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Domestic coal sales pull Semirara Q2 income to P10.19B

SEMIRARA Mining and Power Corp. (SMPC) on Monday reported a second-quarter attributable net income of P10.19 billion, which is 5.5% lower than the P10.78 billion net income reported a year ago.

The decrease was attributed to reduced domestic coal sales, SMPC said in its second-quarter financial performance report.

Meanwhile, the company’s consolidated revenues for the April-to-June period expanded by 4%, reaching P23.87 billion from P22.95 billion the previous year.

During the second quarter, SMPC recorded a combined coal shipment of 4.5 million metric tons (MMT), marking a 21.6% increase compared to the 3.7 MMT of the previous year.

This growth was driven by higher volume deliveries to China and South Korea, the company said.

Shipments to China surged by 75% to 1.4 MMT from 0.8 MMT, while shipments to South Korea rose by 25% to 1 MMT from 0.8 MMT.

Despite a 14% rise in sales, domestic sales remained stagnant at 1.9 MMT due to reduced demand from cement factories and other industrial plants, according to the company.

In the second quarter, Semirara’s average coal selling price dropped by 23.1% to P4,151 per metric ton from its previous all-time high of P5,399 per metric ton.

Total production declined by 11.8% to 3 MMT from 3.4 MMT, which the company attributed to the onset of rains and ongoing stripping activities in Molave South Block 6 and Narra Block 1.

SMPC’s combined inventory increased by 12% to 2.8 MMT from 2.5 MMT due to steady production and weaker domestic sales. Year-to-date, inventory climbed by 40% to 2.8 MMT from 2 MMT.

In terms of power revenues, the second quarter saw a 43.4% increase to P6.91 billion from P4.82 billion the previous year.

The company’s overall plant availability improved to 80% from 64%, driven by enhanced availability of SEM-Calaca Power Corp.’s (SCPC) Unit 2. SCPC’s unit’s commercial operation last year boosted the total average capacity by 34.6% to 685 megawatts (MW) from 509 MW.

Total power gross generation rose by 26.7% to 1,212 gigawatt-hours (GWh) from 956 GWh, leading to a 21.8% increase in power sales to 1,097 GWh from 900 GWh.

Out of the total gross power generation, 66% was sold to the spot market.

For the second quarter, SMPC also reported a 42% rise in spot market sales to 720 GWh from 507 GWh, while the company’s bilateral contract sales contracted by 4.1% to 377 GWh from 393 GWh.

Maria Cristina C. Gotianun, SMPC’s president and chief operating officer, acknowledged that the second half of the year might present challenges due to the rainy season and planned shutdowns, but she expressed confidence in the company’s ability to navigate these obstacles given its high starting inventory and strategic focus on the spot market.

For the January-to-June period, the company’s attributable net income fell by 25.5% to P19.21 billion from P25.80 billion a year ago, as coal indices began to normalize.

Throughout the first half of the year, the average Newcastle coal price declined from $320.3 to $148, according to the company.

For the first six months, SMPC’s consolidated revenues decreased by 14.3% to P44.57 billion from P52.01 billion.

Ms. Gotianun said that despite lower coal prices, the company achieved strong first-half results due to increased coal demand in China and improved performance from its SCPC Unit 2.

On Monday, shares in the company rose by 55 centavos or 1.88% to close at P29.75 apiece. — Ashley Erika O. Jose

The Filipino youth cries out

Pelikulove presents the Shoutout film anthology

FIVE STORIES spanning the youth’s unfiltered social, political, and personal sensibilities make up Shoutout Pinas 2022, which will be shown at this year’s Cinemalaya Independent Film Festival.

Strung together into an anthology, the resulting exhibition film will be shown on Aug. 10 at Cinema Bonifacio at the Philippine International Convention Center (PICC), where Cinemalaya is taking place this year.

“I am thrilled because, from shorts, the set of film and theater works are now a full-length film that can reach and impact more [people],” said filmmaker Ellen Ongkeko Marfil, the founder and creative head of online multi-arts platform Pelikulove, at the special screening of the anthology on Aug. 3.

Last year, the writers of the various works underwent Pelikulove’s virtual mentoring workshops, led by revered masters — screenwriter Ricky Lee, playwright Rody Vera, theater director Issa Manalo Lopez, filmmaker Jeffrey Jeturian, theater director Raffy Tejada, and Ms. Marfil herself.

The mix of new writers with established directors and acting troupes made for a bold combination of film and theater perspectives, displaying onscreen facets of Philippine history, corruption, social media, clashing ideologies, and the youth’s often overwhelmed yet strong fighting spirit.

Under the theme “Maghayag at Lumikha,” the five works emerged as such:

How to Make an Effective Campaign Ad

Directed by Roman Perez, Jr. and written by Quiel Dela Cruz

A sinister story about two ad-makers working for an imprisoned politician, played by Soliman Cruz. It follows the two youths’ efforts to film the incarcerated man for an ad for his bid to run for public office. Eventually, it takes a turn for the worse after a well-crafted buildup in the universe of the prison where the politician reigns supreme.

No Trespassing

Directed by Julius Dela Peña and Dada Grifon and written by Ms. Grifon

The film, based on Ms. Grifon’s own experience immersing herself in the farmlands as part of a non-government organization, follows two media professionals filming the plight of farmers. As they are under threat of violence from corrupt authorities, the two leads grapple with their ability to do something about the horrific, heartbreaking situation.

When A Manananggal Loves A Man

Directed by Niel Arkhe Azcuna and written by Raymund Barcelon

Arguably the heart of the anthology, this Gen Z-centered story tells of the love between a young manananggal (a mythical Filipino monster) and an ex-thief from Tondo. It cleverly portrays feelings of being trapped by older, traditional systems as the two lovers are kept from each other. Of all the works, it is the most hopeful.

Libro For Ransom

Directed by Gab Hernandez and written by Ralph Morales

The title says it all: the film follows TV journalists researching the time Jose Rizal’s original manuscripts were stolen for ransom in 1961. It shows the potential of social media platforms in the modern-day landscape where fake news and short attention spans threaten the value of history.

Quarantine 5

Directed by Sari Saysay and written by Andrew Estacio

This final work in the anthology is the most upfront about its depiction of the youth’s state of mind. It follows a group of friends who try to reconnect during the pandemic via video chat. As they uncover the growing rifts among them and the wildly varying struggles they face in a highly fragmented world, they try to keep their group together.

Festival director Ms. Marfil likened the Shoutout Pinas anthology to the president’s recent State of the Nation Address: “This is ‘SONY’ — the state of the nation’s youth.”

Tickets for the Aug. 10 screening at Cinemalaya are available via Ticketworld. For more information on Pelikulove, visit www.pelikulove.com or follow Pelikulove’s official Facebook Page. — Brontë H. Lacsamana

On the road to recovery (Part 2): Condominium market shows signs of rebound

REUTERS

By Joey Roi Bondoc

Editor’s note: This is the second of a two-part column on Metro Manila’s condominium market. First part can be viewed here: https://t.ly/JR9DO

CAPITAL APPRECIATION POTENTIAL
Colliers Philippines believes that the investor market in Metro Manila continues to rely on condominium units’ capital appreciation potential. In our view, developers should be aggressive in highlighting the residential segment’s viability as a potential hedge against inflation.

Vertical units that are located in integrated communities and near public infrastructure projects also have great capital appreciation potential and these features should be among investors’ key considerations when acquiring a condominium unit.

PROJECTS OUTSIDE M. MANILA
Colliers has observed steady demand for house-and-lot and lot-only projects in key areas outside of Metro Manila, including Pampanga, Cavite, Laguna, and Batangas.

For Pampanga and Bulacan, we recorded about 7,200 house-and-lot and lot-only units sold in 2022, up 3% year on year. Meanwhile, we saw the average take-up for horizontal projects in the Cavite-Laguna-Batangas corridor reaching 18,700 units by end-2022, up 2% year on year.

Colliers believes that developers will continue to venture into horizontal residential projects outside of Metro Manila where demand primarily comes from end-user buyers and take-up is partly fueled by households receiving remittances from Filipinos working abroad.

Among the developers that are set to launch massive horizontal projects outside the capital region include Rockwell with its 85-hectare beach property in Lian, Batangas and a 100-hectare horizontal residential project in San Jose del Monte, Bulacan. Century Properties also disclosed that it is planning to launch two new projects under the Phirst Park Homes brand in Lipa, Batangas and Laguna in the third quarter of 2023. Meanwhile, Cebu Landmasters has also announced its plan of launching horizontal projects in Southern Luzon particularly in Naga, Batangas and Cavite. The firm is also reportedly looking at Central Luzon for future expansion.

COMPLETION TO RECOVER
Only one condominium project was completed in the second quarter of 2023: Alveo Land’s Park Triangle Residences in Fort Bonifacio added 616 units to Metro Manila’s condominium stock.

We expect completion to slightly pick up in the second half with the delivery of 3,100 units, bringing total completion to 4,920 units for 2023. By end-2023, we see Metro Manila’s condominium stock reaching more than 156,000 units, with the Bay Area, Makati central business district, and Fort Bonifacio accounting for about two-thirds of total completed units in the capital region.

Investors are also looking closely at Fort Bonifacio as it will dominate other business districts in terms of supply in 2024.

PRE-SELLING DEMAND IMPROVES
Colliers recorded the take-up of 15,200 condominium units in the Metro Manila pre-selling market in the first half, up 52% year on year. The lower and upper mid-income segments (P3.2 million to P12 million) accounted for 70% of condominiums sold during the period. Pasig City, Bay Area, and the Alabang-Las Piñas and Camanava (Caloocan-Malabon-Navotas-Valenzuela) covered 50% of units taken up from the lower and upper mid-income price segments.

Among the notable vertical projects launched in the second quarter include Ayala Land’s Park East Place in Fort Bonifacio, as well as Laya by Shang Properties and Olin at Jade Drive by Ortigas Land, both of which are located in Pasig City.

In our view, pre-selling residential demand will likely be supported by improving business and consumer sentiments, as well as stabilizing interest rates. The Bangko Sentral ng Pilipinas’ (BSP) latest Consumer Expectations Survey showed that the share of households planning to purchase real estate marginally rose to 4.7% in Q2 2023 from 4.6% a quarter ago. Meanwhile, its second quarter 2023 Business Expectations poll results show that the business outlook improved to 41.9% from 36.0% in the first quarter of 2023.

RENTS AND PRICES UP
In the second quarter, Colliers recorded a marginal decline in residential vacancy  rate to 17.2% from 17.4% in the prior quarter. Vacancy rates improved across all sublocations including the Bay Area, where vacancy reached as high as 26.0% in 2021.

We forecast vacancy rates to decline by end-2023 due to slower condominium completion and continued improvement in residential leasing particularly from returning expatriates in the country. 

Colliers has observed expat residential leasing picking up in Makati central business district, Ortigas Center, and Fort Bonifacio with demand led by those working for BPOs, shared service centers, multilateral aid agencies, as well as logistics and manufacturing industries. This is reflective of the marginal rental recovery in the second quarter of 2023 where we recorded a 1.0% growth in rents, slightly faster than the 0.5% increase in prices.

Colliers believes that vacancy in the secondary market will likely remain elevated in 2024 given the substantial completion of new units. We see this putting a downward pressure on rents especially in the Bay Area, which will likely account for 27% of completed units by end-2024.

NOWHERE TO GO BUT UP
Colliers Philippines is more upbeat this year. We are seeing recovery in key property sectors such as office, retail, industrial, and hotel. We believe that the residential segment will not be left behind. 

The country’s macroeconomic fundamentals remain sound and this should pave the way for a more dynamic property sector over the near to medium term. Investors are on the lookout for more properties to acquire and developers will definitely cash in on this demand. We’ve heard of revenge dining and spending.

Now is the time for revenge investing.

 

Joey Roi Bondoc is the research director at Colliers Philippines.

SM Prime posts 49% surge in Q2 net income

SY-led SM Prime Holdings, Inc. on Monday reported a consolidated net income of P10 billion for the second quarter, a 49% increase from P6.7 billion previously, driven by higher revenues.

In a regulatory filing, the company said that consolidated revenues for the three-month period rose by 39% to P31.2 billion from P22.5 billion last year.

The company’s Philippine malls business revenue saw a 30% growth during the quarter, reaching P16.1 billion, compared to the previous year’s P12.4 billion.

Likewise, its primary residential business, spearheaded by SM Development Corp. (SMDC), achieved substantial progress, surging by 82% to P9.9 billion from the prior year’s P5.4 billion.

Meanwhile, for the first half of the year, the company’s consolidated net income increased by 38% to P19.4 billion from P14.1 billion the previous year, as revenues rose by 29% to P59.9 billion from P46.3 billion year on year.

“The strong performance of SM Prime’s main business units in the first half of 2023, led by its malls and primary residences, amplifies its commitment to be a driver of growth in the local property industry,” said SM Prime President Jeffrey C. Lim said in a statement.

“We will continue to be strategic in expanding our footprints and operations across different localities where we can continue to be partners for growth and progress,” Mr. Lim added.

For the six-month period, the company’s local mall business registered a 53% surge in revenues, reaching P31.5 billion from P20.6 billion. This accounted for 53% of its consolidated revenues.

SM Prime’s rental income increased by 42% to P26.3 billion from P18.6 billion, driven by ongoing enhancements in tenant sales and foot traffic.

The company’s local cinema, ticket sales, and other revenues more than doubled to P5.2 billion in the first half from the previous year’s P2 billion.

Revenues from its China mall business experienced a slight uptick to 398 million renminbi (RMB), marking a 3.4% increase from the previous year’s 385 million RMB.

SMDC’s top line for the first semester reached P17.6 billion, with reservation sales growing by 15% to P68.5 million from P59.4 million in the previous year.

“This translates to a 17% growth in unit sales in 1H 2023. The improving market condition provided local and overseas Filipino buyers the capacity to invest in SM Prime’s residential projects,” the company said.

Moreover, the company’s other segments, encompassing offices, hotels, and convention centers, achieved a 40% growth in revenue, reaching P6.2 billion from last year’s P4.5 billion.

“We maintain a positive outlook on the company’s full-year 2023 results, given the improving market condition. SM Prime will also continue to explore new and sustainable ways of reaching our customers and delivering unparalleled experience and value in our developments,” Mr. Lim said. — Adrian H. Halili

Gov’t partially awards T-bill offer

BW FILE PHOTO

THE GOVERNMENT made a partial award of the Treasury bills (T-bills) it offered on Monday with higher rates across the board as US Treasury yields rose last week after Fitch Ratings downgraded the United States’ credit rating.

The Bureau of the Treasury (BTr) raised just P11.75 billion via the T-bills it auctioned off on Monday, short of the P15-billion program, even as total bids reached P38.062 billion or more than two times the amount on the auction block.

Broken down, the Treasury awarded P3.6 billion in 91-day T-bills out of the P5-billion program even as tenders for the tenor reached P17.509 billion. The three-month paper was quoted at an average rate of 5.598%, 37.4 basis points (bps) above the 5.224% seen last week, with accepted rates ranging from 5.573% to 5.615%.

The government likewise raised just P3.15 billion from the 182-day securities out of the planned P5 billion despite bids reaching P10.82 billion. The average rate for the six-month T-bill was at 5.99%, rising by 20.1 bps from the 5.789% seen last week, with accepted rates at 5.95% to 5.998%.

Meanwhile, the BTr borrowed P5 billion as programmed via the 364-day debt papers as demand reached P9.733 billion. The average rate of the one-year T-bill went up by 8.4 bps to 6.294% from the 6.21% quoted last week. Accepted yields were from 6.15% to 6.325%.

At the secondary market before Monday’s auction, the 91-, 182- and 364-day T-bills were quoted at 5.7015%, 5.9234%, and 6.1975%, respectively, based on PHP Bloomberg Valuation Reference Rates data provided by the Treasury.

“Results were mixed in today’s Treasury bills (T-bills) auction as the Auction Committee decided to fully award bids for the 364-day T-bills while partially awarding the 91- and 182-day securities. The 364-day T-bills fetched an average rate of 6.294% while the 91- and 182-day securities were capped at 5.598% and 5.990%, respectively,” the BTr said in a statement on Monday.

“The auction was 2.5 times oversubscribed, with total tenders reaching P38.1 billion. With its decision, the Committee raised P11.8 billion of the P15-billion offering,” it added.

The government partially awarded the T-bills as the papers fetched higher yields, reflecting “the impact of the latest downgrade in the US sovereign credit rating by Fitch,” a trader said in an e-mail.

Yields, which move inversely to bond prices, spiked last week following Fitch’s downgrade and on the prospect of a flood of Treasury supply in the third quarter, Reuters reported.

The benchmark 10-year yield fell sharply after Friday’s jobs report but remained above 4%, a level last seen in November 2022.

Fitch last week downgraded the US government’s top credit rating, a move that drew an angry response from the White House and surprised investors, coming despite the resolution of the debt ceiling crisis two months ago.

Fitch downgraded the United States to “AA+” from “AAA,” citing fiscal deterioration over the next three years and repeated down-the-wire debt ceiling negotiations that threaten the government’s ability to pay its bills.

The increase in T-bill yields came due to higher global crude oil prices and a weaker peso recently, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices edged down on Monday but were still near their highest levels since mid-April after top producers Saudi Arabia and Russia pledged to keep supplies down for another month to tighten global markets further and support prices.

Brent crude futures slipped by 15 cents or 0.2% to $86.09 a barrel by 0640 GMT, while US West Texas Intermediate crude was at $82.67 a barrel, down 15 cents, or 0.2%.

On Tuesday, the BTr will offer P30 billion in reissued seven-year Treasury bonds (T-bonds) with a remaining life of six years and two months.

The Treasury wants to raise P225 billion from the domestic market this month, or P75 billion via T-bills and P150 billion via T-bonds.

The government borrows from local and foreign sources to help fund its budget deficit, which is capped at 6.1% of gross domestic product this year. — A.M.C. Sy with Reuters

Barbie ticket sales top $1 billion

THE BLOCKBUSTER film Barbie has topped $1 billion in box office ticket sales worldwide since its July 21 debut, Warner Bros. Pictures, a unit of Warner Bros. Discovery, announced on Sunday.

In a statement, Warner Bros. said the fantasy-comedy movie has taken in $459 million from domestic theaters — counting the United States and Canada — and another $572.1 million overseas since it hit theaters, for a total of $1.0315 billion. The figure was confirmed by media analytics firm Comscore.

Oscar-nominated Barbie writer and director Greta Gerwig also became the first female filmmaker to surpass the billion-dollar benchmark as a solo director, Warner Bros. said.

This was the third weekend in theaters for Barbie. The film drew $127 million worldwide this weekend — Friday through Sunday — with $53 million in domestic receipts and another $74 million overseas, according to Comscore.

“As distribution chiefs, we’re not often rendered speechless by a film’s performance, but Barbillion has blown even our most optimistic predictions out of the water,” Jeff Goldstein, president of domestic distribution for Warner Bros. Pictures, and Andrew Cripps, president of international distribution, said in a statement.

Starring Margot Robbie and Ryan Gosling as Barbie and Ken, the movie sends Mattel, Inc.’s iconic doll on an adventure into the real world.

Barbie ticket sales rank second this year to The Super Mario Bros., which was released in April and has raked in a total of $1.357 billion at the box office. — Reuters

Malnutrition and management

JOSE ALJOVIN-UNSPLASH

Pundits may ask why the Management Association of the Philippines (MAP) is into solving malnutrition and hunger. I personally believe that management not only involves present-day management but also looks after sustainability in terms of the present-day workforce, a future workforce, and how to ensure their company’s sustainability with human resources (HR).

Should it be just a problem of HR or should not managers be involved in ensuring we have enough brain power in the future? This is why I commend the active committees in MAP who are working on why malnutrition should be the problem for every manager to solve.

When we became members of MAP, we knew we would learn from our peers, and we could share with our peers the new concepts and ideas that develop and evolve as we go about our ways in managing this already chaotic business environment. Though there are immutable management principles we learned in University — Planning, Directing, Organizing, Controlling —these have been complicated with the onset of Digital, ChatGPT and Artificial Intelligence (AI). Further, there is also a change in the culture of the workforce.

There are new challenges to employee retention and even recruitment. There are challenges to how you hire a Marketing team, where more freelancers offer services and agencies are hard-pressed to keep their most brilliant minds in tow.

In Finance, the developments happen every day to make payroll remote, make simple payments bank-to-bank, and the management of financial products have become more digital. Even stock placements are now done online and it almost removes the messenger and the runners of yesteryears.

When I look back at what we learned in school, and the management principles we were made to digest and almost memorize, I can just smile and think: yes, they helped me learn a thinking process that managers ought to practice. But where is all that now? At a recent briefing we had on ChatGPT with the NextGen Organization of Women Corporate Directors (NOWCD), a new company called Thinking Machines (I love the name) explained to us the simplicity and complexity of AI and ChatGPT. These young entrepreneurs, mostly 26 and maybe younger, were teaching us 55-year-olds and up in age about how to “prime” ChatGPT or a similar program that they made using AI. Same principle as the 1970s computer revolution: garbage in, garbage out. It helped us understand that AI is good if you feed it the correct data you have. Wrong or skewed data will generate bad results.

And this is what managers and corporate directors ought to think about today. How can I use my academic background to be the foundation and add the new ingredients — ChatGPT and AI, digital banking, fintech — and become the manager or board director armed with “future ready” information and ideas?

While NOWCD attempts to share these new ideas with its members, MAP on the other hand must keep thinking of the core of business — its employees. And this, I believe, is the key for every manager to know. As MAP also has started recruitment of its NextGen members and has managed to lower its average membership age to 60 (it used to be 67), we also must think about who our teams will be 20 years from now.

Companies who wish or plan to survive the next 20 years and longer have to start thinking of the future workforce now. And this is a good move on the part of MAP to harness the power of NGOs and experts in finding solutions to stunting and wasting amidst the food crisis where we need to import almost every staple because the Filipino farmer failed to plan his succession. Children of farmers do not want to be farmers. So, as they say, for the farmer, it’s the end of the line. Who will grow our food? Thank God there are new farmers in our midst who have taken a love for the soil and are now planting vegetables, albeit in small farms for specialty markets, like organic and natural food markets. The mainstream vegetable market still must contend with lower farm gate prices and is still in a precarious situation. As a manager, is your solution also to scale production?

Food security and malnutrition are joined at the hip. You cannot think of one without thinking of the other. So why is MAP thinking of solving malnutrition? Because food security is connected to it and since we are not agriculturists, but managers, we can manage what we know or think we can know. Food security is more complex in that it requires a decision of doing scale versus backyard production. I personally am for Slow Food — good, clean, and fairly produced food like what our forefathers used to do. You may check out www.slowfood.com to get more ideas on how small farmers are doing small but safe food production. Or you can promote scale and be victim to chemicals and pesticides, GMO seeds and hybrids — and feed the world bad food. And serve the multinationals who produce the world’s food — there must be only six of them producing all of the world’s food, by the way.

So, you see, it is not as simple as managing a malnutrition program. It involves political will and management skills. Do you go slow food, or fast and unhealthy food? Do you want healthy workers in the future or workers who will be prone to sickness and have a lot of sick days? There is much to think about if we want to see a healthy workforce 20 years from now.

Or even if there is a workforce to speak of.

Yes, people will look for work but are they the people who we fed with healthy or bad food today? So, tell me, why should managers get involved with malnutrition and stunting? The answer is simple. Sustainability of a company hinges on a continuous throughput of a healthy workforce — today and a generation after.

 

Chit U. Juan is co-vice chair of the MAP Environment Committee. She is president of NOWCD, president of the Philippine Coffee Board, Inc., and founder of the ECHOstore Sustainable Lifestyle. She is a member of the global Slow Food community promoting good, clean, and fair food.

map@map.org.ph

pujuan29@gmail.com

Celebrating 60 years of service to the nation: LANDBANK to beef-up physical, digital services to drive financial inclusion

State-run Land Bank of the Philippines (LANDBANK) is marking 60 years of public service with plans to further expand its physical presence in unbanked and underserved communities, while enhancing its digital services to consistently deliver a seamless and exceptional customer experience.

LANDBANK President and CEO Lynette V. Ortiz said that the Bank will continue to support the National Government’s development agenda by improving access to reliable, relevant, and convenient financial services.

“We are adopting a phygital strategy to cater to our customer’s evolving preferences and demands, with increased investments in expanding our physical touchpoints and beefing-up our digital offerings. LANDBANK is ready to reach and serve a wider customer base, as we continue to bring more Filipinos into the financial mainstream,” said LANDBANK President Ortiz.

The only bank operating in all 82 provinces of the country, LANDBANK eyes to establish physical touchpoints in all 1,634 cities and municipalities nationwide to bring banking services closer to Filipinos.

As of 30 June 2023, LANDBANK has 606 branches and branch-lite units, 58 lending centers, 2,951 automated teller machines (ATMs), 226 cash deposit machines (CDMs), and 1,785 Agent Banking Partner POS cash-out terminals.

LANDBANK is currently present in 85.4% or 1,396 cities and municipalities in the country, including the previously unbanked towns of Sallapadan in Abra, Barlig in Mountain Province, Tamparan in Lanao del Sur, Anahawan in Southern Leyte, and Kinoguitan in Misamis Oriental.

In support of the Government’s digitalization push, LANDBANK is also looking to onboard all government offices in its digital platforms to increase operational efficiency, improve the ease of doing business, and enhance meaningful public service delivery.

From January to June 2023, the Bank has onboarded a total of 180 government entities to its Link.BizPortal payment platform, and facilitated across all its digital channels a total of 96.5 million transactions valued at P3.9 trillion.

LANDBANK is also working closely with the Philippine Statistics Authority (PSA) in providing unbanked Philippine Identification System (PhilSys) registrants with their own transaction accounts with no initial deposit.

As of June 2023, the Bank has already onboarded 8.35 million unbanked Filipinos to the formal banking system, allowing for convenient fund management and access to financial transactions such as cash withdrawals, fund transfers, and online bills payments.

LANDBANK has likewise taken significant steps to make digital banking more affordable, which includes recently reducing the transaction fees for online fund transfers to other banks through InstaPay, from P25 to P15.

The Bank has also doubled the total daily amount limit of fund transfers via InstaPay from P50,000.00 to P100,000.00, subject to a maximum amount of P50,000.00 per transaction.

LANDBANK, which was established on 8 August 1963 through Republic Act No. 3844 or the Agricultural Land Reform Code, will celebrate its 60th anniversary on 08 August 2023, representing six decades of uplifting lives, empowering communities, and serving the nation — towards building an inclusive and sustainable economy.

 


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Londoners struggle to afford homes elsewhere in the UK

BLOOMBERG

LONDON’s expensive housing market is notorious for pricing out would-be buyers. Now its residents are struggling to afford a home outside the capital as well.

Londoners bought 32,600 homes elsewhere in the UK during the first six months of the year, according to a report from broker Hamptons International. That’s about a fifth lower than the 40,000-plus homes purchased in the first half of 2022, as the priciest mortgages in almost 15 years block many would-be movers and first-time buyers from affording deals.

“This year London outmigration has increasingly been driven by need over want,” said Aneisha Beveridge, head of research at Hamptons. “Higher mortgage rates reduce buyers’ budgets, pushing them in search of smaller homes in more affordable areas.”

UK households are facing an avalanche of cost pressures triggered by rising interest rates and the worst cost-of-living crisis in a generation. Millions of homeowners have already seen the value of their properties decline this year, with some analysts forecasting a double-digit drop in prices as the nation adapts to costlier borrowing.

Meanwhile, London’s first-time buyers are struggling to get on the housing ladder — in or outside the city — as the priciest rents and living costs in the country squeeze their budgets to the brink.

The amount of homes bought outside the capital by London-based first-time buyers dropped 19% year-on-year to just over 25,000 in the first half of 2023, according to Hamptons, prompting a forecast from the broker that this year will see lowest amount of leavers in almost a decade.

What’s more, affordability pressures this year have forced the average London leaver to buy for about £60,000 ($76,233) less than those who left in 2022, with the average spend falling under £430,000. That’s because London leavers are hunting for cheaper deals further away from the capital, the report said, with the average distance moved in the first half of the year rising to the furthest since at least 2009.

Still, more than a third of London-based first-time buyers have left the capital to purchase a home so far this year, the second-highest share since Hamptons’ records began. These buyers are generally happy to settle for smaller homes — typically east of the capital — with the share of movers purchasing a one- or two-bedroom property rising in the first half of the year.

“The likelihood that mortgage rates will stay higher for longer may keep the pace of London outmigration up,” Hamptons’ Beveridge said. “With property prices in parts of the capital lower today than when they bought, trading the city for a cheaper area outside the M25 might be the only option for those needing to upsize.” — Bloomberg

Shakey’s says new Potato Corner product aims to aid farmers

SHAKEY’S Pizza Asia Ventures, Inc. announced on Monday that it has partnered with Gawad Kalinga (GK) through its Potato Corner (PC) brand to support local farmers.

The company introduced Potato Corner’s Harvest Chips product, using potatoes sourced from farmers in Benguet, under the supervision of Gawad Kalinga, and processed by Enchanted Farm workers.

In a statement, the company said that the new offering aims to help local farmers create a new income stream, which, in turn, “is in tune with PC’s innovation play.”

“We are extremely grateful for this opportunity to partner with Gawad Kalinga in support of the local farming community. As a global, proudly Filipino brand, we believe that PC has a unique role in bringing our local produce center stage,” Shakey’s President and Chief Executive Officer Vicente L. Gregorio said.

“PC has the ability to empower entrepreneurship and create livelihoods in the Philippines and beyond. We hope that, given its scale and the platform GK has provided, we can boost the income of Filipino potato farmers and make a positive impact in their lives,” Mr. Gregorio added.

The company also said that its promotional event, “National Fries Weekend,” contributed to boosting business for its franchisees.

“By developing programs like these, we are able to support our franchisees, promote entrepreneurship, and foster valuable partnerships that prime the brand for long-term growth,” Mr. Gregorio said.

The campaign was held for four days in July across all Potato Corner outlets domestically and in select stores internationally, including those in Singapore, Myanmar, Cambodia, British Columbia, and the United Arab Emirates.

Last year, the company acquired the assets and intellectual property of Potato Corner, resulting in a combined footprint of over 1,500 outlets in the Philippines and internationally.

For the first quarter, the company reported a net income of P200.78 million, more than double the P76.23 million recorded during the same period last year, thanks to sustained dine-in foot traffic.

Revenues for the first quarter surged by 94% to reach P3.14 billion, compared to P1.61 billion in the same period last year.

Shares for Shakey’s closed unchanged at P9.4 apiece on Monday. — Adrian H. Halili

Lenders leave rediscount facility untapped in July

BW FILE PHOTO

LENDERS left the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) untouched in July as banks remained well-capitalized and as the cut in their reserve requirement ratios (RRR) freed up more liquidity.

The BSP’s peso rediscount window was untapped anew last month, it said in a statement on Monday, marking the ninth consecutive month that the rediscount facility was not used by Philippine banks.

Last year, the rediscount window was only tapped in April, June, and October, with loans reaching P15.3 billion, more than double the P6.12 billion in 2021.

The Exporters’ Dollar and Yen Rediscount Facility (EDYRF) was also untouched in July. The last time an availment was made under the EDYRF was a dollar rediscounting loan in 2016.

The BSP’s rediscount window gives banks access to additional money supply by posting their collectibles from clients as collateral.

In turn, banks may use the cash — denominated in peso, dollar or yen — to extend more loans to their corporate or retail clients and service unexpected withdrawals.

“The BSP rediscounting facilities remained untapped by banks so far this year, thereby manifesting the strength and resilience of the Philippine banking system, in terms of profitability, capitalization, and overall asset quality,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The Philippine banking sector saw its net profit jump by 34.8% to P89.47 billion in the first quarter from P66.34 billion in the same period a year prior, BSP data showed.

“Furthermore, the recent cut in banks’ RRR also effectively freed up more funds for lending by banks, as another reason for not tapping the BSP rediscounting facilities,” Mr. Ricafort said.

In June, the central bank cut the RRR for universal and commercial banks as well as nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 9.5% from 12% previously.

Likewise, the RRR for digital banks was narrowed by 200 bps to 6% from 8%, while thrift banks, rural and cooperative banks saw a 100-bp reduction in their reserve ratios.

Moving forward, the improvement in banks’ asset quality due to still-relatively lower nonperforming loan (NPL) ratio may reduce the need for banks to tap the central bank’s rediscounting facilities, Mr. Ricafort said.

The banking industry’s gross NPL ratio went down to 3.46% of their total loan portfolio in May from 3.75% a year ago. However, it inched up from the 3.41% seen in April. The May NPL ratio is the highest since 3.53% in August 2022.

“The continued growth in deposits and overall asset growth would still allow banks to fund more loans with no or minimal need to source funds from the BSP’s rediscounting facilities,” Mr. Ricafort said.

“Banks have also been tapping the capital markets and also the interbank borrowing and lending as alternative source of funding, in lieu of tapping the BSP rediscounting facilities,” he added.

AUGUST RATES
For August, the applicable rate for peso rediscount loans will be at 7.3926% for those maturing in 90 days and at 7.5352% for those falling due in 91-180 days.

Meanwhile, dollar borrowings will be priced at 7.86400% (1-90 days), 7.92890% (91-180 days) and 7.92890% (181-360 days).

Yen-dominated borrowings will have an interest rate of 2.04750% (1-90 days), 2.05791% (91-180 days) and 2.08423% (181-360 days).

“The Peso rediscount rates are based on the BSP Overnight Lending Rate, while the United States Dollar and Japanese Yen rediscount rates are based on the applicable benchmark rates,” the central bank said.

“The applicable spread, as may be determined by the BSP, may change periodically to complement the changes in the BSP’s monetary policy goals and reflect movements in market interest rates,” it added. — Keisha B. Ta-asan

‘Bohemian Rhapsody’ piano, other Freddie Mercury belongings to be auctioned

FOR SALE is Freddie Mercury’s crown and regal cloak, worn for the “God Save The Queen” finale during the singer’s last tour with Queen in 1986, estimated at £60,000–£80,000. — SOTHEBYS.COM

LONDON — Fans of Freddie Mercury might wonder if this is the real life, or just fantasy, when they walk into a near-replica of his London home, where thousands of items belonging to the late Queen frontman which went on exhibition Friday.

Rare items including handwritten lyrics, art and collectibles from Mr. Mercury’s London home, Garden Lodge, have been looked after by his close friend Mary Austin since his death from AIDS-related pneumonia in 1991.

They have gone on public display for the first time in the month-long exhibition at Sotheby’s, which will then auction many of the items in September, with prices ranging from as low as £40 to millions of pounds.

“We’ve conceived our gallery spaces to give it a sense of what it was like living with Freddie at home,” said David MacDonald, head of single owner sales at Sotheby’s London said.

“If he was to walk in, he’d instantly recognize some of the spaces we’ve created,” Mr. MacDonald said.

At the heart of the auction is Mr. Mercury’s treasured, black Yamaha piano, estimated at £2-3 million ($2.5-$3.8 million), on which he composed the 1975 Queen epic “Bohemian Rhapsody.”

“It was an extension of himself, his vehicle of creativity,” Ms. Austin said of the baby grand piano. “He would never smoke at the piano or rest a glass on top of it and would ensure nobody else did either. The piano was always pristine.”

Other items for sale range from Mr. Mercury’s crown and regal cloak, worn for the “God Save The Queen” finale during the singer’s last tour with Queen in 1986, estimated at £60,000- £80,000, to a Tiffany & Co silver moustache comb (£400- £600).

Handwritten manuscript working lyrics for “We Are The Champions” have an estimate of £200,000–£300,000, while those for “Killer Queen” have a price tag of £50,000–£70,000. — Reuters

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