🛎️ The Opening Bell | August 1, 2023
🇺🇸 US stocks finished off July on a high note
July Performance:
S&P500 +3.11%
Dow Jones Industrial Ave (DJIA) +3.35%
Nasdaq +4.05%
🇵🇭 The PSEi also gained in July but profit taking was seen yesterday
PSEi gained 1.91% in July
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Focus Reports
💵 BDO posted P35.2-Bn of net income in 1H23 (+47% YoY), in line with expectations. BDO is trading at 1.58x Price-to-book and is just fairly valued. We think a consolidation may be seen after the strong run-up in July which anticipated the good results.
Loans grew 8% YoY and 5% QoQ to P2.7 trn
Deposits grew 12% YoY
NPL ratio improved to 1.95% vs 1.98% last quarter
⚡️ Meralco (MER) reported a P19.2-Bn core net income (+47% YoY) in 1H23, surpassing consensus estimates.
Its revenues hit P224.8-Bn (+13% YoY) mainly due to the 3% volume growth of its Distribution Utility (DU) business and higher contribution from its Power Generation business. MER’s energy sales also reached an all-time high of 24,792 GWh (+3.4% YoY) boosted by the continued increase in Residential (+1% YoY) and Commercial (+10% YoY) volumes.
💵 UnionBank (UBP) generated P34.4-Bn of revenues (+60% YoY) in 1H23 from which it earned P6.4-Bn of net income (+6% YoY) The bank’s net interest income climbed to P24.0-Bn (+41% YoY) largely attributable to the 43% uptick in its loan portfolio. Fees and other income more than doubled to P10.5-Bn due to card-related transactions, digital transactions and the growing base of its key subsidiaries.
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🗞️ Other News:
• Upson to open its first TP-Link concept store (PSE Edge)
• Axelum launches coconut milk powder (BusinessWorld)
abcapitalsecurities.com.ph/
