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AUB Group’s consolidated profit surges 50% in the first semester

BW FILE PHOTO
ASIA United Bank Corp. and its subsidiaries booked a higher consolidated net income in the first semester. — BW FILE PHOTO

ASIA United Bank Corp. (AUB) and its subsidiaries saw its consolidated net income surge in the first semester amid a higher total operating income and lower loan loss provisions.

AUB Group’s consolidated net profit was at P2.9 billion in the first half of the year, rising by 50% from the P1.9 billion seen a year prior, the listed bank said in a disclosure to the stock exchange on Monday.

This translated to a return on assets of 1.8%, up from 1.2%, and a return on equity of 15.8%, improving from 11% last year.

“We remain on track with our target to return to our pre-pandemic net income performance of P4.4 billion, especially as the economy gradually reopens,” AUB President Manuel A. Gomez was quoted as saying.

“We are pleased to note that these profitability ratios are among the highest, if not the best, in the industry, as far as published reports of other publicly listed banks go,” Mr. Gomez said.

The group’s total operating income went up by 12% to P6.9 billion in the first semester from P6.1 billion a year prior on the back of higher net interest earnings and other operating income.

Net interest income climbed by 8% to P5.8 billion from P5.4 billion amid an increase in interest earnings and lower interest expense.

“Interest income from loans and receivables remained flattish at P5 billion while interest income from trading and investment securities grew 56%, year on year,” AUB said in the statement.

The bank saw an increase in its low-cost current account, savings account (CASA) deposits, which reached P222 billion as of June. Its CASA-to-total deposits ratio was at 84%, up from 71% a year prior.

“Coupled with the retirement of high-cost deposits, this drove down the group’s interest expense by 20% to P742 million from P922 million during the first half of 2021,” the lender said.

Meanwhile, the group’s non-interest income increased by 42% to P1.1 billion from P743 million, which the bank, in its statement, attributed to better trading and foreign exchange gains and higher transaction fee income.

Operating expenses were flat at P2.7 billion in the first semester, resulting in a cost-to-income ratio of 40%, down from 45% a year ago.

AUB Group set aside provisions for credit and impairment losses worth P511 million in the period, 43% lower than the P897 million seen a year prior.

This, as its asset quality improved, with its nonperforming loan ratio declining year on year to 1.8% as of June from 2%.

AUB’s total assets were at P319.7 billion at end-June, which it said ranked it among the country’s 20 biggest banks.

The bank’s shares lost 40 centavos or 0.89% to end at P44.45 each on Monday. — BVR

Actress Nichelle Nichols, Star Trek’s trail-blazing Uhura, dies at 89

ACTRESS Nichelle Nichols — UHURA.COM

NICHELLE Nichols, whose portrayal of starship communications officer Lieutenant Uhura in the 1960s sci-fi TV series Star Trek and subsequent movies broke color barriers and helped redefine roles for Black actors, has died at age 89, her family said.

Ms. Nichols, whose fans included Martin Luther King, Jr. and a young Barack Obama, “succumbed to natural causes and passed away” on Saturday night, her son, Kyle Johnson, wrote on Facebook.

“Her light however, like the ancient galaxies now being seen for the first time, will remain for us and future generations to enjoy, learn from and draw inspiration,” Mr. Johnson wrote.

The series, which became a pop culture phenomenon, shattered stereotypes common on US television at the time by casting Black and minority actors in high-profile roles on the show.

In 1968 she and Star Trek star William Shatner broke a cultural barrier when they engaged in US television’s first interracial kiss.

She had planned to quit Star Trek after one season, but Mr. King, the 1960s civil rights leader, convinced her to stay because it was so revolutionary to have a Black woman playing an important senior crew member at a time when Black people were fighting for equality in American society.

Ms. Nichols also helped break color barriers at NASA, whose leaders were Star Trek fans. After she criticized the space agency for failing to pick qualified women and minorities as astronauts, it hired Nichols in the 1970s to help in recruiting.

Her efforts helped attract, among others, the first woman US astronaut, Sally Ride; the first Black woman astronaut, Mae Jemison; and the first Black NASA chief, Charlie Bolden.

Ms. Nichols “symbolized to so many what was possible” and “inspired generations to reach for the stars,” NASA said on Twitter.

Ms. Nichols’ portrayal of the competent, level-headed Uhura also helped inspire future Black actors, including Oscar winner Whoopi Goldberg. Ms. Nichols recalled Ms. Goldberg telling her of watching Star Trek as a nine-year-old, seeing her playing Uhura, and yelling out to her mother: “Come quick! There’s a Black lady on television and she ain’t no maid!”

The original Star Trek series, tracking the adventures of the crew of the starship USS Enterprise in the 23rd century, ran for only three seasons on the NBC network from 1966 to 1969. But it became hugely popular in syndication in the 1970s, inspiring first an animated series that reunited the cast from 1973 to 1975 and then a succession of feature films and shows.

Nichols appeared in six Star Trek films ending with Star Trek VI: The Undiscovered Country in 1991.

Uhura deftly handled the starship Enterprise’s communications with allied spaceships and alien races while interacting with Captain James T. Kirk (Shatner), Vulcan first officer Mr. Spock (Leonard Nimoy) and the starship’s helmsman, Sulu (George Takei).

Takei wrote on Twitter that he and Ms. Nichols “lived long and prospered together,” describing her as trailblazing and incomparable. “(My) heart is heavy, my eyes shining like the stars you now rest among.”

Ms. Nichols’ best-known scene featured the first scripted interracial kiss on US television, although it was not a romantic one. In an episode called “Plato’s Stepchildren,” Uhura and Kirk were compelled telekinetically to smooch by aliens toying with the feeble humans. In real life, Ms. Nichols disliked Shatner, who she considered arrogant.

“She was a beautiful woman and played an admirable character that did so much for redefining social issues both here in the US and throughout the world,” Mr. Shatner said on Twitter.

She felt differently about Star Trek creator Gene Roddenberry, who cast her after she had acted in a previous show he produced. Ms. Nichols had a romance with him in the 1960s and sang a song called “Gene” at his 1991 funeral.

VISIT TO THE WHITE HOUSE
Mr. Obama, the first Black US president, who was five years old when the Star Trek series made its debut, also was a fan. Ms. Nichols visited him at the White House in 2012 and posed for a photo in the Oval Office, with the president smiling and putting his hand on her shoulder while both made a Star Trek Vulcan hand gesture meaning “live long and prosper.”

In a 2011 interview with Smithsonian magazine, Ms. Nichols recalled meeting Mr. King at a civil rights group’s fundraiser.

Ms. Nichols said she was approached by one of the event’s promoters, who told her, “There’s someone who wants to meet you and he says he’s your biggest fan, so I’m thinking of a young kid. I turn around and standing across the room, walking towards me, was Dr. Martin Luther King with this big smile on his face.”

After Ms. Nichols told Mr. King she planned to quit Star Trek, she said he implored her to stay. She said King told her: “This is a God-given opportunity to change the face of television, change the way we think. We are no longer second-class, third-class citizens. He (Mr. Roddenberry) had to do it in the 23rd century but it’s the 20th century that’s watching.’” She rescinded her resignation.

Like other Star Trek cast members, she had a hard time finding work due to typecasting after the original series ended. It was during this time when she played a foul-mouthed madam in the film Truck Turner (1974) starring Isaac Hayes. She was a recurring character on the television show Heroes in 2007.

She was born on Dec. 28, 1932 in Robbins, Illinois, trained as a singer and dancer and toured with jazz greats Duke Ellington and Lionel Hampton before her acting career took off.

Ms. Nichols, who was married twice and had one child, suffered a mild stroke in June 2015. —  Reuters

Eight new Ascott properties to open in Philippines next year

EIGHT new properties managed by The Ascott Limited (Ascott) Philippines are set to open in 2023, according to its new country general manager.

At a media roundtable on July 27, Ascott Philippines’ Country General Manager Philip Barnes said the eight new properties are located in Quezon City, Manila, Makati, Cebu, and Bacolod.

He said these projects will add over 1,500 units, bringing the company’s portfolio to over 5,000 units across 27 properties in the next few years.

“We’re looking at probably increasing our revenues to over P2.5 billion… This is actually a huge substantial amount in terms of top line,” Mr. Barnes said.

Opening in 2023 are two properties under the Somerset brand in Valero (Makati) and Gorordo (Cebu); three under the Citadines brand in Bacolod, Benavidez (Makati), and Roces (Quezon City); and another in Manila called The Suites at Torre Lorenzo Malate.

Two properties under the Lyf brand are also set to open in Cebu City and Malate, Manila in 2023. Lyf is a co-living brand targeting young tourists and students.

Mr. Barnes said the company expects domestic and international tourism to continue its strong rebound from the pandemic.

“We have very strong support from the domestic corporate segment and the domestic leisure segments. Some of our properties offer 2-to-3-bedroom apartments for families. Our brand is a home away from home,” he said.

Cecille B. Teodoro, who is the general manager of Ascott Makati and Somerset Millennium Makati, said the Ascott’s hotels, resorts, and serviced residences are committed to sustainability.

“Through partnerships, we hope to sustain the community while at the same time saving the environment and strengthening sustainable travel,” she said.

Ascott’s latest partners include The Plastic Flamingo, the World Wide Fund for Nature Philippines and Gawad Kalinga.

The company also expanded its online loyalty membership plan, the Ascott Star Rewards program, to offer points accrual for online bookings via phone, e-mail, website, and mobile app.

Ascott is the lodging business unit of Singapore-based real estate developer CapitaLand Limited. — Brontë H. Lacsamana

Balai ni Fruitas income hits P9M

BALAI NI FRUITAS, Inc. reported a net income of P9 million in the second quarter, nearly five times higher than the earlier year’s P2 million, after posting improved store performance while continuing its business expansion.

The company also said that its revenues for the second quarter increased to P84 million, more than three times higher than its previous year’s top line.

Balai made its debut on the Philippine Stock Exchange (PSE) on June 30 with 1.49 billion primary and secondary shares listed on the small, medium, and emerging (SME) board at P0.70 apiece.

“The successful listing on the SME board of the PSE will allow us to expand faster. We envision Balai Pandesal to be present in major cities of the country and can be easily accessed by Filipinos,” Balai President and Chief Executive Officer Lester C. Yu said in a press release on Monday.

For the first six months of the year, the company said its net income hit P15 million, 18 times more than the P800,000 recorded last year.

First-half revenues almost tripled to P145 million from the last year’s P56 million.

“The 2022 first-half performance is a testament [to] the ability of the company to face increasing raw material costs and still protect its margins. We shall continue to create new product offerings which will bring happiness to our customers,” Mr. Yu said.

In the first half, Balai added seven stores to its network, bringing the total store count to 84 from 77 previously.

Of the 84 stores, 38 are Balai Pandesal, which the company is planning to expand to 80 by the end of 2022.

“With the Balai Pandesal commissary expected to be functional within Q32022 (third-quarter 2022), BALAI is on track to increase the number of Balai Pandesal stores to 80 by the end of 2022,” the company stated.

Balai is a wholly owned subsidiary of Fruitas Holdings, Inc. It has three brands in its portfolio, namely: Balai Pandesal, Buko ni Fruitas, and Fruitas House of Desserts.

On the stock market on Monday, Balai’s shares increased by 4.55% or P0.03 to P0.69 apiece. — Justine Irish D. Tabile

Cebu’s Nicole Borromeo crowned Bb. Pilipinas International

FROM (left to right): 2nd Runner-up, Stacey Daniella Gabriel; Miss Globe, Chelsea Fernandez; Miss Intercontinental, Gabrielle Basiano; Miss International, Nicole Borromeo; Miss Grand International, Roberta Tamondong; and 1st Runner-up, Herlene Nicole Budol. — PHOTO FROM FACEBOOK.COM/BBPILIPINASOFFICIAL

THE SEARCH for representatives to compete for the four beauty pageant crowns of Miss International, Miss Intercontinental, Miss Globe, and Miss Grand International ended last Sunday as Binibining Pilipinas crowned four winners at the Araneta Center.

Announced by Miss Universe 2018 winner Catriona Gray and Miss Grand International 2016 First Runner-Up Nicole Cordoves, the four ladies representing the country for four international pageants are as follows: Cebu’s Nicole Borromeo (Bb. Pilipinas International), San Pablo, Laguna’s Roberta Angela Tamondong (Bb. Pilipinas Grand International), Tacloban’s Chelsea Fernandez (Bb. Pilipinas Globe), and Eastern Samar’s Gabrielle Camille Basiano (Bb. Pilipinas Intercontinental).

Ms. Basiano also got the award for Best in Swimsuit and Best in Evening Gown. Cainta’s Stacey Daniella Gabriel was named Second Runner-up, and viral TV personality and Angono’s representative Herlene Nicole Budol won First Runner-up.

The evening started with 40 candidates, and they were pared down to 12. Special Awards were given near the start of the program, following a performance by P-pop group SB19 while the contestants were introduced onstage.

Graciella Sheine Lehmann won for Best National Costume, while Ma. Isabela David won for Best in Talent. Yllana Marie S. Aduana won the Face of Binibini award (Miss Photogenic). Eiffel Janell Rosalita won Bb. Friendship, and Bb. Pilipinas Grand International Roberta Angela Tamondong bagged Bb. Philippine Airlines. First Runner-up Ms. Budol won several awards: she started the evening as the winner of Bb. Manila Bulletin Readers’ Choice, and also won the awards given by sponsors Blackwater, Shein, Pizza Hut, Kumu, Jag, Silka, and World Balance.

The candidates were selected by a panel of judges consisting of the Ambassador of Greece Ioannis Pediotis, Department of Trade and Industry Secretary Alfredo Pascual, Chairman of the Philippine Chamber of Commerce and Industry George Barcelon, Slay Model Management Founder Cecilio Asuncion, Miss International 2018 1st runner-up Ahtisa Manalo, Miss Globe 2015 Ann Colis, news anchor Rico Hizon, and actors Jane de Leon and Joshua Garcia.

During the Question and Answer Round, Ms. Budol was the only candidate to be asked and to answer a question in Tagalog, to the cheers of the crowd at the Araneta Center. Bb. Pilipinas International Ms. Borromeo was asked by actor Donny Pangilinan, “On a scale of one to 10, how would you rate yourself as a responsible Filipino citizen, and why?” Ms. Borromeo answered, “As a responsible Filipino citizen, I would like to give myself a good eight. Because I know that there’s always room to improve. There’s so much I don’t know, but there’s so much I’m willing to learn, and I hope to do that with you.” —  Joseph L. Garcia

Engineering firm develops digital enterprise platform

By Revin Mikhael D. Ochave, Reporter

ESCA Engineering recently unveiled a digital enterprise platform that will make it easier to manage construction projects.

ESCA President Ernesto S. de Castro said that Project Information Management 345D (PIM345D), its digital Building Information Modeling (BIM) platform, is now being used in the company’s projects.

“We have developed the PIM345D and we’re actually using it in projects right now. The beauty about this is we actually connect the field, the office, the site, the designers and owners. This information is available in one application. We believe that this is something that’s going to be a game-changer in our industry,” he said during a media briefing at Makati City on July 28.

ESCA’s PIM345D encompasses all BIM process and processes, and seeks to solve the challenge of technological adoption in the country due to the prohibitive cost of technology licenses.   

The platform allows ESCA’s clients to have an entire suite of applications required to imagine, design, engineer, construct, and manage a project in a single digital framework.

“PIM345D empowers local and national government agencies, private developers, and project proponents with a digital solution within their budget that includes project management, design, construction, engineering, scheduling, resourcing, and cost management applications into a single integrated, connected, and mobile project information management tool,” ESCA said.   

According to ESCA, the new platform is scheduled to have a Philippine and international market launch in the first part of 2023 once extensive testing is finished.

The company added that pricing for the new digital BIM platform has yet to be determined.

Sought for additional comment, Mr. De Castro said that the price will be more affordable than other available platforms.   

“We will make it very, very affordable. It will be 30% of what could cost you to use other software,” he said.

Meanwhile, ESCA Engineering also announced that it has an ongoing partnership with Manila Electric Co. (Meralco) to retrofit an initial 15 business centers of the electric utility firm. 

The company disclosed that the retrofitting, nearly a two-year engagement period, will allow Meralco’s business centers to sustain additional weight for new solar panel installations while also implementing other structural disaster-proof improvements.   

“Meralco has been a trusted energy infrastructure backbone for the National Capital Region for generations of Filipinos, and we are grateful for their continued trust in ESCA Engineering. We are excited to deliver client value through significant engineering improvements across this initial group of customer-facing business centers,” ESCA Engineering Chief Executive Officer Jean Jacquelyn Nathania A. de Castro said. 

In the same media briefing, ESCA Engineering also introduced a new visual identity and corporate brand name, which was previously ESCA, Inc. 

“ESCA Engineering reflects who we are now and our focused business — a digitally driven and engineering-centric service firm, ready to seize new opportunities for our clients across the Philippines and around the world,” Ms. De Castro said.

BPI sees loan book growing despite rising rates

BANK of the Philippine Islands expects its loan portfolio to continue growing despite rising interest rates. — BW FILE PHOTO

BANK of the Philippine Islands (BPI) is bullish on its consumer banking business and expects its loan portfolio to continue expanding despite rising interest rates due to faster inflation.   

“We are seeing the economy mobilizing and we see this in our loan releases on the consumer side,” BPI Head of Consumer Banking and Executive Vice- President Maria Cristina “Ginbee” L. Go said at a virtual briefing on Monday.

Ms. Go said BPI’s regular housing loan releases are 48% higher than last year’s. She added that the bank’s auto loan releases are growing at 29%.   

“These allow us to provide greater traction in the ensuing months as we continue to monitor the impact of interest rates in our loan books. However, we don’t think that the increase in interest rates will drastically change demand,” she added.

“I think we have to be watchful of inflation… We have to watch where interest rates might go to battle inflation,” BPI President and Chief Executive Officer Jose Teodoro K. Limcaoco said.

“We maintain a very conservative stance here at BPI. We are not reducing our provisioning that we started at the beginning of the year. We will continue to maintain that pace,” Mr. Limcaoco added.

The Bangko Sentral ng Pilipinas (BSP) has raised benchmark interest rates by a total of 125 basis points (bps) so far this year as inflation remains elevated.

BSP Governor Felipe M. Medalla last week signaled a hike of 25 or 50 bps at their Aug. 18 meeting, although he ruled out another off-cycle increase. The central bank had raised rates by 75 bps in a surprise move on July 14.

Headline inflation hit a near four-year high of 6.1% in June, bringing the first-half average to 4.4%, above the BSP’s 2-4% target and 5% forecast for the year.

The BSP expects the July reading to be in the 5.6-6.4% range. July inflation data will be released on Friday.

DIGITALIZATION
Meanwhile, BPI said it spent about P9 billion on technology in 2021, which included digital initiatives such as building customer engagement platforms and investments in cybersecurity.

The Ayala-led bank continues to focus on digitalization, customer obsession, and sustainability efforts as it celebrates its 171st year in the country this month, officials said on Monday.

“As the pioneer bank in the Philippines and Southeast Asia, BPI has developed a long and rich history of banking excellence. It is a testament to our unwavering commitment to maintain the deep trust our clients have placed in us by being prudent, innovative, and nurturing,” Mr. Limcaoco said.

“We also always continue to adapt in order to meet our customers’ changing needs and the demands of an evolving economy,” he added.

BPI Executive Vice-President and Chief Operating Officer Ramon L. Jocson said the bank’s spending on cybersecurity is at around 10% of its technology budget. 

“We are spending a lot on cybersecurity because it’s a growing concern for us given the increased malware introductions in the system. The second reason is that with technology adoption, we see more clients who can potentially be victims,” Mr. Jocson said.

As of 2021, 4.9 million of its 8.46 million client base were enrolled in the bank’s digital channels.

BPI’s net income rose by 82.9% to P12.5 billion in the second quarter from the P6.8 billion recorded in the same period last year. This brought the lender’s net earnings for the first half of the year to P20.4 billion.

The Ayala-led lender’s shares declined by P2.95 or 3.17% to close at P90.05 each on Monday. — K.B. Ta-asan

MPTC unit expects up to 10% rise in CAVITEX vehicle count by Nov.

AN INCREASE in average daily vehicle volume of up to 10% is expected on the Manila-Cavite Expressway (CAVITEX) when physical classes resume in November, according to Cavitex Infrastructure Corp. (CIC), a unit of Metro Pacific Tollways Corp. (MPTC).

“With more vehicles expected to ply the 14-kilometer CAVITEX going to different schools and universities in Metro Manila, CIC foresees a 5-10% increase in daily average vehicle count versus current traffic,” the company said in an e-mailed statement.

Currently, an average of 150,000 motorists traverse the expressway every day.

“To help manage the increasing number of traffic that has now surpassed pre-pandemic numbers, CAVITEX had been activating counterflow lanes for Class 1 vehicles at Manila-bound (in front of Waste Transfer Facility and after Parañaque Toll Plaza) and Cavite-bound (in front of PITX and after Parañaque Toll Plaza) during rush hours of morning and afternoon, respectively and as needed,” the company said.

It said customers should avail of its free Easytrip RFID (radio frequency identification) to avoid long queues at cash lanes and for faster lane transactions.

“Expressway motorists can drop by CAVITEX Customer Service Centers (Manila- and Cavite-bound) and at other stations along the expressway for free RFID installation and reloading services,” CIC noted.

MPTC officially introduced in February its MPT DriveHub, a smartphone application that houses the company’s mobility solutions for customers.

The application allows motorists to manage their trips through its three key features: RFID, trip planning, and roadside assistance.

“Our MPT DriveHub app was developed to further elevate our customer experience, so we really encourage them to download it. The app not only allows them to monitor their balance and passages but also provides them with traffic updates that are useful in planning their trips. The app may also be used to connect with us for queries or emergency roadside assistance,” said CIC President and General Manager Raul L. Ignacio.

MPTC is the tollways unit of Metro Pacific Investments Corp., one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — Arjay L. Balinbin

BDO’s income climbs in Q2

BW FILE PHOTO

BDO UNIBANK, Inc. posted a higher net profit in the second quarter on better net interest earnings and service charges, fees and commissions, as well as foreign exchange gains.

The bank booked an attributable net income of P12.205 billion in the second quarter, up 10.64% from the P11.031 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 P23.943 billion, 12% higher than the P21.421 billion seen in the comparable year-ago period, amid “strong” results across the lender’s core businesses.

The bank said in a statement that its pre-provision operating profit was at P39.2 billion, 18% higher year on year, showing the strength of its core income sources amid a tempered increase in operating expenses.

BDO’s first semester performance translated to a return on average common equity of 11.26%, up from 10.75% the year prior, and a return on average assets of 1.3%, also better than the 1.26% seen in the first half of 2021.

“BDO’s established business franchise, healthy capital position, and sustainable earnings performance reinforce the bank’s resilience against prevailing macro headwinds and put it in a good position to capitalize on the country’s structural opportunities for long-term sustainable growth,” the lender said.

The bank’s net interest income in the second quarter stood at P35.537 billion, rising by 9.6% from the P32.423 billion posted a year prior.

This was driven by the 5.64% growth in its interest earnings from loans and receivables to P32.705 billion, as well as the 31.94% increase in its income from trading and investment securities to P5.883 billion.

These helped offset the slight rise in its interest expenses to P3.514 billion from P3.47 billion.

For the first semester, BDO’s net interest income was at P69.449 billion, 8% higher than the P64.444 billion seen in the same period last year, amid an expansion in earning assets and improved funding costs.

Meanwhile, the bank’s non-interest income was at P17.596 billion in the second quarter, up by 22.95% year on year from P14.311 billion.

The increase came on the back of a 34.1% rise in its income from service charges, fees and commissions to P9.294 billion, as well as the 215.35% growth in its foreign exchange gains to P2.321 billion from P736 million, offsetting the P1.172-billion net trading loss seen in the quarter versus the P511-million net gain posted the year prior.

BDO’s non-interest earnings for the first half grew 15% to P34.276 billion from P29.681 billion on the back of an expansion in fees and insurance premiums.

On the other hand, the lender’s total operating expenses for the second quarter went up by 9.41% to P32.692 billion from P29.88 billion. For the first half, expenses climbed by 6% to P64.54 billion from P60.949 billion.

The bank’s net loans and receivables stood at P2.52 trillion as of June, up by 2.86% from the P2.45 trillion seen at end-2021, with customer loans growing by 9% year on year.

Its nonperforming loan (NPL) ratio declined to 2.39% at end-June from 3.12% a year prior.

Despite improved asset quality, BDO set aside P8.2 billion in provisions for impairment losses in the first half, up by 21% year on year. This brought its NPL coverage ratio to 138%.

Deposit liabilities grew by 5% to P2.96 trillion as of June from P2.82 trillion at end-2021 on the back of the expansion of demand (10%), savings (4%) and time (4%) deposits. BDO said current account, savings account deposits now comprise 85% of the total.

The bank’s capital adequacy ratio was at 14.48% as of June, inching down from 14.99% a year prior. Still, this remained well above the regulatory minimum of 10%.

Total resources rose by 10% year on year to P3.8 trillion as of June amid higher consumer loans and investment securities, mainly funded by deposits.

BDO’s shares went down by P5.70 or 4.77% to close at P113.80 apiece on Monday. — BVR

Bureau of Quarantine to open more satellite offices in Robinsons Malls

THE Bureau of Quarantine (BoQ) is opening more satellite offices in Robinsons Malls.

Robinsons Malls in a statement said it signed a partnership with the BoQ to open five satellite offices in Robinsons Galleria, Robinsons Place Manila, Robinsons Place Tacloban, Robinsons Galleria Cebu, and Robinsons Cagayan de Oro.

The BoQ satellite offices in malls will make it more convenient for overseas Filipino workers, seafarers and other individuals to secure an International Certificate of Vaccination (ICV).

The ICV, also known as the yellow card, is a certification recognized by the World Health Organization.

Applicants should register at www.icv.boq.ph, prepare documentary requirements and proceed to Robinsons Malls on their scheduled appointment date.

“Robinsons Malls is honored to have the Bureau of Quarantine as an important part of our Lingkod Pinoy programs nationwide. This partnership allows us to better provide our customers with easier and more convenient access to relevant government services,” Joel Lumanlan, Robinsons Malls VP for Operations, Marketing, and Business Development, said in a statement.

Metro Clark expands landfill capacity 

METRO CLARK Waste Management Corp. (MCWM) announced that it completed its expansion project at its landfill facility in Kalangitan in Clark, Pampanga as part of its efforts to meet the country’s growing waste disposal requirements.

“The country’s first engineered sanitary landfill was expanded to fulfill MCWM’s mission to provide world-class waste disposal services to more cities, municipalities, and industrial clients in Central Luzon. The company pointed out that all projections by both local and foreign experts show that the volume of Philippine waste will continue to increase, and already exceeds the total capacity of existing landfills in the country,” the firm said in a statement on Monday.

Citing a study by the Stockholm Resilience Center, MCWM said that the Philippines currently ranks as the top contributor to plastic pollution in the oceans, putting the country among the five largest producers of plastic waste worldwide.

“It is our job to monitor these studies and projections, and proactively plan accordingly. The yearly increase in solid waste in the Philippines, while sobering, was expected. While recycling and other trash reduction measures do help and must be done, there’s just so much waste that the only solution is to expand,” MCWM Executive Vice-President and General Manager Victoria E. Gaetos said.

“We made the decision to invest in this expansion even during the height of the COVID-19 (coronavirus disease 2019) pandemic because this is in the best interests of our clients, and ultimately, of the communities we serve,” she added.

The expansion covered the development of seven more hectares within MCWM’s 100-hectare grounds. It will be used for municipal waste disposal, the addition of leachate treatment plants for the proper eradication of waste by-products, and a new separate disposal cell for treated industrial waste.

The company also acquired new vehicles, equipment, and other fixed facilities to increase operational efficiency. The expansion will also allow the firm to dispose of its clients’ waste to the same international standards and according to global best practices.

Ms. Gaetos added that the firm hopes to widen its coverage as more local government units (LGUs) and industry players look for waste management solutions that are cost-effective, efficient, and strictly compliant with the Ecological Solid Waste Management Act.

MCWM is the country’s first engineered sanitary landfill. It is the exclusive developer of the solid waste management system of the Clark Freeport and Special Economic Zone, including New Clark City.

The 100-hectare landfill can handle up to 4,000 tons of waste per day, which services multiple industries as well as over 150 LGUs including the cities of Pampanga, Bataan, Nueva Ecija, and Pangasinan. — Luisa Maria Jacinta C. Jocson

Citi completes sale of PHL consumer unit to UnionBank

CITIGROUP, INC. has completed the sale of its Philippine consumer banking business to UnionBank of the Philippines, Inc. (UnionBank), it said on Monday.

The transaction covers Citi’s credit card, unsecured lending, deposit and investment businesses, as well as Citicorp Financial Services and Insurance Brokerage Philippines Inc., which provides insurance and investment products and services to its retail clients.

“The agreement covers related Citi staff, with approximately 1,540 consumer bank and supporting employees transferring to UnionBank,” the foreign bank said in a statement.

It said the transaction is expected to result in a capital benefit of about $700 million for Citi.

Citi will continue to maintain a corporate banking presence in the Philippines.

“The sale marks the second completed divestiture and underlines the progress we continue to make. UnionBank is the optimal owner for our local consumer business and we wish our former employees and customers continued success in the future… [We] will use the capital generated to invest in our strategic priorities,” Citi Chief Executive Officer (CEO) of Legacy Franchises Titi Cole said.

“This transaction represents a positive outcome for our clients, our colleagues and our firm. Citi will continue to serve institutional clients in the Philippines and across our global network as we have for over 120 years,” Citi Philippines CEO Aftab Ahmed said.

UnionBank’s acquisition of Citi’s local consumer unit, priced at P55 billion, was announced in December 2021.

Citi’s departure from the Philippine retail banking space was announced in April 2021 as part of the banking giant’s strategic refresh. Apart from the Philippines, the lender said it will also exit its consumer banking businesses in Australia, Bahrain, China, India, Indonesia, South Korea, Malaysia, Poland, Russia, Taiwan, Thailand and Vietnam.

“To date, the bank has signed deals for the sale of nine of these markets, including the previously announced completion of Australia and is in the process of winding down consumer banking in South Korea,” Citi said on Monday.

It will continue to offer consumer banking in Hong Kong, Singapore, London and the United Arab Emirates, the bank’s four wealth hubs.

UnionBank’s shares declined by P2.70 or 3.35% to close at P78 each on Monday. — BVR

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