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BPI profits up 28.8% on lower loan loss buffers

Bank of the Philippine Islands saw its earnings grow by over a fifth in the second quarter, after the lender funneled less resources on buffers against bad loans from pandemic-hit borrowers......»»

Category: financeSource: philstar philstarJul 22nd, 2021

PNB profit rises 34% as loan loss provisions tumble

Philippine National Bank earned P1.79 billion or 34 percent more in the first quarter amid lower provisions for potential loan losses as the country recovers from the pandemic-induced recession......»»

Category: financeSource:  philstarRelated NewsMay 14th, 2021

COVID-19’s impact on banks manageable – BSP report

The banking system remains on “solid footing” in terms of assets, loans, deposits, profitability, capital and liquidity buffers despite the COVID-19 health crisis, a report from the Bangko Sentral ng Pilipinas (BSP) said.  “The impact of the pandemic on the overall condition and performance of the banking system, which remains the core of the domestic financial system, has been manageable,” according to the BSP’s second semester report on the Philippine financial system. The total assets of the banking system account for 81.9 percent of the financial system’s total resources. MB file photo. The banks remained resilient during the worst of the lockdown period because of the “timely, time-bound and crucial” regulatory relief measures that BSP granted to them during the most severe quarantine months of March until June. These relief measures “helped address the adverse repercussions of the pandemic.” One of these reprieves was the suspension of the submission of some bank reports while most of the country was on enhanced community quarantine (ECQ) restrictions. Banks have had to adjust operations and deal with the slowdown in economic activities that affected their borrowers’ capacity to pay. Based on a set of financial soundness indicators (FSI) to assess banks’ health and soundness, it noted that the banking system is “stable and resilient despite global uncertainties related to the extent and path of COVID-19 menace.”  But, the BSP said that the FSI analysis also implies that “consequent risks from lending should be monitored especially in the event of excessive uncertainties that could place additional pressures on the banking system in the short and medium run.” As of the report timeline, banks surveyed have yet to determine the total impact of the grace periods under the Bayanihan law but generally, based on the BSP’s comprehensive baseline survey conducted in April, banks have proactive control measures that will ensure the continued delivery of financial services to the general public and also to protect their personnel, said the BSP. Banks’ business continuity plans, and previous efforts at digitalization, also helped them to respond quickly to conditions brought about by the ECQ. Despite the economy in recession due to the pandemic, the banking system’s total assets reached P18.6 trillion as of end-June, 98.8 percent of the GDP. The end-June tally was 7.9 percent higher year-on-year but was slower than the 9.8 percent growth recorded in June 2019 and the 8.4 percent growth as of end-December 2019. Assets continue to grow because of the expansion of funds that went to lending activities while funding came from deposits, bond issuances and capital infusion. In the meantime, the report said banks’ profitability or net income fell by 22.5 percent to P86.5 billion as of end-June 2020 because of higher provisioning requirements. This was a reversal of the 27.7 percent growth in earnings same time in 2019.  “Provisions on credit losses for loans and financial assets significantly increased, weighing heavily on bank profitability. Other income sources are expected to slow down due to lower volume of transactions, waiver of inter-branch and interbank fees as well as the temporary grace period moratorium on the imposition of bank fees, penalties and charges under the Bayanihan Act,” said the BSP. Based on the BSP survey, banks have measures to cushion the adverse impact of the pandemic on profitability such as banks’ plans to impose cost-cutting measures that includes deferred capital spending and freeze hiring of non-critical positions. The BSP said banks have also intensified loan collection activities and its loan monitoring. They have also become more prudent in loan releases, reduced the cost of funds and at the same time boosted marketing campaigns for new loans and deposits.  “Across banking groups, (the big banks) also intend to reduce their exposures to vulnerable sectors and to increase ancillary or fee-based business while thrift banks and rural/cooperative banks plan to fast track digitization initiatives to reduce operating expenses,” said the BSP......»»

Category: newsSource:  mb.com.phRelated NewsNov 8th, 2020

Index snaps 3-day upturn, ends lower

Share prices slightly pulled back yesterday as investors decided to take profits following three straight sessions of gains......»»

Category: financeSource:  philstarRelated NewsJun 17th, 2021

Lepanto losses narrow in Q1

Listed Lepanto Consolidated Mining Co. narrowed its net loss in the first quarter to P63.2 million from P214.4 million in the same period in 2020 due to lower costs and expenses......»»

Category: financeSource:  philstarRelated NewsJun 9th, 2021

SMC banking arm nets P147 million in Q1

The banking arm of food-to-infrastructure conglomerate San Miguel Corp. booked a net income of P146.91 million in the first quarter, reversing the P122.94 million net loss in the same period last year, on lower provision for credit and impairment losses......»»

Category: financeSource:  philstarRelated NewsMay 27th, 2021

Fees emerge as revenue source as banks book lower profits

Security Bank and RCBC profits went down, while that of PNB went up in the first quarter......»»

Category: financeSource:  philstarRelated NewsMay 14th, 2021

Lower tariffs, higher MAV to bring equilibrium pork prices

With meat prices jacking up food inflation in the country, Finance Secretary Carlos Dominguez III defended the move to lower import tariffs for pork while increasing its minimum access volume or MAV. Dominguez explained that while the lower import duties for pork could bring forth an income loss of P13.68 billion for the state, such […] The post Lower tariffs, higher MAV to bring equilibrium pork prices appeared first on Daily Tribune......»»

Category: lifestyleSource:  abscbnRelated NewsApr 27th, 2021

IMF urges BSP not to delay recognition of losses, restructuring of NPLs

A prompt loss recognition and non-performing loan restructuring may help Philippine banks prevent sharp deleveraging and recover faster from the pandemic-induced recession, according to the International Monetary Fund......»»

Category: financeSource:  philstarRelated NewsApr 12th, 2021

PSBank’s 2020 net income before provisions surges to 31%

Philippine Savings Bank’s (PSBank) operating income surged to 31% before provisions to Php7.45 billion last year. This enabled the Bank to set aside additional loan loss provisions to three times over to Php6.40 billion in view of the ongoing pandemic conditions. The Bank closed 2020 with Php1.108 billion net income. “On the back of a […] The post PSBank’s 2020 net income before provisions surges to 31% appeared first on Daily Tribune......»»

Category: newsSource:  tribuneRelated NewsMar 5th, 2021

BSP earnings down 14% to P34.5 billion

The Bangko Sentral ng Pilipinas reported a 14.3 percent decline in earnings to P34.5 billion from January to November last year compared to a year-ago level of P40.24 billion on the back of lower revenues and the net loss on foreign exchange rate fluctuations......»»

Category: newsSource:  philstarRelated NewsJan 17th, 2021

BSP posts lower net income

The Bangko Sentral ng Pilipinas (BSP) posted lower profits as of end-November 2020 amid the decline in interest income year-on-year. Preliminary data from the BSP revealed its net income for the first 11 months of the year at P34.51 billion, a 16.60 percent decline from the P40.24 billion posted in the same period last year. […] The post BSP posts lower net income appeared first on Daily Tribune......»»

Category: newsSource:  inquirerRelated NewsJan 17th, 2021

Fitch Ratings sees PH banks’ profitability to remain stable

MANILA – Philippines banks’ profitability is seen to remain stable due to higher loan growth and lower credit provisioning, factors which Fitch Ratings expects to counter the impact of reduced margins and lack of extraordinary trading gains. “We expect the deterioration in reported asset-quality metrics to accelerate in 2021 as debt moratoria mandated by regulations […].....»»

Category: newsSource:  balitaRelated NewsDec 2nd, 2020

Great Deals on mobile, broadband plans await at Gift Love, Gift Local Online Sale on Globe myBusiness Shop

For small and medium enterprises, the past few months have been challenging given the loss of income or lower demand due to the restrictions implemented for everyone’s safety. Fortunately, SMEs are now gradually getting back on track, especially those who have embraced digital means to adapt to the new no-contact world......»»

Category: techSource:  thestandardRelated NewsNov 27th, 2020

Housing loans restructured

PAG-IBIG Fund is offering a loan restructuring program to allow housing loan borrowers to defer their payments until March 2021 and lower their monthly payments, its top executives announced......»»

Category: newsSource:  thestandardRelated NewsNov 19th, 2020

Unexpected BSP rate cut fulfills Diokno s whatever it takes pledge

By lowering benchmark rates, Diokno and his six peers at the Monetary Board is trying to prompt banks to lower their loan interest rates......»»

Category: financeSource:  philstarRelated NewsNov 19th, 2020

Ayala Corp. profit falls 75% in 9 months

Listed Ayala Corp.’s net income plunged by 75 percent year-on-year to P11.4 billion in the first nine months of 2020 after its core businesses posted lower net profits in the period. Despite this, the diversified conglomerate reported in a disclosure late Thursday that for the third quarter alone, its bottomline more than doubled to P3.4 […].....»»

Category: newsSource:  manilatimes_netRelated NewsNov 14th, 2020

JG Summit, Alliance Global, LT Group posted better Q3 profits

Major conglomerates on Friday reported improved profits in the third quarter from the second quarter as the government eased mobility and quarantine restrictions to help the economy recover from the impact of the pandemic.JG Summit Holdings Inc. of the Gokongwei Group said third-quarter earnings reached P844 million, a turnaround from the P720-million net loss it […].....»»

Category: newsSource:  balitaRelated NewsNov 14th, 2020

Shell widens losses to P13.9-B in 9 months; P1B investment set for import facility

With additional valuation-anchored inventory losses and one-off charges booked, the net loss of listed firm Pilipinas Shell Petroleum Corporation (PSPC) had widened to P13.9 billion in nine months this year. That’s a complete reversal of the P4.4 billion net income it posted last year, when oil prices were at more predictable state and there had been no pandemic-induced uncertainties disrupting oil markets. It specified that if the P5.7 billion inventory valuation losses had not turned up, the company’s net loss in the third quarter should have been at leaner P700 million versus P900 million in the second quarter. And without the one-off charges that stood at P7.5 billion, the oil firm’s net loss should have been trimmed to P6.4 billion within the January-September stretch. The one-off charges came about because of the closure of its refining operations that subsequently prompted the conversion of its Tabangao facility into a world-class import terminal. But while the company works on improving its financial performance in the coming months, Pilipinas Shell President and CEO Cesar G. Romero announced that they will be re-investing roughly P1.0 billion in the next few years “to fully transform Tabangao into a world class facility that will support its marketing growth aspirations.” Part of the company’s major step this year is to set on stream the commercial operations of its 54-million liter capacity terminal in Subic to underpin its supply chain, primarily to serve the demand of its Northern Luzon customers; while its Tabangao import facility will cater to the needs of customers in other parts of Luzon and Northern Visayas. To complete the loop, its Northern Mindanao Import Facility (NMIF) in Cagayan de Oro will be supporting the rest of Visayas and well as customers in Mindanao. Pilipinas Shell said it now “has a more resilient network of three medium-range import terminals with sufficient finished products capacity to effectively serve the demands of customers nationwide.” The firm indicated that despite the challenges, it prioritized business strategies that shall result in cash preservation for the company. As of third quarter’s end, the savings logged by the company stood at P2.5 billion; and this is seen sustained at the level of P2.0 billion until the end of this year. “Savings of P1.2 billion were generated from OPEX (operating expenses); with P1.3 billion from CAPEX (capital expenditure),” Shell emphasized. While the company still navigates the tough terrain of business induced by the coronavirus pandemic, Romero asserted their overall frame “remains optimistic,” as he noted that the “government’s efforts to gradually reopen the economy by prudently relaxing quarantine restrictions are slowly giving elbow room for the economy to recover.” He specified that for Shell, “the wins are coming in gradually as more businesses operate at increased capacity in the areas of manufacturing and transportation.” The company chief executive expounded “our balance sheet, technical capability and resources are solid; and serve as well in continuing to provide Filipinos with high quality fuel products despite the challenging environment.” Parallel to the firm’s aspirations for demand and financial rebound, Romero noted they are also making “the right sustainable decision to protect the long-term interests of our shareholders.” The company’s gearing had risen to 47-percent, and that was mainly attributed to “lower equity from net loss rather than an increase in net debt,” with it emphasizing that “excluding the impact of the refinery one-off charges, the company’s gearing stands at 41-percent.” Romero indicated “the pandemic has forced us to rethink the way we do things, while ensuring the quality of service that Filipinos expect from us.”.....»»

Category: newsSource:  mb.com.phRelated NewsNov 12th, 2020

SM parent profits down in mall closures, bad loan protections

SM Investments reported P15.2 billion in profits from January to September, down 54% year-on-year......»»

Category: financeSource:  philstarRelated NewsNov 4th, 2020

Palay prices dip to P11/kg in some areas

Palay prices continued to go down, even dipping to as low as P11 per kilogram (/kg) as farmers approach the tail-end of the harvest season with a series of strong typhoons. Latest data from the Philippine Statistics Authority (PSA) showed that the average farm-gate price of palay continued its downward movement, falling by 4.1 percent to P15.79/kg from the price level of P16.47/kg in the previous week. Year-on-year, the price increased by 0.2 percent from its average price of P15.76/kg in the same week of the previous year. Unfortunately, prices went down to as low as P11/kg in areas like Surigao del Sur and Cavite, which means some farmers were forced to sell their produce at a loss. In other areas like Agusan del Sur and Bulacan, farmers barely made money, with palay sold at exactly or just slightly above P12/kg. In the Philippines, the average production cost of rice farmers stood around P12.72/kg, which is higher or nearly double than what rice farmers in Vietnam and Thailand spend to produce the staple. This means that if prices fell below that amount, farmers would receive earnings that are lower than what they spent for. Some said that with the current production cost, the breakeven farmgate price of fresh harvest should be around P14.50/kg.  Meanwhile, highest palay prices were recorded in areas like Bataan, Nueva Ecija, Zambales, Pampanga, Rizal, and Palawan wherein the commodity were sold at P18/kg to P21/kg, the same PSA data showed. Federation of Free Farmers (FFF) National Manager Raul Montemayor said that in the next few weeks, as farmers approach the tail-end of the harvest season, palay prices will definitely go down further. This, as palay, when damaged by storms, could yield to poor quality rice, which, among other reasons like the continuous entry of imported rice, could result in traders deciding not to buy at all.  “Rainy weather is also to blame since traders have to discount for grain deterioration due to lack of drying facilities,” he said. A data from the Department of Agriculture (DA) showed that as of October 29, Typhoon Quinta already destroyed 79,239 metric tons (MT) of palay worth P1.13 billion within 62,880 hectares of farms. Then there’s the threat of Typhoon Rolly, which is expected to make landfall in Quezon and Aurora provinces on Saturday (October 31) and become a super typhoon. Montemayor also thinks that the continuous decline in palay prices is already “not surprising” since government intervention is doing very little for farmers. According to him, the National Food Authority’s (NFA) palay procurement has had minimal impact despite pronouncements of DA, while the planned suspension of  sanitary and phytosanitary import clearances (SPS-ICs) on rice “came in too late, as in last year, to influence farmgate prices.” “Too little too late [actions] again by the DA,” Montemayor said. “At this time, [DA can do] very little. Damage was already done and most farmers have already harvested. Some typhoon-affected farmers (like those in Occidental Mindoro and Isabela) are asking NFA to buy storm-damaged palay but I doubt if they will do that since the agency itself doesn’t have dryers,” he added. Montemayor was particularly referring to Agriculture Secretary William Dar’s previous order for NFA to intensify its palay procurement in order to address decline in palay prices.  To recall, NFA, whose sole mandate now is to secure the government’s buffer stock, buys palay at P19/kg and is given P7 billion every year to do this. Also, more than a week ago, Senator Cynthia Villar, chairperson of the senate agriculture committee, asked the DA to stop issuing SPS-ICs to rice importers during harvest time, which would probably take effect after the next planting season. Business Bulletin sought the reaction of DA Spokesperson Noel Reyes regarding the decline in palay prices, but he is yet to respond......»»

Category: newsSource:  inquirerRelated NewsOct 31st, 2020