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Capital market operations to push through amid ECQ

Capital market participants are allowed to continue operations by implementing a skeleton workforce in their respective offices during the strict lockdown in Metro manila and nearby provinces. 

“The Securities and Exchange Commission (SEC) assured the investing public and corporate sector that the domestic capital market will remain open during the enhanced community quarantine (ECQ),” the corporate regulator said in a statement on Friday.   

The SEC said its main office in Pasay City will also continue operations with a skeleton workforce from 9 a.m. to 3 p.m. during the period.  

However, it encourages the public to transact business online.  

Under the new quarantine restrictions, only “Authorized Persons Outside their Residences” or APOR are allowed to go into and out of the NCR Plus bubble. Capital market participants qualify for the so-called APOR status.  

Individuals with the APOR status may present Inter-agency Task Force IDs issued by regulatory agencies with jurisdiction of establishments or persons, valid IDs or other documents issued by accrediting organizations or establishments allowed under the ECQ, and local IDs should local government units require them.  

The SEC released a list of registered institutions to assist in continuing operations of market participants amid the hard lockdown. The list may be saved and/or printed for use of concerned employees.  

“The said listing may be used as [a] reference by employees, together with their office ID, to support their claim of employment in a capital market institution and qualify as an APOR,” the SEC said.   

The list includes the following: the Philippine Stock Exchange, Inc., Securities Clearing Corporation of the Philippines, the Philippine Dealing and Exchange Corp., the Philippine Securities Settlement Corp., and the Philippine Depository and Trust Corp.  

It also covers investment houses, investment houses engaged in dealing government securities, underwriters of securities engaged in dealing government securities, eligible dealers in government securities, investment company advisers, mutual fund distributors, brokers/dealers of securities, transfer agents, registrars of qualified buyers, and mutual fund companies.   

Real estate investment trust (REIT) fund managers, REIT property managers, crowdfunding intermediaries, ATS operators, and transfer agents are also part of the SEC’s list of registered institutions. — Keren Concepcion G. Valmonte  

DoH raises alert level in 37 areas, including 8 Metro cities

PHILIPPINE STAR/ MICHAEL VARCAS

Philippine health authorities have raised the alert level in eight places in Metro Manila and more than 20 areas in other regions due to the increasing number of coronavirus cases and hospital utilization rates. 

This, as the country continues to battle a surge in coronavirus infections believed to be triggered by the more contagious Delta variant.  

Health Undersecretary Maria Rosario S. Vergeire said that Quezon City, Las Pinas, Muntinlupa, Pateros, Taguig, Malabon, Makati, and San Juan in Metro Manila are now under alert level four, the health department’s highest level based on the acuteness of coronavirus cases and health utilization rates.

“Alert level four areas are those whose risk classification have reached moderate to critical risk and whose utilization rate of either their total COVID-19 or ICU bed utilization are more than 70%,” she said during a virtual news briefing. 

Several areas in the Cordillera region, the Ilocos region, Central Luzon, Southern Tagalog, Western Visayas, Central Visayas, Eastern Visayas, Northern Mindanao, the Davao region, and Soccsksargen were also placed under the same alert level, she added. 

Sixty-one percent of about 3,800 intensive care unit beds in the country are in use as of Aug. 4, Palace spokesman Herminio L. Roque, Jr. said on Thursday. He added that 53% of isolation beds and 52% of ward beds were occupied. 

ICU occupancy in Metro Manila was at 59%, Mr. Roque said. Fifty-three percent of its isolation beds and 52% of ward are being used. 

DELTA CASES 

Also on Friday, the Department of Health (DoH) said 119 more people had been infected with the Delta variant, which was first detected in India, bringing the total to 450.

Of the additional Delta cases, 93 were locals, 20 were returning Filipinos, and the identities of six were still being verified, it said.

Of the 93 local cases, 18 had addresses in the National Capital Region, 14 in Southern Tagalog, 18 in Central Luzon, 31 in Western Visayas, eight in Northern Mindanao, and one each in Central Visayas, Eastern Samar, Zamboanga Peninsula and the Cordillera region, the agency said.  

“Based on the case line list, 118 cases have been tagged as recovered while one has an outcome that is being verified,” it said.  

The DoH said that Delta cases have been detected in all 17 cities and one municipality in the capital region. 

The agency said 125 more people had been infected with the Alpha coronavirus variant first detected in the United Kingdom, bringing the total to 2,093.

It added that the country had 2,362 cases of the Beta variant after 94 more Filipinos got infected with the virus strain first detected in South Africa. 

Metro Manila has been placed under the strictest lockdown level – Enhanced Community Quarantine or ECQ – which will run from Aug. 6 to 20. This after public health researchers from the independent OCTA research group had warned that there might already be community transmission of the Delta variant in the NCR.  

According to the World Health Organization, community transmission “is evidenced by the inability to relate confirmed cases through chains of transmission for a large number of cases, or by increasing positive tests through sentinel samples (routine systematic testing of respiratory samples from established laboratories).” 

VACCINATIONS TO CONTINUE 

Philippine pandemic officials earlier said the vaccination drive in Metro Manila would continue during the two-week enhanced lockdown, noting that the National Government would allot four million more vaccines for the region

Meanwhile, a support group for families and friends of political prisoners urged the government to consider its appeal to prioritize more than 215,000 prisoners in its coronavirus vaccination program

“We stress that no one should be left behind to ensure the effectiveness of any mass immunization program against COVID-19,” the organization, Kapatid, said in a statement. “Prisons and the communities surrounding them are inextricably linked.”

The government seeks to fully vaccinate 15 million Filipinos by the end of the month and sustain the average daily vaccination of 600,000 to 700,000, Health Undersecretary Myrna C. Cabotaje said earlier. 

The government is currently inoculating health workers, outbound migrant Filipino workers, family members of health workers, seniors, seriously ill people, essential workers, and the poor. Those not in these priority groups will get vaccinated as early as next month. 

CASE TALLY  

The DoH reported 10,623 coronavirus infections on Friday, bringing the total since the start of the pandemic to 1.63 million. 

The death toll rose to 28,673 after 247 more patients died, while recoveries increased by 3,127 to 1.53 million, the health department said in a bulletin.  

There are 74,297 active cases, 94.8% of which were classified as mild, 1.2% were asymptomatic, 1.8% were severe, 1.18% were moderate, and 1% were critical. 

The DoH said 94 duplicates had been removed from the tally, 87 of which were tagged as recoveries and one was reclassified as death. The agency said nine recoveries were tagged as active cases, while 150 recoveries were reclassified as deaths. 

One laboratory was not operational on Aug. 4, while five labs failed to submit data. — Kyle Aristophere Atienza 

Meralco suspends disconnection activities in areas under MECQ

PHILSTAR

Manila Electric Co. (Meralco) said it not disconnect customers in Cavite, Rizal, and Lucena City after the government announced that these areas are under modified enhanced community quarantine (MECQ). Meralco had already announced that it would discontinue disconnection activities in areas which had been previously placed under the stricter enhanced community quarantine (ECQ). 

This as banks have adjusted their working hours, and a transport company has assured customers of continued service throughout the ECQ. 

“Meralco will also suspend disconnection activities in these areas from Aug. 6 to 15,” the distribution utility said in a statement issued on Friday. “Meralco will continue vital operations such as meter reading, bill delivery, and will continue work around the clock to serve its customers, following an order of the Energy Regulatory Commission,” Meralco said.  

This comes two days after the Manuel V. Pangilinan-led firm announced that it was suspending disconnection activities in Metro Manila and Laguna which were placed under strict lockdown. 

Meralco previously said that its business centers (BCs), which accept payments and provide customer assistance, will operate with a skeleton workforce because of the rising number of coronavirus disease 2019 cases. Its BCs are open from 7 a.m. to 3 p.m. from Monday to Friday, and 7 a.m. to noon on Saturdays.  

Customers can contact Meralco through its website, social media pages, hotline, or mobile app. However, they must first book an appointment through the online customer appointment system before heading to the firm’s designated BCs. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

GRABCAR still available  

Meanwhile, ride-hailing and food delivery firm Grab Philippines has announced that its GrabCar services will continue during the ECQ, as will its food delivery, shopping, and messenger services — GrabFood, GrabMart, and GrabExpress. 

In a statement released Friday, the company also said that it has come up with GrabCar Bayanihan, “a dedicated fleet composed of vaccinated driver-partners and priced 15% lower than regular GrabCar rides, [which] will continue to provide mobility solutions going to and from vaccination sites to support the ongoing vaccination efforts against COVID-19.” 

BANKING HOURS 

Several banks also announced adjusted banking hours for their branches in areas covered by ECQ and MECQ, while others are waiving service fees for the duration of the lockdowns, which run from Aug. 6 to 20. Most of the banks are urging their customers to use online banking services to avoid COVID-19. 

Security Bank, for instance, said that its branches under the two strictest quarantine levels would observe shortened banking hours “until further notice.” Those branches in areas under ECQ will be open from 9 a.m. to 2 p.m., while those in areas under MECQ will be open from 9 a.m. to 3 p.m. Branches in areas under General Community Quarantine or GCQ, which is the second to the most lenient quarantine level, will maintain regular banking hours – 9 a.m.to 4 p.m. Some branches though may have different hours depending on the operating hours of the malls that they are in or local ordinances, said Security Bank in a statement. 

Meanwhile, BPI announced on its Facebook page that select BPI and BPI Family Savings Bank branches nationwide will remain open, but with shortened business hours. The complete list of open branches can be found in this link: https://bit.ly/branchadvisory. 

Philippine National Bank (PNB) is waiving the transfer fees for all purely domestic transactions of InstaPay and PESONet during the ECQ until Aug. 20. This, it said in a statement, “is to encourage more customers to stay at home amidst the ongoing health concerns brought by the new Delta variant of the corona virus.” While all domestic transfer fees for InstaPay and PESONet are waived, remittance fees still apply for foreign overseas transfers, it said.  

PNB branches will remain open from Monday to Friday at 9 a.m. to 3 p.m. during the ECQ. Bank customers can now also open their own PNB account online via the official website: www.pnb.com.ph. For those who may need cash, PNB will be deploying its mobile Bank On Wheels (BOW) to make cash accessible for customers in Metro Manila and Luzon. The BOW schedules are available on the bank website.  

While most BDO branches will stay open until 3 p.m. throughout the ECQ, certain branch operating hours may be affected by LGU guidelines, said the bank, as it encouraged customers to use its digital channels. 

Metrobank will have shortened banking hours nationwide until Aug. 20, with all branches open from 9 a.m. to 2 p.m., Mondays to Fridays. It noted that “local community measures may cause branch banking hours and cut-off times to be adjusted without prior notice,” and suggests checking with the LGU announcements or bank branch to confirm. The Metrobank website maintains a list of open branches which is updated regularly. 

The Development Bank of the Philippines (DBP) announced that its branches in areas placed under ECQ and MECQ will be operating on shortened banking hours, from 9 a.m. to noon, “unless otherwise declared or endorsed by the concerned LGUs, local health authorities, or local bankers’ associations.” The DBP website has a complete list of open and closed branches and their operating hours. 

All China Bank branches under ECQ will be open from 9 a.m. to 2 p.m., with check clearing cut-off time at 1:30 p.m. For branches under MECQ, banking hours are until 3 p.m., with check clearing cut-off time at 2:30 p.m. All other branches under the laxest levels of quarantine — GCQ and MGCQ — are open until 3:30 p.m. with check clearing cut-off time at 3 p.m. The bank’s website maintains a complete list of branches in areas under ECQ. 

RCBC branches in ECQ areas will have shortened banking hours from 9 a.m. to 2 p.m. until Aug. 20. 

EastWest bank’s regular hours have been modified to 9 a.m. to 3 p.m., Mondays to Fridays, until Aug. 20 for branches in Metro Manila, Bulacan, Cavite, Laguna, and Rizal, following the implementation of ECQ. Weekend banking is available in select areas which can be checked here: https://bit.ly/EastWestWeekendBanking 

The operating hours of UCPB branches under ECQ have been shortened – they are now open from 9 a.m. to 1 p.m. Some provincial branches have also had their hours shortened due to LGU directives. The complete list of UCPB branches and their schedules under quarantine are available here: www.ucpb.com/branches/.   

The banking hours of the NCR branches of Asia United Bank (AUB) will be 9 a.m. to 3 p.m., with the check clearing cut-off at 2 p.m., until Aug. 20.  

Robinsons Bank branches in ECQ areas will have shortened banking hours. Visit RBank website for the branch schedule at https://bit.ly/ECQRBankSchedule.

PBCOM is also suggesting customers check its website for the list of branches in quarantine areas and their corresponding schedules.

All PSBank branches nationwide will have shortened banking hours from 8:30 a.m. to 2 p.m., Monday-Friday, until Aug. 20. Clearing cut-off for check deposits will be at 2 p.m..

Union Bank of the Philippines (UBP) branches in ECQ areas will have shortened banking hours. The branches at Cardinal Santos Hospital, Medical City (Ortigas), St. Luke’s QC, and Medical Cener Paranaque will be open from 9 a.m. to 3 p.m. The branches at Dasmarinas (Binondo), Ayala SSS in Makati, Insular Ayala Paseo (The Ark), UN Ave. In Manila, Intramuros, Greenhills, Malabon, Kalookan 9th, Alabang Country Club, and Dagupan will all be open from 9 a.m. to 4 p.m. The branches at BGC Uptown Mall, Eastwood, Alabang Town Center, and St. Francis Shangri-La will be open from 10 a.m. to 4 p.m. The branch in Baliuag will be open from 9 a.m. to 2 p.m.  

Mobile wallet GCash is waiving all Padala fees of its new service, GCash Padala, until Aug. 20. — Angelica Y. Yang, with input from Luz Wendy T. Noble

Novavax seeks emergency use approval its COVID-19 vaccine in PHL

https://novavax.reportablenews.com/

US-based pharmaceutical firm Novavax, Inc. has applied for emergency use authorization (EUA) for its two-dose coronavirus vaccine in the Philippines, according to the Food and Drug Administration (FDA).  

Novavax has “applied for an EUA but their requirements are not yet complete,” FDA Director General Rolando Enrique D. Domingo told BusinessWorld in a Viber message on Friday.  

The country’s drug regulator has already approved eight vaccine brands for emergency use. 

Philippine vaccine czar Carlito G. Galvez, Jr. earlier said that the country had signed a supply deal with Novavax for about 30 million doses of its protein-based vaccine, also known as Covovax. 

In a study that involved 29,960 participants across 119 sites in the US and Mexico, Covovax demonstrated 100% protection against moderate and severe cases, Novavax said in a press release dated June 14. It added that the vaccine was 91% effective in high-risk populations and was 93% effective against “predominantly circulating Variants of Concern and Variants of Interest,” such as Alpha, Beta, and Gamma.   

The Serum Institute of India, the largest vaccine manufacturer in the world, produces the Novavax vaccines.  

The Indian biotechnology firm started the production of the first batch of Covovax vaccines in June. — Kyle Aristophere Atienza 

OCTA Research group welcomes possible House probe

THE OCTA Research group late on Thursday said it welcomed a possible probe by the House of Representatives into their projections and affiliations as cases of the coronavirus disease 2019 (COVID-19) Delta variant continue to surge.  

“OCTA Research welcomes public inquiries and fora that serve as opportunities for us to engage the public and disseminate our research work as well as to elaborate on the importance of scientific and evidence-based policymaking,” the group said in a formal statement.   

Filed on Tuesday by five lawmakers, House Resolution 2075 asks the House Committee on Good Government to probe the “qualifications, research methodologies, partnerships, and composition” of the OCTA Research group.  

“There is a public health and public policy need to ensure the safety and security of the population during this pandemic, and that information being distributed is correct and are not irresponsibly and erroneously published,” said the resolution.  

This comes after Edsel T. Salvaña, director of the Institute of Molecular Biology and Biotechnology at the National Institutes of Health-University of the Philippines Manila refuted OCTA’s projections of a surge in the National Capital Region, saying that it was based on “incomplete” and “erroneous” data.  

The resolution also seeks to investigate the researchers’ ties with the state-funded University of the Philippines. However, the think tank said that it is an “independent and interdisciplinary” organization. 

“The group is composed of alumni and professionals from the University of the Philippines and the University of Santo Tomas. The findings and recommendations of our research do not reflect the official position of the institutions aforementioned,” the group said in its statement.  

OCTA also said that it is “one with government, the private sector, and the entire nation” in tackling the COVID-19 pandemic.   

However, OCTA research fellow Fredegusto Guido P. David questioned in a DZMM Teleradyo interview on Friday whether the House is the “proper venue” for the inquiry into the group since “they might not be the expert” on the matter. 

Meanwhile, Cagayan de Oro City Rep. Rufus B. Rodriguez opposed the filing of the House Resolution, noting that the group helped him and city officials to act promptly over an increase of cases along with local infections of the COVID-19 Delta variant in the city.  

“This group should be supported, encouraged and requested to continue with their good work and the big help it is giving to our country in fighting this crippling health crisis,” he said. — Russell Louis C. Ku 

DILG withdraws show cause order vs Manila mayor

The Interior and Local Government department has withdrawn a show cause order issued to Francisco M. Domagoso, mayor of Manila, over the Philippine capital’s supposed failure to fully implement a 2018 memorandum in relation to President Rodrigo R. Duterte’s war on drugs. 

Mr. Moreno was elected mayor of the city in 2019.

The show cause against Mr. Moreno was an “inadvertent re-issuance,” Department of Interior and Local Government (DILG) Undersecretary Ricojudge Janvier Echiverri said in a memorandum issued Friday. 

“By virtue of this error and the guidance of policies and procedures of the Department, we are hereby withdrawing the document in issue,” the memorandum read.  

The show cause order, which was based on a 2018 performance audit, asked Mr. Moreno to explain within 10 days why he should not be held liable for the supposed failure of the Manila City government to effectively run its anti-drug abuse councils.  

“It was an honest mistake on his part and on the part of his staff,” DILG Undersecretary Jonathan E. Makaya told CNN Philippines when asked to clarify the order made by his colleague. 

In 2019, Mr. Moreno had responded to a similar order claiming that Manila performed badly in an anti-drug abuse audit under the term of his predecessor, Joseph E. Estrada.  

HIGHER OFFICE? 

Speculation is rife that Mr. Moreno may run for president in next year’s elections, although he is yet to announce that he is running. He placed second in the latest presidential poll by Pulse Asia Research Inc. that was released in July. The chief of the Philippine capital came in second to presidential daughter and Davao City Mayor Sara Duterte-Carpio, who is open about running for the country’s top post.  

On Thursday, Mr. Moreno resigned as vice-chairman for political affairs of the National Unity Party (NUP), which was formed by former party mates of ex-President Gloria M. Arroyo. He also withdrew his membership in the party. 

“I am very thankful to the party for giving me the chance to serve it the best way possible,” Mr. Moreno said in his resignation letter addressed to party officials.   

The NUP has already thrown its weight behind the potential presidential bid of Ms. Duterte-Carpio in the 2022 polls.  

A PDP Laban faction led by a Cabinet official recently endorsed Senator Christopher Lawrence T. Go as president and President Rodrigo R. Duterte as vice-president at next year’s elections. — Kyle Aristophere Atienza 

Stranded HK OFWs need PH gov’t support — Migrante

PHILIPPINE STAR/EDD GUMBAN

OVERSEAS Filipino Workers (OFWs) feel abandoned by the Philippine government as they receive no support while they wait in Manila for the day they can go to their jobs in Hong Kong, said a labor group. 

Speaking at press conference on Friday via Zoom, Migrante International Chairperson Joanna Concepcion said that the government should prioritize stranded OFWs as recipients of cash relief; ensure that OFWs with approved visas be given priority for free vaccines; provide temporary accommodation in lieu of financial assistance for renting boarding house; and should assist the OFWs when recruitment agencies try to collect excessive fees and require multiple mandatory medical examinations.  

“Why do OFWs suffer because of the Duterte government’s ineptitude in handling the virus? Instead of lockdowns, financial relief and government temporary shelters should have been immediately provided to the stranded OFWs who come from far-flung provinces without relatives to rely on in Metro Manila,” a Migrante press statement said. 

Numerous OFWs, stranded in Manila, shared similar stories in the press conference. They apply for work in Hong Kong, have their flight cancelled several times, worry about the expiration of their visa, incur debt while waiting, then are forced back to their provinces to survive.  

“The longer they stay in the Philippines, the longer their miseries are,” said the United Filipinos in Hong Kong Chairperson and Secretary-General of Migrante International Dolores Balladares. 

Ms. Concepcion explained that although HK opened its doors to workers bound for Hong Kong on Monday, the stringent requirements the Hong Kong government requires made workers feel uncertain. 

“The entry ban is only one form of the discriminatory policy of the Hong Kong government that our migrant workers are fighting against. Filipino migrant workers are among those who are severely suffering because of the Philippine government’s ineptitude in handling its overall COVID-19 pandemic response,” said Ms. Concepcion. — Alyssa Nicole O. Tan 

Indictment of US diplomat highlights need for stricter laws vs. sexual abuse — Brosas

A HOUSE lawmaker who advocates for the protection of women said on Friday that the indictment of US diplomat Dean Cheves by a federal grand jury in the Eastern District of Virginia highlights the need for stronger support for victims of sexual abuse.  

“Young girls from the poorest and most neglected parts of the country are falling prey as many foreign sex offenders are invading the Philippines to exploit the dire state of families under this economic crisis,” said Gabriela Party-list Rep. Arlene D. Brosas  

The US Department of Justice said on Tuesday that Mr. Cheves, who had served at the US Embassy in Manila from September 2020 to February 2021, was indicted for engaging in sexual activity with a Filipina minor.   

“Court documents further detail that Cheves allegedly engaged in sexual activity with the minor on two occasions, knowing the minor’s age, and produced cell phone videos of himself engaging in the sex acts each time. The videos were found on Cheves’s devices seized from his embassy residence while in the Philippines,” they said.   

If found guilty, Mr. Cheves could face up to 30 years in prison for “engaging in illicit sexual conduct in a foreign place” and up to 10 years for possessing child pornography.  

Ms. Brosas said that while she welcomes the decision by the US justice department, she added that the Philippine government should provide support to the victim should cases be filed in local courts.  

She also urged the House to immediately pass the Online Sexual Abuse and Exploitation of Children Law which was passed by the Senate on third and final reading on May 31. A counterpart measure filed by Tarlac Rep. Victor A. Yap is currently pending in the House Committee on Revision of Laws.  

Ms. Brosas also urged the passing of amendments to the Anti-Rape Law that seeks to raise the legal age of sexual consent from 12 years old to 16 years old. This was already passed at the House through House Bill 7836, while Senate Bill 2332 is still pending for second reading.  

“Women and other victims of rape who would want to seek justice through the judicial system must be given ample remedies under the law,” she said. — Russell Louis C. Ku 

Off-site passport renewal center to open in LA

An alternative, off-site passport renewal center, operated by Visa Facilitation Services (VFS) Global, will open soon in Los Angeles. This is in order to address the increased demand for ePassport renewal applications, the Department of Foreign Affairs said in a press release. 

VFS Global is described as a private third-party outsourcing service provider. It will process the renewal of passports that “have non-complex, non-sensitive and non-discretionary elements.” VFS Global will be charging an additional fee for its services. 

“The DFA reached the agreement with VFS Global in line with President Duterte’s directive for Philippine agencies to streamline procedures and to make ePassport renewal services faster and more convenient, especially for Overseas Filipinos,” Consul General Edgar B. Badajos was quoted as saying in the press release. 

There are already VFS Global Philippine Passport Renewal Centers (PaRC) in Riyadh and Jeddah, Saudi Arabia; and Abu Dhabi and Dubai in the United Arab Emirates (UAE). 

Opening the renewal center in Los Angeles was necessary because demand for the service has already surpassed the Consulate’s operating capacity “by a wide margin.” 

“Passport renewal through the VFS Global PARC is not compulsory. It is up to the applicant to decide whether to apply through VFS Global or through the DFA-Global Online Appointment System (GOAS),” the Consul General said.  —  Alyssa Nicole O. Tan 

Moody’s affirms LANDBANK’s rating, places UCPB under review for upgrade

BW FILE PHOTO

MOODY’S Investors Service maintained the “Baa2” rating of the Land Bank of the Philippines (LANDBANK), saying its capital is expected to remain stable even after its impending merger with the United Coconut Planters Bank (UCPB). 

LANDBANK’s outlook was also retained at “stable”, which means its credit rating will likely be steady in the next 12 to 18 months. 

“The outlook on LANDBANK’s ratings, where applicable, is stable because LANDBANK’s healthy capital and a very high level of government support offset downside risks from asset quality,” Moody’s said in a note on Friday. 

Moody’s expects LANDBANK’s common equity Tier 1 ratio to stay higher than 12%, which is within its comparable historical levels, even after the merger with UCPB. 

It said the government’s P27.5-billion capital infusion as provided by the Bayanihan II will offset the expected capital erosion resulting from its acquisition of UCPB, which Moody’s estimates “will have negative net worth at the time of the merger”. 

Meanwhile, LANDBANK’s asset quality is expected to remain weak due to the coronavirus crisis, although Moody’s noted that its large volume of corporate loans will help offset the impact of the pandemic. It noted that the bank’s bad loan ratio of 2.9% at end-2020, which climbed from 2.1% the prior year, was similar to those recorded by its other rated Philippine banks. 

Moody’s added that LANDBANK’s profit could be similar to the 2020 level as credit costs are expected to remain high. 

Despite the continued risks from the pandemic, Moody’s believes LANDBANK will continue to have strong funding and liquidity, supported by its role as the payments bank of the government.  

A rating downgrade is possible if there is a further weakening in the lender’s asset quality due to the crisis or a downgrade in the Philippines’ sovereign rating. 

On the other hand, an improvement in the timeliness and transparency of the bank’s financial reporting, or significantly lower credit risk concentration in its exposure to individual borrowers and industry groups could become grounds for a rating upgrade, Moody’s said. 

UCPB RATING UNDER REVIEW 

Meanwhile, the debt watcher is reviewing whether to upgrade UCPB’s “Ba3” rating depending on the impact of its merger with LANDBANK. This means a downgrade is unlikely in the meantime, Moody’s said. 

“UCPB’s long-term ratings could be upgraded to align with that of LANDBANK upon completion of the merger with LBP, a larger and more-systemically  important state-owned bank in the Philippines,” it said. 

President Rodrigo R. Duterte in June signed Executive Order 142, which approved the merger between the lenders, with LANDBANK as the surviving entity.  

Based on central bank data, as of end-March, LANDBANK was the country’s second biggest bank in terms of assets with P2.405 trillion, while UCPB placed 13th with P322.906 billion. — LWTN 

BSP makes full award of 28-day bills

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded its offer of short-term securities on Friday as yields went down amid hints of a possible reduction in reserve requirements and lower oil prices. 

The central bank awarded P100 billion in 28-day bills as planned as bids for the offer amounted to P165.88 billion, beating the P117.75 billion logged last week. 

Accepted rates for the papers ranged from 1.7475% to 1.78%, a narrower band compared to the 1.735% to 1.9279% margin in the previous auction. With this, the average rate of the one-month securities inched down by 1.5 basis points (bp) to 1.7619% from 1.7769% last week. 

The BSP bills and the term deposit facility are used by the central bank to gather excess liquidity in the financial system and guide market rates. 

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said rates of the BSP bills inched down after the central bank said it is open to another cut in banks’ reserve requirement ratios (RRR), which would infuse additional liquidity into the financial system. 

The BSP said lowering the RRR remains “on the table”, Bloomberg reported on Wednesday. 

The reserve requirement for big banks is currently at 12%, still one of the highest in the region. The central bank last cut big banks’ RRR in April 2020 with a 200-bp reduction. 

In July 2020, it likewise slashed the reserve requirements of thrift and rural banks by 100 bps to three percent and two percent, respectively.  

The central bank’s easing measures have infused about P2.2 trillion in fresh liquidity into the financial system, equivalent to about 12.1% of gross domestic product. 

The Monetary Board will have its next policy-setting meeting on Aug. 12. However, it has adjusted its RRR outside these meetings in the past. 

The decline in global oil prices also caused the yields on the BSP securities to drop, Mr. Ricafort added. 

Reuters reported that while US crude oil futures picked up on Friday, prices remained on track for their biggest weekly decline since late October due to worries on how restrictions caused by the spread of the Delta variant could affect demand. 

US West Texas Intermediate crude futures declined 6.4% this week, the biggest weekly loss since the end of October. Meanwhile, Brent crude oil futures shed 6.5% this week, the most since March. — L.W.T. Noble with Reuters 

PBB net income down 10% in Q2

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PHILIPPINE Business Bank (PBB) recorded a lower net profit in the second quarter, it said on Friday. 

The bank’s net earnings declined by 10% to P363.8 million from P400.4 million in the same period a year ago as net interest income stood at P1.374 billion, down 1.29% from P1.392 billion. 

This brought its first semester net income to P524 million, 34% lower than the P794.87 million seen last year. 

However, its core income in the period increased by 1.82% to P1.397 billion from P1.372 billion, which PBB attributed to the 53.9% decrease in its interest expense to P431.4 million. 

“In the next two quarters, the bank will continue to strengthen its core business while managing its risk assets and servicing the needs of its key clientele — the small and medium enterprises,” PBB President and CEO Roland R. Avante was quoted as saying. 

The bank’s loans and receivables rose 4.2% to P87.9 billion as of June from P84.346 billion a year earlier. 

On the funding side, PBB’s deposit liabilities stood at P102.9 billion, also up by 8.25% against the P95.053 billion seen at end-June 2020. Current account, savings account (CASA) deposits rose 41%, while time deposits reached P45.3 billion, PBB said. Its portfolio’s mix improved to 56:44 in favor of CASA deposits from 43:57 a year ago.  

Meanwhile, the bank’s assets reached P122.7 billion as of June, rising by 6.8% from P114.848 billion a year earlier. 

Its capital adequacy ratio stood at 14.41% at end-June, well above the regulatory requirement. 

PBB’s shares closed at P10.32 apiece on Friday, down by two centavos or by 0.19% from its previous finish. — LWTN