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FEU to acquire 34% of Good Samaritan Colleges

BW FILE PHOTO

FAR Eastern University, Inc. (FEU) is set to acquire 34% of the outstanding capital stock of Good Samaritan Colleges, Inc. at a subscription price of P70 million upon the completion of all closing conditions.

In a disclosure on Thursday, FEU said that it signed an investment agreement with Good Samaritan Colleges for the acquisition of 77,273 shares. The shares were priced at P100 apiece, which was calculated using the earnings before interest, taxes, depreciation, and amortization of Good Samaritan Colleges.

Back on Aug. 16, FEU disclosed that its board of directors approved its equity investment in the college. The target educational institution offers junior and senior high school, tertiary, and graduate school education in Cabanatuan City, Nueva Ecija.

FEU is a majority shareholder of East Asia Computer Center, Inc., FEU Alabang, Inc., Far Eastern College Silang, Inc., FEU High School, Inc., and Roosevelt College, Inc.

It is a major shareholder of Fern Realty Corp., which helps FEU schools in their real estate requirements.

FEU also owns 51% of Edustria, Inc., a joint venture with the Technological Institute of the Philippines. The joint venture operates a high school under the same name in Lipa City and Malvar, Batangas.

On the stock exchange on Thursday, FEU shares declined by 3.55% or P19.50 to P530.50 apiece. — Justine Irish D. Tabile

B.B. King’s guitar, Marilyn photos up for auction in New York

LIVEAUCTIONEERS.COM
LIVEAUCTIONEERS.COM

ECLECTIC objects from pop culture and history, including a guitar owned by blues legend B.B. King and early photos of film star Marilyn Monroe, will be up for sale at Guernsey’s auction house in New York next month.

“It’s an auction of iconic objects, things that may have no relation to one another… What they do have in common is that in one way or another, they are pretty remarkable — whether they relate to a famous incident or a famous person,” said Arlan Ettinger, Guernsey’s founder and president.

B.B. King’s very first and never-seen-before guitar is among the lots. Other items coming directly from the estate of King, who died in 2015, include handwritten music, an African tribal drum given to him by former South African leader Nelson Mandela, and a half dozen stage-worn jackets.

Photos from Marilyn Monroe’s first-ever photo shoot are also included in the sale, which come with an interesting backstory.

“In 1945, Captain Ronald Reagan of the US Army asked a private in the Army to go photograph attractive ‘Rosie the Riveter’-type young woman working at the local war plant… This is one of the original photographs. That woman… became the great and legendary Marilyn Monroe,” Ettinger explained, while holding one of the photos.

Also included in the 120-lot sale are sports items from US baseball star Mickey Mantle, as well as jazz singer Billie Holiday’s passport and fur wrap.

Historic lots include an engine telegraph used aboard the USS St. Louis and a sword that was on display while President John F. Kennedy’s body laid in state at the White House.

Proceeds from a sale of tools used at the site of the World Trade Center attacks in New York in September 2001 will go to benefit the online 9/11 Tribute Museum.

The auction will take place online at LiveAuctioneers.com and invaluable.com on Sept. 21. — Reuters

SFA Semicon told to settle P1.5-M fine in case vs OMB

SFA Semicon Philippines Corp. disclosed on Thursday that it was told to settle an administrative fine of P1.5 million following the receipt of a resolution from the Optical Media Board (OMB).

Under the case of OMB versus SFA Semicon or Administrative Case No. 2021-04-0177, the company was tried for alleged noncompliance with its licensing requirements under Republic Act (RA) No. 9239 or the Optical Media Act of 2003.

On June 17, 2021, SFA Semicon submitted a position paper ad cautelam stating that its blank memory chips, memory modules, and memory cards are neither optical media nor magnetic media devices.

According to RA 9239, optical media refers to devices containing sounds, images, and/or software code that has been stored, either by mastering or replication that may be accessed and read using a lens scanning mechanism employing a high-intensity light source.

A magnetic media device refers to a storage device characterized by a base, coated with ferric oxide powder, in which visual information or software code may be stored including but not limited to magnetic tapes, cassettes, video tapes, diskettes, and floppy discs.

SFA Semicon further said that since its blank memory chips, modules, and cards are neither of the two stated media, it is not regulated under RA 9239.

The OMB resolution, which was received by SFA Semicon on Tuesday, states that the company has 30 days upon receipt to settle the P1.5-million administrative fine. It also sets a 15-day period to complete registration and licensing requirements with the OMB.

“SSP will take the necessary or appropriate actions related to this resolution,” the company said in its disclosure on Thursday.

On the stock market, SFA Semicon shares climbed by 2.74% or P0.04 to P1.50 apiece. — Justine Irish D. Tabile

Higher tech content in agri demands skills upgrades

REUTERS

TECHNICAL SKILLS among agricultural workers need to be upgraded to make the industry future-ready and more attractive to tech-savvy younger people, the Philippine Chamber of Commerce and Industry (PCCI) said.

“What we have seen in agricultural processing plants is the need to prioritize both the volume of agricultural output and worker skills. We know that skills are important in everything,” PCCI President George T. Barcelon said.

“We’d really like to attract younger people into the sector. To attract them, we must make agriculture relevant. It should be updated with the latest technologies because international agricultural standards are now using electronics and the Internet of Things (IoT),” he added.

Mr. Barcelon made the remarks as PCCI Human Resources Development Foundation, (HRDF) Inc. was launching a study on developing the workforce for the fruit and vegetable processing industry, supported by the Australian Government and implemented by Philippine Business for Education (PBEd).

According to PBEd, skills upgrades are “in line with the Philippine government’s priority to improve the agriculture sector through collaboration between the government and private stakeholders.”

Australian Embassy Deputy Head of Mission Richard Sisson said that the Australian government supported the study to ensure that Philippine industries and the workforce are prepared for the future. 

“This labor market intelligence study focuses on an important agricultural sector, the fruit and vegetable processing sector, and we are very happy to see strategies developed from the study recommendations,” Mr. Sisson said.

“Agriculture is a priority for the Philippines, and we are happy to contribute to its development,” he added.

Among the key recommendations of the study are incorporating digital solutions, warehousing and logistics, and soft skills into training programs for the industry.

For the current workforce, employers should also enroll employees for career development as well as the overall development of the industry, according to the study.

“As the country recovers from the pandemic, our efforts should focus on strengthening the country’s agriculture sector to ensure that our people have food on the table. We propose creating a human resource training plan for the fruits and vegetables processing sector,” HRDF President Alberto P. Fenix, Jr. said.

“We believe that a skilled and qualified workforce is an imperative for the growth and development of any sector or industry,” he added.

PBEd said that the next step is to roll out the study’s results to various parts of the country within the year to gather other possible inputs from stakeholders. — Luisa Maria Jacinta C. Jocson

What to see This Week (08/26/22)

A SCENE from the film Beast

Beast 

DR. NATE Daniels, who grew up in South Africa, left the savannah to build a new life in the United States with his wife. After his wife’s death, he returns to his homeland with his two daughters to pay homage to his late wife, feeling his life finally coming in full circle. While visiting his friend’s game reserve, father and daughters find themselves trapped with only instincts to guide them. Directed by Baltasar Kormákur, the film stars Idris Elba, Sharlto Copley, Iyanah Halley, and Leah Jeffries. Rolling Stone’s David Fear writes, “You could do worse than handing this assignment to a director like Baltasar Kormákur, who seems to thrive when given stories involving survival (The Deep, Adrift, Everest) and men having their mettle tested overall (Contraband, 2 Guns). He’s also good at distracting you with technical bells and whistles, as when the party stumbles across an abandoned village that turns out to be a crime scene. His camera doesn’t just record the aftermath of a slaughter; it slithers, creeps, glides, and stalks its way around the carnage in a way that feels downright predatory.” Film reviews aggregate site Rotten Tomatoes’ Tomatometer gives it a rating of 66% and an audience score of 76%.   

MTRCB Rating: R-13

The Invitation 

AFTER the death of her mother and having no other known relatives, a woman takes a DNA test and discovers a long-lost cousin. Invited by her newfound family to a lavish wedding in the English countryside, she’s at first seduced by the aristocrat host but is soon thrust into a nightmare of survival as she uncovers twisted secrets in her family’s history and the unsettling intentions behind their sinful generosity. Directed by Jessica M. Thompson, the film stars Nathalie Emmanuel, Thomas Doherty, Hugh Skinner, Sean Pertwee, Stephanie Corneliussen, and Alana Boden.     

MTRCB Rating: R-13

Trade department urges education industry to offer degrees in less time

PHILSTAR

EDUCATIONAL institutions should work to reduce the time needed to earn degrees to push students into the workforce faster, the Department of Trade and Industry said.

“The trend now in higher education is to shorten the number of years needed to get a college degree. In some countries who have successful K to 12 programs, they award a college degree in two or three years, in Singapore and other countries… We have to move towards that direction,” Trade Secretary Alfredo E. Pascual told the 43rd National Conference of Employers (NCE) organized by the Employers Confederation of the Philippines in Pasay City on Wednesday.

Mr. Pascual, a former University of the Philippines system president, called for the curriculum to be reworked to favor training in specific skills.

“There should be no more general education courses in college. General education courses should be taken care of in the K to 12 curriculum. Then in college, focus only on the major subjects. They have to be focused and job-oriented. We need to orient our graduates towards specific skills required by jobs,” he added. 

The K to 12 program (Kinder to Grade 12), rolled out during the 2012-2013 school year, added two years to secondary education to make graduates ready to enter the workforce if they so choose.

Mr. Pascual said employers should invest in developing skills as the benefits of the K to 12 program have yet to be fully felt.

“I think the employers should invest in the training of our people. We know very well that our educational system has yet to be reoriented towards the skills needed in our time. It is behind. We need digital skills, but these are not yet being developed,” Mr. Pascual said.  

“Basic education was supposed to produce graduates that are technically qualified to work. But it has not happened for many reasons, including the availability of competent teachers. It will take a long time for this to be solved,” he added.

Asked to comment, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the education system needs to remain competitive and to adapt to the requirements of the global labor market.

“In view of the changing economy and work environment amid increased digitalization, the educational system needs to constantly adapt and better prepare students to remain competitive and align with global best practices as well,” Mr. Ricafort said.

George T. Barcelon, Philippine Chamber of Commerce and Industry president, said during an interview on the sidelines of the NCE that he supports Mr. Pascual’s proposal.

“What I think we need is the skills. I do believe that the way we teach can be shortened,” Mr. Barcelon said.

Makati Business Club Executive Director Francisco Alcuaz, Jr. said that college can help students hone the skills needed for their chosen careers.

“There are different educational and training paths depending on individuals, industries, and careers. Some do focus more exclusively on skills for specific jobs,” Mr. Alcuaz said.

“But there is a lot of feedback that citizens and workers across the spectrum lack communication, comprehension, reading, and critical thinking skills that help in getting hired, doing the job, and being a more productive member of society. These skills can be deepened in college, and college students probably need to deepen these skills for the careers they aspire to,” he added.

Rene E. Ofreneo, professor emeritus at the UP School of Labor and Industrial Relations, said in a mobile phone interview that the proposal should be further studied.

“We don’t have a developed industrial base. What we have is a service-oriented economy. Most of those in the services are Filipinos who are not college graduates. I suggested that the proposal be studied more,” Mr. Ofreneo said.

“We should look at both the supply and demand sides. Right now, four out of five in the labor force are actually in the informal sector,” he added. — Revin Mikhael D. Ochave

Sheraton Manila Hotel occupancy on ‘upward trajectory’

SHERATON MANILA Hotel has posted better occupancy this year as the travel industry continues to recover, its manager said, adding that further improvement is expected as the holiday season approaches.

“Occupancy-wise, I think we’re getting there. We can be busier. But the good thing is it’s actually starting to come,” Anna Liza Vergara, Sheraton Manila Hotel general manager, said on the sidelines of the 120th anniversary event of the American Chamber of Commerce of the Philippines in Pasay City on Wednesday.

“Our average occupancy is heading towards an upward trajectory,” she said, without disclosing specific figures.

Ms. Vergara said that the hotel is hoping to have more international travelers, saying that the segment poses a “very good opportunity.”

“The opportunity right now is focusing more on the local market,” she said, adding that the biggest opportunity “is to be able to really open travel so that we can have international travelers, international meetings, incentives, conferences, exhibitions (MICE) to come in because obviously there’s very good opportunity there.”

She said Sheraton Manila Hotel is expecting a rise in occupancy as the holiday season nears.

“The potential is there. The market is dying to go out. So I think the market is ready, while the hotels have always been ready,” Ms. Vergara said. “It will definitely be better this coming holiday season.”

Meanwhile, Ms. Vergara disclosed that the hotel opted not to increase its food prices amid the ongoing tight supply and high prices of sugar in the country.

“We try not to sacrifice food quality, especially for hotels. People normally would pay a premium when they dine in hotels. So sacrificing food quality is not the right direction. But we are finding that there’s still a good number of people that are willing to pay a little bit more to be able to enjoy hotels,” Ms. Vergara said.

Sheraton Manila Hotel, which opened in 2019, has 390 rooms. It is located at the Resorts World Manila complex in Pasay City. The hotel is part of the international brands under Travellers International Hotel Group, Inc., the leisure unit of Andrew L. Tan-led Alliance Global Group, Inc. — Revin Mikhael D. Ochave

Term deposit yields rise as BSP hikes rates further

BW FILE PHOTO

TERM DEPOSIT yields climbed on Thursday after the Bangko Sentral ng Pilipinas (BSP) raised benchmark rates anew last week and amid the government’s retail Treasury bond (RTB) sale.

Demand for the BSP’s term deposit facility (TDF) totaled P320.442 billion on Thursday, higher than the P200 billion on the auction block. This also surpassed the P290.814 billion in bids logged last week for a P290-billion offer.

“The BSP lowered the TDF offer volume to P200 billion, from P290 billion last week to give way to the Bureau of the Treasury’s retail Treasury bonds offering…,” BSP Deputy Governor Francisco G. Dakila, Jr. said in a statement on Thursday.

The central bank also offered shorter tenors this week following a work suspension on Wednesday.

Broken down, the six-day term deposits attracted tenders amounting to P182.573 billion, surpassing the BSP’s P120-billion offering. However, this was below the P204.946 billion in bids recorded the prior week for the seven-day tenor.

Rates for the six-day papers ranged from 3.54% to 3.9%, wider and higher than the 3.49% to 3.75% range logged the previous week. This brought the average rate for the tenor to 3.7876%, inching up by 9.63 basis points (bps) from the 3.6913% seen on Aug. 17.

For the 13-day deposits, bids hit P137.869 billion, going beyond the P80-billion offering and the P85.868 billion in demand seen a week ago for the 14-day papers.

Accepted yields were seen from 3.6% to 3.95%, widening and rising from the 3.48-3.75% band logged the previous week. This brought the average rate of the two-week deposits to 3.8099%, up by 10.8 bps from the 3.7019% recorded the prior week.

The central bank has not auctioned off 28-day term deposits for more than a year to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

“Both tenors were oversubscribed with bid-to-cover ratios at 1.52x and 1.72x the respective offer volumes in the 6-day and 13-day tenors. Total tenders received amounted to P320.442 billion, well above the expected range of the BSP,” Mr. Dakila said.

“The results of the TDF auction show that, despite today’s oversubscription, overall short-term liquidity in the financial system is relatively lower, brought on by the government’s fundraising activities as well as higher loan releases among counterparties. Looking ahead, the BSP will continue to carefully assess the latest liquidity conditions and market developments in its monetary operations,” he added.

Yields on the term deposits climbed after the BSP raised benchmark interest rates by 50 bps last week and signaled gradual hikes in the coming months, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Recent signals of a delay in the BSP’s planned cut of banks’ reserve requirement ratio (RRR) also caused TDF yields to rise, Mr. Ricafort added.

The central bank’s policy-setting Monetary Board last week raised borrowing costs by 50 bps and signaled it has room to further hike rates as it battles inflation. It has increased rates by a total of 175 bps so far this year.

Headline inflation rose by 6.4% year on year in July, the fastest in nearly four years and exceeding the central bank’s 2-4% target band for a fourth straight month. This brought the seven-month average to 4.7%, still below the BSP’s full-year forecast of 5.4%.

BSP Governor Felipe M. Medalla last week said they will need to respond if the US Federal Reserve’s tightening continues to be aggressive. The US central bank has raised rates by 225 bps since March, including back-to-back 75-bp increases in June and July.

He said the BSP will consider a pause in rate hikes if the Fed makes “very mild” increases in its next meetings or if the US goes into a “fairly deep recession”.

The BSP Monetary Board has three reviews left for the year scheduled on Sept. 22, Nov. 17 and Dec. 15.

Meanwhile, the Fed’s policy-making Federal Open Market Committee will next meet on Sept. 20-21. Its other remaining reviews for this year are set on Nov. 1-2 and Dec. 13-14.

Meanwhile, Mr. Medalla also said last week the BSP will postpone its plan to further reduce banks’ RRR, which he earlier said could happen by the end of the year.

The BSP wants to bring down the level of deposits banks are required to keep with the regulator to single-digit level by 2023. The RRR for big banks is currently at 12%, one of the highest in the region, while reserve requirements for thrift and rural lenders are at 3% and 2%, respectively.

Term deposit yields also climbed as the offer period for the government’s RTBs began on Tuesday, Mr. Ricafort said, as the offering “could siphon off some of the excess liquidity in the financial system and somewhat add to the supply of government securities in the market.”

The government on Tuesday raised an initial P162.72 billion from the price-setting auction for its offer of 5.5-year retail bonds as tenders reached P225.32 billion, or more than seven times the P30-billion plan.

The retail bonds fetched a coupon rate of 5.75%, higher than the 4.875% set for the five-year RTBs offered in March.

The offer period for the peso-denominated debt maturing in 2028 is from Aug. 23 to Sept. 2, while settlement is on Sept. 7. — Keisha B. Ta-asan

Senate bill sets out incentive scheme for companies enabling tech-voc training

PHILSTAR FILE PHOTO

A BILL seeking to better match technical and vocational (tech-voc) education and training to the needs of the job market has been filed in the Senate, granting tax deductions to companies that offer apprenticeship-style training.

Senate Majority Leader Emmanuel Joel J. Villanueva said his Senate Bill 363, or the proposed Enterprise-based Education and Training to Employment Act, seeks to introduce an apprenticeship and dual training system to better prepare trainees for the workforce.

Enterprises that organize and implement enterprise-based training will be eligible for additional deductions against taxable income equivalent to 75% of the training expenses incurred; with donations, contributions, subsidies, bequests, or financial aid extended to a participating training institution fully deductible from gross income and exempt from donor’s tax.

“The bill can help the government continue to meet the changing needs of the market and put in place good governance mechanisms that can expand partnership with industry associations and companies through enterprise-based training,” he said.

Strengthening private sector participation through a national enterprise-based training system will resolve the job-skills mismatch and ensure the adequate supply of workers with skills vital to industry, he added.

The bill contemplates trainees who are high school graduates or the equivalent, and tested for vocational aptitude and capacity, and the ability to comprehend and follow oral and written instructions.

Participating enterprises are required to register their programs with the Technical Education and Skills Development Authority (TESDA) before entering agreements with trainees.

Participating employers must also establish an Enterprise-Based Education and Training Committee which will monitor and recommend measures for effective program implementation, and settle differences between management and trainees.

No enterprise will be allowed to engage trainees beyond 20% of the total number of regular employees. Trainees must also be given appropriate life and accident insurance, free of charge.

Every four years after the effectivity of the law, TESDA must conduct a review of its implementation, accomplishments and recommendations for further improvement.

Mr. Villanueva pushed employers and companies to invest in technical vocational graduates, noting that “our technical vocational education is among the best in the world” as “we have a pool of talent that can get every job done.” — Alyssa Nicole O. Tan

Stuff to do (08/26/22)

Sweet Escape dessert fair at SHANGRI-LA Plaza

Shang holds Sweet Escape dessert fair

SHANGRI-LA Plaza wraps up a #DealightfulAugust with the sweetest event of the year at the Sweet Escape, a dessert fair whipped up in partnership with The Honest Harvest community market. It is being held at the mall’s Grand Atrium on Aug. 25-28 and will feature everything from cotton candy sculptures to Filipino desserts. Among the participants are Lollipuffs Cotton Candy, Zachy’s Pastillas (with flavors like milky, ube, mango, and buko pandan and unique offerings like avocado, matcha, strawberry, cookies and cream, and chocolate mint), Homemade by Rita (mini pecan pies), The Creamery Catering (Filipino desserts in tubs like Hot Taro Sago, AvoCoco, and Coffee Jelly); C&M Coffee; Auntie Anne’s; Big Chill (healthy juices and smoothies), and Gorae (Korean-style hotdogs and bungeoppang or fish-shaped pastries stuffed with sweet filling). These are just a part of the entire dessert spread that guests can taste at the #SweetEscapeattheShang. More merchants that serve other types of sweets like doughnuts, cookies, tarts, chocolate truffles, and other baked goods and other treats. For updates and inquiries, follow Shangri-La Plaza on Facebook at www.facebook.com/shangrilaplazaofficial and on Instagram @shangrilaplazaofficial.  

Rustan’s online anniversary sale

LUXURY retailer Rustan’s marks its 70th anniversary this month. Celebrations include in-store events, special anniversary offers, new brands and collections, and a weekend-long sale exclusively at Rustans.com on Aug. 27 to 28. On that weekend, Rustan’s brings the anniversary celebration online offering a selection of brands and merchandise from fashion, fine jewelry, beauty, kids, and home, while treating customers with limited offers and promotions of up to 50% off on selected items. The online sale features 100+ products from Rustans.com’s top brands including Longchamp, Kate Spade New York, SPANX, Michael Kors, Furla, Samsonite, Bally, Superga, Montblanc, Maison Margiela, Estée Lauder,  L’Occitane, Shiseido, Tefal, Breville, and Pyrex. Women will find brands like Anne Klein, Kurt Geiger, LeSportsac, Coccinelle, Triumph, and HOFF with merchandise up to 30% off, while Rustan’s Private Brands Lady Rustan, Luna, and Lotus Resortwear are offering 15% off on regular-priced items. For a little self-care, there are numerous offers and complimentary gifts from the likes of Jo Malone London, La Mer, Viktor&Rolf, Kanebo, Perricone MD, Anastasia Beverly Hills, Murad, and Mario Badescu. For men, brands on sale up to 25% off include Jack Nicklaus, Cross, Hackett, American Tourister, Kenneth Cole, and Dune London. Silver Vault brands have a special offer for customers. Lacor, Cuisinart, Corelle, TruSens, and AirMaster also have offers for the home. Find gifts for children with sale items from Jellycat, Melissa & Doug, Malabar Baby, Baa Baa Sheepz, and Bonjour Baby offering items up to 50% off. Spend a minimum of P30,000 and receive free Philips Audio True Wireless Earbuds. Customers will also be treated to 10% off and free shipping when their purchases reach a minimum spend of P2,000 after using the exclusive codes provided by banks BDO, BPI, Chinabank, EastWestBank, HSBC, PNB, RCBC, and Security Bank. Discounts are capped at P1,000. For more information visit rustans.com.  

Woven Networks holds forum

WOVEN Networks Sharing Sessions is an online webinar happening on Aug. 30 to Sept. 2 featuring craft changemakers from the Philippines and the UK. Speakers will present stories and findings from Woven Networks, a research grant program aiming to grow forest resources and livelihood by strengthening the role of artisans in sustainable development. Malaya del Rosario, Head of Arts at the British Council, said in a statement: “In partnership with the Forest Foundation, we awarded grants to trusted intermediaries — designers, academics and development experts. We were able to map 15 craft communities in the Philippines, from weaving cooperatives in Isabela to the indigenous Higaonon weavers in Bukidnon.” The grantees also involved artisans, foresters and UK-based counterparts in their projects. Representatives from Panublix Social Enterprise, University of Santo Tomas, and the Royal College of Art in London, among many others, will also be speaking at the event. The webinar will culminate on Sept. 2 with the launch of the virtual exhibition, “From land to loom, from fibre to form: Woven Networks research projects,” curated by Tessa Maria Guazon. It will celebrate program highlights and feature objects from the National Museum of Anthropology collection. The four-day webinar is free but registration is required via the British Council Philippines’ webpage. It will be held on Aug 30 to Sept. 2 via Zoom from 4 to 5:30 p.m. (PH) / 9 a.m. to 10.30 a.m. (UK). For more information, e-mail at Arts@britishcouncil.org.ph.   

Paws N’ Play in UP Town Center

AYALA MALLS is using its platform and facilities to support animal welfare through Paws n’ Play, the mall’s annual pet festival at UP Town Center (UPTC). Now in its 5th year, Paws n’ Play continues to promote humane treatment for animals through pet fairs, dog obedience training sessions, and workshops on responsible pet ownership. The festival begins in August and will run until October on the weekend before World Animal Day. Ayala Malls partnered with the Quezon City Local Government to launch the two-month long festival Paws n’ Plays Year 5 to support five groups: Philippine Animal Welfare Society (PAWS); CARA Welfare; the Philippine Pet Birth Control Center Foundation (PPBCC); Hound Haven PH; and, Cats of Manila. On Sept. 10, Paws n’ Play will hold the Gotcha Gala, an exclusive meet-up of rescued and adopted pets with their owners. The families will be pre-selected from a pool of online entries in response to Ayala Malls’ call for stories of hope and successful pet adoptions. Winners and pets will meet at the BarkYard on the day of the event, followed by a photo and video presentation on their respective adoption journeys. Paws n’ Plays is holding a week-long photo exhibit of Gotcha Gala winning entries at the Gotcha Gallery. From Sept. 10 to 17, Ayala Malls encourages viewers to interact with the photos by leaving notes on the space provided. The festival culminates on Oct. 2 with Paw It Forward, a series of workshops to be held for the benefit of select animal welfare shelters. The workshops are open to all, with a registration fee of P500 as donation to the participant’s chosen organization. The proof of donation serves as the individual’s workshop pass. Visit @UPTownCenterAyalaMalls on Facebook and @iloveuptowncenter on Instagram for updates and announcements on Ayala Malls’ Paws n’ Play festival in UP Town Center.

Improving margins to boost Philippine banks’ profitability, Fitch Ratings says

THE COUNTRY’S big banks will continue to see improved profitability for the rest of the year on better margins following the central bank’s tightening, Fitch Ratings said.

“The solid financial performance of the Philippines’ large banks in 1H22 reflects continued improvement in loan demand, with system loan growth reaching the fastest pace since the onset of the COVID-19 pandemic at 9.1% year on year,” the debt watcher said in a report written by Fitch Asia-Pacific Financial Institutions Directors Willie Tanoto and Tamma Febrian dated Aug. 25.

“We expect credit growth to taper in 2H22 as demand is curbed by inflation and a 175-bp (basis point) year-to-date increase in the policy rate. However, banks’ earnings should be supported by wider lending margins as variable rate loans are repriced. We have maintained our improving outlook on the banking sector against the backdrop of rising returns,” Fitch said.

Philippine banks’ improving profitability is positive for their standalone credit profiles, the debt watcher said. Still, this does not strengthen their issuer default ratings, as this is sensitive to changes in the sovereign’s “BBB” rating, which has a “negative” outlook.

Fitch said banks’ interest margins and profits have yet to reflect most of the Bangko Sentral ng Pilipinas’ (BSP) rate increases as it began to tighten only in May.

“Further improvement, nevertheless, may be tempered by rising loan competition, especially within the corporate sector that remains the dominant segment of the banks’ loan portfolio, as the banks’ risk appetite returns,” it said.

Funding costs also remain low amid high levels of liquidity in the system, which will support banks’ loan growth, Fitch said.

It said it expects banks’ capital levels, which have declined due to faster loan growth and revaluation losses on banks’ bond holdings, to remain steady “as stronger profits lead to capital accretion.”

However, rising inflation, which may affect consumers’ purchasing power and, in turn, the economy’s recovery, could result in weaker asset quality for lenders.

“Non-mortgage consumer lending is among the most vulnerable to impairments, but we expect the rated large private banks to weather incremental weakness in loan quality relatively well, helped by their loan loss coverage ratios of 138%-196%,” the debt watcher added.

Latest BSP data showed outstanding loans by big banks, net of reverse repurchase placements with the central bank, rose by 12% in June to P10.19 trillion in the same month last year.

As lending growth continued to pick up, M3 — the broadest measure of liquidity in an economy — expanded by 6.9% to P15.4 trillion in June. — K.B. Ta-asan

LBC Express Holdings swings to nearly P132-million net loss

BW FILE PHOTO

LISTED LBC Express Holdings, Inc. swung to losses in the second quarter of the year, primarily due to a decline in volume.

The company, which is involved in logistics and money transfer services, lost P131.86 million for the quarter, compared to an attributable profit of P170.83 million during the same period last year, its second-quarter financial performance results showed.

Second-quarter service revenue fell 6.9% to P3.78 billion from P4.06 billion previously.

“There was a negative growth for domestic logistics segment by 7%,” the company noted. “This is partly countered by the improvement in overseas sales by 6%.”

Meanwhile, cost of services declined 3.9% to P2.98 billion from P3.10 billion in the same period in 2021.

There was a “shortfall in volume leading to lower cost of delivery and remittance by 9%,” according to the company.

“Decreases were noted for trucking cost and contracted jobs while these were counterbalanced by the increase in domestic and international shipping lines and fuel rates.”

The company’s gross profit dropped 16.6% to P800.44 million from P960.12 million previously, “primarily attributable to decrease in volume and increase in cost of freight sea and fuel.”

For the first half of the year, LBC Express Holdings swung to an attributable net loss of P82.99 million from a profit of P310.56 million in the same period last year.

First-half service revenue declined 8% to P7.74 billion from P8.41 billion previously, “mainly from domestic logistics segment which were partially covered by 8% growth in sales from overseas as there was steady growth in air cargo volume and rate alignment in several countries.”

Meanwhile, cost of services for the period reached P6.03 billion, down 4.3% from P6.30 billion in the same period a year earlier.

The company attributed the decrease to “lower cost of delivery and remittance by 11%.”

Gross profit for the first six months decreased 19.8% to P1.70 billion from P2.12 billion previously, “primarily attributable to decrease in volume and increase in the cost of freight sea as well as fuel.” — Arjay L. Balinbin

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