Educational plans top insurance priorities of Mindanao consumers

 Economy
Feb 152014
 
Educational plans top insurance priorities of Mindanao consumers

MANILA, Philippines – Educational plans, health and life insurance are the priority of Mindanao residents according to a survey by Sun Life of Canada (Philippines) Inc. It noted that 42 percent of respondent said getting an educational plan stood as the most urgent concerns in the next couple of years, while 36 percent said they plan to purchase  health  insurance. Conducted in Davao and Cagayan de Oro with 200 respondents in the second half of 2013, the survey showed that more Mindanaoans aim to purchase products including educational plan, health insurance, life insurance, and pension plan. Twenty-eight percent is considering purchasing life insurance and 24 percent intend to get a pension plan. However, Sun Life said the intention does not necessarily ensure the respondents will actually push through with the purchase. The Mindanaoan’s budget is still allocated to food, house rental or mortgage, and education. But only one percent of the respondents stated that investments and insurance are included in their monthly budget allocation. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “What they could be missing is that it is with investments that they could grow their money and insurance is their means to protect it,” the survey indicated. While they will have to spend for both, the benefits may well be worth it. “In the long run, these could benefit them far better than entrusting all their money in a savings account – which, according to the survey, is how Mindanaoans define financial  security  (37  percent)  as Read More …

ADB extends $250-M loan for LGU review

 Economy
Feb 152014
 
ADB extends $250-M loan for LGU review

MANILA, Philippines – The Asian Development Bank (ADB) has extended a $250-million loan to help the Philippines design ways to improve the financing system of local government units (LGUs). The reform program will receive parallel co-financing of $150 million from the Agence Française de Developpement. The loan will be used to fund a comprehensive review of the country’s Local Government Code “to boost municipal revenues streams for the provision of better basic services and to assist local economic development and job creation.” ADB’s Southeast Asia Department senior public management specialist Juan Luis Gomez noted that the Philippines has taken significant steps to improve the financing system of LGUs and foster transparent and accountable local governance practices. “Reforms should help raise revenues and therefore improve services,” Gomez added. Despite these efforts, weak local tax bases and flaws in the design of transfers make it hard for poorer local governments to deliver the services their constituencies require. As a result, regional disparities in living standards remain wide. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 This, however, could be efficiently addressed with a review of the Local Government Code. LGUs represent close to 17 percent of total government expenditures and play a critical role in the provision of basic services like health, education, or housing and community development. The reforms include performance-based mechanisms such as the Performance Challenge Fund, which ties greater access to funding to performance, and the “Bottom-up-Budget,” which can improve budget transparency and alignment of national and local Read More …

COL Financial finalizes more partnerships to boost income sources

 Economy
Feb 152014
 
COL Financial finalizes more partnerships to boost income sources

MANILA, Philippines – Listed online brokerage firm COL Financial Group Inc. is finalizing more partnership deals with top asset managers and investment houses looking for new channels to distribute their products. New agreements will make COL a one-stop shop for investments while boosting its fee-based income, an executive said. “The intention of COL is to give customers a chance to invest in different funds out there,” said company president and CEO Conrado Bate said. “Our role here is not only to provide these funds on the website but also to select funds that will meet their investment objectives at the least possible cost,” Bate said. In January, the online brokerage firm entered into an agreement with Ayala Corp.’s BPI Asset Management and Trust Group and Sun Life Asset Management Company Inc., allowing COL to distribute mutual funds and Unit Investment Trust Funds, investment schemes. Given these deals, COL can also start offering money market funds, bond funds, fixed income funds, actively-managed funds, balanced funds and index funds, making it a one-stop shop, Bate said. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 These deals, Bate said, will allow COL to cater to different client preference and risk profile. COL is confident its technological platform is ready to handle not only online trading transactions but investments in professionally-managed funds. “[Partnering with different institutions] will also help expand the revenue base of COL,” Bate said, adding that management fees provide stable earnings and more predictable flow of revenues. Given continuing market Read More …

Firm offers rent-to-own program to speed up sales in Bayswater

 Economy
Feb 142014
 
Firm offers rent-to-own program to speed up sales in Bayswater

BEFORE they start work on their development in Talisay City, the developers of Bayswater Subdivision would rather complete their project in Lapu-Lapu City. To hasten the sale of remaining units, they hope their rent-to-own scheme will do the trick. Lyn Cutanda-Veits, marketing manager of Bayswater, which is being developed by MSY Holdings, said there are about 110 of the 800 units in the 10.5-hectare subdivision that are available for the rent-to-own scheme. Although the monthly payments for the scheme are about the same with the monthly amortization for units acquired through bank loans, Veits said ready-to-own units will be made available faster. She explained that if done through bank financing, units are constructed once the equity payments are completed. Under the rent-to-own scheme, they ask for 30 days to prepare the unit and the homeowner can move in. Waiving requirements Veits said they want to complete the sale of Bayswater Mactan within the year so that their next project in Talisay can begin, which is why they are pushing for the rent-to-own scheme as an alternative to attract buyers who want to move in earlier. She added that they are waiving the bank pre-approval requirements to hasten the process as long as reservation fees have been paid, the buyers pass the capacity-to-pay requirements and have given two months’ deposit and postdated checks for the monthly rental. Bayswater Mactan was started in 2007. They have turned over 50 percent of the units while 45 percent have been occupied. Veits said the Read More …

ALI eyes debt market to fund P66-B capex

 Economy
Feb 142014
 
ALI eyes debt market to fund P66-B capex

MANILA, Philippines – Property giant Ayala Land Inc. (ALI) is tapping the debt market as a major fund source for its P66-billion capital spending this year. The property developer of the Ayala conglomerate is banking on high liquidity in the financial service sector for its fundraising program, a top company executive said. “(Fundraising will be) still primarily through debts…we have debt capacity that we can utilize,” said ALI chief finance officer Jaime Ysmael. ALI has already refinanced most of its debts, making the company comfortable in the current maturity profile and interest rates due to lenders, he said. The real estate firm is allotting close to P70 billion for its capital expenditures this year to support landbanking and project developments. In 2013, ALI spent P66 billion for its various projects, backed by a P12.2-billion overnight share sale in March, a P15-billion bond sale in August and a P6-billion bond offering in October. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 “Given our pipeline of projects, we estimate that our capital spending will be similar in magnitude [for 2014],” Ysmael earlier said. “Hopefully the high liquidity in the banking system will help mitigate any increase [in interest rates],” he said. The Bangko Sentral ng Pilipinas has assured companies it has a wide range of toolkit to address any possible rate increases and make economic conditions still workable for everyone, Ysmael said. ALI is primarily into the development of residential projects, lease of commercial and office space and sale of prime Read More …

Jollibee posts fastest profit growth in 7 yrs

 Economy
Feb 142014
 
Jollibee posts fastest profit growth in 7 yrs

MANILA, Philippines – Strong sales in existing branches and new stores drove fastfood giant Jollibee Foods Corp. (JFC) to its fastest earnings growth in seven years. In a regulatory filing, JFC said its net income jumped nearly a quarter to P4.64 billion in 2013 from P3.72 billion in 2012. Systemwide sales, which measures sales to consumers both from company-owned and franchised stores, picked up 12.8 percent to P104.9 billion from P92.27 billion. “The company increased its sales by 12.8 percent, the highest organic sales growth in six years, enabling JFC to breach the P100-billion sales mark for the first time,” said JFC chief operating officer and incoming COO Ernesto Tanmantiong. “Our progress in building the business has been taking place across our brands in different countries,” Tanmantiong said, adding the profit growth was the fastest in seven years. In the fourth quarter alone, JFC’s profits climbed 20.3 percent to P1.51 billion from P1.26 billion as systemwide retail sales rose 13.9 percent to P28.86 billion from P25.35 billion. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Specifically, systemwide sales in the Philippines gained 12.2 percent, China by 19.2 percent, US by 17.2 percent, and Southeast Asia and Middle East by 35.3 percent. Tanmantiong said the fastfood chain opened 98 new stores in the fourth quarter, the highest number of new stores opened in one quarter in JFC’s 35-year history. In 2013, JFC spent P4.1 billion as it opened 235 new stores worldwide. “In the years ahead, we look forward to Read More …

Melco Crown incurs higher $8.3-M Q4 loss

 Economy
Feb 142014
 
Melco Crown incurs higher $8.3-M Q4 loss

MANILA, Philippines – Macau-based casino giant Melco Crown Entertainment Ltd. continued to incur losses for its Philippine operations ahead of the opening of its $1.3-billion integrated resort complex in Manila. In a regulatory filing at the Hong Kong Stock Exchange, Melco Crown said its operating losses in the Philippines hit $8.29 million in the fourth quarter last year, up 13 percent from $7.32 million the previous period. “On a fully consolidated basis, we incurred approximately $8.3 million of operating expenses in the fourth quarter of 2013 at City of Dreams Manila,” Melco Crown said. Higher expenses resulted from “pre-opening costs as well as share-based compensation cost,” the gaming firm said. Melco Crown said it also incurred $10.1 million in capital lease charges relating to building lease payments for City of Dreams Manila. Its local unit, Melco Crown (Philippines) Resorts Corp., committed to pay $35 million as rent to Belle Corp., the leisure arm of the SM Group and the builder of the casino complex. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Melco Crown said it posted $37.23 million in operating losses from City of Dreams Manila for the entire 2013, more than five times the $7.32-million loss in 2012. When it opens in the third quarter this year, City of Dreams Manila will offer 365 gaming tables, 1,680 slot machines and 1,680 electronic table games. Previously, the casino planned to offer only 242 gaming tables and 1,450 electronic gaming machines. It will be the second casino complex to Read More …

DBP income up 27.85% to P5.28 B

 Economy
Feb 142014
 
DBP income up 27.85% to P5.28 B

MANILA, Philippines – The Development Bank of the Philippines (DBP) registered a net income of P5.28 billion last year, a 27.85-percent growth from P4.13 billion in 2012, buoyed by significant increases in deposits, loans to borrowers, and investments. In a statement, DBP said deposit levels grew 41.92 percent from P176.92 billion in 2012 to P251.08 billion last year. Loans to borrowers increased seven percent from P118.93 billion to P127.37 billion. Meanwhile, investments jumped from P97.74 billion to P145.75 billion in 2013. Total assets increased to P436.1 billion from P361.08 billion in 2012, while capital adequacy ratio stood at 24.33 percent as of end-2013. DBP president and chief executive officer Gil A. Buenaventura said 2013 was a great year for the government-run development bank. “But challenges lie ahead such as the ever-increasing industry competition and stricter capital regulations,” he said. The bank supports the inclusive growth strategy of the National Government as stated in the Philippine Development Plan, he added. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 DBP helps finance projects under the government’s Public-Private Partnership (PPP) program. It now plans to expand its PPP financing program to include projects of local government units. The bank continues to provide financing to projects in the priority areas of infrastructure and logistics, social services, protection of the environment, micro, small and medium enterprises. Meanwhile, Buenaventura said DBP would increase its number of branches to 102 and expand the number of its ATMs in key locations nationwide. The bank plans to offer Read More …

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