Home Blog Page 497

Banks’ deposits rise to P20.37 trillion

BW FILE PHOTO

THE PHILIPPINE banking system’s total deposits rose by 7% year on year to P20.37 trillion in 2024 from P19.03 trillion in 2023 on the back of increases in total accounts and depositors.

Latest Bangko Sentral ng Pilipinas (BSP) data showed that the number of deposit accounts jumped by 17.9% to 143.35 million as of end-December 2024 from 121.6 million a year prior.

The number of depositors likewise climbed by higher by 14.7% year on year to 128.73 million from 112.27 million.

The Philippine banking system’s deposit liabilities were mostly made up of savings (P8.84 trillion), time (P5.88 trillion) and demand (P5.62 trillion) deposits, the data showed.

Broken down, deposits held by universal and commercial banks went up by 6.8% year on year to P19.1 trillion at end-December from P17.88 trillion.

Big banks had a total of 92.99 million accounts and 86.01 million depositors in the period.

Meanwhile, thrift banks recorded deposits of P826.205 billion as of December, up by 4.7% from P789.31 billion a year prior. The number of deposit accounts at these lenders stood at 7.42 million, with 7.27 million depositors.

Deposits of rural and cooperative banks also climbed by 19.8% to P350.178 billion at end-2024 from P292.24 billion the previous year. These banks had a total of 23.55 million deposit accounts and 23.05 million depositors.

Lastly, digital banks’ total deposits surged by 39.5% to P96.27 billion at end-December from P69 billion a year prior.

The number of deposit accounts at digital banks hit 19.39 million with 12.4 million depositors.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the growth in Philippine banks’ deposits was partly due to faster lending.

Separate BSP data showed that outstanding loans of universal and commercial banks jumped by 12.2% year on year to P13.1 trillion in December. This was the fastest pace of bank lending growth in two years.

“Furthermore, deposits growth also partly sustained by local employment data among the best in nearly 20 years or since revised records started in 2005, thereby also partly supporting consumer spending, which accounts for more than 70% of the economy,” he added.

Increases in overseas Filipino workers’ remittances, business process outsourcing revenues and tourism receipts also supported the continued growth of bank deposits as well as consumer spending, Mr. Ricafort said. — Luisa Maria Jacinta C. Jocson

Robert De Niro makes TV debut in Zero Day, but hesitant on future TV roles

Robert De Niro and Angela Bassett in a scene from Zero Day.

NEW YORK — After a six-decade-long career, Taxi Driver actor Robert De Niro is starring in his first television series — but he is not convinced he would do it again.

“I don’t know. It’s a lot of work. It’s like doing three features back to back,” said the veteran American actor.

Mr. De Niro portrays a former US president in Netflix’s limited series Zero Day, which explores themes of truth and disinformation.

Mr. De Niro’s character leads the Zero Day Commission in the wake of a cyberattack that has inflicted chaos and claimed thousands of lives in the United States.

Matthew Modine, who plays a politician, said the show’s plot reflected how trust was being lost in institutions.

“It’s not the question of if a cyberattack will happen on the United States or in some other country around the world. It’s when,” he said.

Preparation for the role was intense, according to Mr. De Niro.

“It was a lot of work to learn all that and a lot of it was exposition, especially in certain parts,” he said. “There wasn’t much room for paraphrasing and stuff like that, or adlibbing… But it was worth doing, you know?”

The show was filmed during the last US presidential election campaign and creators Noah Oppenheim and Eric Newman said they were surprised how much art seemed to imitate life.

“Every day we’d be on set, and whether it was election-related news or just some other event in the world, we would see things happening that when we had written about them in the show, we had thought were fictional, you know, fancies and pieces of speculation,” said Mr. Oppenheim.

“And then we watched as these things unfolded in the real world.”

Zero Day, which among others also stars Angela Bassett and Jesse Plemons, is now streaming on Netflix. — Reuters

Toll operators to DoTr: Cashless system key to interoperability

PHILIPPINE STAR/ MICHAEL VARCAS

TOLLWAY OPERATORS on Monday said they welcome the decision to reassess the implementation of cashless toll collection but emphasized that its full adoption is necessary to enable interoperability among toll wallet systems.

“SMC Infrastructure acknowledges Transportation Secretary Vince Dizon’s initiative to review the implementation of cashless toll collection across all expressways, recognizing that the new leadership may want to reassess the policy before moving forward,” SMC Infrastructure said in a statement.

Last week, newly appointed Department of Transportation (DoTr) Secretary Vivencio B. Dizon ordered the Toll Regulatory Board (TRB) to suspend the full cashless toll collection system, which was scheduled for implementation on March 15. 

“I gave the instruction already to TRB to suspend that (cashless transaction). We have to make sure that the current system in place is as efficient as possible,” Mr. Dizon said in a separate statement on Monday.

This marks the third postponement of the policy’s rollout. Under Joint Memorandum Circular No. 2024-001, fines for motorists using expressways without RFID (radio-frequency identification) tags were initially set to take effect on Oct. 1 last year. However, the Transportation department deferred the implementation to 2025 to allow tollway operators and relevant agencies more time to refine their systems. 

SMC Infrastructure, which operates San Miguel Corp.’s (SMC) toll road network, said it has been working closely with the government for the past five years to enhance the tolling experience for motorists. 

“A key part of this effort has been ensuring full interoperability among electronic toll collection (ETC) systems across expressways,” SMC Infrastructure said.

It added that a crucial prerequisite for achieving interoperability is the full adoption of cashless and contactless toll collection.

The TRB previously said that implementing a cashless toll collection system is essential for the planned electronic toll collection interoperability. It also plans to introduce a unified RFID wallet system that can be used across various tollways. 

“Without a uniform cashless system, seamless integration between different toll operators cannot be fully realized. We understand the need to ensure that any transition to cashless tolling is seamless and truly beneficial to the public,” SMC Infrastructure said.

For his part, Metro Pacific Tollways Corp. (MPTC) Chairman Manuel V. Pangilinan said the company is set to meet with Mr. Dizon this week to discuss the suspension of cashless toll collection.

Additionally, Mr. Pangilinan said the company remains optimistic about the potential implementation of a barrierless toll system despite the suspension of the cashless toll collection policy.

“I think it will take time. We want to test it further, but it is within our sight. Other countries have done it, and it decongests the system,” Mr. Pangilinan told reporters on Monday. 

MPTC is the tollway subsidiary of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc. 

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., holds a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Ashley Erika O. Jose

Re-igniting the EDSA Spirit today

PHILIPPINE STAR/RYAN BALDEMOR

Today I join the students of Catholic schools in the Philippines in the celebration of the 39th anniversary of the EDSA People Power Revolution. I remember distinctly that day in February 1986. It was also a Tuesday like today. My wife Cecile and I were getting ready to pass by my parents’ house in Bel-Air, Makati to greet my mother “Happy Birthday” before proceeding to EDSA, when someone called and told me to switch on the TV. Upon seeing Cory Aquino being sworn in as president by Justice Claudio Teehankee. I exclaimed with a bit of disappointment, “What, the fight is over, no more excitement and fun?”

I was looking forward to Wednesday, Feb. 26, the day of the massive boycott of establishments that flourished due to their connection to the Conjugal Dictatorship, especially to the First Lady. On Feb. 22, I and comrades in Manindigan!, one of the many so-called cause-oriented groups that were organized after the Ninoy Aquino assassination, assembled in the Parish Hall of Santuario de San Antonio in Forbes Park, Makati to plan the boycott of Makati restaurants, retail stores, and service centers on Wednesday, Feb. 26. The Catholic schools had previously announced Wednesday as a holiday.

The main targets were the big high-end department store and two popular sit-down or table service restaurants — all located in what was then known as the Makati Commercial Center. Both restaurants had dance troupes performing folk dances to entertain tourist-customers.

Our meeting ended just before dusk. As Mass at the Santuario was about to start, I decided to hear Mass there. Halfway through Mass, the church was abuzz. Word had filtered in that Defense Secretary Juan Ponce Enrile and AFP Vice-Chief of Staff and Chief of the Philippine Constabulary Lt. Gen. Fidel Ramos had broken away from President Ferdinand Marcos, Sr.

The banter after Mass and in the patio of Santuario de San Antonio was that Marcos was up to his wily tricks. “The breakaway of Enrile and Ramos is feigned, it is to lure the anti-Marcos forces into a state of calmness and quietude,” some people cautioned. But when I got home, my wife greeted me with the breaking news that Manindigan! Chairman Jimmy Ongpin, Vice-Chairman Fr. Joaquin Bernas and leaders of other cause-oriented groups had joined Enrile and Ramos in Camp Aguinaldo. So, the breakaway was real. The Fall of the Evil Dictatorship had begun.

The next day, Sunday, was spent contacting comrades for a better assessment of the situation and for directives as to what course of action and security measures to take. On Monday, we (my wife, her sister, and her sister’s husband) drove to EDSA. We got out of the car at the south end of Guadalupe Bridge as we could see that we could not drive any farther. There was no vehicular traffic on EDSA as the thoroughfare was teeming with rallyists.

We crossed the bridge on foot and walked towards Camp Aguinaldo. When we passed a large restaurant (part of a chain known for Filipino food) on the southbound lane of EDSA, the personnel bade us to come in, not to dine but to use their rest rooms as there were no other rest rooms along EDSA that were as clean and open to the public. Ah, solidarity in times of crisis, we said to each other. It was a long walk from Guadalupe Bridge to Camp Aguinaldo. But it didn’t seem so because our spirits were buoyed by the comradeship and kindness displayed all along the way.

We were on White Plains Avenue when a tank roared towards us. Suddenly, a platoon of young men in white robes (seminarians obviously) materialized. Right behind them were nuns who placed rosary beads around the tank’s gun and flowers in the muzzles of the soldiers’ rifles. The soldiers looked bewildered. Is this a revolution we are supposed to quell, they seemed to ask.

It may have looked like a celebration of a town fiesta, but the millions of Filipinos gathered on that long stretch of highway were there ready to overthrow the dictatorship and regain their freedom. They were in a festive mood because they drew strength and courage from their numbers. In no revolution in the history of the world had so many gathered in one place to fight for a common cause.

That was what defeated Marcos’ forces. They were overwhelmed by the sight of a sea of people even if they had only their bare hands — and charm — to fight with. The soldiers realized they would run out of ammunition before they could mow down so many. They were afraid that when they ran out of bullets, the hundreds of thousands of Filipinos still alive would swarm them and beat them to death with their fists.

So, I call on the students of today to find inspiration from the students of 1986, who were ready to put their lives on the line that you may enjoy the freedom they fought valiantly for. I call on you to safeguard that freedom as the son of the dictator ousted by the collective power of millions of Filipinos gathered on EDSA is now the president and he is manifesting an authoritarian tendency.

THE SITUATION TODAY
Ferdinand Marcos, Jr. said that filing an impeachment complaint against Vice-President Sara Duterte would just take up all our time for nothing. Article XI, Section 2 of the 1987 Constitution bestows upon the members of the House of Representatives the power to impeach the highest officials of the land. To dismiss the provision as useless is sheer arrogance.

Some political pundits believe President Marcos does not want to alienate VP Sara as she can take revenge on him if she becomes president in 2028. The Dutertes are known to be vengeful. She has been considered the frontrunner in the 2028 presidential race since she got elected vice-president. Because she is the frontrunner, her life is in danger. That is why her conditional threat of “If something happens to me…”

The House of Representatives is part of the legislative branch of government. It is separate from and co-equal with the executive branch. The President must stand aside as the House carries out its mandate. It has impeached VP Sara for corruption, plotting to assassinate the President, involvement in extrajudicial killings, and incitement to insurrection and public disorder. As the resolution of impeachment had been filed by 215 members of the House, including the President’s son Sandro (he had to go with the tide), trial of VP Sara by the Senate should have proceeded immediately as mandated by the Constitution. It has not been held because Congress is in recess. The session will resume on June 2, and it will adjourn on June 13.

Conviction of the accused requires the concurrence of two-thirds of all the members of the Senate. The Senate now has 23 members, Senator Juan Edgardo Angara having resigned to assume the position of Secretary of Education, which position VP Duterte resigned from. So, 16 “Guilty” votes are required to convict VP Duterte. If convicted, she would be removed from the Office of the Vice-President and would be disqualified from holding any public office.

Constitutional lawyers submit that it is within the power of the President to call a special session of Congress so that the trial can proceed. However, the President does not seem predisposed to call a special session. Many political observers as well as the President think that the required two-thirds of the current members of the Senate, or 16 senators, voting Guilty” will not be met. Looking at it another way, only eight senators of the current members voting “Not guilty” will acquit VP Sara.

I think as many as 11 senators will vote “Not guilty” if the trial is held during the period June 2 to 13. The 11 senators and the reasons why I think they will vote “Not guilty” are:

Robin Padilla – he has already said he will vote “Not guilty”;

Bong Go – he is the faithful aide/special assistant/caregiver of former president Rodrigo Roa Duterte;

Ronald dela Rosa – he has said he will live and die with the Dutertes;

Francis Tolentino – he is in the Senate due to strong backing of former president Duterte, was at the INC rally in support of Sara;

Imee Marcos – is a close political ally of the Dutertes;

Alan Peter Cayetano – was the VP running mate of Rodrigo Duterte in 2016 and is a staunch defender of his policies;

Pia Cayetano – is the sister of Alan Peter, and is a political supporter of the Dutertes;

Cynthia Villar – is a close friend of the pastor of former president Duterte; her daughter Camille, a member of the House, did not sign the impeachment resolution against VP Sara; that could only be on bidding of mother;

Mark Villar – is the son of a close friend of the pastor of former president Duterte;

Joel Villanueva – is the son of Eddie, a member of House who did not sign the impeachment resolution;

Bong Revilla – is the husband of Lani Mercado and father of Bryan and Jolo, all members of the House who did not sign the impeachment resolution.

If the VP is acquitted, her political stock will be boosted markedly, and the DDS will have a good chance to get back into power. Woe unto Bongbong if they do get back into power.

That is probably the reason why Senate President Francis Escudero has set the opening of the impeachment trial of VP Sara sometime in July, after President Marcos’ third State of the Nation Address. By that time, the composition of the Senate would have changed, and the number of senators who would vote “Guilty” would have increased to meet the required two-thirds of the members of the Senate to convict VP Sara. With her out of contention for the presidency, anything can happen in 2028.

There was supposed to be a presidential election in 1973 with President Ferdinand Marcos, Sr. barred by the Constitution from running as he had termed out. No election was held for any position, but Marcos remained president until 1986. Ferdinand Marcos, Jr. is now president. He is barred from running for president in 2028. Will there be an election in 2028?

 

Oscar P. Lagman, Jr. has been a keen observer of Philippine politics since the late 1950s.

New Avida Land mid-rise condo in Vermosa set for 2028 completion

AVIDA LAND Corp. recently commenced construction on its 15-storey mid-rise condominium development in Vermosa, Cavite, scheduled for completion by August 2028.

The project, called Sentria Storeys Vermosa, responds to market demand for homes that balance urban conveniences with open spaces, Avida Land President Raquel S. Cruz said in a statement over the weekend.

Sentria Storeys Vermosa is located within the 700-hectare master-planned Vermosa estate. It offers studio and one-bedroom units measuring 26.5 square meters (sq.m.) and 35.8 sq.m., respectively.

Both unit types come with balconies and are priced between approximately P5.7 million and P8.5 million, according to Avida Land, the mid-income residential brand of Ayala Corp.

Amenities include an indoor gym, adult and kiddie pools, a multi-purpose area, a half basketball court, and pet-friendly spaces.

The project integrates sustainability features, such as LED lighting, water-efficient fixtures, and a rainwater harvesting system.

Sentria Storeys is strategically located within Campus Town, a commercial zone inside Vermosa, providing access to key establishments such as Ayala Malls Vermosa, Landers Superstore, De La Salle Santiago Zobel Vermosa Campus, and sports facilities at the state-of-the-art Ayala Vermosa Sports Hub.

Connectivity in the area will also be enhanced by major highways such as the Cavite-Laguna Expressway and the Bataan-Cavite Interlink Bridge.

The project is expected to attract young professionals and families seeking homes outside Metro Manila. It also reflects the growing demand for suburban living, driven by remote work trends and a preference for healthier environments.

“Cavite’s appeal lies not only in its accessibility but in the lifestyle that it now offers,” said Ms. Cruz.

“With Sentria Storeys Vermosa, we are responding to the market’s call for homes that balance urban conveniences with open spaces and environmental sustainability.” — Beatriz Marie D. Cruz

BDO books net profit of P82 billion in 2024

BW FILE PHOTO

BDO UNIBANK, Inc.’s net profit climbed by 11.73% in 2024 on the back of the solid performance of its core businesses.

The Sy-led bank’s attributable net income rose to P82.02 billion last year from P73.41 billion in 2023, according to its financial statement disclosed to the stock exchange on Monday.

This translated to a return on common equity of 15.1%, a return on average equity of 15%, and a return on average resources of 1.8%.

“BDO’s established business franchise, robust financial performance, and wide distribution network make it well-equipped to pursue new opportunities and maintain long-term sustainable growth and profitability,” the bank said.

BDO’s net interest income increased by 8.24% to P186.596 billion in 2024 from P172.39 billion a year prior. Interest earnings rose by 17.4% to P272.04 billion, while interest expense increased by 44.04% to P85.44 billion.

The bank’s net interest margin stood at 4.4%.

Other operating income rose by 8.54% to P70.89 billion last year from P65.32 billion in 2023.

“Net interest income and non-interest income both grew by 8% with the expansion in earning assets and growth in the bank’s service businesses,” BDO said.

Its gross customer loans expanded by 13% year on year to P3.2 trillion in 2024. The bank said it saw double-digit growth across all loan segments.

“Asset quality remained steady, with nonperforming loan (NPL) ratio at 1.83%, lower than the industry ratio of 3.27%. NPL coverage was stable at 145% versus 144% in the previous quarter, using the revised BSP (Bangko Sentral ng Pilipinas) guidelines which exclude provisions appropriated in retained earnings,” BDO said.

“Using the old reporting regime, NPL coverage was at 179% in the fourth quarter of 2024, compared to 178% in the third quarter of 2024.”

Total deposits went up by 6% to P3.8 trillion, with low-cost current account, savings account or CASA deposits making up 71% of the total.

Meanwhile, net income attributable to BDO’s insurance business also increased by 7.42% year on year to P6.85 billion in 2024 from P6.37 billion in 2023.

On the other hand, the bank’s operating expenses went up by 12.34% year on year to P146.61 billion in 2024 from P130.51 billion.

BDO’s total assets expanded by 8.9% year on year to P4.88 trillion at end-2024 from P4.48 trillion.

Total equity stood at P577.4 billion.

The bank’s total capital ratio was at 15.2% in 2024, up from 14.9% in 2023. Its common equity Tier 1 ratio also improved to 14.1% from 13.8%.

Liquidity coverage ratio was at 132.1%, up from 123.2% a year prior.

The BDO Group had 1,791 local branches at end-2024 as well as two foreign branches.

“The bank opened a total of 71 branches nationwide, majority of which are located in rural and provincial areas,” BDO said. “Sustained branch expansion is aligned with the bank’s strategic focus of broadening its reach, particularly in underserved areas, and enhancing customer convenience and accessibility.”

“To complement its physical network and future-proof the bank, BDO continues to invest in digital capabilities to offer enhanced products, improve customer experience and generate operational productivity.”

The bank has launched the new BDO Online website, www.onlinebanking.bdo.com.ph, it said separately on Monday. Customers can log in using their existing online banking credentials.

“We recognize that customers have diverse banking needs that arise at different times of the day,” BDO Digital Banking Head Roy Villareal said. “With this in mind, our goal is to provide a suite of complementary banking channels that allow customers to transact conveniently and securely, whether through our online platform or our extensive branch network. The new BDO Online website is designed to enhance security, accessibility, and overall user experience.”

The new website features key enhancements, including login protection via SMS one-time password or push confirmation via the BDO Online app, increased fund transfer limits via PESONet and a reduced InstaPay fee of P10, free BDO-to-BDO transfers, and card management tools, including the option to lock cards and set transaction limits.

BDO said the website complements its existing digital banking ecosystem, which includes the BDO Online and BDO Pay mobile apps.

The bank’s shares went down by P1 or 0.7% to close at P141 each on Monday.

DOMINION HOLDINGS
Meanwhile, BDO’s subsidiary Dominion Holdings, Inc. (DHI) saw its net profit decrease by 27.11% to P202.12 million kast year.

“The lower income is attributed to reduced funds available for investment, following the declaration of P3.2 billion in cash dividends in May 2024,” it said.

Its income dropped by 21.72% to P269.06 million. Operating costs and expenses also went down by 5.86% to P17.05 million.

DHI’s shares rose by eight centavos or 5.48% to P1.54 apiece on Monday. — Aaron Michael C. Sy

Man who stabbed novelist Salman Rushdie guilty of attempted murder

SALMAN RUSHDIE — COMMONS.WIKIMEDIA.ORG

MAYVILLE, New York — Hadi Matar, the man who stabbed and partially blinded the novelist Salman Rushdie onstage at a New York arts institute, was found guilty on Friday of attempted murder.

Mr. Matar, 27, can be seen in videos of the 2022 attack rushing the Chautauqua Institution’s stage as Mr. Rushdie was being introduced to the audience for a talk about keeping writers safe from harm, some of which were shown to the jury during the seven days of testimony.

Mr. Rushdie, 77, was stabbed with a knife multiple times in the head, neck, torso, and left hand, blinding his right eye and damaging his liver and intestines, requiring emergency surgery and months of recovery.

The writer was among the first to testify at the Chautauqua County Court in Mayville, calmly describing to jurors how he believed he was going to die and showing them his blinded eye by removing his adapted spectacles with a blacked-out right lens.

Mr. Matar was found guilty of attempted murder in the second degree and assault in the second degree for stabbing Henry Reese, the co-founder of Pittsburgh’s City of Asylum, a non-profit group that helps exiled writers, who was conducting the talk with Mr. Rushdie that morning.

He will be sentenced on April 23, and faces up to 25 years in prison.

Speaking after the verdict, Chautauqua County District Attorney Jason Schmidt praised the scores of audience members who rushed to Mr. Rushdie’s aid when he was attacked.

“The Chautauqua Institution community, which I believe saved Mr. Rushdie’s life when they intervened, I would say to you that this entire community deserved swift justice here, and I’m glad that we were able to achieve that for them.”

Nathaniel Barone, a public defender representing Mr. Matar, said his client was disappointed by the verdict.

“The video, I think, was extremely damaging to Mr. Matar,” Mr. Barone said outside the courtroom, referring to the video of the attack that was shown repeatedly to jurors, sometimes in slow motion. “It’s that old expression, a picture is worth a thousand words.”

Mr. Rushdie, an atheist born into a Muslim Kashmiri family in India, has faced death threats since the 1988 publication of his novel The Satanic Verses, which Ayatollah Ruhollah Khomeini, then Iran’s supreme leader, denounced as blasphemous.

After the knife assault, Mr. Matar told the New York Post that he had traveled from his home in New Jersey after seeing the Rushdie event advertised because he disliked the novelist, saying Mr. Rushdie had attacked Islam.

Mr. Matar, a dual citizen of his native US and Lebanon, said in the interview that he was surprised Mr. Rushdie had survived, the Post reported.

Mr. Matar did not testify at his trial. His defense lawyers told jurors that the prosecutors had not proved beyond reasonable doubt the necessary criminal intent to kill needed for a conviction of attempted murder, and argued that he should have been charged with assault.

Mr. Matar also faces federal charges brought by prosecutors in the US attorney’s office in western New York, accusing him of attempting to murder Mr. Rushdie as an act of terrorism and of providing material support to the armed group Hezbollah in Lebanon, which the US has designated as a terrorist organization.

Mr. Matar is due to face those charges at a separate trial in Buffalo. — Reuters

Manila Water says profit jumped to P10.5B in 2024

MANILA WATER

RAZON-LED Manila Water Co., Inc. reported an attributable net income of P10.5 billion for 2024, up 88% from the previous year, driven by higher revenues from its East Zone concession and substantial contributions from its non-East Zone businesses.

Revenues increased by 19% to P36.6 billion, fueled by higher billed volume and the implementation of tariff adjustments in the East Zone concession and several non-East Zone Philippines businesses, the company said in a media release on Monday. 

The majority of its topline, or P36.65 billion, came from water and wastewater services. 

Meanwhile, costs and expenses rose by 9% to P11.8 billion.

“The solid foundation laid in recent years allowed us to achieve remarkable results in 2024. I am particularly buoyed by the solid growth of our Non-East Zone businesses, which more than tripled earnings to surpass the P2-billion mark,” Manila Water President and Chief Executive Officer Jose Victor Emmanuel “Jocot” A. de Dios said.

Manila Water provides water supply, wastewater, and sanitation services to over 7.3 million customers in 23 cities and municipalities in the East Zone of Metro Manila and Rizal province. 

Outside the East Zone, Manila Water operates in Laguna, Clark, Boracay, and Estate Water. The company said it had “a banner year” in 2024, with earnings surging more than threefold to P2.3 billion from P750 million in the prior year.

“This impressive performance was fueled by an 8% increase in billed volume, tariff adjustments, and stronger contributions from key business units, pushing revenues past P9 billion,” Manila Water said.

On the other hand, its international business recorded lower contributions from minority investments in Thailand and Vietnam. The company said it continues to assess its international portfolio while exploring opportunities for long-term value creation.

For 2024, group capital expenditures reached P26.3 billion, with the East Zone concession accounting for 90% of the total. — Sheldeen Joy Talavera

Exiting the FATF grey list and getting credit ratings to ‘A’

FREEPIK

Last week, on Feb. 21, the Philippines was taken off the Financial Action Task Force’s (FATF) grey list. That is good. The FATF is the global anti-money laundering watchdog, and the Philippines has been on the FATF grey list since June 2021.

Department of Finance (DoF) Secretary Ralph G. Recto is correct in his exuberance saying that “This is a landmark achievement of the Marcos Jr. administration. It’s a seal of good housekeeping that strengthens public confidence in our financial system. This will directly benefit our remitting overseas Filipino workers, businesses, and the Filipino people… we will attract more foreign direct investments and expand more trade partnerships that will help accelerate economic growth. With this momentum, our next goal is clear — a credit rating upgrade within the Marcos Jr. Administration.”

The DoF is a member of the National Anti-Money Laundering (AML) Coordinating Committee (NACC), Counter-Terrorism Financing (CTF), Counter-Proliferation Financing (CPF) — the inter-agency body responsible for overseeing the National AML/CTF/CPF Strategy (NACS) and guiding its implementation across relevant agencies.

On this development, see these related reports in BusinessWorld: “Investor sentiment likely to improve as Philippines is removed from ‘gray list,’” by Luisa Maria Jacinta C. Jocson (Feb. 24), and “Philippines exits global watchdog’s dirty money ‘gray list’” (Feb. 23).

The prevalence of Philippine Offshore Gaming Operators (POGO) in recent years was the main factor for the Philippines’ inclusion in the grey list. The POGOs were involved in lots of money laundering activities, so when President Ferdinand “Bongbong” Marcos, Jr. banned them last year, it was a good move.

The next entry point of big money laundering in the country would be illicit trade in tobacco, oil, jewelry, and other consumer goods — with hundreds of billions of pesos yearly lost in foregone taxes. The government should crack down on these to avoid landing on the grey list again someday.

Recently, both the Bureau of Customs (BoC) and Bureau of Internal Revenue (BIR) issued separate but related statements on illicit trade. “BoC Chief Rubio vows heads will roll after discovery of attempted resale of seized cigarettes” (Feb. 22), and “Commissioner Lumagui orders nationwide destruction of P2.1B worth of illicit cigarettes” (Feb. 24). These statements were about the attempted resale of P270 million worth of BoC-seized contraband cigarettes from Capas, Tarlac, and P2.1 billion of BIR-seized illicit tobacco. These two incidents alone would need large-scale money laundering schemes before the funds could be happily enjoyed by the smugglers and criminal groups. The BoC and BIR are both under the DoF, so they must have seen the Finance department’s clear signal to avoid getting on the FATF grey list again.

GETTING AN ‘A’
The economic team has targeted making the Philippines get an “A” rating from any of the three big ratings agencies — Fitch, Moody’s, and S&P.

I reviewed the latest credit ratings of major East Asian economies. The Philippines is “BBB+ positive” according to S&P or just one step from “A,” is “Baa2 stable” with Moody’s or two steps away from “A3,” and “BBB stable” as per Fitch or two steps from “A-.”

And the Philippines has higher ratings than Thailand and even Italy under S&P. Surprisingly, Vietnam and India, which were the two fastest growing major economies in the world in 2023 and 2024, have lower credit ratings (see the table).

Budget Secretary Amenah F. Pangandaman said in a Viber message that “a Philippines ratings upgrade to ‘A’ from any of those three agencies would mean lower cost of borrowings for us to help finance the budget deficit and finance important social and infrastructure projects.”

This is a reiteration of her previous position as reported here, “Public-finance roadmap to help elevate PHL to ‘A’ credit rating — Budget dep’t” (BusinessWorld, Sept. 17, 2024).

Of course, I would prefer that we significantly cut expenditures, cut the yearly deficit, and hence cut the need for more borrowing whether at low or high interest rates. But in the absence of this scenario, low-cost borrowings via a ratings upgrade to “A” is preferable.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Pueblo de Oro invests P3.7B in Batangas residential project

REAL ESTATE developer Pueblo de Oro has allocated P3.7 billion for the development of a 13-hectare (ha) residential project in Batangas City.

“Pueblo de Oro Westwoods Heights is set to become the preferred address in Batangas City, offering unparalleled accessibility, scenic views, modern amenities, and timeless architecture,” it said in a Feb. 18 statement.

The low-density residential project, located in Barangay Tinga Itaas, Batangas City, is expected to generate approximately P6 billion in revenues, the developer said in an e-mail.

Pueblo de Oro Westwoods Heights will comprise 548 units, including 475 house-and-lot units and 73 open lots. Buyers may choose between single-attached or single-detached homes, both designed for flexibility and customization.

The project’s distinctive house designs and hillside lots maximize scenic views and the natural topography, according to the developer.

The single-attached homes will have a lot area of 88 square meters (sq.m.) and a floor area of 66 sq.m., with a selling price of approximately P4.04 million and a total contract price of P4.81 million.

Meanwhile, the single-detached homes will have a lot area of 110 sq.m. and a floor area of 66 sq.m., priced at P4.48 million, with a total contract price of P5.34 million.

Around 40% of the developable area will be dedicated to open spaces, including pocket parks and roads.

Amenities will include a linear park, a clubhouse with a function hall, an activity room, an administrative and security office, a swimming pool, a children’s playground, a basketball court, and jogging lanes.

“Westwoods Heights is also an idyllic option for families from further south, including Mindoro, seeking a home in Batangas City or near Lipa City,” it said.

The area is less congested than other urban centers in the region while offering access to schools, employment opportunities, and commercial establishments.

Westwoods Heights is strategically situated along the Southern Tagalog Arterial Road (STAR) Tollway, just 2.7 kilometers from Jose P. Laurel Highway, providing convenient access to key cities such as Lipa, Tanauan, and Sto. Tomas.

The upcoming Tinga Itaas Exit is expected to reduce travel time from the STAR Tollway to Tinga Itaas from over 20 minutes to just five minutes, significantly improving connectivity to Metro Manila. — Beatriz Marie D. Cruz

GSIS net income climbs 21% to P135.7 billion in 2024

GSIS FACEBOOK PAGE

THE GOVERNMENT Service Insurance System’s (GSIS) net income from operations climbed by 21% to P135.7 billion in 2024 from P112.1 billion in 2023.

“Total income increased to P326.86 billion, a 10.29% rise year on year, fueled by strong returns on investments and insurance operations,” GSIS said in a statement on Monday.

Gains from its investments included P13.27 billion from foreign exchange, P11.24 billion from global private equity investments through external fund managers, and P3.09 billion from local equity investments, it said.

“We maintain a prudent investment strategy, allocating 70% of our portfolio to government securities and other fixed-income instruments. The remaining 30% is strategically placed in higher-yielding investments, including equities, real estate, and other vehicles, all managed within our strict risk parameters,” GSIS President and General Manager Jose Arnulfo A. Veloso said.

“This balanced approach ensures both stability and growth, supporting our fund life, which extends until 2058.”

It added that its insurance business showed “significant strength” last year, with gross premiums written reaching P10.6 billion, above its P8.5-billion target.

“The organization maintains its position as the largest state insurer, boasting a net worth of P62 billion,” GSIS said.

It also disbursed P179.92 billion in claims and benefit payments.

Meanwhile, administrative expenses went down to P8.92 billion in 2024 from P10.14 billion a year prior. “This improved the administrative cost ratio from 3.7% to 3%, even as GSIS successfully filled 91% of its authorized positions,” GSIS said.

The state-run pension fund’s assets expanded by 9.23% to P1.83 trillion at end-2024. Its financial assets went up by P101.6 billion, while cash and cash equivalents rose by P30.54 billion, it said.

Total loans to GSIS members grew to P370.65 billion in 2024, with a 98.6% loan collection efficiency as of the third quarter.

It disbursed P315 billion in loans to 1.5 million members through its Multi-Purpose Loan (MPL) Flex and Lite programs.

“Beyond the numbers, these programs represent our commitment to provide support at critical moments. Whether it is helping fund a child’s education, addressing urgent medical needs, or ensuring financial stability during challenging times, these loans make a real difference,” Mr. Veloso said.

Meanwhile, it also extended P2.84 billion in assistance via its housing initiatives like the Lease with Option to Buy program.

“The GSIS remained strongly committed to improve lives in 2024… With prudent financial management and strategic investments, the GSIS remains in a strong position to fulfill its mandate, securing the future of its members while strengthening its role in the national economy,” the state pension fund for government workers added. — A.M.C. Sy

Argentina court clears 3 accused in singer Liam Payne’s death

AMAZON.COM

BUENOS AIRES, — An Argentine court has cleared three of the five people accused of their alleged involvement in singer Liam Payne’s death, local media reported on Thursday.

The court dismissed charges against businessman Rogelio Nores, a friend of Mr. Payne’s who reportedly acted as his manager, and two employees of the hotel where Mr. Payne died, according to local outlet Infobae.

The court also upheld the pre-trial detention of an employee of the same hotel and a waiter at a local restaurant, who have been detained since the beginning of last month.

Both are accused of plying Mr. Payne, who shot to fame as part of the boyband One Direction, with cocaine during his stay in Buenos Aires, and face up to 15 years in prison if convicted.

Mr. Payne fell to his death from a hotel balcony in October.

The court did not immediately respond to a Reuters request for comment. — Reuters