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DOF: GFIs can seek extended relief after Maharlika infusion
Government financial institutions Land Bank of the Philippines and Development Bank of the Philippines will likely seek an extension of its regulatory relief following contributions to the country’s sovereign wealth fund......»»
UnionDigital Bank revenue grows to over P5 billion
UnionDigital Bank, the digital banking arm of Aboitiz-led Union Bank of the Philippines, saw its revenue grow to over P5 billion in 2023 mainly driven by higher deposits and loans......»»
Bank loans used as RRR compliance hit P6.4 billion
Mid-sized and small banks have extended around P6.4 billion loans to micro, small and medium enterprises (MSMEs) as well as large companies, and booked these loans in compliance with their reserve requirement ratios, according to the Bangko Sentral ng Pilipinas......»»
Palawan Pawnshop - Palawan Express Pera Padala and Philippine Veterans Bank seal partnership for cash withdrawal services
Palawan Pawnshop - Palawan Express Pera Padala and Philippine Veterans Bank seal partnership for cash withdrawal services.....»»
Why should average Filipinos care about CBDCs?
Cash has long been the cornerstone of Filipino financial transactions, but a digital wind is blowing and it carries with it the promise and peril of Central Bank Digital Currencies......»»
Robinsons retail unit posts profit rise
Listed Gokongwei group’s Robinsons Retail Holdings Inc. proved its resilience in the first nine months as it reported a core profit of P3.8 billion, up 4 percent. Net sales during the period were at P138.2 billion, which rose by 8.7 percent year-on-year. The company was able to generate growth in net sales and core net earnings despite the impact of inflation on consumption and a challenging base last year which benefited from economic reopening and election-related spending. Core net earnings exclude foreign exchange gains and losses, interest income from bonds, equity in earnings from associates, interest expense related to the Bank of Philippine Islands acquisition financing, BPI cash dividends, and others. The growth in net sales was supported by blended same store sales growth of five percent and store expansions. The core businesses supermarkets and drugstores were the main revenue growth drivers in the first nine months. These two segments accounted for almost 75 percent of Robinsons Retail’s revenues for the period. Meanwhile, a bright spot in the discretionary portfolio was the department store segment, which was able to deliver double-digit topline growth due to back-to-school and continued out-of-home activities. The company’s consolidated gross profit continued to grow faster than revenues, increasing by 9.4 percent year-on-year to P32.9 billion in the first nine months. This was enabled by improvements in category mix and higher penetration of private label brands. Meanwhile, operating income grew by 3.7 percent year-on-year to P6.1 billion. Net income attributable to equity holders of the parent company fell by 41.4 percent year-on-year to P2.6 billion until September. The decline in net income to parent was weighed by equitized losses from minority startup investments which continue to ramp up, the derecognition of Robinsons Bank’s net income under equitized earnings following the ongoing merger with the Bank of the Philippine Islands, interest expense from the acquisition financing of the BPI shares that were purchased earlier this year, and the absence of cash dividends from BPI in the third quarter of 2023. Dividends set BPI has historically paid dividends in the second and fourth quarters of each year. The expected cash dividends from BPI in the fourth quarter should fully cover for the acquisition related financing interest expense for the purchase of the BPI shares. “Our defensible business model has enabled us to continue growing and remain relevant among Filipino consumers. This is notwithstanding near-term macroeconomic challenges, particularly the impact of inflation on consumer sentiment. These headwinds are temporary, in our view, and we thus remain positive on the long-term potential of the domestic retail industry given the Philippines’ attractive demographics. We will continue to invest with a long-term view and in a sustainable manner — core strategies that we firmly believe will translate to greater stakeholder value,” Robina Gokongwei-Pe, president and CEO of Robinsons Retail Holdings Inc., said. The post Robinsons retail unit posts profit rise appeared first on Daily Tribune......»»
Crypto crackdown intensifies on Hamas finance
Cryptocurrency has become the latest front in the conflict between Israel and Hamas, analysts say. Israeli and US authorities have intensified their financial hunt into Hamas in recent days as they track illicit funds via digital currencies. Ari Redbord, global policy head at crypto tracking specialist TRM Labs, said there is now less crypto transfer activity on pro-Hamas support networks as a result. "We are seeing a lot less activity in some respects since the war began," Redbord told AFP. This is "primarily because Israel has been very aggressive and successful in taking down these fundraising efforts", he added. Israel has bombed Gaza in response to an unprecedented cross-border attack by Hamas militants who, while firing a massive rocket barrage, killed more than 1,400 people and took 222 hostages on 7 October, according to Israeli authorities. Israeli strikes have now killed more than 6,500 people in Gaza, according to the Hamas-run health ministry. Shadowy world Cryptocurrency is regarded as a speedy way to move cash that is unregulated by any central bank and is less traceable than a traditional bank transfer. The shadowy world of digital units, based on decentralized blockchain technology, has gained notoriety for illicit transactions due to its under-the-radar appeal. Two weeks ago, Israeli police revealed they had located and frozen accounts linked to Hamas that sought "to solicit donations on social networks" via Binance, the world's biggest cryptocurrency exchange. A Binance spokeswoman said it "follows internationally recognized sanctions rules, blocking the small number of accounts linked to illicit funds". Redbord, formerly a senior US government adviser, said Hamas had adopted crypto from 2019 at the latest, to seek funding via the Telegram messaging network and even on its own website. Hamas decided in April that it would no longer accept cash via Bitcoin due to increased global surveillance of the world's biggest digital unit. Crypto fundraising is now operated via a network of Hamas-linked support groups. TRM Labs has closely monitored virtual crypto wallets linked to such support groups since the start of the war. And it has concluded that much smaller amounts of cash than usual are being moved. Two weeks after the attacks, support group Gaza Now received less than $6,000 in one of its crypto wallets, Redbord noted. That compared with $800,000 in total since the wallet's creation in August 2021. Meanwhile, authorities are well aware that digital assets are a minor part of a complex funding picture. The US State Department estimates that Iran funnels $100 million per year to Palestinian groups including Hamas. 'Small piece of puzzle' "Cryptocurrency is a very small piece of a larger financing puzzle for Hamas," said Redbord. "They are looking to Iran; they're... imposing taxes on the Palestinians; they have a network of charities and a diaspora of supporters who are sending donations not in cryptocurrencies." "But crypto does play a role," he said. Digital currencies still represent a significant revenue stream for Hamas and other allied groups. Crypto addresses identified by Israel as being linked to Hamas received about $41 million between August 2020 and July 2023, according to Israeli analytics and software firm BitOK. Other crypto addresses linked to Islamic Jihad received in excess of $154 million between October 2022 and September 2023, with some still active, it adds. Some players in the sector simply turn a blind eye. "Some cryptoasset businesses are intentionally or unwittingly allowing misuse of the crypto ecosystem," said Joby Carpenter, an expert on the industry. "This trend is magnified where exchanges are based in lightly or unregulated jurisdictions," he told AFP. The post Crypto crackdown intensifies on Hamas finance appeared first on Daily Tribune......»»
Neither estafa nor qualified theft (2)
In Balerta v. People, the Court found that juridical possession as an element of the crime of estafa by misappropriation was not present because the accused was a cash custodian with no independent right or title to the funds received: In the case at bench, there is no question that the petitioner was handling the funds lent by Care Philippines to BABMPC. However, she held the funds on behalf of BABMPC. She had mere physical or material possession over the funds but held no independent right or title, which she could set up against BARMPC. The petitioner was nothing more than a mere cash custodian. Hence, the Court finds that juridical possession of the funds as an element of the crime of estafa by misappropriation is absent in the instant case. In Reside v. People, the Court came to a similar conclusion and held that the accused, a school principal tasked to receive tuition fees and forward these to the school, did not have juridical possession over the funds received. In the case at bench, it cannot be gainsaid that the petitioner, in addition to her duties as principal, was authorized to receive or collect matriculation fees from the parents and/or students enrolled in TGWSI. Per a verbal agreement with De Dios, the petitioner shall forward all payments received together with the remittance voucher slips to the school. As it happens, the money merely passes into the petitioner’s hands, and her custody is only until the same is remitted to the school. Consequently, as principal and temporary cash custodian of TGWSI, the petitioner acquires only physical or material possession over the unremitted funds. Thus, being a mere custodian of the unremitted tuition fees and not, in any manner, an agent who could have asserted a right against TGWSI over the same, the petitioner had only acquired material and not juridical possession of such funds and, consequently, cannot be convicted of the crime of estafa as charged. The prosecution alleged that petitioner Medina was responsible for collecting remittances from the Department of Education, accepting premium payments from PPSTA members, and depositing these payments in PPSTA’s bank account, as instructed by the PPSTA Treasurer. The record is bereft of any allegation or proof that petitioner Medina had any independent right or title to these funds that she could set up against PPSTA. Contrary to the findings of the CA, petitioner Medina was not a “trustee” of the PPSTA members’ payments, as she received these sums as an employee of, and on behalf of, her employer. Consequently, petitioner Medina only had material and not juridical possession of these funds, and she cannot be convicted for estafa under Article 315 (b) (l) of the Revised Penal Code or RPC. Second, jurisprudence holds that a conviction for simple or qualified theft (in lieu of estafa) is possible if all the elements of theft are alleged in the information. However, the evidence on record needs to be more sufficient to convict petitioner Medina of theft, whether simple or qualified. Simple theft is committed when the following elements concur: (1) taking of personal property; (2) that the said property belongs to another; (3) that the said taking be done with intent to gain; (4) that it be done without the owner’s consent; (5) that it be accomplished without the use of violence or intimidation against persons, nor of force upon things; and (6) that it be done with grave abuse of confidence. Theft becomes qualified when committed with grave abuse of confidence, among other qualifying circumstances enumerated in Article 310 of RPC. (To be continued) The post Neither estafa nor qualified theft (2) appeared first on Daily Tribune......»»
LandBank named best for financial inclusion
The Land Bank of the Philippines, or LandBank, was recognized by Kantar Philippines as one of 2023’s Best Philippine Brands under the “Banking” category for providing convenient, accessible and innovative banking services to unbanked and underserved Filipinos nationwide. Kantar conferred the award to LandBank for its strong brand of service, decades of empowering the underserved, and for advancing financial inclusion in the country through the accessibility of its integrated physical and digital banking services. The market research firm also highlighted the Bank’s efficient delivery of cash grants to beneficiaries of the National Government’s social amelioration programs, particularly the digital disbursement of financial assistance under the Conditional Cash Transfer Program. “This recognition is a testament to LandBank’s unwavering pursuit to reach and serve more Filipinos nationwide. We are continuously working towards the strategic expansion of our physical touchpoints and the enhancement of our digital channels to deliver exceptional and accessible banking service,” said president and CEO Lynette V. Ortiz. In support of the National Government’s financial inclusion drive, LandBank has also onboarded 8.35 million Philippine Identification System, or PhilSys, registrants for their own transaction accounts, under the Bank’s co-location strategy with the Philippine Statistics Authority. The partnership aims to bank previously unbanked PhilSys registrants and grant them formal access to basic banking and other financial services. LandBank likewise has 1,111 agent banking partners, or ABPs, nationwide offering services such as cash out, cash in, fund transfer, bills payment, and opening and issuance of LandBank Agent Banking Cards in unbanked and underserved communities. The bank also offers individuals who have no capacity for operationalizing a regular deposit savings account to open a LandBank “Perang Inimpok Savings Option” or PISO account with only P1 as minimum initial deposit and up to a maximum of P50,000 account balance. As of end-August 2023, LandBank has opened 52,406 PISO accounts for unbanked and underserved Filipinos including students, public utility vehicle drivers, vendors, farmers and fishers. Kantar BrandZ report LandBank was recognized for its strong brand image in the Kantar BrandZ Philippine Report, which was based on a comprehensive survey conducted in 2022 covering 44 local brands across four categories — banks, communication providers, general retailers and beverages. Kantar is a global marketing and data analytics company that specializes in analyzing, understanding, and interpreting consumer behavior and trends. The 2023 Philippines Brand Awards is the first edition held by Kantar Philippines in the country to honor the top brands that bring value to the lives of Filipino consumers. The post LandBank named best for financial inclusion appeared first on Daily Tribune......»»
Additional cuts in bank reserves now off the table
An additional reduction in the amount of cash banks are required to keep with the central bank is now off the table for this year after monetary authorities signaled a possible rate hike in November amid upside risks to inflation, according to Bangko Sentral ng Pilipinas Governor Eli Remolona Jr......»»
Globe bankrolls P15-B expansion
Ayala-backed Globe Telecom Inc. has secured P15 billion in additional funding from Metropolitan Bank & Trust Company, a move that will strengthen the company’s financial capabilities to bankroll network improvements and expansion. In a report to the Philippine Stock Exchange, the company said it signed the term loan facilities on Monday. According to Globe, the proceeds will particularly finance Globe’s capital expenditures, debt refinancing, and/or general corporate requirements. Responding to the growing need to ramp up mobile data services amid a digital-savvy landscape, Globe has been also boosting its services to offer seamless and efficient services to users. Proceeds mostly for data network In the first half, the company invested P37.7 billion in capital expenditure, which was 25 percent lower than the similar period last year. It was also consistent with the company’s efforts to bring free cash flow back to more sustainable levels. The majority or about 90 percent of the capex spending was allocated to data network builds to meet the consumer’s escalating demand for data. As of June, Globe built 542 new cell sites and upgraded 5,087 mobile sites to LTE to meet the rising data demands of its customers. The company also deployed around 148,000 fiber-to-the-home lines, significantly lower than last year’s rollout to maximize the utilization of its existing fiber inventory. Relatedly, Globe continues to deploy 5G wireless technology nationwide, firing up 356 new 5G sites across the Philippines, increasing its 5G outdoor coverage to 97.44 percent of the National Capital Region and 91 percent of key cities in Visayas and Mindanao. The post Globe bankrolls P15-B expansion appeared first on Daily Tribune......»»
FLI debt papers get top PhilRatings grade
The proposed P10-billion bond float of property developer Filinvest Land Inc., or FLI, has been assigned the highest credit ratings and stable outlooks by the Philippine Rating Services Corporation, or PhilRatings. FLI’s proposed bonds, amounting to P10 billion with a P2-billion oversubscription allowance, were assigned an issue credit rating of PRS Aaa. The high rating was also assigned to FLI’s outstanding bonds, totaling P35.4 billion. Proceeds from the issuance will be used for capital expenditures and debt refinancing. “We are delighted to receive a PRS Aaa rating from PhilRatings for our proposed bond issuance. This rating reflects our healthy fundamentals and underscores our constant focus on growth and financial sustainability,” Tristan Las Marias, FLI president and chief executive officer, said. PRS Aaa signifies the highest credit quality with minimal risk. The capacity to meet financial commitment is extremely strong under the grade. Outlook stable PhilRatings also issued a stable outlook on PhilRatings. An outlook gives a glimpse on the direction of any rating change within one year. A Stable outlook means the rating will likely be unchanged in the next 12 months. PhilRatings said it took “into account the following key considerations: FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion; its sound growth strategies; its improved revenues and operating cash flow, supported by more than satisfactory liquidity and interest coverage” for the outlook. For 2023, FLI will launch condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal. FLI will also accelerate the development of its township projects in East Town in Cainta, Rizal; Timberland Heights in San Mateo, Rizal; Ciudad de Calamba in Calamba City, Laguna, The Wood Estates in Trece Martires City, Cavite, and Palm Estates in Bacolod City, Negros Occidental. The FLI townships will include residential, commercial, transportation, and school components to create a self-sufficient environment that considers the needs of residents and customers in mind. For malls, FLI is currently constructing Marina Town in Dumaguete City which will open by end-2023, and new malls in Filinvest Mimosa+ Leisure City and Activa Cubao which will open by end-2024. These will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area, or GLA, bringing FLI’s nationwide retail GLA to 300,000 square meters. The post FLI debt papers get top PhilRatings grade appeared first on Daily Tribune......»»
Filinvest Land bonds earn top credit score, stable outlook from PhilRatings
The proposed bond issuance of full-range developer Filinvest Land Inc. (FLI) has been assigned the highest issue credit ratings and stable outlooks by the Philippine Rating Services Corporation (PhilRatings). FLI’s proposed bonds, amounting to P10 billion with a P2 billion oversubscription option, were assigned an issue credit rating of PRS Aaa. The same PRS Aaa rating was also assigned to FLI’s outstanding bonds, totaling P35.4 billion. Proceeds from these bonds will be used for capital expenditures and debt refinancing. "We are delighted to receive a PRS Aaa rating from PhilRatings for our proposed bond issuance. This rating reflects our healthy fundamentals and underscores our constant focus on growth and financial sustainability. We are grateful for PhilRatings’ trust and confidence in Filinvest Land and aim to continue building the Filipino dream through our various property developments,” said Tristan Las Marias, FLI president and chief executive officer. Obligations rated PRS Aaa (the highest rating assigned by PhilRatings) are of the highest quality with minimal credit risk. The obligor’s capacity to meet its financial commitment to the obligation is extremely strong. Each of the ratings was also assigned an Outlook of Stable. An Outlook is an indication as to the possible direction of any rating change within a one-year period and serves as a further refinement to the assigned credit rating for the guidance of investors, regulators, and the general public. A "stable outlook" means the rating will likely be unchanged in the next 12 months. According to PhilRatings, the assigned credit ratings "take into account the following key considerations: (1) FLI’s established brand name and track record, with geographically diverse real estate products and substantial land bank for future expansion; (2) its sound growth strategies; (3) its improved revenues and operating cash flow, supported by more than satisfactory liquidity and interest coverage,” among other factors. For 2023, FLI will launch condominium and housing developments in Antipolo City, Taytay, Angono, Calamba City, Tanauan City, Trece Martires City, Bacoor City, Dumaguete City, and the Island Garden City of Samal. FLI will also accelerate the development of its township projects in East Town in Cainta, Rizal; Timberland Heights in San Mateo, Rizal; Ciudad de Calamba in Calamba City, Laguna, The Wood Estates in Trece Martires City, Cavite, and Palm Estates in Bacolod City, Negros Occidental. These FLI townships will include residential, commercial, transportation, and school components to create a self-sufficient environment that considers the needs of residents and customers in mind. For malls, FLI is currently constructing Marina Town in Dumaguete City which will open by end-2023, and new malls in Filinvest Mimosa+ Leisure City and Activa Cubao which will open by end-2024. These will expand FLI’s retail portfolio by about 55,000 square meters in gross leasable area (GLA), bringing FLI’s nationwide retail GLA to 300,000 square meters. FLI is also present in the industrial park and ready-built factory leasing businesses with its Filinvest Innovation Parks in New Clark City, Tarlac, and Calamba City, Laguna. Last 19 August, FLI broke ground on the 25-hectare Filinvest Innovation Park Ciudad de Calamba, an expansion of the 50-hectare Filinvest Technology Park in Ciudad de Calamba. FIP-CDC is envisioned to become a stage for new and relevant products that will catalyze progress in the local community. The post Filinvest Land bonds earn top credit score, stable outlook from PhilRatings appeared first on Daily Tribune......»»
P75-M PAGCOR mess: CIDG launches manhunt vs. suspect
The Philippine National Police - Criminal Investigation and Detection Group (PNP-CIDG) has launched a nationwide manhunt for the primary suspect in the P75-million controversy in the Philippine Amusement and Gaming Corporation (PAGCOR) after he and four others were able to elude arrest during a recent raid in their lair in Loac, Pangasinan. The PNP-CIDG director, Major General Romeo Caramat, identified the primary suspect as Jewel Castro. He and certain Ethan Eleazar, Norbert Escalante, Enrico San Miguel, and Rebecca Ferolina managed to escape even before the operatives swooped down a secluded illegal online sabong operation in Loac. Castro and his cohorts in PAGCOR are the subject of a top-to-bottom investigation ordered by PAGCOR Chairman Alejandro Tengco in connection with the missing P75-million cash performance bond exposed by an investor and officer of a corporation, an erstwhile franchisee of the disbanded e-sabong operation. The raid conducted by CIDG coincided with the lodging of a graft complaint with the Office of the Ombudsman by one Joaquin Sy, against a former and two top officials of PAGCOR and three private individuals headed by Jewel Castro. Sy, who is the treasurer and the chairman of the board of Kamura Highlands Gaming and Holdings Inc., in his complaint said that on 4 April 2022, he personally posted cash for the performance bond at PAGCOR's office in Malate, Manila on behalf of their corporation. He provided two manager’s checks payable to PAGCOR and drawn against his personal bank accounts. In return, PAGCOR issued official receipts and other documents proving the posting of a bond by the corporation. Under PAGCOR’s guidelines, only a corporation can apply to be a franchisee of e-sabong operation. Sy, however, said that when then-president Rodrigo Duterte disbanded the e-sabong on May 2022, he requested PAGCOR in writing of the intention of his corporation to withdraw the cash performance bond but to no avail. He added that later on, he was told by PAGCOR's Assistant Vice President for Finance Lolita Gonzales that a P75-million Land Bank check was already issued to one Jewel Castro sometime in July 2022. Meanwhile, in a press statement, the newly-appointed PAGCOR chair said, “We have launched an internal investigation and we are trying to re-create the sequence of events since the department allegedly involved, the E-Sabong Department, has already been disbanded.” Tengco hinted that the release of a check in the name of an individual not to the corporation that posted it, could not be possible without the connivance of personnel within PAGCOR. “We will bring the perpetrators to justice if indeed there was any anomaly,” he stressed. On the other hand, a confidant of Castro in his clandestine e-sabong operation who refused to be identified said that Castro expressed his intention to cooperate with PAGCOR’s ongoing investigation but fears for his safety, considering the persons and the amount of money involved in the anomaly. Castro is considered the key figure to unlock the mystery of the missing P75-million cash performance bond. The post P75-M PAGCOR mess: CIDG launches manhunt vs. suspect appeared first on Daily Tribune......»»
Piggy bank heist
Big-time robbers recently struck, stealing P13 million in cash and jewelry in Tagum City, Davao del Norte. According to police investigators, the brazen break-in at a shopping center on the evening of 5 September was carried out by robbers who entered through a hole in the wall they had bored from a vacant parking lot next to the building. The robbers stole P4 million from an automated teller machine and P9 million in gems from a jewelry store while mall security guards were outside and were unaware of the thefts, according to GMA Integrated News. Police suspected the robbers were also behind the burglary of a grocery store in Davao City and another mall in Agusan del Sur. Robbers used to hit banks for the bigger cash loot, but perhaps such targets are too risky for them these days. In Calasiao, Pangasinan, two thieves also opted to be safe and struck a store. An outdoor surveillance camera caught one man breaking the lower part of the door of the store in Barangay San Miguel. The footage then showed a companion entering through the opening. The robbery netted them not only P8,000 in cash earnings of the store but, apparently not content with the amount, they also took the piggy bank of the store owner’s child, according to GIN. The post Piggy bank heist appeared first on Daily Tribune......»»
Transport group laments ‘slow’ fuel subsidy distribution
The Alliance of Transport Operators and Drivers Association of the Philippines on Sunday disclosed that some public utility vehicle drivers and operators have not yet received their fuel subsidies from the government. In a radio interview, ALTODAP president Boy Vargas said that he is eyeing a meeting with Department of Transportation Secretary Jaime Bautista and Land Transportation Franchising and Regulatory Board chairperson Teofilo Guadiz III to discuss the matters on fuel subsidy. “What we are waiting for is the fuel subsidy. Authorities said that it has been released already. Some have received theirs, but others haven’t,” Vargas said. To recall, the LTFRB earlier said the fuel subsidies would be released last Wednesday, 13 September 2023 after the Department of Budget and Management approved on 8 September the release of P3 billion worth of funds to implement the Fuel Subsidy Program for transportation workers affected by rising pump prices. Vargas, however, said that some branches of the Land Bank of the Philippines are not releasing the cash cards for the subsidy due to the election spending ban in light of the 2023 Barangay and Sangguniang Kabataan Elections. “They are saying that due to the election spending ban, they won’t release the cards. We will clarify that,” Vargas said. These cards could be used by PUV drivers in select gasoline stations in exchange for fuel to mitigate the impact of the consecutive big-time oil price hikes. The post Transport group laments ‘slow’ fuel subsidy distribution appeared first on Daily Tribune......»»
UBS’s Credit Suisse takeover, ‘deal of the century’?
Did banking giant UBS make "the deal of the century" when it bought one of the world's biggest banks for a pittance as it teetered on the edge of the abyss? Switzerland's largest bank was in March strong-armed by Swiss authorities into a $3.25-billion takeover of Credit Suisse, to keep its closest domestic rival from going under. At the time, investors gasped at the risks UBS was taking on with the purchase. But by August, the bank said it would not need the billions in support offered by the Swiss government and central bank to offset any surprises that might pop up in its stricken rival's accounts. That must mean that Credit Suisse's situation was "much better than described in March", Thomas Aeschi, a member of parliament with the populist rightwing Swiss People's Party (SVP), wrote on X, formerly Twitter. UBS seemed to prove him right when it unveiled its second-quarter results on August 31. The bank posted a towering net profit of $29.2 billion for the three-month period, thanks to an exceptional gain due to the gulf between the amount paid for Credit Suisse and its book value. 'Godsend' "UBS has pulled off the deal of the century," Switzerland's Socialist Party said, maintaining the "rescue" was more of a "godsend", allowing it to snatch up a bank at a dramatically reduced rate. "If we had chosen another path, (like) a temporary or partial nationalization," said Samuel Bendahan, a Socialist MP and economics professor at the University of Lausanne, the Swiss state "would have taken on the risk, but those $29 billion would have gone to the population". Instead, the takeover has created "a monopolistic situation", he told AFP, warning that while this might strengthen UBS, it puts Switzerland in an extremely risky position if the new mega-bank were to one day face a crisis. Politicians are not the only ones taking issue with the takeover. Gisele Vlietstra, founder of the Swiss Investor Protection Association, told public broadcaster RTS that UBS's towering quarterly profit confirms that the "intrinsic value" of Credit Suisse was "far higher" than the purchase price. She said she hoped that the lawsuits brought by her association and others on behalf of thousands of Credit Suisse shareholders will help determine "the correct value" that they should be compensated. 'Nickel and dime' "UBS paid a nickel and dime" and "got rid of its main competitor" in one fell swoop, Carlo Lombardini, a lawyer and banking law professor at Lausanne University, told AFP. The coming restructuring will clearly carry risks, "but having paid just three billion, it can't go wrong", he said, slamming the option chosen by the Swiss authorities. Like UBS, Credit Suisse was listed among 30 international banks deemed too big to fail because of their importance in the global banking architecture. But the collapse of three US regional lenders in March left the firm looking like the next weakest link in the chain. The Swiss government feared Credit Suisse would have quickly defaulted and triggered a global crisis, shredding Switzerland's reputation for sound banking. But its chosen option for dealing with the issue was certainly a boon to UBS, which will now swell to manage $5 trillion of invested assets. Confidence 'evaporated' UBS chief Sergio Ermotti acknowledged in a recent interview with the SonntagsZeitung weekly that the bank had been "worried" about its competitor since 2016, and had among other things looked into the possibilities of buying it, for fear a foreign lender might snap it up. He acknowledged that Credit Suisse may have survived for a time if the central bank had injected more cash, "but it would not have been enough, since confidence had evaporated". Since the takeover announcement in March, UBS has seen its share price soar 31 percent. But the bank still faces significant challenges, Vontobel analyst Andreas Venditti told AFP. The $29 billion "is a huge one-off gain, but this is just accounting", he said, stressing that "the losses and costs will come later". The analyst, who a few months ago wondered in a note whether UBS had secured "the deal of the decade or a decade of headaches", stressed that "it's going to be a huge task". He said it would only become clear "whether it was worth it" after most of the restructuring is done three years down the line. Parts of the business are continuing to "produce huge losses", he said, warning "many things can still go wrong". Swissquote analyst Ipek Ozkardeskaya agreed, recalling that "UBS was forced" into the merger. Now it is up to the bank to "transform an 'obligation' to its advantage". The post UBS’s Credit Suisse takeover, ‘deal of the century’? appeared first on Daily Tribune......»»
GoTyme partners with Uncle Johns, expands footprint
Banking and shopping are now more convenient with GoTyme Bank partnering with convenience store chain Uncle John’s that expands the bank’s deposit and withdrawal footprint just as it hits the one millionth customer mark within less than a year. The bank said the partnership offers its users a leveled-up banking experience that was once limited to the top five percent of the country. GoTyme Bank account holders who require physical transactions can deposit and withdraw cash at any of Uncle John’s 340 branches nationwide. They can just check the nearest Uncle John’s branch in their GoTyme Bank app. The transactions are efficient, free, and done within two minutes. Albert Tinio, co-CEO of GoTyme Bank, said, “When we speak of preferred banking at GoTyme Bank, we envision a world where individuals, regardless of their background or socioeconomic status, can access the financial tools and premium services they need to secure their future. By providing seamless digital products and services supported by human touch, we deliver personal service with greater empathy.” “By revolutionizing the way we can bank in every corner, in every street, in every neighborhood, we bring GoTyme Bank closer and closer to you, with our human touch — just a few steps away from your doorstep.” The post GoTyme partners with Uncle Johns, expands footprint appeared first on Daily Tribune......»»
CV drivers awaiting petrol support
Drivers and operators of public utility vehicles in Central Visayas have to wait three more weeks for the release of fuel subsidies, according to Land Transportation Franchising and Regulatory Board regional director Eduardo Montealto Jr. He explained that the LTFRB central office was still awaiting the downloading of funds for the subsidies from the Department of Budget and Management. Likewise, Montealto said the number of beneficiaries will be finalized in a memorandum circular or a board resolution issued by the central office. About 1.6 million drivers and operators from across the country are expected to benefit from the fuel subsidy. Traditional jeepney drivers will receive P6,500, tricycle and delivery service vehicle drivers will get P1,000, and modern public utility vehicle drivers will receive higher amounts through fuel cards valid at selected gasoline stations. Montealto said Central Visayas will have the fourth-largest allocation for fuel subsidy, with the National Capital Region as the first, followed by Region 3 (Central Luzon) and Region 4A. Earlier, LTFRB-7 technical division chief Joel Bolano disclosed that the agency had anticipated the distribution of fuel subsidies by the end of August, but this did not push through due to the incomplete list of beneficiaries. Meanwhile, the Cebu chapter of the Pagkakaisa ng mga Samahan ng Tsuper at Opereytor Nationwide, or PISTON, called for the outright suspension of the excise tax on fuel. Diesel prices have risen by P12.45 in the last six weeks, while gasoline has risen by P9.15 and kerosene by P12.15. Montealto said the subsidy will be downloaded directly from the LTFRB central office to the fuel subsidy cards of the drivers and operators. Those without fuel or cash cards may transact directly with the Land Bank of the Philippines. He admitted that there are unclaimed fuel subsidies for 2021 and 2022. The post CV drivers awaiting petrol support appeared first on Daily Tribune......»»
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