Security Bank posts higher earnings

August 16, 2022 | 12:02 am

SECURITY BANK Corp. recorded a higher net income in the second quarter on the improved performance of its core businesses and lower credit provisions.

The bank booked an attributable net income of P3.52 billion in the second quarter, up by 139.4% from the P1.47 billion in the same period in 2021, according to its quarterly report disclosed to the stock exchange on Monday.

This brought its attributable net profit for the first half to P6.25 billion, more than double the P3.12 billion seen in the comparable year-ago period, amid growth across the lender’s core businesses.

The bank said in a statement that its pre-provision operating profit in the first semester was at P8.5 billion, 6% higher year-on-year. The lender set aside P408 million in provisions for credit losses.

Security Bank’s first semester performance translated to a return on average common equity of 10%, up from 5.05% the year prior, and a return on average assets of 1.70%, also better than the 0.92% seen in the first half of 2021.

“We are very pleased by the continued improvement in our core businesses. Our growth in loans and investment securities, is a tangible manifestation of our commitment to clients to support the reopening of the economy and address the impact of inflation,” Security Bank President and Chief Executive Officer Sanjiv Vohra said in a statement.

The bank’s net interest income increased by 8.1% to P7.48 billion in the second quarter from P6.92 billion a year prior, even as its net interest margin slipped by 6 basis points year on year to 4.30%.

Meanwhile, non-interest income rose by 7% to P2.47 billion in the April to June period. Earnings from fees, service charges and commissions increased by 22% to P1.32 billion, while other income excluding securities trading gains and fee income rose by 17% to P1.2 billion.

Security Bank’s operating expenses went down by 23% to P5.61 billion in the second quarter from P7.32 billion a year earlier.

Its cost-to-income ratio decreased to 55.90% from 56.43% a year prior.

The bank’s gross loans rose by 15% to P490 billion, driven by an 18% increase in wholesale loans and a 6% growth in retail loans. Retail loans made up 23% of Security Bank’s total loans, down from 26% a year ago.

Its nonperforming loan (NPL) ratio declined to 1.32% as of June from 1.47% as of end-December, while NPL reserve cover stood at 91.98%.

Total assets increased by 9% to P766 billion as of June, while shareholders’ capital was at P124 billion.

Security Bank’s common equity Tier 1 ratio was at 16.7% and total capital adequacy ratio stood at 17.2%, both above the minimum regulatory requirements.

The lender’s shares closed at P87 apiece on Monday, up by 1.05% or 90 centavos from the previous finish. — Keisha B. Ta-asan

Snapshot of Philippine Poverty Statistics: 2018 vs 2021

August 16, 2022 | 12:02 am

AROUND 2.3 million Filipinos have been plunged into poverty between 2018 and 2021, as the coronavirus pandemic left lasting scars on the Philippine economy, according to the Philippine Statistics Authority (PSA). Read the full story.

Bullet Train repeats No. 1, Top Gun returns to second place as US box office nearly grinds to halt

August 16, 2022 | 12:02 am

LOS ANGELES — Is everyone on vacation?

That would be one plausible explanation behind the great box office slowdown. Although three new movies opened across the United States of America, none were able to crack the top five on domestic charts and only two — A24’s satirical slasher Bodies Bodies Bodies and Lionsgate’s vertigo-inducing thriller Fall — managed to infiltrate the top 10.

It’s even more dire that Sony’s action-thriller Bullet Train, which claimed the top spot for the second weekend in a row with $13.1 million from 4,357 North American locations, was the sole film to bank at least $10 million in ticket sales. After two weeks on the big screen, the Brad Pitt-led Bullet Train has generated $54.4 million at the domestic box office. This weekend marks the first time since Feb. 11-13 — when Death on the Nile opened to a weak $12.3 million and Jennifer Lopez’s romantic comedy Marry Me stumbled with even less — that only one movie reached at least $10 million between Friday and Sunday.

And the glacial drip, drip, drip of ticket sales is only going to worsen as the box office heads for a near desolate stretch with hardly any new offerings from major studios on the horizon. While movie theater owners brace for the downtrend, they are bowing at the altar of Harry Styles in hopes the pop heartthrob will inspire audiences to return to theaters in droves for director Olivia Wilde’s mind-bender Don’t Worry Darling, which doesn’t open until Sept. 23. Until then, exhibitors will have to make do with smaller thrillers and dramas like Idris Elba’s Beast, which is coming on Aug. 19; Three Thousand Years of Longing, a fantasy romance with Tilda Swinton and Mr. Elba (again) on Aug. 26; and the Viola Davis-led historical epic The Woman King on Sept. 16.

In eighth place, Bodies Bodies Bodies beat expectations with $3.2 million from 1,290 locations. After kicking off last weekend in limited release, the movie has grossed $3.5 million to date and plans to expand to 2,000+ theaters next weekend. But otherwise, audiences wanted little to do with Fall and Diane Keaton’s body-swap comedy Mack & Rita, the other movie that debuted over the weekend.

Fall just barely landed in 10th place with $2.5 million from 1,548 venues. The movie, centering on two best friends who climb 2,000 feet to the top of an abandoned radio tower and find themselves stranded with no way down, was relatively low risk for Lionsgate as it cost only $3 million to produce and less than $4 million to promote. It won’t take much coinage to turn a profit, and home entertainment will be helpful with that mission.

Elsewhere, Steven Spielberg’s science-fiction classic E.T. — which debuted 40 years ago — grossed more money over the weekend than Ms. Keaton’s Mack & Rita. The Gravitas Ventures release premiered in 13^th place with $1.03 million from 1,930 screens. Universal’s re-release of E.T. raked in $1.07 million from only 389 Imax screens.

As expected, Mack & Rita brought out mostly older women, with 74% of ticket buyers identifying as female and 69% over the age of 30. They were not kind to the movie, which landed a D+ CinemaScore. Reviews were equally harsh, resulting in a bleak 26% score on Rotten Tomatoes.

With the dismal turnout for most other movies, Paramount’s ever-powerful blockbuster Top Gun: Maverick swooped to second place in its 12^th weekend of release. The action sequel added $7.1 million from 3,181 venues over the weekend, bringing its domestic tally to $673.8 million. That means Maverick is roughly $5 million away from dethroning Marvel’s Avengers: Infinity War as the 6^th-highest grossing movie in domestic box office history. — Reuters

China home prices fall for 11^th month as mortgage crisis deepens

August 16, 2022 | 12:01 am

CHINA’s home prices fell for an 11^th month in July, underscoring how government relief efforts are failing to curb the country’s spiraling real estate crisis.

New home prices in 70 cities, excluding state-subsidized housing, declined 0.11% from June, when they sank 0.1%, National Bureau of Statistics figures showed on Monday. Existing-home prices fell 0.21%, the same as a month earlier.

China’s $2.4-trillion new-home market is showing little signs of recovery, adding to the woes of an economy that barely expanded last quarter. The mortgage boycotts, which emerged from early July, are dampening consumer confidence.

Within four weeks last month, more than 320 projects in about 100 cities were facing payment boycotts, forcing authorities to corral banks and developers to defuse the unrest. The online movement has slowed after the government censored social media sites.

Tension is spilling over to other areas. Earlier this month, more than a dozen developers in a central Chinese province sought help from their local government to restore property sales in the face of protests from disgruntled homebuyers.

Residential prices have been declining in smaller cities, the bureau’s chief statistician Sheng Guoqing said in a separate official statement.

Chinese officials have been stepping up efforts to arrest a property slowdown that has weighed on the world’s second-largest economy for almost a year. These include urging banks to lend more, cutting mortgage costs and partially relaxing ownership rules. — Bloomberg

Raslag’s net income slips 31% to nearly P30M

August 16, 2022 | 12:01 am

RENEWABLE energy firm Raslag Corp. posted a 31.2% decrease in its attributable net income in the second quarter to P29.70 million from P43.15 million last year.

In a disclosure to the stock exchange, the company reported a 0.5% jump in revenues to P85.11 million for the quarter from P84.67 million in the same period last year.

In the first six months, the company’s attributable net profit fell by 24.3% to P51.93 million from P68.56 million due to non-recurring expenses related to its initial public offering (IPO).

Year-to-date revenues increased by 6.9% to P164.01 million from P153.48 million, which it attributed to an increase in energy sold to 401,638 kilowatt-hours.

The company said that its operating expenses increased by P25.1 million due to non-recurring IPO-related expenses such as financial advisory fees, fees to an independent auditor, and other miscellaneous expenses.

Tax expense also grew 53% to P12.7 million from P8.3 million, driven by non-recurring IPO-related expenses such as registration with the Securities and Exchange Commission and filing of fees.

On Monday, Raslag shares closed unchanged at P1.88 each on the stock exchange.

EastWest Bank’s net profit drops in Q2

August 16, 2022 | 12:01 am

EAST WEST Banking Corp. (EastWest Bank) posted a lower net profit in the second quarter due to lower fee income and as it saw a loss from fixed-income trading.

The lender’s attributable net income stood at P1.01 billion in the second quarter, down from the P1.78 billion seen in the same period last year.

This brought its first semester net profit to P1.52 billion, also lower than the P3.8 billion booked a year prior.

“Lower average loan levels accounted for P447 million of the drop,” EastWest Bank said. “The P1.7-billion drop in fixed-income trading was due to the global rise in interest rates as monetary authorities ramped up efforts to contain inflation. The change was also magnified as the previous year’s P1.3 billion trading gains were higher than usual, while Q1 2022 was a loss of P420.7 million from the normal positive numbers.”

The lender’s first semester net income translated to a return on equity of 5.2%, down from 13.3% a year prior, while return on assets also declined 0.7% as of June from 1.9%.

The bank said it now expects its total revenues, excluding trading, to end the year at P26 billion from the P25-billion guidance it gave in the first quarter.

“However, with the uncertain trading income, the bank still expects net income at around P4 billion. By the fourth quarter, EastWest Bank’s quarterly income, excluding trading, should have recovered pre-pandemic levels and trend towards P1.25 billion, or P5 billion on an annualized basis,” it said.

“Given the favorable outlook, the bank expects its recovery to sustain its momentum. Loans should continue increasing, and fixed-income securities investments should end at higher levels. The bank believes the levels of interest rates, especially the US dollar, are appropriate to build its investments books. And while market liquidity could tighten, the bank expects deposit costs will remain at reasonable levels,” EastWest Bank added.

The bank’s net interest income grew to P5.84 billion in the second quarter from P5.58 billion a year ago.

Net interest margin was at 6.7% as of June from 7.2%.

Still, total operating income dropped to P6.81 billion from P7.17 billion. This was partly due to the P158.59-million trading and securities loss seen by the bank last quarter versus the P82.26-million gain seen last year.

Income from service charges, fees and commissions also declined to P639.3 million from P1.1 billion last year.

On the other hand, EastWest Bank’s operating expenses grew to P5.29 billion from P4.89 billion. Provisions for impairment and credit losses went up to P1.08 billion from P705.62 million.

The bank’s gross loans inched up by 1% to P227.6 billion as of June, which it said was mainly from business lending in line with the industry’s recovery.

Business loans grew by 5% to P59.6 billion, while consumer loans, which account for 74% of the bank’s portfolio, inched down by 1% to P168 billion amid a decline in auto, mortgage and personal credit.

“This quarter’s releases, however, have started to improve driven by demand and normalization of credit policies,” EastWest Bank said.

The bank’s gross nonperforming loan (NPL) ratio was at 9.8% as of June, down from last year’s 10.4% “due to the impact of the pandemic on borrowers in meeting their obligations and the overall decline of the bank’s total loan portfolio.”

On the funding side, total deposits grew by 6% to P335.7 billion as low-cost current account, savings account or CASA deposits increased by 11% to P254.7 billion “as the low-interest rate environment prompted the buildup of excess liquidity while the bank watched the timing of investing in higher-earning fixed-income securities and loans.”

“In contrast, time deposits decreased by 8% to P81 billion from the lower funding requirements of the bank. CASA ratio improved to 76%, from the previous year’s 72%,” the lender said.

EastWest Bank’s capital adequacy ratio was at 14.8% as of June, up slightly from 14.7% a year prior, while its common equity Tier 1 (CET1) ratio was steady at 13.6%, both above the minimum levels required by the central bank.

“The bank aims to maintain a CET1 ratio of 12-13%, which it deems appropriate given its business model,” EastWest Bank said.

The lender’s assets stood at P415 billion as of June, up by 4% from P398.9 billion a year ago.

EastWest Bank’s shares went down by nine centavos or 1.28% to close at P6.95 apiece on Monday. — BVR

Overseas Filipinos’ cash remittances (June 2022)

August 16, 2022 | 12:01 am

CASH REMITTANCES reached a six-month high in June, as overseas Filipino workers (OFWs) sent more money to help their families cope with rising inflation. Read the full story.

Entertainment News (08/16/22)

August 16, 2022 | 12:01 am

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Cherie Gil films shown online for free

THE FILMS of the late great Cherie Gil (a.k.a. Evangeline Rose Gil Eigenmann) are now available to stream online for free at Regal Entertainment’s YouTube Channel (www.youtube.com/c/RegalEntertainmentInc). The film production company’s YouTube Channel has a playlist titled “The Life and Work of Cherie Gil” which features eight movies the late actress starred in from 1970s to 2000s — Ishmael Bernal’s Manila By Night and Ito Ba Ang Ating Mga Anak; Peque Gallaga’s Too Young; Elwood Perez’s Beer House, Sugar Daddy, and Problem Child; Jose Javier Reyes’ Sugatang Puso; and Nilo Saez’s Magno Barumbado. The 59-year-old actress died on Aug. 5 in the United States from a rare form of endometrial cancer.

Ben&Ben and Pamungkas collaborate on video

THE NINE-PIECE band Ben&Ben recently collaborated with Indonesian singer-songwriter Pamungkas to release a performance video of “Stand By You.” The pop-rock original, which is an English translation of Ben&Ben’s 2022 hit “Paninindigan Kita,” was recorded at SoundCheck Studio in Pasig City. “There was a natural chemistry between both artists,” members of Ben&Ben said in a statement. “This came out in the way the instruments were arranged and the different parts were worked into the final version of the performance.” Ben&Ben also praised Pamungkas on how he added a totally new vibe to the song, while injecting his own flair into the instrumentation. “Stand By You” is the first of a two-part collaboration between the artists. They’re also set to release the performance video of “I Got To Get You.” Ben&Ben is set to tour North America, performing in venues across nine cities in the US and Canada. They’re also gearing up to release a new international single this month, ahead of their send-off concert on Sept. 3 at the Cultural Center of the Philippines’ Open Grounds. The video of “Stand By You” can be seen at https://www.youtube.com/watch?v=-wrYBtxxgZk.

SB19 announces new single and world tour

PINOY pop group SB19 announced the release of their new single, “WYAT (Where You At),” a disco-pop track that highlights the urgency of disconnection to reconnection of the times. The upcoming release marks SB19’s first new material as a group in a year after launching their 2021 EP, Pagsibol. “It’s been a year, the word ‘hiatus’ may sound negative but we took it from a different perspective. We maximized the opportunity to think more as to what we can improve on, how we can prepare for our comeback,” SB19 member Stell said in a statement. The award-winning and Billboard nominee pop group is also set to stage its biggest local and international tour. The WYAT Tour kicks off on Sept. 17 at Araneta Coliseum, to be followed by a series of shows in Clark, Cebu, and Davao. In the following months, the tour will go global, with concerts in the United States, the United Arab Emirates, and Singapore.

Korean dramas air back-to-back on GMA Telebabad

THE KOREAN dramas The Red Sleeve and About Time will air back-to-back beginning Aug. 15 on GMA Telebabad. The Red Sleeve is a historical romance series set in the 1700s. Based on real-life events, it tackles the love story of the King of Joseon and an ordinary court woman. The series stars award-winning actors Lee Jun-Ho, Lee Se-Young, Kang Hoon, and Jang Hye-jin. Meanwhile, the fantasy romance series About Time stars Lee Sung-kyung, Lee Sang-yoon, Im Se-mi, Kim Dong-jun, Han Seung-yeon, and Ro-woon. It tells the story of an aspiring musical actress who has the incredible ability to see everyone’s lifespan including hers. In the aftermath of a minor car crash, she crosses paths with the chief director of a cultural foundation, and realizes that her own “life clock” stops whenever she is near him. Since he gives her hope that she can live longer, she does everything to be with him all the time. The Red Sleeve will air at 9:35 p.m, Mondays to Thursdays, while About Time will air at 10:20 p.m. from Monday to Thursday, and at 10:35 p.m. every Friday beginning Aug. 15 on GMA Telebabad.

GMA Network among TikTok Awards PH nominees

GMA NETWORK earned various nominations at the TikTok Awards Philippines. The annual award recognizes creators who have embraced the value of TikTok and have created a big impact on the platform in the past year. GMA Network and YouLOL are both nominated for the Top Entertainment Award, under the Judges’ Pick Category. Three of the Network’s news and public affairs accounts — Kapuso Mo, Jessica Soho (KMJS), Unang Hirit, and 24 Oras — are nominated for Top Media Publisher. Meanwhile, in the People’s Choice Category, artists Kyline Alcantara, Althea Ablan, Cassy Legaspi, and Dasuri Choi are some of the contenders for Celebrity of the Year. Kapuso girl group XOXO has also been nominated for the P-pop Group of the Year. The TikTok Awards PH will stream live on the social media platform on Aug. 20 at 7 p.m.

ABS-CBN nominations at the ContentAsia Awards

ABS-CBN received three nominations at the ContentAsia Awards 2022 that celebrates the best of local production in Asia. The drama series The Broken Marriage Vow was nominated in the Best TV Format Adaptation (Scripted) in Asia category alongside nominees from Thailand and Hong Kong. The show’s lead actress, the wonderful Jodi Sta. Maria also received a nod as Best Female Lead in a TV Program alongside actors from Malaysia, Thailand, and Taiwan. Meanwhile My Papa Pi, hosted by Piolo Pascual and Pia Wurtzbach, was nominated for Best Asian Comedy Show together with nominees from Thailand, Malaysia, Indonesia, and Taiwan. The awarding ceremony will be held on Aug. 26 in Bangkok, Thailand and will be livestreamed on Facebook. The ContentAsia Awards is owned and operated by ContentAsia, an “information platform curated to offer insights into Asia’s content environment.”

How PSEi member stocks performed — August 15, 2022

August 16, 2022 | 12:00 am

Here’s a quick glance at how PSEi stocks fared on Monday, August 15, 2022.

Peso drops vs dollar on hawkish Fed signals

August 15, 2022 | 9:00 pm

THE PESO weakened versus the greenback on Monday following hawkish signals from another official of the US Federal Reserve.

The local unit closed at P55.825 per dollar on Monday, down by 21.5 centavos from its P55.61 finish on Friday, data from the Bankers Association of the Philippines showed.

The peso opened Monday’s session at P55.72 versus the dollar, which was also its intraday best. Meanwhile, its weakest showing was at P55.90 against the greenback.

Dollars exchanged decreased to $896.6 million on Monday from $1.01 billion on Friday.

The peso depreciated on Thursday due to hawkish signals from a Fed official, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Richmond Federal Reserve Bank President Thomas I. Barkin on Friday said he will support more interest rate hikes to bring inflation under control.

Mr. Barkin added that they will watch US economic data to decide how big a rate hike should be at the Fed’s next meeting in September.

The Fed has increased its key rate by 225 basis points so far since March.

Still, stronger remittances data in June was positive for the peso, Mr. Ricafort said.

Data released by the central bank on Monday showed cash remittances sent through banks reached $2.75 billion in June, up 4.4% from $2.63 billion in the same month in 2021.

For the first half, cash remittances increased by 2.9% to $15.3 billion from $14.9 billion. The central bank expects remittances to grow by 4% this year.

For Tuesday, Mr. Ricafort gave a forecast range of P55.70 to P55.90 per dollar. — KBT

PSEi inches higher following Wall Street’s rally

August 15, 2022 | 9:00 pm

PHILIPPINE STOCKS closed higher on Monday to track Wall Street’s rally on Friday as data showing a slowdown in consumer and producer prices in July boosted hopes that US inflation has peaked.

The bellwether Philippine Stock Exchange index (PSEi) went up by 38.18 points or 0.57% to close at 6,737.84 on Monday, while the broader all shares index increased by 16.71 points or 0.46% to 3,580.87.

“Following the US rally on Friday, Philippine shares rose once again, starting another positive week as investors celebrated signs that inflation may be peaking,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message.

Mr. Limlingan said the market is awaiting more US data due to be released this week, including reports on jobs, housing and retail sales.

“The local bourse started the week positively… as bullish sentiment persists,” Philstocks Financial, Inc. Research Analyst Claire T. Alviar said in a Viber message.

“As the market breached and managed to stay above the 6,600 levels, some investors are accumulating at that level, especially those undervalued stocks with good earnings in the first semester,” Ms. Alviar added.

Wall Street rose on Friday as data showing slower US consumer and producer inflation boosted market sentiment as this could mean aggressive hikes from the Federal Reserve.

The Dow Jones Industrial Average rose 424.38 points or 1.27% to 33,761.05; the S&P 500 went up 72.88 points or 1.73% to 4,280.15; and the Nasdaq Composite climbed 267.27 points or 2.09% to 13,047.19.

The US consumer price index rose by 8.5% annually in July, slower than 9.1% in June.

Meanwhile, the producer price index for final demand increased 9.8% annually in July after rising 11.3% in June.

Back home, the majority of the sectoral indices ended in the green on Monday except for services, which went down by 11.78 points or 0.67% to 1,740.53; and industrials, which dropped by 1.29 points or 0.01% to 9,897.59.

Meanwhile, holding firms surged by 108.01 points or 1.68% to 6,512.40; mining and oil climbed by 127.65 points or 1.09% to 11,821.01; financials went up by 6.61 points or 0.42% to 1,566.60; and property rose by 10.95% or 0.36% to 3,052.95.

Advancers outnumbered decliners, 101 versus 89, while 48 names closed unchanged.

Value turnover declined to P5.49 billion on Monday with 1.03 billion shares changing hands from P13.76 billion with 1.67 billion issues seen on Friday.

Foreigners turned net buyers, logging P360.11 million in net purchases on Monday from the P5.86 billion in net selling seen the previous trading day.

Diversified Securities, Inc. Equity Trader Aniceto K. Pangan said the market “may continue to move upward after the US market sustained its upward momentum last Friday.”

He placed the PSEi’s immediate support at 6,500 and resistance at 6,800. — JIDT

Foreign chambers see potential for PHL as creative industry hub

August 15, 2022 | 8:07 pm

PHOTO COURTESY OF THE METROPOLITAN THEATER

REPUBLIC ACT NO. 11904 or the Philippine Creative Industries Development Act could help the Philippines become a top creative economy, the Joint Foreign Chambers (JFC) said on Monday.

In a statement, the members of the JFC said the new law will help grow the creative sector, which accounts for over 7% of gross domestic product.

“With the enactment of RA 11904, the Philippines is well-placed to reach its goal of becoming the leading creative economy in Southeast Asia by 2030,” the JFC said.

The target is for the creative industries to lead Southeast Asia by size and value, according to the Creative Economy Roadmap issued by the Creative Economy Council of the Philippines.

“(The law) recognizes creative industries as a distinct sector in the traditional sense of an industry cluster and reaffirms the importance and natural competitive edge of Filipino creative talent,” the JFC said.

The JFC expects the creation of the Creative Industry Development Council to be beneficial.

“By establishing a Philippine Creative Industry Development Council mandated to both formulate and implement the Philippine Creative Industries Development Plan, the country will be better equipped to reap the economic and employment benefits from the diverse creative talents of Filipinos organized under the nine creative industry ‘domains’ identified in the law,” they said.

Trade Secretary Alfredo E. Pascual has said that his department seeks to elevate the creative economy and raise its global competitiveness.

“We are reclaiming our path to development. As the world approaches the Fourth Industrial Revolution, we are marching forward to the global stage and going above and beyond in support of the digitalization of creative industries,” Mr. Pascual said.

Signatories to the statement include the American Chamber of Commerce of the Philippines; the Australian-New Zealand Chamber of Commerce of the Philippines; the Canadian Chamber of Commerce of the Philippines; the European Chamber of Commerce of the Philippines; the Japanese Chamber of Commerce and Industry of the Philippines, Inc.; the Korean Chamber of Commerce of the Philippines, Inc.; and the Philippine Association of Multinational Companies Regional Headquarters, Inc. — Revin Mikhael D. Ochave