MANILA, PHILIPPINES (August 29, 2008) - Philippine economic growth in the second quarter slowed to its lowest rate in three years as higher inflation hurt consumption and mining output contracted, the government said.
Gross domestic product in April-June quarter grew 4.6% from the same quarter a year ago. Growth in the first quarter was revised to 4.7% from an earlier 5.2%. GDP growth in the second quarter of 2007 was a much stronger 8.3%.
The "uninspiring growth" in the country's economy was driven the the relatively strong performance of manufacturing, agriculture and construction, the National Statistics and Coordinating Board said in a statement.
But overall economic growth _ the slowest since 4.4% in the first quarter of 2005 _ was clipped by an 18.5% contraction in the mining and quarrying sector, as well as sluggishness in services, the linchpin of the economy with a 49.2% share of total GDP.
"Achieving the full year target will be a tough challenge as we continue to face high food and oil prices," said Socio-economic Planning Secretary Ralph Rector.
But he said tightness of the global economy is somewhat easing and inflation is also expected to taper in the latter months of 2008. Recto said to achieve the growth target of 5.5%, the economy has to grow by 6.4% in the second half of the year.
Services rose 4.3% for the second quarter from 8.4% for the same period last year. That was its lowest rise since the third quarter of 2001.
Agriculture accelerated by 4.9% in the quarter compared to 4.2% last year. Exports rose 7.7% from 4.9% last year.
Strong remittances from overseas workers boosted income from abroad, which went up by 14.1%_ still slower than its 25.3% rise last year, the NSCB said.
Consumer spending growth slackened to 3.4% from 5.6% a year ago due to high prices, while government spending shrank 5.1% from a 11.9% gain last year.
Showing posts with label Business. Show all posts
Showing posts with label Business. Show all posts
Friday, August 29, 2008
Monday, November 12, 2007
Banco De Oro Profits Rise To P4.9B
MANILA, Philippines (Mindanao Examiner / Nov. 12, 2007) - Banco de Oro (BDO) posted a 4% year-on-year gain in consolidated net profits to P4.9 billion in 9M07 from the P4.7 billion pro-forma income registered in 9M06.
The growth in Net Interest Income and Non-Interest Income buttressed the bottom line despite challenging operating conditions and ongoing integration efforts.
Net Interest Income grew 17% to P16.4 billion with net interest margin widening to 4.15% from 3.97%. This was a result of continued strong loan growth and improvements in the funding mix, BDO said in a statement sent to the Mindanao Examiner on Monday.
The Bank rebalanced its earning assets by capitalizing on robust demand for higher-margin consumer loans even as overall industry-wide loan growth remained weak. Net Loans and Other Receivables increased 6% year-on-year to P295.4 billion while underlying loan growth remained robust at 15%.
As a result, Investment Securities contracted 17% to P168 billion.
The Bank likewise improved its funding mix by focusing on low-cost deposits while reducing its reliance on high-cost funding sources. Thus, Total Deposits remained flat at P438.7 billion while Bills Payable declined 14% to P69.1 billion.
Non-Interest Income rose 14% to P12.3 billion as higher fee-based and other income compensated for lower trading and foreign exchange gains. Service Charges and Fees climbed 26% to P6.3 billion given larger contributions from branch banking, remittances, credit cards, cash management and bancassurance.
Miscellaneous Income jumped 127% to P1.8b stemming from investment banking activities and various income sources. Trading and foreign exchange gains dipped 10% to P3.7 billion amid rising emerging market risk premium and a stronger Peso.
Operating expenses expanded 17% to P19.2 billion due to increased business volumes, redeployment of the ex-UOBP branches and ongoing integration efforts. Pre-Provision Profits settled at P9.5 billion, up 13% year-on-year. In line with the Bank's conservative provisioning policy, Allowance for Impairment was higher by 81% at P3.6 billion.
BDO is presently the country's second largest banking group with Assets of P608.1 billion and Capital Funds of P58.8 billion. The Bank is among the market leaders in its core business lines, and has an extensive network of over 680 branches and more than 1,200 ATMs nationwide.
The growth in Net Interest Income and Non-Interest Income buttressed the bottom line despite challenging operating conditions and ongoing integration efforts.
Net Interest Income grew 17% to P16.4 billion with net interest margin widening to 4.15% from 3.97%. This was a result of continued strong loan growth and improvements in the funding mix, BDO said in a statement sent to the Mindanao Examiner on Monday.
The Bank rebalanced its earning assets by capitalizing on robust demand for higher-margin consumer loans even as overall industry-wide loan growth remained weak. Net Loans and Other Receivables increased 6% year-on-year to P295.4 billion while underlying loan growth remained robust at 15%.
As a result, Investment Securities contracted 17% to P168 billion.
The Bank likewise improved its funding mix by focusing on low-cost deposits while reducing its reliance on high-cost funding sources. Thus, Total Deposits remained flat at P438.7 billion while Bills Payable declined 14% to P69.1 billion.
Non-Interest Income rose 14% to P12.3 billion as higher fee-based and other income compensated for lower trading and foreign exchange gains. Service Charges and Fees climbed 26% to P6.3 billion given larger contributions from branch banking, remittances, credit cards, cash management and bancassurance.
Miscellaneous Income jumped 127% to P1.8b stemming from investment banking activities and various income sources. Trading and foreign exchange gains dipped 10% to P3.7 billion amid rising emerging market risk premium and a stronger Peso.
Operating expenses expanded 17% to P19.2 billion due to increased business volumes, redeployment of the ex-UOBP branches and ongoing integration efforts. Pre-Provision Profits settled at P9.5 billion, up 13% year-on-year. In line with the Bank's conservative provisioning policy, Allowance for Impairment was higher by 81% at P3.6 billion.
BDO is presently the country's second largest banking group with Assets of P608.1 billion and Capital Funds of P58.8 billion. The Bank is among the market leaders in its core business lines, and has an extensive network of over 680 branches and more than 1,200 ATMs nationwide.
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