Basic deposit accounts in banks reach P4.7 billion
The low cost, no frills deposit accounts reached P4.7 billion last year and may rise further with the continued rollout of the Philippine Identification System in the country amid the COVID-19 pandemic, according to the Bangko Sentral ng Pilipinas......»»
Basic deposit accounts in banks reach P4.7 billion
The low cost, no frills deposit accounts reached P4.7 billion last year and may rise further with the continued rollout of the Philippine Identification System in the country amid the COVID-19 pandemic, according to the Bangko Sentral ng Pilipinas......»»
Subscription plan promises boosted replies at X, formerly Twitter
X on Friday unveiled a $16-a-month subscription plan allowing users who pay more to get the biggest boost for their replies posted at the platform formerly known as Twitter. The "Premium+" plan is ad-free and designed to provide "the largest reply boost" at X, the company said in a post. The plan builds on features offered in a Blue subscription plan costing $3 monthly and a Premium Plan priced at $8 monthly, according to X. Listed features of Premium+ include a blue tick next to names in profiles along with "a visible ID verification label," according to X. The platform recently started charging new users in New Zealand and the Philippines for basic features such as posting messages in a trial aimed at reducing spam. Musk has suggested charging all X users, but the idea was widely panned. Industry analysts said it would make X even less appealing to advertisers. Musk has made a number of controversial changes to the social media firm's management and product since he acquired Twitter a year ago for $44 billion. In the days after his purchase, Musk quickly fired many Twitter executives and took the publicly traded company private. He also laid off most of the San Francisco-based company's workers, cutting ranks to fewer than 1,500 from 8,000. In the months following his takeover, Musk gutted content moderation, restored accounts of previously banned extremists, and allowed users to purchase account verification, helping them profit from viral -- but often inaccurate -- posts. Musk defended such changes in the name of free speech. Over the past year, the platform's advertising business partially collapsed as marketers soured on X. Musk started charging for features once free at Twitter, such as blue tick marks originally intended as badges of authenticity, in an effort to make money from subscriptions. X is tinkering with video and audio calling at the platform formerly known as Twitter, according to a recent post by Musk. Musk in July rebranded Twitter as X, saying it would become an "everything app" inspired by China's WeChat that would allow users to socialize as well as handle their finances. The post Subscription plan promises boosted replies at X, formerly Twitter 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......»»
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......»»
More rice, please
The distribution of confiscated rice to approximately 5,000 underprivileged beneficiaries in the Zamboanga Peninsula on Tuesday, led by President Ferdinand R. Marcos Jr. and Department of Social Welfare and Development Secretary Rex Gatchalian, marked a significant step forward. The 5,000 bags of Jasmine rice, which accounts for approximately 11.8 percent of the total 42,180 bags of imported rice valued at P42 million confiscated by the Bureau of Customs-Port of Zamboanga in a raid on a warehouse in Barangay San Jose Gusu, Zamboanga City on 19 May, effectively addressed the immediate food requirements of some of the most impoverished beneficiaries residing in the municipalities of Tungawan, Sibuco and Zamboanga City. More indigents in the province struggling with food insecurity and lacking access to nutritious meals await the distribution of the remaining 37,180 bags. They, too, want to be assured of sustenance during times of hardship. A matter of concern, however, is the possibility that unscrupulous government officials may repurpose confiscated smuggled rice for their personal gain, instead of utilizing it for the intended public welfare. Over the weeks since August, a total of P940 million worth of smuggled rice was seized by authorities. In three warehouses in Bulacan, P500 million worth of smuggled rice was found. This was not confiscated though. The warehouses were just padlocked, and we are in the dark if charges were filed against the owners. An estimated P40 million worth of smuggled rice from Vietnam, Thailand, and China was seized in Bacoor, Cavite, and Pulang Lupa, Las Piñas, on 14 September. On 18 September, government agents raided warehouses in Tondo, Manila, where P400 million worth of suspected smuggled rice and other imported products were found. Confiscating smuggled goods, such as rice, should allow the government to tackle the illicit trade while ensuring fairness in the distribution of the seized items. We ought to exempt our country from the roster of developing nations because it is where the poor bear a disproportionate burden due to smuggling activities, making it imperative to prioritize their welfare over the interests of greedy traders in cahoots with corrupt officials. By ensuring a fair distribution of nearly a billion pesos worth of confiscated smuggled rice, the national government reduces the demand for illegal markets, discourages ongoing smuggling activities, and encourages legal channels for food distribution. Rather than going uneaten inside sealed warehouses or having them destroyed, distributing them prevents waste and maximizes their value for the benefit of those in need. While distributing them can address immediate food needs, it should only be part of a broader strategy to address poverty, promote sustainable livelihoods, and improve access to education, healthcare, and economic opportunities for disadvantaged populations. In bridging the gap between the haves and have-nots, ensuring that even the most vulnerable members of society have access to basic necessities has taken off in Zamboanga. We keep our right fingers crossed that the distribution of hundreds of thousands of 25-kilo bags of smuggled rice reaches the tables of underprivileged Filipinos to signal genuine public goodwill and trust in authorities. On the left hand, we do the same thing that the government prioritizes efforts to identify and hold corrupt officials involved in smuggling accountable, ensuring that they do not benefit from the distribution of seized rice. The post More rice, please appeared first on Daily Tribune......»»
The Advantage of Adopting the Right Digital Tools for your Business
Amid the uncertainty in customer behaviors and trends from the crisis, this much is clear: updating the business for a digital-first world, led by purpose, is now a must for almost every company. To do so, they must determine where new business value exists in the new normal, what digital business models will capture it, and which tools and behaviors will support the adaptability and resilience that these models require. On this section, we talked to the creators behind the award-winning platform made for businesses like yours. The Digital Advantage Companies need an understanding of 3rd Platform technologies to capitalize on improved decision-making and to deliver enhanced, customized experiences to stakeholders. The rapid acceleration of 3rd Platform technology adoption means that corporates need to actively be looking for ways to improve their operational efficiency and customer service, otherwise, they will be in danger of falling too far behind digitally-native competitors to ever catch up. Efficiency Past recessions show that controlling costs by improving operational efficiency—a task for which digital solutions are perfectly suited for—is more effective in sustaining businesses through financial turbulence than traditional cost-cutting measures alone. The biggest efficiency play is automation. Streamlining operations and automating manual processes result in greater speed, less waste and more focus on revenue-generating activities. The economics of automation is simple: the same work is performed faster and with fewer mistakes, while human capital resources can be redeployed to higher-value tasks or to fill critical gaps. Convenience Company bank accounts are available in any device, the only things you need are internet connection and a few taps on the screen. This brings about an increase in customer satisfaction as they are able to constantly keep track of their account balances and manage the information on their personal profile (i.e. add new mailing address, e-mails, telephone numbers, etc.). In addition to this, there is no need to go to the bank to get checks as they can be instantly sent via email. 24/7 Reliability Online banking services are available 24/7 all year round, even on weekends. There is no need to line up and wait for the bank to open in order to conduct certain operations. This is a huge advantage that comes with digital solutions Security With all the recent news about data breaches, you might be wondering about the security of mobile and online banking. Security is top priority for banks when choosing whether or not to offer online banking. All banks use “Pentagon-grade” encryption technology and sophisticated firewalls. Mandatory security upgrades are required by bank regulators, so you can be confident that keeping your information secure is one of your bank’s utmost priorities. As digital transactions increase and productivity grow, companies must take proactive steps to protect their data privacy and security and adopt models that give them governance over their data. Today’s Platform Driven Solutions Self-service account management, bills payment and electronic fund transfers are considered the basic banking functions that each business should have. Account management allows viewing of account balances and transaction history without going to the bank. All these were made easy and accessible, by just logging into UnionBank’s The Portal app. Bills Payment, on the other hand, gives businesses access to a large list of billers. They can pay their water, electricity, telco, and other utilities online. BIR ePayment is also available, allowing users to pay taxes online. If the company is an accounting firm, they can also pay for their client’s taxes on The Portal app. Electronic fund transfers save companies time and reduce their risk exposure. Just upload the batch crediting file on the platform and it automatically disburses it to their recipients. Clients can also set up their recipients in UnionBank Business Banking so they receive email and SMS notifications every time they are credited. All these are made possible without stepping inside a branch. Batch Electronic Funds Transfer is also now made available for UnionBank Transfers and PESONet. This enables the streamlining of bulk account to account transfers to another UnionBank account or to other bank accounts. This has highlighted the ease and convenience of going digital to corporate clients versus processing transactions through the traditional way of banking over-the-counter or paying via cheques. Going beyond the basic functions of a normal digital banking tool, The Portal’s self-enrollment feature allows businesses to conveniently self-enroll their nominated accounts and users through the simple enrollment steps. Once completed, access to The Portal is granted and clients may enjoy the convenience of processing their funds transfer instructions online. In addition, there is an option to initiate the enrollment of the beneficiary accounts individually or in bulk. This can be essential for clients that need a payee maintenance feature to ensure that the initiated transactions are only credited to enrolled account. With the convenient, hassle-free and straight-through processing in The Portal, businesses can easily push fund transfers in the comfort of their own homes or offices. This pandemic serves as a widespread test case for the effectiveness of these digital solutions, many of which will be permanent fixtures and lead to long-term changes for many businesses. Organizations that embrace digital solutions have greater resiliency in the face of adversity and are way ahead of the competition, which will enable them to recover faster and pivot from playing defense to chasing growth. While many believe it is too idealistic to have a good workplace culture and excellent compensation, many jobseekers significantly consider these two factors when applying for a job, according to two studies. The 2021 Employee Experience Survey by Willis Towers Watson reported that 89 percent of respondents believe a positive employee experience is a crucial driver of engagement, while a 2023 survey from the online recruitment platform JobStreet found that 53 percent of Filipino job seekers would like to know the salary range offered while still in the recruitment process. Aside from great benefits and compensation, employees in the IT industry pointed out that a good work culture and environment, as well as training programs, are the top priorities of job seekers. Vanessa Liwanag, business development director at Yondu, acknowledged the company’s role in her growth, “Yondu has helped me develop my leadership, decision-making, and communication skills through its effective leadership training programs. The company also helped me grow personally because of its hybrid setup. This allows me to have a work-life balance. I can still care for my family and health while contributing to the organization.” Leather, who specializes in securing networks from vulnerabilities, noted that training programs are essential as trends continuously evolve. IT professionals need to keep up in order to be efficient. Steph, a software solutions engineer, echoed this, adding that since the industry is highly competitive and fast-paced, getting equipped with the right skills and knowledge is essential. Grace, a malware researcher, said that one advantage in the IT field is that since it’s a broad industry, there is always much to learn and room for improvement. Yondu, an IT solutions company wholly owned by Globe, offers all these benefits and compensation, a good working environment, and training programs to Yondudes, a nickname for its employees. Competitive pay and benefits are OK for Yondu as the company ensures this through regularly benchmarking market data and best practices. There are also tailor-fitted rewards programs according to talent segments. Yondu also ensures its employees remain competitive and well-equipped by industry standards through various training, reskilling, and upskilling programs to hone their skills in the constantly changing tech industry. Despite the fast-paced sector continuously evolving, Yondu still values work-life balance and provides programs to support Yondudes’ well-being further. “What sets Yondu apart from other organizations is its genuine focus on understanding and supporting its employees,” said Javen Babac, lead application support specialist at Yondu. “The company recognizes that employees perform their best when they feel valued and supported, and this philosophy sets Yondu apart by fostering a positive and inclusive work environment. The organization’s commitment to understanding its employees and providing the necessary resources demonstrates its dedication to employee well-being and sets a strong foundation for professional growth and job satisfaction.” The post The Advantage of Adopting the Right Digital Tools for your Business appeared first on Daily Tribune......»»
BSP urges free service fee for small fund transfers
The Bangko Sentral ng Pilipinas plans to issue a payments framework aimed at removing transaction fees for small fund transfers. BSP Governor Eli Remolona Jr. on Thursday said central bank officials have also been talking with e-wallet firms and other digital financial services providers to create the framework which will require financial firms to offer free fund transfers for small amounts. He said only three major banks are offering such service so far amid the lack of formal guidelines and directive from the BSP. Shame major banks “We’re trying to shame other major banks into following the same service. We’re formalizing it through a payments framework, and we’re in touch with GCash, Maya and other digital financial services providers,” Remolona said Thursday during the Global Policy Forum on Financial Inclusion organized by the Alliance for Financial Inclusion at the Philippine International Convention Center in Pasay City. With zero fees for small fund transfers, Remolona said more Filipinos would be encouraged to avail of banking services like deposit accounts, build wealth, and promote equitable financial service. “In general, we want to make sure the poor do not subsidize the rich. If you have a credit card and a big spender, you can get rewards. Guess who pays for the rewards? It’s the poor guys who only use small amounts in their transactions and get charged,” the BSP governor said. As more Filipinos own deposit accounts even with small funds, Remolona added banks and other lenders can strengthen their capital capacities. “We’ve found that when deposits are small, they become sticky and depositors don’t run away at the first sign of trouble. If you can lend to the poor, you have a more diversified portfolio and so it’s safer for banks,” the BSP governor said. Manila Manifesto During the Global Policy Forum on Financial Inclusion attended by over 700 foreign bankers and other stakeholders, Remolona announced the Manila Manifesto. This is a commitment by the Philippines to collaborate with other state-members of the Alliance for Financial Inclusion or AFI on developing global standards for making financial products and services safe, accessible and affordable for all. AFI reported 1.4 billion people worldwide still cannot access financial services due to a range of factors, such as financial illiteracy and lack of Internet connection and digital banking platforms. “In the 15 years since AFI was created, with substantive support from the BSP, our members have brought over 840 million people into the financial system via enlightened national policies and strategies on financial inclusion,” Dr. Alfred Hannig, AFI executive director, said. The post BSP urges free service fee for small fund transfers 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......»»
RCBC’s card use drives P6-B H1 profit
Universal lender Rizal Commercial Banking Corp., or RCBC, recorded a net income of P6.2 billion in the first half, mostly due to increased credit card transactions. Gross income jumped by 10 percent to P23.5 billion in the first half from the same period last year, with income from credit card transactions surging by 48 percent, the bank reported to the Philippine Stock Exchange said. Bill collections grew 54 percent which RCBC attributed to “personalized and data-driven campaigns.” Loans increased by 14 percent as the bank said consumer and corporate lending “sustained their momentum toward an 18 percent growth.” Meanwhile, total deposits increased by 22 percent, reflecting the 17 percent growth in low-cost current and savings accounts. RCBC attributed the higher savings to its growing number of depositors in “retail and small and medium enterprises outside Metro Manila.” Basic banking via app Through its improved mobile app RCBC Pulz, the bank said clients can avail of its basic banking services and investing products in a more convenient process. “RCBC continues to perform better than the industry as we focus on high-growth segments and equip our people with digital and data science tools,” RCBC president Eugene Acevedo said. Total assets expanded by 17 percent to P1.2 trillion, resulting in a better-annualized return on assets ratio of 1.11 percent. Meanwhile, annualized return on equity improved to 11.1 percent. RCBC said it expects capital ratios to improve by over 300 basis points through the completion of the P27-billion capital infusion from Japan’s Sumitomo Mitsui Banking Corp. The post RCBC’s card use drives P6-B H1 profit appeared first on Daily Tribune......»»
PBBM administration to raise $2b from Retail Dollar Bond
The Marcos administration remains committed to raising $2 billion from its first-ever Retail Dollar Bond this September to support the government’s budget. In a weekly briefing, National Treasurer Rosalia de Leon said the country initiated the marketing process for its retail dollar bonds scheduled for September to make government securities available to individual retail investors. “We’re doing all the marketing now, and if the markets are favorable—that’s always our coletilla—around September maybe,” De Leon told repeaters. De Leon mentioned that efforts were underway to simplify the acquisition of retail dollar bonds. As part of this initiative, negotiations were taking place with certain banks to waive the fees associated with opening dollar accounts. The objective is to enhance convenience for investors interested in purchasing these bonds. “We lowered the minimum denomination,” De Leon said, adding that interested investors can invest as low as $200. “It’s also tax-exempt,” De Leon added Meanwhile, Finance Secretary Benjamin E. Diokno clarified that retail dollar bonds are accessible to all individuals, not limited exclusively to Overseas Filipino Workers (OFWs). “Being a Filipino residing abroad is not a requirement. Filipinos residing in the country can also invest. If you have a dollar account, it will be automatically converted to dollars,” Diokno said. Furthermore, Diokno stated that the issuance of yen-denominated bonds is being considered, while the potential introduction of a retail euro bond is currently being discussed. The potential retail euro bond is intended to cater to the increasing demand from Filipino investors residing in Europe. The post PBBM administration to raise $2b from Retail Dollar Bond appeared first on Daily Tribune......»»
BSP, SM Store open coin deposit machines
To improve coin circulation in the Philippines, the Bangko Sentral ng Pilipinas and SM Store deployed the first of Coin Deposit Machines or CoDMs at the SM Mall of Asia. This is the first of 18 coin machines that will be available at the SM Stores and SM Supermarkets. The BSP-initiated project aims to boost its Coin Recirculation Program and to promote financial inclusion and digitalization. With these machines, SM shoppers can now conveniently deposit their coins and credit the corresponding value to their e-wallets, or convert them to vouchers redeemable at SM Store outlets. Coins’ intrinsic value “Most of the time, we put our loose change in our wallets, in piggy banks, inside drawers, or worse, used as a washer or thrown away. It is time that we realize that coins are as equally important as our bills and the money we have in our bank accounts and e-wallets,” SM retail vice president for Treasury Jeffrey Ang said. “It is our hope that as one SM family, we can help address the looming coin issues in the country by using these CoDMs deployed in our malls,” he added. According to the BSP, there were 11.1 billion pieces of coins in circulation since December 2005, 6.7 billion pieces of which were low-denomination coins. This brought coins per capita to 121, way above the Association of Southeast Asian Nations standard of 50 pieces. However, the demand remains unfilled in many parts of the country because coins are not being recirculated, or used regularly by the public. “Hopefully, this will help solve the artificial coin shortage commonly experienced in the provinces. More enhancements are also expected as we roll out this game-changing project,” BSP Governor Felipe Medalla said. The post BSP, SM Store open coin deposit machines appeared first on Daily Tribune......»»
Economic managers court Singaporeans
The country’s economic managers on Thursday boasted of the government’s aggressive infrastructure development plan and strong consumer spending among Filipinos post-pandemic as they hope to attract more investments from Singaporean firms. In their second economic briefing in Singapore, Philippine economic managers updated the foreign business community on the 194 infrastructure projects approved by the National Economic and Development Authority in March. NEDA Secretary Arsenio Balisacan shared 93 of them are already being built, of which 19 are expected to be completed this year and 61 in the next five years. “These investments will ease the process of doing business, expand market opportunities and foster job creation and innovation,” Balisacan said. The infrastructure program totaling around P8.3 trillion includes transportation, energy, water, agriculture and digitalization projects, among others. Committed to increase infrastructure spending Under the current administration of President Ferdinand Marcos Jr., Balisacan said the government has committed to increase infrastructure spending ranging from 5 percent to 6 percent of the gross domestic product or at least $20 billion to $40 billion each year. “In the previous administrations, we didn’t have ready-to-implement infrastructure projects. We had to develop them ourselves. Now there are such, with feasibility studies and some detailed engineering, so you can come in and invest,” Finance Secretary Benjamin Diokno added. Through public-private partnerships or PPPs in the infrastructure industry, Balisacan said the government can improve other basic services to the people. “We’re pushing for PPPs to support certain programs and have the rest of the funds support other basic programs such as social protection, health and education.” To boost funds for infrastructure spending, Diokno said the government has proposed the Maharlika Investment Fund, a sovereign wealth fund which could have sub-funds for specific industries, such as those contributing to fight climate change. Economy expanded the most in Asia Meanwhile, Bangko Sentral ng Pilipinas deputy governor Francisco Dakila Jr. said the Philippine economy expanded the most in Asia at 6.4 percent in the first quarter this year, higher than Malaysia’s 4.9 percent, India’s 4.6 percent and Thailand’s 2.8, due to strong consumption of goods and services. Dakila reported sales from hotels and restaurants jumped by 23.8 percent and 30.1 percent from automobile shops. He added domestic consumption was also partly driven by the continued flow of remittances from overseas Filipino workers which increased by 3 percent in the first quarter despite global inflation. While the banking sector has seen moderate growth, Dakila said financial firms remain stable and optimistic for more clients as more Filipinos have been able to find jobs, with the unemployment rate falling to 4.5 percent in April from 5.7 percent in the same month last year. “We see that the banking sector is pretty much stable. The central bank did an outlook survey for the non-performing loans ratio showing it rising to 8 percent during the pandemic and that didn’t happen. Now it’s 3.5 percent, so banks are well capitalized. Investments in the financial sector should be very attractive.” Middle-income society Balisacan said the government aims to achieve economic growth of at least 6.5 percent each year and make the country a predominantly middle-income society by 2040. To achieve this goal, Balisacan said the government will be expanding trade agreements with other countries, including members of the Association of Southeast Asian Nations (ASEAN). “His marching order to us is to expand the opportunities in trade with other countries. The Philippines has the lowest number of bilateral agreements in ASEAN. The country has improved employment but the quality of employment is below par.” The post Economic managers court Singaporeans appeared first on Daily Tribune......»»
PSBank’s Q1profit up 10%
Metrobank Group’s thrift arm Philippine Savings Bank grew its net income to P976.88 million or 10 percent higher compared to the same period last year due to more auto loans and lower operating costs in the first quarter of this year. Net interest income increased by eight percent to P2.95 billion as gross loans grew four percent to P116 billion, with double-digit growth in auto loans at 13 percent, according to the bank’s disclosure to the Philippine Stock Exchange on Monday. Consumer market needs “Even as interest rates and inflation remain high, elevated consumer spending continues to persist, fueling significant retail loan demand for the early part of 2023. This works well for PSBank which primarily caters to the needs of the consumer market, specifically for their auto and mortgage loan requirements, among others,” PSBank president Jose Vicente Alde said. Non-performing loans ratio improved to 3.2 percent from 5 percent, as the bank processed higher-quality loans. Meanwhile, deposits reached P209.81 billion, mostly from low-cost current accounts and savings accounts at P73.29 billion. Service fees grew by 7 percent to P464.60 million. Operating expenses were down by 5 percent to P2.19 billion, which Alde attributed to “continued cost optimization strategies.” These brought the bank’s total assets to P255.76 billion and secured a high capital for the bank above the minimum requirement of the Bangko Sentral ng Pilipinas. Capitalization at P37.8B PSBank’s capitalization stood at P37.82 billion, with a total capital adequacy ratio at 24.6 percent and a common equity tier 1 ratio at 23.8 percent. PSBank was the only Philippine thrift bank included in the Forbes’ World’s Best Banks for 2023. Banks were ranked based on customers’ satisfaction with customer service, digital services, financial advice and trust. “As we remain cautiously optimistic for any possible short-term volatility attributed to overseas developments, we are equally confident of the organization’s ability to adapt to challenges, pursue business opportunities, and deliver well for our customers and stakeholders,” Alde said. The post PSBank’s Q1profit up 10% appeared first on Daily Tribune......»»
Ripe for financial inclusion, Filipinos crave information
Information must spread wider regarding the gains of opening a bank account to tap the huge pool of potential depositors, particularly in the booming digital banking sector, a report by global market researcher McKinsey and Company said. With an effective information drive on opening digital bank accounts, McKinsey said domestic lenders can boost their growth by tapping the bankable population, which is expected to expand by 30 percent to 85 million by 2030, along with owners of small and medium enterprises. “’The Philippines has an estimated 15 million informal entrepreneurs and self-employed workers. Meanwhile, retail lending is heavily concentrated in a narrow band of wealthy households,” according to the report. The reluctance of the unbanked stems mainly from the lack of information. “The public’s limited information about the banking system is a major challenge. The opportunities presented by the vast market for digital finance far outweigh the risks, but a keen awareness of the challenges facing fintech service providers will offer a critical advantage.” A survey by the Bangko Sentral ng Pilipinas in 2021 showed 45 percent of unbanked Filipinos believe they cannot open bank accounts due to lack of documents and funds for the minimum deposit. However, McKinsey said “this challenge is likely exaggerated in the public imagination” as many digital banks now require only a government identification card, a selfie and a mobile number from a borrower. In 2021, banking penetration remained low at 56 percent, compared to 96 percent in Thailand and 88 percent in Malaysia. Last year, most loans from domestic lenders were delivered to corporations at a 76 percent share, much higher than Thailand’s 38 percent and Malaysia’s 32 percent. “The underserved rural sector is well suited to digital-first or hybrid offerings, and recent changes to onboarding requirements and agent-banking rules are designed to enable digital service providers to maximize the impact of the country’s limited rural banking infrastructure,” McKinsey said. Market remains limited McKinsey reported a few digital banks have gained traction, with three digital banks growing their total market value by $3 billion, while traditional banks saw a $2.2-billion growth between January 2021 and January 2023. The digital banks reviewed by McKinsey are GoTyme, UnionDigital Bank and UNO Bank. However, McKinsey stressed digital banks in the Philippines have been limiting their services to mobile payments. “While competition in digital financial services is clearly intensifying, dominant players have yet to emerge outside the mobile-payments subsector. Six digital banks have recently launched operations in the Philippines, but none are currently lending at scale.” To reach more customers digitally, the government has allowed foreign banks to operate in the Philippines. It noted that 73 percent of the population uses the internet, which represents a sizable market of over 70 million individuals. “Partnering with an established domestic player can provide vital information on local market conditions, and such partnerships can offer incumbents a chance to expand their offerings rapidly while leveraging the experience of an international counterpart,” McKinsey advised. The research outfit added: “The simplest way for a foreign player to access the Philippine market may be to acquire a small rural bank and repurpose it for digital banking; over 400 rural banks are eligible.” The post Ripe for financial inclusion, Filipinos crave information appeared first on Daily Tribune......»»
Ex-Danske Bank staff charged with money laundering in Estonia
Six former Danske Bank staff have been charged with laundering $1.6 billion and six million euros ($6.5 million) at the Estonian branch of Denmark's biggest lender, prosecutors said on Monday. They are accused of "providing money laundering services for a sum of at least $1,611,963,711 and 6,074,878 euros" between 2007 and 2015, Estonian prosecutors said. "Assets worth about 10 million euros, allegedly obtained through money laundering, were seized", the prosecutors added. The six "deliberately concealed" the true owners of the money transferred to the bank's Estonian accounts, which was "probably of criminal origin," the prosecutors said. The former employees "created their own money laundering business, which they hid from other units of the bank" and sold clients companies "that hid the real owners," the prosecution said. They helped clients "hide the electronic fingerprint from the bank when making transfers and offered a paid transfer document drafting service" in a "professional money laundering" operation, state prosecutor Maria Entsik said. She added that the accusations related to eight "prior infractions" in Azerbaijan, Georgia, Iran, Russia, Switzerland and the United States. Last week Danske Bank reported heavy 2022 losses after being hit by huge fines in the United States and at home over money laundering. In December, the bank pleaded guilty to defrauding American banks via its Estonian branch in order to sneak money from criminals in Russia and elsewhere into the US financial system. Danske Bank forfeited $2 billion as part of the plea agreement. It was then fined 3.5 billion kroner ($512 million) by the Danish financial watchdog. Danish authorities also seized 1.25 billion kroner in profits from transactions in the Estonian branch, which has since shut down. The post Ex-Danske Bank staff charged with money laundering in Estonia appeared first on Daily Tribune......»»
SSS okays pensioners& rsquo; 13th month pay
The Social Security System (SSS), through Development Bank of the Philippines (DBP), has released its December pension and 13th-month bonus amounting to P23.1 billion to Philippine Electronic Fund Transfer System and Operations Network (PESONet) participating banks and other checkless disbursements channels to be credited to pensioners’ bank accounts starting December 1 but not later than December 4, 2020......»»
Pandemic hammers HSBC profits in H1
HONG KONG (AFP) – HSBC on Monday said profits for the first half of 2020 plunged by 69 percent on year as the banking giant was hammered by the coronavirus pandemic and spiralling China-US tensions. The lender reported post-tax profits of $3.1 billion while pre-tax profit was $4.3 billion, a 64 percent drop on the same period last year. Reported revenue was down nine percent at $26.7 billion. Chief executive Noel Quinn described the first six months of the year as ”some of the most challenging in living memory”. ”Our first-half performance was impacted by the COVID-19 pandemic, falling interest rates, increased geopolitical risk and heightened levels of market volatility,” he said in a statement to the Hong Kong stock exchange, Even by the standards of the current economic maelstrom engulfing global banks, HSBC has had a torrid year. Before the coronavirus crisis it was beset by disappointing profit growth, ground down by US-China trade war uncertainties and Britain’s departure from the European Union. The Asia-focused lender embarked on a huge cost-cutting initiative at the start of the year, including plans to slash some 35,000 jobs as well as trimming fat from less profitable divisions, primarily in the United States and Europe. The coronavirus upended some of that cost-cutting drive with banks hammered by market volatility and the economic slowdown caused by the pandemic. But HSBC has a further headache — geopolitical tensions via its status as a major business conduit between China and the West. HSBC makes 90 percent of its profit in Asia, with China and Hong Kong being the major drivers of growth. Caught in crossfire As a result it has found itself more vulnerable than most to the crossfire caused by the increasingly bellicose relationship between Beijing and Washington. The bank has tried to stay in Beijing’s good graces. It vocally backed a draconian national security law that Beijing imposed on Hong Kong in June to end a year of unrest and pro-democracy protests. The move sparked criticism in Washington and London but analysts saw it as an attempt to protect its access to China, which has a track record of punishing businesses that do not toe Beijing’s line. But that has not shielded it from Beijing’s wrath. Last month the bank was a subject of multiple reports in China’s state-run media claiming that it had helped to provide the evidence that led to the arrest in Canada of Huawei executive Meng Wanzhou on a US arrest warrant. HSBC released a statement on its Chinese Weibo accounts saying it had not ”framed” telecom giant Huawei or ”fabricated evidence” that led to the arrest of Meng. China’s internet censors blocked access to HSBC’s statement within hours of publication, without offering an explanation. Quinn referenced the bank’s growing political vulnerability in Monday’s statement. ”Current tensions between China and the US inevitably create challenging situations for an organization with HSBC’s footprint,” he said. ”However, the need for a bank capable of bridging the economies of East and West is acute, and we are well placed to fulfill this role,” he added. The bank’s Asia operations continued to show ”good resilience”, Quinn said, with profit before tax of $7.4 billion. Earlier this year Quinn put some of the job cuts on hold as the pandemic struck. But in Monday’s statement he vowed to press ahead with the cost-cutting. ”As we seek to accelerate our transformation in the second half of the year, I am mindful of the impact it will have for some of our people, particularly those leaving us,” he said......»»
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......»»
Losses to Philippine agriculture due to El Nino reach 31 mln USD
MANILA, March 20 (Xinhua) -- The El Nino dry spell and ensuring drought have caused over 1.75 billion pesos (roughly 31 million U.S. dollars) in damage to Philippine agriculture, a senior government official said Wednesday. This year's losses due to El Nino are still low compared to 2009 when the damage to agriculture reached 17 billion pesos (302 million dollars), Presidential Communications Office Assistant Se.....»»
GCash widens global reach
Overseas Filipino workers may connect their GCash accounts with foreign banks by the second quarter of the year, expanding the financial services they can access in the e-wallet......»»