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Long Philippine bonds likely out of favor on inflation fears

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MOST SOUTHEAST ASIAN yield curves have flattened in recent months in tandem with a similar move in US Treasuries. The Philippines is an outlier.

The spread between five-year and 10-year peso bond yields is near the widest in over a year, with long-dated securities hit by fears about rising supply as the Philippines’ fiscal deficit widens. There’s little indication the gap will shrink as central bank policy anchors the short end of the curve while elevated inflation weighs on longer maturities.

The steeper curve could mean higher funding costs as the deficit widens to a record 9.3% of gross domestic product this year, although National Treasurer Rosalia V. de Leon expects the rise in yields to be temporary. Coming at a time when yield curves in Thailand and Malaysia are flattening, the steepening risks making longer-dated peso securities the region’s laggards.

“Relative to regional bonds, the outsized selloff in Philippine bonds is primarily due to a greater extent of widening in the inflation risk premium,” said Duncan Tan, a strategist at DBS Bank Ltd. in Singapore. “As long as energy prices stay supported, we expect Philippine bonds to underperform and the yield curve to steepen relative to regional curves.”

The spread between five-year and 10-year Philippine bonds stands at 117 basis points (bps). It reached 132 bps in late September, the widest in over a year.

In contrast, the Malaysian and Thai yield curves have narrowed by 21 bps and 17 bps, respectively, since early June as they mirrored a similar move in Treasuries.

This indicates the Philippine yield curve is unlikely to track a further flattening in its US counterpart, which may result in long-dated peso notes underperforming their regional peers. Swap traders expect the spread on 5- and 10-year Treasuries to narrow to 33 bps from 49 bps in a year’s time.

The Philippine curve may also steepen further as elevated price pressures drive up longer-dated yields while shorter maturities are anchored by the central bank’s pledge to hold off on interest rate hikes. Bangko Sentral ng Pilipinas has raised its 2021 average inflation target to 4.5% from 4.4%, above its target range of 2% to 4%, citing supply-side pressures.

Long-dated peso bonds will probably face further pressure from a heavy pipeline next year. While the budget deficit is expected to ease to 7.5% of GDP in 2022, the shortfall will still be wider than the pre-pandemic five-year average of 2.4%. With BSP signaling that it’ll continue to slow purchases of government debt for the rest of the year, there appears to be little respite in store. — Bloomberg

Fewer banks tightened lending standards in Q3

LENDERS generally kept strict lending standards in the third quarter, but fewer banks tightened their lending rules, based on a survey conducted by the Bangko Sentral ng Pilipinas (BSP).

The latest Senior Bank Loan Officers’ Survey (SLOS) released on Thursday showed a majority of banks kept their overall standards for loans to both enterprises and households based on the modal approach.

Based on the diffusion index, the study showed a net tightening of credit standards imposed for both businesses and retail borrowers in the July to September period.

“However, we also know note that a fewer number of banks reported tightened lending standards in the third quarter compared to the second quarter,” Lara Romina E. Ganapin, Bank Officer VI at the BSP’s Monetary Policy Research Group, said at an online briefing.

“There has also been a modest recovery in overall lending attitudes since the pandemic,” she added.

Credit standards that were particularly tightened for businesses include reduced credit line sizes; stricter collateral requirements and loan covenants; and increased use of interest rate floors.

On the other hand, banks reported some form of easing by extending longer loan maturities to firms.

Meanwhile, lending standards for households were tightened through lower credit line sizes, stricter loan agreements and collateral requirements. Banks eased credit standards for households by narrowing loan margins and lengthening loan maturities.

For the last three months of the year, the diffusion index approach showed lenders are expecting to implement stricter loan standards for businesses as they expect economic uncertainty to continue and a deterioration of borrowers’ profiles and in the liquidity of banks’ portfolio.

Meanwhile, bank respondents expect to relax lending standards for households on the back of better borrowers’ profiles and positive economic prospects.

“They [banks] expected strong growth in remittances, particularly during the Christmas holidays that provided support to the outlook for lending to households,” Ms. Ganapin said.

Loan demand is seen growing in the fourth quarter, based on the diffusion index approach.

Increased borrowings from businesses will be likely due to corporate clients’ higher inventory financing requirements and accounts receivable financing needs, as well as improvement in customers’ economic outlook, the survey showed.

Meanwhile, loan demand from the retail borrowers is expected to be driven by higher consumption, lower income prospects, and more attractive financing terms offered by banks.

Bank lending in August rose 1.3%, ending eight straight months of decline.

For the third quarter SLOS round, the BSP sent questions to 64 banks, 51 of whom responded. This represents a response rate of 79.7%. — Luz Wendy T. Noble

Medilines’ P2-B public offer gets PSE approval

MEDILINES Distributors, Inc. has received the go signal from the Philippine Stock Exchange (PSE) for its P2-billion initial public offering (IPO) slated for next month.

“The exchange approved the application of [Medilines Distributors] for the initial listing of up to 2,750,000,800 common shares, with a par value of [25 centavos] per share, under the main board of the exchange, which includes the shares subject of the company’s [IPO],” the PSE said in a listing notice on Wednesday evening.

Medilines Distributors was founded in 2002 and is involved in the business of distributing medical devices from brands such as Siemens, B. Braun, and Varian. The company has a product portfolio that feature devices for diagnostics imaging, dialysis, as well as cancer therapy.

“The healthcare industry has been in the spotlight since this pandemic broke out,” PSE President and Chief Executive Officer Ramon S. Monzon said in an e-mailed statement.

“We are pleased to see a company in this space tap the stock market for capital raising. We are hopeful that this IPO will pave the way for other companies in this sector to seek funding from the equities market,” he added.

The company is looking to offer to the public as much as 825 million common shares for up to P2.45 per share. It has scheduled its price-setting on Nov. 16.

Medilines Distributors will be offering up to 550 million common shares as the primary offer. Meanwhile, company chairman Virgilio B. Villar will be offering up to 275 million common shares by way of secondary offer.

“We intend to use the net proceeds from the sale of primary shares to fund the working capital in relation to the procurement of existing products and the buildup of medical consumables inventory and debt repayment,” the company said in its prospectus dated Oct. 8.

Majority or P743.1 million of the proceeds from the sale of primary shares will be used to repay debt, while P541.5 million will be allotted for working capital for the procurement of products as well as fund its foray into the medical consumables segment.

The company said it will not be receiving proceeds from the secondary offering of Mr. Villar’s shares.

“The exchange’s approval of the conduct of the IPO and listing of the company’s shares is subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said.

Medilines Distributors aims to conduct the offer from Nov. 22 to 26, while its listing date was tentatively set to Dec. 7. It will be listed under the stock symbol “MEDIC.”

The company assigned PNB Capital and Investment Corp. as the offer’s sole issue manager, lead underwriter, and sole bookrunner. — Keren Concepcion G. Valmonte

Seaoil aims to expand to 1,000 fuel stations by 2023

SEAOIL FB PAGE

SEAOIL Philippines, Inc. said on Thursday that it targets to put up its 1,000th fuel station in two years’ time.

“Seaoil aims to open 1,000 stations by 2023 and further improve its growing lubricants market share,” the firm said in an e-mailed statement on Thursday.

The independent fuel company recently opened its 600th station in Brgy. Sepung Calzada, Tarlac City.

Seaoil separately told BusinessWorld that it typically costs up to P5 million to open a new station, but added that it does not have the final budget yet on its capital expenditures for the year 2023.

According to the firm, retail and terminal expansion has remained “on-track” despite the onset of the global health emergency.

Seaoil also said it partnered with fintech company LOCQ, OPC to develop “PriceLOCQ for Business,” an app which allows companies to lock in fuel prices when they are low, store fuel in virtual tanks, and refuel at participating stations at their preferred time.

“PriceLOCQ for Business is the only solution that allows businessmen to hedge against fuel prices — that is to lock in fuel prices when they are low and redeem at Seaoil when prices go up,” Seaoil Chief Executive Officer Glenn L. Yu said in a statement.

Individuals can also use the PriceLOCQ app on their mobile devices.

In the first half of 2021, Seaoil’s share in the domestic petroleum market stood at 5.49%, up from 5.14% in the same period last year, based on estimates from the Department of Energy. — Angelica Y. Yang

Maynilad moves planned water interruptions to Oct. 29-Nov. 1

WEST ZONE water concessionaire Maynilad Water Services, Inc. moved the scheduled water interruptions in parts of its service area to Oct. 29 (11 a.m.) until Nov. 1 (11:59 p.m.) to give customers more time to prepare.

The water provider said in a statement that the water interruptions originally planned on Oct. 25 to Oct. 28 was moved after a huge number of customers requested for additional time to get ready.

Maynilad previously announced that the water interruptions will be caused by a pipe realignment activity along Sobriedad St. corner Cristobal St. in Sampaloc, Manila to give way for a flood control project of the Department of Public Works and Highways (DPWH).

“The new schedule coincides with the break for Undas (All Saints’ and All Souls’ Day) when people typically go to the provinces and fewer customers are expected to be home, thus mitigating the impact of the service interruptions on consumers,” Maynilad said.

Further, Maynilad said the areas set to be affected by the water interruption and their corresponding interruption schedules are the same.

Areas that will experience water interruptions include parts of Las Piñas, Makati, Manila, Parañaque, Pasay, as well as parts of Cavite province such as Bacoor, Cavite City, Imus City, Kawit, Noveleta, and Rosario.

The water provider previously disclosed that 28% or 421,000 water service connections, equivalent to 2.9 million customers, will be affected by the interruption.

“Given the deferment, Maynilad will also use the extra time to further increase our available complement of mobile water tankers and stationary water tanks, with the assistance of local government units and the local fire bureaus,” it said.

Patrick Lester N. Ty, chief regulator of the Metropolitan Waterworks and Sewerage System (MWSS) Regulatory Office, urged customers in a separate statement to report deviations from the schedules of the announced service interruptions.

“The MWSS-Regulatory Office advises the public to observe social distancing at the tankering sites to prevent the spread of the coronavirus disease 2019 (COVID-19) virus,” Mr. Ty said.

Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave

Celebrities’ hometowns the focus of new travel show

TOURIST spots in Pangasinan, Zambales, and Zamboanga are highlighted in AXN Asia’s new travel and lifestyle show My Hometown is G.O.A.T.

Celebrities assume the role of hosts and adventurers as they explore their hometowns and show the audience what makes these destinations the “Greatest of All Time” (G.O.A.T.).

The six-episode travel and lifestyle series will premiere regionally in Southeast Asia on Nov. 4, with new episodes airing on AXN Asia every Thursday and Friday at 8:30 p.m., and on the AXN Asia YouTube channel every following Wednesday at 8:30 p.m.

During an online press conference on Oct. 14, George Chien, co-founder, president and CEO of KC Global Media Asia, said, “Not only will viewers be able to discover the delicacies, the activities, the attractions that made the place great; they will also be able to uncover a more personal side of the celebrity hosts, as they share their stories about their childhood.

Actress and beauty queen Megan Young and actor, news anchor Mikael Daez head to Ms. Young’s hometown in Zambales, then visit neighboring Pampanga and Tarlac for a taste of their delicacies and history.

Miss Universe Philippines 2019 Gazini Ganados flies to Zamboanga for a solo trip around the city. Basketball star Marc Pingris, along with his Philippine Bikers Amazing “PBA” Moto Club crew, takes the long road on his motorbike up to scenic spots of La Union, passing by his hometown of Pangasinan on the way.

Each 15-minute episode of My Hometown is G.O.A.T. will see the celebrity hosts tell stories about their childhood. In addition, they will also be show viewers how to be safe when traveling in the new normal.

“With this show, we hope on one hand, to bring joy in homes of audiences who are unable to travel just yet. On the other hand, we also like to reach our many Filipino fans across Asia, who have been longing for home,” Mr. Chien said.

My Hometown Is G.O.A.T. premieres on Nov. 4 on AXN Asia. AXN Asia is available on SKYcable, Cignal, and G-Sat. — Michelle Anne P. Soliman

Globe’s Asticom enters engineering services space

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GLOBE Telecom, Inc. on Thursday said its wholly owned Asticom Technology, Inc., a shared services company, has launched a second subsidiary to help telecommunications companies speed up their fiber rollouts.

“Fiber Infrastructure and Network Services, Inc. (FINSI) is the latest addition to the Asticom Group,” Globe said in an e-mailed statement.

FINSI will provide end-to-end services and industry-specific solutions to telcos.

“We are on a mission to accelerate the Philippines into a connected nation, using innovative, leading-edge technologies and world-class local expertise,” FINSI General Manager Marc Kerveillant said.

Mharicar Castillo-Reyes, president and chief executive officer of Asticom Group, said her company aims to help the Philippines reach greater connectivity by being “the first-ever homegrown” engineering services provider supporting the major telcos.

In January, Asticom Technology launched its first subsidiary, Asti Business Services, Inc. (ABSI), to provide enterprises with end-to-end solutions for human resources, administrative, finance, and information technology functions.

ABSI aims to provide enterprise services to telecommunications, financial technology, information technology, retail, health, logistics, automotive, banking, education, real estate, and aviation companies. — Arjay L. Balinbin

Entertianment News (10/22/21)

Dune

Dune opens in PH cinemas Nov. 10

JUST as cinemas are getting ready to reopen as quarantine restrictions are being relaxed, Warner Bros. Philippines has announced that the epic adventure Dune will open exclusively in Philippine theaters on Wednesday, Nov. 10. As director Denis Villenueve (Blade Runner 2049, Arrival) has said: “Dune has been made, designed, dreamed to be seen on a big screen.” The Academy Award nominated filmmaker directs Warner Bros. Pictures and Legendary Pictures’ Dune, the big-screen adaptation of Frank Herbert’s bestseller, considered one of the most influential books of the 20th century. A mythic hero’s journey, Dune tells the story of Paul Atreides, a brilliant and gifted young man born into a great destiny beyond his understanding, who must travel to the most dangerous planet in the universe to ensure the future of his family and his people. Paul Atreides is played by Timothée Chalamet, and he is joined onscreen by Rebecca Ferguson, Oscar Isaac, Josh Brolin, Zendaya, Jason Momoa, Javier Bardem, and David Bautista. Dune is distributed in the Philippines by Warner Bros. Pictures, a WarnerMedia Company. The featurette Dune – Big Screen Experience can be viewed at https://youtu.be/wn9GLUzEyf4]

Viral Scandal kicks off in November

CHARLIE Dizon, Dimples Romana, Jake Cuenca, and Joshua Garcia star in ABS-CBN Entertainment’s latest series which explores the spread of controversial videos, Viral Scandal. It premieres on Nov. 15 at the Kapamilya Channel’s Primetime Bida. Ms. Dizon plays a teenager caught in a viral video. How she and her mom (played by Dimples Romana) deal with the scandal is the subject of the series. Directed by Dado Lumibao and Froy Allan Leonardo, the series also stars Joshua Garcia, Jameson Blake, Markus Patterson, Ria Atayde, Maxene Magalona, Aljon Mendoza, Karina Bautista, Louise Abuel, Kaila Estrada, Vance Larena, Gian Magdangal, Arielle Roces, and Aya Fernandez. The series will replace Huwag Kang Mangamba and will air on Kapamilya Channel, TV5, A2Z, Kapamilya Online Live, iWantTFC, and TFC IPTV.

Tom Morello releases new album

ROCK & Roll icon and two-time Grammy winner Tom Morello has released his new album, The Atlas Underground Fire, via Mom + Pop Musi. The 12-track album is a follow-up to his critically acclaimed and groundbreaking 2018 album, The Atlas Underground. Featuring collaborators including Bruce Springsteen, Eddie Vedder, Chris Stapleton, Mike Posner, Damian Marley and more, The Atlas Undergound Fire puts Mr. Morello’s guitar playing on full display, taking the instrument into the future and forging an alternative/rock/EDM masterpiece with all-time legends and cutting-edge firebrands. The genre-spanning tracklist includes Mr. Morello’s latest single, “The War Inside” featuring Chris Stapleton, which was released alongside a music video animated by Tom Crew. Mr. Morello premiered the track in an exclusive interview with Zane Lowe on Apple Music 1’s The Zane Lowe Show. Mr. Morello — co-founder of Rage Against The Machine, Audioslave and Prophets of Rage — is widely known as a barrier breaking guitarist who continues to push the limits and prove the transformative power of music. Of the album, Mr. Morello said: “Making this album was a life raft during a troubled time. Creating a global conspiracy of rock‘n’roll pen pals of incredible and diverse talents really kept me going and helped me push myself as an artist and guitarist. I recorded all my guitar parts in a cloistered isolation and it feels great now to unleash these tunes on the world and inflict the latest chapter of my bizarro guitar playing on an unsuspecting public.”

TALA releases new single   

THE 21-YEAR-OLD singer-songwriter TALA is releasing her new single, “nevermind,” a sincere and truthful response to her song, “i think I’m dreaming.” According to TALA, “It’s very vulnerable, as though one was reading a page of my journal or a letter.” “nevermind” is available on iTunes, Apple Music, Deezer, YouTube, and Spotify.

Tic Tac offers Mobile Legends upgrade

TIC TAC has collaborated with one of the top mobile games in the Philippines, Mobile Legends, for its “Refresh your Game” campaign. As part of this campaign, Tic Tac hosted a virtual Game Night on Oct. 8, hosted by ML gamer Sarah Carlos, with guests TV personality John Vic de Guzman, gaming influencer Yskaela Fujimoto, and celebrity Kristoffer Martin, sharing tips on how they approach the game. They also battled it out live with three audience members selected through an online contest before the event. Through the “Refresh your Game” campaign, up to 3,500 Mobile Legends gamers can win 50 ML Diamonds every week. The rewards will be sent as redeemable codes via email, and one ML account can win up to five codes each day. To join: gamers have to purchase Tic Tac and keep the official receipt; then visit the website www.TicTacWin.com to upload a scan of the receipt, which is the proof of purchase, and provide the requested details on the website. After submitting the information, the gamer will receive a link to verify their e-mail. As a bonus, Tic Tac will also be giving away 50 grand prizes every week — Limited Edition and Special Skins, Heroes, and 1,000 Diamonds (prizes worth up to P1,500 each. To qualify for this Bonus giveaway, gamers must use the hashtag #TicTacFresh and make a public Facebook post saying why they love Tic Tac. They can then follow the steps mentioned above, add a screenshot of the Facebook post and become part of the weekly Bonus contest. Bonus prize winners will be announced every Wednesday. This promo is valid until Nov. 28, and is only available for players based in the Philippines. For more information visit www.tictacwin.com or the Tic Tac Philippines Facebook page: www.facebook.com/tictacpilipinas.

Smart’s speed score highest in Q3 — Ookla

SMART Communications, Inc., the wireless arm of PLDT, Inc., had the highest speed score among top mobile operators in the Philippines during the third quarter (Q3), latest data from Ookla showed.

Ookla is the network testing and analysis company behind Speedtest, which ranks mobile and fixed broadband speeds from around the world.

Speedtest results for the third quarter showed that Smart was the fastest mobile operator among top providers in the country with a score of 59.71 on modern chipsets.

Globe Telecom, Inc.’s speed score was 28.38 while the new telco player, DITO Telecommunity Corp., had a score of 25.34.

In terms of the fifth-generation (5G) connection, Smart had the fastest median download speed at 217.03 megabits per second (Mbps), followed by Globe at 114.12 Mbps.

Speedtest data also showed that Caloocan City had the fastest median mobile download speed among the country’s most populous cities at 22.05 Mbps, followed by Quezon City (20.93 Mbps), Manila (18.80 Mbps), Cebu City (15.09 Mbps), and Davao City (14.23 Mbps).

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

Beauty and fear: new K-series focuses on mountain rangers

Seo Yi-gang (played by Gianna Jun) in Jirisan

A KOREAN thriller on mountain climbing and the lives of rangers premieres tomorrow on iQiyi.

Written by Kim Eun-hee and directed by Lee Eung-bok, the 16-episode series centers around a mystery surrounding the mountain’s many visitors; those who come to kill, and those who come to end their lives.

Seo Yi-gang (played by Gianna Jun) is Jirisan National Park’s top ranger who has vast experience in navigation, a useful skill when tracking down lost individuals. She is partnered with rookie park ranger and military vet Kang Hyun-jo (played by Ju Ji-hoon).

“Before I wrote about Jirisan, I had never set foot on that mountain. So, I had a very abstract idea and admiration for that mountain. But I have read and heard about Jirisan so much in school and from other books,” writer Kim Eun-hee said of the show’s setting, Mount Jiri, the second tallest mountain South Korea.

“It was a mountain where everybody went to pray for their wishes. And for over the years, I felt that those wishes and prayers had accumulated in that mountain. It’s a mysterious mountain with so many secrets buried on it. So that was the feeling that I had when I approached this [project],” she said in Korean (interpreted into English) at a virtual press conference on Oct. 13.

While doing research on the mountain and the local community there, Ms. Kim said she learned that whenever there was an accident on the mountain, it was the mountain rangers who went the rescue.

“In the past, I have written about the cyber police. One common thread of all these genres was that the investigation started after people were dead. But the rangers, their mission is to be there to save people,” Ms. Kim said.

“I loved her script, that’s why I decided to work with her. I did not in any way intend to intentionally depict a strong and independent woman but I think it’s a trend. These days, we have a lot of dynamic women characters on the media,” Gianna Jun said of playing a mountain ranger.

“I never thought that I would play the role of a ranger before, and I don’t know any rangers myself… You will be taking a sneak peek at the lives of the rangers through this drama.”

Meanwhile, Ju Ji-hoon revealed that he enjoyed climbing from a young age and expressed enthusiasm to climb Jirisan in the future. Mr. Ju added that it was tough shooting the scenes when ascending the peak.

“[Ms. Kim’s] script is very detailed,” Mr. Ju said. “And also, there are a lot of challenging scenes, but she makes it somehow entertaining for the viewers.”

Joining the cast are Oh Jung-se and Cho Han-Cheul.

“[Jirisan] shows you a lot of the beautiful landscape of the mountain itself. But there is also fear elements that come from Mother Nature. I wanted to portray both the beauty and the fear. And I wanted to show how the characters were interacting with the mountain especially during rescue missions,” director of photography Choi Sang-mook said.

The iQiyi Original K-series will be simulcast on Oct. 23 on iQiyi International app and iQ.com worldwide. New episodes will premiere on Saturdays and Sundays. — Michelle Anne P. Soliman

BPI income up 1.8% as of Sept.

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BANK OF THE Philippine Islands (BPI) posted higher net earnings in the first nine months of the year, even as its net interest and non-interest incomes declined from their year-ago levels, amid lower provisions for loan losses.

The Ayala-led bank’s net income increased by 1.8% year on year to P17.5 billion in the first nine months from P17.3 billion in the same period in 2020, it said in a filing with the local bourse on Thursday.

The bank’s net interest income in the January to September period declined by 5.6% year on year to P51.2 billion. This, as its net interest margin shrank by 21 basis points to 3.31% amid lower yields across its loan portfolios and treasury assets, BPI said.

Meanwhile, the bank’s non-interest earnings went down by 7% year on year to P20.5 billion at end-September due to weaker trading gains. This was partially offset by the 27.2% climb in its fee income.

BPI’s revenues dropped by 6% to P71.6 billion at end-September from a year earlier.

On the other hand, total operating expenses increased by 3.5% year on year to P36.5 billion in the first nine months, driven by the bank’s investments for its digitalization. Cost-to-income ratio was at 50.95%.

The bank cut its loan loss provisions by 49.9% to P10.3 billion as of end-September from the P20.5 billion it set aside in the same period last year.

BPI’s loans rose by 0.9% year on year to P1.4 trillion as of end-September, backed by an increase in mortgage, credit card and microfinance credit.

Despite this increase in credit, its nonperforming loan (NPL) ratio fell to 2.73% from 2.98% a year earlier, while NPL coverage ratio improved to 130.72% from 100.45%.

On the funding side, deposits with the bank likewise increased 6.6% year on year to P1.8 trillion as of September.

The bank’s current account, savings account (CASA) deposits grew 12.1%, offsetting the 11% decline in time deposits. With this, BPI’s CASA ratio stood at 80.1%.

BPI’s loan-to-deposit ratio was at 77.2% at end-September.

The bank’s assets increased 3.3% year on year to P2.3 trillion in the January to September period, while total equity stood at P291.8 billion.

Return on equity and return on assets stood at 8.3% and 1.1%, respectively.

The bank’s common equity Tier 1 ratio was at 16.81% at end-September, while its capital adequacy ratio was at 17.69%.

BPI is in the process of completing its merger with its sister unit BPI Family Savings Bank, which is expected to be finished by 2022.

The transaction was approved by the central bank on Sept. 30. Its effectivity depends on the issuance of the certificate of merger by the Securities and Exchange Commission.

BPI shares closed at P84.90 apiece on Thursday, down by P1.10 from its previous finish. — Luz Wendy T. Noble

PHL ‘might stand a chance’ on achieving sustainable dev’t goals

THE Securities and Exchange Commission’s (SEC) is “cautiously optimistic” that business institutions in the country can help move the sustainability agenda forward as they are encouraged to adopt sustainable business practices.

In an afternoon GRI-SM ASEAN Sustainability E-Summit webinar session on Thursday, SEC Commissioner Kelvin Lester K. Lee said he is “cautiously optimistic” that the country “might stand a chance” to meet the sustainable development goals by 2030 with all the ongoing initiatives in the financial markets.

For its part, the commission is “encouraging” all publicly listed companies to report on their sustainability practices, the guidelines of which are set in the SEC’s Memorandum Circular No. 4 series of 2019. The SEC said this is part of its mission to make the country’s capital markets one of the best in the Southeast Asian region.

The SEC also plans to make the sustainability reporting mandatory for all companies.

“We are encouraging them, we’re essentially asking them and mandating that they report on their initiatives and if that proceeds in that direction, that’s over 600,000 active corporations in the Philippines,” Mr. Lee said.

“If even some number of that starts to seriously engage in sustainable practices, I believe we can make a dent in the sustainability issues and hopefully help the country meet the sustainability goals,” he added.

The SEC said around 93% of the publicly listed companies have complied with the sustainability reporting this year, up from last year’s 90%.

The commission is also collaborating with the ASEAN Capital Markets Forum to create projects such as an “ASEAN Taxonomy,” which aims to “provide a common language for sustainable finance among the ASEAN states,” among its other initiatives.

“We have some more upcoming rules on the sustainable and responsible investment funds that will be focusing on mutual funds that will be focusing on mutual funds that will engage on ESG-related investments,” Mr. Lee said. “We’re looking at issuing that sometime next year or the year after.” — Keren Concepcion G. Valmonte

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