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Meralco Bolts get their chance to do it right in Game Four, a win away from PBA crown

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By Olmin Leyba

SITTING on a 2-1 lead in a race-to-four dispute against Barangay Ginebra looked all too familiar for Meralco.

They were in the same situation back in 2016, the maiden edition of what has become a four-part Philippine Basketball Association (PBA) Governors’ Cup finals rivalry, but as everybody knows, that didn’t end well for Bolts, who eventually lost that one in six games.

Six years later, coach Norman Black and his troops get their chance to do it right in Game 4 and this time move a win away from their breakthrough PBA title.

“That was six years ago. We just have to live in the present, which is we’re up, 2-1, and we’ll be back on Wednesday,” Mr. Black said after the Bolts claimed the go-ahead 83-74 victory in Game 3 last Sunday.

“We have a couple of days to get our legs fresh and so do they. But in this business, you can’t live in the past, you have to live with what’s going on right now.”

Most pressing at this point is the strong fightback expected from the Gin Kings in the 6 p.m. dogfight likely to draw another huge crowd at the Smart Araneta Coliseum.

“Needless to say, we don’t want to fall too deeply into a (3-1) hole. It’s a must-win,” said Ginebra mentor Tim Cone, who rued how his charges “panicked” in the end game of the previous outing.

“We were disappointed with Game 3. We had our chances but they were tougher and better down the stretch. We’re hoping the extra day between games allows us to get over the disappointment and we can get our focus for Game 4.”

Justin Brownlee and Scottie Thompson banner the Gin Kings’ bid for the equalizer on the night they are tipped for personal achievements in the conference awards set at 5:55 p.m.

Mr. Brownlee looms as top candidate for Best Import versus Magnolia’s Mike Harris, Meralco’s Tony Bishop and NLEX’s Cameron Clark while the do-it-all Mr. Thompson contends for his first Best Player of the Conference accolade against NorthPort’s Robert Bolick and Arwind Santos, Phoenix’s Matthew Wright and TnT’s Mikey Williams.

Christian Standhardinger and LA Tenorio are similarly expected to step up as Ginebra tries to prevent the tough crew of Mr. Bishop, Chris Newsome, Allein Maliksi and Raymond Almazan from getting Meralco on the hill.

Big man Japeth Aguilar, who hasn’t seen action in the finals yet due to calf injury, remains a “game-time decision” for the Holy Wednesday encounter.

Gov’t partially awards reissued bonds on US CPI, Fed hike fears

BW FILE PHOTO

THE GOVERNMENT partially awarded the reissued Treasury bonds (T-bonds) it offered on Tuesday as investors asked for higher rates due to expectations of tightening by the US Federal Reserve and faster US inflation.

The Bureau of the Treasury (BTr) raised just P22.027 billion via the reissued five-year T-bonds it auctioned off on Tuesday, less than the programmed P35 billion, even as tenders reached P45.907 billion.

The reissued five-year debt papers, which have a remaining life of four years, were awarded at an average rate of 4.968%, 29.9 basis points (bps) higher than the 4.669% quoted when the series was last offered on March 15.

The average yield fetched for the debt papers was also higher than the 4.6929% quoted for the four-year tenor — the closest benchmark to the remaining life of the reissued papers — at the secondary market prior to the auction, based on the PHP Bloomberg Valuation Service Reference Rates published on the Philippine Dealing System’s website.

Had the Treasury made a full award of its offer, the reissued papers would have fetched an average rate of 5.019%.

National Treasurer Rosalia V. de Leon said in a Viber message to reporters that investors asked for higher rates following a rise in US Treasury yields due to hawkish comments from Fed officials last week, with the minutes of their March meeting also showing they intend to raise rates and reduce their asset holdings aggressively to fight rising prices.

“Markets also expect US inflation print in March to breach 8%,” Ms. De Leon said.

The Fed is expected to deliver two back-to-back half-point interest rate hikes in May and June to tackle runaway inflation, according to economists polled by Reuters who also say the probability of a recession next year is 40%.

With the unemployment rate near a record low, inflation the highest in four decades and a surge in global commodity prices set to persist, most analysts say the Fed needs to move quickly to keep price pressures under control, Reuters reported.

Fed officials in March “generally agreed” to cut up to $95 billion a month from the central bank’s asset holdings as another tool in the fight against surging inflation, even as the war in Ukraine tempered the first US interest rate increase.

Minutes of the Fed’s March 15-16 meeting showed deepening concern among policy makers that inflation had broadened through the economy, which convinced them to not only raise the target policy rate by a quarter of a percentage point from its near-zero level but also to “expeditiously” push it to a “neutral posture,” estimated to be around 2.4%.

Yields on US Treasury securities ticked higher after the release of the minutes last week, with the 10-year note yield climbing to 2.6%.

Economists polled by Reuters forecast the US consumer price index (CPI) to be released on Tuesday would post an 8.4% year-over-year increase for the month.

A trader in a Viber message said the auction result was “well within expectations,” as they expected the BTr to cap bids at 5%.

“However, we can also see that the market is really defensive given higher CPI forecasts and a much aggressive Fed tightening cycle,” the trader said.

“The partial award implies that dealers and investors are cautious and still hesitant to build up major positions in anticipation of higher yields in the months to come,” a second trader added.

The BTr plans to raise P200 billion from the local market in April, or P60 billion through Treasury bills and P140 billion via T-bonds.

The government borrows from domestic and external sources to help fund a budget deficit capped at 7.7% of gross domestic product this year. — T.J. Tomas with Reuters

Should you get a second COVID booster?

PHILSTAR

CHICAGO — US officials now say that people 50 and older can get a second coronavirus disease 2019 (COVID-19) booster shot to fortify their immune defenses against COVID-19. But for individuals in that group, the decision is complicated.  

Here are considerations health experts say people should weigh.  

WHAT IS THE RECOMMENDATION? 
Last month, the US Food and Drug Administration (FDA) and the Centers for Disease Control and Prevention said any person aged 50 and older can get a second COVID-19 booster of an mRNA vaccine from Moderna and Pfizer/BioNTech at least four months following their last shot.  

The same goes for people who are severely immunocompromised aged 12 and up as well as those who have received two doses of Johnson & Johnson’s shot.  

Dr. Peter Marks, director of FDA’s Center for Biologics Evaluation and Research, said the aim is to give older adults the option to top up waning vaccine protection against severe disease as the virus continues to circulate.  

The highly transmissible Omicron BA.2 subvariant has fueled cases in other countries and is now sweeping the United States, accounting for the majority of all coronavirus infections here.  

WHAT IS THE EVIDENCE? 
Data presented to a panel of FDA advisers last week showed that current vaccines lose much of their effectiveness in staving off infections from the Omicron variant but still do a good job at preventing severe disease, especially in people with healthy immune systems.  

Concerns about the variant’s ability to evade the vaccine as well as data showing the shots become less protective over time prompted US health officials to authorize a second booster.  

Evidence in favor of a second booster comes from an Israeli study of more than 1.2 million adults published last week in the New England Journal of Medicine. It showed that a fourth dose of the Pfizer/BioNTech vaccine lowered rates of severe COVID-19 among those age 60 and older but offered only short-lived additional protection against infection.  

WEIGHING THE RISK 
The decision to get a fourth dose should take into account a person’s individual risk factors, experts say.  

For people 65 and older, the immunocompromised, or those 50 and older with serious medical conditions, the answer is “pretty easy,” said Dr. William Schaffner, an infectious disease expert at Vanderbilt University Medical Center. They should get a second booster.  

But for healthy people over 50, experts are unsure available data makes a clear case for them to get another booster.  

“There’s no clear evidence that vaccine protection against severe illness is waning in healthy adults with functioning immune systems,” said Dr. Michael Daignault, emergency physician and chief medical advisor to Reliant Health Services, an Atlanta-based testing company.  

Dr. Daignault said the Israeli study may have been flawed by confounding factors such as other preexisting health conditions and behavior.  

“I’m not convinced that most people need a fourth dose — or second booster — at this time,” he said.  

Dr. Gregory Poland, a former FDA vaccine advisory panel member and head of Mayo Clinic’s Vaccine Research Group, said the decision is challenging for many.  

“I get many, many calls from my physician colleagues at the clinic and around the United States, wondering what to do,” he said.  

For people who have had a third shot, the risk of severe disease is already pretty low, said Dr. Jesse Goodman, an infectious disease expert at Georgetown University and a former FDA chief scientist.  

Dr. Goodman said a fourth dose “may reduce it further, but we don’t know for how long. That’s why this is such a difficult call,” he said.  

Dr. Goodman, who is 70, and Dr. Poland, who is 66, both said they are holding off on a fourth dose based on their current health.  

Because protection from a second booster is likely short-lived, Dr. Poland suggested people may want to time their shot for a trip, a high-risk event, or a new surge in cases. — Reuters

PhilWeb posts P5.6-M net income

GAMING and internet company PhilWeb Corp. announced that its first-quarter net income hit P5.58 million, lower by nearly 22% year on year, but it said revenues during the period were on an uptrend.

“Our revenues are now increasing with the easing of COVID restrictions. These were dampened due to the Omicron surge earlier this year, but our March 2022 revenues are the highest since our gaming services resumed in 2017,” PhilWeb President Brian K. Ng said in a statement on Tuesday.

He said the community quarantine restrictions had prevented patrons from visiting gaming venues from April to October last year.

“But the timely launch of our ‘egamescasino.ph Remote Gaming Platform’ at the end of March 2021 allowed our partners to continue to provide safe and legal gaming services to their registered patrons, in the safety of their own homes,” Mr. Ng added.

In the first quarter of 2022, the company said its revenues were up 32% to P181.7 million, while earnings before interest, taxes, depreciation, and amortization (EBITDA) was at P32.1 million.

In 2021, total revenues more than doubled to P538 million from P265 million in the previous year.

PhilWeb’s Chairman Gregorio Ma. Araneta III said the company’s services had already contributed more than P256 million to Philippine Amusement and Gaming Corp. and the government in the first quarter alone.

“Our business partners, the licensed venue operators, are able to provide a legal, regulated, trusted, and safe gaming experience to the public, whether it be inside the venue, or online. We look forward to growing and continuing this for the long term,” he said.

PhilWeb’s regulated gaming solutions currently covers more than 150 eGames and eBingo venues nationwide, up 75 locations as of end-2020.

In 2003, the company received a government license to launch e-Games Stations, which are Internet cafes exclusively dedicated to casino games.

PhilWeb’s subsidiaries include BigGame, Inc.; e-Magine Gaming Corp.; PhilWeb Asia-Pacific Corp.; Major Games and Amusement Corp.; and PhilWeb Mobile Lottery Corp.

At the stock exchange on Tuesday, PhilWeb shares were up by 3.57% or P0.08 to close at P2.32 each. — Luisa Maria Jacinta C. Jocson

Hugh Laurie brings Agatha Christie murder-mystery to TV

A scene from the TV show Why Didn’t They Ask Evans?. — IMDB.COM

LONDON —  British actor Hugh Laurie, best known for playing an eccentric doctor in the TV series House, brings what he says is his favorite Agatha Christie novel to the screen with his new TV show Why Didn’t They Ask Evans?.

The three-part mini-series was written, produced, and directed by Mr. Laurie, who also stars in a supporting role.

“I would say the novel has been a passion of mine for a long time,” Mr. Laurie, 62, told Reuters on the eve of the show’s debut.

“The more I thought about it, the more I enjoyed the idea of trying to get what I thought was a sort of comic adventure spirit onto the screen.”

Christie’s Why Didn’t They Ask Evans? was first published in the United Kingdom in 1934.

The novel, and the TV show, center around the affable Bobby Jones (Will Poulter), who finds a dying man near the cliffs of the Welsh seaside. The stranger is only able to utter the puzzling question of the title before he dies. Together with his childhood friend, Lady Frances “Frankie” Derwent (Lucy Boynton), Bobby sets out to find what happened to the man and provide an answer to his final query.

“There’s a snappy, almost American kind of style to it that I think she (Christie) was going for,” Mr. Laurie said of his source material.

“I felt it was a very precious thing to try and preserve and maybe in some places, go and explore a little further. But I’m trying to be as faithful to the spirit of the thing as I could.”

Why Didn’t They Ask Evans, which also stars Emma Thompson, Jim Broadbent and Paul Whitehouse, starts streaming on BritBox on Tuesday. — Reuters

Britney Spears expecting third child

SCREENSHOT FROM INSTAGRAM.COM/BRITNEYSPEARS

SINGER Britney Spears announced she is pregnant with her third child by posting a message on Instagram on Monday.

Ms. Spears, 40, not only revealed her pregnancy but also appeared to announce she has gotten married to her fiance Sam Asghari, 28, calling him her “husband” in the post.

Ms. Spears described how she noticed changes in her stomach that at first she dismissed as weight gain.

“So I got a pregnancy test … and uhhhhh well … I am having a baby,” she posted.

The pop star also recounted how she suffered depression during a previous pregnancy and how she now feels women can more openly discuss their mental health while pregnant.

“This time I will be doing yoga every day !!! Spreading lots of joy and love!!!” she wrote.

In June 2021, Ms. Spears complained in court in her conservatorship case that she was being prevented from marrying or having more children.

In November, a judge ended her 13-year conservatorship that had allowed her father, Jamie Spears, to control her personal life and $60 million estate.

Ms. Spears has two sons, Sean Preston, 16, and Jayden James, 15, from her previous marriage with Kevin Federline. — Reuters

Meralco outlasts Limitless, 22-18, advances to PBA 3×3 quarterfinals

LEG 4 winner Meralco 3×3 outclassed Legs 3 and 5 victor Limitless in a heavyweight showdown, 22-18, to go 3-0 and grab an early quarterfinal seat in the Philippine Basketball Association (PBA) 3×3 Second Conference Leg 6 on Tuesday at the Smart Araneta Coliseum.

Maclean Sabellina, Tonino Gonzaga, Dexter Maiquez and Joseph Sedurifa unleashed an 11-4 blast to take the fight out of the Appmasters, who struggled with a 1-2 start in Pool A action.

The Bolts made Limitless their third victims of Day 1 after previously stamping their class on Sista Super Sealers, 21-11, and NorthPort, 21-13.

Barangay Ginebra ran second in the group with 2-1, anchoring its output on a 21-17 upset of the Appmasters and a 21-11 mangling of Sista. The Gin Kings, though, fell to the Batang Pier, 21-16.

Fancied Appmasters Brandon Rosser, Jorey Napoles, Reymar Caduyac and Marvin Hayes have a win to show in three games, a 22-15 verdict over NorthPort, and face a must-win in Wednesday’s elims wind-up against Sista (1-2) to salvage a ticket to the Last-8.

TnT and Pioneer Pro Tibay, meanwhile, secured the two quarters spots from Pool B with back-to-back wins.

The Tropang Giga beat Terrafirma, 21-16, and San Miguel Beer, 21-18, while Pioneer prevailed against the Beermen, 17-16, and the Dyip, 16-12.

Purefoods matched TnT and Pioneer’s 2-0 marks to take pole position in Pool C ahead of Platinum Karaoke (1-1) and Cavitex (1-1).

The Titans dominated Master Sardines, 21-9, then turned back Platinum Karaoke, 21-17.  Platinum was victorious against Cavitex, 21-16, while the Braves won over the Fishing Champs via the same scoreline. — Olmin Leyba

Two digital banks approve 120,000 deposit accounts in less than a year

TWO DIGITAL BANKS onboarded more than 100,000 deposit accounts in less than a year of operations, the central bank said.

“I’m happy to share that they were able to onboard additional 120,000 deposit accounts in a span of less than a year,” Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said.

“With a seamless and innovative customer experience in a mobile application for account opening and with the relaxation of regulatory requirements for basic deposit accounts, the usual barriers to opening deposit accounts were addressed,” Mr. Diokno said.

Among the six entities that were granted digital bank licenses by the BSP, only state-led Overseas Filipino Bank and Tonik Digital Bank have started operating after being established last year.

The others given licenses by the BSP in 2021 are Uno Digital Bank, Union Digital Bank, GOTyme and Maya Bank. All are expected to start operating within this year.

The BSP has imposed a moratorium on granting digital bank licenses as it wants to monitor developments and foster competition in the sector.

“I think we plan to see first how they [digital banks] will perform relative to the regular banks… I’m thinking of a time horizon of about two years [for the moratorium],” Mr. Diokno said.

Digital banks, unlike traditional lenders, are not required to set up branches. Instead, they have digital platforms where clients can set up an account, deposit, or apply for a loan, among other services.

“This can spell the difference in digital bank operations and in greater market penetration, especially since 47% of Filipino adults are still unbanked,” Mr. Diokno said. The BSP hopes to bring in 70% adult Filipinos into the formal financial system by 2023.

Online lenders are also seen to help bridge the gap in financial services for micro, small, and medium enterprises (MSMEs), which make up about 99% of all businesses in the country.

“Digital banks can cater to MSMEs with low or no digital footprint in terms of historic electronic financial data,” Mr. Diokno said.

“A common strategy for these digital banks is to engage MSMEs through simple and quick deposit onboarding, then empower them with business solution platforms that facilitate the digitalization of MSME operations,” the BSP chief added. — L.W.T. Noble

From leptospirosis to dengue, the health risks created by improper waste disposal

PIXABAY

INDIVIDUAL BEHAVIOR — such as improper waste disposal — is exacerbating the effects of climate change.  

“Climate change is creating more severe weather events. Metro Manila can barely handle the heaviest rains, and we have areas that are naturally low-lying — from houses to streets, subdivisions, and even cities,” said Ricardo Noel R. Gervasio, supervising health program officer of the Health Promotion Bureau, in an April 7 webinar organized by the World Health Organization-Philippines. “What more if we exacerbate the problem by illegally dumping garbage?”  

There are 1,500 tons of garbage that are either dumped or burned illegally in Metro Manila alone, he added, citing the Asian Development Bank’s Garbage Book.  

“For context, a compact sedan — let’s say a Toyota Vios — weighs around one ton,” Mr. Gervasio told the webinar audience. “Imagine burning or dumping 1,500 Toyota Vioses everyday… and that’s just from illegal dumping.”  

Garbage is the “number one cause” of flooding in Metro Manila as it blocks drainage, said former Metropolitan Manila Development Authority Chairman Benjamin de Castro Abalos, Jr. in a June 2021 news report.  

Flooding can lead to waterborne diseases such as leptospirosis, a bacterial disease that people are susceptible to when they have to wade through contaminated water. It can also cause dengue outbreaks, as stagnant bodies of water become breeding grounds for virus-carrying mosquitoes.  

Practicing proper hygiene, including hand washing, becomes very important in the face of climate change, said Mr. Gervasio: “On the one hand, we have to warn people against drinking contaminated water during the rainy season. On the other hand, you have to remind people to conserve water for times when there isn’t enough to go around.”   

Climate change touches all seven areas in the bureau’s Health Promotion Framework Strategy: diet and exercise; environmental health; vaccine and immunization; substance use; mental health; sexual and reproductive health; and violence and injury prevention.    

Mr. Gervasio added that the upcoming elections will be key in implementing the national health roadmap: “Our votes count and can shape climate change resilience, the environmental impact our community has, and health in general.” — Patricia B. Mirasol

Cebu Pacific takes delivery of 18th eco-plane

BUDGET carrier Cebu Pacific (CEB) announced on Tuesday that it had taken delivery of its 10th A321neo (new engine option) from Airbus, as part of its strategy to boost operations by adding more environmentally friendly aircraft.

The newest A321neo is the airline’s 18th eco-plane, it said in an e-mailed statement.

The eco-plane “is known for its 20% increase in fuel-efficiency, on top of nearly 50% reduction in noise footprint compared to previous generation aircraft,” it added.

Cebu Pacific Chief Strategy Officer Alex B. Reyes said the airline’s shift to the more fuel-efficient neo engine aircraft “not only supports our sustainability strategy, but also enables us to continue offering our trademark low fares.”

“The arrival is timely because we see positive developments indicating recovery. We are continuously ramping up our domestic network and are preparing for more international destinations to ease restrictions for leisure travelers,” he added.

The airline aims to restore more than 100% of its pre-pandemic domestic capacity this month.

It recently renewed its partnership with the Singapore Tourism Board “to inspire Filipinos to travel again.”

“We believe this partnership is very timely as it’ll surely contribute to the recovery of both the industry, as well as our respective countries,” said Candice A. Iyog, vice-president for marketing and customer experience at Cebu Pacific.

The airline noted that Singapore recently reopened its borders to all fully vaccinated Filipinos. — Arjay L. Balinbin

Actors Johnny Depp and Amber Heard face off again in US libel trial

Johnny Depp and Amber Heard in a scene from the 2011 film The Rum Diary. — IMDB.COM

WASHINGTON — The latest chapter in Hollywood star Johnny Depp’s legal battle with ex-wife Amber Heard kicked off on Monday as a US defamation trial began over allegations Heard made about domestic abuse.

Mr. Depp, 58, has sued Heard for $50 million, saying she defamed him when she penned a 2018 opinion piece in the Washington Post about being a survivor of domestic abuse.

The op-ed never mentioned Mr. Depp by name, but Mr. Depp’s lawyers have said it was clear Ms. Heard was referencing him, and that the piece damaged his film career and reputation. Juror selection was completed on Monday and opening statements are slated to begin on Tuesday.

Mr. Depp has denied all allegations of abuse, saying in his lawsuit that Ms. Heard’s claims were an “elaborate hoax to generate positive publicity for Ms. Heard and advance her career.”

Mr. Depp and Ms. Heard both submitted long lists of potential witnesses they could put on the stand.

Ms. Heard’s list includes her ex-boyfriend and Tesla Chief Executive Elon Musk, who she texted with about Mr. Depp. Also on the list of potential witnesses is actor James Franco, who Heard testified in the London case inquired about bruises on her face following an alleged abusive incident with Mr. Depp.

Mr. Depp wants the Fairfax County jury to find that Ms. Heard knowingly made false claims.

Ms. Heard, for her part, will argue that she is shielded, or “immune,” from liability because her 2018 op-ed on domestic violence dealt with a matter of public concern.

“I never named him. Rather, I wrote about the price women pay for speaking out against men in power. I continue to pay the price, but hopefully when this case concludes, I can move on and so can Johnny,” Ms. Heard said in a statement released on Saturday.

The Washington Post is not a defendant in the trial. Mr. Depp’s lawyers have said they filed the case in Fairfax County, outside the District of Columbia, because the newspaper is printed at a facility there. Ms. Heard unsuccessfully tried to transfer the case to Los Angeles, where she and Mr. Depp lived.

Ms. Heard’s lawyers alleged “forum-shopping,” saying Mr. Depp’s attorneys sued in Virginia because they perceived it as a more favorable venue than California.

California has a more strongly worded “anti-SLAPP law,” a type of legal protection meant to shield journalists and others from frivolous lawsuits designed to silence them.

The US trial comes less than two years after Mr. Depp lost a libel case against The Sun, a British tabloid that labeled him a “wife beater.” A London High Court judge ruled he had repeatedly assaulted Ms. Heard and put her in fear for her life.

The United States is a difficult forum for libel plaintiffs, especially public figures like Mr. Depp, who faces several hurdles in the Virginia case. Mr. Depp must prove by clear and convincing evidence that Ms. Heard knowingly made false claims.

Under English defamation law, the person being sued has the burden of proving their claims were true.

Mr. Depp and Ms. Heard met while making The Rum Diary in 2011 and married four years later. Ms. Heard accused Mr. Depp of domestic abuse after filing for divorce in 2016.

Mr. Depp ascended to Hollywood stardom in the 1990s with portrayals of loners and outsiders in cult classics such as John Waters’ Cry-Baby and Tim Burton’s Edward Scissorhands. He became a household name with the swashbuckling Disney franchise Pirates of the Caribbean, playing fan favorite Jack Sparrow.

Ms. Heard, 35, is known for her roles in Aquaman and Justice League.

She has brought her own libel claim against Mr. Depp, saying he smeared her by calling her a liar. Her counterclaim will be decided as part of the trial, which could last for six weeks. Ms. Heard is seeking $100 million in damages from Mr. Depp, according to court papers.

In her evidence to the London High Court, Ms. Heard said Mr. Depp would turn into a jealous alter ego, “the monster,” after binging on drugs and alcohol and had threatened to kill her. She detailed 14 occasions of extreme violence when she said the actor choked, punched, slapped, head-butted, throttled and kicked her. The London judge accepted 12 of these accounts as true.

Following the Nov. 2020 ruling in the London libel trial, Mr. Depp was replaced with Danish actor Mads Mikkelsen in the third film in the Fantastic Beasts franchise, a spin-off from the Harry Potter books and films. — Reuters

PSBank’s credit rating kept at highest level

PHILIPPINE SAVINGS BANK (PSBank) got the highest grade from Philippine Rating Services Corp. (PhilRatings) as the lender maintained its solid capitalization and prudent loan provisioning.

PhilRatings retained PSBank’s PRS Aaa (corp.) grade with a stable outlook, suggesting the rating will likely be maintained for the next 12 to 18 months.

PRS Aaa is the highest grade assigned by the domestic credit rating agency, which means a company has a “very strong capacity” to meet financial commitments compared with other corporations in the country.   

“The ratings reflect PSBank’s strong market position, sound capitalization and prudent loan provisioning, strong parent and highly experienced management team,” PhilRatings said in a statement on Tuesday.

The rating took into account of the bank’s standing at the end of last year.

PhilRatings noted the lender maintained a healthy capitalization as its capital adequacy ratio rose to 24.3% as of end-December 2021 from 19.4% in 2020. This is also above the regulatory minimum.

Despite weaker asset quality due to a rise in bad loans, PhilRatings said PSBank responded by beefing up provisioning for potential losses.

“As gross nonperforming loans (NPL) ratio grew to 6.7% in 2020 from 3.6% in 2019, PSBank was proactive in its provisioning given the potential credit risks brought by the pandemic,” the ratings agency said.

It added that the thrift bank will benefit from the large asset base and capital of its parent Metropolitan Bank & Trust Co. (Metrobank). Metrobank had an 88.4% equity stake in the thrift lender as of end-2021.

“The management team [of PSBank], led by Jose Vicente L. Alde as president, is considered as highly experienced banking professionals. Mr. Alde’s solid background in information technology is seen as significant given the banking industry’s strong push for digitalization in response to the pandemic,” PhilRatings said.

PSBank’s net profit increased by 21% year on year to P1.5 billion in 2021. This was supported by higher fee income and lower loan loss provisions.

Its shares went down by 40 centavos or 0.72% to close at P55.10 apiece on Tuesday. — L.W.T. Noble

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