Quick Take: BPI teases growth and 2 more market updates
BPI [BPI 93.40 1.52%] [link] teased 9M net income growth of 74% to P30.5 billion, with revenues up 22% y/y and provisions for non-performing loans down 27%. BPI noted that if one-off income from the sale of property were excluded, and the tax benefits of the CREATE Law were removed, that net income would have been P.8 billion, a 53% increase y/y.
MB Quick Take: While I never cheer for banks, it’s nice to see that we are not knee-deep in a tsunami of bad loans, as that would be a terrible sign for the economy. I still think there’s a story out there that ties together the first-time home buyers that have been walking away from pre-sales with the potential 2023 impacts of rising interest rates on home buyers and business owners, but from this perspective I don’t see those problems showing up in BPI’s financials. Yet. But banks are not something that I look at too closely or deeply, so perhaps someone in the field could write in and let me know what they’re seeing on the ground!
Shakey’s [PIZZA 7.50] [link] opened its 60th Peri-Peri Charcoal Chicken location. PIZZA referred to this as a “milestone”, PIZZA notes that the Peri-Peri brand is the second largest in its portfolio. Since it was acquired in 2019 with 29 stores, PIZZA has now added 31 stores and is “ramping up store expansion”, leveraging its connections with the Gokongwei Group.
MB Quick Take: PIZZA’s growth has set it up for a strong Q4 result, which is traditionally the high season for quick service restaurants. As PIZZA notes, schools are scheduled to return to face-to-face instruction around that time as well, and that additional foot traffic should provide a material bump to PIZZA’s end-of-year numbers. The same can be said for Jollibee [JFC 230.40 1.96%], Fruitas [FRUIT 1.00 1.96%], and McDonald’s [AGI 8.78 2.93%].
UnionBank [UBP 78.00 0.65%] [link] disclosed that its Chief Risk Officer, Ronaldo Peralta, passed away. Mr. Peralta had been UBP’s CRO since 2014. UBP did not indicate if a successor has been identified.
MB Quick Take: I don’t have specific insight into how UBP used its CRO, but usually this position touches many aspects of a company, and sometimes in a rather deep and meaningful way. The role’s mandate is to mitigate operational, compliance, regulatory and strategic risks, and for a digital-facing bank like UBP, this is especially important. I’m curious to see the credentials and profile of the person that is raised up to fill these big shoes. Condolences to Mr. Peralta's friends and family.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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