The peso rate closed higher at P54.68 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P54.91 the previous day. The weighted average rate appreciated to P54.772 from P54.914. Total volume amounted to $503.5 million.

BSP sees

The Bangko Sentral ng Pilipinas (BSP) said yesterday it sees no need to alter its interest rate policy despite higher-thanexpected inflation in the year through January, which resulted mainly from higher oil prices. "Overall, there really is no clear indication that there should be a change in the monetary policy stance," Amando Tetangco, Deputy BSP Governor, told Reuters after the release of the latest inflation data. Inflation in the year through January was 8.4 percent, down from 8.6 percent in the year through December. The January level was higher than the central banks forecast of 7.8 to 7.9 percent and the government estimate of about 8 percent.

EPCIB reprices bond issue

HONG KONG, Feb. 4 (Reuters) Equitable PCI Bank, the countrys third-largest private bank, has revised the yield on a $100 million, three-year bond to 6.75 percent, a market source said on Friday. The deal, which is rated B by Standard & Poors, is expected to be launched and priced later on Friday, the source said. Previously, investors had been told the yield on the deal was set at 7.25 to 7.50 percent, but the Philippine lender said on Thursday that it had not set the price guidance. "The bank has not yet set any price guidance for its bond issuance. The bond price shall be fixed only upon completion of the bookbuilding process, which is currently ongoing," it said in A statement on the Philippine stock exchanges Web site. HSBC and JPMorgan are the lead managers for the deal. Equitable PCI said it would use the proceeds to diversify operations. The lender last raised $300 million via a 10-year lower tier II subordinated bond in May 2003.

APC Group plans mining unit

APC Group Inc. said its board of directors has approved the incorporation of a mining subsidiary to be called "APC Mining Corp." It said the unit shall primarily engage in the mining of zinc, lead, gold, silver, copper, brass, iron, coal, and all kinds of ores, metals and minerals.

Chinabank earns P2.7 B

China Banking Corp (Chinabank) reported a net profit of P2.71 billion in 2004, slightly higher than its earnings of P2.62 billion in 2003, on the back of improved interest and feebased revenues. The medium-sized bank, majority-owned by businessman Henry Sy, posted a return on equity ratio of 14.22 percent and a return on assets of 2.44 percent which, it said, are among the highest in the industry. "This is due to improved interest margins, turnaround in loan bookings, higher fee-based revenues and sustained contribution from the trust and treasury-related business," Chinabank said in a statement. The bank reported that its nonperforming loan ratio fell to 11.4 percent of total loans from 14.69 percent in 2003. Following an additional loss provisioning of P785 million in 2004, the bank said its loan loss coverage ratio improved to 87.8 percent which, it said, is the highest among local banks. Its total loan loss reserves stood at P6.75 billion as of end2004. Chinabanks total resources reached P117.24 billion at end-2004 from P104.45 billion in 2003. Total loans rose P10.17 billion to P51.44 billion, reversing the downward trend in recent years, while total deposits reached P85.85 billion.

Air Phils. to lease 4 aircraft

Air Philippines Corp. plans to lease four more Boeing 737-200s starting this year, an airline official said. The aircraft will follow the arrival of the sixth, and last, of the 118seater Boeing 737-200s it ordered for lease under the first phase of its expansion program. "We are now on the second phase of the re-fleeting program with a firm order of two more aircraft of the same type. There is a (further) plan to acquire two more," a company official, who requested anonymity, said. Air Philippines is the countrys third largest carrier, owned by businessman Lucio Tan and is also an affiliate of flag carrier Philippine Airlines (PAL). Last October, Air Philippines became an official Philippine carrier to the United States, Japan, China and Singapore. But the airlines said it is not too keen on using its designation to the US and Singapore, and added it is poised to petition the government to allow it to fly to South Korea and Malaysia. Air Philippines said it is focusing its attention on Japan and other Asian destinations, particularly Malaysia.