PBCom Q2 net income inches down

August 17, 2021 | 12:03 am

PHILIPPINE BANK of Communications (PBCom) saw its net earnings slip by 0.38% in the second quarter due to lower trading and rent income.

PBCom’s net income in the second quarter stood at P505.293 million, inching down from the P507.23 million it booked in the same period in 2020, its financial statement filed with the local bourse on Monday showed.

This brought its first-half net profit to P764.43 million, down by 20% from the P955.9 million it posted in the same period a year ago.

This translated to a return on assets of 0.75%, down from 0.94% a year ago. Return on equity also dropped to 5.94% as of June from 8.11%.

PBCom attributed its lower income in the first semester to net trading losses and lower rent income due to vacancies of leased floors, pre-terminations and renegotiated contracts of tenants amid the prolonged coronavirus pandemic.

“Improvements in net interest income and lower operating expenses have partially offset the impact of the decline in net income,” the bank said.

“The full impact of the pandemic is still unknown and this may affect the performance of the bank should this further prolong. However, the bank has taken prudent steps to mitigate the risk through more prudent credit process, tighter credit policies and, more importantly, continue its assessment of our portfolio by regularly doing the stress test exercise,” PBCom said.

The bank’s net interest earnings jumped by 31% to P1.091 billion in the second quarter from P831.183 million.

PBCom’s net interest margin stood at 2.68% at end-June from 2.32% a year ago.

Meanwhile, earnings from trading and securities plummeted by 92% to P15.84 million from P206.033 million a year ago. Its rent income also went down by 35% year on year to P124.17 million.

Its total operating income for the second quarter was at P1.39 billion, higher than the P1.36 billion seen the prior year.

PBCom reported P778.47 million in total operating expenses last quarter, smaller by 1.5% than the P790.49 million it booked in the same period of 2020.

The bank booked P1.123 billion in loans and other receivables in the first half, up by 1.95% year on year mainly due to higher commercial loans.

Its gross nonperforming loan ratio stood at 5.71%, which it said was around the same level recorded at end-2020.

“The bank has experienced an increase in past due levels in loans due to the outbreak of COVID-19. This necessitated an increase in loan provisions, However, a gradual pickup in business activity is expected as the government gradually relaxes the quarantine measures,” PBCom said.

On the funding side, the bank’s deposit liabilities were at P80.09 billion in the first semester.

PBCom’s assets grew to P101.91 billion as of June from P101.24 billion at end-2020.

Its capital adequacy ratio improved to 18.48% at end-June from 17.29% a year ago. — B.M. Laforga

China boycotts actor after photos of visit to Japan’s Yasukuni Shrine

August 17, 2021 | 12:02 am

BEIJING — China’s Association of Performing Arts on Sunday called for a boycott of a Chinese actor after photos of him at Japan’s controversial Yasukuni Shrine taken in 2018 and 2019 circulated online and sparked outrage among Chinese netizens and media.

The Yasukuni Shrine is seen by Japan’s neighboring countries as a symbol of that country’s past militarism, and remains a flashpoint for tension with China. The shrine honors Japan’s war dead, including 14 World War II leaders convicted by an Allied tribunal as war criminals. China, which was occupied by the Japanese from 1937 to 1945, takes offense at visits to the shrine.

“The misbehavior of actor Zhang Zhehan severely harms national feeling and brings baneful influence to his young age-group audience. Hence, we demand members not to engage him in any employment,” said the association in a statement on Sunday.

Mr. Zhang, 30, apologized on Chinese social media on Friday saying he is “ashamed of his ignorance.” Still, state-backed People’s Daily commented that Zhang should “pay a heavy price” for the “challenge of national dignity.”

More than 25 companies in China, including US beverage maker Coca-Cola Co. and Danish jeweler Pandora A/S, have announced the termination of partnerships with Mr. Zhang. — Reuters

RLC focusing on sustainable office buildings

August 17, 2021 | 12:02 am

ROBINSONS LAND Corporation (RLC) is focusing on developing sustainable communities, such as its Bridgetowne Destination Estate.

Bridgetowne Destination Estate is an integrated mixed-use development located within the C5-IT corridor along Libis, Quezon City.

“Bridgetowne espouses the live-work-play-inspire lifestyle through a dynamic mix of real estate developments that empower sustainable living,” the Gokongwei-led developer said in a statement.

The estate features several premium, Grade A office buildings that have received LEED (Leadership in Energy and Environmental Design) certification by the US Green Building Council.

The office towers have been designed include sustainability features to enable the efficient consumption of water, electricity, and light. There are also bike racks and shower rooms to encourage employees to bike or walk to work. A rainwater collection system has also been put in place.

“We, at RLC, take ESG (Environmental, Social, and Governance) very seriously. We innovate and improve the design of our properties to minimize our environmental footprint. This is in line with our goal of building sustainable cities and communities,” Ma. Socorro Isabelle “Mybelle” V. Aragon-Gobio, RLC senior vice-president, said.

Liberty Flour Mills net income up nearly 23%

August 17, 2021 | 12:02 am

LIBERTY FLOUR Mills, Inc. recorded a 22.8% increase in its net income for the second quarter to P37.43 million despite lower net sales, it said in regulatory filing on Monday.

Net sales for the April-to-June period fell 4.6% to P267.91 million, while its cost of sales increased 2.4% to P234.36 million.

For the first half, Liberty Flour posted a 2% increase in its net income to P67.95 million from P66.32 million a year ago.

Net sales during the six-month period reached P507.24 million, down 3.1% from P523.48 million in 2020.

In contrast, the company’s cost of sales increased 1.9% to P427.98 million from P419.91 million a year ago due to the increase in sales volume.

“In terms of sales, basically there was an increase of 7% volume of flour bags sold in the first semester of 2021. However, a reduction in selling price of a major brand resulted to a decrease in revenue from the previous year’s same period operation,” the company said.

Based on the Philippine Stock Exchange website, shares of Liberty Flour were last traded on Aug. 13 when it closed at P28 apiece. — Revin Mikhael D. Ochave

RCBC books higher profit in 2^nd quarter

August 17, 2021 | 12:02 am

RIZAL Commercial Banking Corp. posted a higher net profit in the second quarter. — BW FILE PHOTO

RIZAL COMMERCIAL Banking Corp.’s (RCBC) net profit more than doubled in the second quarter, supported by an increase in its net interest income and lower provisions for loan losses.

The bank’s net income in the second quarter stood at P1.747 billion, surging by 117.83% from P802 million in net earnings recorded a year earlier, based on its financial report released on Monday.

This brought the bank’s net profit in the first half to P3.327 billion, up 7% from the P3.11 billion booked in the same period a year ago.

“Despite lower trading and foreign exchange gains, our core income is gaining momentum to support the bottom line,” RCBC Corporate Planning Head Ma. Christina P. Alvarez said at an online briefing.

The bank’s first-half performance translated to a return on equity of 6.55%, down from 7.43% a year ago, while return on assets also slipped to 0.84% from 0.86%.

RCBC’s net interest income in the second quarter increased by 9.6% to P7.118 billion from P6.494 billion, backed by the 30.7% decline in its interest expenses to P2.111 billion from P3.049 billion a year earlier.

Its lower expenses helped offset the 3.29% drop in its interest income to P9.229 billion from P9.543 billion, which was mainly due to a 7.8% decline in earnings from loans and receivables to P8.109 billion. Meanwhile, income from investment securities rose by 85.8% to P840 million.

RCBC’s net interest margin was at 4.08% as of June from 4.28% in the comparable year-ago period.

Meanwhile, non-interest income by fell 61.4% to P1.685 billion from P4.371 billion a year earlier, mainly dragged by trading gains which slumped by 95% to P163 million. On the other hand, services fees and commissions climbed 49.2% to P1.04 billion, while the bank recorded foreign exchange gains of P28 million, reversing the P43-million loss booked a year ago.

“Trading and foreign exchange gains were significantly higher in 2020, and we do not expect the same levels of trading gains in 2021,” Ms. Alvarez said.

On the other hand, other operating expenses inched up 0.3% to P5.473 billion in the second quarter from P5.454 billion a year ago.

Provisions for impairment losses declined by 61.24% to P1.396 billion in the second quarter from P3.602 billion.

RCBC’s loans and receivables grew 3.6% to P497.851 billion as of June from P480.282 billion in the same period of 2020.

Ms. Alvarez attributed this growth to a rise in corporate and small- and medium-sized enterprises (SME) loans. She said they will continue to target top corporations, select SMEs and select areas outside Metro Manila.

As its portfolio expanded, the bank’s nonperforming loan (NPL) ratio also inched up to 3.25% from 2.24% a year ago.

RCBC Head of Credit Management Group Benett Clarence D. Santiago said the bank’s NPL ratio has likely already peaked, as it has been declining as of July.

He added that although the fresh lockdown poses a risk to the bank’s performance, the rate of vaccination should help “to compensate in a big way.”

Meanwhile, on the funding side, RCBC’s deposit liabilities increased 19.8% to P598.145 billion as of June from P499.42 billion in the same period of 2020.

The bank’s assets rose by 18% to P845.8 billion as of June from 718.752 billion the year prior.

Its capital adequacy ratio stood at 15.07% as of end-June, up from 13.87% a year ago, while its common equity Tier 1 ratio was at 11.84%, down from 12.99% last year. Both remained above the minimum regulatory requirements.

As of June, RCBC had a total consolidated network of 434 branches, 1,272 automated teller machines, and 1,535 ATM Go terminals.

RCBC’s shares closed at P19.79 apiece on Monday, up by 18 centavos or 0.92% from its previous finish. — L.W.T. Noble

Free Guy debuts at No. 1

August 17, 2021 | 12:01 am

LOS ANGELES — Despite concerns the Delta variant would keep moviegoers at home, Ryan Reynolds’ sci-fi action-comedy Free Guy had a better-than-expected start at the US box office.

The movie, from Disney and 20^th Century Studios, collected $26 million from 4,165 North American theaters. Given its production budget above $100 million, those ticket sales wouldn’t be much to celebrate in pre-pandemic times, but isn’t a bad result as a plague sweeps the globe.

Overseas, Free Guy amassed $22.5 million for a global tally of $51 million.

Free Guy marks an interesting test for the film exhibition industry because it’s playing exclusively in theaters, which is a rarity these days. Many high-profile films that premiered during the pandemic, such as Marvel’s Black Widow and The Suicide Squad, were available on streaming platforms on the same day as their theatrical debuts. The few films offered only in theaters, like Universal’s F9, Emily Blunt and John Krasinski’s follow-up A Quiet Place Part II and Paramount’s G.I. Joe origin story Snake Eyes, were each sequels in popular film franchises, unlike Free Guy, which is based on an original concept and isn’t part of an existing movie universe.

This weekend’s other new nationwide releases, Sony’s thriller Don’t Breathe 2 and MGM’s Aretha Franklin biopic Respect, each arrived in line with expectations, though neither did much to galvanize ticket buyers. — Reuters

Home prices in world’s most expensive market break record

August 17, 2021 | 12:01 am

skyline-China-HONG-KONG — A STAR Ferry boat crosses Victoria Harbour in front of a skyline of buildings during sunset. Hong Kong, China June 29, 2020. — REUTERS/TYRONE SIU

HONG KONG’S home prices jumped to a record high, joining other global real estate markets that are soaring on low mortgage rates and rising demand as the pandemic slowly recedes.

Values for resale houses rose 0.65% for the week ended Aug. 8, according to Centaline Property Agency Ltd., which started tracking prices in 1993. The last record for the firm’s price index was set in mid-2019 at the beginning of anti-government protests. Residential property values have increased 8.6% since the beginning of the year.

Outsized demand, limited supply and low borrowing costs have fueled the world’s most expensive property market even amid concerns about the city’s future after the protests and the introduction of a national security law by China last year.

The abundance of liquidity has also resulted in soaring prices in other major financial centers around the world. US residential property prices jumped the most in 30 years in April, with even more dramatic rises in many suburban and rural areas where bidding wars are common. Home prices in New Zealand, one of the world’s hottest markets, have risen for 31 straight months.

The rising prices also signal that a potential exodus of residents to the UK via a new visa program hasn’t hurt the real estate market in Hong Kong.

In addition to the strong demand from local buyers, mainland Chinese investors are helping boost the market. They made up 11.2% of purchases by value in the first four months of 2021, up from 10.5% in the same period last year, according to Midland Realty.

Prices are expected to keep rising. Cushman & Wakefield expects home values to climb another 5% in the second half of the year. — Bloomberg

Oriental Petroleum profit dips on higher costs

August 17, 2021 | 12:01 am

LISTED oil exploration firm Oriental Petroleum and Minerals Corp. said its second-quarter net income fell by around 43% to $827,703 from a year-on-year level of $1.45 million, after registering higher costs in petroleum operations.

Costs incurred in petroleum operations reached $623,366, higher by 18% versus the $525,904 recorded in the same period last year, according to the company’s quarterly report filed with the local bourse on Monday.

Expenses in petroleum operations included petroleum production costs, and a line item on depletion, depreciation and amortization.

On the other hand, Oriental Petroleum’s revenues during the three-month period ending June reached $1.11 million, up by more than threefold compared with $333,946 in second quarter last year.

The firm is engaged in the exploration, development and production of petroleum and mineral resources. Its subsidiaries include Oriental Mahogany Woodworks, Inc., Oriental Land Corp. and Linapacan Oil Gas and Power Corp.

Shares of Oriental Petroleum decreased by 8.33% to finish at P0.011 on Monday. — Angelica Y. Yang

AgriNurture profit down despite higher sales

August 17, 2021 | 12:01 am

AGRINURTURE, Inc. (ANI) recorded a 74.8% decline in its net profit to P82 million for the second quarter despite higher revenues.

The listed firm said in a stock exchange disclosure on Monday that its net revenue during the quarter rose 14.9% to P1.11 billion. Cost of sales also increased 19.4% to P943.12 million.

For the first half, the company’s net profit dropped to P122.07 million from P356.99 million a year ago.

Net revenue for the six-month period rose 29% to P2.31 billion compared with the P1.79 billion in the previous year. Costs of sales also climbed 36% to P1.98 billion.

From the total net revenue, Philippine operations reached P1.07 billion, up 5.7%, while revenue from foreign operations improved 58.7% to P1.25 billion.

“For the first six months of 2021, Philippine operations contributed 46% while sales from foreign operations accounted for 54% of consolidated sales,” ANI said.

ANI said its export sales for the first half rose 9% to P883.1 million resulting from the stable selling prices of banana and coconut juice in the international market, continuous supply of raw materials, and higher demand especially in the Chinese market.

“Local distribution sales posted a decrease of 4.5% to P177.52 million for the six months from P185.87 million for the same period in 2020. Sales decreased significantly especially during the start of the enhanced community quarantine,” ANI said.

In effort to improve operations, the company launched its own e-commerce platform via its ANI Express website and mobile application, which allows customers to order the company’s products and delivered to them.

“The group is also launching new products such as plant-based meat, non-dairy ice cream, and big chill healthy drinks in cans for local and export distribution which are expected to start to record double digit growth for the rest of the coming quarters,” ANI said.

“Consolidated operating expenses for the first two quarters of 2021 amounted to P156.14 million down from P222.37 million for the same period last year, due to the pandemic issue where the retail and franchise and Hong Kong operations of the group were shut down since the start of implementation for a lockdown,” it added.

On Monday, shares of ANI at the stock exchange rose 0.33% or two centavos to end at P6.12 each. — Revin Mikhael D. Ochave

PhilRatings gives PRS A grade to Nat Re

August 17, 2021 | 12:01 am

THE National Reinsurance Corporation of the Philippines (Nat Re) obtained a PRS A financial strength rating with a “stable” outlook from local debt watcher Philippine Rating Services Corp. (PhilRatings).

The country’s sole local reinsurer said in a press release that its latest rating indicates the company’s “strong financial security” while a “stable” outlook meant this may be maintained in the next 12 months.

It said PhilRatings took into account the company’s “solid market franchise, shareholders of good standing, experienced management and sound investment portfolio” for its assessment.

Nat Re, however, remains more vulnerable to potential adverse business conditions compared to other insurance companies with a higher rating, PhilRatings said.

Aside from being the only reinsurer in the country, Net Re also has an advantage granted by the law where it can take up at least 10% of all outward reinsurance business of local insurance companies.

“This gives Nat Re significant access to domestic reinsurers’ business, and also a broader view of their reinsurance requirements. The company’s marketing strategy is supported by its technical know-how, industry track record and familiarity with the domestic mark,” it said.

State-owned Government Service Insurance System (GSIS) is its biggest shareholder with a 25.7% stake in the firm.

Other major shareholders of Nat Re includes the Bank of the Philippine Islands (BPI) and MICO Equities, Inc. (MEI) with 13.7% and 12.9%, respectively.

The national reinsurer saw its net profit drop by 24% to P120 million in 2020 from P157 million in 2019 due to lower investment income. — BML

Entertainment News (08/17/21)

August 17, 2021 | 12:00 am

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GMA Playlist to launch new talents

GMA Music has created a sub-label, GMA Playlist, targeting millennials and GEN Z fans. The lineup of young GMA artists in the label are Mikee Quintos, Arra San Agustin, Anthony Rosaldo, Crystal Paras, Denise Barbacena, Faith Da Silva, Jeniffer Maravilla, Kaloy Tingcungco, Kim De Leon, Lexi Gonzales, Shayne Sava, Mark Herras, and Seb Pajarillo. “The GMA Playlist sub-label was born out of our passion to contribute to the OPM industry. It is also a venue for us to release original songs and have them performed by our untapped singers of the network. We also give our listeners an alternative to their usual playlists,” GMA Senior Manager for Music Production Section Racquel S. Gacho said in a statement.

Paolo Sandejas releases cover of disco song

FILIPINO singer-songwriter Paolo Sandejas has released a cover of the 1980s disco song “Never Knew Love Like This Before.” The originally version by Stephanie Mills made it to the US Billboard Pop Singles Chart and won Best R&B Song at the 1981 Grammy Awards. Mr. Sandejas incorporates his brand of funky and modern indie-pop music to the song in his single. He worked closely with his producer, Tim Marquez of Timothy Run and One Click Straight, on this record. “Being an artist I wondered how the song would’ve possibly sounded like if it came out today. This project is the result of that curiosity and I hope everyone enjoys it as much as I enjoyed working on it,” Mr. Sandejas said in a statement. “Never Knew Love Like This Before” is available on Spotify and Apple Music.

Clara Benin drops Bahasa version of ‘Tila’

AWARD-winning singer-songwriter Clara Benin has dropped her first international single, “Suara Hati” under Southeast Asian label, OFFMUTE. The folk-pop tune sung in Bahasa Indonesia, which showcases Benin’s stripped-down sound and delicately intimate songwriting style, was originally written and released in 2015 as “Tila,” a Filipino track off her debut EP Riverchild. To date, “Tila” has amassed more than 6 million streams on Spotify and YouTube combined, becoming one of her most commercially successful releases. As part of OFFMUTE’s initiative to champion its roster of new and emerging music acts across and beyond the region, “Tila” was re-recorded by Ms. Benin in Bahasa Indonesia, becoming “Suara Hati,” with the help of prolific music producer, composer, and multi-instrumentalist The Ringmaster, who has worked with Filipino bands such as UDD and Ang Bandang Shirley. “It was really important for me to make this song sound authentic and true to its language,” Ms. Benin said in a statement. “My producer, The Ringmaster, made that easy for me because he actually grew up in Indonesia and speaks Bahasa fluently. He helped me a lot with the pronunciation and delivery of the vocals. Berto Pah, who is an Indonesian sasando player, also helped in making the song sound authentic.” The release of “Suara Hati” comes with a lyric video in Bahasa Indonesia which features Benin performing the song with her acoustic guitar, and a backdrop of flowers and nature elements projected against the wall. “Suara Hati” is available on all digital music platforms.

Dominic Chin releases new single

DOMINIC Chin puts a refreshing spin on the Mando-pop of yesteryears with his new single, “My Love,” featuring Jerry Galeries. The song was inspired by Chin’s fascination with the music of his childhood, listening to the likes of A-mei, JJ Lin, and Stefanie Sun in the backseat of his family’s car. Backed by rich, dramatic instrumentation and a retro-leaning production, the singer-songwriter/producer revisits classic Chinese pop balladry. “This is a classic love song that stems from the old-fashioned style of professing one’s love for another person, with lines speaking poetically and hopping between two romantic languages: English and Mandarin,” Mr. Chin said in a statement. Listen to “My Love” at https://www.umamirecords.sg/my-love/.

HBO Go’s Traffickers: Inside the Golden Triangle

WARNERMEDIA presents Traffickers: Inside the Golden Triangle, an HBO Asia Original documentary series that exposes the secretive epicenter of illicit drug production inside the Golden Triangle. The documentary series follows the rise and demise of three drug kingpins in Thailand, Myanmar, and Laos. The three-part documentary series unravels how “the Opium King,” “The Mekong River Pirate,” and “The Playboy Drug Lord” exploited drugs, war and violence to claw their way to the top. It features exclusive interviews with members of the drug lords’ inner circles, drug enforcement agents, and victims’ families, as well as never-before-seen archive footage and immersive recreations. Directed by Robbie Bridgeman, Steve Chao and John Lam and executive produced by Dean Johnson, the documentary series is filmed on location in the Golden Triangle, Thailand, Burma, China, the USA, Malaysia, the Philippines and Australia. Stream Traffickers: Inside the Golden Triangle on HBO GO.

Christopher Lee in iQIYI drama

IN IQIYI’S prison-themed Chinese language series Danger Zone, Singaporean actor Christopher Lee plays a police officer once again in almost 20 years. In the series, Mr. Lee chases after criminals and investigates cases. The drama is formatted into chapters, with 24 episodes split into two chapters, “In the Dark Night” and “The Silver Lining.” Directed by Zhuang Xuan Wei, joining Mr. Lee in the cast are Vic Chou, Sandrine Pinna, Wu Hsing-kuo, Berant Zhu, Tseng Chin-hua, and Teresa Daley. Danger Zone begins streaming on Sept. 3, with new episodes released on Fridays. Download the iQiyi app or log in to www.iQ.com for more Asian shows.

World’s first Batman augmented reality app

DC has released a Batman mobile experience for children ages six to 12. The “DC: Batman Bat-Tech Edition” app is a one-of-a-kind free mobile app available in app stores in 13 different languages around the world. The app lets kids join Batman’s crime-fighting team, the Knightwatch, and experience the world of Batman, learning how to use his Bat-Tech to fight crime and help defend Gotham City from his evil adversaries. “DC: Batman Bat-Tech Edition” is COPPA compliant and free to download and play. The app features first-of-its-kind augmented reality (AR) technology to engage children and immerse them in the world of the iconic hero who uses crimefighting tech to help him foil the evil deeds of the Joker, Mr. Freeze, The Riddler, and other super-villains. The launch comes just in time to celebrate “Batman Month” in September and DC Fandome, the global fan experience on Oct. 16. In Southeast Asia, Hong Kong, and Taiwan, streaming service HBO GO and Cartoon Network are gearing up for a month of Batman-themed stunts, contests, and social media takeovers dedicated to the Caped Crusader. In addition to learning about Batman’s technology through the app’s AR storytelling features, children can play mini games, transform photos with AR face filters and stickers, read exclusive digital comics, watch Batman Bat-Tech themed video content, and gain access to the Batcomputer, the super-computer where Batman’s tech secrets are stored. Additionally, launching exclusively on the “DC: Batman Bat-Tech Edition” app is a digital comic series, Batman — Knightwatch, where children can explore how the Knightwatch program was created and follow along with Batman and his Super Hero team as they take on Gotham’s City’s villains following a massive breakout at Arkham Asylum. Additional digital comics will be added to the app on a regular basis. The app is available for free on the Apple Store and the Google Play store, and is playable on both tablets and smart phones. The app is available globally and is localized in 13 different languages, including Korean, Japanese and Simplified Chinese.

Overseas Filipinos’ Cash Remittances (June 2021)

August 17, 2021 | 12:00 am

MONEY SENT HOME by overseas Filipino workers (OFWs) reached a six-month high in June, as more host countries gradually reopened their economies amid the rollout of coronavirus vaccines. Read the full story.