Investing Stocks in Philippines: Loan

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Wednesday, May 1, 2013

Stock News 2013: Union Bank profit jumps by 41%

English: A logo for the Union Bank of the Philippines (Photo credit: Wikipedia)

Aboitiz-led Union Bank of the Philippines grew its first-quarter net profit by 40.8 percent year on year to P4 billion, the best quarterly bottom line in its history, mainly due to the double-digit expansion in trading gains and interest earnings.

The first-quarter performance translated to a return on equity of 29 percent. The bank also managed to hit early in the year nearly half of its P8.5-billion net profit goal for the full year, which means the bank would have to readjust targets, Union Bank president Victor Valdepeñas said in an interview.

“We thought we’ll grow by 15 percent this year but it now seems to be a conservative target given our first-quarter performance. As the market continues to be quite positive in terms of flow of funds, I will not be surprised if we’ll see our income growing by 20 percent,” he said. However, the bank would have to wait for the second -quarter results before overhauling its targets for 2013, he added.

Valdepeñas said the bank’s three-month results, which topped what was already a strong performance in the same period last year, could be attributed to stable margins, lower cost of funds, improved productivity and strong contribution from subsidiaries. The first-quarter results already included the contribution of newly acquired thrift bank City Savings.

Based on the bank’s regulatory filing, net interest income went up by 15.8 percent to P2.05 billion from year-ago level.

Valdepeñas estimated that margins had stabilized at more than 3.4 percent.

“While the yields have been under pressure, our cost of funding has gone down much slower,” Valdepeñas said.

The bank’s loan book declined to P98.13 billion from P115.17 billion a year ago. He said this was because certain loan accounts, particularly auto loans, had matured faster than the bank’s new bookings of this type of loans. He said the bank was rationalizing its auto lending business while the credit card segment remained flat as Union Bank had become very “selective.”

“When demand from household continues to increase, we have to be wary,” he said. “Nonetheless, we’re still pushing that because I think consumer financing will grow faster than corporate loans. Corporations can now go directly to the public and raise equity given very good prices and the very good environment.”

For the full year, Union Bank aims to grow its loan book by 15 to 20 percent, Valdepeñas said.

http://business.inquirer.net/119189/union-bank-profit-jumps-by-41

Saturday, April 27, 2013

Stock News 2013: PSBank posts record net profit of P2B in Q1

Loans (Photo credit: zingbot)

Philippine Savings Bank, the thrift bank arm of the Metrobank group, generated a record-high net profit of P2 billion in the first quarter as hefty trading gains complemented core interest earnings.

The first quarter net profit was 273-percent higher than the level in the same period last year, the bank disclosed to the Philippine Stock Exchange on Monday.

PSBank grew its net interest income by 8.7 percent to P1.5 billion. Interest earnings from loans went up by 16 percent to P1.9 billion as the bank expanded its loan book by 23 percent to P77 billion. Strong consumer confidence and sustained economic growth continued to buoy demand for loans, the bank reported.

Auto lending rose by 28 percent compared to the previous year while mortgage lending expanded by 21 percent. The bank’s combined small and medium enterprise as well as large corporate loans likewise went up by 25 percent.

Meanwhile, the low-interest rate environment allowed PSbank to post large trading gains from its investments in government securities. Trading gains amounted to P3 billion from only P1.7 billion in the same period last year.

The bank also grew income from service charges and commissions by 13 percent year-on-year.

On the other hand, improvements in operating efficiency brought by automation kept operating expenses flat at P1.8 billion, the bank said.

“We are seeing traction in our strategy of improving sales coverage and operating efficiency as evidenced by the continued increase in market share for our key loan products, auto and mortgage. Given this loan increase, we are confident to exceed the original income target of the bank for the year,” said PSBank executive vice president Jose Vicente Alde.

While the bank boosted its earning assets, it kept good quality of earnings assets in its books. The ratio of net non-performing loans stood at only 0.4 percent. PSBank has also set aside P609 million as provisions for the first quarter, thus increasing loan coverage to 102 percent.

PSBank’s equity rose by 27 percent to P18.7 billion. This translated to a higher capital adequacy ratio to risk assets of 18.6 percent, well above the 10-percent minimum required level for local banks.

http://business.inquirer.net/117987/psbank-posts-record-net-profit-of-p2b-in-q1

Thursday, March 7, 2013

Stock News 2013: China Bank’s 2012 profit flat at P5 B

y2cary3n6mng-qwfl07-net-profit-formula (Photo credit: NVarchitect)

The Sy family-led China Banking Corp. chalked up a consolidated net profit of P5 billion last year, flat compared to the previous year as its thrift bank subsidiary gnawed at overall profitability.

But China Bank sustained a return on equity of 12.39 percent and return on assets of 1.72 percent for the year.

Last year’s earnings were fueled by a 29 percent increase in loans to P198 billion, which grew 50 percent faster than the industry. Lending grew across all market segments—up 36 percent in commercial, 28 percent in consumer and 27 percent in corporate loans—cushioning the impact of lower yields and thinning margins.

Profits were also boosted by hefty trading and securities gains, expanding by 98.6 percent to P2.92 billion.

http://business.inquirer.net/111057/china-banks-2012-profit-flat-at-p5-b

Friday, February 22, 2013

Stock News 2013: RCBC posts 24% profit growth

Rcbc plaza (Photo credit: Wikipedia)

Yuchengco-led Rizal Commercial Banking Corp. grew its net profit last year by 24 percent to P6.21 billion on higher interest and fee-based income, and hefty treasury gains.

RCBC also firmed up a deal with International Finance Corp. for the purchase of $100 million worth of additional shares in the bank. A separate agreement was finalized to unload P5 billion worth of non-performing assets (NPAs) to a consortium that also includes IFC.

On its 2012 results, the bank’s profit translated to a return on equity of 15.52 percent and a return on assets of 1.77 percent.

Despite pressures on margins in a record-low interest rate environment, RCBC reported that its net interest income had grown by 6.5 percent to P11.45 billion. The bank ended last year with a loan book of P190 billion, 3 percent higher than the level of loans and receivables booked in 2011.

The growth in RCBC’s lending activities was supported by the expansion in lending to consumers (25 percent), small and medium enterprises (37 percent) and corporate loans (8 percent).

Net interest margin was 3.95 percent, one of the highest in the industry.

http://business.inquirer.net/108043/rcbc-posts-24-profit-growth

Friday, November 30, 2012

Stock News 2012: Banks’ NPL Ratio Improves Further To 2.05% In Third Quarter

English: Central Bank of the Philippines (Main) (Photo credit: Wikipedia)

The Bangko Sentral ng Pilipinas (BSP) yesterday reported that the 37 major banks’ non-performing loans (NPL) ratio improved to 2.05 percent as of the end of the third quarter as soured loans continue to decline.

BSP’s latest data showed that NPL ratio as of end-September was 0.03 percentage point lower compared to end-August and by 0.41 percentage point lower than last year’s 2.46 percent. Net of interbank loans, the NPL ratio was lower by 0.03 percentage point to 2.15 percent.

Borrowers or debtors with unpaid loans for 30 days are considered NPL accounts while unpaid loans of more than 90 days will generally be considered in default.

The central bank in October revised the rules on banks’ NPL by including the net amount of NPLs as a “complementary measure” to gross NPLs. Net NPLs are gross NPLs less specific allowance for credit losses on the total loan portfolio.

In the first nine months of the year, the 37 universal/commercial banks have reported R69.94 billion-worth of borrowers’ past due loans. This is lower than August’s R70.43 billion and the same period in 2011 of R74.33 billion.

The big banks’ total loan portfolio, in the meantime, increased to R3.41 trillion from R3.378 trillion in the previous month and R3 trillion last year.

The BSP said NPL ratio improved because of the 0.69 percent reduction in total bad loans and the 0.96 percent expansion in total loan portfolio.

“The industry’s provisioning against potential credit losses remained adequate,” stated the BSP.

The NPL coverage ratio or loan loss reserves to NPLs strengthened to 136 percent from 135.81 percent in August and from last year’s 123.70 percent ratio.

The coverage ratio for non-performing assets (NPA) narrowed to 69.39 percent from 69.44 percent in August but it was higher compared to last year’s 62.68 percent ratio. As of end-September, the big banks’ NPAs declined to R176.34 billion from R177.12 billion in the previous month and R191.06 billion the same period in 2011.

NPAs are computed including NPL and real and other properties and acquired or ROPA

The banks’ restructured loans, on the other hand, totaled R35.5 billion, hardly changed on a monthly basis but considerably lower compared to last year’s R40.98 billion.

http://www.mb.com.ph/articles/383808/banks-npl-ratio-improves-further-to-205-in-third-quarter#.T8GjbOSmj3w

Monday, May 7, 2012

Stock News 2012: UCPB net profit up 34% in Q1

Loans (Photo credit: zingbot)
Coming on the heels of the formal extension of its corporate life as granted by its shareholders recently, UCPB announced a robust performance for the first quarter of 2012 as its consolidated net income grew by 34 percent to P883.7 million from a year ago attributing it to the strong trading gains and high interest income posted by its business units.

“Businesses normally slow down during this period but we still managed to sustain our growth in 2011. Our strong first quarter performance bodes well for the future of the bank,” UCPB president and CEO Jeronimo Kilayko said.

UCPB took advantage of the volatile fixed income market thereby expanding its trading gains by more than three hundred folds during the first three months of the year to P486.9 million from P111.2 million in the same period last year.

Meanwhile, interest income from loans rose by 15 percent as the bank expanded its loan portfolio to P73.6 million by end of March 2012 from P62.1 as of March 2011.

Consumer loans from the parent company went up at a faster rate primarily due to the bank’s tie-ups with major real estate developers. This provided the bank access to more clients who would like to borrow money for their dream house.

Funding for these loans came from the inexpensive checking and savings accounts (CASA) which amounted to P102.2 million as of end of March 2012 from P98 million a year ago.

CASA comprised 63 percent of the total deposits which rose by nine percent to P162 million in the first quarter versus P148 million in 2010.

And as UCPB’s business grew, management successfully kept the growth of its operating expense at a minimum.

By end of the first quarter, UCPB’s total assets stood at P204 million, 13 percent higher than a year ago while total capital increased by 23 percent to P17.9 million.

UCPB’s first quarter feat comes on the heels of its robust income growth in 2011 which reached P3.05 billion or 25 percent higher than the previous year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=804441

Monday, April 30, 2012

Stock News 2012: UCPB posts 34% profit growth in Q1

The new logo of United Coconut Planters Bank (Photo credit: Wikipedia)
The United Coconut Planters Bank (UCPB) has reported a 34-percent increase in net income to P883.7 million for the first quarter of 2012.

UCPB president and chief executive officer Jeronimo Kilayko attributed the increase to the bank’s ability to take advantage of the volatile fixed income market.

“The bank took advantage of the volatile fixed income market thus expanding its trading gains by more than three hundred folds during the first three months of the year to P486.9 million from P111.2 million in the same period last year,” Kilayko said.

He further explained that despite the normally weak banking activities in the first three months of a given year, UCPB surmounted this by taking advantage of all opportunities.

“Businesses normally slows down during this period but we still managed to sustain our growth in 2012. Our strong first quarter performance bodes well for the future of the bank,” he said, refusing to make a new forecast regarding the bank’s income prospects.

Kilayko said that UCPB would remain focused on its original full year 2012 target of P3.5 to P4 billion in net income.

Net income in 2011 amounted to P3.05 billion and P2.45 billion in 2010.

Meanwhile, interest income from loans rose 15 percent as the bank expanded its loan portfolio to P73.6 million by end of March 2012 from P62.1 as of March 2011.

Consumer loans, mainly the mortgage loans, rose at a faster rate primarily due to the bank’s tie-ups with major real estate developers. This provided bank access to more clients who would like to borrow to build their dream house.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801988

Stock News 2012: Union Bank posts 300% profit growth in Q1

A logo for the Union Bank of the Philippines (Photo credit: Wikipedia)
Union Bank of the Philippines (UBP) has recorded its highest quarterly growth in terms of net earnings with a 300 percent growth in the first three months of 2012.

From P708 million in the first three months of 2011, earnings ballooned to P2.84 billion this year.

UBP president and chief operating officer Victor B. Valdepenas said it is not only the bank’s highest growth recorded in a given quarter, but “it is also a third of the P6.59 billion net income recorded for the whole of 2011, and we are only in the first quarter of 2012.”

He explained that the universal bank of the Aboitiz Group took advantage of the volatility of the fixed income market due to the low interest rate regime and the strong performance of the equities market.

Barring any dramatic change in the direction of the country’s capital markets as well as economy in general, the bank may surpass its original target of a 10- to 15-percent growth in net earnings this year compared to the previous year.

Valdepenas said that with the kind of growth in the first three months of the year, “we may surpass all targets and all expectations.”

Trading gains in the first three months of 2012 grew to P2.6 billion from P186 million in the same period last year.

Total loans expanded to P115 billion by the end of March, surpassing the P105 billion as of end 2011.

“Consumer loans outpaced all the rest of the segments, while corporate lending was basically flatish as they went to the capital markets,” the UBP chief executive explained.

Net interest income rose slightly to P1.77 billion in the first quarter this year, from the P1.76 billion in the same period last year.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801980

Friday, February 17, 2012

Stock News 2012: Metrobank earnings rise 32% to P11 B

One of the country’s top lenders Metropolitan Bank & Trust Co. (Metrobank) registered its fourth straight year of strong income growth as it reported a 32 percent increase in net earnings in 2011 to P11 billion.

In a statement, Metrobank said total deposits grew 4.6 percent year-on-year to P681 billion while net loans and receivables rose 16.5 percent to P457.4 billion, with strong growth coming from both the consumer and commercial segments.

Thus, operating income growth was supported by the 11.4-percent increase in net interest income to P29.4 billion which, in turn, was driven by the 7.3-percent growth in low cost deposits and the 16.5 percent hike in net loans and receivables.

Metrobank likewise recorded a return on average equity of 11.2 percent in 2011, from 10.3 percent the previous year.

Meanwhile, its healthy growth in assets and improved deposit mix pushed net interest margin 11 basis points higher to 3.5 percent.

In addition, service charges, fees and commissions registered a healthy 12.5 percent increase to P7.7 billion, while income from trading and foreign exchange grew to P7.7 billion.

Operating expenses grew 10.3 percent year-on-year to P30.7 billion, driven by higher manpower and occupancy-related costs.

Provisions for credit and impairment losses declined 47.5 percent to P3.8 billion, as gross non-performing loans (NPLs) were reduced by 8.3 percent, settling at P10.1 billion by the end of 2011.

Thus, the NPL ratio further declined to 2.2 percent at yearend, from 2.9 percent in 2010, while the NPL coverage was comfortably higher at 99.5 percent, from 92.3 percent in 2010.

Consolidated assets ballooned further to P958.4 billion, or eight percent more than the P887.3 billion in 2010.

Total equity reached P109.8 billion, up 25.3 percent from the previous year’s P87.6 billion.

At the end of 2011, Metrobank’s capital adequacy ratio (CAR) further improved to 17.4 percent from 16.4 percent in 2010, well above the 10 percent regulatory minimum. Tier 1 capital ratio likewise rose to 13.7 percent, from 12 percent in the previous year.

http://www.philstar.com/ArticleListBySubCategory.aspx?publicationSubCategoryId=66

Friday, September 2, 2011

Stock News 2011: Gotianun bank sees assets growing to P100B this year

Image by randz via Flickr
Gotianun-led East West Bank seeks to scale up its auto-lending business by offering attractive gas freebies as part of its goal of hitting P100 billion in total bank resources this year.

In a briefing Friday, East West Bank president Antonio Moncupa Jr. unveiled a car-financing program that offers up to P50,000 in free gas for clients availing themselves of auto loans with a size of more than P2 million. The offering is seen very timely and attractive given the upswing in global fuel prices.

The bank’s auto loan package carries a fixed interest rate of between 8 and 12 percent depending on the tenor, which ranges between 36 and 40 months. “We make sure we’re very competitive,” Moncupa said, noting that with narrowing loan spreads due to stiff competition in the banking system, it was a must to expand business volume.

East West Bank has expanded its car lending business by 26.2 percent in the first semester compared with a year ago, cementing its position as the country’s sixth biggest auto loan provider.

About P8 billion of the bank’s loans was devoted to car lending, Moncupa estimated. This represented about 18 percent of the bank’s P44-billion loan portfolio as of end-June.

http://business.inquirer.net/16391/gotianun-bank-sees-assets-growing-to-p100b-this-year

Thursday, March 17, 2011

Stock News 2011: ‘Using fake borrowers was GA practice’

Gateway to Mabalacat when coming from Angeles ...

Image via Wikipedia
Two former Globe Asiatique (GA) employees have admitted to state prosecutors that the property developer had been using fake borrowers even before the Xevera projects in Mabalacat, Pampanga.

Venissa Panem and Francisco dela Cruz told a special Department of Justice (DoJ) panel that GA used “special buyers”—the term used by the firm to refer to fake borrowers—not only to obtain loans from the Home Development Mutual Fund or the Pag-IBIG Fund, but also from private banks.

The two admitted that they and other GA employees posed as “special buyers” so the company can get loans.

“At the behest of my superiors in Globe Asiatique, I was able to produce several hundreds of special buyers,” Dela Cruz said.

GA president Delfin Lee and other GA officials are currently facing charges of syndicated estafa (fraud) constituting economic sabotage before the DoJ for allegedly using spurious or fake borrowers to obtain housing loans amounting to over P6 billion from Pag-IBIG Fund.

http://business.inquirer.net/money/breakingnews/view/20110317-325928/Using-fake-borrowers-was-GA-practiceex-employees

Tuesday, March 1, 2011

Stock News 2011: No property bubble, says BPI Family Savings

Image via Wikipedia
The BPI Family Savings Bank (BPI Family Savings) does not foresee a mortgage bubble in the Philippine property sector in the fact of strong demand for housing loan.

BPI Family Savings president Jose Teodoro Limcaoco said that demand for mortgage loans has been growing at a strong pace.

“In fact, BPI Family Savings has been making bookings of between P1.4 to P1.8 billion a month in mortgage loans,” Limcaoco said, during the formal launching of a unique financing package between the Philippine Franchising Association, the Association of Filipino Franchisers Inc. and the country’s leading thrift bank.

Majority of the borrowers are first-home buyers and ends-users with a small portion classified as speculators. That means that the borrowers will end up owning the properties and that the loans will be paid.

The bubble occurs when the majority of the buyers are speculators or individuals who acquire property or units for the purpose of re-selling. The tendency in a predominantly speculator market, is that the prices of the properties or units become too high or unrealistic.

Another reason for the optimistic outlook is the large number of reputable developers entering the housing market. “Respected developers such as Ayala Land, Robinsons Land and the SM Development Corp. are building left and right,” the bank president said.

http://www.philstar.com/Article.aspx?articleId=661762&publicationSubCategoryId=74

Wednesday, February 16, 2011

Stock News 2011: EastWest Bank reduces mortgage financing interest to 5.88%

Image via Wikipedia
EastWest Bank has recently introduced its lowest home loan interest rate of 5.88% fixed for the first year. Owning a real estate property by availing of a mortgage financing facility at only 5.88% interest rate provides borrowers a great deal of savings which they can use for other expenditures or purchases.

The Bank now offers a range of housing loan products that are especially designed for the specific needs of the borrower.

The Home ACQUIRE allows an availee to purchase a house and lot or a townhouse, while Condo ACQUIRE provides financing for acquisition of a condominium unit. For those who wish to purchase a residential lot, the Bank offers Lot ACQUIRE which is payable within a 10 year period.

Lot owners who opt to build their own house in their property may apply for Home CONSTRUCT with a maximum payment term of 30 years.

http://www.philstar.com/Article.aspx?articleId=658215&publicationSubCategoryId=74

Wednesday, January 26, 2011

Stock News 2011: PSBank net profit up 46% to P1.8 billion

Image via Wikipedia
Philippine Savings Bank (PSBank), the thrift bank arm of the Metrobank Group, expects net income to hit P2 billion this year after it reported a 46 percent surge in its 2010 audited net income to P1.8 billion from the P1.2 billion recorded in 2009.

In a disclosure to the Philippine Stock Exchange, the Bank said it had breached its P1.4 billion 2010 net income target as early as the third quarter last year. Earnings this year is expected to be driven by continuing improvements in its core revenues.

The 2010 net income of the country’s second largest thrift bank is supported by the growth in assets from P93.1 billion to P104.1 billion. Of this amount, gross loans expanded by 15 percent to P55.6 billion with auto loans rising by 27 percent, mortgage loans by 11 percent and personal loans by 9 percent.

On the other hand, the Bank’s investments portfolio, contributed an increase of 13 percent to P26.2 billion.

“The Bank’s outstanding performance and growth in market share in 2010 were due to strong consumer demand, backed by product improvements and excellent customer service. Price is not the only factor that customers consider, they also look for speed in delivery, convenience and reliability,” PSBank president Pascual M. Garcia III said.

http://www.mb.com.ph/node/300716/p

Monday, January 17, 2011

Stock News 2011: Banks now offering 25-year housing loans

The Department of Finance (DoF) said Monday that some local banks are now willing to provide housing loans of up to 25 years after the government successfully sold longer-dated debts.

Finance Secretary Cesar V. Purisima said, in an interview, that some local banks came to him and have showed interest in introducing housing loans that are payable in 25 years.

“Banks now are telling me that they’re looking at offering consumers 25-year housing loans. Before, loans outside Pag-IBIG [Home Development Mutual Fund] can only be 15 years,” Purisima said.

In December last year, the Aquino government issued debt notes maturing in 2035, in the process creating a new benchmark rate for 25-year bonds.

http://www.mb.com.ph/node/299057/bank

Thursday, September 9, 2010

Stock News 2010: Globe Asiatique has not been getting money from Pag-IBIG

Victory Liner M.A.N CVD-872 (fleet No 982) EDS...

Image by express000 via Flickr

MANILA, Philippines - Globe Asiatique Realty Holdings Corp. has not received a single centavo from Pag-IBIG Fund (Home Mutual Development Fund) for more than two months now or even before the adverse publicity about it, according to its owner Delfin Lee.

Lee stressed that Globe Asiatique does not owe Pag-IBIG Fund a single centavo and has not been remiss in its obligations even up to this time. Nevertheless, he said, Pag-IBIG Fund has stopped releasing money to the company.

The Globe Asiatique official also emphasized that it has been using its own money to build the houses sold to ordinary Filipinos.

He said the housing loans are granted not to developers like Globe Asiatique but to the Pag-IBIG members, who, in turn, use the proceeds to buy houses from developers like Globe Asiatique.

“It is not Globe Asiatique which approves the loans but Pag-IBIG,” he said. “Globe Asiatique only processes the application upon certification from Pag-IBIG that the applicant is a bonafide member.”

Lee reiterated that it is Pag-IBIG Fund and not Globe Asiatique which receives, processes and approves applications for membership so that the housing loan can be availed of.

Incumbent Vice President Jojo Binay, who now chairs Pag-IBIG Fund, has also clarified in news reports that appeared Sept. 8 that the money of the agency is safe and intact in the midst of bad publicity against Globe Asiatique.

Lee said Globe Asiatique protects the money of Pag-IBIG Fund through its buy-back guarantee which is for five years and not just two years as given by other developers.

This way, when the borrower fails to pay the Pag-IBIG loan, it is Globe Asiatique which assumes the obligation, he said.

http://www.philstar.com/Article.aspx?articleId=610234&publicationSubCategoryId=66

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