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PSBank net income rises

PSBank
PHILIPPINE Savings Bank booked a higher net income in the first quarter.

PHILIPPINE SAVINGS Bank (PSBank) saw its net income climb in the first quarter, driven by interest income growth as well as expense management.

In a regulatory filing on Tuesday, the Ty-led thrift lender said it booked a P680.7-million net profit in the first three months of the year, up 10.3% from P617 million tallied in the same period in 2018.

Interest income grew 10.3% to P34.33 billion in the January-March period.

Total loans stood at P159.3 billion, up 6.8% from P149.2 billion in the comparable year-ago period. PSBank attributed this growth to its car and housing loan portfolios.

Meanwhile, the bank’s net non-performing loans ratio was steady at 3.1%.

On the funding side, total deposits marginally declined by 0.6% to P185 billion from the P186 billion posted in the comparable year-ago period as the lender rebalanced its funding strategy focusing on low-cost funds, retail clients and alternative sources, PSBank said.

With this, low-cost deposits improved by 6.6% to P55 billion in the first quarter from P51.6 billion last year.

Other operating income however declined 23.81% to P290.87 billion in the first quarter from P381.74 million the previous year. This was attributed to lower gains on foreclosure and sale of chattel mortgage at P20.79 million from P147.18 million in the January-March period last year.

Excluding provisions for impairment, other operating expenses reached P2.15 billion in the three months ended March, down 6.45% from P2.3 billion last year.

Overall, PSBank’s total assets grew 4.9% year-on-year to P236.2 billion from P225.1 billion.

Capital adequacy ratio stood at 18.4%, while common equity Tier 1 ratio was at 15.9%, both well above the central bank’s regulatory minimum.

“The bank’s commendable double-digit growth puts us on track of out 2019 targets, and is a deliberate result of firm commitment to reinforce our sales efforts, improve on operating efficiencies, digitize products and channels and consistently provide exceptional customer experience,” PSBank President Jose Vicente L. Alde was quoted as saying in the disclosure.

PSBank, the second-largest thrift bank in asset terms, completed its P8-billion stock rights offer last January, offering 184.7 million common shares priced at P56 apiece.

Local debt watcher Philippine Ratings Services Corp. affirmed its PRS Aaa (corp.) issuer rating on PSBank last month, indicating continued growth in core interest income and strong market position.

To date, the lender has a distribution network of 250 branches and over 570 automated teller machines located nationwide.

PSBank shares closed at P57.45 apiece on Tuesday, down P1.05 or 1.79% from the previous finish. — K.A.N. Vidal

Candon music festival mixes classical and pop

By Susan Claire Agbayani

IT HAS BEEN the dream of Ryan Cayabyab, National Artist for Music, that Filipinos become less “dependent on imported songs and imported music.” He envisions a huge collection in the future of “music literature by young people in each community that we touch.”

He deems it very important, an advocacy.

“Kids in their locale must be able to write songs for their community, in their language, in the way they express themselves,” he said during a press conference for the first Candon Music Festival, of which he is Festival Director. The festival will be held from May 23-25 at the Bagani Campo Concert Grounds in Candon, Ilocos Sur.

The festival is the brainchild of Eric D. Singson, Representative of the 2nd District of Ilocos Sur.

Mr. Singson said, “I attended (the Montreal) music festival — a one-week music festival — with food and music and art, all in one. I thought that maybe we could also do things like that in the Philippines. “We thought of organizing a music festival with (the help of) our National Artist. We are now ready to take off with this,” he said.

It will be the first music festival of its kind north of Manila. It will feature many bands and orchestras with a different set of performers, both classical and pop, nightly.

When Mr. Cayabyab was approached for the first time by Manila Symphony Orchestra (MSO) cellist Christian Geo Molina about the festival, he was admittedly sceptical due to the musician’s youth. But when Mr. Molina mentioned that musicians like the Philippine Philharmonic Orchestra’s Jorge “Joy” Sababan were among those helping organize the festival, he realized that Mr. Molina was dead serious. He found it interesting that he was being invited to be the director of a festival where classical music was going to be played. “Our objective is to inspire young kids in our community. And we cannot think of anything else to do. The presence of good musicians like our National Artist will really give a big push for our program in Ilocos Sur,” said Mr. Singson.

They intend to make it an annual music festival in Ilocos Sur. “We are also holding this musical festival to promote our province as a tourist destination,” said Mr. Singson.

“I said to Ryan, we want to do something that people will remember and we can do it yearly to attract people to come. We are also helping the country promote music in the province, in far-flung areas where in areas where there are no skilled musicians,” he said.

TEACHING THE KIDS
The Candon festival is rooted in a project that is in synergy with Mr. Cayabyab’s advocacy of bringing music to the youth in the provinces, since it is based on a foundation set up to promote music in Candon.

“We organized a foundation to help young people in our community in Candon City,” said Mr. Singson, referring to the MDS Heritage Foundation, Inc. “(Through the years) we sent some young artists/musicians to St. Paul University to take up Music.” Eight of these musicians eventually graduated and are not teaching the children in the city.

The first time that they held this kind of training program, only 20 youngsters enrolled. “Now we have 300 young kids. We feel that if we can show them those who really play well, they will be encouraged to excel in their dreams of becoming a musician,” Mr. Singson said.

“The ones (who were sent to study at St. Paul’s are) now training the 300 young students to play classical music,” he said.

Mr. Cayabyab is gratified that Candon musicians are using their expertise “to help shape a community that would appreciate music.”

THE PERFORMERS
Among the performers in the festival is the MSO which is preparing an overture entitled “Ilocandia” which includes songs such as “Pamulinawen” and “Manang Biday,” among others.

Aside from the MSO, also performing over the three days of the festival are the Philippine Cello Ensemble, tenor Ronan Ferrer, the Candon City Chamber Orchestra, the Candon City Children’s Choir, the Candon City Chorale, marimba player Aimee Mina de la Cruz, the Cardona Youth Symphonic Band, Kabataang Gitarista, and the Ryan Cayabyab Singers, Banda ni Kleggy, Deck of Cards, IMAGO, Noel Cabangon, Spongecola, 6Cyclemind, Gloc-9, Gracenote, Moonstar 88, Pinoy Brass, Tita Baliw, Davey Langit, DJ Patty Tiu, Jammers, Orange & Lemons, Rivermaya, soprano Regina Carabiles, soprano Jedessa Calacday, Melissa Nartate, Joy Allan de la Cruz, and DJ Lester Paul Vano.

Mr. Cayabyab added Ilocano musicians Davey Langit and Noel Cabangon to the roster of performers who will perform Ilocano songs they themselves wrote.

“My idea is that in the succeeding years, there would be educational workshops prior to the festival; creative music writing workshops for instance. Just like what I do in my other… events around the country,” he said.

The music festival ground is almost three hectares and can accommodate about 7,000 people.

“We do not know how many will come. But we want the young people to come. But before they drink the bitter pill, of course, they have to eat delectable appetizers… But it’s in the reverse; our appetizers are classical,” said Mr. Cayabyab.

The concerts start at 6 p.m. and go on til midnight daily for three consecutive nights. There will be different genres on every performance night.

Mr. Cayabyab is overjoyed that the fiesta has classical music as its base; started by musicians who trained the young people. “So I know where the heart is coming from,” he said.

“So I told myself, I like this because there’s some kind of initiative. I’ve been looking for LGUs that are initiating cultural programs, or arts and culture festivals in their area. So excited ako kasi wow, there’s something happening there in the North!”

For details, visit facebook.com/CandonMusicFestival.

PCC approves US firm’s deal to buy stake in hotdog maker Frabelle

THE Philippine Competition Commission (PCC) has approved US-based Johnsonville International, LLC’s acquisition of a majority stake in local hotdog maker Frabelle Corp.

In a Commission decision approved on May 7, the country’s antitrust body said Johnsonville’s purchase of 51% of the issued and outstanding capital stock in Frabelle does not lead to substantial lessening of competition in the domestic market.

Johnsonville, the acquiring entity, is a US company engaged in the manufacturing, packaging, and distribution of fresh, chilled, and frozen meat products. It distributes sausages in the Philippines.

Frabelle, on the other hand, is a homegrown firm engaged in the manufacturing, packaging, and distribution of fresh, chilled and frozen processed meat products, including hotdogs and sausages under the brand name “Frabelle.”

PCC found that Frabelle’s production volume for sausages is “negligible” in the local market, that even if it is combined with Johnsonville’s production volume it is unlikely to significantly affect the market structure.

It also noted that the deal also has a minimal effect on the local market for hotdogs and sausages.

“As both firms also deal with cold storage warehousing, the transaction was found to have no ability or incentive to engage in input or customer foreclosure in the market for cold storage in the Caloocan, Malabon, Navotas, and Valenzuela area,” the PCC said in a Tuesday statement.

The PCC, the country’s anti-trust body, is mandated under the Philippine Competition Act to review mergers and acquisitions to ensure that these deals will not harm the interest of consumers.

To date, PCC has received 182 merger transactions by local and international companies. Of this, 169 were approved while one has been blocked. — Janina C. Lim

Prudential tops non-life firms in net premiums

PRUDENTIAL Guarantee & Assurance Inc. (PGA) continued to top non-life insurance companies in terms of net premiums written in 2018, data from the Insurance Commission (IC) showed.

PGA maintained its top rank as it recorded a premium income of P5.18 billion last year, according to a list released by the IC on Tuesday that ranks non-life insurance companies based on net premiums, assets, net worth and net income, based on unaudited quarterly statistics ending Dec. 31 submitted by the firms.

Charter Ping An Insurance Corp. also remained at second place with net premiums of P3.90 billion, followed by Malayan Insurance Co., Inc. which stayed at the third spot with P3.77 billion.

Meanwhile, Pioneer Insurance & Surety Corp. took fourth place with a net premium income of P3.09 billion, overtaking last year’s fourth-ranked BPI/MS Insurance Corp., which ended the year at fifth place with P3.04 billion in net premium written.

An insurer’s net premium income is premiums written on direct business plus assumed premiums and less cessions and retrocessions.

Meanwhile, in terms of assets, Yuchengco-led Malayan Insurance retained the top spot with P34.28 billion. Pioneer Insurance also placed second again this year with assets worth P31 billion.

Ranking third this year was PGA with P14.41 billion in total assets, switching places from 2017’s list with BPI/MS Insurance, which held P12.8 billion worth of assets.

Charter Ping An stayed at fifth place this year with P11.4 billion.

According to the IC, the combined assets of the top five companies accounted for 44.13% of the total assets of the non-life insurance industry in 2018.

On the other hand, in terms of net worth, Pioneer Insurance kept the first rank with P15.39 billion. Malayan Insurance, despite a reported decline in net worth to P4.24 billion this year from P6.9 billion in 2017, also remained at second place.

BPI/MS Insurance climbed one place from its 2017 finish to land the third spot this year with P2.75 billion. At fourth place was Standard Insurance Co. with a net worth of P2.74 billion, while Philippines First Insurance Co., Inc. slid two places from its 2017 ranking to finish at fifth place this year with P2.45 billion.

Ranked based on 2018 net income, BPI/MS Insurance continued to dominate the industry with P453.83 million, while CARD Pioneer Microinsurance, Inc. climbed by two places to take the second spot with P395.15 million.

Pioneer Insurance was at third place with P346.75 million, while PGA slipped two places to rank fourth with a P264.88-million net income. Malayan Insurance was at fifth place with P195.27 million. — R.J.N. Ignacio

Venice Biennale’s The Spectre of Comparison comes home to PHL

THE Spectre of Comparison, showcased at the 2017 Philippine Pavilion at the 57th International Art Exhibition of the Venice Biennale, will open in Manila on May 23 at the De La Salle-College of Saint Benilde (DLS-CSB) Museum of Contemporary Art and Design (MCAD). It features the works of Filipino artists Lani Maestro and Manuel Ocampo.

The Spectre of Comparison, inspired by the Spanish line “el demonio de las comparaciones,” from the novel Noli Me Tangere by the National Hero Jose Rizal, is an outline for the practices of the two artists. The puzzling phrase summarizes the experience of Rizal’s protagonist, Crisostomo Ibarra, when he gazes out to look at the Botanical Garden of Manila while at the same time remembering the gardens of Europe.

The showcase delves on the tainted viewpoints when one cannot help but juxtapose two different geographical areas.

Though both Maestro and Ocampo have resided abroad, they have maintained active engagements with the Philippines throughout their careers.

Manila-born Maestro acquired her Bachelor of Fine Arts degree in University of the Philippines (UP) Diliman, and, after migrating to Canada in 1982, earned her Master of Fine Arts from the Nova Scotia College of Art and Design (NSCAD) in Halifax, Canada. She received an honorary doctorate in Fine Arts from NSCAD University in 2018. Her multimedia pieces dwell on the topic of minimalist art itself and its connotations of emptiness.

Ocampo, a graduate of Fine Arts in UP Diliman, has been a constant presence in the international art scene for over two decades, and has built up a reputation for tacking revered icons of society. He has been awarded with accolades from the US-based National Endowment for the Arts, the American Academy in Rome’s Rome Prize in Visual Arts, and Reader’s Digest’s Artists at Giverny Program. Now based in Manila, he has immersed himself into the local art scene, not just an artist but as a curator.

Curated by MCAD Director Joselina “Yeyey” Cruz, The Spectre of Comparison will run until July 20.

MCAD is located at DLS-CSB School of Design and Arts Campus, Dominga St., Malate, Manila.

Global-Estate Resorts grows income by 41%

GLOBAL-ESTATE Resorts, Inc. (GERI) reported a 41% growth in its net income attributable to parent during the first quarter of 2019 driven by higher rental income and hotel operations, and sustained sales of its residential projects.

In a regulatory filing on Tuesday, the leisure and tourism arm of Megaworld Corp. said it booked P447.48 million in attributable profit during the period, versus the P338.5 million recorded in the same period last year.

Revenues, excluding non-recurring gains, rose 20% to P1.7 billion during the first quarter from P1.4 billion booked in the same period last year.

“We believe that we have made the right investments to secure our rental income early on as this is now providing stability in GERI’s earnings, which is evident in our results the past several years. We plan to further solidify this side of the business as we add more investment properties across our lineup of tourism townships and integrated lifestyle communities in the country,” Monica T. Salomon, president of GERI, said in a statement.

Rental income more than doubled to P180 million during the three-month period, thanks to the increase in occupancy and additional leasable area with the completion of new office spaces. Specifically, this was driven by revenues from the Southwoods Office Towers and the Southwoods Mall, its first full-scale mall, both located in Laguna.

Hotel operations generated 78% higher revenues to P171 million, as it opened new hotels in Boracay and Batangas last year. GERI is set to open the 450-room Belmont Hotel Boracay this year.

Residential sales also grew by 5% to P1.24 billion from P1.18 billion last year. The company launched new residential developments in the Twin Lakes and Southwood City last year.

Currently, GERI has five tourism estates and two integrated lifestyle communities across the country that covers about 3,000 hectares. These are the Twin Lakes in Laurel, Batangas; Southwoods City in Biñan, Laguna and Carmona, Cavite; Alabang West in Las Piñas City; Boracay Newcoast in Boracay Island, Aklan; Sta. Barbara Heights in Sta. Barbara, Iloilo; Eastland Heights in Antipolo, Rizal; and The Hampton Caliraya in Lumban-Cavinti Laguna.

Shares in GERI went down by 1.49% or 0.02 centavos to close at P1.32 each at the stock exchange on Tuesday. — Vincent Mariel P. Galang

Celebrating children’s literature

A PROJECT by a new small press and curatorial platform Comma and independent bookstore Kwago, “A Curated Shelf” creates a space to understand the many ways we read, write and publish.

To be launched at the Komura; Book Fair on May 18, 3-4 p.m., the second curated shelf will feature guest curator Ani Almario. Her selection of 15 publications are children’s books that she would require her own children to read.

In the second curated shelf, Ms. Almario addresses questions on literature and the printed word but ultimately reflects on her personal relationship with books and the chosen stories. She features the works of Maurice Sendak, Neil Gaiman and Charles Vess, Rene Villanueva and Ibarra Crisostomo, and May Tobias Papa and Pepper Roxas in her selection.

“These books are about my concerns, my politics and thoughts as of late. They reflect what I think are the stories that have to be told to children TODAY. I am happy that not all choices ended up grim and determined, as I also believe in children’s literature’s power to preserve happiness and wonder,” Ms. Almario wrote in her curatorial notes.

Ms Almario is the school director and co-founder of The Raya School, a progressive institute for young children emphasizing national pride and passion for learning.

She is the vice-president of Adarna House, the publisher at the forefront in producing local children’s books and educational materials. She is also Secretary-General of the Philippine Board on Books for Young People and president of the Book Development Association of the Philippines.

In her notes, she shares a glimpse behind the history of her education and line of work: “One of my most vivid and treasured memories as a child has me, around 10 or 11, with my legs propped up on the arms of our butaka on our terrace, reading Little Women while eating pastillas that my tita made. Growing up, there was no better way to spend afternoons after school, than to curl up with a book.”

Along with “A Curated Shelf,” Komura; is presenting pockets of storytelling, focusing this year on highlighting women creators, and women in tech and film.

Komura; will be held at Warehouse Eight on May 18, 11 a.m. to 11 p.m. Regular tickets cost P200; P120 for students. Children 10 years old and below can come for free. Children will get zines and coloring books when they sign up to “A Curated Shelf.” At the program, Adarna books are available for sale.

Fed’s Williams says policy makers need to better prepare for lower interest rates

TORTUROUSLY SLOW recoveries from recessions and low inflation are here to stay unless policy makers can get a better grip on how to stabilize the global economy in an era of lower interest rates, a top Federal Reserve policy maker said on Tuesday.

“Experience teaches us that it is better to prepare for the future than wait too long,” New York Fed President John Williams said in remarks prepared for delivery at a policy conference in Zurich, Switzerland. “Ultimately, failure to prepare often means preparation for failure.”

Lower birthrates are keeping population growth down in the world’s wealthier economies and technological advancement has shifted down to more normal levels. Each trend is capping how much economies can grow, Williams said.

The lower growth leads to less investment and aging populations in those advanced economies increases saving. Lower demand for and a higher supply of savings has reduced the “neutral” level of interest rates around the world that would, in theory, not restrict or heat up the economy.

Those factors keep rates close to zero, where they lose their potency to respond to a recession, the economist argued, adding that there is no sign that “neutral” rates will go back to previously normal levels absent a change in demographics or a scientific or technological breakthrough. The Fed has set rates in the United States between 2.25-2.50%, but they are lower and in some cases even negative in places, such as Japan and Europe.

Williams, who earlier in his career was a researcher at the San Francisco Fed, is known for helping develop estimates of what the “neutral” interest rate might be. Now, he is pushing to encode some of that thinking in how the Fed approaches inflation from now on.

As part of a broad policy review, Williams has been advocating for the Fed to systematically respond to periods of tepid inflation by keeping US interest rates “lower for longer.”

But any alternatives to the Fed’s current approach could be controversial, raising questions about whether the Fed can actually live up to even more complex commitments to meet a 2% inflation target it has frequently missed.

The Fed’s preferred measure of inflation, the “core” personal consumption expenditures (PCE) price index excluding the volatile food and energy components, slowed to an annual rate of 1.6% in March.

“Investors view these low inflation readings not as an aberration, but rather a new normal,” Williams said. — Reuters

How inclusive is the internet in the Philippines?

How inclusive is the internet in the Philippines?

How PSEi member stocks performed — May 14, 2019

Here’s a quick glance at how PSEi stocks fared on Tuesday, May 14, 2019.

 

Duterte to visit Japan in late May

PRESIDENT Rodrigo R. Duterte is set to visit Japan from May 29 to 31 on a Prime Minister Shinzo Abe’s invitation, Cabinet officials said Tuesday.

In a briefing at the Palace, the President’s Spokesman Salvador S. Panelo confirmed that Mr. Duterte is set to visit Japan this month. “Sure na pupunta siya roon (the trip is confirmed),” he said.

Asked for more details after the briefing, Mr. Panelo told reporters: “What I know is that the invitation was personally carried here by the representatives of the Prime Minister. According to what I heard also is that when the President accepted that, the representatives of the Prime Minister came here to thank [Mr. Duterte].”

He also said the Palace is “hoping” to sign some deals with the Japanese government.

“I think May 29-31,” Trade Secretary Ramon M. Lopez said in a phone message to BusinessWorld when asked about the exact dates of the President’s visit.

He said there will be a “bilateral” meeting, and “meetings with Japanese corporations to relay their expansion plans.”

Mr. Lopez added that the “business to business (B2B) proposals” are “still being discussed.”

Mr. Panelo said the President’s visit to Tokyo, which will be his third since 2016, is expected to “improve” the trade relationship between the two countries.

According to DTI data, two-way trade volume between the Philippines and Japan was $20.02 billion in 2018, with exports at $9.47 billion and imports at $10.5 billion.

The DTI also noted that last year, Japan was the Philippines’ “second major trading partner (out of 221), third export market (out of 211), and third import supplier (out of 198).”

Mr. Duterte is also scheduled to deliver a keynote speech on May 31 at the 25th International Conference on the Future of Asia in Tokyo organized by the newspaper and media group Nikkei, Inc., according to the Nikkei website.

Nikkei said the Future of Asia is an “international gathering where political, economic and academic leaders from the Asia-Pacific region offer their opinions frankly and freely on regional issues and the role of Asia in the world.”

“Held by Nikkei every year since 1995, it is considered one of the most important global conferences in Asia,” the organizer also said. — Arjay L. Balinbin

NEDA sees rice tariffs exceeding P10 billion quota for RCEF

THE NATIONAL Economic and Development Authority (NEDA) said it is expecting more than the authorized P10 billion total to be collected from rice import tariffs under the Rice Tariffication Law, with the excess to be used to help farmers diversify into other crops.

In a mobile message, NEDA Undersecretary Rosemarie G. Edillon said NEDA is still in the process of finalizing its estimates of total revenue from rice tariffication this year.

The Rice Tariffication Law cam into force on March 5. Its provisions include the allotment of P10 billion for the Rice Competitiveness Enhancement Fund (RCEF) which will be used to assist farmers in the form of mechanization, credit, education and seed.

“We are still finalizing our estimates. But we do expect it to be higher than P10 billion. The law stipulates that the excess of P10 billion will go back to assist farmers diversifying into other crops,” Ms. Edillon said.

“Assistance for diversification is not in the RCEF. Funds for this will come from the excess revenue,” Ms. Edillon added.

Ms. Edillon declined to give initial estimates of revenue from tariffs.

The Department of Agriculture (DA) has been advanced P5 billion from the re-enacted 2018 Budget pending the generation of revenue for the RCEF proper, NEDA Assistant Secretary Mercedita A. Sombilla has said.

Another P5 billion will be given to DA in the third quarter to complete the P10 billion RCEF for the year, according to Ms. Sombilla.

Mayroon nang napaunang P5 billion (The first P5 billion has been released). About P1 billion out of that has to be given to the farmers. DA is now trying to allocate some parts of it to the various agencies who are supposed to receive the RCEF,” Ms. Sombilla said in a briefing late last month.

Kinakausap na namin ang DA (We’ve spoken to the DA). As much as possible, (it needs to) find measures to allocate some money to PhilMech, PhilRice, and to the training institutes which should be receiving money from RCEF,” according to Ms. Sombilla, referring to the various agencies in charge of farm mechanization and rice research. — Reicelene Joy N. Ignacio