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Balangiga, Larawan top FAMAS nominations

WITH 11 nominations including Best Picture, Best Director, Khavn dela Cruz’s Balangiga: Howling Wilderness leads the list of nominees of the 66th Filipino Academy of Arts and Sciences (FAMAS).
This year’s FAMAS Awards will be held on June 10 at The Theater at Solaire of Solaire Resort and Casino in Parañaque City.
The FAMAS Awards is considered the oldest film industry award-giving body in the country and one of the oldest in Asia. All Filipino-produced films that premiered in 2017 that had at least one day of commercial screenings are qualified for this year’s awards.
Balangiga is followed by Loy Arcenas’ Ang Larawan which has six nominations including Best Picture and Best Actress for Joanna Ampil.
Below is the full list of nominees:
• Best Picture — Ang Larawan; Balangiga: Howling Wilderness; Birdshot; Love You to the Stars and Back; Nervous Translation; Paki; Respeto; Tu Pug Imatuy (The Right to Kill); The Chanters; Yield
• Best Director — Khavn dela Cruz, Balangiga: Howling Wilderness; Mikhail Red, Birdshot; Top Nazareno, Kiko Boksingero; Antoinette Jadaone, Love You To the Stars and Back; Shireen Seño, Nervous Translation; Alberto “Treb” Monteras II, Respeto; Arnel Barbarona, Tu Pug Imatuy; Victor Delotavo Tagaro, Toshihiko Uriu, Yield
• Best Actor — Justine Samson, Balangiga: Howling Wilderness; Allen Dizon, Bomba; Jojit Lorenzo, Changing Partners; Noel Comia, Kiko Boksingero; Joshua Garcia, Love You To the Stars and Back; Timothy Castillo, Neomanila; Abra, Respeto; Dingdong Dantes, Seven Sundays; Nonie Buencamino, Smaller and Smaller Circles; Bembol Roco, What Home Feels Like
• Best Actress — Joanna Ampil, Ang Larawan; Angeli Bayani, Bagahe; Iza Calzado, Bliss; Agot Isidro, Changing Partners; Nathalie Hart, Historiographika Errata; Maja Salvador, I’m Drunk, I Love You; Max Eigenmann, Kulay Lila ang Gabi na Binudburan pa ng mga Bituin; Julia Barretto, Love You To the Stars and Back; Dexter Doria, Paki; Gloria Diaz, Si Apple at si Chedeng
• Best Supporting Actor — Robert Arevalo, Ang Larawan; John Arcilla, Birdshot; Edgar Allan Guzman, Deadma Walking; Mon Confiado, Mga Gabing Kasinghaba ng Hair Ko; Ricky Davao, Paki; Dido dela Paz, Respeto; Loonie, Respeto; Jess Mendoza, Sa Gabing Nanahimik Ang mga Kuliglig; Aga Muhlach, Seven Sundays
• Best Supporting Actress — Odette Khan, Barboys; Adrienne Vegara, Bliss; Angeli Sanoy, Bomba; Chai Fonacier, Respeto; Yayo Aguila, Kiko Boksingero; Thea Yrastorza, Respeto; Cristine Reyes, Seven Sundays; Irma Adlawan, What Home Feels Like
• Best Original Screenplay — Khavan dela Cruz, Achinette Villamor, Jerry Gracio, Balangiga: Howling Wilderness; Jason Paul Laxamana, Instalado; Antoinette Jadaone, Love You To The Stars and Back; Gian Carlo Abrahan, Paki; Alberto “Treb” Monteras II, Njel de Mesa, Respeto; Fatrick Tabada, Si Chedeng at si Apple; Adrian Legaspi, John Bedia, The Chanters
• Best Adapted Screenplay — Ang Larawan, from the musical of the same title with libretto by Rolando Tinio, adapted screenplay by Waya Gallardo with contributions from Celeste Gallardo, Loy Arcenas, Alemberg Ang, Dennis Marasigan, Girlie Rodis and Ryan Cayabyab; Changing Partners, based on the musical of the same title by Vincent de Jesus, adapted screenplay by Vincent de Jesus and Lilit Reyes; Smaller and Smaller Circles, based on the novel of the same title by F.H. Batacan, adapted screenplay by Ria Limjap ang Moira Lang
• Best Cinematography — T.M. Malones, Baconaua; Albert Banzon, Balangiga: Howling Wilderness; Mycko David, Birdshot; Alex Espartero, Historiographika Errata; Boy Yñiguez, Last Night; Ike Avellana, Respeto; Victor Delotavo Tagaro, Yield
• Best Production Design — Jao Manahan, Alipato; Gino Gonzales, Ang Larawan; Marija Vicente, Timmy Harn, and Zeus Bascon, Balangiga: Howling Wilderness; Michael N. Espanol, Birdshot; Donald Camon, Julius Erving Somes, Historiographika Errata; Leeroy New, Nervous Translation; Popo Diaz, Respeto
• Best Editing — Carlo Francisco Manatad, Balangiga: Howling Wilderness; Lawrence Ang, Respeto; Jerrold Tarog, Bliss; Marya Ignacio, Changing Partners; John Torres, Shireen Seño, Nervous Translation; Victor Delotavo Tagaro, Yield
• Best Sound — Mikko Quizon, Stephen Lopez, Balangiga: Howling Wilderness; Aian Caro, Birdshot; Mikko Quizon, Bliss; Dempster Samarista, Krysver Gomez, Bundok Banahaw, Sacred and Profane; Mikko Quizon, Jason Conanan, Kathrine Salinas, John Perez, Nervous Translation; Corrine De San Jose, Respeto; Victor Delotavo Tagaro, Yield
• Best Musical Score — Ryan Cayabyab, Ang Larawan; Khavn Dela Cruz, Balangiga: Howling Wilderness; Francis de Veyra, Historiographika Errata; Joee Mejias, Medusae; Jay Oliver Durias, Respeto; Alyana Cabral, The Debutantes; Arnel Barbaron, Tu Pug Imatuy
• Best Visual Effects — Iar Arondaing, Instalado; Mothership, The Ghost Bride; Imaginary Friends Studios, Pwera Usog
• Best Original Song — “Twelve,” 12; “Ang Panday,” Ang Panday; “Gitik –Gitik,” Balangiga: Howling Wilderness; “Katurog Na,” Balangiga: Howling Wilderness; “Yung Pakiramdam,” Changing Partners; “Alaalarawan,” Kiko Boksingero; “Para sa Respeto,” Respeto; “Kabuwisit Ba,” Respeto; “Last Message from Earth,” Alipato, Historiographika Errata
• Best Short Film — Dory, Beverly Anne G. Ramos; Gikan sa Ngitngit nga Kinailadman, Kiri Dalena; Aliens Ata, Karl Glenn L. Barit; Engkwentro, Ryan Machado; Link, Mike Esteves; Babylon, Keith Deligero; Sorry for the Inconvenience, Carl Adrian Chavez; Suerte, Carlo Rhenz C. Fajardo — ZBC

Gov’t makes partial T-bills award

THE GOVERNMENT made a partial award of the Treasury bills (T-bill) it offered on Monday, rejecting bids for the one-year tenor, as investors await a possible tightening move from the central bank later this week.
The Bureau of the Treasury only awarded P9 billion out of the P15 billion it planned to raise yesterday even as total tenders spiked to P30.34 billion.
Almost half of the total tenders were for the shortest security on offer on Monday. Bids for the 91-day T-bills stood at P15.145 billion, thrice the programmed P5-billion borrowing. The Treasury made a full award of its offer as the rate inched down to 3.439% from 3.486% in the previous auction.
The government also raised P4 billion as planned via the 182-day papers, with total tenders reaching P10.62 billion. The average yield also slipped to 3.958% from last week’s 4.019%.
However, the Treasury rejected all bids for the 364-day security as offers reached just P4.58 billion, below the P6 billion the government wanted to borrow yesterday.
At the secondary market prior to the auction, the three- and six-month T-bills were quoted at 3.675% and 4.4%, respectively, while the one-year papers fetched 4.6%.
At the market’s close, the 91-day securities rallied to fetch 3.3822%, while the 182-day papers saw its yield inch down to 4.3933%. The rate of the 364-day T-bill was steady at 4.6%.
National Treasurer Rosalia V. De Leon told reporters on Monday that investors still prefer to place their funds in the short-tenored papers.
“A lot of the bids flocked to the shortest end of the curve — in the 91- and 182-[day tenors] — first, because the Bangko Sentral ng Pilipinas (BSP) will reduce their term deposit facility (TDF) volume to P60 billion. So it shows the preference for the short end,” Ms. De Leon said.
This week, the BSP will offer just P60 billion under the TDF from P90 billion previously.
Ms. De Leon added that investors factored in their uncertainties about the country’s inflation path.
“Also, the preference [for the short-end] continues to be because of the uncertainties about inflation. Inflationary expectations are also building up, so…hopefully the action of BSP on Thursday will have a calming effect.”
In a BusinessWorld poll, nine out of 11 economists said they expect the BSP to tighten monetary policy at Thursday’s meeting, with inflation hitting multi-year highs and showing slim signs of slowing in the coming months.
Inflation picked up to a five-year high of 4.5% in April. This was higher than the 4.3% print tallied the previous month.
BSP Governor Nestor A. Espenilla said ahead of the April data last week that inflation is becoming broader than initially expected according to latest observations.
“What we react to is whether it’s spreading and it is affecting expectations. And our reading, based on the latest data, it seems to have spread somewhat,” Mr. Espenilla said.
Asked on the rejection of bids for the one-year debt papers, Ms. De Leon said banks are “testing the tolerance level of the Treasury.”
“It’s not something that we will easily accept because they should also see our liquidity position. They should know by now,” she said, adding that the revenue collections of Bureau of Internal Revenue and Bureau of Customs contributed to the government’s comfortable cash position.
A trader shared this sentiment, saying bids by banks for the one-year securities were rejected because they was higher than expected.
“Preference was still in the short securities amid uncertainty of a possible rate hike in the upcoming [Monetary Board] meeting,” the trader added.
The Treasury is holding two auctions per week this quarter — one for Treasury bonds and another for T-bills — to reflect increased borrowing requirements.
The government plans to borrow P888.23 billion this year from local and foreign sources to fund its budget deficit, which is capped at 3% of the country’s gross domestic product. — K.A.N. Vidal

Higher LPG sales drive Pryce’s Q1 income growth

PRYCE CORP. posted a 12.8% increase in first-quarter net income to P340.3 million, the company said, as volume of sales of liquefied petroleum gas (LPG) grew by around the same pace.
In a statement, Pryce said consolidated revenues rose by 6.3% to P2.35 billion during the January to March period, from P2.21 billion in the same period last year.
First-quarter volume sales of LPG in the Visayas-Mindanao regions increased by 12.9% to 21,992 metric tons (MT) from 19,487 MT previously. Comparable sales volume in Luzon fell by 2.1%.
“The anticipation of an increased LPG price due to the Jan. 1, 2018 effectivity of the TRAIN (Tax Reform for Acceleration and Inclusion) law, which would slap a P1 per kilo excise tax on LPG, probably took away 2 to 3 days worth of sales from January 2018 and instead added these to December 2017 sales. Thus, volume sales in January 2018 came out lower than they would have been otherwise,” the company said.
During the first quarter, the average LPG contract price was $519 per MT, which is lower by $19/MT than $538/MT, the average contract price for the same period last year.
“This also contributed to the lower growth in peso sales during the first quarter,” the company said.
Pryce said it was confident of achieving its target of 15% sales volume growth in the Visayas-Mindanao area and 20% net income growth in 2018.
“[The company’s] ongoing expansions in its marine-fed terminals and refilling plants across the country are expected to gradually show its effects, yield positive results and validate the company’s growth expectations for volume and net income in 2018,” it said.
Earnings during the first three months of the year translate to an earnings per share of P0.155, it said.
“Sometime this July 2018, the company will declare its second regular dividend for the year. A policy of giving out regular cash dividends was promised to shareholders in our stockholders’ meeting last year and is now being implemented,” Pryce said. — Victor V. Saulon

PLDT reduces Rocket stake to 2%

PLDT, INC. on Monday said it has completed the sale of most of its shares in German e-commerce investor Rocket Internet.
In a statement, PLDT said Rocket Internet has accepted 6,800,000 Rocket shares tendered by PLDT subsidiary PLDT Online Investments Pte. Ltd. at €24 per share or a total of €163.2 million. This represents around 67.4% of the Rocket shares held by PLDT Online.
From its equity ownership of 6.1%, PLDT Online will now have a 2% stake in Rocket.
PLDT said Rocket will settle the payment on or before May 14.
Rocket Internet earlier announced the buyback of up to 15.47 million shares through a public share purchase offer at €24 per share.
In August 2014, PLDT invested €333 million (around $362 million) for a 10% stake in Rocket, whose brands then included Southeast Asian e-commerce platforms such as Zalora and Lazada. In October that year, Rocket Internet went public, which effectively diluted PLDT’s stake to 6.1%.
PLDT Chairman Manuel V. Pangilinan had previously said the company may sell its position in Rocket to fund its capital expenditure (capex), which is expected to stay above P50 billion for this year. PLDT is set to expand its fixed and mobile networks as part of its five-year P260-billion capex program.
Mr. Pangilinan had said that there is “no pressure” to divest the remaining one third of its stake in the German company, and that the divestment would depend on the movement of the share price of Rocket. He said PLDT still sees its investments in Rocket as still valuable.
Shares in PLDT fell by P21 or 1.54% to close at P1,345 each on Monday.
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. — P.P.C. Marcelo

Davao City ideal for casino, gaming investments — study

DAVAO CITY — A study conducted by consultancy firm Property Interactive Marketing Enterprise (PRIME Philippines) indicates that Davao City is one of the most ideal locations for casino, gaming, and hotel investments.
“In our report for this month we tackled the current settings of the Philippines, why is it viable for the said industries. We would like to encourage investors of hotel or casino operators to go to Davao as (it is) really a viable place for the said industries,” Raphil D. Saguan, PRIME Philippines capital markets and investment associate, told media in a forum last week.
The firm cited that there was an 11.6% increase in casino and offshore gaming gross revenue from 2016 to 2017 in the Philippines, which can be attributed to the growth of the country’s international market.
Mr. Saguan said Davao is a good site because of the growing population that could serve as a source of both clientele and labor force, low poverty incidence, and increase in tourism traffic.
“As you look at it, we have a very good population (here), we can outsource human resources, and we have buying power,” he said.
He also cited that Davao has an average annual income of P247,000, which is close to the national average of P267,000.
“We see spending power among Davaoeños,” he said.
Competition in the casino and gaming sector is also low with only two existing major establishments.
“Only the one in Grand Regal (Hotel) and the one in Apo View Hotel,” Mr. Saguan said.
For tourism, the PRIME Philippines official said, “Currently we have 3.6 days average length of stay of tourists, both foreign and local, and daily expenditures is P4,270. That’s quite high. We also look at the higher demand of tourism related facilities or hotels. Despite having 10,512 rooms in 318 accommodations, we are still short.”
The company has standing non-disclosure agreements with five international hotel operators that are keen on expanding in Davao with the expected increase in direct international flights.
“We’re talking about a European based hotel, an American, and a Swiss, definitely these are world-renowned brands. They are interested in mainly putting up a hotel,” Mr. Saguan said. — Maya M. Padillo

Avengers: Infinity War scores second-biggest second weekend ever

LOS ANGELES — Avengers: Infinity War can check off yet another record: The second-highest second weekend of all time.
Disney and Marvel’s latest collaboration earned $112.5 million from 4,474 North American locations in its second frame. The 56% decline was just enough to top the record previously held by fellow Marvel title Black Panther, which made $111.6 million in its second weekend. Star Wars: The Force Awakens holds the prize for biggest second weekend, with a mighty $149 million in 2015. Only five films have ever hit the $100 million-mark in their second weekends.
In just North America, the superhero mashup has made $450.8 million. Among Infinity War’s numerous accomplishments is being the fastest film to gross $1 billion, in just 11 days. And the film has yet to open in China.
One of three weekend releases opening in Infinity War’s almighty wake is Overboard, anchoring in the second spot with a solid $14 million in 1,623 theaters. The MGM and Lionsgate Pantelion remake of Goldie Hawn-Kurt Russell’s classic romcom of the same name now stars Anna Faris and Eugenio Derbez. That three-day estimate washes in slightly ahead of Derbez’s last leading role, How to be a Latin Lover, which bowed with $12 million in 2017. Overboard is currently averaging a bleak 30% on Rotten Tomatoes. The audience score, however, is faring better with a 76%.
Slipping to No. 3 in its fifth weekend is Paramount Picture’s A Quiet Place. John Krasinski’s horror thriller made $7.5 million in 3,413 locations, bringing its domestic total to an impressive $159.8 million. The third weekend of Amy Schumer’s I Feel Pretty secured the fourth slot with $4.9 million from 3,232 theaters. Its North American tally currently sits at $37.8 million. Rounding out the top five is Dwayne Johnson’s Rampage. The Warner Bros. film grossed $4.6 million in 3,151 locations. In four weeks, its domestic total is $84.7 million.
Black Panther likely saw another boost from Infinity War. The Chadwick Boseman-starrer landed in sixth place, taking in $3.2 million from 1,641 locations in its 12th weekend. To date, Black Panther has made $693 million in North America.
Thanks primarily to Infinity War, the year to date box office is up 5.2%, according to comScore. — Reuters

BDO raises P8.2B from LTNCDs

BW FILE PHOTO

BDO Unibank, Inc. raised P8.2 billion from its long-term negotiable certificates of deposit (LTNCD), which it wants to use to manage the bank’s liabilities.
At the ceremonial listing of the investment instruments on Monday at the Philippine Dealing System (PDS), the Sy-led BDO said it raised P8.2 billion from the peso-denominated issue.
The notes will mature in 5.5 years and carry an interest rate of 4.375% to be paid quarterly until Nov. 7, 2023.
Like regular time deposits offered by banks, LTNCDs offer higher interest rates. However, LTNCDs cannot be pre-terminated but can be sold on the secondary market, making them “negotiable.”
Last month, the country’s biggest lender raised the size of its LTNCD offer to P8.2 billion from the original P5 billion amid robust demand from both retail and institutional investors.
The offering booked total subscriptions of P12.3 billion, more than twice the offer the bank initially intended.
Shortly after the bell-ringing ceremony, BDO senior vice-president Dalmacio D. Martin said proceeds from the long-term note offering will be used for liability management.
“For us, it allows us to better manage our liability mix and liability profile,” Mr. Martin told reporters, adding that the long-term notes provide investors “a whole new product to invest in” which is exempted from tax.
“If they hold it more than five years and one day, it’s tax-exempt as opposed to time deposits which are subject to 20% withholding tax. There is a clear net interest advantage to the investors.”
BDO last raised funds via LTNCDs in August 2017 and raised P11.8 billion — double the original P5-billion plan. These notes carry a 3.625% interest rate and will mature on Feb. 18, 2023.
BDO’s listing brings the total volume of outstanding securities listed at the Philippine Dealing & Exchange Corp. (PDEx) to P862.88 billion, floated by 47 companies.
“With this issuance, the SM Group’s total outstanding amount of bonds listed shall be P180.77 billion for share of 21% of the total face amount of [the total outstanding volume of securities] listed in the PDEx,” PDS Chief Operating Officer Antonino A. Nakpil said.
BDO shares closed at P128.50 each on Monday, up 50 centavos or 0.39%. — Karl Angelo N. Vidal

Duty Free PHL luxury store to open at SM MOA

DUTY FREE Philippines Corp. (DFPC) is set to open next month two new stores, including one featuring luxury designer brands at the SM Mall of Asia (MOA) complex.
In a statement on Monday, DFPC Chief Operating Officer Vico A. Angala said the Duty Free Philippines Luxe store will offer a wide selection of imported brands ranging from luxury labels such as Bally and Ferragamo to mid-range brands like Coach and Michael Kors.
The 4,200-square meter store will be located within the SM Mall of Asia complex.
“This new upscale shopping environment will set a standard for the affluent market especially in Southeast Asian countries,” Mr. Angala said.
DFPC is the government agency that has the exclusive franchise to operate duty and tax-free shops in the country.
The company will also open the NAIA Terminal 3 Landside Store, located at the arrival lobby of the airport. Arriving passengers can purchase chocolates, perfume, liquor, tobacco and other items at prices lower than the prevailing market price in Metro Manila.
“Despite the increasing market of other retailers and online shopping, DFPC maintains to augment market revenues, expand its reach to consumers to support the Philippine economic growth,” Mr. Angala said. — Denise A. Valdez

How Mickey Mouse and friends conquered China

By Adam Minter, Bloomberg View
TWO YEARS AGO, Wang Jianlin, once China’s richest man, referred to his network of theme parks as a “wolf pack” that would chase Walt Disney Co. and its Shanghai Disneyland from China. Last week, Shanghai Disney unveiled a major expansion of its $5.5-billion park, now the most popular in China. Wang, by contrast, is out of the business altogether, having sold his theme-park holdings to raise cash for his real-estate company.
Wang’s rollercoaster descent is, in part, a tribute to Disney’s global appeal. But it also reveals shortcomings in government policy — and shows just how far China’s entertainment companies must go to match Hollywood’s standards.
As far back as the mid-1990s, large-scale theme parks began opening in China’s bigger cities. By the early 2000s, smaller ones were a common sight across the country. The ones I visited around that time featured imported secondhand rides, questionable safety, and middle-class families keen to entertain their only children. But it wasn’t long before the business began to professionalize and expand. By 2016, China’s roughly 2,700 theme parks were attracting more than 200 million annual visitors and $4.9 billion in revenue.
Yet only 10% of those parks were profitable. The problem was that most operators weren’t interested in fun. Instead, they were interested in land. This was thanks to well-intentioned public policy: In the early 2010s, local governments offered to reduce the skyrocketing cost of land for developers willing to build parks and other civic amenities as part of broader real-estate developments.
Enter Wang and his Dalian Wanda Group Co., one of the biggest and best-connected developers in the world. Having succeeded at building housing, shopping malls, and hotels in most major Chinese cities, Wang had plenty of development experience. He had a vision, too. As a patriotic army veteran, he wanted to build attractions that celebrated Chinese culture — not Mickey Mouse. And he wasn’t joking around: He committed about $30 billion to build as many as 20 parks.
But Wang was soon in over his head. While Shanghai Disney drew 11 million visitors in its first year, Wang’s $510-million park in Wuhan, expected to attract 3 million annual visitors, was attracting about 200 a day in 2016. (It has since closed.) Other Wanda parks had similar results, and Wang sold the business last year.
In retrospect, it may seem obvious that an experienced theme-park operator like Disney would triumph over a trash-talking real-estate developer. But Wanda’s failures ran much deeper. Most important, it lacked Disney’s reservoir of globally appealing intellectual property — including characters such as Mickey Mouse and the Avengers — and instead relied on more traditional themes. Traditional culture is certainly popular (and marketable) in China. But a theme park needs more than, say, “Hubei in the Air,” a not-so-inspired virtual flyover of the Wuhan park’s home province. Until China develops its own intellectual properties — and it surely will — Disney, Universal Studios and other global entertainment giants will have a distinct advantage.
China’s government isn’t oblivious to this dynamic. Last month, it warned theme-park operators about rising risks and said that state planners should play a bigger role in guiding new projects. It aims to raise standards and — just as important — rein in ballooning debts. Incentives for bundling parks into other real-estate developments are also coming to an end.
In the short term, that’s good news for Disney and other foreign operators that have the capital to spend big and the characters to make a theme park come alive. They and their local partners are likely to prosper until Chinese companies develop a compelling catalog of their own characters and fantasies. That won’t happen overnight; it took Walt Disney almost 30 years to go from Mickey Mouse to the first Disneyland. But if nothing else, the journey promises to be entertaining.

New York’s Plaza Hotel to go global after $600-M sale

DUBAI — A Dubai-based investor said Sunday he has teamed up with a US real estate heavyweight to purchase New York’s Plaza Hotel, and plans to turn the icon into a global brand.
Shahal Khan, whose Dubai-based White City Ventures partnered Kamran Hakim to make the $600-million purchase, said they aim to expand to the United Arab Emirates (UAE) by 2020.
“The Plaza is very unique but has never been made into a global brand,” he told AFP.
The historic hotel has appeared in numerous movies, including Home Alone 2, in which then-owner, now US President Donald Trump, makes a cameo appearance in the lobby.
The Plaza was notably part of the portfolio of Saudi tycoon Al-Waleed bin Talal, who was detained at the Riyadh Ritz Carlton last November in a crackdown on alleged corruption and freed after reaching an undisclosed settlement to hand over assets and cash.
The Plaza deal, Khan said, has been “signed” and the deed will formally change hands on June 25.
“I’m looking for a place — maybe China, maybe even one in Europe — but I thought it might be good to make the only other one in Abu Dhabi or Dubai,” he said.
“I have a lot of business in Pakistan so for me Dubai is a central hub, even more than London.”
Khan said he has plans to travel to the Emirates this week to explore the possibilities.
“I plan very much to open a Plaza in the UAE by 2020,” he said.
The United Arab Emirates is no stranger to debut flagships of the world’s biggest names, notably the Louvre Abu Dhabi.
Dubai has also sought to build its global brand, positioning itself as a major shipping and transit hub.
Situated on transcontinental air routes, Dubai airport was the world’s busiest for international passengers in 2017 for the fourth year running, with 88.2 million travelers.
The city-state, one of seven sheikhdoms that make up the energy-rich United Arab Emirates, aims to attract 20 million visitors annually by the time it hosts the global trade fair Expo 2020. — AFP

InstaPay platform ‘credit positive’ for PHL lenders

By Melissa Luz T. Lopez, Senior Reporter
OFFERING real-time digital payment services is credit positive for Philippine banks, Moody’s Investors Service said in a recent report, with the free flow of funds across lenders seen to trim operating costs and leave bigger bottom lines.
The global debt watcher said the InstaPay platform launched by banks and e-money issuers in the Philippines will boost the overall soundness of the local financial system.
Launched last month, InstaPay clears electronic fund transfers worth up to P50,000 per transaction and without a daily limit. The platform is available 24/7, with the funds to be made available to receivers almost immediately.
“The establishment of InstaPay is credit positive for the Philippine banking system because it will improve the retail payment efficiency for participating banks and help promote financial inclusion,” Moody’s said in its credit outlook published last week.
“[T]he banks’ weak cost efficiency limits their internal capital generation.”
Cost-to-income ratios of Philippine banks range from 50-75%, which Moody’s said is the highest compared to peers in Southeast Asia. High operating costs stem from setting up new bank branches to keep up with rapid growth in consumer lending.
Philippine banks spent P377.149 billion for their 2017 operations to generate a net profit worth P590.785 billion to post a 63.84% cost-to-income ratio, according to central bank data.
In particular, the credit rater pointed out that having the InstaPay service “reduces reliance on physical branches and ATMs (automated teller machines) to make transactions,” providing more convenient means for clients to access money at cheaper cost to financial firms.
As of April 23, seven banks are able to send and receive funds within seconds, while 11 other lenders and two e-wallet providers are equipped to receive interbank transfers via InstaPay.
“We expect the participating banks to realize cost savings as the new payment system’s penetration across the country increases. The banks can cut down on processing and branch operating costs as more transactions go through the digital channel,” Moody’s said.
InstaPay is also seen as a tool towards bringing more Filipinos into using formal financial channels and owning bank accounts, as digital transactions are easily accessible via mobile phones compared to the need to visit bank branches.
Only 34.5% of Filipino adults owned a bank account as of 2017, according to the latest Global Findex report. Around 41% of the unbanked segment cited distance to financial institutions as the main barrier to owning formal accounts.

BPI net income flat in Q1

BANK of the Philippine Islands’ income was steady in the first quarter. — BW FILE PHOTO

BANK OF THE Philippine Islands (BPI) saw steady income in the first quarter despite improved revenues due to higher expenses and lower trading gains.
In a disclosure on Monday, BPI said it booked P6.25 billion in net earnings in the January to March period, flat from the profit it recorded in the same period last year and 16.4% higher than the P5.37 billion logged in the last quarter of 2017.
The bank’s profit was mostly steady despite an improvement in its revenues due to increased expenses and a decline in trading gains.
BPI said its total revenues climbed 2.7% to P18.45 billion from the P17.96 billion booked last year.
Net interest income was P12.51 billion last quarter, up 8.9% versus the P11.49 billion in a comparable year-ago period.
The Ayala-led lender said interest expenses tempered the growth in its net interest income, partly due to “higher documentary stamp tax rates on deposits which increased the cost of funds by five basis points.”
Meanwhile, total loans stood at P1.21 trillion, 17.2% higher than the P1.03 trillion logged in the first quarter of 2017, driven by corporate loans.
Interest income from loans grew 18.4% year-on-year on the back of an improvement in yields.
Total deposits, on the other hand, reached P1.59 billion, up 10.4% from P1.44 trillion in the comparable year-ago period.
The bank’s current account and savings account ratio stood at 71.6%, while the total loan-to-deposit ratio was at 76.2%.
Its net interest margin widened by four basis points year-on-year, the bank said.
Non-interest income dropped 8.05% to P5.94 billion from the P6.46 billion logged last year due to lower income from trust and investment management fees, securities trading and asset sales.
BPI added that fees from credit cards, bank commissions, stock brokerage and foreign exchange trading were “higher” for the period.
The bank’s total assets grew 10.4% to P1.91 trillion at end-March from the P1.73 trillion seen a year ago.
Operating expenses rose 11.7% to P9.75 billion from P8.73 billion last year as the bank increased spending on technology. Likewise, manpower costs and premises were higher by 9% due to increased headcount and continued increase of microfinance branches.
BPI’s provision for loan losses last quarter declined 35.1% to P785 million as the bank adopted the expected credit loss models under the Philippine Financial Reporting Standards.
In asset quality terms, the bank’s nonperforming loans (NPL) ratio rose slightly to 1.32% from 1.29% in the previous quarter. Reserve cover ratio increased to 130.1% from 129.2% as of December 2017.
Cost-to-income ratio was at 52.8% last quarter, an improvement from 48.6% the previous year.
Return on equity was 13.5%, lower by 1.5 percentage points, while return on assets was 1.4%, lower by 0.11 percentage points compared with the figures logged in the first quarter of last year.
The lender’s capital adequacy ratio was at 13.55%, while its common equity Tier 1 ratio stood at 12.65%.
BPI President and Chief Executive Officer Cezar P. Consing attributed the flat earnings of the bank in the first quarter to “lower trading gains.”
“Trading gains in [the first quarter] were lower than in [the first quarter in 2017],” Mr. Consing told BusinessWorld in an e-mail. “However, overall results for Q1 2018 were in line with our expectations.”
BPI shares dropped 75 centavos or 0.76% to P97.60 each on Monday. — KANV

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