Ayala Land to issue over 609-M common shares for merger with subsidiaries

May 4, 2021 | 12:07 am

AYALA Land, Inc. will issue 609,626,351 shares to the four subsidiary corporations merging with it in exchange for their net assets, one of the subsidiaries Cebu Holdings, Inc. disclosed to the exchange on Monday.

Of the total shares issued, 491,306,375 shares will be treated as treasury shares.

Cebu Holdings, along with Asian I-Office Properties, Inc., Arca South Commercial Ventures Corp., and Central Block Developers, Inc., will be absorbed by Ayala Land through the merger.

Ayala Land has a 71.13% stake in Cebu Holdings. The company will issue 0.19 common shares for each of Cebu Holdings’ issued and outstanding shares, which means Ayala Land will issue a total of 409,783,760 common shares to the firm.

Wholly owned Cebu Holdings subsidiary Asian I-Office Properties is also part of the merger and will receive 3.29 Ayala Land common shares for every share. The transaction will total 22,244,841 of Ayala Land common shares.

Another subsidiary Arca South Commercial Ventures will receive 0.0255 Ayala Land common shares for each of its stocks, which will make it own 58,917,750 common shares of its parent company.

Central Block Developers, in which Ayala Land has a 45% direct stake and a 39.12% indirect ownership through Cebu Holdings, will own 118,680,000 Ayala Land shares. The company will be issuing 24.17 shares for each Central Block Developers issued and outstanding shares.

Ayala Land will be sending each former stockholder of the absorbed companies instructions after the effective date of the merger.

Meanwhile, the cut-off date of the audited financial statements (AFS) of the subsidiaries is Dec. 21, 2020.

Assets not reflected in the AFS of the corporation as of the cut-off date and those which may be collected by the absorbed corporations after the cut-off date and until the effective date of the merger “shall be deemed included in the conveyance, assignment and transfer pursuant to [the] merger.”

As a result of the merger, Ayala Land is expected to have assets worth over P457-billion in carrying value or over P1.38 trillion in fair value, liabilities amounting to over P306.94 billion in carrying value or nearly P306.94 billion in fair value, and equity of P105.37 billion in carrying value or P1.08 trillion in fair value.

On Monday, Ayala Land shares at the stock exchange closed higher by 0.31% or P0.10 at P32.30 apiece. — Keren Concepcion G. Valmonte

Globe: More than a fourth of fiber-to-the-home lines target for 2021 completed

May 4, 2021 | 12:06 am

GLOBE Telecom, Inc. said on Monday it is on track to complete its one-million fiber-to-the-home (FTTH) lines this year, after laying 274,000 lines as of the first quarter.

“That’s more than a fourth of [our] target of one million FTTH lines for 2021,” Globe said in an e-mailed statement.

Globe has completed the expansion of at least 4,210 sites.

In the first quarter, the telco installed 318 new cell towers across the country.

“While our numbers are good for the first quarter of the year, there is still a lot more work to be done,” said Joel R. Agustin, Globe senior vice-president for program delivery, network technical group.

“We need to continue this momentum and rise above quarantine challenges to meet the growing demand of our customers,” he added.

According to the latest Speedtest Global Index by US internet testing and analysis company Ookla, fixed broadband in the Philippines continued to improve in March, with an average speed of 46.25 megabits per second (Mbps), up 20.25% from February.

Meanwhile, mobile internet had an average download speed of 25.43 Mbps, down from 26.24 Mbps in February. — Arjay L. Balinbin

Cebu Landmasters enters P3-B notes facility to partially fund capex

May 4, 2021 | 12:05 am

PROPERTY developer Cebu Landmasters, Inc. (CLI) entered a P3-billion notes facility agreement with BPI Investment Management, Inc. (BIMI) to partially fund the P12-billion capital expenditure (capex) set for the year.

“We fully intend to live up to our obligations and ensure mutual value and success for our investors,” Beauregard Grant L. Cheng, chief finance officer at CLI, said in a statement on Monday.

CLI earlier announced that it would use this year’s capex to fund the development of its new projects.

Proceeds from the notes will be used to finance the company’s portfolio expansion to create a mixed-use 300-room dormitory-hotel business in Cebu City and other projects in Visayas and Mindanao.

Some of the proceeds will be used for the construction of the company’s 100-hectare reclamation project for its Cebu-based techno business park.

The deal was arranged by BPI Capital Corp.

“CLI is grateful to BIMI and BPI Capital for their trust in our business. We look forward to a long and fruitful partnership that will bring shared value to all parties,” Mr. Cheng added.

Shares of CLI at the stock exchange went up by 1.37% to P5.90 each on Monday from P5.82. — Keren Concepcion G. Valmonte

CBD rental rates continue to slip

May 4, 2021 | 12:05 am

AyalaMall_vacancies — SHOPPING MALL vacancies surged to 6.6% as many local and foreign fashion brands pulled out. — BW FILE PHOTO

RENTAL RATES in Metro Manila’s residential, office and retail segments continued to decline in the first quarter, as landlords struggled to curb a rise in vacancies amid the prolonged pandemic, according to JLL Philippines.

In its first quarter report, JLL Philippines said some landlords have been lowering asking rents to attract tenants and minimize vacancies.

Overall vacancy in the office market reached 14.7% as Philippine offshore gaming operators fled the country and outsourcing firms downsized operations.

Rents in office buildings in key central business districts (CBD) softened by 3% year on year and 0.8% quarter on quarter to P1,120 per square meter each month.

JLL Philippines Head of Research and Consultancy Janlo de los Reyes noted the majority of landlords maintained their asking rental rates but are open during negotiations.

“In terms of discussions and negotiations, landlords are more flexible in terms of looking at payment terms, which may include stretching the amortization,” he said in a briefing on Friday, adding that rental concessions have not yet been aggressive.

“We do suspect that rentals may continue to soften down the year especially as we may expect further elevated vacancies by Q3 and Q4 given the weak leasing activity that we’re seeing in the market.”

The residential market’s vacancy rate also rose to 7.3% in the first quarter, as demand from expatriates, working professionals, and students continued to slump.

“This is mainly due to the weak leasing market both for the upscale and also the midscale segment,” Mr. De los Reyes said.

Monthly residential rents fell to 19.8% year on year and 1.2% quarter on quarter to P38,700. Average monthly rent for luxury units are at P149,700, while upscale and midscale units go for P85,100 and P32,500, respectively.

Residential units in Makati City continued to command the highest rental rates at P68,800, followed by Taguig City (P55,800) and Parañaque City (P46,700).

“We’re seeing a shift of demand coming from, let’s say the luxury segment moving down to the upscale segment as we see income pressure from some corporate individuals,” Mr. De los Reyes said.

In the retail sector, rents declined by around 16.4% year on year to P1,730 per square meter each month, which JLL said was pulled down by mall operators trying to address high vacancies. Shopping mall vacancies surged to 6.6% as many local and foreign fashion brands pulled out.

These closures exceeded the openings coming from food and beverage and general merchandise stores.

The logistics sector however continues to thrive. Occupancy remains high for logistics spaces built specifically for certain tenants and those up for lease.

“In terms of demand, we’re seeing a pickup in terms of fast-moving consumer goods as well as third party logistics,” Mr. De los Reyes said. — Jenina P. Ibañez

GMA now streaming dramas on iQiyi

May 4, 2021 | 12:05 am

IT is now possible to stream GMA dramas as the network sealed a multi-year partnership with the Singapore-based on-demand streaming services iQiyi International.

Kapuso dramas First Yaya, and upcoming shows Legal Wives, Nagbabagang Luha, and Love You Stranger will be available within 24 hours after airing on TV on the iQiyi app or iQ.com. The GMA dramas are the first Filipino content to be available on the OTT (over-the-top, a media service offered directly to viewers via the Internet) platform.

“We are honored and grateful for iQiyi’s trust in partnering with GMA Network as the Kapuso programs jumpstart the exciting line-up of Filipino content for this platform. As we continue to adapt to the shifting interests of our viewers and their viewing habits, we relentlessly produce world-class entertainment programs that can be consumed in various platforms and iQiyi International’s massive user base will likewise complement our digital efforts,” GMA Network Chairman and CEO Felipe L. Gozon said in a statement.

“There was a need for the viewers to go beyond this television viewing,” GMA Network Adviser for Content Sales, Syndication, Partnerships, and Distribution Reena Garingan said in an online press conference on April 29 via Zoom.

Ms. Garingan added that the shows are ad free when streamed online and audiences can rewatch episodes.

The romantic-comedy series First Yaya is the first Kapuso drama available on iQiyi. It follows Melody (played by Sanya Lopez) who gets to lead an extraordinary life as the nanny of the children of President Glenn Acosta (played by Gabby Concepcion) and eventually falls for him.

The upcoming shows are the cultural drama Legal Wives, starring Dennis Trillo, Alice Dixson, Andrea Torres, and Bianca Umali; the TV adaptation of the 1988 award-winning film Nagbabagang Luha, starring Glaiza de Castro and Rayver Cruz; and the romance-mystery mini-series Love You Stranger, starring real-life couple Gabbi Garcia and Khalil Ramos.

“We are excited that this year alone, 12 new titles with over 1000 catch-up episodes will be available on iQiyi…,” iQiyi Philippines Country Manager Sherwin Dela Cruz said in a statement.

Bringing GMA Network’s entertainment content to international audiences is also a possibility in the partnership.

“We’re focusing first on the Philippines because it’s the first entry point into the partnership. As we move forward, I can imagine that we are going to bring some GMA shows to our neighboring countries,” Mr. Dela Cruz said in the same press conference, citing Hong Kong and the Middle East as possible areas since the platform is also prominent there.

For P99 per month, subscribers can catch up on Kapuso shows via iQ.com or the iQiyi International app. — Michelle Anne P. Soliman

EEI incurs P2-billion net loss as pandemic disrupts business

May 4, 2021 | 12:04 am

CONSTRUCTION firm EEI Corp. incurred P2.05 billion in attributable net loss in 2020, swinging from its P1.16-billion income a year earlier, after recording lower revenues from contracts during the pandemic.

In its annual report disclosed to the local bourse on Monday, EEI also placed its after-tax losses at P2.07 billion. Revenues from contracts with customers fell by around 41% to P13.88 billion last year.

“The outbreak of COVID-19 (coronavirus disease) in 2020 disrupted the business of the Group in 2020,” the company said, adding that the disruption included the temporary stoppage of construction activities during the enhanced community quarantine.

It said it had incurred additional construction cost during the strict locdown imposed by the government.

By end-2020, EEI had a backlog of existing contracts amounting to P60.4 billion, which includes projects from the Saudi Arabia-based Al-Rushaid Construction Co. Ltd. totaling P17.38 billion. The company described the backlogs as “healthy and sustainable.”

“Despite the delays in operations caused by the COVID-19 pandemic, the backlog was preserved and will be realized as construction works resume,” the company said, adding that it remains bullish for its short- to medium-term prospects.

The firm said that it expects local operations to perform strongly this year. “EEI expects an overall strong performance in its domestic operations driven by the current buildings, infrastructure, electromechanical, and industrial projects in its pipeline as production continues to pick-up,” it said.

The company said that it stood to benefit as the government rolls out more infrastructure projects under its “Build Build Build” program. It added that it had begun to digitize its processes and increase its operational efficiencies.

EEI said it “continues to explore businesses outside of construction, and has taken steps to participate in areas such as digital logistics, which has been thriving even before the pandemic hit.”

These diversifications, according to the firm, “are expected to bring new growth potential and help future-proof the company.”

Shares of EEI in the local bourse inched down by 0.54% or four centavos to close at P7.40 apiece on Monday. — Angelica Y. Yang

Why property management processes should be automated

May 4, 2021 | 12:04 am

checking-data-laptop — PRESSFOTO/FREEPIK

By Arjay L. Balinbin, Senior Reporter

THE ongoing coronavirus pandemic necessitates the adoption of smart processes for property management companies, but changing their mindset towards innovation remains a challenge, according to cloud-based property management solutions provider Inventi.

“Real estate is a very traditional industry. Innovation comes very slow to the real estate industry, so it’s all about changing the mindset of the companies to make technological innovation and integration a part of their strategy,” Inventi Business Development Manager Francis R. Henares told BusinessWorld via Zoom on April 23.

“I would say that real estate development is one of the slower industries to embrace change, and this has a lot to do with people and manual processes. They are more comfortable trusting people to do the job as opposed to a computer or a piece of software,” he added.

Many property management companies are very traditional, since they became successful without technological integration, the Inventi official said.

Property management is mainly about maintenance and tenant management. This means making sure the building operations run smoothly, such as elevators, water pumps and fire safety systems. It also involves providing efficient services to the building’s tenants.

Many problems arise from manual processes such as requiring guests to sign in a logbook or fill out forms before being allowed entry, as well as manual reading of meters and elevator management.

“We came in initially to try to change these ways by digitizing them. But since the start of the pandemic, it’s kind of kickstarted the need to incorporate technology even more because we now have the challenges of remote working and skeletal facilities teams. Before, property management was so manual, everyone had to coordinate in person manually every single day. But what happens if you are working from home? What happens if your teams are skeletal? What happens if the property manager is also working from home?” Mr. Henares said.

Inventi started in 2017 as a building management system. It then transitioned to a multi-branch property management system until it incorporated internet of things devices into its system.

By the end of the second quarter, Inventi’s system will have been implemented in more than a hundred buildings around the Philippines.

“Slowly, by the end of the year, we hope to go into machine learning wherein the system, based on the data it receives, makes decisions without intervention,” Mr. Henares said.

“For example, when generating a report. Usually, property managers need to generate reports every day, every week, or every month, and they are in the office manually inputting data and generating their reports to give to their supervisors. What our system can do is collect the data, automate the creation of the report, and send it every day at 8 p.m. or every week on Friday at 8 p.m. to the people who need to see it,” he explained.

The same can be done with statements of account. The reading of water and electricity meters can be automated by replacing them with smart meters that can feed the consumption data into the system, which will automatically generate a report, Mr. Henares said.

Gov’t hikes Treasury bill award to P28 billion as yields decline

May 4, 2021 | 12:04 am

THE GOVERNMENT upsized the volume of Treasury bills (T-bills) it awarded on Monday and also opened its tap facility as rates dropped ahead of the release of April inflation data.

The Bureau of the Treasury (BTr) raised P28.2 billion via the T-bills on Monday, more than the programmed P25 billion. Total tenders reached P93.9 billion or nearly four times as much as the initial offer, and higher than the P71.596 billion in demand seen during last week’s auction.

The BTr also opened its tap facility to raise P7 billion more via the one-year securities.

Broken down, the Treasury made a full P5-billion award of the 91-day debt papers it offered from P18.1 billion in bids. The three-month papers fetched an average rate of 1.306%, down by 6.3 basis points (bps) from 1.369% seen last week.

Meanwhile, it raised P11.2 billion from the 182-day T-bills, higher than the programmed P8 billion, after the tenor attracted bids worth P38.075 billion. The average yield of the six-month debt also dropped by 8.5 bps to 1.629% from 1.714% previously.

Lastly, the BTr borrowed P12 billion as planned via the 364-day instruments as total tenders hit P37.865 billion. The one-year IOUs were quoted at 1.863%, down 1.7 bps from the 1.88% in last week’s auction.

“We welcomed strong participation in today’s auction with rates declining across tenors in spite of projected elevated inflation last month,” National Treasurer Rosalia V. de Leon told reporters via Viber after the auction on Monday.

A bond trader, meanwhile, said the auction results showed the market shares the central bank’s view that inflation has already peaked or will peak soon, and is likely to slow in the second half of the year.

“At the same time, the system is too liquid given the slow economic activity due to the extended lockdown,” the trader added.

Headline inflation could have accelerated again in April to go beyond the annual target for the fourth consecutive month due to high food and transport prices, according to analysts.

A BusinessWorld poll last week of 17 analysts yielded a median estimate of 4.7% for April headline inflation, close to the upper end of the 4.2% to 5% estimate given by the Bangko Sentral ng Pilipinas (BSP) for the month. If realized, this will be faster than the 4.5% print logged in March.

Analysts attributed their expectations of faster inflation to the high cost of pork products following the expiration of the government’s price cap, coupled with elevated transport costs due to the continued increase in oil prices.

The Philippine Statistics Authority will report on Wednesday, May 5, the consumer price index data for April.

The BTr will offer on Tuesday P35 billion in reissued five-year Treasury bonds (T-bonds) with a remaining life of four years and 11 months. The bonds carry a coupon rate of 3.375%.

The Treasury plans to raise P170 billion from the local bond market this month: P100 billion via weekly offerings of T-bills and P70 billion in T-bonds to be auctioned off fortnightly.

The government is looking to borrow P3 trillion this year from domestic and external sources to help fund a budget deficit seen to hit 8.9% of gross domestic product. — Beatrice M. Laforga

Oscar-winning Moonstruck actress Olympia Dukakis, 89

May 4, 2021 | 12:03 am

OLYMPIA DUKAKIS at the 2019 Montclair Film Festival Photography by Neil Grabowsky — MONTCLAIR FILM/ EN.WIKIPEDIA.ORG

NEW YORK — Olympia Dukakis, who won an Oscar for her performance as a sardonic, middle-aged mother who advises her headstrong daughter on matters of love in the 1987 romantic film comedy Moonstruck, died on Saturday at age 89.

Dukakis — a cousin of unsuccessful 1988 Democratic US presidential nominee Michael Dukakis — passed away at her New York City home on Saturday morning after months of failing health, according to her agent, Allison Levy. Her daughter, Christina Zorich, was by her side.

Ms. Dukakis, the Massachusetts-born daughter of Greek immigrants, worked for decades as a stage, TV, and film actor before rocketing to fame at age 56 playing the mother of Cher’s character in Moonstruck.

Ms. Dukakis built on that with roles in films including Look Who’s Talking (1989) and its sequels with John Travolta and Kirstie Alley, Steel Magnolias (1989) with Shirley MacLaine, Sally Field, and Julia Roberts, director Woody Allen’s Mighty Aphrodite (1995), and Mr. Holland’s Opus (1995) with Richard Dreyfuss.

Ms. Dukakis, a master of deadpan humor, also was nominated for Emmy awards for TV roles in 1991, 1998 and 1999. In the 1970s, she co-founded the Whole Theater in the New York City suburb of Montclair, New Jersey, after moving there with her husband, fellow actor Louis Zorich.

But, for many, her most indelible performance came in director Norman Jewison’s Moonstruck as Rose Castorini, a Brooklyn woman with a cheating plumber husband (Vincent Gardenia) and a widowed bookkeeper daughter, Loretta (Cher), who has an affair with her fiance’s opera-buff brother (Nicolas Cage).

Her banter with Cher was among the film’s highlights, including a scene in which Ms. Dukakis scolded her daughter during a kitchen dissection of her love life.

“Your life’s going down the toilet,” Ms. Dukakis said in her throaty voice.

At another point, she tells Cher it is good she did not love her fiance. “When you love them, they drive you crazy because they know they can.”

“Olympia Dukakis Was An Amazing, Academy Award Winning Actress,” actress and singer Cher wrote on Twitter. “… I talked to her 3Wks Ago. Rip Dear One.”

Another Oscar winner, Viola Davis, called Dukakis “the consummate actress” on Twitter. “You made all around you step up their game. A joy to work with. Rest well.”

Moonstruck, considered one of Hollywood’s great romantic comedies, won three Academy Awards, including Cher as best actress, and was nominated in three other categories, including best picture. It also was one of the highest-grossing films of 1987.

In accepting her Oscar as best supporting actress in April 1988, when her cousin was battling to become the Democratic Party’s presidential nominee, she thanked Mr. Jewison, her husband and a few others. She then raised the golden statuette over her head and shouted to the worldwide TV audience, “OK, Michael, let’s go.”

Michael Dukakis won the nomination but the Massachusetts governor lost badly in the general election to Republican Vice-President George H.W. Bush.

Like her cousin, Olympia Dukakis embraced liberal views, advocating for causes including women’s rights, gay rights and the environment.

“She had an incredible life and we were very proud of her,” Michael Dukakis told the Boston Globe on Saturday.

Olympia Dukakis was born in Lowell, Massachusetts, on June 20, 1931 and continued to act into her 80s.

Referring to becoming a movie star at an age when many actresses have a hard time finding good roles, Ms. Dukakis told the Guardian newspaper in 2012, “Who knows how that happened? Chance, fate or a bit of both. But I’m very glad I did Moonstruck. It meant that I woke up the next day and was finally able to pay the bills.”

Dukakis said she enjoyed her fame after Moonstruck.

“The fun part is that people pass me on the street and yell lines from my movies,” she told the Los Angeles Times in 1991. “For Moonstruck they say, ‘You’re life is going down the toilet.’”

Her TV appearances included playing a transgender landlady in the 1993 miniseries Armistead Maupin’s Tales of the City and its 1998 and 2001 follow-ups. Ms. Dukakis reprised her role in a 2019 revival of the miniseries for Netflix.

Other films included Cloudburst (2011) playing a foul-mouthed lesbian, Away from Her (2006) with Julie Christie, The Event (2003), Better Living (1998) with Roy Scheider, Never Too Late (1996) with Cloris Leachman, and Dad (1989) with Jack Lemmon and Ted Danson.

Ms. Dukakis in 1962 married Louis Zorich, with whom she had two sons and a daughter and who passed away in 2018. She also had four grandchildren. — Reuters

Axelum joins local e-commerce with online coconut store

May 4, 2021 | 12:03 am

AXELUM Resources Corp. has launched an online coconut store, marking its entry into the country’s e-commerce sector.

The listed coconut manufacturer and exporter said in a regulatory filing on Monday that its store is now in online platforms Shopee and Lazada, offering products under its Fiesta brand.

Axelum said coconut products sold in the two e-commerce platforms include its coconut milk powder, coconut cream and milk, and coconut cooking oil.

Henry J. Raperoga, Axelum president and chief operating officer, said the company is confident that the success of its overseas e-commerce business can be repeated in the Philippines.

“Given the prevailing situation, we have identified existing opportunities to capitalize on increasing consumer preferences for home-based cooking and secured contactless retail transactions,” he said.

“Customers can be assured of world-class export quality coconut products which we have been globally known for since 1986 at affordable prices,” he added.

In 2018, Axelum launched a product line-up under its Fiesta Tropicale brand with global e-commerce platform Amazon.

Recently, the company said that it was aiming to increase its market share in the US e-commerce business after receiving positive customer reviews on its products.

Meanwhile, Axelum is looking at various digital advertising platforms and customer touch points to expand market awareness this year, adding that it expects its e-commerce unit to spur long-term growth.

The company plans to create a professional marketing team to lead different marketing initiatives.

“Overall, we are excited with the future growth prospects of our local e-commerce business, which will not only support Axelum’s growth but also encourage Filipinos to enjoy their favorite dishes and sweet cravings with a healthy coconut twist,” Mr. Raperoga said.

Last year, Axelum posted a 32.1% drop in its net income to P526.41 million due to effects of the coronavirus disease 2019 (COVID-19) pandemic to its operations.

On Monday, shares of Axelum at the stock exchange fell 2.14% or seven centavos to end at P3.20 apiece. — Revin Mikhael D. Ochave

Demand for small office spaces rises, says Eton Properties

May 4, 2021 | 12:03 am

ETON PROPERTIES is looking to address a rise in demand for small office spaces with its office and residential building, Blakes Tower, in Makati City.

Eton Properties Chief Operating Officer Karlu Tan Say said the latest property trends suggest an increasing demand for small office spaces, after demand took a hit because of the pandemic last year.

“Having a work-from-home business model for employees would mean saving office expenses like utilities, supplies, among others. Shifting to a smaller office space can cut down costs without having to cut down on manpower,” she said in a statement.

Eton Properties said it has received inquiries from companies that would like to move to smaller office spaces from their big headquarters that have been unused as they implement flexible work arrangements.

Blakes Tower, a 36-storey office and residential building within the Eton WestEnd Square complex, addresses the need for small and flexible office spaces and residential units. It has 11,000 square meters of leasable office space.

Metrobank books higher net income

May 4, 2021 | 12:03 am

METROPOLITAN Bank & Trust Co. (Metrobank) saw its net profit climb by 27.1% in the first quarter on strong non-interest income and stable asset quality, even amid the pandemic.

The bank’s net profit attributable to equity holders of the parent company was at P7.83 billion in the first quarter, up from the P6.1 billion booked in the same period in 2020, Metrobank said on Monday.

This translated to a return on average equity of 9.87%, up from 7.98% in the same period last year, while return on average assets also inched up to 1.29% from 1.01%.

The bank said the growth in its net profit was driven by the 27% climb in non-interest income at P7.9 billion against the 6.2 billion seen a year ago. Earnings from fees and other charges remained flat at P3.3 billion, income from trust fees went up by 20%, while trading and foreign exchange gains doubled to P2.9 billion.

Its net interest income, however, fell by 11.11% to P19.04 billion in the first quarter from P21.42 billion the year prior because of reduced loans.

This resulted in a lower net interest margin on average earning assets of 3.52% last quarter from 4.06% in the same period in 2020.

Metrobank’s loans and receivables stood at P1.158 trillion last quarter, down 7.58% from P1.253 trillion in the same period last year, due to muted demand for credit amid the pandemic.

Despite the decline in its credit portfolio, its non-performing loan ratio went up to 2.4% from 1.4% a year ago. The lender said it maintained a 166% bad loan cover as of March, up from 163% in December. It set aside P2.509 billion in loan loss provisions, down by 50% from P5.04 billion a year ago.

Meanwhile, Metrobank’s operating expenses inched up by 1.4% year on year to P14.7 billion, which caused its cost-to-income ratio to increase to 54.6% from 52.71% previously.

On the funding side, the bank’s total deposits stood at P1.74 trillion at end-March, slipping by 3.33% from the P1.8 trillion seen a year ago.

The decline was tempered by the 16% growth in its current account and savings account (CASA) deposits to P1.3 trillion. Metrobank said this allowed them to “reduce high-cost time deposits, which partly mitigated the drop in asset yields arising from the rate cuts in the past year.”

Metrobank’s capital adequacy ratio was at 19.9% as of March versus the 17.55% a year ago, while its common equity Tier 1 ratio also went up to 19.02% from 16.29%.

“This ensures that Metrobank will sustain its business resilience, and we remain confident that the bank is ready to take on opportunities as the economy recovers. We are in a strong position to withstand a resurgence in asset quality risks and we remain vigilant even as we all continue to battle the pandemic,” Metrobank President Fabian S. Dee was quoted as saying.

The bank recorded P2.37 trillion in assets as of end-March.

Shares in Metrobank went up by 2.27% or P1 to close at P45 apiece on Monday. — Beatrice M. Laforga