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Converge Q3 income jumps to P2.92B, capex guidance lowered

CONVERGE ICT

LISTED fiber internet provider Converge ICT Solutions, Inc. saw its attributable net income for the third quarter (Q3) increase by 40.4% to P2.92 billion, driven by higher revenues.

For the July-to-September period, Converge’s gross revenues grew by 17.2% to P10.42 billion from P8.89 billion a year ago, the company’s financial statement showed.

Broken down, revenues from its residential business climbed by 16% to P8.81 billion, while enterprise business registered a 25% increase to P1.61 billion.

Gross expenses, on the other hand, went up by 12.1% to P6.13 billion from P5.47 billion in the previous year.

“This sustained upward growth trend is reflective of our effort to make internet access more affordable and inclusive for a broader segment of the market,” Converge Chief Executive Officer and Cofounder Dennis Anthony H. Uy said.

“We are encouraged that our initiatives continue to bear fruit, with our partnerships with tech companies empowering us to strengthen our capabilities and our projects with the government contributing to bridge the digital divide,” he added.

For the nine months ending in September, Converge’s attributable net income improved by 29% to P8.21 billion compared to the P6.37 billion reported last year.

Revenues were higher by 14.1% to P29.9 billion from, driven by the “consistently strong performance of its residential, enterprise, and wholesale businesses.”

For the January-to-September period, the residential business accounted for P25.4 billion in the company’s revenues, up 13.2%.

“For the remainder of the year, our focus is to continue exploring innovative ways to enhance satisfaction across our diverse customer base,” Converge Chief Operations Officer Jesus C. Romero said.

As of the end of September, the company said it had a total of 2.46 million subscribers, comprising 2.22 million postpaid subscribers and 241,848 prepaid subscribers.

For its enterprise business, revenues rose by 19% to P4.5 billion, as all segments registered double-digit growth during the period, including the wholesale segment which remained strong with 16.6% growth year on year.

“We’re encouraged by the steady rally of the company. With this, all signs point us hitting the 12-14% revenue guidance for 2024,” Converge President and Cofounder Grace Y. Uy said.

DELAYED EXPANSION ACTIVITIES
The company’s capital expenditure (capex) for the first nine months ended at P7.5 billion, Converge Chief Finance Officer Robert A. Yu said during a briefing.

“We expect to spend less than what we had initially guided due to the constant rains and floods during the latter half of the year, delaying some of our port rollouts and expansion activities,” he said.

“From P15 billion-17 billion, we now expect to only spend about P11 billion-13 billion, with the difference getting delayed to next year,” he added.

In October, Converge announced its partnership with streaming service Netflix to offer internet and Net-flix entertainment plans.

The new Converge Netflix bundle will be offered to its existing FiberX customers.

At the local bourse on Wednesday, shares in the company climbed by 3.01% to close at P16.44 each. — Sheldeen Joy Talavera

LT Group profit rises to P7.03 billion, driven by banking, liquor segments

PHILSTAR FILE PHOTO

LUCIO C. TAN-LED conglomerate LT Group, Inc. recorded a 12.5% increase in its third-quarter attributable net income to P7.03 billion from P6.25 billion last year, led by its banking and liquor segments.

Third-quarter revenue improved by 12.2% to P34.03 billion from P30.33 billion last year, LT Group said in a recent regulatory filing on Wednesday.

For the first nine months, LT Group saw a 3% increase in attributable net income to P19.82 billion from P19.25 billion in 2023. Revenue rose by 12.8% to P95.16 billion versus P84.33 billion a year ago.

Among segments, Philippine National Bank (PNB) accounted for P8.44 billion, or 43% of the nine-month income, followed by the tobacco business at P7.91 billion, or 40%.

The liquor business, led by Tanduay Distillers, Inc. (TDI) and Asia Brewery, Inc. (ABI), contributed P1.51 billion and P714 million, respectively, or 8% and 4% each.

Eton Properties Philippines, Inc. shared P497 million, or 2%, Victorias Milling Co. contributed P277 million, or 1%, and other income reached P478 million, or 2%.

For the banking segment, PNB’s net profit under a pooling method rose by 11% to P15.06 billion.

Gross interest income grew by 15% to P50.13 billion, while gross interest expenses climbed by 28% to P13.65 billion. Net interest rose by 10% to P36.48 billion.

The tobacco business, led by PMFTC, Inc., saw a 12% decline in net income to P7.94 billion. PMFTC’s cigarette volume dropped by 12% to 15.8 billion sticks, while overall industry volume fell by 5% to 30.4 billion sticks.

“These declines were primarily attributed to consumer affordability challenges, rising illicit trade, and the increasing popularity of vaping products,” LT Group said.

For the liquor business, TDI recorded a 31% increase in net income to P1.51 billion. Liquor and bioethanol volumes rose by 6% and 1%, respectively..

Revenue climbed by 15% to P24.61 billion, while the cost of sales rose by 12% to P21.05 billion.

The nationwide market share for TDI’s distilled spirits fell to 32% in September from 32.6% in the same month last year. TDI has a 70.7% market share in Visayas and a 79.7% share in Mindanao.

In October, TDI sold its investment in Asian Alcohol Corp. to Prior Holdings Corp. for P1.8 billion, payable with interest over a four-year period with an upfront payment of P480 million.

ABI recorded a 59% jump in net income to P715 million as revenue surged by 8% to P13.79 billion.

The Cobra energy drink brand maintained its market leadership with a 55% share as of end-September, while the Absolute and Summit bottled water brands had the third-largest share at 17%.

For the property segment, Eton grew its net income by 44% to P499 million. Leasing revenue surged by 4% to P1.59 billion on higher lease rates.

The property company’s leasing portfolio comprises 288,000 square meters, with approximately 192,000 square meters dedicated to office space. On Wednesday, LT Group stocks fell by 0.59%, or six centavos, to P10.14 per share. — Revin Mikhael D. Ochave

Nickel Asia’s income drops 24.2%, hopes boost from new mines

NICKELASIA.COM

NICKEL ASIA Corp. saw its third-quarter attributable net income drop by 24.2% to P1.44 billion from P1.9 billion a year ago due to lower sales.

Revenues fell by 8.01% year on year to P7.69 billion from P8.36 billion due to the lower sale of nickel ore and limestone, the company said in a disclosure on Wednesday.

The company said the sale of ore and limestone decreased to P7.09 billion, 6.6% lower compared to P7.59 billion in the same period a year ago.

Revenues from services dropped 48.6% to P296.94 million from P577.68 million the prior year.

Meanwhile, revenues from its power generation rose 53.6% to P296.76 million from P193.18 million last year.

Nickel Asia chief executive officer Martin Antonio G. Zamora expects the operation of mines in Palawan and Eastern Samar to boost revenues in the coming years.

“This year, we achieved our objective of operating Manicani in Eastern Samar and Bulanjao in Palawan. We are optimistic that these new nickel mines will drive volume and revenue growth in the coming years,” Mr. Zamora said in a separate press release.

He said that Nickel Asia has completed infrastructure enhancements in Dinapigue, Isabela, “paving the way for higher production.”

Nickel Asia owns five mines: Rio Tuba in Palawan, Taganito and Tagana-an in Surigao del Norte, the Cagdianao mine in Dinagat Islands, and the Dinapigue mine in Isabela. These are operated by its subsidiaries.

The company extracts saprolite, which is shipped to Japan and China for the processing of ferronickel and nickel pig iron. It also mines limonite ore, which is processed in Coral Bay and Taganito processing projects.

Meanwhile, the company’s energy subsidiary Emerging Power, Inc. is targeting to achieve a renewable energy capacity of one gigawatt by 2028, as part of its sustainability initiatives.

“By the second quarter of next year, Greenlight Renewables Holdings, Inc., our joint venture with Shell Overseas Investments B.V., will complete construction of the first phase of its solar project in Leyte, with an initial capacity of 120 megawatts peak (MWp),” Mr. Zamora said.

He added that the first phase of the CAWAG solar project in Subic, Zambales will begin operations by the fourth quarter of next year. It has a capacity of 70 MWp.

Nickel Asia shares fell 0.9% or three centavos to close at P3.32 apiece on Wednesday. — A.H. Halili

Ayala Corp. president banking on new units to drive growth

Ayala Corp. President and Chief Executive Officer Cezar P. Consing — GLOBE.COM.PH

AYALA Corp. is banking on its new business units for sustainability and growth, as its nine-month net income has been supported by its core businesses, according to its president.

“We continue to manage our younger businesses to get them to sustainable trajectories in the near term. We strive to build a simpler, more collaborative, and more connected Ayala,” Ayala Corp. President and Chief Executive Officer (CEO) Cezar P. Consing said in a statement to the stock exchange on Wednesday.

Mr. Consing said this as Ayala Corp. recorded a 5% increase in its nine-month net income to P34 billion.

Core net income rose by 19% to P36.7 billion, led by its core units Bank of the Philippine Islands (BPI), Ayala Land, Inc. (ALI), Globe Telecom, Inc., and AC Energy & Infrastructure Corp.

“Ayala’s growth is being sustained by the strong performances of our core businesses,” Mr. Consing said.

For the banking segment, BPI saw a 24% increase in net income to P48 billion as total revenue surged by 25% to P125.8 billion. Net interest income rose by 22% to P93.9 billion, while noninterest income climbed by 32% to P31.9 billion.

Operating expenses grew 22% to P59.4 billion due to higher manpower, technology, marketing, and volume-related costs.

The property business led by ALI recorded a 15% increase in net income to P21.2 billion on resilient property demand and robust consumer activity. Revenue jumped by 27% to P125.2 billion.

Property development revenues increased by 34% to P76.6 billion on higher bookings across all residential segments, while residential reservation sales increased by 17% to P100.5 billion due to strong demand in the premium segment.

Leasing and hospitality revenues rose by 8% to P33.2 billion, while revenue from service businesses surged by 54% to P12.8 billion.

For the telecommunications segment, Globe recorded a 6% increase in net income to P20.6 billion, while core net income surged by 19% to P17.6 billion.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 7% to P64.9 billion.

The energy segment led by ACEN saw a 24% jump in net income to P8.1 billion, led by newly operational plants that boosted attributable renewable energy. Core attributable EBITDA expanded by 30% to P14.3 billion.

Ayala Healthcare Holdings, Inc. widened its net loss to P417 million due to costs related to the ramp-up of its cancer hospital in Taguig City. Revenue surged by 11% to P6.9 billion.

AC Industrial Technology Holdings, Inc. narrowed its net loss to P5.1 billion on lower impairments. Core net loss widened to P921 million on softer demand in electronics manufacturer Integrated Micro-electronics, Inc.

Meanwhile, ALI listed its follow-on P8 billion ten-year sustainability-linked bond (SL-Bond) on the Philippine Dealing & Exchange Corp., which has an original interest rate of 6.1334% per annum.

The recent listing brings ALI’s total SL-Bond issuance to P14 billion. The bonds are linked to specific sustainability performance targets.

The latest bond issuance is part of the P50-billion securities program rendered effective in June 2023. The proceeds will be used to finance capital expenditure and debt refinancing requirements.

“The success of this sustainability-linked financing program, novel as it may be in the country, shows that the Philippine investing community realizes that sustainable finance is integral to the urgent pursuit of sustainability,” ALI President and CEO Anna Ma. Margarita B. Dy said during the listing ceremony.

The latest issuance brought ALI’s sustainability-linked financing program to P28 billion with an average tenor of nine years.

“We will continue to pursue large, impactful projects that will improve the quality of life of the Filipinos. Among such developments are the One Ayala Integrated Transport Hub and the transit connectivity and pedestrianization of the Makati central business district, of Bonifacio Global City, and Nuvali and our other estate developments,” Ms. Dy said.

ALI tapped BDO Capital & Investment Corp., BPI Capital Corp., Chinabank Capital Corp., East West Banking Corp., First Metro Investment Corp., Land Bank of the Philippines, RCBC Capital Corp., and SB Capital Investment Corp. as the joint lead underwriters and bookrunners for the issuance.

On Wednesday, Ayala Corp. shares fell by 0.15% or P1 to P657 per share, while ALI stocks dropped by 0.98% or 30 centavos to P30.25 apiece. — Revin Mikhael D. Ochave

Privacy body seeks GCash users’ help in probing unauthorized transactions

PHILIPPINE STAR/WALTER BOLLOZOS

THE National Privacy Commission (NPC) has issued a call to individuals who may have been affected by unauthorized transactions on the GCash platform.

“We urge individuals who may have been affected by this incident to reach out to the NPC through info@privacy.gov.ph and provide relevant information to assist with our investigation,” the NPC said in a statement on Wednesday.

According to the agency, it received an e-mail from GCash on Nov. 11 stating that “there was no data leakage or personal data breach” in the incident, which involved unauthorized transactions.

“Although GCash has stated that there was no compromise of customer credentials or data in the incident, the NPC will still conduct an independent investigation in line with its mandate to administer and implement the Data Privacy Act of 2012,” said the NPC.

It said that the investigation will verify GCash’s reports and ensure the electronic wallet’s accountability in protecting users’ personal information.

However, the privacy body said that its authority is focused on the protection of personal data; thus, monetary concerns should be directed to the appropriate financial regulatory agency.

On Monday, the Bangko Sentral ng Pilipinas (BSP) said that it would investigate the incident after several GCash users reported unauthorized deductions from their accounts.

The probe aims to identify possible vulnerabilities and review the e-wallet’s compliance with regulations and policies, the BSP said.

GCash said in a statement on Sunday that it had fixed the system issues that caused the incident.

“GCash has completed the necessary wallet adjustments for its affected users,” it said.

“Rest assured that customer accounts are safe, and customer account security will always be our top priority,” it added. — J.I.D. Tabile

D.M. Wenceslao profit climbs 8.4%, expects LRT Extension to boost market reach

DMWAI.COM

D.M. Wenceslao & Associates, Inc. (DMW) saw a 31.1% increase in its third-quarter attributable net income to P449.98 million from P343.22 million a year ago, driven by higher rental revenue.

Third-quarter revenue improved by 12.7% to P897.72 million from P796.59 million last year, DMW said in a stock exchange disclosure on Wednesday.

Rental revenue reached P857.31 million, up by 29.6% from P661.31 million in 2023.

For the first nine months, DMW grew its attributable net income by 8.4% to P1.37 billion from P1.26 billion last year.

“The Philippine real estate sector is on an upward trajectory, supported by stable inflation and declining interest rates. In Parqal, we’re witnessing firsthand the impact of these macroeconomic tailwinds, with customer spending and foot traffic at year-high levels,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said.

Revenue declined by 3.4% to P2.72 billion from P2.81 billion last year due to lower sales of condominium units.

Recurring revenues, encompassing land, building, and ancillary rentals, jumped 33% to P2.4 billion.

Commercial building revenue surged by 52% to P1.1 billion, driven by strong demand from logistics and traditional occupiers.

Mr. Wenceslao said the start of the Light Rail Transit-1 (LRT Line 1) Cavite Extension Phase 1 this month will provide a boost to the company’s market reach.

The Transportation department previously said the five stations of the LRT-1 Cavite Extension project that will open include Redemptorist Station, MIA Station, Asia World Station, Ninoy Aquino Station, and Dr. Santos (Sucat) Station.

“This big-ticket infrastructure project will provide seamless access to Aseana City for up to 600,000 passengers daily, connecting an estimated eight million residents across cities traversed by LRT Line 1. This significantly broadens Aseana City’s labor market reach and consumer base,” he said.

On Wednesday, DMW shares rose by 0.36% or two centavos to P5.52 per share. — Revin Mikhael D. Ochave

NAIA operator to post monthly performance report

PHILSTAR FILE PHOTO

THE NEW NAIA Infra Corp. (NNIC) announced plans to post its monthly performance report to enhance transparency.

The report will contain detailed operational metrics and “clearly attribute the root causes of any flight and baggage delays to the responsible stakeholders,” the company said in an e-mailed statement on Wednesday.

The initiative forms part of the goal to further enhance passenger experience and strengthen accountability at the Ninoy Aquino International Airport (NAIA), the airport operator said.

NNIC has launched a transparency initiative that will provide travelers with real-time updates and clear information on flight and baggage delays through the airport’s public address system.

“By providing direct, accurate information, passengers will receive the full picture, without resorting to getting second-hand, unverified information from social media and other sources,” the company said.

“This approach also alleviates congestion at service counters, allowing airport staff to focus on resolving issues quickly and efficiently,” it added.

NAIA’s social media channels will provide timely operational updates to make important information accessible on official platforms, it said.

“In the coming months, NNIC will implement infrastructure and system upgrades across NAIA in collaboration with airport stakeholders to further improve efficiency, streamline passenger flow, and enhance the travel experience.”

The company also said that it will work closely with the Bureau of Immigration on biometric system upgrades and collaborate with airlines to support investments in additional baggage handling equipment and workforce enhancements.

In July, the company procured a new explosive detection system to be integrated into the baggage handling system at Terminal 3 to ensure continued security and efficiency. The new system is expected to arrive and be installed by early 2025. — Sheldeen Joy Talavera

A climate breakthrough has rarely looked bleaker

FREEPIK

HAS THERE ever been a grimmer backdrop to the world’s most concerted attempt to avert global warming?

COP29 — the annual conference for the United Nations Framework Convention on Climate Change — is happening this year in Baku, Azerbaijan, one of the birthplaces of the modern oil industry and (according to civil liberties group Freedom House) among the most oppressive societies on the planet.

Leaders from China and the US, which account for about 45% of the planet’s carbon footprint, won’t be attending — and President Joe Biden is in any case the lamest of lame ducks after the Republican sweep in last week’s elections. Almost every other major economy in Asia and the Americas will be absent, thanks to an Asia-Pacific Economic Cooperation summit in Peru this week, while the leaders of Germany, France, and the European Commission are also staying home.

There have been other tough summits. COP28 in Abu Dhabi foreshadowed this year’s event by resembling a trade fair for the oil industry. Still, it happened in a far more benign political environment, before the anti-climate wave seen in recent European and US elections.

The 2009 event in Copenhagen collapsed in disarray, but 15 years ago the world had more wiggle room to avoid disaster. About a quarter of all emissions since 1850 have happened since Copenhagen. We’ve only got seven years left of polluting at current rates to retain an even chance of keeping warming below 1.5 degrees Celsius.

The wavering global commitment is particularly worrying because the coming 12 months will be vital for setting the next decade of climate policies. The latest set of Nationally Determined Contributions, or NDCs — plans by countries to show how they’ll reduce their emissions up to 2035 — are due to be delivered by the end of February. So far only one nation has submitted its latest blueprint: the United Arab Emirates.

It’s common for both climate denialists and campaigners to present such targets as meaningless verbiage. However, just as elected politicians are surprisingly good at keeping their manifesto promises, governments are pretty serious about achieving their greenhouse goals.

The Kyoto Protocol, the 1997 pact that’s widely seen as a byword for the meaninglessness of such agreements, was actually pretty successful. Signatories cut their emissions by 22% between 1990 and 2012, far better than the 5% they were aiming for. Economic collapse in the former Soviet Union’s sphere of influence was a major factor in that outperformance, but Western Europe and Oceania, by and large, hit or exceeded their goals.

The main reason Kyoto failed to rein in global emissions was that it didn’t cover emerging nations, something remedied in the 2015 Paris Agreement. The national plans that form one of the main mechanisms of that deal also have a decent record. In 2017, forecasts indicated that without climate policies global emissions would hit 65 billion metric tons of carbon dioxide by 2030. That figure is now expected to be 57 billion metric tons.

This is still far too high to avert catastrophic global warming, but it falls only about 2 billion metric tons short of the main targets governments have set for themselves. The problem is that those objectives result in emissions about 14 billion metric tons higher than we need to keep the world on track for even 2°C of warming. Implementation of climate plans isn’t the problem — it’s their insufficiency to address the scale of the crisis we’re facing. It’s politics, not logistics or physics, that’s stopping us from tackling climate change.

That’s what is most worrying about the listlessness and pettiness on display in the world’s response to COP29. Politics has always had a decisive impact on the trajectory of global emissions, and right now we are pointing 180 degrees in the wrong direction.

Need one piece of absurdity? The US has more restrictions on importing Malaysian solar panels made with Chinese materials than it has on importing Indian diesel made from Russian crude oil.

Direct global subsidies for fossil fuel use last year was $620 billion, roughly nine times the $70 billion that was spent encouraging consumers to switch to clean power, according to the International Energy Agency. Even in the European Union, supposedly the paragon of green politics, fossil fuels received more direct support than renewable power in 2022.

Factor in the way that coal, oil, and gas don’t have to pay for the damage they do to human health and the climate, and the support they’re getting from governments is 10 times higher.

Clean power has won the technical and financial arguments that made it look a non-starter a couple of decades ago. But the roadblock thrown up by wrongheaded politics is far from being  lifted. If you’re hoping that Baku will provide a solution to these problems, you’re looking in the wrong place.

BLOOMBERG OPINION

Lenovo Philippines unveils latest AI-powered laptops

LENOVO PHILIPPINES on Wednesday launched its latest artificial intelligence (AI)-powered Yoga and IdeaPad laptops that aim to boost user productivity while catering to different lifestyles.

“Lenovo is excited to introduce our latest lineup of AI-powered devices to the Philippine market, designed to elevate productivity, creativity, and connectivity for Filipino consumers,” Lenovo Philippines General Manager Michael Ngan said in a statement.

“Our goal is to provide technology that not only enhances users’ digital experiences but also adapts seamlessly to their unique lifestyles. With these new AI-driven devices, we’re making advanced technology more accessible, helping Filipinos achieve more in their everyday lives.”

The new device lineup, now available at authorized Lenovo retailers across the Philippines, features four new AI-powered laptops with advanced processors, high-resolution displays, and longer battery life that feature Microsoft Copilot as AI assistant.

The Yoga Slim 7i Aura Edition, priced at P103,995, is a 15.3-inch laptop that has a battery life of up to 22 hours. It is powered by the Intel Core Ultra processor with a dedicated AI Neural Processing Unit.

It also has an ultra-thin design for users on the go and sports a 2.8K PureSight Pro display with 500 nits brightness.

Meanwhile, the Yoga Pro 7, priced at P100,995, is powered by an AMD Ryzen AI processor. It has a 16-hour battery life and is equipped with a 14.5-inch 2.8K OLED display with a 120Hz refresh rate and low blue light certification for eye comfort.

The IdeaPad 5x 2-in-1 is a 14-inch device with a Qualcomm Snapdragon X Plus CPU, having a battery life of up to 21 hours. Its 100% DCI-P3 color gamut offers a brightness of 400 nits.

Lenovo said the laptop is built with “military-grade” durability standards and can be used in four modes to fit one’s lifestyle: laptop mode, tablet mode, viewing mode, and tent mode. It costs P67,995.

Lastly, the IdeaPad Slim 5x features Qualcomm’s advanced Snapdragon X Plus platform, with up to 100% DCI-P3 color accuracy and Wi-Fi 7 connectivity. It has an expected battery life of 25 hours. The price for the device is set at P71,995.

The four new devices feature Lenovo’s user assistance features, namely Smart Mode (adapts to user activities), Smart Share (image sharing across devices), and Smart Care (24/7 customer support).

The AI-powered laptops also have Knowledge Assistant, which allows users to better manage AI-generated content, and PC Assistant for device configuration and optimization.

“This new generation of Lenovo products is not just about hardware — it’s about enhancing the way we work, recreate, and connect with each other,” Charlotte O. Koa, consumer business lead at Lenovo Philippines, said during the launch event on Wednesday.

“These devices, powered by advanced AI capabilities, are designed to anticipate user needs, make their tasks easier, and deliver a more personalized experience,” she added. — Beatriz Marie D. Cruz

SMIC president optimistic amid easing inflation

SMSUPERMALLS.COM

SY-LED conglomerate SM Investments Corp. (SMIC) anticipates better financial performance as easing inflation could boost consumer spending, its president said.

“With inflation easing, we remain positive. An improving macroeconomic environment should help both our businesses and consumers moving forward,” SMIC President and Chief Executive Officer Frederic C. DyBuncio said in a statement to the stock exchange on Wednesday.

The country’s inflation rate rose to 2.3% in October from 1.9% in September but was lower than 4.9% a year ago.

Mr. DyBuncio said this as SMIC recorded a 9% increase in its nine-month consolidated net income to P60.9 billion from P55.9 billion last year.

The banking segment had the largest net income share at 50%, followed by property at 27%, retail at 15%, and portfolio investments at 8%.

January-to-September revenue rose by 5% to P462.5 billion from P440.4 billion a year ago.

“We continued to see good growth across our businesses in the third quarter, particularly in banking,” Mr. DyBuncio said.

For the banking business, BDO Unibank, Inc. grew its net profit by 12% to P60.6 billion on the sustained contribution of its core intermediation and fee-based service businesses. Gross customer loans surged by 13% while total deposits expanded by 10%.

China Banking Corp. recorded a 13% increase in consolidated net income to P18.4 billion, led by sustained strong growth from core businesses.

Its loan portfolio surged by 14% to P871.6 billion, driven by both business and consumer lending segments. Total deposits increased by 13% to P1.3 trillion.

The property business led by SM Prime Holdings, Inc. saw a 12% increase in net income to P33.9 billion as consolidated revenue surged by 8% to P99.8 billion.

The mall business, which accounts for 57% of consolidated revenues, reported an 8% growth to P56.5 billion. Mall rental income rose by 8% to P48.5 billion, while cinemas, event ticket sales, and other revenues rose by 4% to P8 billion.

The primary residential business saw a 9% growth in revenue to P31.2 billion, with reservation sales at P47 billion. Its other businesses, including offices, hotels, and convention centers, recorded an 11% revenue growth to P11 billion.

For the retail segment, SM Retail reported a 6.6% decline in net income to P12.8 billion, while revenue surged by 4% to P301.8 billion.

“Department store performance saw normalization of margins, which remain higher than pre-pandemic levels. Food retail performance remained positive, with revenue growth of 7%, supported by better volumes and expansion,” SMIC said.

“Specialty store performance was strong in discretionary categories such as health and beauty and fashion,” it added.

Meanwhile, SMIC said its portfolio investments sustained their positive contribution to consolidated net income.

Revenue of 2GO Group, Inc. grew by 14% due to the increase in travel and the growing tourism industry, while Atlas Consolidated Mining and Development Corp. increased revenues by 7% due to higher copper and gold prices.

On Wednesday, SMIC shares dropped by 1.85% or P17 to P900 apiece. — Revin Mikhael D. Ochave

Solaire’s Waterside sizzles with four hands

Lechon de lobster, glutinous rice, sauce trifecta

By Joseph L. Garcia, Senior Reporter

FIRE and the Philippines are in the spotlight on Nov. 24 for a four-hands dinner at Solaire Resort Entertainment City’s Waterside restaurant. The special collaborative dinner will be helmed by Solaire’s own Alfred Santiago, and Kása Palma’s Aaron Isip.

Both chefs have received training from Michelin-starred restaurants. Mr. Santiago spent time at Singapore’s Burnt Ends, rated No. 15 at Asia’s 50 Best Restaurants and No. 68 worldwide. Mr. Isip spent more time abroad, leaving the Philippines for culinary school at Le Cordon Bleu in Paris, climbing up the ladder (with a tenure at Apicius) and spending more than 10 years in some of the top kitchens in Paris. In 2015, he was awarded the Trophée Espoir of Ile de France by Gault & Millau. The bar, therefore, is set high, and the chefs hurdled it with ease during a Nov. 7 tasting.

The meal kicked off with amuse bouches of yellowtail scad, ube tapioca, and dragonfruit aguachile by Mr. Isip, and one with a meringue of tuna and crab fat by Mr. Santiago.

The next course was a raw bar filled with shellfish: we praise the scallops, with just a hint of a buttery flavor and a strong umami flavor with a sweetish sweep (this was achieved through brushing it with tamarind brown butter kosho), while the oysters with torched bone marrow and green mango relish had an oceanic flavor that merely served as a background to the mastery in its relish. Mr. Isip placed these (including a serving of razor clams on singed beans and lambanog) on a bed of kansi ice (kansi, a soured broth, frozen then crushed), which served as a palate cleanser. While one may be familiar with the possible permutations of seafood, we highly doubt most people have had it served that way.

A lot of the dishes were from Mr. Isip’s tasting menu at Kása Palma. We then got a taste of one his signatures, a tupig (rice cake) with tinapa (smoked fish) mascarpone with smoked caviar. What a treat: with the sticky and dense tupig, it was like chewing on the idea of smoke made solid.

He also brought out their signature Pulpo with Cherry Tomatoes and smoked yoghurt, and there’s a great contrast with the bouncy octopus and the sauce, which had a hidden element of spice not felt until the last swallow. Mr. Santiago’s crab pinangat with smoked gata, along with Mr. Isip’s red snapper (with the crispy skin of the fish fanning out with flair), were very indulgent. We also give this praise for Mr. Isip’s beef short ribs confit with a peanut sauce (calling to mind a kare-kare), and his lovely freak of nature, Lechon de Lobster Kurobota — suckling pig wrapped around lobster.

However, if we’re going for an otherworldly dining experience, we’d give this to the freaky-looking Mantis Shrimp by Mr. Santiago, with spiced buro (fermented rice), crab bisque, and curry leaves. The chatter died down as diners carefully picked through the crustacean, looking and feeling like alien flesh, brought down back home with a sweetish and oceanic taste hitting the tongue at the same time.

Dessert was relatively mild: Mr. Santiago presented a Bombe named after Waterside, with a white chocolate dome looking like a coconut husk, toasted rice ice cream, calamansi meringue, dark chocolate rum sauce, and a final flambé with lambanog. Mr. Isip’s dessert was a homage to corn: a corn madeleine stuffed with corn custard (then shaped like corn), sweet corn ice cream, and corn puffs.

The dishes all had the flavor of flame and smoke in them: that’s because of Mr. Isip’s own predilection for firewood cooking. “In our restaurant, we have a firewood kitchen,” he explained, saying that they’re trying to bring that taste to a bigger audience by collaborating with Solaire.

Mr. Isip praises fire, and the flavors it imparts: “It’s really the essence of cooking. This is how we differentiated ourselves from animals. We learned how to cook with fire.”

The dinner (price available upon request) will be held on Nov. 24 at 6:30 p.m. Seats at Waterside in Solaire Resort Entertainment City can be reserved by calling 8888-8888 or e-mailing restaurantevents@solaireresort.com.

Christmas comes to Solaire

SOLAIRE recently kicked off the holiday festivities with a bang as it hosted tree lighting ceremonies at Solaire Resort Entertainment City and Solaire Resort North with both boasting 20-foot Christmas trees placed around the property. Solaire Resort Entertainment City in Paranaque City’s tree lighting event featured a performance by Lea Salonga and Clay Aiken. Meanwhile, Solaire Resort North welcomed the holiday season with its first tree lighting ceremony with a performance by Ballet Philippines along with a serenade by Martin Nievera. Guests at the Solaire Resort North Tree Lighting event included (L-R) Gregory Hawkins, chief operating officer of Solaire Resort North; Donato Almeda, vice-chairman for Construction & Regulatory Affairs of Bloomberry Resort Corp.; Joy Belmonte, mayor of Quezon City; Congressman Arjo Atayde; and Assistant Vice-President Vina Oca, PAGCOR-GLD.

Yields on BSP’s term deposits inch lower after Fed rate cut

BW FILE PHOTO

YIELDS on the Bangko Sentral ng Pilipinas’ (BSP) term deposits went down on Wednesday after the US Federal Reserve delivered another rate cut last week.

The BSP’s term deposit facility (TDF) attracted bids amounting to P291.099 billion on Wednesday, higher than the P230 billion on the auction block as well as the P250.427 billion seen a week ago for a P210-billion offer.

Broken down, tenders for the seven-day papers reached P155.328 billion, higher than the P130 billion auctioned off by the central bank and P133.311 billion in bids for a P120-billion offer seen the previous week.

Banks asked for yields ranging from 5.955% to 6.1%, slightly narrower than the 5.955% to 6.13% band seen a week ago. This caused the average rate of the one-week deposits to inch down by 0.68 basis point (bp) to 6.0824% on Wednesday from 6.0892% previously.

Meanwhile, bids for the 14-day term deposits amounted to P135.771 billion, above the P100-billion offering and the P117.116 billion in tenders for the P90 billion placed on the auction block a week ago.

Accepted rates for the tenor were from 6.1167% to 6%, wider than the 6.1281% to 6% margin recorded a week ago. With this, the average rate for the two-week deposits fell by 1.14 bps to 6.1167% from the 6.1281% logged in the prior auction.

The central bank has not auctioned off 28-day term deposits for more than four years to give way to its weekly offerings of securities with the same tenor.

The term deposits and the BSP bills are used by the central bank to mop up excess liquidity in the financial system and to better guide market rates.

TDF yields went down on Wednesday after the US central bank’s policy decision last week, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

“Any possible protectionist Trump policies could reduce future Fed rate cuts and, in turn, could also reduce local policy rate cuts,” Mr. Ricafort added.

The Federal Reserve cut interest rates by a quarter of a percentage point last week as its policy makers began taking stock of what could become a more complex economic landscape when US President-elect Donald J. Trump takes office next year, Reuters reported.

Fed Chair Jerome H. Powell said the results of the presidential election, which paved the way for a US chief executive who has pledged widespread deportation of immigrants, broad-based tariffs, and tax cuts, would have no “near-term” impact on US monetary policy.

Mr. Powell said the Fed will continue assessing data to determine the “pace and destination” of interest rates as officials reset currently tight monetary policy to account for inflation that has slowed markedly in the past year and is nearing the US central bank’s 2% target.

But as the new administration’s proposals take shape, the Fed chief said the central bank would begin estimating the impact on its twin goals of stable inflation and maximum employment.

“It’s a process that takes some time,” said Mr. Powell, who spoke in a press conference following the Fed’s decision to reduce its benchmark overnight interest rate to the 4.5%-4.75% range. “It’s all of the policy changes that are happening. What’s the net effect? The overall effect on the economy at a given time? That’s a process… we go through all the time with every administration.”

For now, at least, both inflation and interest rates are moving lower in line with a Fed outlook that sees price pressures continuing to ease amid ongoing economic growth and a job market the central bank says has “generally eased” but remains healthy.

Mr. Powell said for now the economic outlook was solid and the Fed hoped to keep it that way.

“This further recalibration of our policy stance will help maintain the strength of the economy and the labor market, and will continue to enable further progress on inflation as we move toward a more neutral stance over time,” Mr. Powell said.

The Fed’s policy statement noted that risks to the job market and inflation were “roughly in balance,” repeating language from the statement released after its Sept. 17-18 meeting.

The new statement also slightly altered the reference to inflation, saying that price pressures had “made progress” towards the Fed’s objective, rather than the prior language that it had “made further progress.”

Mr. Powell said that the language change was not meant to signal that inflation has been sticky. The Fed, he said, has always expected progress to be bumpy, and policy makers have gained confidence that inflation is on a sustainable path to the 2% goal. — Luisa Maria Jacinta C. Jocson with Reuters

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