BPI earnings slide 1.5%
The Bank of the Philippine Islands, the country’s second largest bank, consolidated net income fell 1.5% to P5.17 billion in 2002 compared to a 72.1% rise to P5.25 billion in 2001. Lower growth rates were attributed to lower interest income and weak corporate appetite for loans.

BPI’s two insurance units, on the other hand, raked in higher net profits. Ayala Life Assurance’s net income rose 72% to P176 million while Universal Reinsurance Corporation’s net earnings increased 40% to P70 million. BPI/MS Insurance Corp., conversely, posted a 12% decline in net profit to P126 million. Ayala Plans, a pre-need unit, reported a net loss of P285 million after setting aside P575 million to build up actuarial reserves.

At end-2002, the bank’s nonperforming loan ratio stood below the industry average at 9.6%. BPI plans to bid out P5 billion worth of foreclosed properties in Metro Manila and in Metro Cebu this year. The bank has P15 billion in total bad assets. In 2002, the company owned by Ayala Corporation and Singapore’s DBS Bank disposed of P1.4 billion of its nonperforming assets.

For 2003, BPI expects growth to be led by consumer loans on automobiles, housing, and credit cards, as the corporate segment has faced uncertainties from the conflict in Iraq and the outbreak of SARS.

Jollibee profits up 21.2%
Jollibee Foods Corporation posted P20.3 billion in consolidated sales in 2002, up 8.3% from the prior year’s level. Top line growth was driven by improved performance in the group’s existing base of stores, new store additions, as well as products. Flagship business Jollibee sustained dominance in the competitive burger/chicken Quick Service Restaurant segment. Chowking, a leader in its own segment of the industry, now also contributes substantially to the overall profitability of the group.

Greenwich has likewise seen huge improvement in margins and profitability.
On the back of the brisk sales coupled with improved productivity at all levels, Jollibee Foods’ bottomline profits was likewise up 21.2% to P 1.05 billion. Manageable levels of operating and interest expenses and disposal of non-performing businesses and assets also contributed to overall profitability.

The group celebrates its 25 years of operation this year with over 900 stores. A total of 871 restaurants in the Philippines (436 Jollibee, 191 Greenwhich, 216 Chowking, and 28 Delifrance) and 31 restaurants overseas.

San Miguel income hits 6.6 billion
Acquisitions, restructuring and synergies in sales, marketing and distribution capabilities in 2002 enabled the San Miguel Corporation to protect and strengthen its market positions across majority of its businesses. This brought about 19% corporate volume growth in the year, with consolidated revenues improving over 2001 levels by 12% to P136 billion. San Miguel’s beverage business grew by 15%, while its food group expanded 18% and its packaging business by 13%.
The year 2002 was also a year of consolidation, rationalization and integration of San Miguel’s various businesses and operations. These activities resulted in one-time restructuring costs of about P837 million, comprised mainly by retirement and benefit costs. Streamlining activities, combined with efforts to restructure the organization and operations to maximize group-wide efficiency resulted in an 18% increase to P12.4 billion in operating income, with net income after restructuring at P6.63 billion.

On top of the reported P28-billion refund it has to give back to its customers, the Manila Electric Company (Meralco) reported a net loss of P2 billion (US$38 million) for 2002 — a huge contrast to the P1.4 billion net profit it gained in 2001. Also, its outstanding debt at the end of 2002 reached P70.22 billion.

Meralco failed to get approval to hike its rates last year, and was unable to fully recover deferred charges amounting to P9.2 billion.

The Supreme Court denied the utility company’s plea for review of the refund order handed down on 15 November 2002, saying it was no longer entertaining further pleadings after Meralco lodged a second appeal to reverse the refund ruling.

Between the mandated order to pay back its customers and meet its debt obligation (P10 billion falls due this year), Meralco may find itself in an even tighter spot in the coming months ahead.