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AUB net income climbs 36% in 2024

ASIA United Bank Corp. (AUB) saw its consolidated net income increase by 36% year on year to P11.3 billion in 2024, mainly driven by double-digit loan growth.

This translated to a return on equity of 21% and a return on assets of 3%, up from 18.6% and 2.4% last year, respectively, it said in a disclosure to the stock exchange on Monday.

The bank noted that the 36% growth in its net profit last year represents a 21% compounded annual growth rate since it was listed in 2013. Its financial statement was unavailable as of press time.

“We have managed to sustain the growth in our profitability since the pandemic, thanks to our robust core business and digital partnerships,” AUB President Manuel A. Gomez said.

AUB’s revenue growth last year was backed by an 11% increase in its net interest income to P16.8 billion, driven by higher interest earnings from loans and investment activities. Its interest expense on deposits also slipped by 3%.

This caused its net interest margin to rise to 5% last year from 4.8% in 2023.

The bank saw a 26% increase in its loan portfolio to P245.4 billion at end-2024 from P194.5 billion the year prior.

“Despite the loan growth, its asset quality further improved, with its nonperforming loan (NPL) ratio at a record low of 0.3% and loan loss provision reduced by 74%. The bank remains sufficiently covered, with an NPL coverage ratio at 113.7%, higher than previous year’s 107.9%,” AUB said.

It added that low-cost current account, savings account or CASA deposits made up 71% of its total deposits last year.

AUB’s non-interest income rose by 48% to P4.1 billion, which it attributed to “improved foreign exchange gains, recovery income, and service charges and other fees from other operating activities.”

Meanwhile, its operating expenses increased by 6% to P6.8 billion last year amid higher compensation, capital expenditures, and business growth-related expenses.

“The bank continues to exhibit efficient resource management in its business generation as evidenced by its 32.8% cost-to-income ratio, even lower than the previous year’s 36.2%,” it said.

AUB’s assets expanded by 9% year on year to P386 billion at end-2024.

Total equity also rose by 19% to P58.4 billion.

Its indicative common equity Tier 1 ratio was at 17% last year, up from 16.9% in 2023. Its capital adequacy ratio also improved to 17.8% from 17.5%.

AUB shares climbed by P1.40 or 1.81% to close at P78.80 each on Monday. — BVR

Trump’s phone call with Putin is causing a stir in Taiwan

FREEPIK

ONE PHONE CALL does not a treaty make, but President Donald Trump’s conversation with Russia’s Vladimir Putin on ending the war in Ukraine is worrying Taiwan. China will watch developments for any hint on whether a resolution spells a similar future for the self-ruled island Beijing claims as its own.

Taiwan’s President Lai Ching-te’s government should consider what it can offer Trump to avoid becoming a pawn in the US-China rivalry. It’s a delicate balance: Appeasing the US leader doesn’t only mean figuring out what he wants, but interpreting how American policy toward the island might be changing.

The US State Department updated language on its website recently to remove a line that stated: “We do not support Taiwan independence.” The last time the same fact sheet cut the sentence was in May 2022, under former President Joe Biden’s administration. It was reinstated about a month later, following protests from China.

Figuring out what Trump wants is a lesson Ukraine’s Volodymyr Zelenskiy is learning in real time. The phone call between the US and Russian leaders last week upended years of American policy, with some diplomats describing it as a sellout, and accusing the US leader of giving in to Russia’s key demands even before negotiations have begun. Trump spoke to Zelenskiy too, but notably, only after Putin.

For the US president, it’s simple — it’s partly about money. Estimates from Bloomberg Economics show that protecting Ukraine and expanding their own militaries could cost Europe’s major powers an additional $3.1 trillion over the next 10 years, a cost the Trump administration no longer seems willing to help bear. Since the Russian invasion of Ukraine in February 2022, the US has committed approximately $56.3 billion in security assistance. Trump has also previously said that he wants to recoup the money Washington has spent on the conflict by securing $500 billion in mineral rights from Ukraine.

Ukraine provides a useful foil for Taiwan. Taipei is also dealing with the threat of a mightier power on its doorstep — one that has consistently talked about unifying with it, by force if necessary. The island’s leaders have been vocal in their support for Ukraine, but also used it to convince their own voters that they can’t afford to be complacent in the face of Chinese aggression. Beijing has been flying a record number of warplanes across a US-drawn boundary in the Taiwan Strait, and launched drills in the waters around the island. That’s prompted Taipei to announce increases in army spending, and extend military service for eligible males.

For decades, Taiwan has been dependent on American defense equipment, deterrence, and diplomacy, and has needed Washington’s policy of “strategic ambiguity” to maintain the status quo. This approach was designed to signal to Beijing that if there was an unprovoked attack, America would get involved. Biden had insinuated on more than one occasion that the US would come to Taipei’s defense.

Under Trump, there are no such assurances. Chieh-Ting Yeh, a venture investor and a director of US Taiwan Watch, told me that any agreement with Putin over Ukraine highlights how the president sees himself first and foremost: as a dealmaker. “There’s a lot of anxiety in Taiwan about what to cram into the gift package being offered to Trump,” Yeh told me. “There will always be the possibility it’s on the table for a deal with China, and this is something President Lai Ching-te needs to take a realistic look at, in terms of how to deal with the president.”

Domestically, Lai’s got a full plate. The three main political parties are blaming each other for the island’s deepening divisions. The defense budget, in particular, is proving to be problematic, with the opposition China-leaning Kuomintang party blocking increases in spending. Lai has been unable to break through the ceaseless political gridlock, despite Beijing’s growing military actions, and Trump’s public demands to invest more in its own security.

Trump is also unhappy with Taiwan’s record-level trade surplus, and has complained that the island “stole” America’s semiconductor industry. He’s threatened heavy tariffs, insisting future production capacity should be housed in the US.

Taipei is already looking to address the tariffs. In a hastily convened press conference on Friday, Lai said a special budget will be used for military spending, lifting it to above 3% of GDP. He also said the island will expand investment in the US and buy more goods from there. Meanwhile, the deputy economy minister has been putting forward Taipei’s position to US officials last week. And Taiwan Semiconductor Manufacturing Co.’s board met in Arizona for the first time, another sign of its commitment to making chips in the US.

These are important steps, but the island should also make use of its existing friends it has in the Trump cabinet, many who appear strongly supportive of its right to exist. Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth have both publicly stated that their commitment to Taiwan’s defense is non-negotiable.

But whether the president is as committed is unclear. He has dithered over whether he would step in if China were to invade. Elon Musk, the billionaire leading Trump’s government cost-cutting efforts and a close adviser, has previously argued Americans shouldn’t be drawn into the conflict.

That we are reduced to a state of global geopolitics where the fate of places like Ukraine and Taiwan are effectively bargaining chips speaks to the transactional times we live in. Trump’s game is clear. Taipei should play the best hand it can.

BLOOMBERG OPINION

Oscar winner Bong Joon Ho says Mickey 17 demagogue not drawn from present leaders

Mark Ruffalo plays the dictator in Mickey 17.

BERLIN — South Korean director Bong Joon Ho’s villain in Mickey 17, a demagogic politician played by Mark Ruffalo, was based on past dictators, but might seem familiar to viewers because “history always repeats itself,” the Oscar winner said in Berlin.

“He has, in a comical way, all the faces of the bad politicians we’ve experienced,” he told journalists via a translator on Saturday at the Berlin Film Festival.

Mr. Bong made history at the 2020 Oscars when Parasite, a dark social satire about the gap between rich and poor in modern Seoul, became the first non-English language film to win the best picture award, the US movie industry’s highest honor.

His new sci-fi dark comedy starring Robert Pattinson is being shown in the festival’s Special non-competition section.

“I made this character drawing my inspiration from the past, and as history always repeats itself, it might seem like I’m referring to someone in the present,” Mr. Bong said.

Based on the novel Mickey7 by Edward Ashton, the film follows Mr. Pattinson as the working-class Mickey Barnes, who unknowingly signs up to make his living by repeatedly dying.

“Although it’s a story of the future, it seems like a story that could happen in the present or the past,” Mr. Bong said.

For young people in the audience, what is now science fiction could one day be a situation they experience, he said.

The director added that Mickey 17 is his first love story, and that it was his life goal to make films of all genres, with one possible exception.

“I am a bit scared of musicals,” he said.

Mickey 17, which also stars Toni Collette, Naomi Ackie and Steven Yeun, begins its cinema rollout on February 28 in South Korea and other countries including the Philippines from March 5. — Reuters

Converge, St. Luke’s partner for in-room digital concierge

PHILIPPINE STAR/JOHN NICOLE VILLAMAYOR

LISTED fiber broadband and technology provider Converge ICT Solutions, Inc. has partnered with St. Luke’s Medical Center (SLMC) to launch an in-room digital concierge to improve patient experience through digital solutions.

“With a focus on patient-centered care and our mission for excellent digital experiences, this partnership will really set the standard for patient hospitality in the healthcare industry,” Converge Chief Executive Officer (CEO) Dennis Anthony H. Uy said on Monday.

On Monday, Converge announced its partnership with St. Luke’s Medical Center to launch the in-room digital concierge powered by its Fiber-to-the-Room (FTTR) technology, which will allow over 400 rooms at St. Luke’s Bonifacio Global City (BGC), Taguig, to benefit from this digital solution.

The digital solutions, described as revolutionizing the patient experience, will transform SLMC’s rooms into smart rooms. This will provide patients access to eHealth records, entertainment, billing, and interactive features via Smart TV from their hospital rooms.

SLMC will also expand its partnership with Converge, bringing the digital solutions to other branches of the hospital, SLMC President and CEO Dennis P. Serrano said.

“You can be sure that whatever gains we have made in the two hospitals, we’re going to translate that also into the third hospital,” Mr. Serrano said, adding that the activation for SLMC Quezon City is currently in the works.

“Yes, this agreement, as it exists, is for both Global City and Quezon City,” he added.

SLMC Parañaque, which is expected to commence operations by 2029, also stands to benefit from this digital technology, Mr. Serrano said.

“The FTTR solution was deployed to over 400 rooms in St. Luke’s Medical Center, BGC, and nearly 400 rooms in SLMC Quezon City are underway for activation. This is in addition to the high-capacity, seamless Wi-Fi provided by Converge in all the common areas of both hospitals,” Converge said in a media release.

To recall, Converge has also launched its Converge Concierge platform in partnership with Sky Cable, Inc. for The Manila Hotel.

The company has said that it seeks to enhance guest experience and improve the operational efficiency of local hotels through its offerings. — Ashley Erika O. Jose

Digido loan offerings now on PalawanPay e-wallet

NORDWOOD THEMES-UNSPLASH

ONLINE LENDING platform Digido, operated by Digido Finance Corp., has partnered with the Palawan Group of Companies’ (PGC) PalawanPay to integrate its loan products into the e-wallet.

Digido and PalawanPay signed a memorandum of agreement to allow the latter’s customers to take out Digido loans via the PalawanPay digital wallet application.

“This landmark partnership reflects the synergy of both companies’ products and our aligned goal in promoting financial inclusion through access to safe and trusted digital financial services. We are incredibly excited to embark on this endeavor with PalawanPay and are looking forward to serving more Filipinos with our credit services,” Digido President Aleksei Kosenko said in a statement on Monday.

“Anchored in PGC’s thrust to foster financial inclusion among Filipinos, we at PalawanPay are very keen to kick off this partnership with Digido. I can’t wait to see more of our kababayan enjoy reliable digital financial services,” PalawanPay President and Chief Executive Officer Emiliano Librea III said.

PalawanPay users can use the funds borrowed via Digido for online transactions and at merchants that accept QR Ph payments.

They can also repay the loans through their PalawanPay accounts.

The Palawan Group of Companies will also roll out Digido advertisements at its Palawan Pawnshop branches.

PalawanPay, PGC’s e-wallet app, has over 20 million users. It allows customers to send and receive remittances, and also offers other services like bills payment, mobile load top-ups, and scan-to-pay QR Ph codes.

Meanwhile, Digido offers loans of up to P6,000 for first-time borrowers. It also has a standard Personal Loan product, through which repeat clients can borrow up to P25,000.

A recent Digido study said the Philippines’ digital lending market could surpass $1 billion by the second half of the year, with growth to be driven by strong demand for online financial services.

This is bigger than Digido’s estimate of a $796-million value at end-2024 and the $693 million recorded in 2023.

The Philippines’ digital lending market has been growing at an average of 28% or $68 million annually from 2013 to 2023, it added. — A.M.C. Sy

Developers may turn to branded residences as mid-market condos struggle — C9 Hotelworks

PHILSTAR FILE PHOTO

By Beatriz Marie D. Cruz, Reporter

PROPERTY advisory firm C9 Hotelworks expects that more developers will shift their focus to branded residences due to their increasing market potential and the underwhelming performance of mid-market condominiums.

“I think developers are going to be forced to move into other products because, at the end of the day, you’re going to induce demand because developers have to find earnings,” Bill Barnett, executive director of C9 Hotelworks, told BusinessWorld on the sidelines of an event on Feb. 4.

“If they’ve got this surplus of mid-tier condos, how are you going to get sales? So, they have to move to other products and niche locations. So, I find this a positive thing for the Philippines.”

The Philippines has the second-highest market share of branded residences in Asia at 17.3%, according to C9 Hotelworks’ latest Branded Residences Market Review. It trails only Thailand (23.3% market share) and leads South Korea (11.6%).

According to property consultancy firm Leechiu Property Consultants, developers are likely to work on branded residence projects to appeal to the high-net-worth market.

More luxury villas and larger condominium units are also expected to dominate the branded residences market, Mr. Barnett said.

Ripe markets for branded residences include Bonifacio Global City, Cavite, Bohol, and Palawan, he added.

“[In the] post-COVID [era], we see more multi-generational travel,” he also said. “In every market we work in, size is getting bigger because you have people who spend more time in their holiday house.”

As of December last year, the Philippines recorded around 13,276 units of branded residences across 16 properties, with a value of $4,326 per square meter.

Having more branded residence projects would help increase the value of developer properties, Saowarin Chanprakaisi, The Ascott Ltd. vice-president for business development, said on the sidelines of the event.

“For the Philippines’ market itself, where the real estate market has a lot of supply, to stand out from the existing supply offerings, having a brand collaborating with your project will make your values outstanding from the rest.”

Asia’s branded residences sector has a supply value of $26.6 billion, comprising 68,001 units in total. Of these, 30,461 units are located in urban areas, while 37,540 are in resorts.

Around 96% of branded residences in Asia are condominiums, while 4% are villas, according to the report.

Likewise, 12,330 units across 80 developments in the region are affiliated with luxury hotel brands, representing 31% of the total supply in the primary market.

By total supply, Wyndham Hotels & Resorts led with 10,941 units.

From 2025 onwards, about 43,100 units across 180 projects in Asia are expected to be completed, C9 Hotelworks said.

PDUs vs ECs

Last week, on Feb. 11, the Independent Electricity Market Operator of the Philippines (IEMOP) released the report, “Market Operations Highlights January 2025,” in a media briefing. They also released the monthly prices of the Wholesale Electricity Spot Market (WESM) from June 2021 to January 2025. For the purposes of brevity, I have used the comparative prices in January and June over four years. The prices show a declining trend.

In the power generation mix, coal remains the backbone of electricity production in the Philippines. Solar plus wind contributed only 2.2% of total generation in June 2022, 3.5% in June 2024, and 5.5% in January 2025 (see Table 1).

The anti-coal, pro-wind/solar environmental and business lobbies are misguided if they genuinely want the country to industrialize and create more jobs. Their advocacy to retire coal early will lead to frequent blackouts, and thus to manufacturing companies shutting down and moving to Vietnam, Indonesia, Malaysia, etc. where power supply (mainly from coal plants) keeps rising yearly and where electricity prices are low.

Also last week, on Feb. 13, the Energy Regulatory Commission (ERC) released the report, “Analysis of 2024 Power Generation Rates Yields Downtrend Trend.” They highlighted that “Between 2023 to 2024, ERC noted that the national average annual generation rate dropped by almost 10% from P7.50/kilowatt-hour (kWh) to P6.64/kWh… most areas in the Philippines, except for select regions, saw a significant cut in generation rates in 2024.”

This is good.

But while some regions on certain months have lower generation prices than Metro Manila (which is part of the Meralco franchise area), price is not the only or main criteria if we want the power sector to support sustained economic growth. Very often higher prices, like high body temperatures or fever, are just a symptom and not the cause. The main criteria or consideration should be power stability in order to avoid blackouts, to avoid using candles and gensets.

I saw data from the ERC on two important metrics that measure power stability or instability: the System Average Interruption Duration Index (SAIDI) which is measured in minutes in a year, and the System Average Interruption Frequency Index (SAIFI), or how many times in a year a power interruption occurs. The lower the indices, the better, the more stable the power supply is.

Three situations are considered: Scheduled maintenance; Power supply or grid-related outages like supply deficiency, plant tripping, transmission maintenance, etc.; and All Others which are things like vehicles hitting poles, etc. So I compared the performance of private distribution utilities (DUs) with electric cooperatives (ECs) in the same province or neighboring geographical area using the ERC’s metrics.

For Scheduled maintenance, Meralco’s SAIDI was 51 minutes while Batangas EC (BATELEC) 1’s was 257 minutes (or 4+ hours) and BATELEC 2’s was 1,386 minutes (23 hours).

For Power supply, Meralco’s SAIDI was 26 minutes while BATELEC 1’s was 2,676 minutes (47 hours or nearly two days) and BATELEC 2’s was 1,819 minutes (30 hours).

This is the main reason why many of the mayors in towns in Batangas province which are under BATELEC 1 and 2 wanted their towns to be serviced by Meralco. The price per kWh between the three power providers may be similar but the frequency and duration of blackouts is horrible. The townspeople are inconvenienced and suffer discomfort, their appliances and bulbs are damaged, and they need to use candles or gensets often, and so on. Meralco opted to help BATELEC and other ECs improve their services via technology sharing.

Several mayors also want to be out of the franchise area of Northern Davao EC (NORDECO), formerly Davao North EC (DANECO), and instead have their towns be served by Davao Light and Power Co. (DLPC).

The SAIDI in Power Supply in 2023 for DLPC was 61 minutes while that of NORDECO was 1,256 minutes (21 hours). The SAIDI in 2022 for DLPC was 31 minutes and that of NORDECO was 10,283 minutes (171 hours or seven days).

The same trend between private distribution utilities vs electric cooperatives can be found in Zambales with Subic EnerZone (SEZ) vs ZAMECO; in Cebu with VECO vs CEBECO.

I included in Table 2 North Negros EC (NONECO) because its franchise area includes my birthplace, Cadiz City. The SAIDI of NONECO is bad compared to DUs like VECO, MERALCO, or DLPC.

This column has argued in the past, and will reiterate here, that all ECs should become corporations, or their franchise areas be served by corporate DUs, monitored by the Securities and Exchange Commission (SEC) along with other public service companies like airlines, bus lines, shipping lines, water companies, etc. ECs should not be protected by a political body — the National Electrification Administration (NEA) — and occasionally subsidized by taxpayers via a higher NEA budget.

During the 3rd Ruperto P. Alonzo lecture on the “Energy Trilemma” held on Feb. 7 at the UP School of Economics (UPSE) and organized by the Program in Development Economics Alumni Association (PDEAA), there were two good speakers — Congressman Mark Cojuangco and Eric Francia, CEO of ACEN.

Mr. Cojuangco talked about the virtues of nuclear energy and Mr. Francia talked about the virtues of the retail competition and open access (RCOA) provision of the EPIRA law, among others. While ACEN is gung-ho about having a purely RE portfolio, Mr. Francia is wise enough to recognize the role of coal and gas plants in ensuring the power stability of the country.

The lecture was followed by the PDEAA alumni homecoming, also at UPSE, and we want to acknowledge and thank the National Grid Corp. of the Philippines (NGCP) for its donation, which I failed to mention in this column last week. The NGCP’s role as provider of the transmission backbone and highway between many power plants to DUs, ECs, and retail electricity suppliers is important.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

Bridgerton actors tease season four romance between Benedict and maid

Luke Thompson and Yerin Ha in a scene from Season 4 of Bridgerton.

LONDON — Bridgerton fans got a first glimpse of the hit Netflix show’s season four on Friday, which will see a romance blossom between the noble family’s second son Benedict and a servant.

At an event in London, showrunner Jess Brownell joined actors Luke Thompson and Yerin Ha to tease photos and a sneak peek video of their characters Benedict Bridgerton and maid Sophie Baek’s upcoming relationship

“I feel like we spent the first three seasons really digging into the upstairs world and getting to know the rules of the ton,” Mr. Brownell said. “So it felt right that after three seasons of doing that we could expand the world out and go downstairs.”

The Regency-era romance series is based on the Bridgerton books by Julia Quinn, with each focusing on a sibling of the Bridgerton family. The third season skipped the third book in Ms. Quinn’s series about Benedict to focus on his brother Colin and Penelope Featherington.

But the next season, still in production, shines a light on Benedict, who, long reluctant to settle down, becomes mesmerized by a mysterious “lady in silver” at his mother’s masquerade ball.

“As a character we’ve got (Benedict)… as sort of a little musical theme for most of the seasons and suddenly it’s like, let’s write a whole symphony about him and it’s really exciting,” Thompson said of his character, until now a supporting role, being the next focus of the show.

“It is going to bring a fresh energy and vibe to the show,” Ms. Ha said of the new romance.

The actors were joined by co-star Golda Rosheuvel, who portrays fan favorite Queen Charlotte. Asked what was in store for her character next season, Ms. Rosheuvel said: “I think discovering new avenues… new friendships maybe and there’s a vulnerability to her that I think will be interesting to see.” — Reuters

Bain & Co. names Manny Maceda as chair

EMMANUEL P. “MANNY” MACEDA — BAIN.COM

GLOBAL management consulting firm Bain & Co. has named Emmanuel P. “Manny” Maceda as its new chair, bolstering its leadership.

Mr. Maceda replaces long-time chair Orit Gadiesh, who has been appointed as the management consulting firm’s chair emeritus, Bain & Co. said in a statement.

Ms. Gadiesh served as chair of Bain & Co. for more than 30 years after being appointed in 1993.

Mr. Maceda was previously Bain & Co.’s Worldwide Managing Partner and Chief Executive Officer from 2018 until June 30, 2024, when he was succeeded by Christophe De Vusser.

“I’m energized by the exciting future for Bain, and I’m looking forward to supporting Christophe and our extraordinary people worldwide in delivering even more inspiring success stories with our clients,” Mr. Maceda said.

Mr. Maceda holds a Master of Science in Management from the Massachusetts Institute of Technology Sloan School of Management, a Bachelor of Science in Chemical Engineering from Illinois Institute of Technology, and an honorary Doctorate in Business Administration from De La Salle University.

Bain & Co. has a presence in 65 cities across 40 countries. The company specializes in various fields, including customer strategy, marketing, organization, operations, and information technology. — Revin Mikhael D. Ochave

AI-generated content raises risks of more bank runs, UK study shows

RAWPIXEL.COM-FREEPK

PARIS — Fake news generated by artificial intelligence (AI) and spread on social media is heightening the risks of bank runs, according to a new British study that says lenders must improve monitoring to detect when disinformation risks impacting customer behavior.

Generative AI can be used to create fake news stories saying that customer money is not safe, or memes appearing to joke about security issues, which can be spread on social media using paid adverts, said the study, published by UK research company Say No to Disinfo and communications firm Fenimore Harper.

Banks and regulators are increasingly concerned about the risks of bank runs fueled by social media, following the collapse of Silicon Valley Bank in 2023, in which depositors withdrew $42 billion in 24 hours.

Advances in AI have supercharged these risks. The G20’s Financial Stability Board warned in November that generative AI “could enable malicious actors to generate and spread disinformation that causes acute crises,” including flash crashes and bank runs.

Say No to Disinfo showed sample AI-generated content to UK bank customers and found that a third were “extremely likely” to move their money after seeing it, with a further 27% “somewhat likely.”

“As AI is making disinformation campaigns easier, cheaper, quicker and more effective than ever before, the emerging risk to the financial sector is rapidly growing but often overlooked,” the report said, noting that online and mobile banking meant people can move money in seconds.

The study estimated that for every 10 pounds ($12.48) spent on social media adverts to amplify the fake content, as much as 1 million pounds of customer deposits could be moved.

The estimate was calculated by using average deposits held by UK customers, the cost of social media adverts, and estimates for how many people would see them.

Banks need to monitor media and social media mentions, and such monitoring must be integrated with withdrawal monitoring systems to identify when malicious information is affecting customer behavior, the researchers said.

Asked about the study, Revolut’s head of financial crime, Woody Malouf, said the London-based fintech conducts real-time monitoring for emerging threats among its customers and “across the broader ecosystem.”

“Whilst we believe an industry event like this is unlikely, it is still possible, so it’s essential that financial institutions are prepared,” he said, adding that social media platforms must play a bigger role in stopping threats.

Other financial institutions contacted by Reuters, including NatWest and Barclays, declined to comment or did not respond to requests for comment.

While regulators have expressed concern about AI’s overall impact on financial stability, banks are broadly optimistic about the technology’s impact. — Reuters

Premium real estate booms in Makati despite Metro Manila market trends

PHILSTAR FILE PHOTO

Conclusion

THIS is the conclusion of my piece on Makati Central Business District (CBD). It appears that the premier financial hub is isolated from the condominium oversupply plaguing some sub-markets in Metro Manila. Makati CBD remains the preferred hub for major business process outsourcing (BPO) firms and large multinational corporations (MNCs), which is why it is no surprise that the area registers the lowest office vacancy rate in the capital region.

Makati CBD is also home to the most expensive condominium units in Metro Manila, ranging from upper mid-income to ultra-luxury residential developments. Investors in Makati CBD prefer larger unit cuts, open spaces, world-class architectural designs, top-notch concierge services, and high-end amenities. For this reason, we believe residential developers will continue launching projects with these features well beyond 2025.

HIGHER-PRICED CONDOMINIUMS PREFERRED BY AFFLUENT MARKET
In Metro Manila, demand for premium residential units is not only making a comeback but is also rebounding significantly. Luxury and ultra-luxury condominium projects typically start at P20 million ($357,000) per unit. Over the past 12 to 24 months, we have seen condominium units breaking price barriers. Some are priced between P700,000 and P900,000 per square meter ($12,500 and $16,100 per square meter), with total contract prices (TCP) ranging from P200 million to about P300 million ($3.6 million to $5.4 million) per unit. Despite these prices, projects in primary business hubs, including Makati CBD, continue to record strong take-up rates. We attribute this demand to an affluent and discerning market seeking residential units with top-tier amenities and strong capital appreciation potential.

Colliers believes the high-end market in Metro Manila remains strong, as it attracts a cash-rich consumer base. During the height of the pandemic in 2020 and 2021, while prices in the affordable to lower mid-income residential segments of the secondary market declined, demand and prices in the upper mid-income to ultra-luxury segments remained stable. As the Philippine economy rebounds and Filipino investors’ affluence and purchasing power improve, we expect even greater interest in these high-priced residential units, especially in key business districts that continue to attract large Filipino and multinational firms as locators.

UPGRADED AMENITIES TO STOKE DEMAND FROM A DISCERNING MARKET
As more upscale projects launch in Metro Manila, Colliers sees a rise in more discerning buyers. Beyond capital appreciation potential, investors and end users are drawn to upscale facilities, high-quality concierge services, and the advantage of being in a master-planned community. Colliers encourages developers to further innovate and differentiate their amenities to gain a competitive edge in the thriving luxury residential segment.

We also encourage developers to integrate sustainable features such as sensor lighting, solar panels, occupancy sensors, LED lights, and rainwater harvesting systems. In our view, adopting green and sustainable features will be a key factor in attracting consumers to invest in a condominium project.

In addition to round-the-clock security, these properties offer well-equipped gyms, resort-style pools, ample parking spaces, and high-quality interiors. These high-end residences are also within walking distance of major shopping hubs, which house a mix of popular local and global retail brands catering to residents’ refined preferences.

LIVE-WORK-PLAY-SHOP LIFESTYLE AND THE 15-MINUTE COMMUNITY RULE
Overall, we see continued demand for prime residential projects due to the convenience, accessibility, and exclusivity they provide to unit owners and renters. These are some of the reasons why business districts like Makati CBD continue to attract consular officials and high-ranking expatriates employed by multinational and foreign outsourcing firms. Upper mid-income, upscale, luxury, and ultra-luxury residential units in Metro Manila’s primary business hubs remain a cut above the rest.

I want to highlight that these residential projects are well-maintained, have occupancy rates higher than the Metro Manila average, and offer hotel-like amenities and services — major factors driving strong take-up rates, whether for lease or for sale.

WHAT’S IN STORE FOR MAKATI CBD INVESTORS?
With premium office buildings, new and upscale residential units, expansive parks, and refurbished retail spaces, there is no doubt that Makati CBD remains a top investment destination for both local and foreign investors. With residential, retail, and office vacancies below the Metro Manila-wide average, Makati CBD continues to be a business hub worth watching in the coming years. Notably, new projects are already lined up, which should further excite investors.

Makati CBD is an attractive business destination poised for redevelopment — one that will further transform the district’s property landscape.

 

Joey Roi Bondoc is the director and head of Research of Colliers Philippines.

joey.bondoc@colliers.com

3 statistical stuff-ups that made everyday items look healthier (or riskier) than they really are

FREEPIK

Conducting scientific studies is never easy, and there are often major disasters along the way. A researcher accidentally spills coffee on a keyboard, destroying the data. Or one of the chemicals used in the analysis is contaminated, and the list goes on.

However, when we read the results of the study in a scientific paper, it always looks pristine. The study went smoothly with no hiccups, and here are our results.

But studies can contain errors, not all of which independent experts or “peer reviewers” weed out before publication.

Statistical stuff-ups can be difficult to find as it really takes someone trained in statistics to notice something wrong.

When statistical mistakes are made and found, it can have profound impacts on people who may have changed their lifestyle as a result of the flawed study.

These three examples of inadvertent statistical mistakes have had major consequences for our health and shopping habits.

1. DID YOU THROW OUT YOUR BLACK PLASTIC SPOONS?
Late last year, I came across a news article about how black plastic kitchen utensils were dangerous as they could potentially leak toxic flame-retardant chemicals into your food.

Being a natural sceptic, I looked up the original paper, which was published in the journal Chemosphere. The article looked genuine, the journal was reputable. So — like perhaps many other people — I threw out my black plastic kitchen utensils and replaced them with silicone ones.

In the study, the authors screened 203 household products (about half were kitchen utensils) made from black plastic.

The authors found toxic flame retardants in 85% of the products tested, with levels approaching the maximum daily limits set by the Environmental Protection Agency in the United States.

Unfortunately, the authors made a mistake in their calculations. They were out by a factor of 10. This meant the level of toxic chemicals was well under the daily safety limits.

In recent weeks, the authors apologized and corrected their paper.

2. DID YOU AVOID HRT?
A landmark study raised safety concerns about hormone replacement therapy or HRT (now also known as menopausal hormone therapy). This highlights a different type of statistical error.

The Women’s Health Initiative (WHI) study involved 10,739 postmenopausal women aged 50-79 recruited from 40 clinical centers in the US. It compared the health of women randomized to take HRT with those who took the placebo. Neither the researchers nor the women knew which treatment had been given.

In their 2002 paper, the authors reported higher rates of invasive breast cancers in the HRT group. They used a unit called “person-years.” Person-years is a way to measure the total time a group of people spends in a study. For example, if 100 people are in a study for one year each, that makes 100 person-years. If someone leaves the trial after only six months, only that half-year is counted for them.

The authors showed a rate of 38 invasive breast cancers per 10,000 person-years in the HRT group, compared to 30 per 10,000 person-years in the placebo group. This gives a rate ratio of 1.26 (one rate divided by the other).

This fairly large increase in breast cancer rates, also expressed as a 26% increase, caused widespread panic around the world, and led to thousands of women stopping HRT.

But the actual risk of breast cancer in each group is low. The rate of 38 per 10,000 person-years is equivalent to an annual rate of 0.38%. With very small rates like this, the authors should really have used the rate difference rather than the rate ratio. The rate difference is one rate subtracted from the other, rather than divided by it. This equates to an annual increase of 0.08% breast cancer cases in the HRT group — much more modest.

The authors of the 2002 paper also pointed out that the 26% increase in the rate of breast cancer “almost reached nominal statistical significance.” Almost is not statistical significance, and formally, this means there was no difference in breast cancer rates between the two groups.

In other words, the difference between the two groups could have happened by chance.

The authors should have been more careful when describing their results.

3. DID POPEYE’S SPINACH CHANGE YOUR MEALS?
Cartoon character Popeye is a one-eyed, pipe-smoking sailor with mangled English, in love with the willowy Olive Oyl. He is constantly getting into trouble, and when he needs extra energy, he opens a can of spinach and swallows the contents. His biceps immediately bulge, and off he goes to sort out the problem.

But why does Popeye eat spinach?

The story begins in about 1870, with a German chemist, Erich von Wolf or Emil von Wolff, depending on which version of events you read.

He was measuring the amount of iron in different types of leafy vegetables. According to legend, which some dispute, he was writing the iron content of spinach down in a notebook and got the decimal point wrong, writing 35 milligrams instead of 3.5 milligrams per 100 gram serve of spinach. The error was found and corrected in 1937.

By then the Popeye character had been created and spinach became incredibly popular with children. Apparently, consumption of spinach in the US went up by a third as a result of the cartoon.

This story had gained legendary status but has one tiny flaw. In a 1932 cartoon, Popeye explains exactly why he eats spinach, and it’s nothing to do with iron. He says in his garbled English:

“Spinach is full of Vitamin A. An’tha’s what makes hoomans strong an’ helty!”

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Adrian Esterman is a professor of Biostatistics and Epidemiology at the University of South Australia. He receives funding from the NHMRC, MRFF, and ARC.