PSBank net profit rises 10% in the first quarter

May 9, 2023 | 12:02 am

PHILIPPINE SAVINGS Bank (PSBank) saw its net profit climb by 10% year on year in the first quarter as its consumer loan book grew.

The thrift banking arm of the Metrobank Group booked a net profit of P976.88 million in the first three months, up from P887.65 million in the same period last year, it said in a disclosure to the local bourse.

The bank’s financial statement was not available as of press time.

“Even as interest rates and inflation remain high, elevated consumer spending continues to persist which has fueled significant retail loan demand for the early part of 2023. This works well for PSBank which primarily caters to the needs of the consumer market, specifically for their auto and mortgage loan requirements among others,” PSBank President Jose Vicente L. Alde was quoted as saying.

“As we remain cautiously optimistic for any possible short-term volatility attributed to overseas developments, we are equally confident of the organization’s ability to adapt to challenges, pursue business opportunities, and deliver well for our customers and stakeholders,” Mr. Alde said.

PSBank’s net interest income rose by 8% year on year to P2.95 billion.

Net service fees also grew by 7% to P464.6 million.

On the other hand, operating expenses went down by 5% to P2.19 billion “as the bank continued to pursue cost optimization strategies resulting from initiatives on operational efficiency.”

PSBank’s gross loans grew by 4% to P116 billion at end-March amid better demand for credit among consumers following the economy’s reopening.

“The bank’s auto loan portfolio grew by 13% year on year on the back of higher demand for car financing,” it said.

Even as loans expanded, asset quality improved as its gross nonperforming loan ratio went down to 3.2% from 5%.

Meanwhile, deposits with the bank stood at P209.81 billion. Low-cost current and savings account deposits were at P73.29 billion.

The bank’s capital was at P37.82 billion as of March, with its capital adequacy and Tier 1 ratios at 24.6% and 23.8%, respectively.

Its assets stood at P255.76 billion at end-March.

PSBank’s shares rose by 20 centavos or 0.35% to end at P56.55 apiece on Monday.

San Miguel Corp. to hold regular stockholders’ meeting via remote communication on June 13

May 9, 2023 | 12:02 am

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Director Damien Chazelle to head Venice Film Festival

May 9, 2023 | 12:02 am

ROME — Damien Chazelle, the Oscar-winning director of hit movies La La Land and Whiplash, will head the main competition jury at this year’s Venice Film Festival, organizers said on Friday.

The Franco-American director, screenwriter and producer has close ties to the festival, having opened the prestigious event with two of his films in the past decade — First Man in 2018 and La La Land in 2016.

“I am humbled and delighted to be invited to lead this year’s jury,” he said in a statement after his appointment was announced.

French director Alice Diop, whose first feature-length fiction film, Saint Omer, won the Silver Lion and Grand Jury Prize at last year’s festival, will head the jury to decide who should win the award for a debut film this year.

The 80th edition of the festival, held on the lagoon city’s Lido island, will run from Aug. 30 to Sept. 9. The movies in competition will be announced in July. — Reuters

RLC partners with Bacolod for ‘super city’

May 9, 2023 | 12:02 am

RLC-Cybergate-Bacolod — RLC Cybergate Bacolod 2 is built to suit the needs of IT-BPM firms. — COMPANY HANDOUT

ROBINSONS LAND Corp. (RLC) has partnered with Bacolod City to help reach the latter’s goal of becoming a “super city” by 2025.

The local government of Bacolod is aiming to develop its own Information Technology and Business Process Management (IT-BPM) industry to drive economic growth.

“We recognize that Information Technology and Business Process Outsourcing are our city’s economic drivers. Therefore, we must take good care of these industries and find more ways on how we can expand for more employment,” Bacolod City Mayor Alfredo “Albee” B. Benitez said at the Bacolod IT-BPM Conference and Expo at Robinsons Cybergate Bacolod 2 building.

The conference sought to promote Bacolod as a prime business process outsourcing (BPO) destination.

“I assure this (IT-BPM) sector that the city will continuously work in providing reliable power for our BPO companies and strengthen the department to attend to the needs of the industry,” he said.

RLC Vice-President and Office Leasing Head Mr. J.P. Balboa said Robinsons Offices will work closely with Bacolod City to attract more investments and locators to the city.

“We want to attract more companies to locate in the City of Smiles so that the vision of Bacolod Super City 2025 will soon become a reality. We intend to do this by providing the right facilities and amenities for your workplace requirements. Companies can be certain that Robinsons Cybergate Bacolod’s world class offices are ready to take on the demands of 24×7 BPO operations today and onwards,” Mr. Balboa said.

Similar to other RLC Offices, RLC Cybergate Bacolod 2 is built to suit the needs of IT-BPM firms by providing an environmentally friendly workplace. It is located along Lacson Street, which is easily accessible by public transportation and near residential communities, commercial areas and hotels.

Philippine Labor Force Situation

May 9, 2023 | 12:02 am

THE JOBLESS RATE eased to 4.7% in March, while the underemployment rate fell to its lowest level in 18 years, the Philippine Statistics Authority (PSA) reported on Monday. Read the full story.

CreditSights expects stable metrics from PLDT

May 9, 2023 | 12:02 am

PLDT Inc.’s credit metrics are anticipated to remain stable over the next three quarters which will be supported by its expected full-year revenue, according to CreditSights.

“While we acknowledge the risks of hot domestic inflation and strong mobile competition, we think earnings growth could be buoyed by resilient consumer demand and inorganic contribution from the acquisition of Sky Cable,” the credit analyst said.

In March, PLDT announced its plan to acquire Sky Cable Corp. for P6.75 million which will cover 100% of the latter’s total issued and outstanding capital stock of around 1.38 billion.

During the company’s first-quarter briefing last week, PLDT said it was awaiting approval from the Philippine Competition Commission on the transaction.

“Until we get that, the transaction has not been completed,” PLDT President and Chief Executive Officer Alfredo S. Panlilio said.

“It will continue as a broadband provider because it is split into pay television and broadband. The pay television part of it goes to Cignal, so what we are talking about for PLDT is the Sky Cable broadband base,” he added.

Meanwhile, CreditSights said: “We also expect PLDT to receive a further P32.6 billion of tower sales proceeds through the rest of 2023, which would provide greater financial flexibility for capital expenditure and possible deleveraging.”

As of the end of April, PLDT has sold and leased back 5,182 towers for P67.6 billion. By August, the company is expecting the transfer of the balance of 725 towers.

CreditSights said the corporate governance uncertainties about the company have eased slightly.

Last month, PLDT announced that two of its investors filed separate motions to the court seeking to serve as the lead plaintiff for the US securities class action (SCA) lawsuit against the company.

“Seeing the small scale of the alleged losses and the low participation rate, we see a dim chance that the Court will allow a formal case to be officially launched. In turn, we see a limited impact of the US SCA lawsuits on PLDT’s financials and operations, in line with our expectation,” CreditSights said.

“The hearing for a lead plaintiff appointment is set for 8 May, and the entire court process could take 1-1.5 years if the plaintiffs elect to stay the course,” CreditSights said.

In the first quarter, PLDT reported an attributable net income of P9.02 billion, down by 0.7% from P9.08 billion in the same period last year when it booked nonrecurring gains.

On Monday, shares in the company declined by P50 or 4% to P1,200 apiece.

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. — Justine Irish D. Tabile

Rediscount facility untapped for sixth straight month

May 9, 2023 | 12:01 am

BANKS did not tap the rediscount facility of the Bangko Sentral ng Pilipinas (BSP) in April amid the excess liquidity in the financial system.

“There were no availments on the rediscounting lines of banks with the BSP under the Peso Rediscount Facility and Exporters’ Dollar and Yen Rediscount Facility (EDYRF) for the period covering 01 January to 30 April 2023,” the central bank said in a statement on Monday.

April was the sixth consecutive month that the rediscount window was not used by lenders.

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.

There were likewise no availments under the EDYRF last month.

The last time the EDYRF was tapped was for a dollar rediscounting loan in 2016.

The BSP’s rediscount facility gives banks access to additional money supply by posting their collectibles from clients as collateral. In turn, lenders can use the cash — denominated in peso, dollar or yen — to disburse more loans for corporate or retail clients and service unexpected withdrawals.

“The continued excess liquidity in the financial system alongside improved profitability, better asset quality, and stronger capitalization of banks again allowed banks not to tap the BSP rediscounting facilities,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Outstanding loans by big banks grew by 10.1% to P10.762 trillion in March from P9.77 trillion a year earlier, BSP data showed.

On the other hand, the banking industry’s nonperforming loan ratio went up to 3.31% in January from the 3.28% a month earlier.

Data from the BSP showed that bad loans reached P411.186 billion in February, up by 1.5% from P405.138 billion in January.

Mr. Ricafort added that banks have other source of funding such as deposits, interbank loans, money markets, and capital markets that allow lenders to increase lending to consumers, instead of tapping the BSP rediscounting facilities.

MAY RATES
For this month, the applicable rate for peso rediscount loans will be at 7.5751% for those maturing in 90 days, and at 7.9002% for those due in 91 to 180 days.

Meanwhile, dollar borrowings will be priced at 7.5680% (1-90 days), 7.5680% (91-180 days), 7.5680% (181-360 days).

Yen-dominated borrowings will be priced at 2.0850% (1-90 days), 2.09625% (91-180 days), 2.1260% (181-360 days). — Keisha B. Ta-asan

CCI to develop new project in San Mateo

May 9, 2023 | 12:01 am

COMMUNITY CREATORS, Inc. (CCI) recently broke ground on a new condominium project within its master-planned development Amiya Raya in San Mateo, Rizal.

This marked the official start of the construction of Shanti, which CCI expects to be completed by the first quarter of 2027.

Named after the Hindu-Sanskrit term for peace, calmness, and bliss, Shanti will be built next to a soon-to-be developed nature park.

Shanti will have 11 floors with three basement levels. It will offer 148 units or an average of 9 units per floor, ranging from one-bedroom to three-bedroom units.

“As part of CCI’s commitment to modern design, convenience and comfort, each unit will have Smart Home features, as well as being telephone, cable, and internet ready. They even have provisions for back-up power in case of any outages,” CCI said.

Shanti will rise within Amiya Raya, a master-planned residential development which boasts of views of the Metro Manila skyline from 160-240 meters above sea level.

CCI expects to have 567 units across several projects in Amiya Raya.

Former FCC Chair Newton Minow, who called 1960s TV ‘vast wasteland,’ 97

May 9, 2023 | 12:01 am

FORMER US Federal Communications Commission (FCC) Chair Newton Minow, who lambasted television as a “vast wasteland” more than 60 years ago and challenged the broadcast world to come up with imaginative alternatives, died on Saturday at the age of 97, his daughter Nell Minow said on Twitter.

Mr. Minow in 2011 said television had indeed improved through its multitude of choices.

The chair of the FCC usually falls into the category of faceless, seldom-heard-of Washington bureaucrat but Mr. Minow earned a spot in contemporary US history in his first major appearance in the job. On May 9, 1961, he addressed the National Association of Broadcasters convention and had some stark criticism for television executives.

Mr. Minow started his speech with a bit of praise — singling out The Twilight Zone, shows by Fred Astaire and Bing Crosby. and some news programs — before raising his complaints.

“When television is good, nothing — not the theater, not the magazines or newspapers — nothing is better,” Mr. Minow said. “But when television is bad, nothing is worse.”

He bemoaned the parade of game shows, violence, “formula comedies about totally unbelievable families,” and “screaming, cajoling, and offending” commercials that viewers were subjected to, and “most of all, boredom.”

He challenged the executives to set aside a day to do nothing but watch television in order to get a better idea of what they were giving the American public.

“I can assure you that what you will observe is a vast wasteland,” he said.

And that was decades before any Kardashians, real housewives, Jersey Shore denizens, or other reality show characters had made their way to television.

The “vast wasteland” phrase that Mr. Minow was so closely identified with came from his speechwriter, John Bartlow Martin, who actually had watched 20 consecutive hours of television as part of research for a magazine story. The speech draft had referred to a “vast wasteland of junk” but Mr. Minow excised “of junk” so as not to offend his audience too deeply.

GILLIGAN’S ISLAND BOAT
Television producer Sherwood Schwartz still did not like Mr. Minow’s criticism and named the ill-fated boat in his low-brow sitcom Gilligan’s Island the S.S. Minnow in a mock tribute that Mr. Minow said actually thrilled him.

Mr. Minow’s speech, coming at a time when television viewing was generally limited to three networks, challenged broadcasters to come up with “excellence, not mediocrity.”

While many of his criticisms of formulaic sitcoms and offensive commercials still apply, in interviews in 2011 marking the 50^th anniversary of his speech, Mr. Minow said television had improved — primarily because it offers so many options through public television, news shows, and cable channels.

Mr. Minow admitted to being a television junkie, saying he mostly watched sports and news with a special affinity for CBS’s Sunday Morning show and PBS’s NewsHour. His favorite scripted shows included The Mary Tyler Moore Show from the 1970s and more recent fare such as Downton Abbey and Mad Men.

As FCC chief, Mr. Minow also was a powerful proponent of communication satellites, pushing federal programs and legislation that would lead to the network of satellites that now carry broadcasts, phone calls, and data all over the planet.

Mr. Minow, who was born Jan. 17, 1926, was a clerk at the US Supreme Court and worked in Illinois Governor Adlai Stevenson’s unsuccessful presidential campaigns in the 1950s before joining the 1960 campaign of John F. Kennedy, who chose him for the FCC job.

Mr. Minow headed the FCC for two years and in 1965 became a partner at the Chicago law firm of Sidley Austin. It was at that firm in the summer of 1989 that Barack Obama, an intern, met future wife Michelle Robinson, who was a lawyer there. Mr. Minow was so impressed with the young Mr. Obama that he offered to help him in public endeavors and would become one of the earliest supporters of Mr. Obama’s presidential aspirations.

In 2016 Obama presented Newton a Presidential Medal of Freedom in a White House ceremony.

Mr. Minow and his wife, Josephine, had three daughters who all became attorneys. — Reuters

National Government outstanding debt

May 9, 2023 | 12:01 am

THE NATIONAL Government’s (NG) outstanding debt reached a record-high P13.86 trillion as of end-March, the Bureau of the Treasury (BTr) said on Monday. Read the full story.

EdgePoint, DITO activate their first colocation partnership

May 9, 2023 | 12:01 am

TELECOMMUNICATIONS infrastructure company EdgePoint Infrastructure Sdn. Bhd.’s through its local EdgePoint Towers, Inc. has activated its first tower colocation tenancy partnership with DITO Telecommunity Corp.

The site, located in a 48-meter ground-based tower in Tanay, Rizal, is expected to be ready for installation in under two weeks.

“The site enables DITO Telecommunity to serve more than 139,000 residents in the area,” EdgePoint Infrastructure said in a press release.

“The activation also kicks off a partnership between EdgePoint and DITO Telecommunity that will see the rollout of planned colocation projects across Luzon,” it added.

EdgePoint Infrastructure Chief Executive Officer Suresh Sidhu said the company is focusing on making its tower network available to all operators for faster deployment.

“We are committed to ensuring the ready availability of accessible and reliable wireless telecommunications infrastructure to support all mobile network operators and Internet service providers in the Philippines, thereby improving service quality to their customers,” Mr. Sidhu said.

Previously, the company announced its partnership with Globe Telecom, Inc. aimed at increasing both tower and colocation sites in the Philippines.

The partnership, which requires EdgePoint Infrastructure to provide a network of sites, is said to support Globe’s expansion plans across the country.

To date, its EdgePoint Infrastructure’ Philippine unit operates 2,557 active sites, which it plans to increase to 3,000 by the end of 2023.

The EdgePoint group owns and manages a total of 14,000 towers across Malaysia, Indonesia and the Philippines. — Justine Irish D. Tabile

How PSEi member stocks performed — May 8, 2023

May 9, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, May 8, 2023.