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RCBC posts P800-M net income in 2nd quarter

RIZAL COMMERCIAL Banking Corp. (RCBC) posted a net income of P800 million in the second quarter on the back of strong trading gains, offset by higher loan loss provisioning.

The bank saw a boost in trading gains last quarter, but this was partly offset by higher provisions that reached P3.6 billion, RCBC Corporate Information Officer Ma. Christina P. Alvarez said in an online press briefing on Wednesday. Comparative data was not available as of writing.

In the first half, RCBC’s net income jumped 17% from a year ago to P3.11 billion, buoyed by double-digit growth in revenues and loans.

The lender’s net interest income jumped 20% year on year to P12.794 billion in the first half, while the bank’s other income also increased by 32% to P8.063 billion. Its gains from trading and foreign exchange activities grew 81% to P5.904 billion.

The central bank’s move to lower interest rates helped the bank bring down its funding costs, Ms. Alvarez said, giving its net interest income a boost during the period and allowing its Treasury department to “maximize the value of the investment portfolio.”

“The quarantine limited and reduced the volume of transactions in the branches and as a result, other income components showed a decline versus last year,” she said.

The lender’s loan portfolio expanded by 18% to P480.282 billion in the semester after posting double-digit increases in all three segments. Its net interest margin rose to 4.3% from 3.8% in the same period last year.

Broken down, RCBC’s corporate loan book, which made up 53% of the total, grew 11% year on year, while consumer loans which cornered a 30% share jumped 13%. Meanwhile, credit taken out by small and medium enterprises (SME), which accounted for 17% of the total, surged 23%.

The lender’s nonperforming loan (NPL) ratio inched up to 2.2% from 2.1% a year ago while its bad loan cover ratio also rose to 95.4% from 78.6%.

The increase in its NPL ratio was largely due to the strong growth in consumer and SME loans, Ms. Alvarez said, adding they do not expect the level to change “significantly” amid the pandemic.

She said the bank has been reaching out to the customers to check on their status and offer payment options to help them keep their accounts active.

“Without any interventions, maybe NPL levels could double, but we’re not going to let that happen because we are working with the customers very closely to fix their cash flow and ensure the healthy condition of their loans,” Ms. Alvarez said.

The bank set aside P5.2 billion as provisions for potential losses in the first half, up 94% from a year ago, amid the ongoing coronavirus pandemic.

“We’ve actually accelerated the provisioning estimate already in the first half so this is already going to be the bulk of it — probably 70% already of what we plan to provide,” she said.

The bank’s operating expenses also inched up 4.8% to P11.01 billion.

Meanwhile, deposits grew 19.3% to P499.42 billion, with a 53% current account, savings account ratio.

“It has been a difficult first half of the year, and we remain mindful of the challenges ahead. Hence, we’ve taken prudent steps to cushion the impact of this pandemic and at the same time, to continue serving our fellow Filipinos better by strengthening our digital capabilities, customer relief programs, and partnership with the government and other financial institutions,” RCBC President and CEO Eugene S. Acevedo said in a statement. 

“We entered this pandemic period with a strong balance sheet. We posted positive growth in all fronts while maintaining a healthy financial statement, with a strong capital base and allowing us to expand our balance sheet doing more business in the coming periods,” said Horacio R. Cebrero, the treasurer and head of RCBC’s Treasury Group.

The bank’s cost-to-income ratio improved to 52.8% as of June from the 62.7% posted the year prior.

Its annualized return on equity and return on assets stood at 7.4% and 0.9%, respectively.

RCBC’s assets grew 7% to P719 billion as of June.

The bank also recorded increased digital transactions, with digital banking enrolments up by 187% and “send cash” transactions rising by 569%.

RCBC had 509 branches and 1,514 automated teller machines as of June.

The bank’s shares rose 2.12% or by 34 centavos to P16.34 apiece on Wednesday from the Tuesday’s finish of P16 each. — Beatrice M. Laforga

Roxas Holdings losses reach P340M

Roxas Holdings Inc. (RHI) posted P340.38 million in attributable net loss during the third quarter of its fiscal year, bigger by 18.4% from a year ago, after a substantial drop in its revenues during the period ending in June.

Revenues during the period fell by 61.9% to P696.12 million, the listed sugar and bioethanol producer’s financial disclosure to the stock exchange show.

For the three quarters ending in June, RHI was able to cut its losses attributable to equity holders of the parent company by 34.2% to P427.77 million, it said on Wednesday.

Revenues during the period, which started October 2019 up to June 2020, fell 23.8% to P4.52 billion compared with P5.93 billion a year earlier.

RHI Chairman Pedro E. Roxas said the company’s nine-month period was hampered by “unexpected consequences of unforeseen events.”

He added that despite the company’s gains from better raw sugar sales in its Central Azucarera de la Carlota, Inc., it was significantly hit by losses from its ethanol units.

“RHI experienced the twin impacts of the eruption of Taal Volcano in Batangas and the global pandemic resulting from the coronavirus disease 2019 (COVID19) but the group showed its resilience in facing these headwinds,” Mr. Roxas said.

Meanwhile, RHI President and Chief Executive Officer Hubert D. Tubio said that overall, the alcohol segment reeled from high feedstock cost, which resulted in a decline in gross profit, coupled by lower production as an effect of lower ethanol demand due to quarantine measures.

However, he said RHI and its subsidiaries cut their operating expenses by 6.5% to P532.63 million for the nine-month period, despite challenges from the COVID-19 pandemic.

RHI Executive Vice President and Chief Finance Officer Celso T. Dimarucut said the company’s efforts to reduce its debts were gaining ground.

“RHI earlier announced that Universal Robina Corp. is interested to acquire our assets in La Carlota City, Negros Occidental. We hope that this transaction for our sugar mill Central Azucarera de la Carlota, Inc. and ethanol facility Roxol Bioenergy Corp. will be completed at the soonest time,” he said.

Proceeds from the asset sale will be used to cut RHI’s debt levels, according to Mr. Dimarucut.

On Wednesday, RHI shares were unchanged at P1.59 each. — Revin Mikhael D. Ochave

PHL firms’ data protection still lacking

By Jenina P. Ibañez, Reporter

COMPANY data protection measures in the Philippines are falling short while risks increase during the pandemic, a business consultancy firm said.

Most Philippine companies comply with data protection laws by appointing officers in charge of data and awareness about these measures have increased in recent years. But data protection remains low among organizations’ priorities, Straits Interactive Pte. Ltd. Country Manager Edwin A. Concepcion said in an online interview on Thursday.

The Singapore-based firm said Philippine data protection measures are improving compared to its Southeast Asian counterparts, but there is “still a lot to be done.”

“(Organizations) are very aware that yes there is a law that they need to comply with, but in terms of priorities it’s not on the list, especially now with our situation in the pandemic.”

The pandemic has heightened the risks on the targeting of individuals and organizations through social media, phishing, whaling, and other forms of social engineering, Mr. Concepcion said.

A whaling attack is the infiltration of an organization by someone pretending to be a senior member, while phishing attackers gain sensitive information by masquerading as a trusted organization.

“What we have seen in the pandemic, we were all forced overnight to go digital and work from home. So a lot of organizations were not actually prepared to respond to these kinds of incidents,” Mr. Concepcion said.

He said the entire organization should be accountable for ensuring data protection, not just the officer in charge. Data protection officers are not always given the appropriate training and funding to protect data, he said.

“We’ve seen a lot of problems because of that…. The company should take it from the point of view of risk management. Of course organizations are pursuing business or pursuing risks or rewards…so it’s very critical that the compliance efforts should, the tone should always come from the top.”

Data protection compliance, he said, must include risk assessments and must be adapted to the business processes of the specific company.

The National Privacy Commission in May released guidelines for data security for work-from-home operations, encouraging institutions to use only authorized software and organization-issued devices.

When using home-based Wi-Fi, the commission said to ensure reliable internet connection and to avoid visiting malicious web pages.

While there has been a spike in interest in learning about data protection during the pandemic, Mr. Concepcion said that this has not yet translated to engagement in data protection services.

“In so far as management priority, that’s a totally different matter. Probably during the pandemic times, that’s quite understandable but again the priority is still not there. We don’t see the top management getting involved in the data protection of their companies,” he said.

“They have very high interest, high awareness, but spurring them into action is a low priority.”

Dining In/Out (08/13/20)

Tefal Cookware sale

SCORE DISCOUNTS from Tefal Cookware during the Lazada Happy Home Sale happening from Aug. 12-14. Get an exclusive 35% off on any of the Clipso Pressure Cookers for limited time slots only on Aug. 12 from midnight to 2 a.m., on Aug. 13 from noon to 2 p.m., and on Aug. 14 from 6 to 8 p.m. And for one day only, on Aug. 14, get a special 50% off on one’s total purchase when one buys two Tefal Day By Day Wokpan 32cm. The Tefal Day By Day Wokpan 32cm is made with an exclusive titanium non-stick coating for extra durability and also features the new Thermo-signal technology that indicates the ideal temperature to start cooking. The Tefal Clipso Pressure Cookers include the Clipso Minut Duo 5L which features a two-cooking selector so the user can choose either to steam soup and vegetables or stew meats and sauces. For larger meals, the Clipso Minut Perfect 7.5L features a cook-control system with a self-activating timer that automatically begins at the ideal temperature for cooking and alerts the user when the meal is ready. Tefal Cookware is also available at Rustans.com, Shopee and leading department stores nationwide.

Crowne Plaza mooncakes available for pre-order

TO CELEBRATE the Mid-Autumn Festival, one may pre-order traditional mooncakes at Crowne Plaza Manila Galleria. The mooncake’s round shape is said to symbolize fondness and togetherness between family members. Order a box of traditional mooncakes featuring flavors that include lotus cream and red bean, consisting of four large or six mini varieties starting at P1,488. A box of four large mooncakes with two egg yolks is also available, priced at P1,688. Individual orders start at P280 per piece while mini versions start at P175 per piece. Place orders in advance until Aug. 31 and get a discount of up to 25%. Redemption of the mooncakes is from Sept. 27 to Oct. 15.

Mang Inasal favorites now come in Family Size

TO ADDRESS the growing demand for group meals for stay-at-home customers, Mang Inasal meals now come in Family Size and are available only via takeout or delivery. Mang Inasal has added to its menu five new offerings: four pieces of Chicken Inasal Paa Large, in either original or spicy variant; three pieces of Chicken Inasal Pecho Large; 10 sticks of Pork BBQ; and Palabok good for four to five servings. Prices start at P199. The Mang Inasal Family Size meals are available for delivery through GrabFood, FoodPanda, and LalaFood. Customers may also call the specific Mang Inasal store for delivery or place their orders online through Mang Inasal Facebook Messenger Chatbot, Jose. Mang Inasal follows strict “no-touch” delivery protocols for the safety of its employees and consumers. For a complete listing of stores that offer takeout and delivery services, visit https://stores.jfc.com.ph/manginasal.html. In a related development, Mang Inasal has also launched its Everyday Sarap Savers — a line of value-for-money meals. It consists of the regular Chicken Inasal, one-stick Pork BBQ and Pork Sisig — all served with one cup of rice — and Palabok. Mang Inasal has also added a third variant to its line of Halo-Halo for merienda. The Mang Inasal Buko Pandan Halo-Halo, which is on a limited run, was introduced in July.

Tablea the focus in Maximum Foodie

FOR MANY Filipinos, the best form of chocolate is tsokolate, a thick, velvety, piping hot beverage that’s been a staple in traditional Filipino breakfasts and a hallmark of many Filipinos’ childhood. The main ingredient of tsokolate is tablea, made of 100% fermented pure cacao that is roasted and ground before being molded into balls or tablets. Asian Food Network host Sashi De learned more about tablea during his trip to the country on Maximum Foodie, which premieres on Aug. 15, 10 p.m. Learn about the “never-before-told” tale of cacao in the Philippines and recipes that can be made with it on Maximum Foodie which airs on the Asian Food Network, available on Sky Cable CH 248, Cignal TV CH 62, and Destiny Cable CH 22.

Gov’t to guarantee P10 billion in MSME loans of six banks

STATE-RUN Philippine Guarantee Corp. (Philguarantee) has agreed to back loans  of six banks worth P10.2 billion for micro, small and medium-sized enterprises (MSMEs).

Philguarantee said in a statement on Tuesday that it signed separate agreements with six banks to provide partial guarantee cover for MSME loans in case these are not paid back.

The banks are Bank of the Philippine Islands; UnionBank of the Philippines, Inc.; Malayan Bank Savings and Mortgage Bank, Inc.; BPI Direct BanKo, Inc.; New Rural Bank of San Leonardo, Inc.; and Bangko Kabayan, Inc. 

The signing ceremony was held on Aug. 5 via a video conference, led by key officials from the banks, Philguarantee President and CEO Alberto E. Pascual and National Treasurer Rosalia V. De Leon, who also serves as the agency’s board alternate chairperson.

The agency approved P37.5 billion in credit guarantees in the first half for 22 accredited banks as part of the government’s program to help MSMEs have more access to credit amid the ongoing coronavirus pandemic.

“Philguarantee is processing accreditation of more banks to have broader channels of credit support to MSMEs, which would ensure a nationwide reach,” it said.

Philguarantee extended P5.5 billion in credit guarantees in the first quarter to 35 lending institutions in the agriculture sector, which could benefit more than 31,000 workers in the sector.

The corporation has so far approved a total of P159 billion in guarantee lines for 77 banks to support the housing sector, with more than 109,000 borrowers benefitting from the facility.

The government has set aside P120 billion for the credit guarantee program that will help small businesses gain access to loans for working capital.

The agency targets to provide 50% guarantee cover to at least 12,000 MSMEs affected by the ongoing coronavirus pandemic.

Eligible lenders include universal, commercial, thrift and rural banks as well as other financial institutions supervised by the central bank. — BML

TECNO Mobile’s SPARK 5 Pro available in the Philippines starting Aug. 15

CHINESE mobile phone manufacturer TRANSSION Holdings announced Wednesday that its latest product, the SPARK 5 Pro smartphone, will be available in the Philippines starting Saturday. 

The company’s premium smartphone brand TECNO Mobile said the device will be available at the TECNO Mobile Shopee Store at P5,999 starting Aug. 15.

“You can enjoy a Shopee Flash Sale discount of P1,000 with voucher code GADGETZONE8 and get the SPARK 5 Pro on Aug. 15, for only P4,999,” TECNO Mobile said in a statement.

The new Chinese smartphone is equipped with a 13-megapixel (MP) real AI artificial intelligence quad camera and an 8-MP front camera. 

“The cameras at the back consist of a primary camera, a camera that captures depth of field, AI lens for edge detection in portraits, face recognition, and color profile enhancements as well as a macro lens for photographing small subjects at very close distances,” the company said.

The smartphone offers a wide range of user customization as it operates on HiOS, which also comes with applications that allow users to free up memory, freeze applications, and limit data accessibility to applications, among others.

The cheap smartphone comes with a 5000mAh battery. The company described the device’s 6.6-inch dot-in display screen as “massive” and “very elegant.”

“With an industry leading 90.2% perfect screen ratio and a screen resolution of 720*1600 HD, users will have an immersive display that will transform their experience,” it said.

The device comes in two color options: Ice Jadeite and Seabed Blue. Its backing is made of glassy polycarbonate material. — ALB

Gap between PHL savings and investments narrows in Q2

Gap between PHL savings and investments narrows in Q2

How PSEi member stocks performed — August 12, 2020

Here’s a quick glance at how PSEi stocks fared on Wednesday, August 12, 2020.

PSE index sustains climb on improved sentiment

PHILIPPINE SHARES continued growing on Wednesday on hopes that the lockdown will ease next week and news of a coronavirus vaccine from Russia.

The bellwether Philippine Stock Exchange index (PSEi) gained 41.06 points or 0.69% to close at 5,995 on Wednesday, marking its third straight day of growth.

The broader all shares index also increased 14.69 points or 0.42% to end at 3,551.98.

“(Wednesday’s) gains have wiped out all of the losses that we saw at the end of July when investors dumped shares because of the imposition of stricter quarantine,” AAA Southeast Equities, Inc. Research Head Christopher John Mangun said in an e-mail.

“Investors are slowly gaining confidence after reassurance that the lockdown will be eased… Vaccine hopes have also lifted the sentiment,” he added.

On Tuesday, the Russian government announced it has led the world in approving a coronavirus vaccine, which President Rodrigo R. Duterte said he will obtain for Filipinos.

The Philippine president also said he committed to clinical trials and local production of the Russian vaccine.

The development boosted investor sentiment on the Philippines’ capacity for recovery, as local coronavirus infections surged to 139,538 on Tuesday.

“Philippines shares closed short of the 6,000 mark, as investors weighed the outlook for the economy…,” Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a mobile message.

Half of the sectoral indices at the PSE ended Wednesday’s session with gains. Financials rose 16.97 points or 1.53% to 1,127.10; industrials added 96.57 points or 1.23% to 7,916.09; and holding firms climbed 51.32 points or 0.84% to 6,166.17.

On the other hand, mining and oil lost 153.99 points or 2.63% to 5,703.97; property shed 7.15 points or 0.25% to 2,885.13; and services slid 1.56 points or 0.11% to 1,457.52.

Some 5.9 billion issues valued at P17.08 billion switched hands on Wednesday, up from the previous session’s 5.31 billion issues worth P5.07 billion.

Decliners outnumbered advancers, 102 against 85, while 47 names ended unchanged.

Net foreign selling stood at P360.1 million, slightly lower from the previous day’s P377.14 million.

US stocks closed lower on Tuesday, with the S&P 500 and Dow snapping a seven-day streak of gains and falling late in the session on growing uncertainty about breaking a stalemate in Washington over a fiscal stimulus deal.

Both indexes had been higher for much of the session, and the S&P 500 came within striking distance of its closing record high from February, before the onset of the coronavirus crisis in the United States that caused one of Wall Street’s most dramatic crashes in history.

The Dow Jones Industrial Average fell 104.53 points or 0.38% to 27,686.91; the S&P 500 lost 26.78 points or 0.80%,to 3,333.69; and the Nasdaq Composite dropped 185.53 points or 1.69% to 10,782.82. — Denise A. Valdez with Reuters

Peso weakens vs dollar on recovery in oil prices

THE PESO retreated against the greenback on Wednesday as oil prices corrected, with demand recovering on easing restriction measures amid the pandemic.

The local unit ended trading at P48.94 versus the dollar on Wednesday, weaker by two centavos from its P48.92 finish on Tuesday, data from the Bankers Association of the Philippines showed.

The peso opened the session marginally weaker at P48.925 against the dollar. Its weakest was at P49 while its strongest showing was at P48.92 versus the greenback.

Dollars traded inched up to $795.92 million yesterday from $743.4 million on Tuesday.

The slight depreciation of the peso came after an uptick in oil prices, said Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort.

“Peso was slightly weaker after global crude oil prices recently at five-month highs as many economies further reopen from lockdowns,” Mr. Ricafort said in a text message.

Reuters reported that oil prices inched up on Wednesday after data released showed crude inventories in the US dropped more than market expectations, which boosted sentiment that demand is recovering in the US.

Brent crude rose 15 cents or 0.3% to $44.65 a barrel by 0206 GMT. Meanwhile, the price of West Texas Intermediate oil increased 9 cents or 0.2% to $41.70 per barrel.

Crude stocks dropped by 4 million barrels last week, the American Petroleum Institute said on Tuesday. This is more than the 2.9 million expected decline by analysts.

Meanwhile, a trader attributed the peso’s weakness to risk-off sentiment amid the progress of relief packages in the United States.

“The peso depreciated slightly amid dimming prospects of a swift passage of a household and business fiscal relief package in the US Congress,” the trader said in an e-mail.

This Thursday, Mr. Ricafort expects the peso to move around the P48.90 to P49.05 band versus the dollar while the trader gave a forecast range of P48.80 to P49. — L.W.T. Noble with Reuters

Gov’t to pursue clinical trials for Russian COVID-19 vaccine

GOVERNMENT officials were set to meet with the maker of the Russian coronavirus vaccine on Wednesday to discuss how clinical trials can be started in the Philippines, Health authorities said.

“Let’s see what will result from the talks between Gamaleya and the Department of Science and Technology (DoST),” Health Undersecretary Maria Rosario S. Vergeire told an online news briefing on Wednesday.

The Russian vaccine is in the third phase of clinical trials, she said.

Ms. Vergeire said all clinical trials must be approved by the Food and Drug Administration and the Health department’s ethics board.

The Russian vaccine must be approved by local regulators even if it passes in Russia, she said.

“Whether or not we could actually use it will depend on compliance with our existing laws,” Presidential Spokesman Harry L. Roque told CNN Philippines.

Local Universities will also conduct clinical studies to check if the vaccine is harmless, he added.

Russian President Vladimir Putin on Tuesday said his country had developed the first vaccine for the COVID-19 virus.

Critics have questioned the safety of the experimental vaccine since vaccines take years to develop.

President Rodrigo R. Duterte in a speech on Monday evening said Russia had offered to give the Philippines COVID-19 vaccines, adding that he would volunteer to get injected in public.

He thanked Russia for supposedly offering to send the vaccines to the Philippines free of charge.

He said the Russian vaccines could arrive by September or October.

The Department of Health (DoH) on Monday said it had allotted P2.4 billion for COVID-19 vaccines in its budget for 2021 and this could change depending on the price.

China is the other country Mr. Duterte mentioned in the past that had pledged to prioritize the Philippines for coronavirus vaccine supplies once they develop one.

Meanwhile, four Philippines hospitals will join the trial for the Japanese flu drug Avigan as treatment for coronavirus, Ms. Vergeire told a separate news briefing.

These are the Philippine General Hospital, Sta. Ana Hospital, Dr. Jose N. Rodriguez Memorial Hospital and Quirino Memorial and Medical Center.

The trials would run for nine months,” she said at an online briefing, adding that the government had taken delivery of the drugs.

She earlier said the trial for Avigan would start on Aug. 17. The drug will be given to a hundred patients aged 18 to 74.

Patients who will participate must agree with the use of contraceptive and have no kidney and heart problems, among other requirements, she said.

Japan in April said it would send the drug manufactured by Fujifilm Toyama Chemical Co., Ltd. to 38 countries, including the Philippines after clinical trials. — Vann Marlo M. Villegas and Gillian M. Cortez

COVID-19 infections nearing 144,000, with 2,404 deaths — DoH

THE DEPARTMENT of Health (DoH) reported 4,444 new coronavirus infections on Wednesday, bringing the total to 143,749.

The death toll rose to 2,404 after 93 more patients died, while recoveries increased by 636 to 68,997, it said in a bulletin.

Of the new cases, 2,618 were from Metro Manila, 233 from Laguna, 227 from Cavite, 174 from Rizal and 129 from Bulacan, DoH said.

There were 72,348 active cases, 91% of which were mild, 7.3% did not show symptoms, and less than 1% each were severe and critical, it added.

Sixty-seven of the new reported deaths were from Central Visayas, 16 from Metro Manila, three from Zamboanga Peninsula, two each from Bicol, Western Visayas and the Davao region, and one from the Calabarzon region, the agency said.

More than 1.7 million people have been tested for the COVID-19 virus, DoH said.

The coronavirus has sickened 20.5 million and killed about 746,000 people worldwide, according to the Worldometers website, citing various sources including data from the World Health Organization.

About 13.5 million people have recovered, it said. Active cases stood at 6.3 million, while 14.2 million cases had been closed.

The US topped the global list with 5.3 million cases and more than 746,000 deaths. The Philippines ranked 22nd and was No. 1 in Southeast Asia. — Vann Marlo M. Villegas

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