Page 10 - Hello Philippines March 2016 'A' issue

10 www.hello-philippines.com BUSINESS & FINANCE March 2016 – No. 05 • UK & Europe Edition

Lending toDESPITE A CHALLENGING 2016 help grow PHL banks
PHILIPPINE banks are expected
to benefit from healthy capital and focused on the challenges the industry rate and global economic environment revenues from the BPO (business to be strong, given the increase in high-
asset quality as well as the optimism is facing this year. in 2016.” process outsourcing) industry and yielding consumer loans.
about the domestic economy this year, inflow of remittances,” UCPB President
according to Standard and Poor’s Downside risks. In a separate S&P said it expects Philippines Jeronimo U. Kilayko said. “We believe the combination of
Ratings Services (S&P). interview with GMA News Online, interest rates to go up this year. sound capital and funding profiles is
Security Bank Corporation President “I expect the Philippine banking an enduring strength of the Philippine
“The Philippines’ robust economy Alfonso Salcedo Jr. noted the downside “We also anticipate that domestic industry to continue to do well even banking system and will continue to
will likely continue to drive expansion risks are coming from the economic interest rates in the Philippines will amidst the challenges of the global underpin ratings in 2016,” S&P’s Tan
in domestic credit at about two to three slack in China and the volatile oil trend upward, which may cause banks economic environment,” he added. said. n Jon Viktor D. Cabuenas / VS GMA News /
times GDP (gross domestic product) prices. to book market-to-market loans on
growth,” S&P analyst Ivan Tan said in their significant holdings of fixed-rate Margins on interests are expected Published / February 24, 2016 / 4:38 pm
a statement on Wednesday. “China’s slowing economy and government bonds,” S&P said.
its geopolitical interest in the South
The statement accompanies the China Sea are developments we should “This augurs well for businesses
debt-watcher’s report, “The Philippines’ closely watch,” he said. that will want to expand,” Salcedo
Supportive Economy Underpins A noted, saying consumer loans will
Stable Outlook for its Banking Sector On oil prices, Salcedo noted the continue to grow.
in 2016.” Philippines has to be “vigilant” while
evaluating how it can capitalize on the Reflection of the economy. United
Tan is forecasting that loan growth commodity’s volatility. Coconut Planters Bank (UCPB) said
in the Philippines will reach 8 to 12 the banking industry will tide over the
percent for 2015 and 2016, which In an earlier disclosure to the challenges.
“remains high by regional standards.” Philippine Stock Exchange, Rizal
Commercial Banking Corp. (RCBC) “The banking industry is a reflection
Despite the rosy picture from S&P, President and CEO Lorenzo V. Tan of the economy which is doing well,
Philippine bankers noted they are noted that banks will continue to face thanks to the sound monetary policies
a “more challenging regulatory interest and smooth operations of the Bangko
Sentral ng Pilipinas and the strong

PH-EF TA char ts substantial progress af ter Round 5
MANILA - The Department of and are optimistic that we can sign the Prior to the negotiations, the DTI and long term relationship through the The Philippines is also actively
Trade and Industry (DTI) intensifies agreement before June this year,” said DTI conducted eight consultations on a ongoing negotiations with EFTA,” Rodolfo participating in negotiations on the
efforts to deepen and strengthen the Undersecretary for Industry Development possible PH-EFTA free trade agreement. said. Regional Comprehensive Economic
country’s strategic trade and economic Dr. Ceferino S. Rodolfo. “We are grateful to the private sector, to Partnership (RCEP).
partnerships with the recent conclusion the government agencies, civil society, and He added that establishing a strong
of the 5th round of negotiations on the EFTA, composed of member economies the academe for their active involvement foothold in the European market is a key Rodolfo said that the DTI will continue
Philippines-EFTA Free Trade Agreement. Switzerland, Liechtenstein, Norway, and participation in the series of component of the country’s trade strategy. technical consultations with the rest
and Iceland, concluded its 5th round of consultations held since 2013 prior to the of the Trans-Pacific Partnership (TPP)
“We have made substantial progress negotiations with the Philippines earlier negotiations with EFTA,” he added. In 2014, the top Philippine exports to the member countries including Chile, Peru,
in key areas of complementation this month. EFTA Member States include gold in semi- Japan, and Viet Nam.In 2015, technical
Rodolfo said that, with the nearing manufactured forms, digital monolithic consultations were held with Canada
integrated circuits, aircraft parts, printed
and Mexico following consultations with
conclusion of the FTA negotiations, circuits, artificial teeth and silver.
On the other hand, Philippine imports the United States, Malaysia, Australia,
the government is developing a work
program that will encourage and promote from EFTA include medicaments, diagnostic and New Zealand which were concluded
utilization of the free trade agreement so or laboratory reagents, parts of airplanes in 2014.
“The country’s sectors and
Philippine industries and sectors will be or helicopters and wrist-watches.
“Improving market access with Europe industries stand to benefit greatly
able to benefit from the opportunities and through EFTA will encourage investments from these trade initiatives. These will,

potential of the PH-EFTA FTA.
“Right now, most Philippine products in the services and non-services sector, as well, further improve the country’s
have duty free access to the EU through bring in high value added products, global standing as we engage in freer
the European Union’s Generalized Scheme technological knowhow, and capital from trade and attract more foreign direct
their highly developed economies to our investments,” Rodolfo concluded. n
of Preferences Plus (EU-GSP+).

We are targeting a more permanent local economy,” he added. InterAksyon.com / February 26, 2016 / 5:34 pm

SEASONAL DIP PHL business confidence drops in Q1 2016 – BSP survey
THE business sector is less have had so far, 10 showed a downturn. driven by election-related spending

optimistic about the first quarter of the That’s a two-thirds majority reflecting in the run up to the May elections,

year as economic activity slows down the seasonality,” he said. more orders and projects, and higher

after the holiday season, according to The Bangko Sentral also noted the demand for summer.

the latest Business Expectations Survey decline in world oil prices and other Respondents also expect the

conducted by the Bangko Sentral ng commodities, as well as growing introduction of new and enhanced

Pilipinas (BSP). concerns about the global economic business processes, business

The overall confidence index (CI) growth amid the weak performance of expansions, and new product lines.

declined to 41.9 percent for the first China. “In anticipation of brisker business

three months of the year from 45.2 The drop in optimism was also for Q2 2016, the outlook of firms on

percent a year earlier and 51.3 percent linked to the wait-and-see attitude the volume of business activity for the

in the fourth quarter of 2015. of businesses in relation to the May quarter ahead turned more optimistic

“Business sentiment remains elections, the adverse impact of El across sectors,” the central bank said in

favorable for the first quarter although Niño, the strong market competition, a separate statement.

optimism was lower from the outlook and the bearish trend in the stock The employment outlook also

a year ago,” BSP Monetary Policy market. increased to 27.2 percent from 19.5

Subsector Managing Director Francisco On the other hand, businesses were percent, indicating expectations of an

G. Dakila Jr. told reporters on Friday. more optimistic about the second overall increase in the number of new

The less upbeat outlook was quarter, with the index rising to 49.6 employees for the second quarter.

seasonal for the first quarter, Dakila percent from 43.9 percent. On inflation, more respondents first quarter and 2.1 percent in the The survey was conducted from

noted. “The next quarter CI suggests that expected inflation to rise for the second quarter. January 5 to February 17, with a total

“Movement is really to be expected economic growth could be higher for current and next quarters. More respondents also expected the of 1,539 respondent firms. n Jon Viktor D.

because this is largely due to the next quarter,” Dakila said. Still, businesses expected inflation peso to appreciate and interest rates to Cabuenas / VDS, GMA News / Published / February 26,

seasonality. Of the 15 survey results we A more favorable outlook was to “remain low” at 1.9 percent in the increase in the first quarter of the year. 2016 / 6:00 pm