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Demand for vacation homes rise

LANDCO.PH/PENINSULA-DE-PUNTA-FUEGO.

GATED RESORT property prices outside Metro Manila have surged in 2021 as the pandemic fueled demand for vacation homes, Leechiu Property Consultants (LPC) said.

The land values of gated residential resorts increased, with Peninsula de Punta Fuego prices rising to P20,000-P100,000 per square meter this year, from P14,000-P50,000 in 2019.

Neighboring subdivisions Kawayan Cove and Tali Beach also saw price increases above 200% compared to 2019.

“The demand for second homes in the Batangas area has increased tremendously, mainly because of the COVID-19 restrictions. The inability of rich families to go around the city in Metro Manila, and thus they’re moving out to these residential resorts for a more open and a more free environment,” LPC Research Director Roy Amado Golez said in a virtual briefing on July 13.

“There will be more projects launched, especially catering to the high-end second home market.”

Infrastructure projects like CALAX (Cavite-Laguna Expressway) will also cut travel time to this region from the capital and appreciate prices, he added.

Subsection 5 or a 7.2-kilometer segment of the CALAX set to be finished by the third quarter was reported 93% complete in April. The segment links Sta. Rosa-Tagaytay Interchange to Silang East Interchange.

The completion of the 45-kilometer expressway is set for 2023.

Gated residential developments outside the capital has attracted more demand, led by Ayala Land, which saw “tremendous sales” in Laguna, Bataan and Cavite areas.

“We’re seeing a pick-up of 21 units to 77 units sold per month. These were launched during the pandemic, but despite that, they’re generating land values of P24,000 to P35,000 per square meter,” Mr. Golez said.

OFFICE DEMAND SURGES
Meanwhile, LPC has said that office demand surged to its highest since the start of the pandemic due to interest from outsourcing firms. Total office space demand in the first half reached 291,000 square meters, or 75% of total 2020 demand.

The company said that Philippine Offshore Gaming Operators are set to make a comeback, amid a clearer tax regime for the sector.

“What I have been told by very prominent players in the industry is that they have a revenge comeback for Philippines,” Chief Executive Officer David T. Leechiu said. — Jenina P. Ibañez

JFC launches third Tim Ho Wan store in China

JOLLIBEE Foods Corp. (JFC) recently opened another Tim Ho Wan store in mainland China, making the dim sum food restaurant available at the Changning district of Shanghai.

“We’re thrilled to continue expanding the Michelin-starred Tim Ho Wan in Mainland China. We are targeting to open 100 restaurants within the next four years,” JFC China President Shirley Chang said in a statement on Monday.

JFC has a joint venture agreement with the Tim Ho Wan group to open and operate their dim sum restaurants in mainland China.

Located in the Nanfeng City Shopping Mall, the new branch is the third Tim Ho Wan store in the country. The first was opened in September 2020.

The new two-storey branch has an alfresco dining area to allow the store to safely accommodate up to 126 customers.

JFC aims to open three more Tim Ho Wan stores by September in Shanghai’s Hongkou, Jing‘an, and Minhang districts.

On Monday, shares of JFC at the local bourse went up by 0.29% or 60 centavos to close at P210.60 apiece. — Keren Concepcion G. Valmonte

Sta. Lucia’s projects in Central Luzon get a lift from infrastructure push

STA. LUCIA Land, Inc. is developing the 41-hectare Acropolis North in Cabanatuan City, Nueva Ecija. — COMPANY HANDOUT

THE GOVERNMENT’S on-going infrastructure projects in Central Luzon are expected to boost the attractiveness of residential property developments in the area.

Sta. Lucia Land, Inc. President Exequiel D. Robles said the company has long established a presence in Pampanga, Bulacan and key areas in Central Luzon.

“It makes sense for individuals to regard Central Luzon as a choice address. For one, it’s an attractive destination for local and foreign investors owing to the availability of skilled manpower and the continued roll out of key infrastructure projects in this region including airports, roads, ports and railways. With a booming economy, the region can offer opportunities for quality jobs and a modern lifestyle as seen in urban centers,” he said in a statement.

Central Luzon, composed of Pampanga, Bulacan, Tarlac, Bataan, Zambales, Aurora and Nueva Ecija, is a key economic hub in Luzon.

Ongoing infrastructure projects like Clark International Airport expansion, Subic-Clark cargo railway, and Manila-Clark passenger railway are seen to strengthen the region’s position as an investment destination.

“Our developments in the north are sure to benefit from the ongoing buzz in the area. We cannot ignore the huge potential for growth of North and Central Luzon and I believe that homebuyers and investors alike should really consider buying a home in these areas. Sta. Lucia Land has many projects in the north that can fit the needs of the times and provide potential for capital appreciation,” Mr. Robles said.

Among Sta. Lucia Land projects in the region are Newport at Greenwoods North in Gapan, Nueva Ecija; Beverly Place Residential and Business Estates in Mexico, Pampanga; Almeria Verde in Dagupan City, Pangasinan; and Acropolis North in Cabanatuan City, Nueva Ecija.

Sta. Lucia is now on the second phase of the 22-hectare Newport at Greenwoods North.

PHL AirAsia eyeing to restore Clark hub by Q4

LOW-COST carrier Philippines AirAsia, Inc. is eyeing to restore its hub in Clark by the fourth quarter of the year, its chief executive officer said on Monday.

“Once travel restrictions ease and demand picks up soon, we are eyeing to strategically restore AirAsia’s Clark hub hopefully by Q4 of 2021,” Philippines AirAsia Chief Executive Officer Ricardo P. Isla said in an e-mailed statement.

Mr. Isla said the new passenger terminal building of Clark International Airport “will definitely boost our initiatives for a stronger rebound post pandemic.”

The new terminal building — built by Megawide Construction Corp. and GMR Infrastructure Ltd. — can accommodate up to 12.2 million passengers annually. The Clark airport previously operated at an annual passenger capacity of 4.2 million.

AirAsia said it started its Philippine operations in Clark in March 2012.

“Pre-pandemic, Philippines AirAsia flew to 10 domestic and three international destinations from Clark namely, Cagayan de Oro, Caticlan, Cebu, Davao, Iloilo, Puerto Princesa, Tacloban, Incheon, Kaohsiung, and Taipei,” it said.

President Rodrigo R. Duterte and several government officials led the inspection of the newly completed terminal building of the Clark airport on July 17.

“This structure before us reflects the administration’s unyielding commitment to improve the quality of life of every Filipino by providing big-ticket infrastructure projects, such as this, that will improve connectivity, mobility, create jobs, and disperse economic activity to the regions,” Mr. Duterte said in his speech.

Clark International Airport has long been singled out as an alternative gateway to decongest Ninoy Aquino International Airport, which accommodated more than 39.5 million passengers in 2016, way above its 30.5-million capacity. — Arjay L. Balinbin

Jazzing up Filipino folk songs

PLAYING music for a live audience, going on tour and road trips, and rehearsing together are things that had to take a backseat over the past year and a half. Still, the jazz band Debonair District kept busy over the extended lockdown arranging and recording their first EP of Filipino folk songs in jazz arrangements.

The members of Debonair District first got together as students at the University of the Philippines-Diliman College of Music.

The band’s vocalist, Toma Cayabyab, loved jazz music from a young age, listening to Frank Sinatra and Michael Buble. Since then, Mr. Cayabyab — son of National Artist for Music Ryan Cayabyab — was certain that he would pursue making jazz music. That goal materialized in Debonair District.

“During the time of our band’s formation, there was this Japanese anime called Sakamichi no Apollon (Kids on the Slope) and their soundtrack was wonderful. The band setup in the show was simple too: a pianist, drummer, double bassist, and a trumpet player. When I saw that setup, I thought that I could make a similar one,” Mr. Cayabyab told BusinessWorld in an e-mail.

“I asked around for instrumentalists and my best friend from the college linked me up with Neo, who brought in Joey, then Chico, then Harold…,” he said. “Anton came into the picture just two years ago (around 2019) when we decided we wanted to include the sound textures of the electric guitar into our music.”

Mr. Cayabyab was referring to trumpet player Neo Manosca, Joey Biato who plays double bass, drummer Chico Macorol, keyboardist Harold Santos, and Antonio Concepcion who plays the electric guitar.

The band has a repertoire of jazzed up Filipino folk songs, kundiman, plus pop and foreign music. Alongside writing and recording music, the group performs at weddings, corporate events, and private events.

Mr. Cayabyab credits artists such as Bob Aves, Eddie Munji, and his father for having pioneered the reimagining of Filipino songs in the jazz style.

“I could imagine linking our own style of jazz music to these Filipino songs and it would make a great and unique sound…,” Mr. Cayabyab said. “We at Debonair District love finding the charm of each Filipino folk song, kundiman, and love songs, and giving them their own jazzy personality. We enjoy arranging them with the hopes of making the younger generation appreciate and love Filipino music.”

MERGING FOLK AND JAZZ
On July 2, the band released Diyalogo, an EP featuring five Filipino folk songs arranged in jazz style.

From a wide selection of folk and kundiman songs, the group narrowed it down to five titles for the EP: the Tagalog folk song “Leron Leron Sinta,” Pangasinan’s love song “Malinac Lay Labi” (Peaceful Night), the children’s ditty “Pen Pen de Sarapen,” a medley of the Ilocano song “Ti Ayat Ti Maysa Nga Ubing” (Love of a Child) and the Filipino folk song “Sampaguita,” and the Ilocano folk song “Pamulinawen.” All the pieces are part of the band’s regular repertoire when playing gigs.

“We are doing our part in continuing the lineage of Eddie Munji’s Pinoy Jazz or Ryan Cayabyab’s Routes to Roots – rearranging Philippine folk songs to fit the typical jazz idiom and instrumentation,” the band’s keyboard player Harold Santos said in the same e-mail, adding that the EP’s music pays “homage to an older style of prefusion jazz.”

During the strict lockdowns, the band members held discussions online before finally recording the songs together.

“We needed to learn how to be a band online. This meant bonding through Zoom meetings and chat. Most importantly, this also meant being more understanding and caring towards each other since we all had our own problems to face during the pandemic. And I believe it was because of how considerate and self-giving my bandmates were that music and creativity was still possible during the pandemic,” guitarist Antonio Concepcion said.

THE SONGS
Mr. Cayabyab explained the arrangements done for every song.

For “Leron Leron Sinta,” the band invited a friend, Jacques Dufourt, to play percussive instruments on the track for a rhythmic Samba style.

“We quoted a section of the trumpet line and progression of the ‘Leron Leron Sinta’ arrangement of Ryan Cayabyab in his album, Routes to Roots. We also recently decided to add that funky bassline section at the second half of the song for the recording to give it a contrasting personality,” Mr. Cayabyab said.

For “Malinac Lay Labi,” the band wanted to retain that “peaceful night” feel to complement the context of the song.

“Instead of a trumpet, a flügelhorn was used to have that sweeter sound, then it is followed by a bass solo. We added a bonus: a salute to folk songs by also adding a tinikling rhythmic feel in the middle,” Mr. Cayabyab said.

The arrangement for “Pen Pen de Sarapen” takes inspiration from the “cool beach feel.”

Meanwhile, “Ti Ayat Ti Maysa Nga Ubing” and “Sampaguita” were combined into one track due to their similarities in musical and lyrical themes. “The first five notes of both songs are thematically the same, a flower serves as an essential descriptor,” Mr. Cayabyab said.

The EP ends with “Pamulinawen” where the piece changes keys eight times within three minutes.

“I wanted to paint the music with the message of the song where ‘Pamulinawen’ is the name of a woman who has a heart of stone, and a man asks for her forgiveness for doing something wrong and pleas for reconciliation. I wanted to highlight that conflict,” Mr. Cayabyab said.

Debonair District is currently writing originals songs and continuously looking for opportunities to share the richness of Filipino music.

“It would be a wonderful feat to have Filipinos appreciate the folk music that we have. It would be even better if the whole world could hear how beautiful Filipino folk music is,” Mr. Cayabyab said.

Diyalogo is available to stream on Spotify. For more information, visit www.facebook.com/debonairdistrictph — Michelle Anne P. Soliman

Gov’t awards T-bills at higher rates

BW FILE PHOTO
THE GOVERNMENT made a full award of the Treasury bills it auctioned off on Monday even as rates increased. — BW FILE PHOTO

THE GOVERNMENT made a full award of the Treasury bills (T-bills) it auctioned off on Monday even as rates continued to inch up across all tenors as investors asked for higher returns.

The Bureau of the Treasury (BTr) raised the programmed P15 billion via the T-bills during Monday’s auction as the offer was thrice oversubscribed, with bids reaching P45.74 billion. Demand also rose from last week’s P42.086 billion.

Broken down, the Treasury borrowed the programmed P5 billion from the 91-day papers as bids totaled P17.045 billion. The three-month debt fetched an average rate of 1.082%, up by 1.4 basis points (bps) from the 1.068% quoted during last week’s auction.

The government also raised P5 billion as planned via the 182-day T-bills after the tenor attracted tenders worth P15.88 billion. The average rate of the six-month instruments likewise inched up by 1.7 bps to 1.401% from 1.384% last week.

Lastly, the BTr made a full P5-billion award of the 364-day securities it offered on Monday as demand hit P12.815 billion. The one-year debt fetched an average yield of 1.629%, higher by 3.6 bps than the 1.593% seen in the previous week’s auction.

“The T-bill rates are just too low given that it is too close to the BSP (Bangko Sentral ng Pilipinas) overnight deposit facility of 1.5%. However, it is interesting to note that bid-to-cover ratio is better than last week’s,” a bond trader said via Viber on Monday.

The trader said the higher demand for the T-bills could mean their rates will continue to move sideways in upcoming auctions and stop the upward trend that started this month.

The BSP in June maintained the rates on its overnight reverse repurchase, lending and deposit facilities at record lows of 2%, 2.5%, and 1.5%, respectively.

The central bank has said it will continue to keep benchmark rates low to support the economy’s recovery.

On Wednesday, the BTr will offer P35 billion in fresh 10-year Treasury bonds (T-bonds). Tuesday, July 20, is a regular holiday in observance of Eid’l Adha.

The Treasury is looking to raise P235 billion from the local market this month: P60 billion via weekly offers of T-bills and P175 billion from weekly auctions of T-bonds.

The government wants to borrow P3 trillion from domestic and external sources this year to help fund a budget deficit seen to hit 9.3% of gross domestic product. — B.M. Laforga

Megaworld vaccinates 95% of staff across 11 properties

MEGAWORLD Corp.’s hotel chain Megaworld Hotels & Resorts has vaccinated 95% or 1,154 of its hotel-based personnel working across its 11 properties amid the pandemic.

“Herd immunity in all our hotel properties across the country has always been our ultimate goal to ensure not only the safety and well-being of our staff but also of all our guests who stay in our hotels,” Megaworld Hotels Group General Manager Cleofe C. Albiso said in a statement on Monday.

Among those vaccinated are employees from front offices, housekeeping, food and beverage, engineering, sales and marketing, finance, executive, human resources, and security personnel.

The group has 11 properties, namely: Richmonde Hotel Ortigas in Pasig City; Quezon City’s Eastwood Richmonde Hotel; Richmonde Hotel Iloilo; Savoy Hotel Manila and Belmont Hotel Manila in Newport City; Savoy Hotel Boracay and Belmont Hotel Boracay in Malay, Aklan; Cebu’s Savoy Hotel Mactan; Twin Lakes Hotel in Batangas; Hotel Lucky Chinatown in Manila’s Binondo; and Kingsford Hotel in Parañaque City’s Entertainment City.

All of its hotels received the “Safety Seal” certification from the Department of Tourism, validating that all properties are compliant with the minimum public health standards.

Twin Lakes Hotel and Belmont Hotel Boracay are now open to guests for leisure and “staycations,” where the group said it saw “sustained bookings left and right.”

“This is a good sign to the country’s tourism industry because we can still see that travel remains one of the things people are willing to spend on even during a pandemic,” Ms. Albiso said.

Meanwhile, its other hotels are for Filipino and foreign guests required to undergo the mandatory quarantine after arriving in the country.

The group’s portfolio currently has around 4,000 rooms across the country’s key tourism destinations. It plans to add more hotel properties within the next five years, naming Boracay, Iloilo, Bacolod, Cebu, and the Manila Bay area’s Entertainment City as its targets for expansion. — Keren Concepcion G. Valmonte

China’s luxury retirement homes draw millions from local, international investors

REUTERS

RETIREE William Tang recently decided to swap his life in downtown Shanghai for a luxury elder-care development in the city’s far west, paying $220,000 to rent a two-bedroom apartment for 15 years.

“It is more like a resort,” Tang said after viewing the Ardor Gardens showroom, which highlights amenities including an indoor swimming pool, yoga rooms, wine tastings and round-the-clock care.

For a growing number of Chinese and international investors, elder-care developments like Ardor Gardens are becoming irresistible bets. Money is pouring into the sector amid renewed attention on just how quickly China is aging.

Sydney-based property and infrastructure company Lendlease Corp. Ltd., which put $280 million into Ardor Gardens, is among investors that see the policy environment becoming more favorable as the Chinese government tackles its demographic challenges.

“The market will likely be completely different 10 years from now,” said Lendlease’s China President Ding Hui. “If you wait for 10 years before starting to think of buying land, learning, training up a team and developing a business model, very likely you would have missed the opportunity.”

According to China’s latest population data, the number of residents aged 60 and above has risen 47% over the past decade to 260 million, more than 18% of its total population. By 2050, it is forecast to nearly double to almost 500 million.

Lendlease is in competition with established domestic players including blue-chip insurers, private-equity firms and property developers. Dozens of foreign investors have also piled in recent years, including Singapore’s state-owned Temasek Holdings Pte, US healthcare investment firm Columbia Pacific Management and Fortress Investment Group.

More are looking to join the fray. Chinese investment giant Citic Capital is aiming to build a handful of elder-care projects with partners in major cities over the next few years, said the head of the firm’s real estate division Stanley Ching. New China Life Insurance Co. meanwhile just started selling a new 280,000 square meter elderly-care complex in a suburb of Beijing — roughly the size of 40 standard soccer fields.

Many of these companies have yet to make money from the senior-care business, but they’re betting that growing demand for such facilities and changing societal norms in China will deliver returns in the longer term.

On the policy side, the government is drafting detailed plans to strengthen the senior-care sector, with a focus on expanding basic and affordable services. These include increasing the number of beds at nursing homes, and putting resources into training much-needed professionals.

“China’s high-end senior care market has not entered the phase of high-speed growth, but it has certainly gotten started,” said Ye Liming, a director at the Shanghai Senior Service Industry Association. 

LOOKING FOR A BED
The country’s demographic trajectory is also upending deep-set traditions that have impeded the popularity of care homes. Though children in China have long been bound by the duty to care for their elderly parents, many families live far apart following years of labor migration and urbanization. The problem is exacerbated by the fact that many soon to enter retirement only have one child to rely on due to China’s one-child policy.

Despite these demographic shifts, industry estimates predict that only around 3% of Chinese seniors are willing or are able to afford the sorts of services that Lendlease is offering. The vast majority are expected to stay at home or at government-subsidized nursing homes. Though that’s still a large enough number given China’s massive elderly population, the low figure does signify a difficulty for investors.

As of June, Lendlease had only managed to fill about a quarter of the first 100 or so apartments at Ardor Gardens that it put on the market about 10 months earlier.

In a recent report, consulting firm Qianzhan Industry Research Institute noted that the occupancy rate of private elderly homes, mostly located in wealthy areas such as the Yangtze River Delta, is hovering at 37%-48%, far below the 85% they need to break even. Customers are deterred in part by the cost, due to high land prices and the absence of a real estate investment trust market — a key long-term funding channel for elder-care property investors in developed markets like North America, Europe and Japan.

Lendlease’s Ding believes that getting dozens of seniors to part with their money for a rental property in Ardor Gardens is significant, given the pandemic. More notable, he thinks, is that the mentality that seniors should spend their savings on owning a property in order to pass it down to the next generation — rather than on their own leisure — could finally be starting to shift.

To that end, Tang, who is in his 70s and anticipates moving in to Ardor Gardens in September, is the sort of retiree that investors are banking on — cash-rich, open-minded, and looking to have fun in their twilight years.

“Our purpose is not to just spend money buying a property,” said Tang. “It’s for a more exciting second life.” — Bloomberg

PLDT-Smart: Satellite project to help in disaster response

PLDT, Inc. and its wireless arm Smart Communications, Inc. said their planned space-based cellular broadband communication project with US-based AST SpaceMobile, Inc. is expected to boost disaster preparedness efforts in hard-to-reach areas.

“This satellite technology can… help in disaster preparedness and resiliency efforts by providing an alternative network in times of calamities, which can impact cell sites on the ground,” PLDT-Smart said in a statement.

The service is expected to reach remote areas to enable online learning, e-commerce and online banking for indigenous peoples in the mountains and farmers in rural areas, and cater to Filipinos out at sea.

“As a nation, some of our countrymen live off the sea, where signal is not available. These include fisherfolk, seafarers and Filipinos who travel between islands. In addition, the service can also serve Filipinos who live in the hinterlands who rely on satellite TV to enjoy entertainment, Gen Z’s who like to hike in nature, as well as search and rescue teams during disasters,” said Jane J. Basas, head of consumer wireless business at Smart.

Smart has signed a memorandum of understanding with AST SpaceMobile, which is building “the first space-based cellular broadband network accessible directly by standard mobile phones.”

“Through this pioneering technology, Smart’s mobile customers in far-flung areas would be able to enjoy high-speed internet using ordinary smartphones through the use of low-earth orbit (LEO) satellites — a first in the Philippines,” PLDT-Smart said.

Arvin L. Siena, head of technology strategy and transformation office at PLDT and Smart, said the low-earth orbit satellites of AST SpaceMobile will be explored to deliver 4G and 5G signal to mobile devices of Smart customers.

“Compared to GEO satellites, LEO satellites are significantly closer to earth at around 700 kms, allowing them to deliver higher bandwidth with lower latency and communicate with regular smartphones,” he noted.

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

W Landmark earns ISO nod for quality management

W LANDMARK, Inc. (WLI) recently received the International Organization for Standardization (ISO) 9001:2015 Certification for its quality management system and operations in its properties.

The company, which owns and operates W Fifth Avenue, W CityCenter, Citi Plaza, W Highstreet, W Global Center, and W Tower, passed the audit conducted by TUV Nord Philippines, Inc. for management operations.

In its virtual audit, TUV Nord commended the company’s management practices, consistent compliance with the international standards of the Quality Management System, and quick response and action on its documentation processes.

“This award signifies a new beginning for W Landmark to continuously improve and ensure that we are able to adapt amid the rapid changes in our community. We hope to inspire our employees to continue to do better and deliver quality property management services and leasing operations during these trying times,” W Group, Inc. Chief Executive Officer Francis Augustus Wee said in a statement.

WLI is part of the W Group, Inc., whose other companies include W Hydrocolloids, Inc. and Marine Resources Development Corporation.

TV5 registers nationwide viewership growth

TV5 has shown viewership growth nationwide according to the latest Nielsen ratings.

The ratings company said that TV5’s performance has been on a consistent uptrend, with its weekday primetime block growing from a 5.3 audience share in January to 12.9 as of end June, and its weekend primetime improving from a 4.2 audience share to 6.9. The network has registered an 89% growth in total viewership and is now the country’s second most highly rated channel.

TV5’s viewership growth in the southern region has also contributed to the significant rise in its primetime audience share — an increase of 150% in Visayas and 134% in Mindanao.

This growth is most evident in TV5’s pillar primetime programs: Frontline Pilipinas, Sing Galing, Niña Niño; ABS-CBN Entertainment programs: FPJ’s Ang Probinsyano, Huwag Kang Mangamba, Init Sa Magdamag, and La Vida Lena, as well as the weekend programs John En Ellen, Rolling in It, The Wall Philippines, and Puto.

The inclusion of ABS-CBN Entertainment programs, especially FPJ’s Ang Probinsyano which is the number one teleserye in the country, opened the doors for new viewers for TV5. Another factor that contributed to attaining an improvement in ratings is the combination of TV5 shows, ABS-CBN Entertainment programs, and content collaborators.

In May 2021, the network launched its new campaign “Iba sa 5” to showcase the channel’s programming lineup and entertainment.

We are thrilled that more and more viewers are tuning in to our shows. We will continue to challenge ourselves to do even better, and we promise to keep creating shows that delight all kinds of audiences. And while we now have the best digital TV coverage in Mega Manila,” CignalTV and TV5 President & CEO Robert P. Galang said in a statement.

“I want to personally say, daghang salamat kaayo to our Vismin Kapatids for their support. We will further expand our DTT network in North and Central Luzon, Visayas, and Mindanao by the end of July, ensuring truly nationwide coverage, so that Filipinos all over the country can enjoy watching TV5,” he added.

PNB’s planned digital bank to focus on retail loans, investments

PHILIPPINE NATIONAL Bank (PNB) plans to file for a digital banking license within the year with its holding company as the corporate vehicle.

PNB said in a disclosure to the stock exchange on Monday that they will apply for a new digital banking license, in accordance with the Bangko Sentral ng Pilipinas’ (BSP) framework for the sector under BSP Circular 1105.

“We will initially build this digital bank ourselves, but we are open to doing partnerships with companies that will add value to our proposition,” PNB President and Chief Executive Officer Jose Arnulfo A. Veloso said in an e-mail to BusinessWorld.

The listed lender said its holding company Allied Integrated Holdings, Inc. will be the corporate entity for the planned digital bank. The holding firm was formerly its thrift lending unit PNB Savings Bank.

“We can strengthen PNB’s ability to take advantage of a number of opportunities as we are targeting the mass market,” Mr. Veloso said, adding there is an ecosystem they could benefit from through the other entities within the LT Group, Inc.

He said their planned digital bank will focus on providing retail lending and investment services to customers.

They are also looking to provide connectivity between overseas Filipinos and their remittance recipients back home through the digital bank, Mr. Veloso added.

BSP Circular 1105 set apart digital banks from universal, commercial, thrift, rural, cooperative and Islamic lenders. These digital banks provide financial services such as taking loans and deposits through an online platform instead of traditional lenders’ brick-and-mortar model.

Among commercial lenders, only UnionBank of the Philippines, Inc. has filed an application for a digital bank license, which is still pending with the BSP.

Meanwhile, Rizal Commercial Banking Corp. has also signified interest in applying for a digital bank license. The Yuchengco-led lender launched its Diskartech app last year, where users can create accounts, make deposits, and apply for loans.

The policy-setting Monetary Board has issued digital bank licenses to the Overseas Filipino Bank, Tonik Digital Bank, Inc. (Philippines), and UNOBANK.

The BSP earlier capped licenses to be issued under the new digital banking framework to five, but officials have said they allow more players to operate if there is strong demand.

PNB’s net profit climbed 34% to P1.791 billion in the first three months of 2021 from P1.337 billion a year earlier, as lower expenses offset the decline in its total operating income.

The Tan-led lender’s shares closed at P20.60 apiece on Monday, up by 78 centavos or 3.94% from its previous finish. — Luz Wendy T. Noble