Bank of the Philippine Islands (BPI), the country’s second-largest lender, said yesterday its unaudited profits rose about 21 percent last year, helped by property sales and growth in its asset base. Profits at BPI, owned by conglomerate Ayala Corp. and Singapore’s DBS Group, are expected to increase 17 percent this year to P9.48 billion, according to nine brokers surveyed by Reuters Estimates. Bank president Aurelio Montinola said last month BPI should "at least match" its 2005 performance this year, with an improving business environment. BPI said 2005 net income was P8.1 billion versus R6.7 billion in 2004. The result just missed market estimates for P8.23 billion, but profit growth was higher than the bank’s own forecast of 5-10 percent. For the fourth quarter, BPI had P1.75 billion in profit, up 25 percent from P1.4 billion in the same period of 2004.

Metrobank nets P4.36 billion

Metropolitan Bank Trust Co., the country’s largest commercial bank in terms of assets, yesterday posted higher 2005 earnings of R4.36 billion on contributions from its core business. In its financial statement, the bank said its unaudited net profit last year at the parent level reached P4.36 billion. It didn’t provide a comparative figure, but based on its financial statement for 2004, the bank’s net profit at the parent level was P3.63 billion. Metrobank said its interest income last year amounted to P28.05 billion, while interest expense totaled P13.29 billion. Other income for the same period came to P8.43 billion, while other expenses stood at P15.39 billion, said the bank. The bank said it set aside P3.45 billion as provision for bad loans last year. On Monday, Metrobank’s vice president for corporate planning, Bernard Lapuz, told Dow Jones Newswires that the bank made heavy provisions for probable losses in 2005 to comply with more stringent accounting standards — a move that eroded its capital but didn’t send it into the red. New accounting rules, popularly known as International Accounting Standards, require banks to adopt a stricter mark-to-market valuation of investment securities and substantially raise provisions for foreclosed real estate assets, among other measures.

UBP makes P2.7 B, up 21%

Union Bank of the Philippines reported a 21 percent jump in net income to a record P2.76 billion last year from the P2.28 billion earned in 2004 due to strong revenue growth. The bank’s net income has been growing by a compounded annual rate of more than 20 percent in the past five years with return on average equity increasing to 15.4 percent in 2005 from 14.2 percent in 2004 while return on average assets stood at 2.6 percent. Improved profitability was achieved on top of the 20 percent increase in provisions for loan losses to P421 million for the year from P350 million in 2004. The capital markets businesses of the bank showed very strong revenue growth with both accrual and trading gains growing by more than 50 percent. Consumer and small and medium enterprise finance likewise showed record growth. Interest earnings from credit cards, auto loans, mortgage, and Business Line (a loan product secured by customers’ deposits or real property) accounted for more than one-third of the bank’s lending income. Net income from credit cards increased 35 percent year-on-year with new cards generated reaching close to 45,000.

BMBE requirements simplified

The Department of Finance has simplified the requirements for microenterprises — with asset size of P300,000.00 and below — that wish to register as Barangay Micro Business Enterprise (BMBE) under the BMBEs Act of 2002. From a total of nine requirements in 2003, the DoF cut down the number of requirements to only two in accordance with DoF Department Order No. 3105: "Simplifying the Documentation Requirements for the Registration of BMBEs with asset of P300,000.00 or less...," dated December 16, 2005. BMBE applicants that fall under this category need to submit, together with the application form, two documents: a) registration as business concern (e.g. DTI, SEC, CDA Certificate); and b) Mayor’s permit. As provided under the Act, BMBEs can avail of the following incentives: a) income tax exemption from income arising from the operations of the enterprise; b) exemption from the coverage of the Minimum Wage Law (BMBE employees will still receive the same social security and health care benefits as other employees); c) priority to a special credit window set up specifically for the financing requirements of BMBEs; and d) technology transfer, production and management training, marketing assistance programs for BMBE beneficiaries.

FAO gives 0,000 typhoon aid

The Food and Agriculture Organization (FAO) has extended a 0,000 grant in emergency assistance to typhoon-affected areas in Region 3 and Region 4 for the rehabilitation of damaged agricultural lands and infrastructure. Department of Agriculture (DA) Secretary Domingo F. Panganiban said government will provide a P10 million counterpart fund for the FAO grant which will be used to buy equipment and inputs that will restore soil conditions in the affected agrifishery areas. DA has mobilized extension workers in its regional field units in typhoon-hit areas in Luzon to teach farmers advanced farm practices that will raise their yield and income while local government units will provide the technical assistance and logistics support for the field operations. Municipalities in the list of those to be assisted are Real, Infanta, and General Nakar in Quezon province; Dingalan and Baler in Aurora; and Gabaldon, Bongabon, and Laur in Nueva Ecija. The program will also distribute one unit 80 horsepower four-wheel drive tractor, 10 carabao heads, 10 swine heads, and 3333, pieces of assorted planting materials to each of the municipalities.

Security bank posts P255.3 M profits

Security Bank Corp. on Tuesday posted net profit of P255.3 million for the fourth quarter ended Dec. 31. No comparative data was provided by the Philippine commercial bank, which is midsized in terms of assets. In its unaudited financial statement submitted to the Philippine Stock Exchange, the bank said its consolidated interest income amounted to P2.19 billion, while interest expense totaled P1.09 billion, during the three months. Other income for the same period stood at P452.6 million, while other expenses totaled P1.17 billion. Security Bank set aside P29.36 million as provision for bad loans during the quarter. The bank posted earnings per share of P0.78 for the period.

Philweb shares continue to rise

Shares of Philweb Corp surged for the 13th consecutive session in anticipation of Philippine Long Distance Telephone Co (PLDT) unit ePLDT becoming a big investor in the Internet firm, dealers said. In early trading, Philweb advanced by P0.002 or 5.56 percent to 0.038, on volume of 1.0 billion shares. It has now gained about 153 percent since Jan 12. In a statement to the stock exchange yesterday, Philweb said ePLDT will be entitled to three of the 15 seats on its board if it acquires a 20 percent stake in the Internet firm, or about 24 billion shares. Philweb said it is still negotiating the terms and conditions of the buy-in agreement, including the subscription price of the shares. In a separate statement, PLDT said Philweb’s business is of interest to ePLDT as it would provide content to the Internet and mobile telephony businesses of the PLDT group.

Bank of the Philippine Islands (BPI said Monday its unaudited net profit for 2005 was P8.1 billion, up 21 percent from P6.7 in 2004. But the result of the Philippines’ second largest bank in terms of assets could change with the implementation of new accounting standards — known as Philippine Financial Reporting Standards — that will be reflected in the bank’s 2005 audited financial statement due in April, BPI said. BPI said its external auditors are now reviewing all audit adjustments applicable to its operation and its acquisition last year of Prudential Bank. The new accounting rules require banks to adopt a stricter mark-to-market valuation of investment securities and substantially raise provisions for foreclosed real estate assets. BPI said the bank’s total revenue rose 23 percent on year on higher interest income. It didn’t provide an actual figure. It said its total assets at the end of December stood at P528 billion, up 12 percent from the year-earlier period. BPI declared a cash dividend of P2.80 a share, or a dividend payout ratio of 78 percent of last year’s net profit.

PSE okays Keppel block sale

Keppel Philippines Marine Inc. (KPM.PH) said a block sale consisting of 584.97 million of its shares at P0.56 each has been approved by the Philippine Stock Exchange. The block sale accounts for the entire 29 percent stake held by Keppel Shipyard Ltd. in the Philippine-listed ship-repair company, which will be sold to KS Investment Pte. Ltd. No other details of the transaction were disclosed.

Wrisron expands Subic plant

Taiwanese-owned Wistron Infocomm (Phils.) Corp. is expanding its operation in the country with the establishment of a new project as service provider to the electronics industry such as repair and upgrade of defective electronics products. With a project cost of P43 million, Wistron will expand its operation in the Subic Bay Freeport Zone.The project is expected to generate 158 workers and will start commercial operation this month. The proposed activity is covered in the 2005 Investment PrioritiesPlan under Preferred Activities, subheading C. Electronics. Wistron has four existing project registrations with the BoI with the first project registration in October 1995 as new producer of motherboards and addon cards at a capacity of 3.5 million units ayear. The second project was registered in January 1999 for the productionof 330,000 computer notebooks annually and 880,000 base units. The third project is the production of 300,000 units of personal digital assistants. This was registered in June 2005. Wistron Infocomm is 100 percent owned by the Taiwanese-owned Wistron Corp.

Philweb Corp said Philippine Long Distance Telephone Co (PLDT) unit ePLDT will be entitled to three seats on the board of Philweb by acquiring 20 percent stake of the Internet firm, or about 24 billion shares. "[Philweb] management was authorized to negotiate and conclude the agreement with ePLDT with reference to the specific terms and conditions of the investment, including the subscription price of the shares," Philweb told the stock exchange. It gave no other details.

RFM eyes Halal food market

RFM Corporation, the food and beverage firm controlled by the Concepcion family eyes the Halal market to further boost its growing export business. Imelda J. Madarang, company Vice President-General Manager for Corporate Export Division said tapping the Halal market will drive RFM to the forefront of the country’s export market. Halal means lawful or permitted. Under Islamic laws halal meat and poultry must be slaughtered by Muslims and according to established Islamic rites. All foods are considered Halal except pork, carrion, blood and poisonous or dirty animals. Alcohol is also not Halal. Study shows the size of the Halal market is quite huge, between 7 to 8 million in North America and around 1.5 billion in the world. This does not take into consideration the various small communities in non-Muslim countries, which though small, still adhere to the Islamic priniciples and are thus, a captive market for the halal producers. According to Madarang, RFM has already started penetrating several countries in the Middle East including Dubai and Saudi Arabia . Products such as Vienna sausage and hotdogs are already being introduced in these markets. Madarang added Malaysia is also an important market to tap. " Malaysia is positioning itself as a Halal market although it is primarily an electronics market," she added. Apart from the Halal market, RFM is also eyeing a bigger market in the Pacific Islands where its troprical fruit drinks not locally available are very much in demand. RFM’s presence in the Pacific Islands include Saipan , Guam, Palau, Tuvalu , Papua New Guinea, Samoa and Fiji.

SEC exempts MWC’s ESOP

The Securities and Exchange Commission (SEC) has exempted from its registration requirements the proposed issuance of 25 million common shares by Manila Water Company, Inc.. The shares, which will be offered at P6.50 per share, form part of the company’s proposed Employees Stock Ownership Plan (ESOP). This plan is being implemented and administered as a significant aspect of MWC’s long-term merit system. According to MWC, the ESOP is only a privilege, not a right, extended to the company’s managers whereby the company allocates a percentage (not more than 3 percent) of its authorized capital stock for subscription by said personnel under certain terms and conditions stipulated in the Plan. The grantees under ESOP Plan are the employees and officers of the company ( with rank if Manger 1 and up) who may be given allocations pursuant to the company’s incentives and rewards program. The total number of employees and officers of the company who are eligible to participate in the Plan is approximately 160. MWC has two other Stock Option Plans namely: Employees Stock Option Plan (ESOP) and Executive Stock Ownership Plan (Executive SOP). MWC issued 120 million common shares under its ESOP and 23.6 million shares under its Executive SOP. Both issuances were earlier exempted from the registration requirements of the SEC. The exemption give by the SEC was in line with Section 10.2 of the Securities Regulation Code. It provides that the Commission may exempt other transactions, if it finds that the requirements of registration under this Code is not necessary in the public interest or for the protection of the investors such as by reason of the small amount involved or the limited character of the public offering.

Local exporters of wood packaging materials (WPM) would be affected by new debarking requirements imposed by the the European Council (EC). WPMs imported into EU must be made from bark-free wood free from pests and signs of pests, must either be heated or fumigated with methyl bromide following the directive of ISPM 15, and must be officially marked per ISPM 15. The EC also requires WPMs to have a declared moisture content expressed as a percentage of dry matter of less than 20 percent achieved at the time of manufacture. The debarking requirement is optional in the international standard, but it will give the EU an even better protection against the introduction of plant pests and diseases. It is also in keeping with the International Standards for Phytosanitary Measures (ISPM) No. 15 on Guideline for regulating wood packaging material in international trade. The impetus for the new requirements is in the EC’s desire to protect European forests from destructive foreign insect pests. There are also exemptions from the requirements. The exemptions include raw wood that is 6mm or less thick and processed wood such as oriented strand, board, particle board, plywood or veneer created using glue, heat and pressure or a combination of any.

PNB Gen earns P125.2 M

Philippine National Bank’s wholly-owned non-life insurance unit PNB General Insurers Co. Inc. posted net profit of P125.2 million last year, up 11 percent from P112.9 million in 2004. In a statement, PNB Gen’s president and chief executive officer Jose Zuniga said the better profit performance was due to higher premium production and net underwriting margins. He said the company bucked the trend in the non-life insurance industry, which saw a continued drop in premium rates as a result of competition. PNB Gen ranks fifth in term of profitability among 95 licensed non-life insurance firms in the country.

Colgate sells detergent business

SAN FRANCISCO (XFN-Asia) — Colgate-Palmolive Co said it has sold its Southeast Asian heavy-duty laundry detergent brands to Procter & Gamble Co. Colgate said the Procter & Gamble transaction, touching brands marketed in Thailand, Malaysia, Singapore and Hong Kong, includes the sale of Fab, Trojan, Dynamo and Paic. Because of the sale, two detergent dedicated factories will be closed or modified, Colgate said. Colgate said it expects the one-time net gain resulting from the Dec 31 transaction will be fully offset by fourth-quarter restructuring charges under the company’s 2004 plan. Further financial terms were not disclosed. "This sale is part of Colgate’s ongoing strategy to de-emphasize and eliminate low-margin portions of the business while focusing on our high-margin, fast-growing oral, personal and pet care businesses," Reuben Mark, Colgate’s chairman and chief executive, said in a statement. Simplifying the company’s portfolio will increase gross profit margin in the Asia/African division and will enable increased focus on the other businesses, he said.

ADB okays 0-M China loan

BEIJING (XFN-Asia) — The Asian Development Bank (ADB) said it has approved a 0 million loan for wastewater treatment and water quality improvement in the Hai river basin in central China’s province of Henan. The loan will fund construction of facilities to collect and treat wastewater and to deliver clean water to 15 cities around the highly polluted Hai river basin, the ADB said in a statement. The project will also promote institutional and financial reforms and enhanced management, the ADB added. The Hai river basin, one of the three most polluted river systems in China, has been severely affected by domestic and industrial wastewater, the ADB said. Environmental infrastructure has failed to keep up with the region’s rapidly growing economy, and only 34 percent of urban wastewater in the area is being treated, despite water shortages. The project will build sewers, pump stations and treatment centers to increase collection and treatment of urban wastewater to more than 70 percent, the ADB said. The total project cost is about 0 million, half of which will be met by the ADB loan. Local bank co-financing will provide .2 million and central and local government funds will be used for the remaining .8 million. The project should be finished by the end of 2010, the bank said.

TAIPEI (XFN-Asia) — Over eighty percent of Taiwan’s manufacturers that invested abroad last year put their money in China, a government survey shows. Of all manufacturers who invested overseas in 2005, 81.18 percent chose China as a destination, up from 72.90 percent in 2002, according to a survey conducted by the Ministry of Economic Affairs (MoEA). Respondents were allowed to make multiple choices in the survey as their investments might be in more than one location, the MoEA said. In 2005, some 17.01 percent of outbound manufacturers invested in the US, little changed from 17.14 percent in 2002. Another 15.42 percent invested in the ASEAN (Association of Southeast Asian Nations) region, down from 18.62 percent three years earlier.