BDO Shares Down To P22.50

Despite claims from Philippine banks and companies that the recent collapse of the US investment bank Lehman Brothers has not affected their operations, here comes another casualty and this time it's the country's second largest bank.

With assets of P621.30 billion as of the end of 2007 brought about by its merger with Equitable Bank, BDO-EPCI is second only to Metrobank with assets worth P706.89. Banco de Oro's shares however plummeted by P7 yesterday bringing the bank's share prices down to P22.50.

Banco de Oro incurred a P1.3 billion loss during the third quarter due to its exposure to the Lehman Brothers which forced the bank to make some extraordinary provisions for some of its impaired assets which was originally pegged at P3.8 billion but already reached P4.28 billion. BDO admitted during last September's Senate hearings that its exposure to Lehman amounted to $134 million which was small compared to the bank's assets worth P700 billion.

The bank told a Senate hearing in September it had a $134-million exposure in Lehman Brothers but the amount was small compared to assets of more than P700 billion. However, the investment losses was aggravated by a contraction in BDO's foreign exchange gains, trading and service fees which dropped to P5.84 billion.

However, BDO said its balance sheet continues to remain strong with P743 billion worth of assets. This shows a 13.68% capital adequacy ratio which is way more than the regulatory minimum of 10%.

Davao City Not Profitable For Its IT Grads

The number of students taking up IT-related technology courses in Davao City may have increased over the years but it seems the city is not a profitable place for its very own IT graduates.

This was bared by Ateneo de Davao University Computers Study Division chair Edwin Marañon who said most of the city's IT graduates prefer to work in other cities like Manila and Cebu where salaries are higher.

Marañon said that while the basic salary for new IT graduates in the city starts at P8,000, Cebu and Davao companies offer IT fresh graduates a minimum of P16,000. It is thus not surprising that eight of ten IT graduates from Davao opt to work in Manila and Cebu.

This situation is lamentable and ironic considering that Davao is starting to become a preferred destination for IT investors due to the talented IT graduates it produces year after year. He said the Ateneo alone gets flooded with inquiries from investors who are looking for IT workers even before they graduate from college. This competitive advantage is in danger if the city fails to keep its IT graduates within its folds.

Cool Weather In Davao City This Week

It's time to bring on those colorful umbrellas and raincoats!

The Philippine Atmospheric Geophysical and Astronomical Services Administration (Pagasa) has forecasted a cool but rainy weather for Mindanao throughout the week thanks to the Inter Tropical Convergence Zone which is affecting all of Mindanao as well as portions of the Visayas and Palawan.

Dabawenyos can also expect scattered rain showers and thunderstorms especially during the latter part of the day. The Eastern parts of the island that are prone to flashfloods should however prepare for heavy rains. Southern Mindanao, including Davao City, should prepare for possible rain showers after

DM Consunji Project Faces Opposition From Maa Residents

Another real estate developer eyeing the development of Shrine Hills for a housing project is facing opposition from the Maa Federation of Homeowners.

The DM Consunji people headed by general manager Victoria Joy Adriano presented their project to the City Council last Tuesday pursuant to their application for a preliminary approval and location clearance (PALC). However, the PALC was not issued by the Council pending the clarification of important matters including the development of a proper drainage system.

Councilor Jose Louie Villafuerte said Maa already has an existing drainage problem and is already experiencing floods. He said Maa's flooding problems might become worse if the developer fails to institute a proper drainage plan for their project.

Committee on Housing, Rural and Urban Development Councilor Arnolfo Ricardo Cabling said the PALC is just a permit granted by the City Council to allow the developer to pursue their studies and development plan. However, he added, it is best to allow all parties to present their side on the drainage and other issues to ensure that the developer's efforts in developing the project will not go to waste.

Adriano said the only drainage option so far is the Datu Luho Creek en route to the Davao River. The said River is already up to its capacity since the existing subdivisions in the area are already using it for drainage purposes. She added they have not explored any other water pathway except the Creek.

Davao Bgy. Stirred By Fallen Plane Part

It seemed like a scene from "The God's Must be Crazy" all over again last Thursday morning (October 23)as the residents of barangay Bucana in Matina, Davao City scampered for cover to avoid an object falling from the sky at around 9:00 in the morning.

The fallen object was however not a bottle of Coke like in the movies but rather a metal object which, as confirmed by a press statement later on, was the hydraulic cover of Cebu Pacific flight 5J348.

Residents said they heard a plane prior to seeing the falling object which they described as "bakal na color yellow ug gold" (a yellow and gold-colored metal). They thought a plane had crashed so they ran for cover.

The management of Cebu Pacific said the plane's hydraulic cover accidentally fell off while on flight. However, it dismissed the incident saying the hydraulic cover was just a minor part of the aircraft which does not affect the plane's condition or stability.

Do you have any relative or friend on board Cebu Pacific flight 5J348 last Oct. 28? Then you may have a story to tell.

New Coffee Shop Opens In Davao

Spotted a newly opened coffee shop along Quirino just in front of the Bangko Sentral ng Pilipinas. The coffee shop is adjacent to Honeybear Chicken House.

Davao City's Public Cemeteries In Urgent Need Of Rehab

Davao City's public cemeteries are so overcrowded the city needs to shell out a minimum of P10 million for every hectare of cemetery land that would be rehabilitated.

There are nine public cemeteries in the city but it is still not enough to accommodate the city's requirement. The city is eyeing the development of a 2.3 hectare lot in Tagakpan, Calinan District but the road opening alone cost P275,000 and the cemetery development costs P2 million.

Davao City Economic Enterprise chair Francisco Vales, Jr. said the city's cemeteries are already overloaded and he hopes that next year's annual development plan will already include the proposed budget for the rehabilitation.

The rehabilitation work still does not have a definite date, he said, but the Wireless public cemetery near the downtown area will undergo rehabilitation first. He also said the rehabilitation work should be simultaneous with the construction of the proposed crematorium as the latter would help maximize the cemetery spaces.