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SEVERAL
banks yesterday confirmed they have no direct exposure
to Lehman Brothers Holdings Inc., a major US investment
firm that officially filed for bankruptcy on Monday.
Philippine Savings Bank president Pascual Garcia III
said the thrift bank has no direct exposure to Lehman
Brothers.
In a
phone interview, he said that while parent company
Metropolitan Bank and Trust Co, has direct exposure to
the bankrupt US institution, PS Bank is not affected
since Metrobank’s exposure is small compared to other
banks.
“If you
look at the exposure, it’s very small compared to other
banks. It’s very absorbable,” he said.
On
Monday, Metrobank disclosed that it has direct exposure
to Lehman Brothers bonds in the amount of $20.2 million.
The bank also said that it has a P2.4-billion loan
exposure to a Lehman subsidiary based in the
Philippines.
Metrobank said it has set aside provisions equivalent to
$14 million using current-market prices.
The
collapse of the US firm will have no impact on
Metrobank’s income targets this year, the Philippine
lender said.
Union
Bank, the Abotiz Group’s banking arm, also said it has
no exposure to Lehman nor to Merrill Lynch, another
ailing US investment house bailed out by Bank of America
in a $50-billion purchase deal.
“While
the domestic economy has proven to be relatively less
vulnerable to the US financial turmoil, UnionBank’s
unyielding attention to good governance and risk
management has clearly enabled it to decisively repel
downswings in the financial system,” the UnionBank said
in a statement.
“The
bank’s robust risk management framework has been highly
instrumental in balancing its strategic thrusts of solid
core business and strong customer franchise, and asset
quality preservation,” it added.
First
vice president Alexander C. Escucha of China Banking
Corp. likewise confirmed that the bank has no direct
exposure to Lehman and Merrill Lynch.
However,
Security Bank chief financial officer Carlos Borromeo
said the bank has no “direct or indirect exposure” to
Lehman, although it has a $10-million exposure to
Merrill Lynch.
Vice
president Gertie Sinio of Bank of the Philippine Islands
said the bank has no direct exposure to Lehman not to
“any major US investment bank.”
SSS:
investments local
Meanwhile, state-run pension fund Social Security System
(SSS) also yesterday said all its investment is in the
local market and that these have been profitable.
“All SSS
investments are in the local market, which has been
profitable, and it expects to earn a record P26-billion
income from investments this year,” spokesman Joel
Palacios said in a statement.
Although
the pension fund for private sector employees “is
allowed to invest abroad, it has not done so because of
the unfavorable investment climate,” Palacios added.
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