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PAL says ‘comprehensive restructuring’ plan going on amid Chapter 11 news

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FLAG carrier Philippine Airlines (PAL) assured the public on Tuesday that its operations will not be affected by its ongoing “comprehensive restructuring.”

The statement was issued on Tuesday in response to a request for comment on a report posted on FlightGlobal, an aviation news and information website, that the airline had informed its lessors of a plan to file for Chapter 11 bankruptcy protection in the United States by the end of the month.

“Philippine Airlines management and stakeholders continue to work on a comprehensive restructuring plan that will enable PAL to emerge financially stronger from the current global crisis,” the flag carrier said in a statement sent via Viber on Tuesday evening by its spokesperson, Cielo C. Villaluna.

“As the work is ongoing, we will make the necessary disclosures at the proper time, once details are finalized,” PAL added.

The company also said that any restructuring will have no effect on its flights or operations.

The flag carrier is increasing its international and domestic flights “as the market recovers with easing restrictions,” it noted.

“We continue to operate repatriation flights and transport COVID-19 vaccines to and throughout the Philippines, as part of the global effort to combat the pandemic.”

In November last year, the Finance department said the flag carrier was planning to seek court protection from creditors as it was working on a debt restructuring plan.

Local airlines have been pushing for the relaxation of travel restrictions to gradually restore air travel demand amid the global health crisis.

Aviation think tank Center for Asia Pacific Aviation (CAPA) has said airline revenues are expected to be “close to catastrophic” in the first half of the year.

CAPA expects business travel to be at “as much as 50% of previous levels” in the second half of 2021.

PAL Holdings, Inc., the listed operator of the flag carrier, has not yet released its 2020 annual report and its report for the quarter ended on March 31.

To recall, PAL’s total revenues for the first nine months of 2020 stood at P45.29 billion, down 61.6% from the previous year’s P117.85 billion.

Its net loss to parent equity holders hit P28.85 billion, or more than three times the P8.49 billion recorded in 2019.

PAL Holdings shares closed 0.86% higher at P5.86 apiece on Wednesday. — Arjay L. Balinbin

Yields on term deposits drop on GDP data ahead of BSP review

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YIELDS ON the central bank’s term deposits declined on Wednesday following the release of the first-quarter gross domestic product (GDP) data and ahead of the Monetary Board’s policy review where it was expected to keep benchmark rates steady.

Tenders for the term deposit facility (TDF) of the Bangko Sentral ng Pilipiinas (BSP) amounted to P528.647 billion on Wednesday, higher than the P520-billion offer, but lower than the P583.062 billion in bids seen last week.

Broken down, demand for the seven-day term deposits reached P160.199 billion, surpassing the P150 billion auctioned off by the BSP and the P157.385 billion in tenders logged in the previous auction.

Accepted rates were from 1.7% to 1.745%, slightly narrower than the 1.7% to 1.7499% range logged a week ago. This caused the average rate of the one-week papers to inch down by 0.61 basis point (bp) to 1.7253% from 1.7314% previously.

Meanwhile, the two-week papers attracted tenders worth P368.448 billion, lower than the P370-billion offer as well as the P425.677 billion seen on May 5.

Lenders asked for yields ranging from 1.68% to 2.1999%, a wider range compared with the 1.7% to 1.76% band seen last week. With this, the 14-day paper’s average rate dropped by 0.94 bp to 1.7392% from 1.7486% previously.

For the 29th consecutive week, the central bank did not auction off 28-day papers to give way to its weekly offerings of bills with the same tenor.

Term deposits and the BSP’s short-term securities are used by the central bank to gather excess liquidity in the financial system and guide market rates.

The lower yields fetched for the term deposits on Wednesday reflected the market’s reaction to first-quarter Philippine GDP data released on Tuesday, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a text message.

The economy contracted more than expected in the first three months of 2021, extending the recession to five straight quarters as the pandemic dragged on, data from the Philippine Statistics Authority showed.

GDP fell by an annual 4.2% in the quarter ending March, worse than the median estimate of a 2.6% decline in a BusinessWorld poll last week.

This marked five consecutive quarters of GDP decline, marking the longest recession since the Marcos era when economic output shrank for nine consecutive quarters from the fourth quarter of 1983 to the fourth quarter of 1985.

Mr. Ricafort added that the decline in TDF yields also came ahead of the central bank’s policy meeting later on Wednesday.

A BusinessWorld poll last week showed 15 out of 17 analysts expected the central bank to keep the overnight reverse repurchase rate at 2% as the BSP continues to support the economy, even with inflation still beyond its 2-4% annual target.

Inflation stood at 4.5% for the second straight month in April mainly due to higher food prices particularly of meat products. — L.W.T. Noble

Cebu Air shareholders approve long-term incentive plan for employees

SHAREHOLDERS of Cebu Air, Inc., the listed operator of budget carrier Cebu Pacific, approved on Wednesday the company’s long-term incentive plan for its employees, partly aimed at attracting and retaining key talents.

Majority of the shareholders voted to approve the plan during the company’s annual stockholders’ meeting on Wednesday morning.

“The plan is being established with the following objectives in mind: first, to foster ownership mentality among senior management; second, to drive performance and value creation; and third, to attract, retain and motivate key talents,” Cebu Air Corporate Secretary Anne Romadine P. Tieng said at the meeting.

Under the incentive plan, eligible employees may be granted either restricted stock units or stock options.

“Any plans of restricted stock units and stock options will be subject to an award agreement, which will contain the terms and conditions of the award,” Ms. Tieng said.

Cebu Air’s corporate governance committee will be tasked to administer the plan.

The company’s board of directors approved the plan on March 29 this year.

Cebu Air has said it would allocate up to a total of 2% of its issued and outstanding common shares to be granted to “eligible employees.”

The company has reported a net loss attributable to equity holders of P7.3 billion in the first quarter, compared with a net loss of P1.18 billion in the same period last year.

It has also announced the completion of its “business transformation fund-raising plan raising a total of P40.5 billion ($845 million) in three tranches” to face the coronavirus pandemic.

Cebu Air shares closed 0.31% lower at P48.15 apiece on Wednesday. — Arjay L. Balinbin

Shakey’s to receive P1.25-billion investment from Gokongwei firm

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SHAKEY’S Pizza Asia Ventures, Inc. (SPAVI) said on Wednesday it is set to receive a P1.25-billion investment from Gokongwei-led JE Holdings, Inc., which will become one of its stakeholders.

SPAVI said in a regulatory filing that JE Holdings, a private investment firm of the Gokongwei family, will infuse the amount in exchange for 152.44 million new primary shares equivalent to around 9% ownership stake.

“This equates to a purchase price of P8.20 per share — a 10% premium over the company’s latest stock price and 14.6% higher than the latest 45-day volume weighted average,” SPAVI said in the disclosure.

“JE Holdings’ entry comes at a time of recovery in both SPAVI’s sales and profitability coming from lows experienced during the height of COVID-19-related lockdowns,” it added.

SPAVI said Lance Y. Gokongwei, JE Holdings chairman and president, will also be up for election as a member of the company’s board of directors during its stockholders’ meeting in July.

Vicente L. Gregorio, SPAVI president and chief executive officer, said the company remains optimistic in its long-term prospects and is looking forward to the entry of the Gokongwei family.

“We believe that we are in a relatively good position financially, and with the added benefit of a new strategic investor, we plan to make the most of both the fresh round of capital and the various synergies that come along with partnering with the Gokongwei group of companies,” Mr. Gregorio said.

“While our current balance sheet remains healthy, I look forward to further strengthening our financial position, with the new capital giving us additional flexibility at a time when many organic and inorganic opportunities have started to open up,” SPAVI Chairman Christopher T. Po said.

Separately, SPAVI announced in a separate regulatory filing on Wednesday that recorded a first-quarter net income of P29 million, lower by 75% from its P114-million after-tax income a year earlier.

The company’s net revenues fell 30% to P1.28 billion from P1.84 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) declined 31% to P240 million.

SPAVI’s system-wide sales for the first quarter reached P1.7 billion, a 28% decline from P2.31 billion in 2020.

“Though sales were down 28% year on year, this recovery rate nonetheless represents a 500-basis point improvement versus that of the previous quarter,” the company said in the disclosure.

SPAVI said dine-in sales fell in the first quarter due to the seasonality aspect of the restaurant industry, together with fears of stricter quarantine protocols and more contagious variants of the coronavirus disease 2019 (COVID-19).

Amid lower dine-in sales, the company said its delivery and carryout sales posted double-digit year-on-year growth and carried the business during the period.

Mr. Gregorio said the ongoing pandemic still heavily affects the restaurant sector, with consumers choosing to stay at home or experiencing difficulties due to the country’s economic situation.

“The latter part of this quarter also saw the re-imposition of stricter measures to curtail dine-in, disrupting the part of our business which was experiencing a relatively good trajectory before then,” he said.

During the first quarter, SPAVI said it opened eight net new stores as part of its goal to open a net of 30 new stores this year, excluding ghost kitchens or delivery support.

“These new branches will follow a smaller format and will be geared to service both in-store and out-of-store consumption in response to guests’ emerging needs for fast, convenient, and safe dining experiences,” the company said.

On Wednesday, shares of SPAVI at the stock exchange improved 6.3% or 47 centavos to end at P7.93 apiece. — Revin Mikhael D. Ochave

LANDBANK lets clients open digital accounts via mobile app

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STATE-RUN Land Bank of the Philippines (LANDBANK) launched on Wednesday its digital on-boarding system (DOBS) mobile application to allow its clients to open digital savings accounts without needing to visit its physical branches.

LANDBANK said applicants are required to fill out an application form and upload a photo of a valid identification card through the mobile app to open a digital ATM savings account, it said in a statement on Wednesday.

The digital account can be used for cardless withdrawals via the mobile app, fund transfers and bills payments.

It said the time to open an account was effectively reduced to 10-15 minutes since clients no longer need to go to a physical branch to complete the process.

To upgrade the bank account to a regular LANDBANK Visa debit card, however, clients still have to visit a branch to request for a physical card.

“The DOBS Mobile underscores LANDBANK’s continued commitment to provide accessible, convenient, and safe digital solutions. Our digital banking initiatives remain centered on balancing service delivery while ensuring the health and safety of our clients which is of utmost priority,” LANDBANK Branch Banking Sector Head, Executive Vice-President Julio D. Climaco, Jr. said.

The DOBS was introduced by LANDBANK in December 2018 as the first online bank portal in the country. As of April 30, there were 1.53 million accounts opened through the bank’s website.

LANDBANK’s net income went down by 7.57% to P17.1 billion in 2020 from P18.5 billion in the previous year.

SEC greenlights Ayala Corp.’s P30-B debt program

THE Securities and Exchange Commission (SEC) has given the go signal for Ayala Corp.’s P30-billion debt securities program.

“In its meeting on May 11, the commission en banc resolved to render effective the registration statement of Ayala, subject to the company’s compliance with certain remaining requirements,” the corporate regulator said in a statement on Wednesday.

The listed conglomerate has set P6 billion for the first tranche of the program consisting of three-year bonds due in 2024 and five-year bonds due in 2026, with an oversubscription of up to P4 billion.

The bonds will be listed and traded on the Philippine Dealing & Exchange Corp.

Around P9.88 billion of net proceeds is expected from the first tranche of the P30-billion debt securities program should the oversubscription option be exercised.

According to the company’s prospectus filed with the SEC at the end of March, majority of the proceeds will be used to pay for its short-term loans and it will partially be used to fund the company’s capital expenditures.

Ayala Corp. assigned BPI Capital Corp. as the transaction’s issue manager, joint lead underwriter, and bookrunner.

BDO Capital & Investment Corp., China Bank Capital Corp., First Metro Investment Corp., and SB Capital Investment Corp. were also tapped as joint lead underwriters and bookrunners.

RECYCLING INITIATIVES
Meanwhile, the company’s real estate arm Ayala Land, Inc. said it was able to recycle 28 metric tons of plastic waste into eco-products last year.

Ayala Land collaborated with Green Antz Builders, which converted the dry plastic waste to construction materials like bricks, pavers, and casts.

“The cycle involves collecting clean and dry plastics at designated drop-offs and transporting them to eco-hubs, which are recycling facilities where the plastics are shredded and incorporated into concrete products developed by Green Antz,” Anna Maria Gonzales, sustainability manager of Ayala Land, said in a statement.

Dry plastic waste products were collected from its properties and communities and Ayala Land said these were recycled into eco-materials as part of the company’s “circular waste management” initiative.

As a result, the converted plastic waste materials are now used in Ayala Land’s estates and sites as pathways, fences, and sidewalks.

Ayala Land said the total plastics it was able to recycle in 2020 may be compared with how much dry plastic waste may be collected from its two largest malls in a regular year.

“Processing and using these eco-products effectively prevented clean and dry plastics from Greenbelt and Glorietta from ending up in dumpsites,” Ms. Gonzales said.

Shares of Ayala Corp. at the local bourse went down by 1.76% or P13 on Wednesday to close at P727 each, while Ayala Land stocks slipped by 0.93% or 30 centavos to finish at P31.95 apiece. — Keren Concepcion G. Valmonte

Florals in Spring? Groundbreaking 

Yes, if we’re talking about drinks

WHILE the heat of summer blazes on in the Philippines, Don Papa Rum flexes its global reach by coming out with a spring campaign called “Sweet Sugarlandia Spring.”

 In a Zoom conference on May 10, the Bleeding Heart Rum Company showed off its glossy spring campaign photos shot by Steve Tirona. These were taken at the historic Dawnridge House, seen in the Netflix series Ratched, and known as one of America’s best-designed homes, thanks to its previous ownership by designer Tony Duquette.

 “Spring is not necessarily a Filipino concept,” said Monica Llamas Garcia, Director of Communications for Bleeding Heart Rum Co., Don Papa’s parent company. “How many seasons do we have here? What do they say, two? Hot, and hotter?”

 But the Philippines is not the only place where the brand is available. Ms. Garcia notes that since its founding in 2012, Don Papa is now present in about 30 countries, its reach spanning from South Africa, North America, to New Zealand. “The whole spirit of Don Papa is all about inclusivity. We look at the seasons of the entire world.”

 “The idea of spring is all about the idea of rebirth, and looking forward to better things ahead,” she said. The spring campaign is part of an ongoing series (“Winter” was launched last December), and the slant towards temperate seasons (and the accompanying culture) is not incidental. More campaigns based on the seasons are set to be launched later this year (as is a new Don Papa expression).

 The campaign is also accompanied by cocktails (of course). The brand relied on its US Brand Ambassador, Tomas delos Reyes, for two tipples: Botanica Obscura (Don Papa Rum, lemon juice, hibiscus syrup, bitters) and Avalon Awakens (Don Papa Rum, pineapple juice, lime juice, velvet falernum, ube syrup). 

“You usually think of spring cocktails as shaken, and bright, airy,” he said during the Zoom call. “The main element and inspiration came from many years of experiencing the turn of winter to spring in New York City. It’s really just energy popping in the air.”

These cocktails will be available soon through Run Rabbit Run’s cocktail delivery service.

“I kind of wanted to present them like exotic flowers.” — Joseph L. Garcia

Loans disbursed by credit surety funds hit P6.9B at end-2020

PHILIPPINE STAR/ GEREMY PINTOLO

BORROWINGS from credit surety funds (CSF) amounted to P6.925 billion last year as more micro-, small- and medium-sized enterprises (MSME) needed financing, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin E. Diokno said on Wednesday.

The central bank chief said estimates from a BSP survey of 30 CSF correspondents showed loans from the program reached P6.925 billion as of end-December.

Credit extended by CSFs stood at just P2.08 billion in 2015, which was when the program was institutionalized under the Republic Act 10744 or the Credit Surety Fund Cooperative Act.

“The same upward trend can be seen in the cumulative number of beneficiaries with only 66 in 2009 growing to 15,233 in 2015,” Mr. Diokno said in an online briefing.

“As of end-2020, an estimated 17,527 beneficiaries have benefited from the CSF program since its launch as an advocacy program in 2008,” he added.

There were 55 CSFs across the country as of 2020, 14 of which are registered with the Cooperative Development Authority (CDA), which is the lead implementer of the program. For its part, the BSP is in charge of the promotion of CSF cooperatives and providing technical assistance for both CDA and CSF cooperatives.

“At least 15 more CSFs are expected to be registered by yearend with the rest likely to complete the process next year,” Mr. Diokno said.

Funds disbursed through the program come primarily from the contributions of well-capitalized cooperatives and local government units, as well as government financial institutions such as the Development Bank of the Philippines, Land Bank of the Philippines, and the Philippine Guarantee Corp.

The program is meant to provide financing for small businesses, as it gives “a maximum surety cover of 80% to loans granted by banks to MSMEs, which serves as an alternative to hard collaterals”, Mr. Diokno said.

While MSMEs make up about 99% of the country’s businesses, the sector faces financing constraints due to collateral requirements.

“Through this [CSF] mechanism, banks gain additional confidence in lending and expanding their exposure to cooperatives and MSMEs. At the same time, cooperatives and MSMEs under the program enjoy access to bank financing to enable them to grow their business, create jobs, and support their local economy,” Mr. Diokno said. — L.W.T. Noble

Globe eyeing new products to ‘regain momentum’

GLOBE Telecom, Inc. is planning to offer new products and services as it prepares for increased competition in the telecommunications industry, its top official said.

“Globe is stepping up its efforts so you will start to see more aggressive offers that will give the people basically more value for their money,” Globe President and Chief Executive Officer Ernest L. Cu said in an e-mailed statement on Wednesday.

The company said the new offerings it is set to introduce should “strengthen its leadership in the mobile sector and regain business momentum despite mobility restrictions, as it continues to gear up for increased competition.”

“The company is determined to reinvent its products and services while embarking on a sustained network upgrade and expansion,” Globe added.

Credit rating agency Fitch Ratings has said Globe Telecom and PLDT, Inc. would be “accelerating their network rollout in mobile and fiber broadband” because of the entry of the third telco player, DITO Telecommunity Corp., which targets to capture 30% of the telecommunications market.

DITO is currently capable of serving 37.48% of the country’s population, according to a technical audit report by R.G. Manabat & Co.

The third telco has a commitment to cover 84% of the population and provide an internet speed of at least 55 megabits per second by the end of its fifth year of commercial operations.

“Certainly, at this point, we don’t see that (effect) yet given the very wide disparity in coverage between them (DITO) and the two incumbents,” Mr. Cu said.

Globe noted that DITO only runs on fourth-generation (4G) and 5G networks “that cater mostly to data services and not voice calls and SMS.”

The Ayala-led telco targets “to own the widest 5G coverage worldwide with more upcoming launches in Europe and North America,” the company said.

Globe announced last week that its attributable net income reached P7.31 billion in the first three months of the year, up 11% from P6.58 billion in the same period in 2020.

Its total revenues for the first quarter rose 4% to P42.85 billion from P41.19 billion in the same period last year.

Service revenues — which include mobile, home broadband, corporate data, and fixed line voice — increased 2.5% to P37.81 billion from P36.88 billion previously.

Globe Telecom shares closed 1.67% lower at P1,829 apiece on Wednesday. — Arjay L. Balinbin

2020 Doreen Gamboa Fernandez Food Writing Award: Welcoming the goat to our tables

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By Jeanne Rebollido Jacob-Ashkenazi

(Third Prize winner of the 2020 Doreen Gamboa Fernandez Food Writing Award)

I WONDER why eating goat generates such divergent reactions. Maligned as “poor man’s beef,” yet it has graced a royal table, that of Spain’s King Philip II, after whom, we all know, our country was named. For the third course of his Christmas feast, Cabrito Asado y Mechado was presented, noted in the cookbook of the royal chef Antonio Martinez Montiño, published in 1611. Kid — cabrito or chivo — has been highly esteemed Christmas fare since, whether as the Extremaduran classic Caldereta de Cabrito with roasted and mashed liver sauce, ancestor of our own Caldereta, or the Guisado de Cabrito en Sidra in Asturia, heady with the fumes of apple cider, or the Malagan Chivo al Ajillo, with its glorious surfeit of garlic.

Perhaps it’s the smell exuded by mature goats that turns some people off. However, true lovers of goat meat, like those who prefer mutton to lamb, enjoy the savor and scent of mature chevon (yes, its name has been gentrified). Older, less tender goat meat lends itself to long, slow, moist cooking, and its intrinsic aroma is sufficiently robust to stand up to fennel and mace and diverse bold spices in Rendang Kambing, a celebratory dish for Hari Raya in Indonesia and Malaysia. Goat, historically dubbed “mutton” in India and Pakistan to cosset colonial British sensibilities, performs equally well in Korma, marinated in yogurt overnight for tenderness, then gently braised with cardamom, cumin, coriander, and more. Goans pride themselves on their goat Xacuti (“xa” pronounced “sha”), meltingly rich with coconut cream and redolent with white poppy seeds, pepper, chilies, nutmeg, cloves, and star anise. For the purist caprine gastronome, in the land where raw attests to unquestionable freshness and impeccable quality, mountain goat (yagi) sashimi in Japan’s southernmost prefecture, Okinawa, offers a different gustatory experience altogether.

From the Near East (the goat’s center of domestication over 8,000 years ago) to Central Asia, Eastern Europe to Central and South America, including the Caribbean, the goat is far from lowly fare. It has always been at center stage for feasts and celebrations. In our country, there appears to be a gender divide (and dare I say, perhaps a class one too) about eating goat, with men keenly salivating at the prospect, particularly when alcoholic drinks are involved, and ladies regarding the idea with revulsion, gagging at the imagined hircine reek —  its anggo (attributed to the chemical 4-ethyloctanoic acid). This ambivalence is puzzling because goat cheeses, especially French ones, are highly regarded by both female and male gourmets. Even where goat meat is unwelcome, its cheese, when coated in pankō and grilled, is an inevitable and popular first course at British gastro-pubs (the French word for goat cheese, chèvre, doubtless worked its charm there). Nonetheless it is all the more curious because lamb, its nearest relative, is not subjected to the same disdain (their only difference is a mutation, resulting in the sheep’s wooly fleece).

The goat’s shady reputation may also be attributed to Greek mythology. The god of the wild, Pan, is depicted as half-goat, half-man who plays music on reeds and seduces nymphs. The word “goat” can mean “lecher,” an association with the unbridled behavior of male goats during the mating season. It is not too far-fetched to regard goat dishes as aphrodisiacs, with the soup called Mannish Water a must at Jamaican weddings. This (quite likely unjustified) reputation may well explain the ribald repartee of male cooks preparing Pinapaitan (soup of beef or goat innards with bile) and Kilawen (raw or half-cooked beef or goat in vinegar) at Ilocano feasts.

Goat meat is currently gaining worldwide acclaim as healthier red meat. It has lower cholesterol than beef and pork, as much protein as beef and more than chicken, and higher levels of iron. Goat farms in Tarlac and Mindanao are crossing local breeds with exotic stock, such as Nubian and Boer, for fleshier, more flavorful hybrids.

It may be time to expand our local repertoire beyond Caldereta and pulutan-style dishes, such as Batangueño Shampeni (or champeni, beef skin and innards cooked in a sauce) and Sinunggaok (soupy pork with yardlong beans and radish cooked with tomatoes and a bit of pork blood).

Roast suckling kid from modern hybrids can well rival lechon for succulence and tenderness. Besides Ensaimada, we might adapt another Mallorcan specialty —  Asado de Cabrito Estilo Mallorquín —  oven-roasted with our unique herbs over native tubers tugi or cassava, rather than potatoes, and basted with our local fruit wines. 

There is no lack of goat or kid dishes to inspire us — from Mexico and South America, whose flavor principles partially mirror our own colonial heritage, to the spice-rich dishes of our neighbors throughout Asia. The Ottoman Turkish culinary tradition throughout the Middle East and the Balkans offers luxuriant scope for sumptuous rice-cum-goat platters. A cornucopia of innovative dishes from professional kitchens in Australia, New Zealand, the UK, and the USA may provide additional inspiration, as contemporary chefs worldwide awaken to the flavorsome potential of goat. (Or chevon, if you prefer).

THE DOREEN Gamboa Fernandez Food Writing Award (DGF Award) recently announced the winners of the 2020 competition. The subject matter was “Livestock,” which, in the Philippines refers to cattle, pigs, goats, carabaos, and horses. The DGF Award is now in its 19th year. Named after the late dean of food writers, Doreen Gamboa Fernandez, it was founded to encourage writers to contribute to Philippine food literature. The winning essays of the first 15 years have been published in two books — Savor the Word and Sangkap.

PNB net profit climbs 34%

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PHILIPPINE NATIONAL Bank (PNB) booked a higher net earnings in the first quarter as lower expenses helped offset a decline in its total operating income.

The Tan-led lender’s net earnings rose by 34% to P1.791 billion in the quarter ending March from P1.337 billion in the same period in 2020, it said in its unaudited quarterly financial statement filed with the local bourse on Wednesday.

This translated to a return on equity of 4.68% as of March, up from 3.53% a year earlier. Return on average assets also improved to 0.61% from 0.49%.

The bank’s net interest income decreased by 6.69% to P8.237 billion from P8.828 billion a year earlier.

Its net interest margin dropped to 3.17% at end-March from 3.33% in the comparable year-ago period.

Meanwhile, net service fees and commission income improved by more than a third to P1.293 billion in the first quarter from P961.542 million on the back of higher credit card-related fees and underwriting fees.

On the other hand, PNB’s other income dropped by 38% to P1.552 billion from P2.512 billion amid lower gains from trading, investment, and foreign exchange

With this, the bank’s total operating income dropped 9.9% to P11.083 billion last quarter from P12.302 billion in the first three months of 2020.

Meanwhile, it reduced its operating expenses by 17.1% to P8.782 billion from P10.597 billion.

This decline was mainly attributed to lower provisions for impairment, credit, and other losses, which stood P2.095 billion, down by 37.5% from the P3.355 billion it set aside in the first quarter of 2020.

PNB’s loans and receivables inched up 1.5% to P609.3 billion as of end-March from P600 billion as of end-2020. Despite the decline in credit, its nonperforming loan ratio stood at 6.37%, higher than the 1.78% a year earlier.

Meanwhile, the bank’s deposit liabilities stood at P847.6 billion as of March, down 4.8% from the end-2020 level. Demand and savings deposits increased by 3.8% and 5.5%, respectively, while time deposits went down by 31.2%.

The bank’s capital adequacy ratio stood at 14.77% as of March, up from 14.72% a year earlier, while its common equity Tier 1 ratio was at 14.11%, also better than the 13.8% seen last year. Both were beyond the minimum regulatory requirements.

PNB’s shares closed at P28.50 apiece on Wednesday, down by 10 centavos or by 0.35%. — LWTN

Taking a virtual tour of a show kitchen

SINCE people haven’t been going out due to the coronavirus disease 2019 (COVID-19) pandemic, our homes have served as centerpieces in our lives. Kitchens in particular have taken on a particular importance, something that Focus Global, Inc., the distributor of Sub-Zero and Wolf (among other brands) in the country has focused on.

 Last week, the company unveiled the latest renovations to its Makati showroom in The Residences at Greenbelt. “Our brands Sub-Zero and Wolf have had the great honor of being part of Filipino homes for over 20 years,” said Lolita Sy, Executive Vice-President of Focus Global during a Zoom conference on May 6, adding that the brands entered the market in 2000. “Given the challenges of our times, our team has worked very hard the past year to make this showroom accessible.”

 While the showroom has been renovated, the pandemic has also made it necessary to do some housekeeping online. A revamped website features a virtual tour of this new showroom, and also makes it possible to book an appointment in advance (or even a video tour and talk with a representative).

 A virtual tour during the press conference showed the brands’ latest offerings. Sub-Zero is known as a food preservation specialist because of its advanced preservation technologies. Its refrigerators’ features include: a dual refrigeration system that ensures that air between the two compartments will never mix (which allows it to be cool and humid in the refrigerator and frigid and dry in the freezer); a NASA-based air purification technology that scrubs the air of odors, mold, viruses, bacteria, and ethylene every 20 minutes; and the precise temperature control which makes use of microprocessors that maintain interior temperatures within one degree of setpoint.

 They’ve also revamped the outdoor refrigeration and cooking units section, which shows outdoor grills and stoves by Wolf. The space was designed by architect Anna Sy, Managing Director of CS Design Consultancy, Inc. A press release also says, it “has taken COVID-19 safety protocols very seriously, to ensure clients a safe and delightful shopping experience.” 

 The products on the virtual tour are accompanied by little bubbles that show information about the product. Clicking on the little bubbles can also take you to view product specifications and other such details, and tools within the site make it easier for one to share product details with planners and designers.

 “For those who are not able to go out, it’s good to know that you can still explore the place through our virtual showroom from the safety and comfort of your home,” said Steven Sy, founder and President of Focus Global.

 Access the virtual showroom and website through https://subzero-wolf.com.ph/ and bit.ly/SZWFRez2virtualshowroom. — JL Garcia