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Hanjin creditors risk earnings hit if loans not provisioned: analyst

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ABS-CBN News

<figure class="op-interactive"><div id="IVS_ABS_Body_Video_1_Container"> <ivs-player id="IVS_ABS_Body_Video_1" data-ivs-spid="3001339" data-ivs-key="e8c22c015ca9eafa76f1e3edfa03c603" data-ivs-vid="1394672" data-ivs-floating="1"></ivs-player> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/iframe-parent.js"></script> <script src="https://player.ivideosmart.com/ivsplayer/v4/dist/js/loader.js"></script> </div></figure><div class="iwantbar">Watch more in <a href="//www.iwantv.com.ph/">iWantv</a> or <a href="//tfc.tv/">TFC.tv</a></div><p>MANILA -- Hanjin&#x27;s creditor banks in the Philippines risk a hit in their earnings this year if they failed to provision for a possible default by the Korean shipbuilder.</p><p>Reeling from a global slowdown in shipping, Hanjin&#x27;s Philippine unit sought <a href="https://news.abs-cbn.com/business/01/11/19/philippine-banks-seek-to-collect-millions-from-downturn-hit-hanjin">court-assisted rehabilitation </a>to pay 5 banks some $412 million.</p><p>Rizal Commercial Banking Corp has the &quot;biggest exposure&quot; to Subic Bay-based Hanjin and could report a loss &quot;at worst&quot; if the entire debt is unpaid, said China Bank Securities research director Garie Ouano.</p><p>The Yuchengco-owned lender earlier said its loans to Hanjin were &quot;very manageable.&quot; BDO Unibank and Bank of the Philippine Islands also confirmed lending to Hanjin.</p><p>Two others identified in a Philippine Daily Inquirer report as among Hanjin&#x27;s creditors have not issued statements -- Metrobank and state-run LandBank of the Philippines.</p><p>&quot;If it does affect earnings, it&#x27;s likely gonna be seen as a one-off,&quot; Ouano told ANC&#x27;s Market Edge.</p><p>&quot;Fundamentally, the banks are still strong. There&#x27;s no clear evidence that the bankruptcy of Hanjin is a systemic problem so there&#x27;s really no reason to be bearish on the sector for the long term,&quot; he said.</p><p>The financials sector on Friday closed 2.54 percent lower compared to a 1.02-percent decline in the main index.</p><p>RCBC was down 9.12 percent, BPI fell 4.76 percent while Metrobank shed 4.82 percent. BDO closed unchanged.</p>

<p>Reeling from a global slowdown in shipping, Hanjin's Philippine unit sought court-assisted rehabilitation to pay 5 banks some $412 million.</p>

Reeling from a global slowdown in shipping, Hanjin's Philippine unit sought court-assisted rehabilitation to pay 5 banks some $412 million.