BPI targets record profit this year

April 13, 2023 | 12:01 am

BANK of the Philippine Islands (BPI) targets to post another record-high net income this year as it sees strong loan demand despite high interest rates, its top official said.

“That’s the plan. There are good tailwinds. Loan demand continues to be resilient,” BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco told reporters on the sidelines of the launch of the bank’s new mobile application when asked if the bank can beat 2022’s record net profit.

He said BPI’s first-quarter financial performance was “good,” which bodes well for their earnings this year.

BPI booked an all-time high net income of P39.6 billion in 2022, 66% higher from the previous year’s level, driven by strong loan growth, higher net interest margins, and lower loan loss provisions.

Mr. Limcaoco said demand for credit remains strong, even as the Bangko Sentral ng Pilipinas (BSP) has continued to hike benchmark interest rates amid elevated inflation, with loan growth expected to be at around 10% this year.

The BSP has raised borrowing costs by a total of 425 basis points since May 2022, with its key rate now at 6.25%, up from the all-time low of 2% seen during the height of the coronavirus pandemic.

The economy’s reopening will continue to drive loan demand for the first half of the year, but base effects are expected to fade by the second semester, Mr. Limcaoco said.

“You have to remember that Philippine businesses have always been used historically to high rates. It was only during the pandemic when rates really came down. During the pandemic, a few companies took advantage of the low rates,” he said.

“Affordability is still there… The only one where rates have really gone up is I think really credit cards… Even that, we have not seen a rise in NPLs (non-performing loans). People are very judicious about their use of credit, which is good,” Mr. Limcaoco added.

He said the bank’s NPL level is steady and is expected to “settle down, but really driven by the better performance of existing loans and new loans.”

“Since the pandemic ended, our [NPL] cover has continued to rise because we continued to provision without the underperformance,” he said.

NEW APP
Meanwhile, BPI on Wednesday launched its new mobile banking application as it aims to phase out its old app by the second semester.

“We’re proud of the new BPI app, and we know there’s room to continue improving. While we look at the best technology and digital solutions to ensure that we deliver excellent service, we anchor the designed experiences to what our customers need,” Mr. Limcaoco said in a statement.

The new app introduces features such as artificial intelligence-powered insights on spending and saving, BPI Head of Consumer Banking and Executive Vice-President Maria Cristina “Ginbee” L. Go said during the launch event.

It will also allow clients to pre-book branch visits, she added.

“We are likewise transforming our branches into financial advisory centers in new branch formats,” Ms. Go said.

BPI’s shares climbed by P1.65 or 1.65% to close at P101.50 apiece on Wednesday. — A.M.C. Sy

Metro Retail Stores Group, Inc. to hold annual stockholders’ meeting on May 5

April 13, 2023 | 12:01 am

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Video gamers renew legal challenge to Microsoft’s Activision bid after setback

April 13, 2023 | 12:01 am

A GROUP of video gamers on Monday filed a new legal challenge to Microsoft Corp.’s $69 billion bid to buy Call of Duty maker Activision Blizzard, Inc., after a US judge last month rejected an earlier version of the antitrust lawsuit.

US District Judge Jacqueline Scott Corley dismissed the plaintiffs’ first complaint in March after finding it failed to present enough information to back claims the acquisition would harm industry competition.

The judge said at the time the plaintiffs could refile a new suit, which challenges the largest-ever video game industry deal. Amended lawsuits are still subject to court scrutiny and also can be dismissed. The new 73-page lawsuit contained redacted assertions derived from Microsoft internal documents, including a strategy memo and other business reports that were “provided directly to the board of directors.” The complaint also contained information from rival Sony Interactive Entertainment Inc.

Microsoft has denied the gamers’ claims that the proposed transaction, which faces regulatory scrutiny in venues including the US, Europe, and Japan, would curb competition.

A spokesperson for Microsoft in a statement on Tuesday said the amended complaint contained “unsupported and implausible claims about the deal’s effect on competition.” Microsoft said it will “bring more games to more people” through its proposed deal with Activision.

An attorney for the plaintiffs did not immediately respond to a message seeking comment.

US antitrust laws allow private consumers to sue over deals apart from regulatory and enforcement agencies.

Lawyers for Microsoft said in a court filing last week that the gamers’ original case “relied largely on flawed legal arguments based on outdated Supreme Court cases.”

Microsoft’s lawyers also said the plaintiffs “waited 11 months after the transaction was announced to file their lawsuit, and then wasted several additional months filing an implausible complaint.”

The plaintiffs’ lawyers have served subpoenas on companies including Activision and rivals including Nintendo of America, Inc. and Sony.

Ms. Corley is scheduled to meet with the lawyers on Wednesday for a status conference. — Reuters

realme to launch C55 in the Philippines next week

April 13, 2023 | 12:01 am

REALME Philippines is set to launch the latest addition to its C-Series lineup, the realme C55, in the country on April 18.

“Here at realme, we make it a priority to stay committed with our mission to deliver segment-leading features in camera, storage, charging and design. The realme C55’s Mini Capsule is a testament that an elevated yet holistic mobile experience is possible even at an entry-level price point,” Jane Yan, realme Philippines vice-president for Marketing, was quoted as saying in a statement on Wednesday.

“By introducing the realme C55, the brand once again disrupts the entry-level smartphone market with fresh-looking unique designs made available to Filipinos,” the smartphone brand said.

The realme C55 features upgrades to the brand’s C-Series smartphone lineup to improve user experience, it said.

It introduces the Mini Capsule feature, which realme said will make this the first globally mass-produced Android smartphone to have this capability.

“This feature is wrapped around the punch hole of the selfie camera cutout, expanding animation formed into a capsule to help track Charging and Battery Status, Data Cap Usage as well as Step Tracking,” the company said.

The C55 will be the thinnest C-Series phone to date, coming in a 7.89-mm Ultra Slim Design.

“The latest smartphone also features a squared off, boxier design as compared to the realme C33 and realme C35. This enables a comfortable grip and in-hand feeling,” the brand said.

The new phone has a 6.72-inch display, the largest in the C-Series lineup, with an FHD+ resolution. The C55 will also be the first to have a 90Hz refresh rate among realme’s C-Series smartphones.

It features a 64-megapixel (MP) main camera and a 2-MP depth lens, as well as an 8-MP selfie camera.

It is powered by a Mediatek Helio G88 chipset and has a 5,000mAh battery.

The realme C55 comes in three colors: Sunshower, Rainy Night, and Rainforest.

It will be available in two variants: a 6GB memory + 128GB storage model and a 8GB+256GB version.

realme Philippines will hold an exclusive viewing of the C55 at the Clark Aurora Music Festival on April 15-16.

The phone will be launched via livestream on realme’s official TikTok and Facebook accounts on April 18, 6 pm.

The realme C55 is now available for blind pre-order at the brand’s offline stores until April 18.

“To make things more thrilling, the realme C55 blind pre-order customers automatically gets an entry for the freebie giveaway wherein they can win any of the following prizes: realme Pocket Bluetooth Speaker, realme Cobble Bluetooth Speaker, realme Smart TV Stick, realme Hair Dryer, and realme M2 Sonic Electric Toothbrush,” the company said. — Bettina V. Roc

Prime Infra sees 140-MW solar plants in Cavite, Batangas operational by yearend

April 13, 2023 | 12:01 am

PRIME Infrastructure Capital Inc. (Prime Infra) said its 140-megawatt solar power plants in Tanauan, Batangas and Marogondon, Cavite are expected to start operations by yearend.

“Prime Infra continues to address the need for dependable power supply as it aggressively supports the transition to clean energy and a low-carbon economy through our portfolio of renewable energy projects,” Guillaume Lucci, president and chief executive officer of Prime Infra, said in a statement on Wednesday.

Prime Infra, through its unit Solar Tanauan Corp., has started the construction of the 140-MW solar power plants.

The Tanauan and Maragondon solar power plants will have an installed gross capacity of 140-GW, Prime Infra said.

It added that the solar plants yearly generation capacity is at 202 gigawatt-hours, which can provide power to about 84,000 households and reduce 100,000 tons of coal per year.

“Our project here at Solar Tanauan Corporation embodies the values that we, as a company, and I personally align with. We have a strong ESG (environmental, social, and governance) commitment and sustainability focus and as such, our goal is to develop and operate our assets in a socially relevant manner,” said Katrina S. Razon, chairperson of Solar Tanauan Corp.

Prime Infra has a pipeline of renewable energy projects under development with a gross installed capacity of about 5,700-MW of solar power generation, and 4,000-megawatt-hours of energy storage system. — Ashley Erika O. Jose

Griner working on memoir about her ‘unfathomable’ Russian detainment

April 13, 2023 | 12:00 am

AMERICAN basketball star Brittney Griner, who was freed from a Russian penal colony in a high-profile prisoner exchange last year, will share her “harrowing experience” in a memoir to be released next year, publisher said on Tuesday.

Ms. Griner, a two-time Olympic gold medalist and eight-time Women’s National Basketball Association (WNBA) All-Star, was arrested in Feb. 2022 at an airport outside Moscow for carrying vape cartridges containing hashish oil in her luggage.

She was subsequently convicted of drug smuggling and later transferred to one of Russia’s most notorious penal colonies, where former inmates have described torture, harsh beatings, and slave labor conditions. Mr. Griner was released last December in a prisoner swap for Russian arms dealer Viktor Bout, a deal that was arranged after months of talks during a time of high tension between the two countries after Russia’s Feb. 2022 invasion of Ukraine.

“That day (in February) was the beginning of an unfathomable period in my life which only now am I ready to share,” Ms. Griner said in a news release.

The memoir will also address the issue of pay inequity for women athletes in the United States, which led Ms. Griner to play basketball in Russia during the WNBA off-season.

“The primary reason I traveled back to Russia for work that day was because I wanted to make my wife, family, and teammates proud. After an incredibly challenging 10 months in detainment, I am grateful to have been rescued and to be home,” she said.

“Readers will hear my story and understand why I’m so thankful for the outpouring of support from people across the world.”

Ms. Griner said she hopes the memoir, which will have a co-writer, can help raise awareness surrounding other Americans wrongfully detained abroad. Ms. Griner signed a one-year contract in February to resume playing for the WNBA’s Phoenix Mercury, who are schedule to open their 2023 season on May 19 in Los Angeles against the Sparks.

At the Mercury home opener on May 21, the team plans to honor her return ahead of the game against the Chicago Sky.

The 32-year-old Ms. Griner last played for the Mercury in the 2021 WNBA season, when she had one of the best years of her career, averaging 20.5 points, 9.5 rebounds, and 2.7 assists over 30 games. — Reuters

Philippines’ progress toward low-carbon future improves

April 13, 2023 | 12:00 am

The Philippines garnered an overall score of 4.56 out of possible 10, inching up by 0.19 point from 4.37 recorded in 2022, in the third edition of Green Future Index (GFI) by MIT Technology Review Insights. However, this was below the global average score of 4.79. Despite this, the Philippines’ overall rank rose nine notches to 44th place out of 76 countries in the index.

How PSEi member stocks performed — April 12, 2023

April 13, 2023 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Wednesday, April 12, 2023.

Peso sinks to P55 level ahead of US CPI data

April 12, 2023 | 9:00 pm

THE PESO dropped further against the dollar on Wednesday, returning to the P55 level for the first time in over a month, ahead of the release of US consumer price index (CPI) data and following mixed remarks from some US Federal Reserve officials.

The local unit closed at P55.22 against the dollar on Wednesday, depreciating by 29 centavos from its P54.93 finish on Tuesday, Bankers Association of the Philippines’ data showed.

This is the peso’s weakest close since its P55.24-per-dollar finish on March 9.

The local currency traded weaker against the dollar the entire day, opening Wednesday’s session at P55.05 versus the dollar. Its worst showing was at P55.24, while its intraday best was at P55 against the greenback.

Dollars exchanged declined to $935.98 million on Wednesday from the $1.143 billion recorded on Tuesday.

“The local currency weakened due to some market caution ahead of the US consumer inflation report tonight. The peso is expected to be influenced by the said report in tomorrow’s trading,” a trader said in an e-mail on Wednesday.

Markets are anticipating crucial US inflation data, which could give signals on how soon the Federal Reserve will end its aggressive rate hikes, Reuters reported.

After Friday’s jobs report showed a resilient US labor market, emboldening bets of a 25-basis-point (bp) hike at the Fed’s next meeting in May, investor attention is firmly on the March inflation report due later in the day.

The CPI is expected to show core inflation, which excludes volatile food and energy prices, at 0.4% on a monthly basis and 5.6% year over year in March, according to a Reuters poll, which would mark a rise from February’s 5.2% in a headache for the Fed.

“The peso exchange rate was again higher for the second straight day after mixed signals from Fed officials, mostly hawkish, but not all, increased market expectations for another 25-bp Fed rate hike,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message on Wednesday.

A raft of Fed speakers on Tuesday offered little guidance on how much further US interest rates would rise. New York Fed President John Williams said it depended on incoming data.

Philadelphia Fed Bank President Patrick Harker said he felt that the end of rate hikes may be near, while Chicago Fed President Austan Goolsbee said that the US central bank should be patient about raising interest rates in the face of recent banking sector stress.

The Fed has raised rates by 475 bps since March 2022. It is scheduled to meet on May 2-3 to discuss policy.

For Thursday, the trader said the peso could move from P55 to P55.25 per dollar, while Mr. Ricafort gave a forecast range of P55.10 to P55.30. — L.M.J.C. Jocson with Reuters

Shares decline further ahead of US inflation data

April 12, 2023 | 9:00 pm

PHILIPPINE SHARES continued to decline on Wednesday ahead of the release of March US consumer inflation data overnight.

The benchmark Philippine Stock Exchange index (PSEi) declined by 10.21 points or 0.15% to close at 6,469.42 on Wednesday, while the broader all shares index fell by 4.59 points or 0.13% to end at 3,475.27.

“The local bourse declined by 10.21 points (0.15%) to 6,469.42 amid dismal local economic data while waiting for the US inflation rate,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“At home, the drop in foreign direct investments (FDI) net inflow in January year on year, as well as the decline in imports and exports in February, which indicate a weakened demand both domestically and internationally, had a negative impact on investor sentiment,” Ms. Alviar said.

FDI net inflows declined by 45.7% to $448 million in January from $824 million in the same month last year, data from the Bangko Sentral ng Pilipinas (BSP) released on Tuesday showed. This was the lowest monthly inflow since the $426 million recorded in May 2021.

Meanwhile, the country’s trade deficit narrowed to $3.88 billion in February from the $5.73 billion in January, preliminary data from the Philippine Statistics Authority released on Tuesday showed.

“The local stock market gauge, the PSEi, again declined for the second straight day… partly taking cues from the overnight performance in the US stock markets, which were mixed,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Wall Street stocks ended mixed on Tuesday, losing steam late in the session as investors awaited crucial inflation data and the unofficial kickoff of first-quarter reporting season, Reuters reported.

The Dow Jones Industrial Average rose by 98.27 points or 0.29% to 33,684.79; the S&P 500 lost 0.17 point to end at 4,108.94; and the Nasdaq Composite dropped by 52.48 points or 0.43% to 12,031.88.

On a monthly basis, analysts see the headline and core consumer price index cooling to 0.2% and 0.4%, respectively. But year on year, while consensus estimates call for a significant drop in the headline number to 5.2% from 6.0% the core measure is expected to rise to 5.6% from 5.5%.

Back home, sectoral indices were split on Wednesday. Holding firms declined by 39.28 points or 0.62% to 6,300.19; property fell by 13.41 points or 0.49% to 2,698.54; and industrials went down by 15.02 points or 0.16% to 9,262.06.

Meanwhile, mining and oil went up by 202.96 points or 1.89% to 10,905.98; financials rose by 7.29 points or 0.4% to 1,811.48; and services climbed by 3.11 points or 0.19% to close at 1,599.59.

Value turnover rose to P7.22 billion on Wednesday with 1.01 billion shares changing hands from the P5.37 billion with 1.22 billion issues traded on Tuesday.

Decliners and advancers were even at 88 each, while 57 names closed unchanged.

Net foreign buying increased to P666.60 million on Wednesday from P56.12 million on Tuesday. — A.H. Halili with Reuters

Unsolicited railway proposals in the works for 2 commuter lines

April 12, 2023 | 8:18 pm

THE Department of Transportation (DoTr) said on Wednesday that it has received unsolicited proposals for two commuter rail systems for Metro Manila, which it plans to evaluate within the year.

“We are in the process of identifying other railway lines. There are four operating lines now, the next operating line will be MRT-7 (Metro Rail Transit Line-7),” Transport Secretary Jaime J. Bautista said on the sidelines of the General Membership Meeting of the Management Association of the Philippines.

The active commuter rail lines in Metro Manila are Light Rail Transit Lines 1 and 2, MRT-3, and the Philippine National Railway’s lines serving the capital.

Mr. Bautista said that the DoTr received proposals for MRT-11 and an MRT line along the C5 road. He did not disclose the proponents.

The unsolicited proposal for MRT-11 will run between Monumento in Caloocan and San Jose del Monte, Bulacan, while the line along C5 road will run from the airport to Taguig.

Mr. Bautista said the department hopes to evaluate the build-operate-transfer proposal for the MRT-11 project within the year, noting that it is waiting for additional submissions from the proponent, a domestic company, within the week.

“If the documents are complete, we will review it. And since it’s an unsolicited proposal, it will be subject to a Swiss Challenge,” he added.

The DoTr seeks to grant original proponent status for MRT-11 by 2024. It is waiting on the completion of the proposal for the railway line along C5 road.

Aside from these two railway lines, Mr. Bautista said that there are plans to add another line in Cavite, an extension railway to Batangas, and train systems in Leyte, Panay, and Cebu.

Meanwhile, Mr. Bautista said that the department is finalizing the feasibility studies for the Manila Bay, Pasig and Laguna de Bay Ferry System.

The ferry system is expected to operate along the Pasig River and on Laguna de Bay and is designed to mitigate road congestion in Metro Manila.

“This is part of the 71 projects of DoTr which were submitted to the National Economic and Development Authority. We hope we can implement this before the end of the term of President Ferdinand R. Marcos, Jr.,” Mr. Bautista said. — Justine Irish D. Tabile

PHL pork import forecast downgraded on weak demand

April 12, 2023 | 8:17 pm

PHILIPPINE pork imports will be lower than initially expected this year due to weak domestic demand and high international prices, the United States Department of Agriculture (USDA) said.

In a report, the USDA estimated Philippine pork imports at 525,000 metric tons (MT), down 12.5% from its previous forecast issued earlier in 2023.

The USDA said the forecast was revised due to the “effects of food inflation, which leaves little purchasing power for pork.”

In December, President Ferdinand R. Marcos, Jr. signed Executive Order No. 10, which extended the reduced most-favored-nation tariff rates on fresh, chilled, or frozen meat at 15% (for shipments within the quota) and 25% (for shipments exceeding the quota).

The USDA forecast domestic pork production at 975,000 MT, exceeding the 2022 level but lower than 1 million MT produced in 2021, following the resurgence of African Swine Fever (ASF) in Luzon and Mindanao.

It cited the recent ASF outbreaks in Cebu province — a major supplier of pork to Metro Manila — and in the Bangsamoro Autonomous Region in Muslim Mindanao.

The National Capital Region is the only region which is ASF-free.

Earlier, the Department of Agriculture (DA) projected a shortfall of pork this month based on its inventory estimates.

According to the USDA, the price of imported pork remained significantly lower than domestic pork prices.

On Wednesday, the DA’s monitoring reports indicated that markets in Metro Manila sold pork belly (liempo) for between P340 and P420 per kilogram while pork shoulder (kasim) commanded P310-P360.

The USDA estimated chicken imports and production to increase 520,000 MT and nearly 1.48 million birds, respectively, citing “shifting demand from pork and eggs.”

The prolonged ASF outbreak and the decline in egg production due to the Highly Pathogenic Avian Influenza (HPAI) has created opportunities for the chicken industry, it said.

“With the egg industry also taking a big hit from HPAI, chicken is the next available less expensive protein source,” the USDA said.

“Small victories were recorded in provinces like South Cotabato, Quezon, and Rizal, which were declared HPAI-free,” it added.

The USDA noted the decline of chicken prices since December, which it attributed to “the cyclonical nature of chicken consumption.”

The price of whole chicken runs between P150 and P200 per kilogram, according to the DA. — Sheldeen Joy Talavera