Banking and Finance Industry

[jvl]

Will Allied Bank retain its name?



BTW Credit Card companies sucks!

[amigo32]

Originally Posted by jvl

Will Allied Bank retain its name?



BTW Credit Card companies sucks!

May utang ka ba?
Kung alam mo paano gamitin, nakakatulong

[red_jasper]

Philippine banks' outlook stable although challenges lie ahead

Fitch Ratings has said that Philippine banks have improved their financial profile over the past two to three years, thanks to better asset quality and enhanced capitalisation, though the less benign economic environment is expected to result in weaker performance with slower growth in lending and underlying profits, as well as a modest deterioration in asset quality. In the agency's opinion, these risks are largely reflected in the banks' relatively moderate to weak Individual Ratings and the Banking Systemic Risk Indicator of 'D' (which denotes low intrinsic quality or strength of the banking system).

After a long period of weak credit demand, loan activity in the Philippines picked up amid the improved economic conditions of 2006-2007, spurred mainly by consumer financing, followed by corporate loans. The share of corporate loans has slightly fallen but still forms a high 75% of total loans at end-2007, compared with 13% and 12% for consumer loans and SME loans, respectively. Fee income opportunities have increased in the businesses of remittance, cash management and wealth management. More importantly, these revenues are more recurring in nature than the volatile trading gains Philippine banks used to enjoy and depend on. NPLs have fallen, mostly by way of disposals and write-offs in addition to recoveries in recent years. NPLs were 6% of total loans (excluding interbank) and had satisfactory reserve coverage of 82% at end-2007. The improved buoyancy of the equity and debt capital markets until a few months ago enabled banks to raise new capital securities to bolster their capital and to also cushion the decline in capital ratios due to Basel II.

The GDP growth forecast of 5%-6% over 2008-2009 still suggests an environment that broadly supports some growth, albeit at a more moderate pace than in 2006-2007. That said, some slowdown in credit demand is likely to arise from the curtailing of consumption spending, particularly in view of rising interest rates, and increased operating costs for businesses. Together with very limited trading opportunities on government securities amid rising yields and possibly mark-to-market losses, Fitch expects this to weaken banks' profitability. NPLs too may rise amid the more challenging operating environment, stemming from rising inflation and interest rates. Foreclosed properties may also be more difficult to dispose of, and will continue to pose a threat to capital. Foreclosed properties were 40% of core equity at end-2007, with low reserve coverage of only 9%.

Here

[kevinb]

Originally Posted by Igsuonnimo

Hindi ba't magbalae sina Lucio Tan at George S.K. Ty?

Ano kaya ang mangyayari sa China Bank at BDO share holdings ni Henry Sy?

Kay Henry Sy naman ang BDO, so dapat walang mangyari sa BDO shares niya. I'm just unsure about his shares in China Bank.

[jvl]

Originally Posted by amigo32

May utang ka ba?
Kung alam mo paano gamitin, nakakatulong

I have one before I called up another bank to inquire. Without any questions, they sent me a new card (probably got my credentials from my existing card upon knowing I exist in this world). I went on vacation for a month and upon return, sifting through my mails, I found a billing from this new card. I got billed for card insurance and stuff. I called them up and they said all was agreed upon when I applied for the card. What agreement? Who applied? I just showed interest. And I haven't even activated the card for g*dsake! So who has agreed?

Anyway, to make a long story short, I had the charges reversed and the card cancelled. After 3 days the same card company is calling me to give them another chance.

No way! I don't feel they could be trusted and maybe they got off on the wrong foot. So many card providers out there, so what the heck!

Peace!

[kevinb]

If you received a card that you didn't apply for, you should've called their Customer Service Department for it to be deactivated. |Cutting the card into two will also deactivate it.

[jvl]

Found it in my mailbox upon return from vacation. The billing came a few weeks after they delivered the card.

The card and billing was un-touched/un-opened until I came from my vacation.


PS. you mean if I cut the card in half it will automatically get deactivated in their records? what kind of technology is that? i suppose you need to inform them by calling as well.

[P A L]

Rest in Peace to Asia's Top Banker Panfilo O. Domingo
Chairman of Allied Bank
Former Chairman of Philippine National Bank

[kevinb]

Originally Posted by jvl

PS. you mean if I cut the card in half it will automatically get deactivated in their records? what kind of technology is that? i suppose you need to inform them by calling as well.

It's stated in one of my Mom's cards. It's a Citi, if I'm not mistaken.

[jvl]

Jeez...nowadays, nobody should easily believe on whatever is written on any creditcard document. Even your billing statement should be reviewed carefully!

Quoting G.W. Bush: Fool me once, shame on you!

[jvl]

Credit card fees eat up gas station profits
By Kathy Chu, USA TODAY
July 7, 2008

Rising gas prices have not only punished consumers. Increasingly, they're also squeezing many gas-station owners.

As gas prices have jumped, station owners' profit margins have shrunk because they now must pay higher fees to credit card companies to process payments. Those fees are so high, says the National Association of Convenience Stores, that they've slashed already slim profit margins and made it hard for stations to make money on gas sales.

If they can't turn a profit at the pump, station owners say, they may have to ask drivers to share the financial burden — in the form of higher prices for convenience-store sundries such as drinks and candy. And some gas stations are starting to ban credit card payments outright.

In 2007, credit card fees cost convenience stores $7.6 billion — more than double the convenience store industry's profits, the National Association of Convenience Stores says. Most of the card fees come from gas sales, says spokesman Jeff Lenard.


When a driver pays for gas with a credit card, retailers must pay an average 2.5% of the sale price to process it, the association says. With gas prices exceeding $4 a gallon, business owners are paying more than 10 cents a gallon, on average, for each card transaction. That nearly consumes what the Oil Price Information Service says was station owners' average of 12 cents a gallon in gross profit over the past month.

As gas prices rise, many station owners say they've had to lower their profit margin per gallon to try to attract more customers.

Peter Madigan, executive director of the Electronic Payments Coalition, representing card companies, says, "There's a cost associated with electronic payments." Processing rates, he adds, are based on the cards' "value" to merchants as well as banks' exposure to loss if a sale is fraudulent.

Lawmakers are paying closer attention to the impact on retailers. A bill in Congress would force credit card companies to negotiate card-processing rates with retailers and have a panel of judges set the rates if agreement can't be reached.

[-TC-]

http://business.inquirer.net/money/b...0-basis-points

BSP raises key interest rates by 50 basis points
By Enrico dela Cruz
Thomson Financial
07/17/2008

MANILA, Philippines – (UPDATE) The Bangko Sentral ng Pilipinas, the country’s central bank, raised key interest rates by half a percentage point on Thursday, the second increase in two months and a relatively aggressive move compared to the first hike of only 25 basis points, to fight double-digit inflation.

Policymakers voted to hike the overnight rates to 5.75 percent for borrowing and 7.75 percent for lending.

"Inflation control is the foremost priority of the central bank," said Governor Amando Tetangco Jr.

"Price pressures have increased even as they are projected to ease starting late 2008."

The central bank expects inflation, which jumped to a 14-year high of 11.4 percent in June, to continue rising in the third quarter as food and energy prices soar, before slipping back to single-digit levels in 2009.

"Sustained high inflation can unseat inflation expectations and potentially create a repeating cycle of lingering inflation and wage pressures that could prove costly to the economy," Tetangco said.

As second-round effects of inflation have set in, with core inflation in June jumping to 6.6 percent from 6.2 percent in the previous month, the central bank said inflation this year could hit 9.0 to 11.0 percent, way above the government's target of 3.0 to 5.0 percent.

The central bank is raising its inflation forecasts for 2008 and 2009 for the second time this year. It was previously looking at an inflation range of 7.0 to 9.0 percent for this year.

For 2009, inflation is seen averaging between 6.0 and 8.0 percent, up from the previous forecast of 4.0 to 6.0 percent.

Despite soaring inflation which has been eroding consumers' spending power, the central bank expects the country's gross domestic product to have expanded 5.6 percent in the second quarter from the year-earlier period, faster than the first-quarter growth of 5.2 percent.

The central bank sees a 5.0-percent GDP growth to be "robust enough" and said it was "prepared to take all necessary actions to address the threat of high inflation and promote price stability."

"By responding promptly to inflation risks, the central bank intends to reduce the risks to inflation expectations and the long-term cost to output growth from prolonged high inflation," Tetangco said.

[-TC-]

http://business.inquirer.net/money/b...fter-rate-rise

Peso gains offshore after rate rise
Reuters
07/17/2008

SINGAPORE -- The Philippine peso rose in offshore spot and forwards trade on Thursday after the central bank raised interest rates by half a percentage point, more than some in the market had expected, to contain inflation.

The peso was quoted as high as 44.64 per dollar in offshore trading, its highest level since June 30, and it rose to 45.04 in three-month offshore non-deliverable forwards (NDFs), its strongest level since mid-June.

The peso ended at 45.03 per dollar in onshore trading, up 1.0 percent from Wednesday's close, before the central bank announced the rate rise and sounded hawkish in its accompanying statement.

"The dollar moved significantly lower in NDFs due to the BSP's (central bank) rate hike of 50 basis points, while crude oil prices are down," said a Manila-based trader.

"The Philippine peso is strengthening (offshore), as markets were caught off guard," said Thio Chin Loo, a currency strategist at BNP Paribas.

"The (dollar's) bullish channel on the daily chart is being challenged as the US dollar breaks below trendline support versus the peso. A crack of support at 44.30 opens further losses to 44.00."

Originally Posted by -TC-

http://business.inquirer.net/money/b...0-basis-points

BSP raises key interest rates by 50 basis points
By Enrico dela Cruz
Thomson Financial
07/17/2008

MANILA, Philippines – (UPDATE) The Bangko Sentral ng Pilipinas, the country’s central bank, raised key interest rates by half a percentage point on Thursday, the second increase in two months and a relatively aggressive move compared to the first hike of only 25 basis points, to fight double-digit inflation.

Policymakers voted to hike the overnight rates to 5.75 percent for borrowing and 7.75 percent for lending.

"Inflation control is the foremost priority of the central bank," said Governor Amando Tetangco Jr.

"Price pressures have increased even as they are projected to ease starting late 2008."

The central bank expects inflation, which jumped to a 14-year high of 11.4 percent in June, to continue rising in the third quarter as food and energy prices soar, before slipping back to single-digit levels in 2009.

"Sustained high inflation can unseat inflation expectations and potentially create a repeating cycle of lingering inflation and wage pressures that could prove costly to the economy," Tetangco said.

As second-round effects of inflation have set in, with core inflation in June jumping to 6.6 percent from 6.2 percent in the previous month, the central bank said inflation this year could hit 9.0 to 11.0 percent, way above the government's target of 3.0 to 5.0 percent.

The central bank is raising its inflation forecasts for 2008 and 2009 for the second time this year. It was previously looking at an inflation range of 7.0 to 9.0 percent for this year.

For 2009, inflation is seen averaging between 6.0 and 8.0 percent, up from the previous forecast of 4.0 to 6.0 percent.

Despite soaring inflation which has been eroding consumers' spending power, the central bank expects the country's gross domestic product to have expanded 5.6 percent in the second quarter from the year-earlier period, faster than the first-quarter growth of 5.2 percent.

The central bank sees a 5.0-percent GDP growth to be "robust enough" and said it was "prepared to take all necessary actions to address the threat of high inflation and promote price stability."

"By responding promptly to inflation risks, the central bank intends to reduce the risks to inflation expectations and the long-term cost to output growth from prolonged high inflation," Tetangco said.

[-TC-]

http://business.inquirer.net/money/t...signs-PERA-law

Arroyo signs PERA law
By Lira Dalangin-Fernandez
INQUIRER.net
08/22/2008

MANILA, Philippines -- President Gloria Macapagal-Arroyo has signed into law the Personal Equity and Retirement Account (PERA) bill in ceremonies in Malacañang Friday.

With the signing of the measure, the country's savings rate is expected to increase as it allows tax-free personal retirement accounts.

The bill aims to promote the culture of savings among Filipinos, particularly overseas workers, who are not members of either the Social Security System or the Government Service Insurance System.

Under the law, an individual can make a maximum contribution of P100,000 per year to his/her PERA account. For married individuals, contributions can be as high as P200,000, and for an OFW and his or her spouse, the maximum amount is P400,000.

Contributions should be invested in a qualified "PERA Investment Product," which may be a unit investment trust fund, mutual fund, annuity contract, insurance or pension products, deposit product, pre-need pension plan, shares of stocks, exchange-traded bonds, or any other investment product or outlet.

Contributors are entitled to an income tax credit equivalent to 5.0 percent of the total PERA contribution, according to the law.

Income from contributions is tax-exempt, it said.

[-TC-]

http://business.inquirer.net/money/t...signs-PERA-law

Arroyo signs PERA law
By Lira Dalangin-Fernandez
INQUIRER.net
08/22/2008

MANILA, Philippines -- President Gloria Macapagal-Arroyo has signed into law the Personal Equity and Retirement Account (PERA) bill in ceremonies in Malacañang Friday.

With the signing of the measure, the country's savings rate is expected to increase as it allows tax-free personal retirement accounts.

The bill aims to promote the culture of savings among Filipinos, particularly overseas workers, who are not members of either the Social Security System or the Government Service Insurance System.

Under the law, an individual can make a maximum contribution of P100,000 per year to his/her PERA account. For married individuals, contributions can be as high as P200,000, and for an OFW and his or her spouse, the maximum amount is P400,000.

Contributions should be invested in a qualified "PERA Investment Product," which may be a unit investment trust fund, mutual fund, annuity contract, insurance or pension products, deposit product, pre-need pension plan, shares of stocks, exchange-traded bonds, or any other investment product or outlet.

Contributors are entitled to an income tax credit equivalent to 5.0 percent of the total PERA contribution, according to the law.

Income from contributions is tax-exempt, it said.

[Porknight]

Originally Posted by Arkdriver

i'm quite surprised to find out that Filipinos dont actually have this kinda forced saving for future retirement plan. In Malaysia they call it EPF (Employees Provident Fund). Government dig the fund to finance infra projects and returns are about 5-6% per annum. Minimum. EPF employ top fund managers and bought shares/invest in many companies to maximise returns.

Apart from helping Filipinos save for their later days, it also help government finance many projects. But it will take years before the PERA will be large enough to be tapped as a source of finance.

Good start.

Lol wow I learn it only now and I'm shock that the government don't take a percentage of the workers' salaries to put into sss .

Probably because most of the salaries are so little. But its not a good excuse neither , because they can take the money from bigger salaries.

[Askal82]

This is somewhat similar to 401k retirement/IRA plan in the US. It's a good idea that they finally introduce this idea over there.

[spearhead]

Implemented na ba ang Bill na yan?

I would like to make contributions to PERA. The question is what Philippine banks with offices abroad offer this. The nearest Philippine-based bank for me is PNB.
What are the mechanics for Filipinos working/living abroad in order to tap this PERA savings fund.

[licoan_kings]

I don't mean to rain on anybody's parade here but considering how badly the Philippine Government has handled money for so long now and corrupt part of it is, could you trust the Government to look after YOUR money?