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Former lawyer of Reyes brothers shot dead

A LAWYER based in Puerto Princesa City, Palawan was shot dead by a motorcycle-riding assailant on Tuesday, Aug. 15. The victim, Hermie S. Aban, used to be the lawyer of former Palawan governor Mario Joel T. Reyes and his brother, former Coron mayor Mario T. Reyes, Jr. The Reyes brothers are the principal suspects in the murder of broadcaster and environmentalist Gerardo V. Ortega in January 2011. Mr. Aban was on a motorcycle when he was gunned down by the still unidentified perpetrator, according to a report by dzBB radio. The Reyes brothers left the country in March 2012, a few days before arrest warrants were issued against them. Back then, they were reported to have fled to Vietnam. In September 2015, the Royal Thai Police arrested the two brothers in Phuket, Thailand and deported days later to face trial. Mr. Reyes, Jr. even ran for re-election in Coron in the May 2016 election. — main report from interaksyon.com

North Korea leader holds off on Guam missile plan

SEOUL — North Korean leader Kim Jong-Un said Tuesday he would hold off on a planned missile strike near Guam, but warned the highly provocative move would go ahead in the event of further “reckless actions” by Washington.

Some analysts suggested Mr. Kim’s comments opened a possible path to de-escalating a growing crisis fueled by bellicose words between US President Donald J. Trump and the North Korean leadership.

Their recent exchanges were focused on a North Korean threat to fire a volley of four missiles over Japan towards the US territory of Guam, which hosts a number of strategic military bases.

The North’s official KCNA news agency said Mr. Kim was briefed on the “plan for an enveloping fire at Guam” during an inspection on Monday of the Strategic Force command in charge of the nuclear-armed state’s missile units.

But Mr. Kim said he would “watch a little more the foolish and stupid conduct of the Yankees” before executing any order.

If they “persist in their extremely dangerous reckless actions on the Korean peninsula,” then North Korea would take action “as already declared,” he was quoted as saying.

“In order to defuse the tensions and prevent the dangerous military conflict on the Korean peninsula, it is necessary for the US to make a proper option first,” he added.

‘DE-ESCALATING’
Mr. Kim’s remarks would appear to bring into play the large-scale military exercises held every year by South Korea and the United States that are expected to kick off later this month.

The North has always denounced the drills as provocative rehearsals for invasion and has in the past offered a moratorium on further nuclear and missile testing in exchange for their cancellation — a trade-off promoted by Pyongyang’s main ally China, but repeatedly rejected by Washington and Seoul.

Some analysts said Mr. Kim was seeking a similar quid-pro-quo this time around, using the Guam missile threat as leverage.

“This is a direct invitation to talk reciprocal constraints on exercises and missile launches,” said Adam Mount, senior fellow at the Center for American Progress.

John Delury of Yonsei University in Seoul said Mr. Kim was “de-escalating, putting Guam plan on ice” — at least for now.

“We are not out of the woods. Both sides need to keep taking steps to de-escalate in words and deed. Diplomacy needs to go in high gear,” he added.

The United States and South Korea insist their annual joint exercises are purely defensive, and cannot be linked to the North’s missile program, which violates a host of UN resolutions.

NO KOREAN WAR
Joshua Pollack, a senior research associate at the Middlebury Institute of International Studies at Monterey, said Pyongyang was using the Guam threat as “straight-up blackmail.”

The North Korean announcement prompted joy in Guam, where officials described themselves as “almost ecstatic that Kim Jong-Un has backed off.”

Tensions have been mounting since the North tested two intercontinental ballistic missiles last month, which appeared to bring much of the US within range.

Responding to the tests, Mr. Trump warned Pyongyang of “fire and fury like the world has never seen,” while the North responded with the plan to fire missiles close to Guam.

The standoff has sparked global alarm, with world leaders including Chinese President Xi Jinping urging calm on both sides.

South Korean President Moon Jae-In weighed in on Tuesday, saying Seoul would avoid a second Korean War at all costs.

“Military action on the Korean Peninsula can only be decided by the Republic of Korea and no one may decide to take military action without the consent of the Republic of Korea,” Moon said.

But he added there could be no dialogue before the North halts its “nuclear and missile provocations.”

Mr. Moon’s comments came after US Defense Secretary Jim Mattis and Secretary of State Rex Tillerson penned an opinion piece in the The Wall Street Journal insisting that America has “no interest” in regime change in Pyongyang.

“We do not seek an excuse to garrison US troops north of the Demilitarized Zone,” they wrote. “We have no desire to inflict harm on the long-suffering North Korean people, who are distinct from the hostile regime in Pyongyang.”

Messrs. Mattis and Tillerson called on China, which is North Korea’s main trading partner and ally, to take advantage of an “unparalleled opportunity” to assert its influence on Pyongyang, and bring its errant neighbor to heel. — AFP

Wilcon profit jumps on new stores

BETTER SALES from Wilcon Depot, Inc.’s existing and new stores helped push the company’s earnings 28% higher for the second quarter of 2017.

In a regulatory filing, the listed firm reported a net income of P372 million for the April to June period, against the P291 million it posted in the same period a year ago. The growth follows a 7% climb in net sales for the period which amounted to P4.29 billion. 

This pushed Wilcon Depot’s first-half net income to P763 million, on the back of net sales of P8.48 billion.

Existing stores contributed bulk of Wilcon’s revenues for the first half at 94.5% or P8 billion, while the four stores it opened from 2016 to 2017 brought in sales of P469 million.

The company also noted that same-store sales growth grew at a pace of 5.7%, slightly better than what was expected for the period.

“Wilcon is pushing to open more stores in the last quarter of the year. As the new stores continue to gain traction, and existing stores perform to expected results, hopefully the country’s growth momentum could continue until 2018,” Wilcon Chief Financial Officer Mark Andrew Y. Belo was quoted as saying in a statement. 

Wilcon was the first company to list its shares on the main board of the Philippine Stock Exchange in 2017, as it raised over P7 billion to fast-track its nationwide expansion plans. The company currently has a total of 38 stores across the country, with seven more expected to open before the year ends. It looks to add another five stores to its network in 2018, in order to reach their 2021 target of having 65 stores.

As of the end of June, the company has P6.08 billion left from the proceeds of the initial public offer.

On Tuesday, Wilcon shares added 49 centavos or 5.88% to close at P8.82 apiece. — Arra B. Francia

If Trump and Kim Jong-un unleash fire and fury

I was five years old when Gen. Douglas MacArthur made good his promise to return to the Philippines. I was, therefore, old enough to remember how my family and the residents of Tacloban coped with the Japanese occupation and the prospect of an American invasion.

I vividly remember the foxholes and the air raid shelters. The foxholes were pits dug along the streets of Tacloban, wide and deep enough for several people to dive into, in case of a bombing attack. The air raid shelters were reinforced bunkers under the houses.

I don’t recall ever having to duck into a foxhole, but I distinctly recall the first bombing raid by American P-38 fighter planes on the Tacloban airport and how my parents herded the entire family under the house and into the relative safety of our air raid shelter.

These recollections have been stirred by the exchange of incendiary language between President Donald Trump and North Korea’s Supreme Leader Kim Jong-un. The question that comes to mind is, what are the survival options in case of a nuclear attack on the San Francisco Bay Area, where my family and I live?

A study prepared by Michael Dillon, an atmospheric scientist at Lawrence Livermore National Laboratory in California, suggests that it is possible to survive such an attack. First of all, it is imperative to find shelter, best of all, a place protected by layers of concrete, such as the underground parking facility of an office building.

We are told that a nuclear explosion will generate “a fireball roughly a third of a mile wide with temperatures equal to the surface of the sun,” most buildings within half a mile would be knocked down and a “flash of thermal energy would burn exposed people within a mile of the detonation… Then, there would be deadly radiation. Debris from the explosion would be sucked upwards into a giant mushroom cloud and then carried downwind… Falling particles the size of grains of sands sprinkling down across the Bay Area would emit gamma rays that could give people severe radiation poisoning. The most dangerous zone would be 10 to 20 miles downwind of the explosion, while some fallout could occur 100 miles away or farther, depending on the magnitude of the explosion. (Communities upwind and far enough away from the explosion would escape relatively unharmed.)”

According to a side comment on Dillon’s paper, “If you spend too much time outside in the fallout, you’re toast.”

But still, it’s good news that survival is possible, as long as there are adequate preparations. The bad news is that, as of now, I am not aware of any such preparations on the part of the US government — except the contingency plans to ensure the survival of the leaders of the country and the continued operations of government.

At the height of the Cold War, many American households actually built basement bunkers, in case of a nuclear attack. This was parodied in the film, Blast from the Past, starring Brendan Fraser and Christopher Walken. It was about a family so paranoid over a nuclear war that it prematurely retreated to a radiation-proof shelter with ample provisions, remaining in it for years and not realizing that the war never came.

In the Philippines, in the late ’50s, there was an office of Civil Defense, with quarters under the Luneta grandstand. At best, however, the office could only broadcast a warning to the general population in case of an emergency. The same warning system is also in place in the US, usually raising the red flag concerning impending natural disasters. But the country’s emergency response system could not even cope with the destruction wreaked by hurricane Katrina.

But to go back to the possibility that Kim Jong-un and Trump will exchange “fire and fury” with their “locked and loaded” weaponry: It is estimated that a missile fired from Pyongyang will hit Guam in 14 minutes. Guam is 2,131 miles away. That’s less than half the distance from North Korea to San Francisco, which is 5,626 miles. That means, we Bay Area residents will have a little over 30 minutes to find a basement parking facility.

But what are the chances of San Francisco becoming ground zero for a nuclear attack? According to the usual optimists, it’s not likely to happen. Even assuming that Kim Jong-un sends missiles flying in the direction of California, these would be shot down with the US military’s THAAD (Terminal High Altitude Area Defense) system, or with the Aegis ballistic missile defense system mounted on US destroyers, before the missiles re-enter the earth’s atmosphere. In fact, Guam is also equipped with its own THAAD system which is designed to intercept multiple missiles simultaneously.

What Pyongyang’s military has reportedly threatened to do, to quote it verbatim, is “the simultaneous fire of four Hwasong-12 (rockets)” at Guam to inflict “enveloping fire” on the island. But this may be in response to a preemptive strike by the US on North Korea. Otherwise, North Korea seems to be planning to just “miss” Guam by several miles and scare the wits off the islanders.

On the other hand, the Trump government has indicated that it will “seriously consider” shooting down any North Korean missiles tested in the vicinity of Guam, even if not necessarily targeting the island.

That could be construed by Kim Jong-un as a US preemptive strike and could trigger his counter-attack.

As cold-bloodied as it may seem, Trump and the US military command could be playing a numbers game. California, with a population of 39-plus million (the most populous US mainland territory closest to North Korea), and even Hawaii, with its 1.5 million islanders, will likely be defended more aggressively than Guam, which only has 175,000 inhabitants.

Guam could become the equivalent of a “loss leader” (to use a marketing term) — enabling the US to unleash its military might and destroy much of North Korea’s nuclear capability. But not all. It is assumed that the North Koreans have substantial striking power hidden in underground silos, much of it aimed at Seoul.

Although Seoul has its own THAAD missile defense system, that may not be enough to intercept what is expected to be a rain of rockets from the north. The bottom line is that Seoul, with a population of 24 million or nearly half of South Korea’s 51.25 million (along with 28,500 US troops), would be devastated.

Kim Jong-un, with his braggadocio, may be willing to sacrifice his people for his greater glory, and that of his father and grandfather. Pyongyang’s population of 2.5 million is just one-tenth of Seoul’s and North Korea’s total population of 25-plus million is just a million more than that of the South Korean capital.

And what about Donald Trump? Who knows what he will do in this deadly game of chess? After all the bluster about “fire and fury” and about being “locked and loaded,” he may decide to make Guam a pawn, in order to destroy North Korea. Trump might even consider Seoul a price worth paying, to wipe Kim Jong-un and his ilk off the face of the earth.

What about the Philippines? Any chance of Manila becoming a target of North Korea? It’s not likely. And for this, President Rodrigo Duterte may be patting himself on the back. He has acted belligerently towards the US, without cutting off ties, while cuddling up to China and welcoming both North and South Korea at the recent ASEAN conference in Manila.

At any rate, thank heavens for that. Metro Manila is only 1,820 miles from North Korea — or closer than Guam is — which means that a missile would reach the Luneta in less than 14 minutes. The buildings with basement parking are mainly in Makati City which is less than 10 miles away from my home in Parañaque — but from one to two hours by car, using South Expressway.

Theoretically, taking the Skyway would be faster, but getting onto it from either Sucat or Bicutan and getting off it at the Magallanes, Don Bosco, or Pasay Road exits could guarantee being barbecued in the car.

I think the best option for survival is to pray.

Greg B. Macabenta is an advertising and communications man shuttling between San Francisco and Manila and providing unique insights on issues from both perspectives.

gregmacabenta@hotmail.com

PEZA approves clearance for Davao South Marina and Industrial Park

DAVAO CITY — The Philippine Economic Zone Authority (PEZA) has released the pre-qualification clearance for the 1,000-hectare (ha) Davao South Marina and Industrial Park, located in Malita, Davao Occidental.

Department of Trade and Industry-Davao Occidental Provincial Director Eulogio C. Orevillo said the agency has received the official communication on the clearance from the Provincial Economic Enterprise and Investment Promotion Office.

“PEZA approved in March the pre-qualification clearance… which means that the PEZA registration of the park can now proceed,” Mr. Orevillo told Businessworld.

The Davao South Marina and Industrial Park, where the 600-megawatt (MW) coal-fired power plant of SMC Global Power Holdings Corp., a unit of San Miguel Corp., is located, will have leisure facilities, hotels, a marina and a yacht club as well as an industrial zone.

The park is designed for possible expansion from the initial 1,000 ha to 3,000 ha.

Mr. Orevillo said several companies have expressed interest to locate in the economic zone (ecozone), including those involved in shipbuilding and manufacturing.

“What makes the zone attractive to investors is the presence of the coal power plant to assure them of the supply of power, and the openness of the local government unit to welcome investors in Sta. Maria and Malita,” he said.

Malita is the capital of the newly-formed Davao Occidental while neighboring Sta. Maria is also being considered for an economic zone. Both municipalities are on the coast.

The province has programmed another ecozone, the Davao South Greenspace Eco-Industrial Park in a 450-ha area in Sta. Cruz, currently home to a San Miguel brewery, a Seaoil Philippines, Inc. oil storage facility, processing plants of agriculture firm Franklin Baker Co. of the Philippines, and part of the 300-MW coal-fired power plant of Therma South, Inc., a subsidiary of Aboitiz Power Corp.

Municipal and provincial officials are currently working on the province’s investment code to attract locators. — Maya M. Padillo

NLEX Road Warriors doing ‘reality check’ as it moves within striking distance of playoff berth

THE NLEX Road Warriors have no plans of sliding down the upper half of the standings of the season-ending PBA Governors’ Cup.

NLEX Road Warriors doing ‘reality check’ as it moves within striking distance of playoff berth
NLEX coach and general manager Yeng Guiao is cherishing team’s solid performance in the Governors’ Cup. — REY JOBLE

After suffering their first loss in the tournament at the hands of the defending champions Barangay Ginebra Gin Kings, the Road Warriors bounced back strong and beat a contender — last season’s runner-up Meralco.

Beating Meralco, according to head coach Yeng Guiao, means they were able to pass a difficult test, something which they can build on for the games to come.

“Meralco is a good test actually. It is really a good team. We passed a difficult test,” Mr. Guiao said.

Beating the no. 1 defensive team wasn’t easy but Mr. Guiao and his squad were able to find solutions in cracking down tournament’s best stopper.

The Road Warriors aggressively went to the basket and made the Bolts defense pay.

“That was really another of our problem during the Ginebra game. We were just off offensively. I was asking the guys to take the regular shots, be confident with their execution. As good as the Meralco defense is, we were able to execute. We were able to execute actually. We were getting it to the basket. We we’re getting it to the free throws. I guess the secret to playing a good defense is keep attacking it.”

The win was fifth in six games for the Road Warriors, who climbed their way to solo second place after seeing their four-game winning streak snapped by the Gin Kings.

The win also put NLEX on the verge’s still kinda surreal, around the top of the standings, beating a team like Meralco with the best import. We’re still trying to do a reality check. We’ll see.” — Rey Joble

Art, or just a bunch of, er, balloons?

LONDON – Art is well known for its power to move people, but a new installation in London can move itself – it comprises a series of autonomous floating spheres, that interact with visitors and the space on their own.

The installation – +/- Human in London’s Roundhouse – is a collaboration between choreographer Wayne McGregor and art group Random International.

Several drones – floating balloons with small propeller motors attached – are fitted with a motion tracking system to allows them to identify and interact with visitors.

“We wanted to make a piece which was a piece related to autonomous objects and live bodies,” McGregor told Reuters.

“I love that relationship between body and machine, I love that between intelligences, I love it between this notion of what is autonomy and how wide can we have a sense of autonomy nowadays,” he added.

The spheres’ motion tracking system looks for a person to interact with, and allows the drone to find a pathway to reach that person. If the person moves, it reacts, and will interact with them until deciding to move on.

“In basic terms, it really is a kind of attraction and repulsion,” McGregor said. – Reuters

CARD SME Bank opens 2nd Mindanao branch

CARD SME Bank, the thrift bank unit of Center for Agriculture and Rural Development Mutually Reinforcing Institutions (CARD MRI) that focuses on small and medium enterprise (SME), has set up its second branch in Mindanao, located in Zamboanga City. In a press statement, the bank said it “aims to make its products and services accessible to more individuals and families who want to start their own business or expand an existing one.” The first CARD SME Bank in the south is in General Santos City. It has 22 branches nationwide, with its main office in San Pablo,Laguna. Early this year, the microfinance unit of the group, CARD Bank, Inc., opened its 11th branch in Mindanao. Flordeliza L. Sarmiento, CARD Bank, Inc. managing director, said the opening of the new branch was part of the plan of the company to expand its operations. “We already mapped areas to where we will expand our operations. These include the unbanked rural areas and island towns in the country,” said Ms. Sarmiento, noting that they are targeting to serve eight million clients this year and increase it to 40 million by 2020. — Carmelito Q. Francisco

Guam officials ‘ecstatic’ as North Korea holds off attack

HAGATNA — Guam officials were “ecstatic” Tuesday as North Korea appeared to back away from its threat to fire four missiles towards the US territory in the western Pacific.

“There doesn’t appear to be any indication, based on what we’re hearing, that there will be any missiles attacking in the near future or in the distant future,” Lieutenant Governor Ray Tonorio said.

Guam Homeland Security adviser George Charfauros dismissed reports that satellite images showed North Korea moving a missile into place for a possible launch, saying it was likely “just a ruse.”

“It is their Liberation Day… North Korea tends to use symbolism as part of their decision making,” he said after CNN reported on the US spy satellite pictures.

“We are almost ecstatic that Kim Jong Un has backed off,” he added.

Pyongyang’s official Korean Central News Agency reported that Mr. Kim had examined plans to fire missiles near Guam, but made no move towards an immediate strike.

Instead he hinted he would hold off, saying he would “watch a little more the foolish and stupid conduct of the Yankees spending a hard time of every minute of their miserable lot.”

FALSE ALARM
As Guam residents waited anxiously for the deadline, they were woken just after midnight Tuesday by a “civil danger warning” that was accidentally broadcast by a radio station.

A statement from the Guam Homeland Security and Civil Defense office said the “unauthorized test was not connected to any emergency, threat or warning” and it was working to ensure “human error will not occur again.”

Mr. Tonorio said Mr. Kim appeared to have “calmed down” some of his rhetoric. “We’re happy that he has taken a look at their plans and will be holding off on, at least it appears, the imminent threats to Guam,” he said.

“At this point, our government is operating, our tourism is continuing to grow, there have been no major changes in our forecast.”

Guam’s citizens have been stoic through the crisis, with many saying they fear the looming typhoon season more than aggression from North Korea which has threatened the island several times in recent years.

“It doesn’t change the way I feel. At the height of the threats, I was not worried. I have faith in the Lord,” 58-year-old accountant Adoracion Manibusan said after Pyongyang took a step back from the brink.

“Besides, there is really nothing we can do if we get attacked. There’s no place to hide,” she said.

Despite the cooler language from North Korea, Mr. Tonorio said there was no change to the threat level in Guam, which is home to two large US military installations and more than 6,000 military personnel.

“I think the rhetoric is one thing but if we have any belief, as a country or as an island, that there is going to be a threat, we are going to be prepared. We are going to be ready for it,” he said. — AFP

Dashboard (08/16/17)

Isuzu holds ‘Big Meet’ for enthusiasts

Isuzu holds ‘Big Meet’ for enthusiasts

CAR clubs Team Isuzu Pilipinas, Team Isuzu Car Enthusiast and mu-X Owners Philippines recently gathered at a Quezon City venue for an event organized by Isuzu Philippines Corp. (IPC).

Dubbed as “Isuzu Big Meet,” the activity held to “promote camaraderie between Isuzu vehicle owners” and to record the “biggest gathering of Isuzu club members in one place,” IPC said. It added more than 300 Isuzu owners came with their vehicles, composed of the Crosswind AUV, D-Max pickup and mu-X SUV. Owners of past Isuzu models like the Hi-Lander, Fuego pickup and Alterra SUV also joined.

During the event IPC said it held its first competition for stock and modified Isuzu vehicles, which vied for Best AUV, Best Pickup and Best SUV titles. The modified vehicles competed in the Best Engine Set-up, Best Sound/Entertainment System Set-up and Best 4×4 Vehicle Set-up awards.

IPC bared the winners are Victor Candelaria (Best AUV), Roman Remo (Best Pickup), JT Lerma (Best SUV), Ivan De Castro (Best Engine Set-up), Deni Von Amatorio (Best Sound/Entertainment) and Vic Makimkim (Best 4×4 Setup). Alex Cabungal and Chito Villanueva were also cited for bringing the oldest Isuzu — a 1976 Gemini — and the highest-mileage vehicle — a Hi-Lander with 998,628 kilometers — respectively, at the event.


Hyundai sales in July grow 21%

SALES of Hyundai vehicles in July were 21% higher compared to the same month in 2016, a result of “improvements [gained] in product availability,” the brand’s official distributor in the Philippines said.

In a statement, Hyundai Asia Resources, Inc. (HARI) said it sold 3,594 units in July, and 20,960 units for the first seven months of the year — an 8% growth from last year’s 19,336-vehicle total for the same period. The company credited its July performance to sales of passenger cars, which rose 12%, or 2,564 units. Of the total, the Hyundai Accent accounted for 45%, or 1,608 units.

HARI said deliveries of light commercial vehicles reached 1,030 units in July, a 52% spike compared to last year’s comparable month. The Hyundai H-100 led the segment with 287 units sold.


BYD introduces 5-year maintenance program

THE distributor of BYD vehicles in the Philippines announced it has launched its five-year preventive maintenance program (PMS).

Solar Transport and Automotive Resources Corp. (STAR Corp.) said the PMS program comes alongside a five-year warranty coverage, and is available for free to buyers of the all-new BYD S1 and BYD S7 — provided the purchases are from July 29 onwards. BYD customers who bought their vehicles earlier can avail of the PMS program for a fee if P80,000 (for the BYD F0), or P100,000 (for the BYD S6 and S7).

BYD explained the S7 is a seven-seat luxury SUV that’s equipped with a panoramic sunroof and a 360-degree camera while the S1 is a compact SUV that offers advanced technologies.

Mark Andrew Tieng, managing director of STAR Corp., said that included in PMS program are free parts, such as oil filters, drain plugs washers and gaskets, as well as four liters of regular engine oil and brake cleaner.

Philippine agriculture performance

FARM OUTPUT last quarter turned around from a year-ago decline, growing faster than January-March’s expansion due to the past year’s low base, the Philippine Statistics Authority (PSA) reported on Tuesday ahead of its gross domestic product (GDP) report tomorrow. Read the full story.

UnionBank to meet BSP deadline for EMV shift

UNION BANK of the Philippines (UnionBank) said it will meet the central bank’s June 30, 2018 deadline to become fully compliant with the Europay, Mastercard and Visa (EMV) standard, even as it noted challenges in the migration process.

“Yes…we believe we can do that. We’re building momentum on that,” UnionBank Senior Vice- President and Head of Retail Product Development Ramon G. Duarte told BusinessWorld in an interview when asked if the bank can fully migrate to the EMV platform by end-June 2018.

Initially, card-issuing entities had to fully shift to the EMV standard by Jan. 1, as said under the Bangko Sentral ng Pilipinas (BSP) Circular 859 issued in 2014. But after most banks were unable to complete the shift to the technology as 2017 started, the central bank last June gave lenders an extension of up to June 30, 2018 to comply with the requirement.

Banks would have to face a penalty should they fail to meet the deadline by end-June next year, according to BSP Governor Nestor A. Espenilla, Jr.

“That’s (shifting to EMV technology) a big challenge. I think that’s a challenge for the entire industry. There are some other banks there with larger card bases than we have so doing the full replacement of the EMV is a big challenge,” Mr. Duarte said.

“We think we can make it… we’re comfortable we can make it,” Mr. Duarte said.

The BSP chief had also said they are positive banks would be able to meet the deadline, with the central bank unlikely to grant another extension.

“But we’re working with the BSP, we have constant updates to them. They require us to report our progress, which we do, and we can see that we’re moving… We can see [that] the whole industry is moving,” Mr. Duarte said. “It’s a painful process, but a necessary one.”

EMV technology makes use of microchips rather than the traditional magnetic strip found at the back of cards, which are prone to skimming, usually done by illegally tapping into automated teller machine (ATM) terminals to steal client data. As a result, EMV — an international standard — makes depositors and credit card holders “more secure” against fraud.

UnionBank booked a P2.15-billion net income in the second quarter, down 6.85% from the P2.31 billion recorded in the same period last year and 2.71% lower than the P2.21 billion seen in the first three months of the year.

This brought its earnings for the first half to P4.4 billion, still 11% up from the P3.9 billion posted in the same period in 2016.

Its total assets as of June were at P553 billion, while its loans and deposits were at P265 billion and P434 billion, respectively.

Shares in UnionBank lost five centavos or 0.06% to close at P86.35 apiece on Tuesday. — Janine Marie D. Soliman

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