Asset quality deterioration of Philippine banks has not yet peaked – IMF
Multilateral lender International Monetary Fund said the asset quality deterioration of Philippine banks has not yet peaked as the country continues to grapple with the pandemic......»»
Public sector banks doing better in managing NPAs vis-a-vis their private counterparts: FICCI-IBA survey
New Delhi [India], March 21 (ANI): Public sector banks in India are doing better in comparison to their private sector counterparts in terms of non-performing assets, a survey conducted by industry body FICCI and banking association Indian Banks' Association (IBA) found. A nonperforming asset refers to loans or advances that are on the brink of default. According to the survey, a large majority (77 per cent) of the respon.....»»
Oil prices jump as Hamas attack on Israel fuels supply fears
Oil prices rallied while the dollar and yen advanced Monday after Hamas launched a shock attack on Israel at the weekend, sparking fresh concerns about tensions in the Middle East. The crisis fanned concerns about supplies of crude from the region at a time when supply worries are already high owing to Saudi Arabia and Russia's output cuts. It has also renewed fears about the impact on inflation, with energy costs a key driver of spiking prices, giving a fresh headache to central banks as they try to ease up on interest rate hikes to avoid recessions. The surprise attack and Israel's declaration of war in response to it have left more than 1,000 dead and raised concerns that a potential broadening of the conflict could draw in the United States and Iran. "Key for markets is whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia," said ANZ Group's Brian Martin and Daniel Hynes. "Initially at least, it seems markets will assume the situation will remain limited in scope, duration, and oil-price consequences. But higher volatility can be expected." Both main contracts surged more than five percent in early Asian business before easing back as the day wore on. However, SPI Asset Management's Stephen Innes warned: "Historical analysis suggests that oil prices tend to experience sustained gains after the Middle East crises. "Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility. Safe-haven assets like gold and Treasurys, which initially see gains during such crises, tend to fade from their initial price spikes as the situation stabilizes. "But with Middle East analysts considering this to be a pivotal moment for Israel, the view looks incendiary in any current scenario." A decidedly risk-off mood also saw investors push into the safety of the dollar, which was up against the pound and euro, as well as the Australian and New Zealand dollars. The yen, considered one of the safest currencies, strengthened against the greenback, though it still remains locked around 11-month lows. Gold, another key haven, gained more than one percent. Equity markets were mixed, with Shanghai dropping on its first day back after a week-long holiday as investors continue to fret over the stuttering Chinese economy. There were also losses in Mumbai, Singapore, Manila, Bangkok and Wellington, though Hong Kong rose as it opened in the afternoon, having been closed in the morning owing to a typhoon. Sydney and Jakarta eked out gains. Tokyo was closed for a holiday. London edged up at the open while Paris and Frankfurt were lower. The tepid performance came despite a rally on Wall Street, where traders welcomed data showing a forecast-busting jump in new jobs but wage growth slowing. The "Goldilocks" figures -- neither too strong nor too weak -- lifted optimism the world's top economy can avoid a recession even as the Federal Reserve keeps rates elevated. Still, there are worries the bank will hike one more time before the end of the year, with officials determined to bring inflation to heel and keep it at their two percent target. Key figures around 0715 GMT West Texas Intermediate: UP 3.5 percent at $85.69 per barrel Brent North Sea crude: UP 3.1 percent at $87.23 per barrel Hong Kong - Hang Seng Index: UP 0.4 percent at 17,552.01 Shanghai - Composite: DOWN 0.4 percent at 3,096.92 (close) London - FTSE 100: UP 0.3 percent at 7,518.16 Tokyo - Nikkei 225: Closed for a holiday Euro/dollar: DOWN at $1.0540 from $1.0588 on Friday Pound/dollar: DOWN at $1.2195 from $1.2234 Dollar/yen: DOWN at 149.15 yen from 149.30 yen Euro/pound: DOWN at 86.49 pence from 86.52 pence New York - Dow: UP 0.9 percent at 33,407.58 (close) (Bloomberg News contributed to this story) The post Oil prices jump as Hamas attack on Israel fuels supply fears appeared first on Daily Tribune......»»
Metrobank gets global recognitions for exceptional performance
Built on trust, Metropolitan Bank & Trust Co. has been recognized as the Strongest Bank in the Philippines by The Asian Banker for the third straight year and the Best Domestic Bank in the country by Asiamoney. This attests to the Bank’s strength and reliability in putting its clients in good hands. The Bank gained these prestigious international recognitions from The Asian Banker and Asiamoney for its consistent strong financial performance across the board. In the first half of 2023, Metrobank maintained a strong 34 percent growth in net income of P20.9 billion, fueled by the Bank’s expanding assets, enhanced margins, and robust fee income growth while sustaining a stable asset quality. One of the World’s Best Companies On top of these awards, the Bank was also listed by TIME Magazine and Statista as one of the World’s Best Companies. The “World’s Best Companies” is a comprehensive list that ranks top performing companies across the globe based on employee satisfaction, revenue growth, and sustainability. “We’re honored to receive these back-to-back recognitions, especially as we celebrate the Bank’s 61st anniversary. At Metrobank, we always strive for excellence — whether it be in addressing our clients’ needs, achieving exceptional financial performance across our business, or contributing to nation-building. These awards are testaments to the steadfast commitment and relentless drive of each Metrobanker to keep Filipinos in good hands,” said Metrobank president Fabian Dee. Reliable partner through Filipinos’ financial journey For decades, Metrobank served as a reliable partner for Filipinos throughout their life journey — providing them financial services and guidance that are tailor-fit to their needs, even as they now navigate a modern and digital world. But before offering them a product or a service, every Metrobanker ensures that their clients fully and clearly understand the financial products and services they will avail of. The Bank’s mission to enable Filipinos throughout their financial journey goes beyond simply offering relevant solutions. Despite its financial success, the Bank’s priority and advocacy is to educate Filipinos first as they step into their financial journey. This is to make sure that every client makes a fully-informed financial decision and know how to protect themselves against fraud. This is made evident through Metrobank’s sustained financial education efforts — designed to equip Filipinos with reliable financial advice, fit for every life stage. In 2022, Metrobank introduced a comprehensive personal finance e-book developed to help Filipinos to become financially resilient. Meanwhile, the Bank’s Earnest app aims to simplify investing, through bite-sized lesson cards and easy-to-understand articles that cover basic investing concepts. For more advanced investors, there is Wealth Insights, an online portal that contains publicly accessible market-moving news and insights, as well as exclusive premium content that includes bespoke articles which dive deep into timely and actionable investment ideas. Meanwhile, Metrobank provides its clients with regular reminders and guidance to protect themselves against fraudulent transactions via SMS, emails, and social media posts. Today, Filipinos can easily start their financial journey by going to Metrobank’s hundreds of branches nationwide or digitally via the Earnest app. Those aiming to further grow their funds through investments can do so with Metrobank’s Online Time Deposit, which offers an interest rate of up to 4.5 percent, or through Metrobank’s wide-range of unit investment trust funds (UITF). With its commitment to give customers a safe, simple and secure experience on the NEW Metrobank app, the Bank recently introduced its interoperable QR feature, which allows on-the- go clients to enjoy more convenient fund transfers to and from other banks and e-wallets. Meanwhile, clients who are ready for a life upgrade - be it a new car or their dream home, can avail of Metrobank’s home and car loan offers with affordable rates and flexible payment terms. Growth partner for businesses Metrobank’s services transcends from customers to enterprises. When Metrobank was founded in 1962, it was primarily built to be a bank for businesses. Over six decades later, the Bank continues to stay true to its roots by offering a full suite of best-in-class financial solutions designed to serve enterprises of all sizes — from SMEs to large corporations based here and abroad. The post Metrobank gets global recognitions for exceptional performance appeared first on Daily Tribune......»»
Topping-off ceremony marks DoubleDragon milestone
Less than a year before its completion, the topping-off ceremony held Tuesday for the ASCOTT-DD Meridian Park marks a milestone for DoubleDragon, nearly five years after concluding a partnership with Singapore-based Ascott Ltd. The building structure and topmost floor of the ASCOTT at DD Meridian Park project have been completed. "ASCOTT-DD Meridian Park, with over 300 luxury serviced residences located right behind DoubleDragon Plaza, is expected to be operational and generate recurring revenues by 2024," the developer said. [caption id="attachment_175653" align="aligncenter" width="1024"] Perspectiveof Ascott-DDMeridian Park.[/caption] The five-hectare DoubleDragon Meridian Park complex is expected to fully develop by 2024 and become a mature prime hard asset portfolio. The premium luxury development ASCOTT-DD Meridian Park will complete and further enhance the mix of the whole complex as it is positioned to be the Mini-CBD (Central Business District) in the Bay Area of Pasay City. The Ascott Limited is a subsidiary of Singapore-based property company Capital Land, which operates worldwide and will manage Ascott-DD Meridian Park. DoubleDragon Plaza is LEED Gold certified and currently houses two government agency headquarters, namely PEZA (Philippine Economic Zone Authority) and TIEZA (Tourism Infrastructure Economic Zone Authority), and expects to welcome an additional third government agency soon to relocate its headquarters in the complex, in addition to many private corporate head offices. Upon completion, the DoubleDragon Plaza at DD Meridian Park as a complex will bring a distinct advantage to a variety of office tenants, whether corporations, government agencies or BPO companies, given its prime landmark location with various top food chain brands. [caption id="attachment_175654" align="aligncenter" width="603"] DoubleDragon Plaza at DD Meridian Park is designed to be a mini central business district in the Bay area given its prime landmark double corner location at EDSA, Roxas Boulevard and Macapagal Avenue.[/caption] These early, famous brands, such as Jollibee, Mang Inasal, and many others, are confirmed tenants. "DD Meridian Park is like a mini-CBD in the Bay Area, being the only complex in the area that has eight commercial banks (Landbank, RCBC, PNB, BPI, AUB, Unionbank, Chinabank and BDO), making it uniquely convenient for office tenants to complete their banking transactions all within their proximity," the developer added. These dining and banking options are further complemented by a full-sized supermarket, MerryMart Grocery, on the ground floor of DoubleDragon Plaza. The complex also houses thousands of parking slots, with a separate, conveniently located large parking area in the basement dedicated to outside customers who visit DD Meridian Park for business meetings or leisure. DoubleDragon Plaza is located in a landmark double corner location, just a 10-to-15-minute drive to NAIA airport via NAIAX, a few minutes drive to the top three convention centers in the Philippines (PICC, SMX, and World Trade Center) and not too far from other CBDs in Metro Manila. The post Topping-off ceremony marks DoubleDragon milestone appeared first on Daily Tribune......»»
DoubleDragon’s subsidiary conducts Topping Off of ASCOTT at DD Meridian Park
DoubleDragon's subsidiary conducts Topping Off of ASCOTT at DD Meridian Park as the building structure and topmost floor of the project have been completed on Tuesday, 22 August. ASCOTT-DD Meridian Park, with over 300 luxury serviced residences located right behind DoubleDragon Plaza, is expected to be operational and begin to generate recurring revenues by 2024. [caption id="attachment_174149" align="aligncenter" width="1024"] Perspective of Ascott-DD Meridian Park[/caption] The premium luxury development ASCOTT-DD Meridian Park will complete and further enhance the mix of the whole complex as it is positioned to be the Mini-CBD (Central Business District) in the Bay Area of Pasay City, Metro Manila. The Ascott Limited is a subsidiary of Singapore-based property company Capital Land, which has operations worldwide will operate and manage Ascott-DD Meridian Park. [caption id="attachment_174150" align="aligncenter" width="603"] DoubleDragon Plaza at DD Meridian Park is positioned as a mini central business district (CBD) in the Bay area given its prime landmark double corner location of EDSA, Roxas Boulevard and Macapagal Avenue in the Bay Area, Pasay City, Metro Manila.[/caption] DoubleDragon Plaza is LEED Gold certified and currently houses two government agency headquarters namely PEZA (Philippine Economic Zone Authority) and TIEZA (Tourism Infrastructure Economic Zone Authority) and expects to soon welcome an additional third government agency to relocate its headquarters in the complex, in addition to many private corporate head offices in the complex. DoubleDragon Plaza at DD Meridian Park as a complex brings undeniable advantage to a variety of office tenants whether corporations, government agencies, or BPO companies, given its very prime landmark location with various top food chain brands on the Ground Floor such as Jollibee, Mang Inasal and many others. DD Meridian Park is like a mini-CBD in the Bay Area being the only complex in the area that has 8 commercial banks (Landbank, RCBC, PNB, BPI, AUB, Unionbank, Chinabank, and BDO) making it uniquely convenient for office tenants to complete their banking transactions all within their proximity. These dining and banking options are further complemented by a full-sized supermarket, MerryMart Grocery, located on the Ground Floor of DoubleDragon Plaza. The complex also houses thousands of parking slots, with a separate conveniently located large parking area in the basement solely dedicated to outside customers who visit DD Meridian Park either for business meetings or leisure. DoubleDragon Plaza is located in a landmark double corner location, just a 10-15 minute drive to NAIA airport via NAIAx, a few minutes drive to the top 3 convention centers in the Philippines (PICC, SMX, and World Trade Center), and not too far from other CBDs in Metro Manila. The 5-hectare DoubleDragon Meridian Park complex is expected to be fully developed by 2024 and to become a fully mature prime hard asset portfolio, generating optimum level of recurring revenues by 2025. The foregoing disclosure contains forward looking statements that are based on certain assumptions of Management and are subject to risks and opportunities or unforeseen events. Actual results could differ materially from those contemplated in the relevant forward looking statement and DoubleDragon gives no assurance that such forward-looking statements will prove to be correct or that such intentions will not change. This Press Release discloses important factors that could cause actual results to differ materially from DoubleDragon’s expectations. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on behalf of the Company are expressly qualified in their entirety by the above cautionary statements. The post DoubleDragon’s subsidiary conducts Topping Off of ASCOTT at DD Meridian Park appeared first on Daily Tribune......»»
RCBC concludes share sale to Japanese bank
Yuchengco-led Rizal Commercial Banking Corp. has completed the sale of a 15-percent share to one of Japan’s largest banks as part of plans to support its long-term asset growth and digital investments......»»
JPE: Merger can’t happen
The proposed merger of the Land Bank of the Philippines and the Development Bank of the Philippines can’t be done because of legal infirmities — LandBank still holds the private shares it obtained after it absorbed the United Coconut Planters Bank or UCPB. “The problem there is how would they merge the two banks when UCPB, which was taken over by LandBank, had private shareholders, who were mostly coconut farmers,” according to Presidential Legal Counsel Juan Ponce Enrile. “Who are they to confiscate the properties of Filipinos? The Constitution says: ‘No person shall be deprived of life, liberty, and property without due process,’” he pointed out. “If President Ferdinand ‘Bongbong’ Marcos will ask my opinion on the merger, I will probably express a negative position,” Enrile said on his weekly program, Bayan ni Juan. Enrile blamed the Presidential Commission on Good Government or PCGG for mismanaging UCPB, which led to its bankruptcy, the reason for its consolidation with LandBank. “Who should be accountable for the millions of pesos lost in UCPB?” he asked. Enrile accused PCGG agents and nominees of squandering the money of the bank. Class suit appropriate “UCPB stockholders should file a class suit against the PCGG. It was not the fault of the share owners what happened to the bank, it was the fault of the government and the PCGG.” “They failed to manage the bank well considering that 72.5 percent of the bank’s shareholders were private individuals,” he said. “PCGG’s first chairman was former senator Jovito Salonga; he was then followed by a lineup of crocodiles who were responsible for the dissipation of the funds in UCPB,” according to Enrile. “UCPB, before it was taken over by the government, was a very lucrative and liquid bank. When the pilferers took over, we do not know what happened to the contributions of the coconut farmers,” he said. “Should we forget what happened, without anybody answering for it?” Enrile asked the Bureau of Internal Revenue, for instance, to run after the PCGG officials and employees who enriched themselves with the stolen money. “There were many who became rich at the expense of UCPB,” he said. “(The administration of the late President Cory Aquino) made it appear that UCPB was funded using ill-gotten money; they just did not understand the objective in creating the bank,” the former Senate President said. After the EDSA Revolt on 25 February 1986, among the first moves of the then “revolutionary government” of Aquino was to create the PCGG to investigate and recover the ill-gotten wealth. On 31 July 1987, the PCGG sequestered shares of stock in UCPB registered in the names of one million coconut farmers under the so-called Coconut Industry Investment Fund companies and those owned by tycoon Eduardo Cojuangco Jr. The sequestered UCPB shares were then worth an estimated P10 billion but have grown lately to around P70 billion, including the San Miguel Corp. shares bought with coconut levy funds. On 28 February 2001, the Sandiganbayan First Division ordered the PCGG to allow the CIIF companies and Cojuangco to vote on the sequestered UCPB shares. On 14 December 2001, the Supreme Court reversed Sandiganbayan’s decision, ruling that the PCGG had the right to vote on the sequestered UCPB shares. First universal bank UCPB, founded in 1938, was the first universal bank in the country. The PCGG argued that the sequestered UCPB shares were acquired with coconut levy funds, which were public in character. The CIIF companies and Cojuangco countered that they were the rightful owners of the sequestered UCPB shares. “The government takeover of UCPB was an injustice to the coconut farmers. Nothing has happened since to address the injustice,” Enrile said. After the funds of the bank were depleted, it borrowed money from LandBank. Enrile said the merger of LandBank with DBP will have the effect of removing the PCGG’s responsibility for the injustice done to the small farmers. “They want to erase the wrong done to the poor,” he said. “Those favoring the merger should be aware of the need to repeal the law that created the DBP to allow the transfer of its assets to LandBank. Both are chartered government enterprises,” Enrile noted. He added, “I respect the position of Finance Secretary Benjamin Diokno (in advocating the merger) but he is not a lawyer.” On 25 June 2021, former President Rodrigo Duterte signed Executive Order 142, approving the merger of LandBank and UCPB. On 14 December 2021, UCPB shareholders approved the merger plan. On 1 March 2022, the merger took effect. LandBank became the surviving entity and UCPB was dissolved. In July 2022, UCPB branches throughout the country started being converted to LandBank branches. On 1 March 2023, the merger was fully completed resulting in a combined asset base of P2.8 trillion, making LandBank the second-largest bank in the Philippines. The post JPE: Merger can’t happen appeared first on Daily Tribune......»»
Phl net external liability widens to P2-trillion
The Philippines' net external liability position widened by 29.9 percent in the fourth quarter of 2022 due to the higher net external liability positions of Non-Financial Corporations (NFCs) and the General Government (GG), as well as the lower net external asset position of the central bank (CB), the Bangko Sentral ng Pilipinas (BSP) said. The latest data from BSP showed earlier this week that the country's net external liability position rose to P2 trillion in the fourth quarter (Q4) of last year from P1.5 trillion in the third quarter (Q3) of 2022. By sector, the NFCs remained the largest net debtor in the domestic economy at P8.5 trillion in Q4 2022 from P8.1 trillion in Q3 2022 due to the sector's higher net indebtedness against the ROW. "This arose from the expansion in the NFCs' gross external liabilities and its lower external assets. The sector's external assets and liabilities were mostly comprised of loans and equity securities," BSP explained in a statement. In Q4 2022, the NFCs' liabilities-to-GDP ratio decreased slightly to 91.1 percent as the economy's growth in nominal terms exceeded the increase in the sector's gross financial liabilities. On a year-on-year basis, the NFCs' net debtor position widened due to its higher net indebtedness to the ODCs. "This resulted mainly from the rise in bank loans availed to sustain operations amid heightened consumer demand brought about by the improved economic outlook," BSP said. The GG's net debtor position widened to P8.2 trillion in Q4 2022 from P7.7 trillion in Q3 2022 due to the sector's deposit withdrawals from the CB, which it used to meet its higher operating expenditures during the last quarter of the year. "The GG remained partly insulated from exchange rate fluctuations as the majority of its liabilities were funded by the domestic sectors," BSP said. Notwithstanding the record-high debt levels, the growth in the GDP outpaced the increase in the GG's level of borrowings in Q4 2022. As a result, the sector's liabilities-to-GDP ratio for the quarter decreased to 62.7 percent. Year on year, the GG's net debtor position rose primarily due to the increase in loans from the ROW and higher GS issuances. The households (HHs) continued to be the top creditor of the economy at P11.9 trillion in Q4 2022 from P11.4 trillion in Q3 2022. The HHs' net claims on the CB, which were composed mainly of the sector's currency holdings, increased. Amid the steady increase in the HHs' assets, the sector's gross financial liabilities registered double-digit YoY growth rates for the last two quarters of 2022 – the fastest recorded since Q1 2020. This coincided with the steeper increase in prices as headline inflation accelerated to 7.9 percent in Q4 2022. The ODCs' net creditor position eased to P1.89 trillion in Q4 2022 from P1.95 trillion in Q3 2022. In Q4 2022, the sector's net claims on the GG declined due to the increase in the GG's deposits in banks. Meanwhile, the ODCs' net debtor position to the OFCs widened on the back of the OFCs' higher deposit placements with the ODCs. Similarly, on a YoY basis, the sector's net creditor position contracted, brought about by the annual increase in deposits from the HHs and OFCs. The CB's net creditor position contracted to P811.4 billion in Q4 2022 from P937.9 billion in Q3 2022 as its net financial liability positions to the ODCs and the HHs increased. "The CB's higher financial liabilities to these counterparty sectors were due mainly to the expansion in the deposits of the ODCs and currency holdings of the HHs. These developments were mitigated by the increase in the CB's net financial asset position with the GG, which resulted from the substantial decline in deposits from the NG. However, on a YoY basis, the CB's net creditor position increased mainly due to the NG's deposit withdrawals. The post Phl net external liability widens to P2-trillion appeared first on Daily Tribune......»»
Phl banking system to join global efforts slowing climate change
Banks and lenders should disclose climate-related assets as the Philippine banking system will join the global efforts to slow climate change, the new Bangko Sentral ng Pilipinas governor said. During the Philippine Economic Briefing held in Toronto Thursday morning (Eastern Time), BSP chief Eli Remolona said the Monetary Board is collaborating with scientists to create a measurement system for the bank’s climate-related assets. He explained that this system will be used to evaluate and rank banks based on their contributions to combating climate change. “We look at each kind of loan or asset and what it’s financing, and decide what it’s doing for climate change: Is it slowing down or accelerating climate change?” Remolona said in a live-streamed speech. Remolona added that BSP plans to release the scores of banks publicly and will urge lenders to disclose their assets, aiming for the act of disclosure to be effective. “We hope that the disclosure alone will do the trick,” he added. Banks combatting climate change Several Philippine banks, including the Bank of the Philippine Islands and Rizal Commercial Banking Corporation, have already taken initiatives to combat climate change. They have committed to eliminating their outstanding coal-energy loan portfolio within a specific timeframe while also focusing on increasing lending for renewable energy. Given the rise in energy prices and the increase in extreme weather events, central bank policymakers worldwide have emphasized the importance of addressing climate change and transitioning to clean energy. Target set to reduce greenhouse gas emissions The Philippines, being highly vulnerable to climate change impacts, has set a target to reduce greenhouse gas emissions by 75 percent by the end of the decade, starting from 2020 levels. Meanwhile, Remolona expressed confidence that inflation will return to its target range later this year, following a 14-year high earlier in the year. In the same speech, Remolona underscored the Philippines’ robust post-pandemic recovery and its adaptable approach to maintaining stable prices through the flexible inflation targeting framework. The inflation rate decreased to 5.4 percent in June from 6.1 percent in May. Remolona also expects inflation to stabilize and fall within the target range of 2 to 4 percent by the final quarter of this year. “We think, at least our models tell us, that we will be within the target range of 2 to 4 percent by Q4, by the last quarter this year,” he said. “The 2 to 4 percent is not an arbitrary range. That’s a range, which we think is ideal for an economy like the Philippines which is growing at full capacity,” he added. The post Phl banking system to join global efforts slowing climate change appeared first on Daily Tribune......»»
Inflation seen back to target range soon
The Bangko Sentral ng Pilipinas has expressed confidence that inflation will return to its target range later this year, following a 14-year high earlier in the year. During the Philippine Economic Briefing in Toronto Thursday morning (Eastern Time), BSP chief Eli Remolona underscored the Philippines’ robust post-pandemic recovery and its adaptable approach to maintaining stable prices through the flexible inflation targeting framework. The inflation rate decreased to 5.4 percent in June from 6.1 percent in May. Remolona also expects inflation to stabilize and fall within the target range of 2 to 4 percent by the final quarter of this year. “We think, at least our models tell us, that we will be within target range of 2 to 4 percent by Q4, by the last quarter this year,” he said. “The 2 to 4 percent is not an arbitrary range. That’s a range which we think is ideal for an economy like the Philippines which is growing at full capacity,” he added. In the same speech, Remolona said the Monetary Board is collaborating with scientists to create a measurement system for the bank’s climate-related assets. The new BSP governor said that banks and lenders should disclose climate-related assets as the Philippine banking system will join the global efforts to slow climate change. He explained that this system will be used to evaluate and rank banks based on their contributions to combating climate change. “We look at each kind of loan or asset and what it’s financing, and decide what it’s doing for climate change — is it slowing down or accelerating climate change?” Remolona said in a live-streamed speech. He added that BSP plans to release the scores of banks publicly and will urge lenders to disclose their assets, aiming for the act of disclosure to be effective. “We hope that the disclosure alone will do the trick,” he said. Banks doing their bit Several Philippine banks, including the Bank of the Philippine Islands and Rizal Commercial Banking Corporation, have already taken initiatives to combat climate change. They have committed to eliminating their outstanding coal-energy loan portfolio within a specific timeframe while focusing on increasing lending for renewable energy. Given the rise in energy prices and the increase in extreme weather events, central bank policymakers worldwide have recently emphasized the importance of addressing climate change and transitioning to clean energy. The Philippines, being highly vulnerable to climate change impacts, has set a target to reduce greenhouse gas emissions by 75 percent by the end of the decade, starting from 2020 levels. The post Inflation seen back to target range soon appeared first on Daily Tribune......»»
BSP wants banks, lenders to disclose climate-related assets
Banks and lenders should disclose climate-related assets as the Philippine banking system will join the global efforts to slow climate change, the new Bangko Sentral ng Pilipinas governor said. During the Philippine Economic Briefing held in Toronto Thursday morning (Eastern Time), BSP chief Eli Remolona said the Monetary Board is collaborating with scientists to create a measurement system for the bank's climate-related assets. He explained that this system will be used to evaluate and rank banks based on their contributions to combating climate change. “We look at each kind of loan or asset and what it’s financing, and decide what it’s doing for climate change: Is it slowing down or accelerating climate change?” Remolona said in a live-streamed speech. Remolona added that BSP plans to release the scores of banks publicly and will urge lenders to disclose their assets, aiming for the act of disclosure to be effective. "We hope that the disclosure alone will do the trick," he added. Several Philippine banks, including the Bank of the Philippine Islands and Rizal Commercial Banking Corporation, have already taken initiatives to combat climate change. They have committed to eliminating their outstanding coal-energy loan portfolio within a specific timeframe while also focusing on increasing lending for renewable energy. Given the rise in energy prices and the increase in extreme weather events, central bank policymakers worldwide have recently emphasized the importance of addressing climate change and transitioning to clean energy. The Philippines, being highly vulnerable to climate change impacts, has set a target to reduce greenhouse gas emissions by 75 percent by the end of the decade, starting from 2020 levels. Meanwhile, Remolona has expressed confidence that inflation will return to its target range later this year, following a 14-year high earlier in the year. In the same speech, Remolona underscored the Philippines' robust post-pandemic recovery and its adaptable approach to maintaining stable prices through the flexible inflation targeting framework. The inflation rate decreased to 5.4 percent in June from 6.1 percent in May. Remolona also expects inflation to stabilize and fall within the target range of 2 to 4 percent by the final quarter of this year. "We think, at least our models tell us, that we will be within target range of 2 to 4 percent by Q4, by the last quarter this year," he said. "The 2 to 4 percent is not an arbitrary range. That's a range, which we think is ideal for an economy like the Philippines which is growing at full capacity," he added. The post BSP wants banks, lenders to disclose climate-related assets appeared first on Daily Tribune......»»
Remolona new BSP head
President Ferdinand Marcos Jr. has appointed Eli Remolona as the new Governor of the Bangko Sentral ng Pilipinas, Malacañang announced on Friday. The Palace made the announcement through the Presidential Communications Office as the six-year term of a BSP Governor, currently held by Governor Felipe Medalla, will end in July. Marcos made has made the decision to appoint a new Governor to succeed Governor Medalla after extensive consultations with the Department of Finance, various government offices, private banks, and financial institutions, PCO added. "As the newly appointed governor, Mr. Remolona is expected to leverage his extensive knowledge and experience to guide the BSP in promoting financial stability, implementing effective monetary policies, and fostering a robust banking sector," PCO said. "His appointment ushers in a new era for the central bank, with great anticipation and confidence in his ability to steer the Philippine economy toward sustained growth and stability," PCO added. Mr. Remolona's impressive career includes a notable tenure of 14 years at the Federal Reserve Bank of New York, followed by 19 years at the Bank for International Settlements. During his time at the BIS, he served as the regional head for Asia and the Pacific, where he closely collaborated with the governors of 12 leading central banks in the region. His work focused on crucial issues such as financial stability, capital market development, and asset management for Asia-Pacific central banks. A distinguished academic, Remolona also served as a Professor of Finance and Director of Central Banking at the Asia School of Business in Kuala Lumpur, in collaboration with the MIT Sloan School of Management from 2019 to 2022. He taught courses on monetary policy, money, and capital markets, and digital transformation, contributing to the education and development of future finance professionals. Remolona's expertise extends beyond academia, as he held various positions of high importance in the financial industry. Notably, he served as the Chief Representative for Asia and the Pacific at the BIS, where he led a team of 35 professionals, managed a significant budget, and oversaw policy-oriented research and financial services provided to central banks and governments in the region. Remolona has published over 5,500 citations in leading journals in economics and finance. His contributions to the field of finance are further highlighted by his role as an Associate Editor for Finance of the International Journal of Central Banking from 2005 to 2022. His journey in economics began in 1972 when he served as an economist at the Presidential Economic Staff and Development Management Staff, under Alejandro Melchor, then Executive Secretary of President Ferdinand E. Marcos. He also joined a high-level economic mission to the Philippines, advising President Ferdinand E. Marcos on structural reforms. Throughout his career, he has also worked as a consultant for esteemed institutions such as the Asian Development Bank, the International Monetary Fund, and the World Bank. Before his appointment as Governor of the BSP, Remolona served as a Member of the Monetary Board of the BSP since August 2022. The post Remolona new BSP head appeared first on Daily Tribune......»»
Asian markets struggle to match Wall Street as inflation data looms
Markets were mixed in Asia on Tuesday, with investors awaiting the release of key US inflation data later in the day that could play a big role in the Federal Reserve's keenly anticipated interest rate decision. Expectations are for the US central bank to hold fire at the end of its meeting Wednesday -- after 10 straight hikes -- as data suggested the economy remained healthy but was showing signs that the tightening measures are kicking in. Analysts said bets are on a pause for another increase next month, though they warned that a forecast-busting reading on the consumer price index could force officials to keep lifting. Optimism that borrowing costs will be held -- traders have priced in a 20 percent chance of a hike -- has helped push stocks higher this month, with the S&P 500 now in a bull market, having risen 20 percent from its October lows. "The committee is expected to skip the June meeting but still pair that with hawkish communications to counter any sense that a June pause trumpets the end of their hiking campaign," said SPI Asset Management's Stephen Innes. "However, a big upside surprise in today's CPI could move the rate hike needle for June up to and above 50-50." After a strong performance on Wall Street, Asia struggled to pick up the baton. Tokyo, Seoul, Wellington and Taipei rose but Hong Kong, Shanghai, Sydney, Singapore, Manila and Jakarta were in negative territory. The Fed decision comes as central banks around the world continue to struggle in their battle against inflation, which remains well above their two percent targets. The European Central Bank is expected to unveil another increase Thursday despite the eurozone dipping into recession, while the Bank of Japan is tipped to stand pat when it meets Friday. Canada and Australia announced increases last week. But China on Tuesday announced a small cut in its short-term lending rates as authorities try to kickstart a recovery in the economy, which has run out of steam after an initial burst seen after the lifting of zero-Covid restrictions. The move comes after figures showed inflation remained subdued and saw the yuan drop against the dollar. China's ongoing problems remained a weight on the crude market as investors fret over the impact on demand, even after Saudi Arabia's surprise decision to slash output by a million barrels a day next month. WTI is down about 15 percent this year Brent has lost around 13 percent. Both contracts edged up Tuesday but made little headway into the four percent losses suffered the day before as Goldman Sachs slashed its price forecast for the third time in six months. - Key figures around 0230 GMT - Tokyo - Nikkei 225: UP 1.6 percent at 32,946.49 (break) Hong Kong - Hang Seng Index: DOWN 0.6 percent at 19,296.53 Shanghai - Composite: DOWN 0.4 percent at 3,217.54 Euro/dollar: UP at $1.0772 from $1.0762 on Monday Pound/dollar: UP at $1.2522 from $1.2510 Dollar/yen: DOWN at 139.49 yen from 139.56 yen Euro/pound: UP at 86.04 percent from 86.00 pence West Texas Intermediate: UP 0.2 percent at $67.26 per barrel Brent North Sea crude: UP 0.4 percent at $72.11 per barrel New York - Dow: UP 0.6 percent at 34,066.33 (close) London - FTSE 100: UP 0.1 percent at 7,570.69 (close) dan/dva © Agence France-Presse The post Asian markets struggle to match Wall Street as inflation data looms appeared first on Daily Tribune......»»
Fitch: Philippine banks to remain resilient
Fitch Ratings believes loan growth and asset quality of Philippine banks will remain resilient amid higher interest rates and persistent global macroeconomic uncertainties......»»
HSBC stays intact, share owners vote
Global lender HSBC on Friday overwhelmingly defeated an activist proposal supported by its largest stakeholder, Chinese insurer Ping An, to spin off the bank’s Asia business. Of the shareholders who voted, more than 80 percent opposed the call to break up the Asia-focused bank, HSBC said in a statement. The vote took place during HSBC’s annual general meeting or AGM in Birmingham, central England. Last March, HSBC assured it is further strengthening its consumer banking business in the Philippines. The AGM came at the end of a week in which the London-headquartered bank posted a surge in quarterly net profit, boosted by rising interest rates and its rescue of the UK arm of failed US lender Silicon Valley Bank. “A large majority of HSBC shareholders voted overwhelmingly to support the board,” HSBC chairman Mark Tucker told the meeting. “That draws a line (under) the debate over the structure of the bank.” Speaking earlier at the meeting, Tucker insisted the proposal to split the bank was not beneficial. “We concluded that the alternative structural options would materially destroy value for shareholders, including putting your dividends at risk. This remains our unanimous view today,” he said. But Ping An, which owns more than 8 percent of HSBC, argued that the lender lags behind international peers and that a recent improvement in performance was tied mainly to rising interest rates, which it claims have peaked. The US Federal Reserve this week hinted that it would pause a policy of lifting borrowing costs aimed at cooling inflation. The European Central Bank on Thursday delivered a smaller interest rate increase than recently as higher borrowing costs begin to take their toll, but said it had “more ground to cover” in fighting red-hot price increases. “It is necessary for HSBC to push for structural reform to fundamentally address HSBC’s underlying market competitiveness issues,” Michael Huang, chairman and CEO of Ping An Asset Management, said recently. Strategic restructuring pushed Ping An had called on HSBC to engage in a “strategic restructuring” that would see it create a separately-listed bank headquartered in Hong Kong. Huang said the proposal would allow the bank to retain control over a separate Asia business, adding that management had “exaggerated many of the costs and risks” associated with a split. HSBC was among a number of major banks to cancel dividends early in the Covid-19 pandemic after an order from the Bank of England, a move that riled some Hong Kong investors. Some retail investors had cited the cancellation of the dividend as a reason to back the spin-off proposal. Friday’s shareholder meeting faced disruption from climate protesters, a common feature this year at annual general meetings being held by major UK companies. “You are happy to profit while the world burns. HSBC stop the greenwash,” one protester shouted as the meeting got underway and before security removed some demonstrators. Environmentalists are pushing for banks to stop funding fossil fuel projects, arguing that while they continue to do, their pledges to help tackle climate change are acts of “greenwashing”. The post HSBC stays intact, share owners vote appeared first on Daily Tribune......»»
Fitch warns of asset quality risks as unsecured consumer loans rise
The projected rise in unsecured consumer loans of Philippine banks raises the prospects of asset quality problems if economic growth slows, according to Fitch Ratings......»»
Women initiate change within rigid environment
Women have the capacity to break ground due to their inherent strength, UnionBank executive vice president and chief human resources officer Michelle Rubio said in a forum. “Women have to be honored for being able to do many things, so we can be that change that we want to see for the world,” she said, naming Rosa Henson, a comfort woman in World War II, as one of her key influences. Having that drive for progress is the most crucial factor in climbing the so-called corporate ladder, she added. “As one of the leading banks in the Philippines, UnionBank guarantees a dynamic working environment that adapts to the new demands of the industry,” Rubio underscored. ‘Unlearning’ an asset Despite being open to change, Rubio emphasizes the importance of being intentional. For instance, Rubio has started taking steps to realize her dream of becoming an entrepreneur when she retires from her corporate career. No matter the extent of ambition, intention and drive are key ingredients to achieving them, Rubio said. “My juniors and peers have taught me the importance of unlearning, relearning and learning. We are a product of our past but what is important is moving forward and having that inertia for change. This is not just about the company, but also within us. We need to be adaptive and open.” Rubio said. Constant change plays big role Having gone through it herself, Rubio said that change plays a big role in her current job. Being in human resources, she handles the transformational aspect of UnionBank’s employees. As its chief human resources officer, she harnesses employees’ strongest assets to unleash their full potential. Prior to her job in the bank, Rubio was a practicing engineer. In the process of dabbling in quality assurance and manufacturing, she discovered a talent for managing people — a pivotal moment in her career. My juniors and peers have taught me the importance of unlearning, relearning and learning. “Trust the capabilities of people to contribute, because everyone wants to do great things. Create a space for them to flourish and grow and enable that dynamic culture to happen. This is the culture of the bank: it’s innovative, it’s dynamic, it’s agile,” she said. The post Women initiate change within rigid environment appeared first on Daily Tribune......»»
HSBC’s largest shareholder outlines bank break-up strategy
HSBC's largest shareholder ramped up pressure on the bank to break up its business on Tuesday, saying it was underperforming and has failed to "address key business model challenges". In a rare public statement, Chinese insurer Ping An said HSBC was lagging behind international peers and a recent improvement in performance was tied to rising interest rates, which have now peaked. Ping An outlined revised proposals for restructuring that highlight HSBC's precarious position as US-China tensions rise, with some observers doubting whether Europe's largest lender can continue to straddle East and West. "It is necessary for HSBC to push for structural reform to fundamentally address HSBC's underlying market competitiveness issues," Michael Huang, chairman and CEO of Ping An Asset Management, said in a statement. Ping An last year suggested a series of ideas for HSBC to separate its business but Huang said the bank's management had "exaggerated many of the costs and risks" associated with a split. The previous proposals involved spinning off the bank's Asia business into a separate entity listed and headquartered in Hong Kong, and a consolidation of the bank's interests in the region, Huang said. "HSBC Group has drained HSBC Asia of dividends and growth capital to support its relatively low return non-Asia businesses," he added. "In effect, HSBC Asia has been subsidizing the group's relatively low return non-Asia businesses." The revised proposals called for London-listed HSBC to engage in a "strategic restructuring" that would see it create a separately listed bank headquartered in Hong Kong. Huang said the proposal would allow HSBC to retain control over a separate Asia business. "Secondly, each structural solution would deliver material benefits to the group's shareholders including valuation unlock, capital relief, long-term efficiency gains, geopolitical risk mitigation and competitive repositioning," he added. However, HSBC said the proposed restructuring alternatives would not "deliver increased value for shareholders. Rather they would have a material negative impact on value." "We remain clear that our current strategy is the fastest way to deliver returns," the bank said in a statement. HSBC was among a number of major banks to cancel dividends early in the Covid-19 pandemic after a de facto order from the Bank of England -- a move that riled some Hong Kong investors. Some retail investors have cited the cancellation of the dividend as a reason to back Ping An's spin-off proposal. The post HSBC’s largest shareholder outlines bank break-up strategy appeared first on Daily Tribune......»»
Banks’ assets quality resilient, says Fitch
Higher interest rates brought about by the aggressive hikes delivered by the Bangko Sentral ng Pilipinas are unlikely to significantly affect the asset quality of Philippine banks, according to Fitch Ratings......»»
BSP rediscount loans reach P15.3 billion in 2022
Rediscounting loans extended by the Bangko Sentral ng Pilipinas to local banks for their capital asset expenditures amounted to P15.3 billion in 2022, a dramatic increase from a paltry P6.12 million in 2021......»»