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Business Times
7 days ago
- Business
- Business Times
Top Philippine bank likely to sustain record profit, CEO says
[MANILA] BDO Unibank, the Philippines' biggest lender, expects to sustain record-high earnings this year on broad-based growth in lending, its chief executive said, easing investor worries over the impact of US tariffs. 'It's not ideal, it's not what we want but we can live with it,' chief executive officer Nestor Tan said on US tariffs in an interview with Bloomberg Television's Haslinda Amin on Tuesday (Aug 12). 'I don't think the banking sector will be affected that much. Of course there may be a slowdown.' Washington began imposing this month a 19 per cent tariff on Philippine goods, on par with most of its neighbours. BDO, owned by the family of late billionaire Henry Sy, reported a net income of 40.6 billion pesos (S$914.7illion) in the first half of the year, up 3 per cent from a year ago. Profit rose 12 per cent to a record 82 billion pesos for all of 2024. Shares of BDO, among the heavyweights in the benchmark Philippine Stock Exchange Index, edged higher after falling as much as 2.1 per cent earlier on Tuesday. The stock has dropped 1.4 per cent this year. Tan said a stable geopolitical situation and macroeconomic indicators will be key for the Philippines to attract investors. He expects BDO's revenues to grow by low double-digit levels this year. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'There are two things that we're looking at. Number one is stability and we're seeing that slowly happening. Second is probably a more benign interest rate environment,' the bank executive said. He expects the Bangko Sentral ng Pilipinas to further cut its key interest rates twice for the rest of the year. 'It impacts our margin negatively because the yields are expected to go down a few basis points,' Tan said. 'But we're hoping that with lower interest rates, capital expenditure lending will start to pick up, and that we hope the volume will offset for the margin compression.' The bank last month raised 115 billion pesos from a 1.5-year bond, the South-east Asian nation's largest corporate bond sale. Tan said it's part of the bank's funding mix 'and when we expect rates to go down, we try to keep our liability short.' He sees the bank returning to the bond market next year. The government is targeting lower economic growth of 5.5 per cent to 6.5 per cent this year compared with a previous goal of as much as 8 per cent. BSP governor Eli Remolona has said the monetary authority has room to continue its easing cycle next year after possibly two more quarter-point cuts for the rest of 2025. BLOOMBERG
Mint
7 days ago
- Business
- Mint
Top Philippine Bank Likely to Sustain Record Profit, CEO Says
(Bloomberg) -- BDO Unibank Inc., the Philippines' biggest lender, expects to sustain record-high earnings this year on broad-based growth in lending, its chief executive said, easing investor worries over the impact of US tariffs. 'It's not ideal, it's not what we want but we can live with it,' Chief Executive Officer Nestor Tan said on US tariffs in an interview with Bloomberg Television's Haslinda Amin on Tuesday. 'I don't think the banking sector will be affected that much. Of course there may be a slowdown.' Washington began imposing this month a 19% tariff on Philippine goods, on par with most of its neighbors. BDO, owned by the family of late billionaire Henry Sy, reported a net income of 40.6 billion pesos ($710 million) in the first half of the year, up 3% from a year ago. Profit rose 12% to a record 82 billion pesos for all of 2024. Shares of BDO, among the heavyweights in the benchmark Philippine Stock Exchange Index, edged higher after falling as much as 2.1% earlier Tuesday. The stock has dropped 1.4% this year. Tan said a stable geopolitical situation and macroeconomic indicators will be key for the Philippines to attract investors. He expects BDO's revenues to grow by low double-digit levels this year. 'There are two things that we're looking at. Number one is stability and we're seeing that slowly happening. Second is probably a more benign interest rate environment,' the bank executive said. He expects the Bangko Sentral ng Pilipinas to further cut its key interest rates twice for the rest of the year. 'It impacts our margin negatively because the yields are expected to go down a few basis points,' Tan said. 'But we're hoping that with lower interest rates, capital expenditure lending will start to pick up, and that we hope the volume will offset for the margin compression.' The bank last month raised 115 billion pesos from a 1.5-year bond, the Southeast Asian nation's largest corporate bond sale. Tan said it's part of the bank's funding mix 'and when we expect rates to go down, we try to keep our liability short.' He sees the bank returning to the bond market next year. The government is targeting lower economic growth of 5.5% to 6.5% this year compared with a previous goal of as much as 8%. BSP Governor Eli Remolona has said the monetary authority has room to continue its easing cycle next year after possibly two more quarter-point cuts for the rest of 2025. --With assistance from Anand Menon and Cecilia Yap. More stories like this are available on
Yahoo
31-01-2025
- Business
- Yahoo
Philippine Benchmark Stock Index Slides 20% From October High
(Bloomberg) -- Philippine stocks fell for a fifth day, pushing the nation's benchmark index into a bear market, amid concern over potential global headwinds and disappointing domestic economic data. Manhattan's Morning Commute Time Drops With New Congestion Toll How the 2025 Catholic Jubilee Is Reshaping Rome Trump Paves the Way to Deputize Local Police on Immigration Housing Aid Uncertain After Trump's Spending Freeze Memo Trump's Federal Funding Pause Threatens State Financials The nation's benchmark equity gauge slid to the lowest level in more than two years as the prospect of higher US tariffs threatened by US President Donald Trump damped the optimism of global equity investors. A government report published Thursday showed the local economy grew slower than analysts expected, hurt by sluggish investment, consumption and farm output. 'The bout of continuing weakness is likely being underpinned by the lack of a positive catalyst,' said Rastine Mackie Mercado, an analyst at Chinabank Securities in Manila. Investors are also awaiting the release of fourth-quarter and full-year company's earnings reports, he said. The Philippine Stock Exchange Index slipped 4% Friday to 5,862.59, more than 20% below its October high, and the lowest closing level since October 2022. The nation's gross domestic product rose 5.2% last quarter from a year earlier, the statistics agency said on Thursday. That fell short of the 5.5% median estimate in a Bloomberg survey and matched the 5.2% pace in July to September The weaker-than-expected Philippine economic growth disappointed investors, said Claire Alviar, an analyst at Philstocks Financial in Manila. Uncertainties over President Donald Trump's policies are also weighing down the market, she said. Among the biggest decliners Friday, conglomerate San Miguel Corp. sank 20% to its lowest close since January 2016, while Alliance Global Group Inc. slipped the same amount to its weakest level in more than four years. All except two firms in the 30-company benchmark index basket dropped. Indy Pass, the Anti-Vail Seasonal Ski Ticket, Is Gaining Fans The Internet Almost Killed Barnes & Noble, Then Saved It What America's Tech Billionaires Really Bought When They Backed Donald Trump Musk Pitches New Narrative as Tesla Sales Fall Forget Factories, Small US Towns Want Buc-ee's Gas Stations ©2025 Bloomberg L.P. Sign in to access your portfolio
Bloomberg
31-01-2025
- Business
- Bloomberg
Philippine Benchmark Index Declines 20% From October High
Philippine stocks dropped, putting the the nation's benchmark index on course for a bear market, amid concern over disappointing economic growth and rising global headwinds. The Philippine Stock Exchange Index fell as much as 1.2% Friday to 6,037.16, taking its slide from its October high to more than 20%.
