Banking and Finance Industry

[amigo32]

Originally Posted by stylus59

Guys, I have a question. I am a BPI and Landbank savings account cardholder. How much can I deposit in those banks such that I wouldn't be questioned (eg. source of funds)? I would like to have an anonymous transaction. Thanks again guys.

http://www.amlc.gov.ph/amla.html

Covered & Suspicous Transactions



Covered transactions are single transactions in cash or other equivalent monetary instrument involving a total amount in excess of Five Hundred Thousand (P500,000) Pesos within one (1) banking day
Suspicious transactions are transactions with covered institutions, regardless of the amounts involved, where any of the following circumstances exists:

there is no underlying legal/trade obligation, purpose or economic justification; the client is not properly identified;
the amount involved is not commensurate with the business or financial capacity of the client;
the transaction is structured to avoid being the subject of reporting requirements under the AMLA;
there is a deviation from the client’s profile/past transactions;
the transaction is related to an unlawful activity/offense under the AMLA;
and transactions similar or analogous to the above.

[Monchhichi]

BPI, Japan bank sign deal
Ayala-led Bank of the Philippine Islands and Mizuho Corporate Bank of Japan have established a banking alliance meant to harness opportunities from a new wave of Japanese investments into the Philippines.
Mizuho Corporate Bank – the corporate and investment banking subsidiary of Japan’s biggest conglomerate, Mizuho Financial Group—moves to further deepen its involvement in the Philippines. It also signed a partnership framework with the Philippine Economic Zone Authority on Monday.
“We’re very honored to be the partner of Mizuho. I think BPI has a long history of dealing with Japanese names. The positive side is, typically, when Japanese companies come here, they get involved in manufacturing, which creates lots of jobs and also enables us to offer both consumer and SME (small and medium enterprise) facilities because they also deal with suppliers,” BPI president Aurelio Montinola III said in an interview after the signing.
Montinola said there were big waves of Japanese investors coming to the country in the 1970s and 1980s, which sort of quieted down later. “Now, it’s going up again,” he said.
Hiroshi Suehiro, Mizuho managing executive officer and head of Asia & Oceania excluding East Asia, said the number of Japanese companies investing in the Philippines was “rapidly increasing” particularly in electronics and machinery manufacturing. “That trend will continue,” he said.
Another current trend is the entry of Japanese retailers such as UniQlo and Muji, which seek to tap rising consumer affluence in the country.
The Mizuho executive said Japanese investors were drawn by the political stability under the Aquino regime and the good economic growth trajectory. “More importantly, there’s a large number of quality labor force, young and English-speaking, well-educated,” he said.
“Many Japanese companies in the past were investing in Vietnam, China or some other countries but we’re seeing some kind of labor shortage or rapid increase of wages (there). We think many Japanese companies now re-recognize the strengths, the advantages of (doing) business in the Philippines,” Suehiro said.
Mizuho opened its Manila branch in 1995 and has since then expanded mainly for Japanese companies and some Philippine companies. Recently, interest among Japanese companies in the country was growing.
http://business.inquirer.net/96383/b...bank-sign-deal

[the glimpser]

Banco de Oro gains foothold in Singapore

MANILA, Philippines—The country’s largest bank Banco de Oro Unibank has gained a foothold in Singapore with the opening of a representative office in Southeast Asia’s financial hub.

The BDO representative office, situated at the newly constructed One Raffles Place, was seen to promote the banking arm of tycoon Henry Sy in Singapore’s financial community, “acting as a point of contact for Singaporean companies interested in the Philippine market, and conversely, Philippine companies looking to penetrate Singapore.”

A representative office is usually the route taken by a financial institution seeking to market products in an offshore jurisdiction. But unlike a full branch, the activities of a representative office are limited and cannot be income-generating.

http://business.inquirer.net/100833/...d-in-singapore

One Raffles Quay office building

One Raffles Quay

[the glimpser]

More on BDO...

BDO to invest P2B in new corporate tower in Ortigas

Local banking giant Banco de Oro Unibank expects to invest over P2 billion to complete the 47-story corporate tower being built above The Podium, an upscale shopping mall within the Ortigas central business district.

BDO Corporate Center Ortigas, which is targeted for completion by the first quarter of 2015, is part of the “grand development plan” of BDO and SM Keppel Land Inc. for the two-hectare prime commercial property at the corner of ADB Avenue and Julia Vargas Street.

About two-thirds of the office space in the building will be for internal use while the remaining third will be leased out, Tan said.

But despite the construction of a newer office property in Ortigas, Tan said BDO’s head office would remain in Makati.

It was earlier announced that the master plan for the redevelopment of the Ortigas property may also include in the long run the expansion of The Podium, a second office tower and another mixed-use edifice with hotel and service apartment components.

When The Podium was established years ago, its structural base factored in the eventual construction of a high-rise building above it. Industry sources said the SM group was only waiting for a good time to activate this plan, banking on good prospects for the Philippine economy in the years ahead.

The building has been designed to international grade A standards. “The planning is functional and efficient, and floor-plates allow flexible layouts for both single and multiple tenancies,” said Peter Brannan, director for Asia-Pacific of the internationally known Arquitectonica, the architectural firm in charge of the design of BDO Corporate Center.

The tower was designed to achieve the Gold LEED rating, from its choice of construction and building systems, to the design of the curtain-wall, to the optimum lease depths for good office day-lighting.

http://business.inquirer.net/100725/...wer-in-ortigas

[Bosnyboy]

Ganda ng bldg ng one raffles place ah.

I like that news about the japanese bank mizuho. I think this bank know something we dont know. Maybe there are indeed lots of japanese companies opening mfg plants in the country soon and as such will need some familiar names to serve their banking needs. Cross fingers on this.

[Monchhichi]

Banking sector resources up by 8%
MANILA, Philippines—The resources of the country’s banking sector grew further in October as the expanding economy helped boost the profitability of industry members and deposits from the public.
This was according to data from the Bangko Sentral ng Pilipinas, which said that the growing resources of banks indicated that the industry remained healthy despite the weakness of the global economy.
Data showed that the combined resources of universal and commercial, thrift and rural banks in the country amounted to P7.89 trillion as of the end of October, up by about 8 percent from P7.31 trillion in the same period in 2011.
The BSP said bank resources were largely boosted by growing deposits from enterprises and individuals, indicating their growing confidence in the Philippine banking system.
Of the total resources of the industry, P7.07 trillion was accounted for by universal and commercial banks. Their resources were up by about 8 percent from P6.55 trillion.
Thrift banks posted total resources of P632 billion, up by nearly 11 percent from P571 billion a year ago.
Rural banks, which cater to customers in the rural areas, accounted for the smallest share of P187.76 billion, up by 0.5 percent from P186.77 billion a year ago.
The banks’ profits also form part of their resources.
According to the BSP, the sustained profitability of Philippine banks indicated that they were not significantly affected by global economic problems.
Concerns were raised earlier that a weak global economy, which dampened earnings of exporters, could cause a rise in loan defaults by export-oriented firms. In turn, banks were expected to suffer as well.
Latest data, however, showed that the combined net incomes of universal and commercial banks in the country hit P80.11 billion in the first three quarters of 2012, up year on year by 15 percent from P69.63 billion.
The rise in the profits of banks was attributed to the rising demand for loans and other financial services from a wide range of sectors. Industry members said the performance of the banking industry was influenced largely by the growth of the economy.
The government earlier reported that the economy, measured in terms of gross domestic product, grew by 6.5 percent year on year in the first three quarters of 2012. This was one of the fastest growth rates in Asia during the period.
http://business.inquirer.net/103211/...ources-up-by-8

[Monchhichi]

PNB-Allied Bank Merger Gets All Regulatory Approvals, Starts Feb.

Philippine National Bank (PNB) and Allied Banking Corporation has secured all the necessary regulatory approvals to finally implement their legal merger by February 2013.

In a disclosure to the Philippine Stock Exchange (PSE), PNB corporate secretary Doris Te said the bank has received advise from the Financial Services Authority of the United Kingdom approving the change in control of Allied Bank Philippines (UK) Plc and PNB (Europe) Plc in relation to the merger of the two banks.

Te said PNB has also received the approval of the Securities and Exchange Commission on the merger and the corresponding amendment of PNB’s Articles of Incorporation reclassifying PNB’s authorized preferred shares into common shares and increasing the number of directors to 15 from 11.

The Bangko Sentral ng Pilipinas approved the legal merger of the two banks last August with PNB being the surviving entity. The merger of the banks’ operations are seen to take about two years.

The amended plan of merger of PNB and Allied Bank had been approved by their respective board of directors as early as December 2011 but the merger could not yet push through because of various regulatory approvals needed here and by their branches abroad.

The banks said ING Bank NV, financial adviser to the Lucio Tan Group of companies, have prepared a proposal recommending a share swap ratio between PNB and Allied Bank to approximate the relative contribution of both banks to the merger bank.

Under the amended plan, 130 PNB common shares will be issued for each Allied Bank common share while 22.763 PNB common shares will be exchanged for each Allied Bank preferred share.

They said the exchange ratio for the Allied Bank preferred shares was calculated based on the conversion ratio of these into Allied Bank common shares. Based on the book value of the common shares, each preferred share is equivalent to 0.1751 common share.

The PNB common shares to be issued will be taken from PNB’s authorized but unissued capital stock at a price of R70.00 per share and listed with the PSE. PNB said it will be issuing a total of 423.96 million new common shares for the merger.

Last 2008, the approved exchange ratio was 140 PNB shares for each Allied Bank common share and 30.73 PNB shares for each Allied Bank preferred share with the issue price at R55.00 per PNB common share.
http://www.mb.com.ph/articles/390337...b#.UPt_oR3vH-Y

[hakz2007]

PNB, Allied Bank to merge on February 9

MANILA - Philippine National Bank (PNB) on Tuesday said it would merge with its sister company, Allied Banking Corp, on February 9.

In a disclosure to the Philippine Stock Exchange, PNB said its board has approved the effective merger date in accordance with Article 1.2 of the amended plan of merger. This is still subject to the approval of Allied Bank's board.

Both lenders are owned by Lucio Tan.

Read more

[commoner]

Originally Posted by hakz2007

PNB, Allied Bank to merge on February 9
Read more

Good news indeed. Anyway, anyone knows how the PHL banking system is preparing for the BASEL III?

[nayki]

SDA move a surprise

THE CENTRAL BANK’S move to slash special deposit account (SDA) rates last week was unexpected, said market players who raised the possibility that more surprises could be in store this year.

“The market was anticipating a move to curb the volatility of the peso, but it did not expect a move as aggressive as this one,” BDO Unibank, Inc., chief market strategist Jonathan L. Ravelas told BusinessWorld.

A trader added, “Market players already knew that the Bangko Sentral ng Pilipinas (BSP) would not change policy rates on the back of benign inflation and robust growth. On the other hand, the market did not expect the SDA rate cut.”

The policy-making Monetary Board, in its first meeting for the year last Thursday, kept key rates at record lows of 3.5% and 5.5% for overnight borrowing and lending, respectively. The move was widely expected given optimistic growth and inflation outlooks.

The surprise, though, was that it opted to trim SDA rates instead to 3% across the seven-day, 14-day and one-month tenors. Previously, they were pegged at a slight premium above the overnight borrowing rate of 3.5%.

SDAs, fixed-term deposits by banks and trust entities with the BSP, were introduced in 1998 to expand the central bank’s tools to mop up excess liquidity.

Analysts said more measures can be expected, especially with the Philippines still inundated with capital inflows that have been driving the peso’s strength. The local currency has traded within P40-a-dollar territory this year, well above the BSP’s exchange rate assumption of P42-45.

“The central bank remains concerned about liquidity, given strong inflows into the Philippines, and aims to moderate formation of asset price bubbles,” Barclays said in a report. “We believe possible further measures are tightening rules for consumer loans or adjusting reserve requirements for trust products.”

Mr. Ravelas pointed out that the BSP wanted to show that it was “exhausting all tools” to curb capital flows after having capped non-deliverable forwards and prohibiting non-residents from tapping the SDA facility last year. “Most likely, there will be more measures, especially since the BSP can’t touch the policy rates anymore,” he added.

More than tempering the peso and stemming capital inflows, the central bank’s move could have been motivated by the need for savings, analysts said. With P1.7 trillion parked in SDAs, the BSP is burdened by sizeable interest costs, consultancy GlobalSource said. The central bank posted a net loss of P78 billion from January to October in 2012, as it paid out P77 billion in interest. With some 60 basis points shaved from SDA rates, University of Asia and the Pacific economist Victor A. Abola said the central bank would be able to pay out less for placements. SDA deposits could also fall by at least P60 billion, he projected.

A BSP official, however, said their only objective was to free up money to finance the fast-growing economy.

“We did what we did on the SDA so we can push out funds from the BSP to the various financial markets and business activities... If funds remain with the BSP, we are effectively stifling the development and deepening of our capital markets,” Deputy Governor Diwa C. Guinigundo yesterday said.

It was the perfect time to act since the tame inflation environment gave the central bank “utmost flexibility” in dealing with monetary implications of lower SDA rates, he explained. Inflation is expected to hit just 3% this year, at the low end of the 3-5% target.

Mr. Guinigundo added that the weakening of the peso, management of capital inflows and the creation of savings were only “derivative results,” all “secondary to the main objectives.”

http://www.bworldonline.com/content....prise&id=64956

[pintakasi]

Originally Posted by hakz2007

PNB, Allied Bank to merge on February 9
Read more

nice development. if there's enough money, now's the time to buy more stocks of pnb before the m & a

[hakz2007]

BPI Reports P16.3-B Net Income

The Bank of the Philippine Islands (BPI) posted a 27 percent improvement in unaudited net income to P16.3 billion last year from the P12.8 billion it earned in 2011, translating to a Return on Equity of 17.5 percent and a Return on Assets of 1.9 percent.

In a disclosure to the Philippine Stock Exchange, BPI said it generated strong business volume and revenue growth in 2012 as the Philippines likewise grew at a faster pace compared to other ASEAN economies.

Read more

[Bosnyboy]

Originally Posted by nayki

SDA move a surprise


http://www.bworldonline.com/content....prise&id=64956

Kaya nga lalo nag surge ang local stock market dahil nagsilipatan ang mga may sda to buying stocks.

[hakz2007]

Number of bank HQs, branches in PHL passes 9,000 mark

The number of bank head offices and branches in the Philippines rose to 9,301 as of the end of September 2012, data from the Bangko Sentral ng Pilipinas shows.

The number is up from 8,495 as of end-June 2012 and shows an increase of 1,066 from the same period in 2011.

Of the latest total, 705 are head offices—and therefore representing the number of players in the industry—and 8,596 are branches.

Read more

[Monchhichi]

Union Bank finalizes takeover of Cebu thrift bank
MANILA, Philippines—Aboitiz-led Union Bank of the Philippines has obtained board approval to take over 99.54 percent of 32-branch Cebu-based thrift bank City Savings Bank (CitySavings) for P5.7 billion.
In a disclosure to the Philippine Stock Exchange on Wednesday, Union Bank said it would buy the controlling stake in CitySavings from parent conglomerate Aboitiz Equity Ventures (AEV) and Pilmico Foods Corp. at 2.5 times the thrift bank’s book value.
AEV, which owns 45 percent of Union Bank, owns CitySavings together with its wholly owned subsidiary Pilmico Foods Corp. After the acquisition, CitySavings will remain as a separate corporate entity, keeping its company name as well as its brand identity of simple and straightforward banking.
Union Bank will buy the combined 194,371 shares of AEV and Pilmico in CitySavings, marking a consolidation of the banking interests of the Aboitiz group under Union Bank.
Its acquisition of CitySavings is seen in line with Union Bank’s long-term strategy of beefing up its retail banking base and consumer-based portfolio.
Established in 1966, CitySavings has more than 300 employees, a stockholders’ equity of about P1 billion and total resources exceeding P9 billion, based on the bank’s website. It has 99,000 borrowers and a depositors’ base of about 59,000.
http://business.inquirer.net/106393/...bu-thrift-bank

[jpdm]

Originally Posted by hakz2007

PNB, Allied Bank to merge on February 9
Read more

The soon to be fourth largest Philippine Bank is becoming a reality.

[commoner]

Originally Posted by jpdm

The soon to be fourth largest Philippine Bank is becoming a reality.

this is what we need. sana mas marami pang mergers or takeovers... quality vs quantity... especially now na malapit na ang BASEL III

[hakz2007]

Lucio Tan holding firm buys stake in PNB

MANILA - The holding firm of Lucio Tan announced on Tuesday that it will acquire the minority shareholders of Philippine National Bank (PNB), which he also controls.

In a disclosure to the Philippine Stock Exchange, LT Group Inc (LTG) said it will buy 7.77 percent of PNB, which yesterday merged with Allied Banking Corp, which Tan likewise owns. The minority stake is held by Merit Holdings & Equities Corp, Ivory Holdings Corp, Leadway Holdings Corp and Dunmore Development Corp.

Read more

[Monchhichi]

UCPB ’12 profit up by 22%

MANILA, Philippines—United Coconut Planters Bank posted a net profit of P3.73 billion last year, 22 percent higher than the previous year, on higher interest earnings and extraordinary treasury gains.
“In spite of 2012 being a demanding year both strategically and financially, we at UCPB are satisfied to have achieved these results. We are definitely looking forward to this year, being our 50th anniversary, and revisiting the basic fundamentals that have made us a reliable banking partner for our target market,” UCPB president and chief executive officer Jeronimo Kilayko said in a statement.
The bank grew its loan book by 24 percent to P87.72 billion last year, with the consumer portfolio rising by 33 percent. Corporate accounts made up 45 percent of the loan portfolio.
Net interest income rose about 4 percent to P3.56 billion year on year.
Like most of its peers, the decline in interest rates to record-low levels last year favored the treasury business. Securities trading gains jacked up UCPB’s non-interest income by 47 percent to about P5.2 billion last year.
On fee-based business, ATM transactions grew by 20 percent from the previous year. “The growth in fees will continue to be robust because of the introduction of products such as UCPB Connect, an online facility meant to provide banking flexibility and convenience to clients. This fairly advanced banking system includes a mobile banking component which allows users to access their bank statement and pay bills through mobile devices,” the bank said.
UCPB ended 2012 with total assets hitting P218.72 billion, up by 9 percent from a year before. This was attributed to “sound financial fundamentals and knowledge of the current market conditions.”
Total capital stood at P20.27 billion, 15 percent higher than the previous year.
http://business.inquirer.net/109307/...rofit-up-by-22

[Monchhichi]

Riyadh-based AGFUND to open bank in PHL

The Arab Gulf Programme For Development (AGFUND) is opening a micro-finance bank in the Philippines that is modeled after the Grameen Bank system with an initial capital of $5 million, the Riyadh-based non-profit organization said late Monday.

Grameen Bank is a microfinance organization and community development bank started by Fulbright scholar at Vanderbilt University and Professor at University of Chittagong Muhammad Yunus in Bangladesh in 1976. The idea behind the bank is to provide microcredit to poor women without any collateral.

The bank in the Philippines—the first in Asia—is part of AGFUND's social business drive and will start operating in 2014, executive director Nasser B. Al-Kahtani told reporters in an interview.

“We are not limited to Arab countries,” he said. “We want to expand Southeast Asia and make the Philippines our hub in the region,” Al-Kahtani added.

AGFUND is putting up a 40 percent stake in the venture, or $2 million in seed money which will be matched by a counterpart investment from the Philippine government and the private sector.

“We we will have a follow-up a meeting with the BSP on Friday this week,” said Al-Kahtani.

“The government is very supportive. Once we get a partner, we will submit our application for a license,” he added.

The AGFUND official noted the feasibility study for the Philippine bank was completed last December, saying talks are now ongoing with various chambers of commerce, the Department of Finance and Bangko Sentral ng Pilipinas regarding the bank's license to operate.

AGFUND president and founder, Prince Talal Bin Abdul Aziz, took Grameen Bank founder Yunus as a strategic partner in the region for its social business initiative.

In the case of the Philippines, Filipinos will operate the bank and head the board of directors. “We need local business people to take the lead for this project,” Al-Kahtani said.

Under its Grameen system which was started in 2006, AGFUND now covers 250,000 households with 1.2 million individual beneficiaries and 1,000 projects.

“Our target is to reach a total of one million households in five to ten years,” Al-Kahtani noted.
http://www.gmanetwork.com/news/story...en-bank-in-phl