to make 50,000 AI rack servers and 2,400 graphic processing unit (GPU) servers, which are designed specifically for resource-heavy tasks like machine learning, annually at the plant in Puducherry.

“The servers are not only for local consumption but also for exports,” Amar Babu, president of Asia-Pacific at Lenovo, told Reuters.

He declined to disclose any investment or hiring targets for the R&D lab or the Puducherry plant, at which Lenovo already makes laptops, notebooks, and personal computers (PCs).

The demand for GPUs or AI chips has skyrocketed since the generative AI wave that kicked off in late 2023, boosting the fortunes of the likes of Nvidia and AMD.

AI hardware is expected to corner 12% of the global AI market, which is to nearly triple to $380 billion in 2027, according to a Nasscom-BCG report released earlier this year.

Lenovo, which gets about 47% of its revenue from its non-PC businesses, follows the likes of Apple, Foxconn, and Dell in increasing manufacturing capacity in India, in part to lower their dependence on China.

India too has been luring companies, including tech-focused ones, by providing manufacturing-linked incentives.

While the AI-server manufacturing plan is not linked to any government incentive scheme, its partnership with Indias Dixon Technologies to make PCs and Motorola phones does take advantage such schemes, said Babu. — Reuters

Global goals and peace — chip in with Taiwan

THE ONGOING 79th session of the United Nations General Assembly (UNGA) commenced at the UN Headquarters in New York on Sept. 10, 2024, with the general debate to be held from Sept. 24 to 28 and on Sept. 30. The theme this year is “leaving no one behind: acting together for the advancement of peace, sustainable development and human dignity for present and future generations.”

Ironically, the 23.5 million people of Taiwan continue to be left behind by the UN system. This grave injustice is due mainly to China’s misrepresentation of UNGA Resolution 2758; China’s attempts to mislead the international community into accepting that the resolution is equivalent to the so-called “one China principle”; and China’s spurious claims that Taiwan is part of the People’s Republic of China and that Resolution 2758 has authorized the PRC to represent Taiwan in the UN system.

In the face of China’s cognitive warfare, prompt rebuttals and clarifications must be issued. Otherwise, the objective status quo across the Taiwan Strait — in which neither the ROC (Taiwan) nor the PRC is subordinate to the other — will utterly change, allowing China to lay a legal foundation for an armed invasion of Taiwan. Therefore, Taiwan’s bid to participate in the United Nations this year is focused on enhancing international understanding of UNGA Resolution 2758.

Firstly, the PRC distorts UNGA Resolution 2758, falsely conflating it with its “one China principle.” This has jeopardized the status quo across the Taiwan strait as well as the stability in the Indo-Pacific Region. The PRC’s expansionism will not stop at Taiwan. As the Philippine Coast Guard patrol vessel BRP Teresa Magbanua (MRRV-9701) was preparing to raise anchor at Sabina Shoal on Aug. 31, it was deliberately rammed multiple times in intimidating and dangerous maneuvers by a China Coast Guard vessel. This marked the third confrontation between the two sides in the same maritime area in recent days. China has recently cited “rights protection” as a pretext for using illegal, threatening, coercive, and dangerous maneuvers to obstruct and interfere with the legal navigation of Philippine vessels, leading to several collisions at sea. Taiwan condemns China’s bullying tactics in repeatedly and intentionally causing confrontations and escalating tensions in the South China Sea.

Moreover, UNGA Resolution 2758 does not preclude Taiwan’s meaningful participation in the UN system. The United Nations must seek suitable ways of including Taiwan to realize the UN Sustainable Development Goals. In addition to its contribution to world peace, health, agriculture, and climate change, Taiwan also contributes remarkably to global supply chains stability by producing more than 90% of the world’s high-end semiconductors and a significant portion of the advanced chips that are driving the AI revolution, and thus demonstrate profoundly its strategic importance.

Lastly, the UN Secretariat must uphold neutrality. The current practice of prohibiting Taiwan passport holders from entering UN premises constitutes blatant discrimination against the people of Taiwan and is based purely on political considerations. The fact that Taiwanese media outlets and journalists continue to be denied accreditation to cover UN meetings and events also violates the principle of freedom of the press.

Looking ahead, Taiwan will continue working with like-minded countries to maintain healthy and resilient global supply chains — particularly in the semiconductor industry. Taiwan also opposes any threat to security in the South China Sea or actions that harm regional peace and stability. It urges all sides to exercise restraint, abide by international law and the UN Convention on the Law of the Sea, and resolve differences via peaceful means. I hereby call on the Philippine government, its Congress, and its people to support Taiwan’s inclusion in the United Nations and related meetings, mechanisms, and activities. After all, chipping in with Taiwan in the United Nations will be a step closer to the global common good.

Wallace Minn-Gan Chow
Representative
Taipei Economic and Cultural Office in the Philippines

PHL return to emerging market bond index may take two to three years

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE PHILIPPINES’ peso-denominated government issuances could be included in investment bank JPMorgan Chase & Co.’s emerging markets bond index within the next two to three years, National Treasurer Sharon P. Almanza said late on Tuesday.

“Usually, it takes two to three years when you get onboarded and are added to their watchlist. It’s not that easy to get in. If we get approved this year, we’ll be in,” Ms. Almanza told reporters on the sidelines of a Palace event.

“We will know if we are approved by next month. They will release the results by October,” she added.

Ms. Almanza said the Philippines’ inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines is in talks with JPMorgan for the inclusion of its peso bonds in the bank’s emerging-market debt gauge, Finance Secretary Ralph G. Recto told Bloomberg News last month. The country’s global peso notes dropped out of the index in January due to illiquidity.

The Philippines’ inclusion in the debt gauge will help boost market liquidity, Reyes Tacandong & Co. Senior Adviser Jonathan L. Ravelas said in a Viber message.

“Rejoining the JPMorgan bond index could boost investor interest in Philippine government bonds, potentially lowering borrowing costs and improving market liquidity,” Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message.

Philippine bonds could attract more demand and fetch lower yields if they are included in the index, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

He added that peso bonds will have a more diverse investor pool as a result as the index will give the Philippine government’s issuances international exposure.

“This would thereby expand the sources of funding for Philippine National Government borrowings to finance the budget deficit,” Mr. Ricafort said. — A.M.C. Sy

One product, 100 uses

IT’S IN the name: baking soda. You use it to make bread and other baked goods rise in the oven. While many people have heard of the multiple uses of baking soda, Arm & Hammer proudly displays in their new label that there are more than 100 uses for it.

It can be used for baking, of course. “You don’t really use a lot. You just use a pinch. But they found out that baking soda is not only used for baking, but there are more than 100 uses,” said Peter Tiope, President of Global Strategic Partners Distribution, Inc. — the exclusive distributor of Arm & Hammer in the Philippines since 2003 — during a luncheon at Jones All Day in BGC, Taguig.

Other uses in the kitchen include using it as a meat tenderizer, and one may also use it to wash fruits and vegetables. “Nowadays, with the harvests, you don’t know if it’s laden with pesticides or whatever chemicals,” he told BusinessWorld. And then one can use it to clean the kitchen sink, and many other things besides.

Mr. Tiope directs us to armandhammer.com for the several tips they have on the website (although the armandhammerarabia.com website is organized better, with the 100 ways displayed prominently). These include tips like using baking soda to clean pots and pans, the coffee maker, bathroom floors; for soaking toothbrushes; and even hair care.

To emphasize the different ways one can use their products, they’ve come out with different variants and packaging. They have a sprinkling canister, but also marked boxes for deodorizing and cleaning — with the fragrance, it’s not for human consumption, of course.

Mr. Tiope personally swears by the toothpaste and the deodorant: “I grew up using a different brand of toothpaste. I had apprehensions about using baking soda for my oral care. I started using Arm & Hammer; it actually cleans.” As for the deodorant and anti-perspirant, he says that other brands feel sticky under his shirt. With the Arm & Hammer product, “It’s as if you’re wearing nothing at all.”

A bit of a clarification: while it’s widely rumored that tycoon Armand Hammer (ancestor of actor Armand Douglas “Armie” Hammer of Call Me By Your Name and The Social Network fame) is the progenitor of the brand, it’s actually owned by Church & Dwight, founded as John Dwight and Company in 1847 — several years before the birth of the senior Mr. Hammer in 1898. The Hammer family actually made its fortune in oil and other industries (though according to straightdope.com, Mr. Hammer had once tried to acquire the company, and even had a seat on the board due to a stock deal).

While there are other brands of baking soda available in the market, Mr. Tiope says these are “actually produced synthetically. It’s not pure. Arm & Hammer baking soda is actually mined in the mountains of Wyoming. That is very natural.” — JLG

Ayala group’s healthcare facilities transition to RE

THE RETAIL electricity supply arm of ACEN Corp. has forged a partnership with Ayala Healthcare Holdings, Inc. (AC Health) to power the latter’s medical facilities with renewable energy (RE).

ACEN Renewable Energy Solutions (ACEN RES) will supply electricity to six Healthway Medical Network facilities from ACEN’s renewable energy sources, the company said in a statement on Wednesday.

The facilities that will shift to renewable energy include Healthway QualiMed Hospital Santa Rosa, Healthway QualiMed Manila, and Healthway Cancer Care Hospital in Manila.

Other facilities transitioning to renewable energy include Healthway QualiMed Hospital San Jose Del Monte (Bulacan), Healthway Daniel O. Mercado Medical Center, and FEU-NRMF Medical Center in Quezon City.

“By switching to renewable energy, AC Health’s facilities are projected to avoid an estimated 68,360 tons of CO2 (carbon dioxide) emissions throughout the contract period — equivalent to the amount of CO2 absorbed by approximately 3.1 million trees in one year,” the company said.

ACEN said that AC Health’s shift to renewable energy underscores the latter’s commitment to “environmental responsibility and patient well-being.”

“Our partnership with AC Health exemplifies how renewable energy can enhance essential services like healthcare,” ACEN President and CEO Eric T. Francia said.

“By powering AC Health’s facilities with clean energy, we are reducing their environmental impact while supporting their mission of improving health outcomes. This collaboration reinforces our shared vision of creating a more sustainable future for the country,” he added.

Currently, ACEN holds about 4.8 gigawatts (GW) of attributable renewables capacity in operation and under construction, as well as signed agreements and won competitive tenders worth over one GW.

Meanwhile, AC Health is the healthcare unit of Ayala Corp. Its portfolio consists of the pharmacy chain Generika Drugstore, pharmaceutical importer and distributor IE Medica and MedEthix, multispecialty clinics, ambulatory centers and full-service hospital network Healthway, and healthcare aggregator app KonsultaMD. — Sheldeen Joy Talavera

US News: Philippines ranks 45th in Best Countries list

The Philippines dropped two places to 45th out of 89 countries with a score of 25 (out of possible 100) in the latest annual Best Countries rankings by US News and World Report, in collaboration with the Wharton School of the University of Pennsylvania. The rankings are based on global perceptions which define countries in terms of a number of qualitative characteristics, which can influence trade, travel, investment, and national economies.

Philippines ranks 45<sup>th</sup> in best countries list

How PSEi member stocks performed — September 18, 2024

Here’s a quick glance at how PSEi stocks fared on Wednesday, September 18, 2024.

First energy-efficiency law incentives granted by BoI

ROBERT LINDER-UNSPLASH

THE Board of Investments (BoI) approved the registration of a solar project undertaken by Nakashin Davao International, Inc., making it the first business to be granted incentives offered under the Energy Efficiency and Conservation (EE&C) Act.

In a statement on Wednesday, the BoI said that Nakashin’s 519.2-kilowatt-per-hour solar photovoltaic rooftop system project is eligible for an income tax holiday (ITH) equivalent to 50% of its capital investment.

Estimated to cost P26 million, the project will be installed in the company’s food manufacturing facility. Nakashin produces agricultural and aquatic products for export to Japan and the European Union.

“The Department of Energy (DoE) has certified that Nakashin’s project meets the required standards for endorsement by the BoI, further supporting its alignment with the country’s sustainability goals,” the BoI said.

Signed in 2019, the EE&C Act aims to encourage the use of energy-efficient technologies to help achieve the Philippines’ renewable energy (RE) goals.

The government has set a target for RE to account for 35% of the power generation mix by 2030, rising to 50% by 2040.

“By adopting RE technologies like solar, companies in the Philippines can significantly reduce their electricity costs and reinvest savings into business expansion, boosting overall economic growth,” the BoI said.

“Nakashin’s solar rooftop system will not only reduce its dependence on grid-supplied electricity but will also provide reliable and sustainable power for its operations,” it added.

BoI Memorandum Circular 2023-006 provides that self-financed EE&C projects are entitled to the ITH incentive and duty exemption on imports of capital equipment, raw materials, spare parts, or accessories. — Justine Irish D. Tabile

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