By Lourdes O. Pilar, Researcher LISTED BANKS rose in the third quarter propelled by higher loan growth thanks to cheaper borrowing costs that boosted net interest income. The Philippine Stock Exchange index (PSEi) gained 13.4% on a quarter-on-quarter basis in the third quarter of 2024, a reversal from the 7.1% drop in the second quarter. Year on year, PSEi climbed by 15.1%. Meanwhile, the financials subindex, which included the banks, inched up by 19.4% quarter on quarter at the end of the July-September period, a turnaround from the 5.4% decline recorded in the second quarter. The subindex, however, rose by 23.4% annually. Out of 15 banks covered in the third quarter of this year, 13 banks’ stock performance rose. Quarter-on-quarter top performers were Security Bank Corp. (SECB, 52.5%), Bank of Commerce (31%), China Banking Corp. (27.5%), Philippine National Bank (27.3%), and BDO Unibank, Inc. (BDO, 23.2%). Philippine Trust Co. and Philippine Business Bank performed poorly as their stock prices in the third quarter declined by 3.2% and 5.6%, respectively. Aggregate net income of universal and commercial banks went up by 51.9% to P271.73 billion as of end-September from P178.91 billion last year, data from the Bangko Sentral ng Pilipinas (BSP) showed. Gross total loan portfolio of these big lenders rose by 14% to P13.81 trillion as of end-September from P12.11 trillion a year ago. The big banks’ gross nonperforming loans (NPLs) ratio, however, edged up to 3.18% in September from 3.09% in September the previous year. The big banks’ net interest margin (NIM) — a ratio that measures banks’ efficiency in investing their funds by dividing annualized net interest income to average earning asset — grew to 4.06% in the third quarter from 3.83% recorded in the same period in 2023. “Most of the banks under our coverage posted double-digit growth in the bottom line, attributable to high net interest margins and lower provisions for losses amid benign asset quality,” Wendy B. Estacio-Cruz, Unicapital Securities head of Research, said in an email. Ms. Estacio-Cruz said that Union Bank of the Philippines and Bank of the Philippines (BPI) posted high net income growth in third quarter alone with 77% and 28% year-on-year growth, respectively. UBP’s bottom line was driven by high top line growth and managed operating expenses and for BPI, high trading income contributed to the growth. BDO Securities Corp. First Vice-President and Head of Research Abigail L. Chiw said that most banks reported stronger loan growth, stable lending margins, and improving asset quality, which contributed to record high incomes. “The big banks continue to do well, as they registered above-average industry loan growth given their extensive branch network and expanding digital presence, strong asset quality with low NPL ratios and solid profitability with robust double-digit return on return on equities (RoEs),” said Ms. Chiw. “During the third quarter, majority of banks booked trading gains which helped push noninterest income higher. This was the result of lower interest rates in the period. On the other hand, majority of banks continue to enjoy high net interest income margin as majority continue to grow consumer loan book which is high yielding in terms of assets,” said Kervin Laurence Sisayan, Maybank Securities Philippines, Inc. head of Research. Mr. Sisayan also said that SECB stood out given the very strong loan growth year on year. Meanwhile, BDO and Metropolitan Bank & Trust Co. (MBT) continued to show high NPL coverage and stable NPL ratio, implying sustained asset quality. RCBC Securities, Inc. said that the main factor for the performance of listed banks during the third quarter was the double-digit loan growth under the consumer segment, as business confidence improved along with the BSP’s rate cut. “BDO and MBT stood out because both managed to improve their asset quality while increasing topline and beating industry loan growth. Their ability to make it happen provides them a shield from inflationary risks or flexibility to deal with slower interest rate cuts,” RCBC Securities said. BANK STOCK PICKS In choosing bank stocks, analysts said that traders and investors should continue to monitor market conditions that may affect loan demand and asset quality of banks. “Uncertainties with regard to the potential impact of protectionist policies from US president-elect Donald J. Trump may temporarily weigh on credit appetite and temper loan growth for banks,” said Ms. Chiw. Ms. Chiw also added that the risks of reaccelerating inflation and interest rates remaining high and restrictive could also have knock-on effects to the ability of borrowers to repay their debts. “Traders should watch potential rate changes, loan demand stability, and credit quality trends. Digital transformation will also be pivotal in enhancing banks’ competitiveness and profitability,” said Arielle Anne D. Santos, an equity analyst at Regina Capital Development Corp. Investors should keep an eye on the movement on NIMs given that they saw more policy rate cuts, Maybank’s Mr. Sisayan said. “Eventually when we see a more pronounced decline in interest rates as inflation continues to ease, then we could also start looking more closely at an acceleration on loan growth,” Mr. Sisayan said. Ms. Estacio-Cruz said that they are cautiously optimistic about the banking sector and believe that operating income is likely to peak in mid-2024. “We anticipate a 20-bps decline in NIMs for the banks within our coverage, given the ease of interest rates. However, we expect that strong asset quality and improved loan growth will help to partially offset the effects of these rate cuts next year, thereby supporting the sector’s RoE,” Ms. Estacio-Cruz added. “Year-to-date, the financials index remains the most outperforming index and rose 28% compared to the PSEi’s gain of 3%. Nevertheless, we advise a selective approach, particularly considering banks with substantial discounts,” said Ms. Estacio-Cruz. RATE CUTS This year, the BSP has delivered a total of 50 basis points (bps) worth of rate cuts in increments of 25-bp reductions at its August and October meetings. BSP has signaled a possible interest rate cut in December, following the slower-than-expected economic growth in the third quarter and the within-target inflation print in October. Further rate cuts could be expected in 2025, BSP said. “Rate cuts are expected to compress banks’ net interest margins, which may weigh on short-term profitability. However, they could also stimulate loan demand, potentially benefiting banks with diversified loan portfolios like BDO and BPI,” said Ms. Santos. She added that lower rates might support asset quality by easing debt burdens, a factor investor may view positively. “Overall, rate cuts could have a mixed impact on bank stocks, balancing margin pressure with potential gains from loan growth and improved asset quality,” said Ms. Santos. For BDO Securities, the negative impact of rate cuts to margins can be offset by the positive impact of the reserve requirement ratio (RRR) reductions, such that banks are largely expecting NIMs to remain stable. “Lower interest rates or borrowing costs are also seen to potentially lift consumer and business sentiment, which in turn, could translate to better investment spending and faster loan growth, which are positive for bank earnings,” Ms. Chiw said. “We believe that there is room to cut another 25 bps in the last month of the year. So, for the 25-bps cut, this could lead to lower interest rates and lower asset yields,” Mr. Sisayan said. Meanwhile, Ms. Estacio-Cruz expects net interest margins stable for this year as banks manage to lower cost of funds while keeping asset yields steady.Thanks to Chapter 6 leaks about the Giant Turtle POI, Fortnite players have found their new favorite Klombo-like pet. Fortnite Chapter 6 won’t begin until December, but several prematurely released details have already outed what Epic Games has in store. For instance, promotional art leaks showcase the six new Points of Interest coming to the battle royale. One encompasses a forest filled with purple trees, while another plays host to a temple battleground. But players have especially expressed an interest in the POI featuring a giant turtle, which additional leaks (via Loolo_WRLD ) claim may dynamically move around the map. Fortnite’s Giant Turtle POI is already a fan-favorite locale The leaked image depicts Chapter 6’s massive turtle as a forest POI with trees growing from out the top of its shell. Such art and map leaks have already resulted in fans dubbing the next chapter an instant W. And it didn’t take long for Fortnite players to start fawning over the majestic creature that many of them now want to name. The most popular name in a Reddit thread dedicated to this very topic thinks the turtle should simply be called Henry. Henry isn’t the only name attracting attention, though. Another person in the thread suggested the Fortnite community go with “Klombo 2.0” for the Giant Turtle POI, a fitting suggestion since the dinosaur-like creature was beloved throughout Chapter 3. Klombo originally joined the world of Fortnite in Chapter 3 Season 1 as a type of wildlife that spawned at various locations around the map. Epic vaulted the creature in Chapter 4, but it has since returned in LEGO Fortnite’s Lost Isles update . Related: It’s unclear if players will ever encounter a Klombo in the battle royale again, but it looks like they’ll soon have a new giant creature to obsess over. The wait to meet “Henry” won’t last too much longer either, with Chapter 6 Season 1 officially kicking off on Sunday, December 1.
West Virginia knocks off No. 4 Gonzaga in overtimeDENTON — Lockerman Middle School’s new science, technology, engineering and mathematics center was celebrated on Tuesday for providing students with unique opportunities and STEM-related resources. The STEM Center held a ribbon-cutting Tuesday afternoon with partners from the University of Maryland Medical System. A $500,000 grant was given to the Cal Ripken, Sr. Foundation, which is funding STEM centers at 10 different schools in Maryland, including Lockerman. Caroline County Public Schools Superintendent Derek Simmons said the foundation’s contribution is bringing unique experiences to Lockerman students. “There’s no way that this level of resource and these tools would be able to get in the hands of our middle school kids if it wasn’t for your partnership and Ripken Foundation’s work,” Simmons said. On Tuesday, students showed off the new tools and gadgets that were funded by the grant, such as a 3D printer, coding robots and electronic kits. In the school cafeteria, two students flew drones. Sixth grader Gracie Spiering showed off her knowledge of how to make backpack security alarms or model cars using littleBits Electronic kits. She knew how to order the kit’s pieces and wires, and learned how the coding worked. “It’s been so much fun to have in class,” Spiering said. “Everybody’s been so ready to come into that class.” Meanwhile, many students have been utilizing the 3D printers to make ornaments for the holidays. Seventh grader Madison Watson said it’s been a smooth learning process thanks to the help of her teachers. “It’s pretty fun to have them just at any time we really want them to be here,” Watson said. Lockerman Middle School Principal Jeannine Necessary said students love learning how to use the new materials. Staff members were trained and encouraged to integrate the STEM tools into everyday learning, the principal said. During the ribbon-cutting, University of Maryland Shore Regional Health President and CEO Ken Kozel said the healthcare system appreciates students involved in STEM because the students are “highly motivated and educated.” “We’re here to promote STEM because it’s such an important part of the healthcare system,” Kozel said. “We’re local, we’re small, we’re a community hospital system, but we need our community to help support our workforce needs.” With a handful of students excited to show off the new technology on Tuesday, Simmons reflected on how much the grant means to the Denton middle school, given the district’s financial challenges. “About 60 to 65 percent of our students qualify for free and reduced meals, which puts a little bit different lens on the opportunities that our kids have to access things,” Simmons said. “It also puts a lens on the opportunity the school system has funding-wise to be able to provide those avenues. “We are thrilled that we were selected by you guys, in partnership with the Ripken Foundation, to be able to provide opportunity and access that we could’ve never funded for our students.”
STATEN ISLAND, N.Y. (AP) — Zaire Williams scored 24 points and made five 3-pointers, Zavier Fitch added 21 points and Wagner beat Penn State-Scranton 120-30 on Monday. Williams added five rebounds, seven assists, and four steals for the Seahawks (8-5). Fitch had six rebounds, four assists and five steals. Di'Andre Howell-South shot 7 of 10 from the field, including 2 for 4 from 3-point range, and went 4 for 5 from the line to finish with 20 points. Jaiden Wiggins scored 16 points for Penn State-Scranton, which turned it over 29 times. The Associated Press created this story using technology provided by Data Skrive and data from Sportradar .SMU has plenty to play for when it closes the regular season against California on Saturday afternoon in Dallas. The Mustangs (10-1, 7-0 Atlantic Coast Conference), who checked in at No. 9 in the latest College Football Playoff rankings on Tuesday, would like to send their seniors off the right way. They would also like to complete a perfect regular season before appearing in the ACC title game in their first year in the conference. Most importantly, they want to continue to strengthen their playoff case. "You've got the College Football Playoff, so every game matters. That's what's so cool about it now. The regular season is important," SMU coach Rhett Lashlee said. "We'd like to finish well in everything we do, particularly on Saturday, to finish off the regular season, continue our momentum into the following week. Hopefully, continue to show the committee and others that we're worthy of continuing to play this year." The Mustangs are a worthy playoff team to date. Kevin Jennings has established himself as one of the top quarterbacks in the country, throwing for 2,521 yards with 17 touchdowns and seven interceptions. He also has rushed for 315 yards and four TDs. Brashard Smith has been another standout, rushing for 1,089 yards and 13 TDs. Defensively, the Mustangs rank tied for 14th in the country with 20 takeaways. "Obviously they've had a phenomenal season," Cal coach Justin Wilcox said of SMU. "As soon as you turn the tape on, it doesn't take very long to see why their record is what it is. They're very, very good really in every phase of the game - extremely explosive and quick and fast. They've got a dominant D-line. We've got a lot of challenges in front of us and our guys are excited for that." Cal (6-5, 2-5) is coming off an emotional win, defeating rival Stanford 24-21 on Saturday to secure a bowl berth. The Golden Bears will appear in consecutive bowls for the first time since 2018-19 and are now looking to clinch their first winning season since 2019. SMU is not overlooking Cal, as all five of the Golden Bears' losses have come by one score. "You'd be hard-pressed to find a better 6-5 team in America," Lashlee said. "I think you can conservatively say they very, very easily could be 9-2." Cal is led by quarterback Fernando Mendoza, who has thrown for 3,004 yards with 16 touchdowns and six interceptions. Tight end Jack Endries leads the team with 555 yards receiving, while wide receiver Nyziah Hunter has caught a team-leading five touchdowns. Defensively, Cal has the ACC's top scoring defense (20.7 points per game) and is tied with Clemson for the ACC's best turnover margin (plus-13). Defensive back Nohl Williams is the star of the group -- he leads the country with seven interceptions. Even though oddsmakers are heavily favoring SMU, Cal is going into the game with a simple mindset. "Our task at hand is to make the best bowl game right now," Mendoza said. "And the way to do that is to go into Dallas, give it our best and ruin SMU's season." Saturday will mark the first conference meeting between these ACC newcomers, and just the second meeting between the programs all time. SMU won a 13-6 game back in 1957. --Field Level MediaBy JILL COLVIN NEW YORK (AP) — President-elect Donald Trump wants to turn the lights out on daylight saving time. In a post on his social media site Friday, Trump said his party would try to end the practice when he returns to office. “The Republican Party will use its best efforts to eliminate Daylight Saving Time, which has a small but strong constituency, but shouldn’t! Daylight Saving Time is inconvenient, and very costly to our Nation,” he wrote. Setting clocks forward one hour in the spring and back an hour in the fall is intended to maximize daylight during summer months, but has long been subject to scrutiny. Daylight saving time was first adopted as a wartime measure in 1942. Lawmakers have occasionally proposed getting rid of the time change altogether. The most prominent recent attempt, a now-stalled bipartisan bill named the Sunshine Protection Act , had proposed making daylight saving time permanent. The measure was sponsored by Florida Sen. Marco Rubio , whom Trump has tapped to helm the State Department. Related Articles National Politics | Ruling by a conservative Supreme Court could help blue states resist Trump policies National Politics | A nonprofit leader, a social worker: Here are the stories of the people on Biden’s clemency list National Politics | Nancy Pelosi hospitalized after she ‘sustained an injury’ on official trip to Luxembourg National Politics | Veteran Daniel Penny, acquitted in NYC subway chokehold, will join Trump’s suite at football game National Politics | About 3 in 10 are highly confident in Trump on Cabinet, spending or military oversight: AP-NORC poll “Changing the clock twice a year is outdated and unnecessary,” Republican Sen. Rick Scott of Florida said as the Senate voted in favor of the measure. Health experts have said that lawmakers have it backward and that standard time should be made permanent. Some health groups , including the American Medical Association and American Academy of Sleep Medicine, have said that it’s time to do away with time switches and that sticking with standard time aligns better with the sun — and human biology. Most countries do not observe daylight saving time. For those that do, the date that clocks are changed varies, creating a complicated tapestry of changing time differences. Arizona and Hawaii don’t change their clocks at all.