The Bureau of Treasury said yesterday it may cancel domestic debt auctions scheduled for December because it had generated enough funds for the year. The government, which auctions T-bills and T-bonds to fund its budget deficit, had planned to issue P9-billion worth of T-bills and P8-billion worth of T-bonds in December. "The cash flow position of the government is so good and so strong that the remaining auctions for the government are at risk," National Treasurer Omar Cruz told reporters after a regular T-bill auction. The government, Asia’s most active issuer of sovereign bonds after Japan, previously cancelled auctions of T-bills on Oct. 31 and five-year T-bonds on Nov. 2, partly due to public holidays. The Treasury said then that the reduced borrowings would cut the government’s interest payments and help improve the country’s fiscal performance. It had also scrapped the sale of T-bonds with tenors of two to four years in the fourth quarter after it raised more than P40 billion from an offering of retail T-bonds in September.

Moody’s Investors Service said it has affirmed its ratings on Rizal Commercial Banking Corp (RCBC) following the bank’s announcement of a plan to issue P1 billion in preferred shares before the close of 2005. Moody’s affirmed its "E+" bank financial strength rating (BFSR) and "B1" senior unsecured debt rating for RCBC, as well as its "B1/NP" long- and short-term deposit ratings. The outlooks for the BFSR and short-term deposit rating are stable, while those for its senior unsecured debt and long-term deposit ratings are negative, in line with the negative outlook for the Philippines’ sovereign ratings. In a statement, Moody’s said the resulting capital increase following RCBC’s share issuance is not sufficient to warrant a change in ratings, at least for the time being. Moody’s also raised concerns about RCBC’s volatile operating environment, adding that the extent of the bank’s asset impairment may be higher than has been reported. "In 2004, the bank sold P4.5 billion of bad loans via the SPV (Special Purpose Vehicle) Act in exchange for mostly long-term subordinated debt, the repayment of which is uncertain as it depends on the recoverability of the loans," Moody’s said.

San Miguel Corp. said its beer sales outside the Philippines rose 9 percent year-on-year to $181.7 million in the eight months to August, propelled by a 13 percent rise in sales volume. "Robust sales in Indonesia and Australia continued to support the international beer’s positive performance," San Miguel said in a statement. Its Indonesian subsidiary PT Delta Djakarta Tbk posted a 31 percent rise in sales revenue to 347.5 billion rupiah in the January-August period as volumes sold rose 24 percent from the same period last year. J. Boag and Son Ltd, its wholly-owned subsidiary in Australia, posted a 13 percent rise in revenue to A$61.2 million on the back of a 16 percent rise in sales volume. Sales in Greater China grew 13 percent in volume terms, although no financial details were provided. Earlier, San Miguel said its consolidated net sales at end-August were up 30 percent at P139.9 billion, driven by gains in its major businesses.

Banco de Oro Universal Bank said it booked a 35 percent increase in net profit in the first nine months to P1.84 billion from P1.36 billion in the same period last year, driven by a 39 percent rise in net interest income. Banco de Oro, the country’s seventh largest bank in terms of assets, did not provide third quarter results. Net interest income rose to P4.87 billion from P3.50 billion a year earlier due to a 34 percent expansion in the bank’s balance sheet and higher margins, Banco de Oro said in a statement. The bank likewise booked additional interest expense of P174 million, representing accumulated dividend for the $50 million in preferred shares it issued in October 2004. Non-interest income grew 38 percent to P2.54 million, driven by gains in securities trading and foreign exchange operations. Operating expenses rose 35 percent to P4.74 billion, resulting from higher operating volumes. The amount also includes a one-time provision for the anticipated integration costs of the 66 Philippine branches acquired from United Overseas Bank of Singapore.