Category: Statistics

  • MIL-OSI: Penns Woods Bancorp, Inc. Reports Fourth Quarter 2024 Earnings

    Source: GlobeNewswire (MIL-OSI)

    WILLIAMSPORT, Pa., Jan. 29, 2025 (GLOBE NEWSWIRE) — Penns Woods Bancorp, Inc. (NASDAQ: PWOD)

    Penns Woods Bancorp, Inc. achieved net income of $17.7 million for the twelve months ended December 31, 2024, resulting in basic and diluted earnings per share of $2.35.

    Highlights

    • Net income, as reported under generally accepted accounting principles (GAAP), for the three and twelve months ended December 31, 2024 was $3.7 million and $17.7 million, respectively, compared to $5.6 million and $16.6 million for the same periods of 2023. Results for the three and twelve months ended December 31, 2024 compared to 2023 were impacted by an increase in net interest income of $1.6 million and $3.9 million, respectively, as the cost of funds stabilized. The three and twelve month periods ended December 31, 2024 have been impacted by after-tax merger related expenses of $581,000 resulting from the announced acquisition of the company by Northwest Bancshares, Inc. The disposal of assets related to two former branch properties resulted in a one time after-tax loss of $261,000 for the twelve month period ended December 31, 2024.
    • The allowance for credit losses was impacted for the three and twelve months ended December 31, 2024 by a provision for credit losses of $420,000 and $121,000, respectively, compared to a negative provision for credit losses of $1.7 million and $1.5 million for the 2023 periods. The recognition of a negative provision for credit losses for the 2023 periods was due primarily to a recovery on a commercial loan which positively affected the historical loss rates, and the payoff of a nonperforming commercial loan.
    • Basic and diluted earnings per share for the three months ended December 31, 2024 were $0.50 and $0.49, respectively, while the twelve months ended December 31, 2024 basic and diluted was $2.35. This compares to basic and diluted earnings per share of $0.77 and $2.34, respectively, for the three and twelve month periods ended December 31, 2023.
    • Annualized return on average assets was 0.67% for the three months ended December 31, 2024, compared to 1.02% for the corresponding period of 2023. Return on average assets was 0.80% for the twelve months ended December 31, 2024, compared to 0.79% for the corresponding period of 2023.
    • Annualized return on average equity was 7.28% for the three months ended December 31, 2024, compared to 12.60% for the corresponding period of 2023. Return on average equity was 9.14% for the twelve months ended December 31, 2024, compared to 9.84% for the corresponding period of 2023.

    Net Income

    Net income from core operations (“core earnings”), which is a non-GAAP measure of net income excluding net securities gains or losses, was $4.4 million and $18.4 million, respectively, for the three and twelve months ended December 31, 2024 compared to $5.6 million and $16.7 million for the same periods of 2023. Core earnings per share (non-GAAP) for the three months ended December 31, 2024 were basic $0.58 and diluted $0.57 while basic and diluted for the twelve months ended December 31, 2024 were $2.44. Basic and diluted core earnings per share for the three and twelve month periods of 2023 were $0.77 and $2.36, respectively. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.78% and 8.48%, respectively, for the three months ended December 31, 2024, compared to 1.02% and 12.63% for the corresponding period of 2023. Annualized core return on average assets and core return on average equity (non-GAAP) were 0.83% and 9.46%, respectively, for the twelve months ended December 31, 2024, compared to 0.79% and 9.93% for the corresponding period of 2023. A reconciliation of the non-GAAP financial measures of core earnings, core return on assets, core return on equity, core earnings per share and tangible book value per share to the comparable GAAP financial measures is included at the end of this press release.

    Net Interest Margin

    The net interest margin for the three and twelve months ended December 31, 2024 was 2.98% and 2.83% respectively, compared to 2.73% and 2.80% for the corresponding periods of 2023. The increase in the net interest margin for the three month period was driven by an increase in the rate collected on interest-earning assets of 34 basis points (“bps”), while the decrease in the net interest margin for the twelve month period was driven by a 74 bps increase in the rate paid on interest-bearing liabilities. The overall increase in interest rates over the periods resulted in increases to both the yield on the earnings asset portfolio and the rate paid on interest-bearing liabilities. Driving the increase in the yield and interest income on the earning assets portfolio was the repricing of legacy assets coupled with portfolio growth. The average loan portfolio balance increased $47.4 million and $106.9 million, respectively, for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 as the average yield on the portfolio increased 31 bps and 61 bps, resulting in an increase in taxable equivalent interest income of $2.0 million and $16.5 million, for the periods. The three and twelve month periods ended December 31, 2024 were impacted by an increase of 57 bps and 66 bps in the yield earned on the securities portfolio as legacy securities matured with the funds reinvested at higher rates, which resulted in an increase in taxable equivalent interest income of $285,000 and $1.5 million, respectively. Short-term borrowings decreased leading to a decrease of $1.8 million and $3.9 million, respectively, in expense for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023. The rate paid on interest-bearing deposits increased 37 bps and 96 bps, respectively, or $2.1 million and $13.8 million in expense, for the three and twelve month periods ended December 31, 2024 compared to the corresponding periods of 2023 due to the rate environment, an increase in competition for deposits, and a migration of deposit balances from core deposits to higher rate time deposits. The rates paid on time deposits significantly contributed to the increase in funding costs as rates paid for the three and twelve month periods ended December 31, 2024 compared to the same periods of 2023 increased 29 bps and 87 bps, respectively, or $1.7 million and $9.9 million in expense, as deposit gathering campaigns continued to focus on time deposits with a maturity of five to twenty-four months. In addition, brokered deposits have been utilized to assist with funding the loan portfolio growth and contributed to the increase in time deposit funding costs, while lowering the reliance on higher cost short-term borrowings.

    Assets

    Total assets increased to $2.2 billion at December 31, 2024, an increase of $27.5 million compared to December 31, 2023.  Net loans increased $36.9 million to $1.9 billion at December 31, 2024 compared to December 31, 2023, as continued emphasis was placed on commercial loan growth and indirect auto lending. The investment portfolio decreased $10.7 million from December 31, 2023 to December 31, 2024.

    Non-performing Loans

    The ratio of non-performing loans to total loans ratio increased to 0.47% at December 31, 2024 from 0.17% at December 31, 2023, as non-performing loans increased to $8.9 million at December 31, 2024 from $3.1 million at December 31, 2023. The majority of non-performing loans involve loans that are either in a secured position and have sureties with a strong underlying financial position or have been classified as individually evaluated loans that have a specific allocation recorded within the allowance for credit losses. Net loan charge offs of $228,000 and $540,000 for the three and twelve months ended December 31, 2024, respectively, impacted the allowance for credit losses, which was 0.63% of total loans at December 31, 2024 compared to 0.62% at December 31, 2023. Exposure to non-owner occupied office space is minimal at $14.1 million at December 31, 2024 with none of these loans being delinquent.

    Deposits

    Deposits increased $116.6 million to $1.7 billion at December 31, 2024 compared to December 31, 2023. Noninterest-bearing deposits decreased $14.2 million to $456.9 million at December 31, 2024 compared to December 31, 2023.  Core deposits declined $17.8 million as deposits migrated from core deposit accounts into time deposits as market rates and competition for deposits increased. Core deposit gathering efforts remained focused on increasing the utilization of electronic (internet and mobile) deposit banking by our customers. Core deposits have remained stable at $1.2 billion over the past five quarters. Interest-bearing deposits increased $130.8 million from December 31, 2023 to December 31, 2024 due to growth in the time deposit portfolio of $80.8 million as customers sought a higher rate of interest. Brokered deposit balances increased $53.6 million to $178.3 million at December 31, 2024 as this funding source was utilized to supplement funding loan portfolio growth, while reducing the need to draw upon available borrowing lines. A campaign to attract time deposits with a maturity of five to twenty-four months commenced during the latter part of 2022 and has continued throughout 2023 and 2024 with current efforts centered on five months.

    Shareholders’ Equity

    Shareholders’ equity increased $13.7 million to $205.2 million at December 31, 2024 compared to December 31, 2023.  During the three and twelve months ended December 31, 2024 there were no shares issued under the previously disclosed registered at-the-market offering. A total 31,066 shares for net proceeds of $632,000 were issued as part of the Dividend Reinvestment Plan during the twelve months ended December 31, 2024. Accumulated other comprehensive loss of $5.3 million at December 31, 2024 decreased from a loss of $9.2 million at December 31, 2023 as a result of a decrease in net unrealized loss on available for sale securities to $4.6 million at December 31, 2024 from a net unrealized loss of $6.4 million at December 31, 2023, coupled with a decrease in loss of $2.0 million in the defined benefit plan obligation. The current level of shareholders’ equity equates to a book value per share of $27.16 at December 31, 2024 compared to $25.51 at December 31, 2023, and an equity to asset ratio of 9.19% at December 31, 2024 and 8.69% at December 31, 2023. Tangible book value per share (a non-GAAP measure) increased to $24.97 at December 31, 2024 compared to $23.29 at December 31, 2023. Dividends declared for the three and twelve months ended December 31, 2024 and 2023 were $0.32 and $1.28 per share.

    Penns Woods Bancorp, Inc. is the parent company of Jersey Shore State Bank, which operates sixteen branch offices providing financial services in Lycoming, Clinton, Centre, Montour, Union, and Blair Counties, and Luzerne Bank, which operates eight branch offices providing financial services in Luzerne County, and United Insurance Solutions, LLC, which offers insurance products.  Investment and insurance products are offered through Jersey Shore State Bank’s subsidiary, The M Group, Inc. D/B/A The Comprehensive Financial Group.

    NOTE:  This press release contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  Management uses the non-GAAP measure of net income from core operations in its analysis of the company’s performance. This measure, as used by the Company, adjusts net income determined in accordance with GAAP to exclude the effects of special items, including significant gains or losses that are unusual in nature such as net securities gains and losses. Because these certain items and their impact on the Company’s performance are difficult to predict, management believes presentation of financial measures excluding the impact of such items provides useful supplemental information in evaluating the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for net income determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

    This press release may contain certain “forward-looking statements” including statements concerning plans, objectives, future events or performance and assumptions and other statements, which are statements other than statements of historical fact.  The Company cautions readers that the following important factors, among others, may have affected and could in the future affect actual results and could cause actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company herein: (i) the effect of changes in laws and regulations, including federal and state banking laws and regulations, and the associated costs of compliance with such laws and regulations either currently or in the future as applicable; (ii) the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies as well as by the Financial Accounting Standards Board, or of changes in the Company’s organization, compensation and benefit plans; (iii) the effect on the Company’s competitive position within its market area of the increasing consolidation within the banking and financial services industries, including the increased competition from larger regional and out-of-state banking organizations as well as non-bank providers of various financial services; (iv) the effect of changes in interest rates; (v) the effects of health emergencies, including the spread of infectious diseases or pandemics; (vi) the effect of changes in the business cycle and downturns in the local, regional or national economies; or (vii) any potential adverse events or developments resulting from the merger agreement, dated December 16, 2024, between Penns Woods Bancorp, Inc. and Northwest Bancshares, Inc., including, without limitation, any event, change, or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement or the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in the merger within the expected timeframes or to successfully integrate the business and operations of Jersey Shore State Bank and Luzerne Bank with those of Northwest Savings Bank after closing.  For a list of other factors which could affect the Company’s results, see the Company’s filings with the Securities and Exchange Commission, including “Item 1A.  Risk Factors,” set forth in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

    You should not place undue reliance on any forward-looking statements.  These statements speak only as of the date of this press release, even if subsequently made available by the Company on its website or otherwise.  The Company undertakes no obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release.

    Previous press releases and additional information can be obtained from the Company’s website at www.pwod.com.

    Contact: Richard A. Grafmyre, Chief Executive Officer
      110 Reynolds Street
      Williamsport, PA 17702
      570-322-1111 e-mail: pwod@pwod.com
     
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED BALANCE SHEET
    (UNAUDITED)
     
        December 31,
    (In Thousands, Except Share and Per Share Data)     2024       2023     % Change
    ASSETS:                
    Noninterest-bearing cash           $         19,989     $         28,969             (31.00 ) %
    Interest-bearing balances in other financial institutions                     8,983               8,493             5.77   %
    Total cash and cash equivalents                     28,972               37,462             (22.66 ) %
                     
    Investment debt securities, available for sale, at fair value                     184,542               190,945             (3.35 ) %
    Investment equity securities, at fair value                     1,111               1,122             (0.98 ) %
    Restricted investment in bank stock                     20,032               24,323             (17.64 ) %
    Loans held for sale                     3,266               3,993             (18.21 ) %
    Loans                     1,877,078               1,839,764             2.03   %
    Allowance for credit losses                     (11,848 )             (11,446 )           3.51   %
    Loans, net                     1,865,230               1,828,318             2.02   %
    Premises and equipment, net                     27,789               30,250             (8.14 ) %
    Accrued interest receivable                     11,114               11,044             0.63   %
    Bank-owned life insurance                     45,681               33,867             34.88   %
    Investment in limited partnerships                     6,691               7,815             (14.38 ) %
    Goodwill                     16,450               16,450             —   %
    Intangibles                     107               210             (49.05 ) %
    Operating lease right of use asset             2,811               2,512             11.90   %
    Deferred tax asset                     3,493               4,655             (24.96 ) %
    Other assets                     15,049               11,843             27.07   %
    TOTAL ASSETS           $         2,232,338     $         2,204,809             1.25   %
                     
    LIABILITIES:                
    Interest-bearing deposits           $         1,249,145     $         1,118,320             11.70   %
    Noninterest-bearing deposits                     456,936               471,173             (3.02 ) %
    Total deposits                     1,706,081               1,589,493             7.33   %
                    %
    Short-term borrowings                     42,200               145,926             (71.08 ) %
    Long-term borrowings                     254,588               252,598             0.79   %
    Accrued interest payable                     4,664               3,814             22.29   %
    Operating lease liability                     2,889               2,570             12.41   %
    Other liabilities                     16,685               18,852             (11.49 ) %
    TOTAL LIABILITIES                     2,027,107               2,013,253             0.69   %
                     
    SHAREHOLDERS’ EQUITY:                
    Preferred stock, no par value, 3,000,000 shares authorized; no shares issued                     —               —     n/a
    Common stock, par value $5.55, 22,500,000 shares authorized; 8,066,968 and 8,019,219 shares issued; 7,556,743 and 7,508,994 shares outstanding                     44,815               44,550             0.59   %
    Additional paid-in capital                     63,193               61,733             2.37   %
    Retained earnings                     115,331               107,238             7.55   %
    Accumulated other comprehensive loss:                
    Net unrealized loss on available for sale securities                     (4,567 )             (6,396 )           28.60   %
    Defined benefit plan                     (726 )             (2,754 )           73.64   %
    Treasury stock at cost, 510,225 shares                     (12,815 )             (12,815 )           —   %
    TOTAL SHAREHOLDERS’ EQUITY                     205,231               191,556             7.14   %
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,232,338     $         2,204,809             1.25   %
     
    PENNS WOODS BANCORP, INC.
    CONSOLIDATED STATEMENT OF INCOME
    (UNAUDITED)
     
        Three Months Ended December 31,   Twelve Months Ended December 31,
    (In Thousands, Except Share and Per Share Data)     2024       2023     % Change
        2024       2023     % Change
    INTEREST AND DIVIDEND INCOME:                                
    Loans including fees           $         25,759     $         23,720             8.60   %   $         99,780     $         83,291             19.80   %
    Investment securities:                                
    Taxable                     1,826               1,476             23.71   %             7,039               5,346             31.67   %
    Tax-exempt                     59               107             (44.86 ) %             292               517             (43.52 ) %
    Dividend and other interest income                     607               614             (1.14 ) %             2,587               2,441             5.98   %
    TOTAL INTEREST AND DIVIDEND INCOME                     28,251               25,917             9.01   %             109,698               91,595             19.76   %
                                     
    INTEREST EXPENSE:                                
    Deposits                     9,523               7,445             27.91   %             35,962               22,131             62.50   %
    Short-term borrowings                     479               2,317             (79.33 ) %             4,503               8,401             (46.40 ) %
    Long-term borrowings                     2,686               2,207             21.70   %             10,353               6,099             69.75   %
    TOTAL INTEREST EXPENSE                     12,688               11,969             6.01   %             50,818               36,631             38.73   %
                                     
    NET INTEREST INCOME                     15,563               13,948             11.58   %             58,880               54,964             7.12   %
                                     
    PROVISION (RECOVERY) FOR CREDIT LOSSES                      420               (1,742 )           124.11   %             121               (1,479 )           108.18   %
                                     
    NET INTEREST INCOME AFTER PROVISION (RECOVERY) OF CREDIT LOSSES                     15,143               15,690             (3.49 ) %             58,759               56,443             4.10   %
                                     
    NON-INTEREST INCOME:                                
    Service charges                     516               533             (3.19 ) %             2,067               2,090             (1.10 ) %
    Net debt securities losses, available for sale                     (9 )             (68 )           86.76   %             (49 )             (193 )           74.61   %
    Net equity securities (losses) gains                     (35 )             50             (170.00 ) %             (11 )             15             (173.33 ) %
    Bank-owned life insurance                     303               171             77.19   %             1,159               1,063             9.03   %
    Gain on sale of loans                     463               314             47.45   % .           1,484               1,046             41.87   %
    Insurance commissions                     128               113             13.27   %             553               529             4.54   %
    Brokerage commissions                     163               127             28.35   %             684               575             18.96   %
    Loan broker income                     543               264             105.68   %             1,384               992             39.52   %
    Debit card income                     385               333             15.62   %             1,437               1,328             8.21   %
    Other                     253               384             (34.11 ) %             910               930             (2.15 ) %
    TOTAL NON-INTEREST INCOME                     2,710               2,221             22.02   %             9,618               8,375             14.84   %
                                     
    NON-INTEREST EXPENSE:                                
    Salaries and employee benefits                     7,032               6,284             11.90   %             26,256               25,062             4.76   %
    Occupancy                     758               746             1.61   %             3,152               3,168             (0.51 ) %
    Furniture and equipment                     1,233               889             38.70   %             3,669               3,392             8.17   %
    Software amortization                     339               250             35.60   %             996               843             18.15   %
    Pennsylvania shares tax                     351               275             27.64   %             1,373               1,082             26.89   %
    Professional fees                     523               640             (18.28 ) %             2,177               2,953             (26.28 ) %
    Federal Deposit Insurance Corporation deposit insurance                     385               456             (15.57 ) %             1,564               1,578             (0.89 ) %
    Marketing                     74               90             (17.78 ) %             283               684             (58.63 ) %
    Intangible amortization                     25               25             —   %             102               117             (12.82 ) %
    Merger expense                     735               —     n/a             735               —     n/a
    Other                     1,525               1,342             13.64   %             6,177               5,617             9.97   %
    TOTAL NON-INTEREST EXPENSE                     12,980               10,997             18.03   %             46,484               44,496             4.47   %
    INCOME BEFORE INCOME TAX PROVISION                     4,873               6,914             (29.52 ) %             21,893               20,322             7.73   %
    INCOME TAX PROVISION                     1,132               1,359             (16.70 ) %             4,154               3,714             11.85   %
    NET INCOME AVAILABLE TO COMMON SHAREHOLDERS’   $         3,741     $         5,555             (32.66 ) %   $         17,739     $         16,608             6.81   %
    EARNINGS PER SHARE – BASIC            $         0.50     $         0.77             (35.06 ) %   $         2.35     $         2.34             0.43   %
    EARNINGS PER SHARE – DILUTED           $         0.49     $         0.77             (36.36 ) %   $         2.35     $         2.34             0.43   %
    WEIGHTED AVERAGE SHARES OUTSTANDING – BASIC                     7,555,168               7,255,222             4.13   %             7,535,397               7,112,450             5.95   %
    WEIGHTED AVERAGE SHARES OUTSTANDING – DILUTED                     7,693,185               7,255,222             6.04   %             7,543,111               7,112,450             6.06   %
     
    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)
     
        Three Months Ended
        December 31, 2024   December 31, 2023
    (Dollars in Thousands)   Average 
    Balance (1)
      Interest   Average 
    Rate
      Average 
    Balance (1)
      Interest   Average 
    Rate
    ASSETS:                        
    Tax-exempt loans (3)           $         69,967     $         453             2.58   %   $         68,234     $         478             2.78   %
    All other loans                     1,806,212               25,401             5.59   %             1,760,509               23,342             5.26   %
    Total loans (2)                     1,876,179               25,854             5.48   %             1,828,743               23,820             5.17   %
                             
    Taxable securities                     199,868               2,277             4.63   %             193,744               1,932             4.04   %
    Tax-exempt securities (3)                     11,317               75             2.70   %             18,041               135             3.03   %
    Total securities                     211,185               2,352             4.53   %             211,785               2,067             3.96   %
                             
    Interest-bearing balances in other financial institutions                     13,136               156             4.72   %             11,795               158             5.31   %
                             
    Total interest-earning assets                     2,100,500               28,362             5.38   %             2,052,323               26,045             5.04   %
                             
    Other assets                     137,840                       130,421          
                             
    TOTAL ASSETS           $         2,238,340             $         2,182,744          
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                        
    Savings           $         209,300               266             0.51   %   $         222,740               229             0.41   %
    Super Now deposits                     220,792               1,070             1.93   %             227,113               1,129             1.97   %
    Money market deposits                     323,181               2,656             3.27   %             293,542               2,217             3.00   %
    Time deposits                     504,683               5,531             4.36   %             377,516               3,870             4.07   %
    Total interest-bearing deposits                     1,257,956               9,523             3.01   %             1,120,911               7,445             2.64   %
                             
    Short-term borrowings                     38,495               479             4.96   %             163,088               2,317             5.63   %
    Long-term borrowings                     256,521               2,686             4.17   %             235,998               2,207             3.71   %
    Total borrowings                     295,016               3,165             4.27   %             399,086               4,524             4.50   %
                             
    Total interest-bearing liabilities                     1,552,972               12,688             3.25   %             1,519,997               11,969             3.12   %
                             
    Demand deposits                     454,612                       457,546          
    Other liabilities                     25,218                       28,786          
    Shareholders’ equity                     205,538                       176,415          
                             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,238,340             $         2,182,744          
    Interest rate spread (3)                           2.13   %                   1.92   %
    Net interest income/margin (3)               $         15,674             2.98   %       $         14,076             2.73   %
    1. Information on this table has been calculated using average daily balance sheets to obtain average balances.
    2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
    3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%.
       
        Three Months Ended December 31,
          2024       2023  
    Total interest income           $         28,251     $         25,917  
    Total interest expense                     12,688               11,969  
    Net interest income (GAAP)                     15,563               13,948  
    Tax equivalent adjustment                     111               128  
    Net interest income (fully taxable equivalent) (non-GAAP)           $         15,674     $         14,076  
     
    PENNS WOODS BANCORP, INC.
    AVERAGE BALANCES AND INTEREST RATES 
    (UNAUDITED)
     
        Twelve Months Ended
        December 31, 2024   December 31, 2023
    (Dollars in Thousands)   Average 
    Balance (1)
      Interest   Average 
    Rate
      Average 
    Balance (1)
      Interest   Average 
    Rate
    ASSETS:                        
    Tax-exempt loans (3)           $         69,448     $         1,943             2.80   %   $         66,863     $         1,849             2.77   %
    All other loans                     1,796,096               98,245             5.47   %             1,691,742               81,830             4.84   %
    Total loans (2)                     1,865,544               100,188             5.37   %             1,758,605               83,679             4.76   %
                             
    Taxable securities                     202,934               9,072             4.47   %             189,804               7,263             3.83   %
    Tax-exempt securities (3)                     13,045               370             2.84   %             23,872               654             2.74   %
    Total securities                     215,979               9,442             4.37   %             213,676               7,917             3.71   %
                             
    Interest-bearing balances in other financial institutions                     11,074               554             5.00   %             10,916               524             4.80   %
                             
    Total interest-earning assets                     2,092,597               110,184             5.27   %             1,983,197               92,120             4.65   %
                             
    Other assets                     132,720                       131,704          
                             
    TOTAL ASSETS           $         2,225,317             $         2,114,901          
                             
    LIABILITIES AND SHAREHOLDERS’ EQUITY:                        
    Savings           $         215,107               1,077             0.50   %   $         231,000               685             0.30   %
    Super Now deposits                     218,932               4,373             2.00   %             276,868               4,155             1.50   %
    Money market deposits                     311,836               10,390             3.33   %             292,755               7,024             2.40   %
    Time deposits                     460,869               20,122             4.37   %             293,252               10,267             3.50   %
    Total interest-bearing deposits                     1,206,744               35,962             2.98   %             1,093,875               22,131             2.02   %
                             
    Short-term borrowings                     82,046               4,503             5.49   %             157,140               8,401             5.36   %
    Long-term borrowings                     256,850               10,353             4.03   %             186,094               6,099             3.28   %
    Total borrowings                     338,896               14,856             4.40   %             343,234               14,500             4.23   %
                             
    Total interest-bearing liabilities                     1,545,640               50,818             3.29   %             1,437,109               36,631             2.55   %
                             
    Demand deposits                     454,878                       477,828          
    Other liabilities                     30,680                       31,243          
    Shareholders’ equity                     194,119                       168,721          
                             
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY           $         2,225,317             $         2,114,901          
    Interest rate spread (3)                           1.98   %                   2.10   %
    Net interest income/margin (3)               $         59,366             2.83   %       $         55,489             2.80   %
    1. Information on this table has been calculated using average daily balance sheets to obtain average balances.
    2. Non-accrual loans have been included with loans for the purpose of analyzing net interest earnings.
    3. Income and rates on fully taxable equivalent basis include an adjustment for the difference between annual income from tax-exempt obligations and the taxable equivalent of such income at the standard tax rate of 21%.
       
        Twelve months ended December 31,
          2024       2023  
    Total interest income           $         109,698     $         91,595  
    Total interest expense                     50,818               36,631  
    Net interest income (GAAP)                     58,880               54,964  
    Tax equivalent adjustment                     486               525  
    Net interest income (fully taxable equivalent) (non-GAAP)           $         59,366     $         55,489  
    (Dollars in Thousands, Except Per Share Data, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Operating Data                    
    Net income           $         3,741       $         4,801       $         5,390       $         3,808       $         5,555    
    Net interest income                     15,563                 15,056                 14,515                 13,746                 13,948    
    Provision (recovery) for credit losses                     420                 740                 (1,177 )               138                 (1,742 )  
    Net security (losses) gains                     (44 )               36                 (19 )               (33 )               (18 )  
    Non-interest income, excluding net security (losses) gains                     2,754                 2,385                 2,044                 2,495                 2,239    
    Non-interest expense                     12,980                 10,884                 10,996                 11,623                 10,997    
                         
    Performance Statistics                    
    Net interest margin                     2.98   %             2.88   %             2.83   %             2.69   %             2.73   %
    Annualized cost of total deposits                     2.22   %             2.27   %             2.14   %             2.01   %             1.89   %
    Annualized non-interest income to average assets                     0.48   %             0.43   %             0.37   %             0.45   %             0.41   %
    Annualized non-interest expense to average assets                     2.32   %             1.95   %             1.98   %             2.10   %             2.02   %
    Annualized return on average assets                     0.67   %             0.86   %             0.97   %             0.69   %             1.02   %
    Annualized return on average equity                     7.28   %             9.60   %             11.12   %             8.03   %             12.60   %
    Annualized net loan charge-offs (recoveries) to average loans     0.05   %     0.07   %     (0.09 ) %     0.08   %     (0.05 ) %
    Net charge-offs (recoveries)                      228                 328                 (396 )               380                 (209 )  
    Efficiency ratio                     70.73   %             62.26   %             66.25   %             71.41   %             67.78   %
                         
    Per Share Data                    
    Basic earnings per share           $         0.50       $         0.64       $         0.72       $         0.51       $         0.77    
    Diluted earnings per share                     0.49                 0.64                 0.72                 0.51                 0.77    
    Dividend declared per share                     0.32                 0.32                 0.32                 0.32                 0.32    
    Book value                     27.16                 26.96                 26.13                 25.72                 25.51    
    Tangible book value (Non-GAAP)                     24.97                 24.77                 23.93                 23.50                 23.29    
    Common stock price:                    
    High                     34.06                 23.98                 21.08                 22.64                 23.64    
    Low                     23.74                 19.29                 17.17                 18.44                 20.05    
    Close                     30.39                 23.79                 20.55                 19.41                 22.51    
    Weighted average common shares:                    
    Basic                     7,555                 7,544                 7,529                 7,513                 7,255    
    Fully Diluted                     7,693                 7,544                 7,529                 7,513                 7,255    
    End-of-period common shares:                    
    Issued                     8,067                 8,065                 8,052                 8,036                 8,019    
    Treasury                     (510 )               (510 )               (510 )               (510 )               (510 )  
    (Dollars in Thousands, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Financial Condition Data:                    
    General                    
    Total assets           $         2,232,338       $         2,259,250       $         2,234,617       $         2,210,116       $         2,204,809    
    Loans, net                     1,865,230                 1,863,586                 1,855,054                 1,843,805                 1,828,318    
    Goodwill                     16,450                 16,450                 16,450                 16,450                 16,450    
    Intangibles                     107                 133                 158                 184                 210    
    Total deposits                     1,706,081                 1,700,321                 1,648,093                 1,618,562                 1,589,493    
    Noninterest-bearing                     456,936                 452,922                 461,092                 471,451                 471,173    
    Savings                     208,340                 211,560                 218,354                 220,932                 219,287    
    NOW                     212,687                 218,279                 209,906                 208,073                 214,888    
    Money Market                     308,977                 321,614                 320,101                 299,916                 299,353    
    Time Deposits                     340,844                 328,294                 310,187                 292,372                 260,067    
    Brokered Deposits                     178,297                 167,652                 128,453                 125,818                 124,725    
    Total interest-bearing deposits                     1,249,145                 1,247,399                 1,187,001                 1,147,111                 1,118,320    
                         
    Core deposits*                     1,186,940                 1,204,375                 1,209,453                 1,200,372                 1,204,701    
    Shareholders’ equity                     205,231                 203,694                 197,087                 193,517                 191,556    
                         
    Asset Quality                    
    Non-performing loans           $         8,904       $         7,940       $         6,784       $         7,958       $         3,148    
    Non-performing loans to total assets                     0.40   %             0.35   %             0.30   %             0.36   %             0.14   %
    Allowance for credit losses on loans                     11,848                 11,588                 11,234                 11,542                 11,446    
    Allowance for credit losses on loans to total loans                     0.63   %             0.62   %             0.60   %             0.62   %             0.62   %
    Allowance for credit losses on loans to non-performing loans                     133.06   %             145.94   %             165.60   %             145.04   %             363.60   %
    Non-performing loans to total loans                     0.47   %             0.42   %             0.36   %             0.43   %             0.17   %
                         
    Capitalization                    
    Shareholders’ equity to total assets                     9.19   %             9.02   %             8.82   %             8.76   %             8.69   %
                                                       
    * Core deposits are defined as total deposits less time deposits and brokered deposits.
     
    Reconciliation of GAAP and Non-GAAP Financial Measures
    (UNAUDITED)
     
        Three Months Ended December 31,   Twelve Months Ended December 31,
    (Dollars in Thousands, Except Per Share Data, Unaudited)    2024    2023    2024    2023
    GAAP net income           $         3,741       $         5,555       $         17,739       $         16,608    
    Net securities losses, net of tax                     35                 14                 47                 141    
    Merger expenses, net of tax                     581                 —                 581                 —    
    Non-GAAP core earnings           $         4,357       $         5,569       $         18,367       $         16,749    
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Return on average assets (ROA)                     0.67   %             1.02   %             0.80   %             0.79   %
    Net securities losses, net of tax                     0.01   %             —   %             —   %             —   %
    Merger expenses, net of tax                     0.10   %             —   %             0.03   %             —   %
    Non-GAAP core ROA                     0.78   %             1.02   %             0.83   %             0.79   %
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Return on average equity (ROE)                     7.28   %             12.60   %             9.14   %             9.84   %
    Net securities losses, net of tax                     0.07   %             0.03   %             0.02   %             0.09   %
    Merger expenses, net of tax                     1.13   %             —   %             0.30   %             —   %
    Non-GAAP core ROE                     8.48   %             12.63   %             9.46   %             9.93   %
                     
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Basic earnings per share (EPS)           $         0.50       $         0.77       $         2.35       $         2.34    
    Net securities losses, net of tax                     —                 —                 0.01                 0.02    
    Merger expenses, net of tax                     0.08                 —                 0.08                 —    
    Non-GAAP basic core EPS           $         0.58       $         0.77       $         2.44       $         2.36    
             
        Three Months Ended December 31,   Twelve Months Ended December 31,
         2024    2023    2024    2023
    Diluted EPS           $         0.49       $         0.77       $         2.35       $         2.34    
    Net securities losses, net of tax                     —                 —                 0.01                 0.02    
    Merger expenses, net of tax                     0.08                 —                 0.08                 —    
    Non-GAAP diluted core EPS           $         0.57       $         0.77       $         2.44       $         2.36    
    (Dollars in Thousands, Except Share and Per Share Data, Unaudited)   Quarter Ended
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023
    Total shareholders’ equity           $         205,231     $         203,694     $         197,087     $         193,517     $         191,556  
    Goodwill                     (16,450 )             (16,450 )             (16,450 )             (16,450 )             (16,450 )
    Intangibles                     (107 )             (133 )             (158 )             (184 )             (210 )
    Tangible shareholders’ equity           $         188,674     $         187,111     $         180,479     $         176,883     $         174,896  
                         
    Shares outstanding                     7,556,743               7,554,488               7,541,474               7,525,372               7,508,994  
                         
    Book value per share           $         27.16     $         26.96     $         26.13     $         25.72     $         25.51  
    Tangible book value per share (Non-GAAP)           $         24.97     $         24.77     $         23.93     $         23.50     $         23.29  
                                             

    The MIL Network

  • MIL-OSI Global: Is no amount of alcohol safe? Understanding risks and public health guidelines

    Source: The Conversation – Canada – By Scott Lear, Professor of Health Sciences, Simon Fraser University

    While it may be true that there is no safe level of alcohol consumption, are alarmist statements a good motivator for health messaging, or is there danger to using them? (Shutterstock)

    The United States surgeon general recently called for a warning of cancer risk on alcohol labels. And I agree. But the discourse that has come out in the media, by health professionals and health influencers, has been alarmist and a disservice to informing the public on the real cancer risks associated with alcohol.

    I’m a professor in Health Sciences at Simon Fraser University and I study how behaviours relate to the disease. I also write a blog on the role health behaviours play in your health.

    Alcohol and cancer risk

    The surgeon general’s comments follow reports from the World Health Organization and Canada’s Guidance on Alcohol and Health, both of which state there is no safe amount of alcohol you can consume.

    This has been repeated by health professionals, those in public health and on social media, where health influencers have described alcohol as a toxin.

    But are these alarmist statements a good motivator for health messaging, or is there danger to using them?

    Statistically, your risk for cancer goes up from the very first sip of alcohol. That doesn’t mean you will get cancer from drinking alcohol, it just means your chances increase. And as you drink more alcohol, your chances further increase. It’s like betting in roulette: the more numbers you bet on, the more likely you are to win. Or in this case, lose.

    Out of 800 women, one drink per week will result in two additional women getting breast cancer.
    (Shutterstock)

    However, what’s lost in this messaging is how much this risk is. Based on Canada’s Guidance on Alcohol and Health, having one drink per week increases a women’s risk for breast cancer by 1.8 per cent. Approximately one in eight women will develop breast cancer in their life. Therefore, out of 800 women, one drink per week will result in two additional women getting breast cancer. Having one drink per day increases the risk seven-fold. These are real people who might otherwise not get breast cancer if they abstained from alcohol.

    While saying no amount of alcohol is safe is true, this can apply to a lot of common activities. In Canada, there are approximately 300 pedestrian deaths per year. Each day, on average, five Canadians die in motor vehicle accidents.

    While these numbers are much lower than the number of people who die from cancer each year, it would also be accurate to say there is no amount of walking or driving that is safe. Despite this, people will continue to cross the street and people will continue to drive. But this illustrates the challenge in informing the public about risks and changing behaviour.

    Fear in public health messaging

    The use of fear in public health messaging should only be used if there’s an effective solution. In the case of alcohol, there is: abstinence.
    (Shutterstock)

    The use of fear in public health has a long history. But measuring the effect of these campaigns is hard. Graphic images are used on tobacco products to scare people away from smoking. Carefully controlled studies indicate they increase health awareness but may have limited effect on smoking. However, similar graphic images on bottles of sugar-sweetened beverages in controlled studies has been shown to reduce consumption.

    During the COVID-19 pandemic, fear was at the forefront of public health efforts to control the spread of SARS-CoV-2. Indeed, the use of fear in public health messaging seemed to be quite an effective tool in ensuring behavioural compliance in pandemic measures. Community interviews of parents showed fear was at the root of both getting their children vaccinated (fear of the disease) or not (fear of the vaccination).

    The use of fear in public health messaging should only be used if there’s an effective solution. In the case of alcohol, there is: abstinence. But the use of fear should also be commensurate with the risk, otherwise it risks having people tune out.

    This may be particularly problematic when previous guidelines stated beneficial effects of moderate drinking and current guidelines on alcohol state one to two drinks per day is acceptable. Instead, the public may be best served by communicating the risk in terms the public understands, such as how many more people will get cancer from drinking.

    Alcohol should have a warning label on it

    Alcohol consumption in Canada is on the decline. In 2022, alcohol consumption decreased by 1.2 per cent compared to 2021. And in 2023, 54 per cent of Canadians reported having no alcohol over the previous week, with younger Canadians drinking less than their older counterparts. These trends are similar in the United States.

    More than 40 countries have a warning label on alcohol (although far fewer mention cancer), but Canada and many European countries are not included. They should be. Alcohol is a highly addictive substance that can destroy the lives of those addicted to it and those around them. It impairs judgment and accounts for dozens of deaths per year from drinking and driving.

    Pregnant women drinking alcohol also increase their risk of their child having fetal alcohol spectrum disorder. Alcohol is also a drug you can overdose from.

    Warning labels on alcohol are a good step to reduce health risks, as long as they are clear and informative.

    Scott Lear receives funding from the Canadian Institutes of Health Research and Hamilton Health Sciences, and has received funding from the Heart and Stroke Foundation, Novo Nordisk, and the Robert Wood Johnson Foundation.

    ref. Is no amount of alcohol safe? Understanding risks and public health guidelines – https://theconversation.com/is-no-amount-of-alcohol-safe-understanding-risks-and-public-health-guidelines-247883

    MIL OSI – Global Reports

  • MIL-OSI: 2024 Q4 Revenue

    Source: GlobeNewswire (MIL-OSI)

    • €994.6 million in total revenue for 2024, down -5.9%, reflecting the Group’s strategic orientations
      • Prioritizing margins over revenue growth
      • Managed decrease in the most mature markets
      • Focus on the Group’s profitable growth drivers, primarily in Germany and in Energy activities
    • Q4: €251.8 million in revenue, down -12.4%
      • Q4 2023 comparison basis particularly high
      • Impact of selectivity measures implemented in Q2 in the telecom sector in France and Spain
      • Fiber activity in Belgium remains low as negotiations continue between telco service providers seeking to pool their investments.
      • Strong growth in Germany, the group’s future third pillar: +51%
      • Strong growth in Energy activities: +30%
    • 2024 full-year margin outlook confirmed
      • Improvement of the Group’s adjusted EBITDA margin
      • Increase in adjusted EBITDA despite the revenue decline, demonstrating the relevance of the Group’s reinforced selectivity strategy
      12 months Q4
    In millions of euros (unaudited) 2024 2023 % change 2024 2023 % change
    Group 994.6 1,057.0         -5.9% 251.8 287.3         -12.4%
    Benelux 371.6 381.6         -2.6% 92.7 112.0         -17.2%
    France 360.6 403.3         -10.6% 90.5 105.6         -14.3%
    Other Countries 262.4 272.1         -3.6% 68.6 69.7         -1.6%

    Gianbeppi Fortis, Chief Executive Officer of Solutions30, stated: “As previously announced, Solutions30’s 2024 revenue trends reflect the Group’s strategic priorities, with a stronger focus on margins over revenue growth in a mixed market environment. In the fourth quarter, we continued to selectively scale back our revenue in our most mature segments, particularly in telecoms in France and Spain, in order to enhance operating margins. Meanwhile, fiber activity in Belgium remained temporarily subdued due to ongoing negotiations between service providers. At the same time, our key growth drivers – primarily Germany and energy transition-related services – continued to expand. Notably, energy services now represent nearly 20% of our fourth-quarter revenue. We confirm our objective of increasing the Group’s adjusted EBITDA for the full year 2024, despite the revenue decrease. This demonstrates our ability to significantly improve operating margins and highlights the effectiveness of our selectivity strategy in the market environment we faced in 2024.”

    Consolidated revenue

    In 2024, Solutions30’s consolidated revenue stood at €994.6 million, down -5.9% compared to 2023. This includes an organic contraction of -6.5%, a +0.2% impact from acquisitions, and a +0.4% favorable exchange rate effect.

    It also reflects the Group’s strategic objectives, as outlined during the Capital Markets Day on September 26, 2024, in a context where Solutions30 operates across markets and business segments at different stages of maturity. The Group has chosen to increasingly prioritize margins over revenue growth, leading to a scaling down in the French and Spanish telecom sectors, where certain contracts no longer met profitability requirements. At the same time, Solutions30 is accelerating the expansion of its profitable growth drivers in Germany and in the energy sector.

    Q4 consolidated revenue stood at €251.8 million, down -12.4% (-12.9% organically) compared to Q4 2023, which represented a particularly high basis for comparison (€287.3 million). Trends in Q4 remained in line with those observed in Q3, with: (i) the impact of selectivity measures implemented in Q2 in the French and Spanish telecom sectors, (ii) continued low levels of activity in Benelux, largely due to ongoing negotiations between Belgian service providers seeking to pool their fiber roll-out investments, and (iii) continued strong momentum in the Group’s key growth drivers: Germany, where fiber deployments are accelerating rapidly, and Energy services, a business the Group is successfully expanding.

    Benelux

    2024 Q4 revenue in Benelux stood at €92.7 million, down -17.2% (-17.6% organically) from a particularly high comparison basis (+61% in Q4 of 2023). Connectivity activities posted revenue of €67.3 million in Q4, down
    -26%. In Belgium, fiber optic deployment remained hindered by ongoing negotiations between telecom service providers seeking to streamline nationwide deployment. These negotiations continued to cause delays in activity for Solutions30, with the impact further amplified in Q4 by the merger of two of its local clients, Proximus and Fiberklaar, which led to discussions on adapting operational processes.

    Revenue from Energy activities reached €16.4 million in Q4, posting a modest 1.8% increase. While the roll-out of smart meters in Flanders has reached a plateau, further roll-outs in Wallonia and growth in network services are expected to drive momentum in the coming quarters. Meanwhile, Energy services in the Netherlands have slowed down due to electrical grid congestion, which is expected to prompt additional infrastructure investments.

    Technology Solutions remained strong, generating €9.0 million in revenue, up +67%, driven by the launch of a new IT support contract.        

    2024 annual revenue in Benelux reached €371.6 million, down slightly by -2.6% (-2.8% organically), after extremely strong growth (+72%) in 2023.

    France

    In France, 2024 Q4 revenue was €90.5 million, down -14.3% on an organic basis. This decrease is primarily attributable to Connectivity activities, which contracted by -38.2% to €45.2 million, following the selectivity measures implemented since the second quarter. As part of its strategic focus on profitability, the Group has significantly reduced its exposure to certain contracts that no longer met its profitability standards, with the impact further amplified by the slowdown in the fiber deployment market observed since the beginning of the year.

    The Group continues to successfully expand its Energy business, which posted strong growth of +54% in the fourth quarter, reaching €26.0 million in revenue, or 29% of the total. Supported by highly favorable structural trends, this segment is gradually establishing itself as a major growth driver for Solutions30, particularly in the photovoltaic sector, where the Group is achieving significant commercial and operational successes, recording a +72% increase in the fourth quarter. Momentum also remains strong in energy network services, which grew by +61% over the period.

    Technology activities sustain a strong momentum, generating €19.3 million in revenue in Q4, up +24%. Following an exceptional surge in business during the 2024 Paris Olympics in Q2, IT support services continued to grow strongly, driven by the expansion of Internet of Things solutions, particularly the installation of smart thermostats.

    Annual revenue for France in 2024 stood at €360.6 million, down -10.6%, including a -11% organic contraction and a +0.4% contribution from recent acquisitions.

    Other Countries

    In Other countries, the group generated €68.6 million in revenue in Q4 2024, down slightly by -1.6%. This includes an organic decline of -3.4% and a positive currency impact of +1.8%, reflecting the appreciation of the zloty and pound sterling against the euro during this period.

    In Germany, Solutions30 is capitalizing on exceptional market momentum, with 2024 Q4 revenue increasing by +51.3% to €24.6 million. Coaxial network services remain strong while fiber growth is picking up speed. Firmly established with the leading national telecom operators, the Group has the organization, expertise, and resources required to play a key role in accelerating roll-outs in the coming quarters.

    Solutions30 has continued to grow in Poland, with +6.4% revenue growth in Q4, reaching €15.1 million. While it has, until now, focused on Connectivity activities in this country, the Group recently won two electric vehicle charging infrastructure contracts with two major players, Ekoenergetyka and Inbalance Grid (see press release dated January 8, 2025).

    In Italy, Q4 revenue totaled €14.5 million. Business has returned to growth, posting a +6.2% increase over the period. However, this growth is offset by the positive impact of 2023 negotiations with the Group’s main Italian client, which was fully accounted for in Q4 2023, despite covering the entire fiscal year. This distorts the comparison, resulting in an apparent -10.6% decline in Q4 2024.

    In Spain, revenue amounted to €7.3 million, down -44.1% due to steps taken in Q2 to reduce the Group’s exposure to the mature telecoms market. The restructuring of the Connectivity business and the refocus on the Energy and Technology activities are ongoing.

    Finally, In the United Kingdom, revenue came in at €7.2 million, down -28.4% compared to Q4 2023. The Group continues to shift its focus toward the fiber and energy services markets, driven by a newly appointed local management team.

    In 2024, annual revenue for Other Countries was €262.4 million, down -3.6%, including a -5.0% organic contraction and a positive exchange rate effect of +1.4%.

    2024 full-year margin outlook confirmed

    For the whole of 2024, Solutions30 confirms its outlook for an improvement in its adjusted EBITDA margin, as well as an increase in adjusted EBITDA in absolute terms, despite the decline in revenue. This demonstrates the effectiveness of the selectivity strategy implemented by the Group in 2024.

     
    Governance

    Today the Supervisory Board appointed Mrs. Paola Bruno as Vice Chair of the Supervisory Board. A valued member of the Supervisory Board since 2023, Paola Bruno will continue to bring her extensive experience in corporate finance and strategy to this leadership role and to Solutions30 organization as a whole.

    Webcast for Investors and Analysts
    Date: Wednesday, January 29, 2025
    6:30 PM (CET) – 5:30 PM (GMT)

    Speakers
    Gianbeppi Fortis, Chief Executive Officer
    Amaury Boilot, Group General Secretary

    Connection Details
    Webcast in French: https://channel.royalcast.com/landingpage/solutions30-fr/20250129_1/

    Upcoming Events

    2024 Earnings Report                                                                                  March 31, 2025

    About Solutions30 SE

    Solutions30 provides consumers and businesses with access to the key technological advancements that are shaping our everyday lives, especially those driving the digital transformation and energy transition. With its network of more than 16,000 technicians, Solutions30 has completed over 65 million call-outs since its inception and led over 500 renewable energy projects with a combined maximum output surpassing 1600 MWp. Every day, Solutions30 is doing its part to build a more connected and sustainable world. Solutions30 has become an industry leader in Europe with operations in 10 countries: France, Italy, Germany, the Netherlands, Belgium, Luxembourg, Spain, Portugal, the United Kingdom, and Poland.
    The capital of Solutions30 SE consists of 107,127,984 shares, equal to the number of theoretical votes that can be exercised. Solutions30 SE is listed on the Euronext Paris exchange (ISIN FR0013379484- code S30).
    Indices : CAC Mid & Small | CAC Small | CAC Technology | Euro Stoxx Total Market Technology | Euronext Tech Croissance.
    Visit our website for more information: www.solutions30.com.

    Contact

    Individual Shareholders:
    Tel: +33 (0)1 86 86 00 63 – shareholders@solutions30.com

    Analysts/Investors:
    investor.relations@solutions30.com

    Press – Image 7:
    Charlotte Le Barbier – Tel: +33 6 78 37 27 60 – clebarbier@image7.fr

    Attachment

    The MIL Network

  • MIL-OSI Economics: Major League Soccer returns to MLS Season Pass on Apple TV

    Source: Apple

    Headline: Major League Soccer returns to MLS Season Pass on Apple TV

    January 29, 2025

    UPDATE

    Major League Soccer returns to MLS Season Pass on Apple TV for historic 30th season

    Beginning today, fans in over 100 countries and regions can subscribe for access to every MLS game with no blackouts

    The regular season kicks off February 22-23

    Major League Soccer returns to Apple TV next month, and starting today, fans in more than 100 countries and regions can sign up for MLS Season Pass to catch all the action throughout the 30th anniversary season. Subscribers can access every MLS game with no blackouts, along with in-depth coverage and analysis, expansive programming, exclusive content, and more — including the annual Leagues Cup tournament, MLS All-Star Game, Audi MLS Cup Playoffs games, and select MLS NEXT Pro matches.

    The 2025 season begins Saturday, February 22, and kicks off the third year of an unprecedented 10-year partnership between Apple and Major League Soccer. The upcoming season also marks the arrival of the 30th MLS team, San Diego FC.

    “MLS Season Pass delivers fans exactly what they want, connecting them with the game they love across all of their devices, with no blackouts,” said Eddy Cue, Apple’s senior vice president of Services. “Heading into our third year with MLS, we’re excited to continue elevating the fan experience and can’t wait for the season to begin.”

    “Our partnership with Apple has redefined how fans experience Major League Soccer, bringing the league to more people around the world than ever before,” said Don Garber, MLS’s commissioner. “With the addition of Sunday Night Soccer, a new studio, and the debut of Onside: Major League Soccer on Apple TV+, 2025 will be our best season yet. We couldn’t be more excited about the future of our partnership with Apple.”

    Preseason Action on MLS Season Pass

    To celebrate the start of the 2025 season, MLS Season Pass will broadcast select preseason matches, including when LAFC faces reigning Liga MX Apertura 2024 champion Club América on February 11 at 10:30 p.m. ET, and Inter Miami’s final preseason friendly against Orlando City SC on February 14 at 7:30 p.m. ET. These matches will also be available to stream free for Apple TV+ subscribers.

    MLS is Back: 2025 Opening Weekend

    On February 22 and February 23, all 30 clubs will take the pitch for MLS is Back weekend. MLS MVP Lionel Messi and Inter Miami CF host New York City FC in the first match of the season at 2:30 p.m. ET. The complete regular-season schedule can be found at mlssoccer.com.

    Introducing Sunday Night Soccer

    New for 2025, MLS Season Pass will broadcast a featured game of the week on Sunday evenings under the banner Sunday Night Soccer, with enhanced production and dedicated studio programming. These primetime games will air throughout the regular season and spotlight the league’s most compelling matchups. Sunday Night Soccer will include dedicated pre- and postgame shows, enhanced production and studio programming, and bespoke graphics in English and Spanish. All Sunday Night Soccer matches will also be available to stream free for Apple TV+ subscribers.

    Sunday Night Soccer matches will feature broadcast talent on camera, with leading MLS Season Pass broadcasters Jake Zivin, Taylor Twellman, and Andrew Wiebe on the call for English broadcasts, and Sammy Sadovnik and Diego Valeri in Spanish. MLS Wrap Up and MLS El Resumen will move to Sunday evenings following the final Sunday match to highlight and recap the full week of matches, giving fans a more comprehensive view of all the week’s action, with first-rate commentary and analysis, along with can’t-miss highlights.

    The inaugural Sunday Night Soccer matchup will showcase the league’s newest franchise, San Diego FC, as it makes its debut against reigning MLS Cup champions LA Galaxy on February 23 at 7 p.m. ET. To add to the excitement, the match will also broadcast live in Times Square.

    T-Mobile Customers Get MLS Season Pass Free

    T-Mobile is giving qualified T-Mobile and Metro by T-Mobile customers — including businesses — a promotional offer for complimentary access to MLS Season Pass all season long with no blackout dates. T-Mobile customers can redeem for a limited time via T-Mobile Tuesdays in the T-Life app, starting February 18.

    MLS Season Pass on Comcast

    Apple is partnering with Comcast to offer Xfinity customers an integrated viewing experience for MLS Season Pass, bringing all live matches directly into the Xfinity user interface so customers can easily find and watch all the action alongside other live programming. As part of the partnership, customers will be able to sign up for MLS Season Pass directly through Xfinity, and every live match will be seamlessly incorporated throughout the viewing experience, including within the channel guide on X1 and the Xfinity Stream app, and the Apple TV app.

    Comcast and Apple are also unlocking free access to MLS 360 for all Xfinity customers throughout the season, the first time the popular whip-around studio show — which provides live looks-ins from every match — has been available without an MLS Season Pass subscription. And to celebrate the start of the 2025 season and the launch of the new viewing experience, Xfinity will offer all customers a free preview of MLS Season Pass from February 22 to March 2, after which they’ll be able to subscribe to MLS Season Pass through Xfinity.

    MLS Season Pass on DIRECTV

    New for the 2025 season, DIRECTV residential customers can subscribe to MLS Season Pass through DIRECTV. Matches will be available to watch live in the DIRECTV satellite guide on channels 480 through 495, similar to the viewing experience for other league packages. Customers who subscribe through DIRECTV will also be able to access MLS Season Pass through the Apple TV app.

    DIRECTV is making a free preview of MLS Season Pass available to all DIRECTV residential and commercial satellite customers from February 22 to March 1, after which those customers will be able to upgrade to MLS Season Pass through DIRECTV channels. This offering expands upon DIRECTV’s exclusive rights to provide MLS Season Pass to commercial establishments, which has been available to DIRECTV for BUSINESS’s vast network of more than 300,000 sports bars, restaurants, and more since the 2023 season.

    More Ways to Celebrate the 30th MLS Season

    • On February 21, Apple TV+ will premiere the highly anticipated eight-part panoramic documentary event Onside: Major League Soccer. Produced for Apple by the dynamic sports storytellers Box to Box Films, in partnership with Major League Soccer, the docuseries provides unprecedented access to players, coaches, and clubs, and explores the electrifying moments and captivating stories that made the 2024 season unforgettable. The first episode of Onside: Major League Soccer will be available for free to all MLS Season Pass subscribers from February 21 to March 3. Watch the official trailer.
    • The free Apple Sports app for iPhone is the best way for fans to stay up to date on scores, stats, standings, and their favorite clubs throughout the MLS season.1 Users can easily navigate between scores and upcoming games; explore play-by-play information, team stats, lineup details, and live betting odds; and tap to watch matches on MLS Season Pass in the Apple TV app.2 Apple Sports also seamlessly syncs with favorites selected within the My Sports experience, including in the Apple TV app and Apple News. With iOS 18 and watchOS 11, the Apple Sports app now offers Live Activities for all MLS matches, delivering live scores and play-by-play info at a quick glance to a user’s iPhone and Apple Watch Lock Screens.3
    • On Apple Music, fans can enjoy exclusive club- and player-curated playlists, with more music content coming throughout the season at apple.co/AM-MLS.
    • Apple Maps users can explore dedicated Matchday Guides created by MLS clubs and city guides created by players to find recommendations for local bars and restaurants to catch a game, explore city favorites, find detailed information about their stadiums, and more.
    • On Apple News, users can easily follow MLS and their favorite teams in the Sports tab and access scores, schedules, standings, and top stories from hundreds of top publishers.
    • On Apple Podcasts, users can access an MLS hub with curated podcast episodes and collections covering MLS, its clubs and players, and soccer in North America.
    • Select Apple Store locations across the U.S., Canada, and Mexico will stream live MLS matches during MLS is Back weekend.

    Subscribing to MLS Season Pass

    MLS Season Pass is available through the Apple TV app on Apple devices, smart TVs, streaming devices, set-top boxes, and game consoles, as well as on the web at tv.apple.com. Fans can also access MLS Season Pass from the Apple TV app on Apple Vision Pro, where they can watch games alongside other apps in their physical space; within an Environment, so the screen feels 100 feet wide; and in Spatial Audio for an even more immersive viewing experience.

    Fans can sign up for MLS Season Pass for $14.99 per month during the season, or $99 for the full season, and Apple TV+ subscribers can sign up at a special price of $12.99 per month, or $79 per season. A subscription to MLS Season Pass for this season will be included with each full-season MLS club ticket account. Through Family Sharing, up to six family members can share the subscription using their own Apple ID and password. For more information, and to subscribe to MLS Season Pass, visit apple.co/_MLS_.

    1. Available in the U.S., the U.K., and Canada.
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    MIL OSI Economics

  • MIL-OSI Asia-Pac: Thundery Showers On Most Days In The First Fortnight Of January 2025

    Source: Asia Pacific Region 2 – Singapore

    Singapore, 2 January 2025 – The prevailing Northeast Monsoon conditions are expected to continue in the first fortnight of January 2025, with winds blowing mainly from the northwest or northeast.

    2        Moderate to heavy thundery showers are expected over parts of the island in the afternoon on most days. The showers may extend into the night on a few days. In the last few days of the fortnight, a strengthening of high-pressure systems over the northern Asian continent may bring a surge of strong north-easterly winds (or monsoon surge[1]) over the South China Sea, and wetter conditions over Singapore and the surrounding region. The total rainfall for the first fortnight of January 2025 is forecast to be above average over most parts of the island.

    3        The daily temperatures are likely to range between 24 degrees Celsius and 33 degrees Celsius on most days. Cooler conditions are expected in the last few days of the fortnight and the daily minimum temperatures could drop to 22 degrees Celsius.

    4        For updates of the daily weather forecast, please visit the MSS website (www.weather.gov.sg), NEA website (www.nea.gov.sg), or download the myENV app.

     REVIEW OF THE PAST TWO WEEKS (16 – 31 DECEMBER 2024)

    5        Northeast Monsoon conditions prevailed over Singapore and the surrounding region in the second fortnight of December 2024. During the period, the low-level winds blew mainly from the north or northeast.

    6        Thundery showers fell over parts of Singapore on most afternoons. The showers extended into the evening on a few days. On 29 December 2024, strong solar heating of land areas coupled with regional convergence of winds brought widespread heavy thundery showers over Singapore in the afternoon. The daily total rainfall of 136.2 mm recorded at Bukit Timah that day was the highest rainfall recorded for the second fortnight of December 2024.

     7        The daily maximum temperatures in the second fortnight of December 2024 were between 32 degrees Celsius and 34 degrees Celsius on most days. The highest daily maximum temperature of 35.4 degree Celsius was recorded at Clementi on 16 December 2024.

     8        About half of the island recorded above average rainfall in the second fortnight of December 2024. Tuas registered rainfall of about 40 per cent above average, and Pasir Ris registered rainfall of about 55 per cent below average.

    [1] A monsoon surge refers to a strengthening of winds over the South China Sea, causing extensive rainclouds to form over our surrounding region. Read more at http://www.weather.gov.sg/learn_weather_systems/

    CLIMATE STATION STATISTICS

      Long-term Statistics for January
      (Climatological reference period: 1991-2020)
    Average daily maximum temperature: 30.6      °C
    Average daily minimum temperature: 24.3 °C
    Average monthly temperature: 26.8 °C
         
    Average rainfall: 221.6 mm
    Average number of rain days: 13  
     
    Historical Extremes for January
      (Rainfall since 1869 and temperature since 1929)
    Highest monthly mean daily maximum temperature: 31.8  °C (2016, 2018)
    Lowest monthly mean daily minimum temperature: 21.6  °C (1933)
         
    Highest monthly rainfall ever recorded:  818.6  mm (2006)
    Lowest monthly rainfall ever recorded: 15.4  mm (1932)

    ~~ End ~~

    For more information, please submit your enquiries electronically via the Online Feedback Form or myENV mobile application. 

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: Wet And Windy On The First Few Days Of The Coming Fortnight

    Source: Asia Pacific Region 2 – Singapore

    Singapore, 16 January 2025 – The prevailing Northeast Monsoon conditions are expected to continue in the second fortnight of January 2025, with winds blowing mainly from the northwest or northeast.

    2          Between 17 – 19 January 2025, a surge of north-easterly winds (or monsoon surge[1]) is expected over the South China Sea. This may bring windy and cooler conditions with occasional spells of moderate to heavy thundery showers over Singapore and the surrounding vicinity. For the rest of the fortnight, short-duration thundery showers are forecast in the afternoon on most days. Overall, the rainfall for the second half of January 2025 is expected to be above average over most parts of the island.

    3          Lower daily minimum temperatures of around 22 degrees Celsius can be expected in the first few days of the fortnight. Subsequently, daily temperatures are forecast to range between 24 degrees Celsius and 34 degrees Celsius on most days.

    4          For updates of the daily weather forecast, please visit the MSS website (www.weather.gov.sg), NEA website (www.nea.gov.sg), or download the myENV app.

     REVIEW OF THE PAST TWO WEEKS (1 – 15 JANUARY 2025)

    5          Northeast Monsoon conditions prevailed over Singapore and the surrounding region in the first fortnight of January 2025. During the period, the low-level winds blew mainly from the north or northeast.

    6          A strengthening of the high-pressure system over northern continental Asia brought a surge of moderate to strong northeast monsoon winds over the South China Sea on several days of January 2025. The surge brought cool and wet weather over Singapore between 10 and 13 January 2025. The daily total rainfall of 241.8mm recorded at Pulau Tekong on 10 January 2025 was the highest daily total rainfall ever recorded in January, exceeding the previous record of 238.2mm on 30 January 2011.

     7          The daily temperature in the first fortnight of January 2025 ranged from 21.6 degrees Celsius to 34.3 degrees Celsius. The highest daily maximum temperature of 34.3 degrees Celsius was recorded on 5 January 2025 at Jurong.  During the monsoon surge event between 10 and 13 January 2025, there were three days where the highest daily maximum temperature was below 28 degrees Celsius. On 11 January 2025, the highest daily maximum temperature was 25.7 degrees Celsius recorded at East Coast Parkway and the daily minimum temperature at Newton dipped to 21.6 degrees Celsius, the lowest temperature for the first fortnight of January 2025.

    8          Well-above average rainfall was received across the island in the first fortnight of January 2025. The highest anomaly of 345 per cent above average was at Kent Ridge. The anomaly was lowest at Tengah at 185 per cent above average.

    [1] A monsoon surge refers to a strengthening of winds over the South China Sea, causing extensive rainclouds to form over our surrounding region.

     

    CLIMATE STATION STATISTICS

     Long-term Statistics for January
     (Climatological reference period: 1991-2020)
    Average daily maximum temperature: 30.6      °C
    Average daily minimum temperature: 24.3 °C
    Average monthly temperature: 26.8 °C
         
    Average rainfall: 221.6 mm
    Average number of rain days: 13  
     
    Historical Extremes for January
    (Rainfall since 1869 and temperature since 1929)
    Highest monthly mean daily maximum temperature: 31.8  °C (2016, 2018)
    Lowest monthly mean daily minimum temperature: 21.6  °C (1933)
         
    Highest monthly rainfall ever recorded:  818.6  mm (2006)
    Lowest monthly rainfall ever recorded: 15.4  mm (1932)

     

    METEOROLOGICAL SERVICE SINGAPORE

    16 Jan 2025

    ~~ End ~~

    For more information, please submit your enquiries electronically via the Online Feedback Form or myENV mobile application. 

    MIL OSI Asia Pacific News

  • MIL-OSI Russia: Lean Manufacturing Technologies: GUU to Become Pilot Universities in Federal Project

    Translartion. Region: Russians Fedetion –

    Source: State University of Management – Official website of the State –

    The State University of Management held a meeting between the rector’s office and representatives of the Ministry of Science and Higher Education of the Russian Federation and the Federal Competence Center (FCC) to discuss the issue of including SUM in the list of pilot universities for the implementation of the lean manufacturing initiative.

    The State University of Management was represented by: Rector Vladimir Stroev, representatives of the rector’s office and other departments.

    The delegation of guests included: Head of the Monitoring and Statistics Department of the Department for Coordination of Activities of Educational Organizations of the Ministry of Education and Science of Russia Alena Petrenko and representatives of the Federal Center for Strategic Studies Vyacheslav Tikhomirov and Ekaterina Nikolenko.

    Rector of the State University of Management Vladimir Stroev spoke about the rich experience of interaction with ministries and implementation of joint projects.

    “GUU has a close-knit team, ready to implement solutions and maximally interested in the success of our university, especially in terms of development. We have a separate department for this issue. Moreover, many ministries are already implementing various solutions on our platform, so we are ready for this. Thus, for the Ministry of Economic Development we carry out many different tasks, including organizing foreign internships for graduates of the Presidential Program, we are also the operator of the competition “My Good Business” and much more,” shared Vladimir Vitalievich.

    Vice-Rector of the State University of Management Dmitry Bryukhanov outlined the issues proposed for discussion.

    “GUU has joined the pilot universities for the application of lean manufacturing ideology in educational institutions. Much is happening in the sphere of lean schooling, it is widely used in industry, and we are already seeing a positive effect from process optimization. For the first time, the experience of using lean technologies will be applied in university practice. The task of universities is to determine the main directions and goals for implementing this initiative,” Dmitry Yuryevich noted.

    Alena Petrenko spoke about what has already been done within the framework of the project and what plans there are for the implementation of lean technologies for this year.

    “The project will be implemented in close cooperation with the Federal Competence Center, the coordinator is the socio-center. Inter-ministerial cooperation between the Ministry of Education and Science and the Ministry of Economic Development will be implemented. The project passport and its roadmap have already been formed, pilot participating universities have been identified. By the end of the year, we must develop and implement solutions in five universities, and by the end of 2030, connect absolutely all higher education institutions subordinate to the Ministry of Education and Science to the lean manufacturing system. An important point is the rector’s interest and the university’s readiness for change,” said the head of the monitoring and statistics department of the Department for Coordination of Educational Organizations of the Ministry of Education and Science of Russia.

    Vyacheslav Tikhomirov shared details about the upcoming project.

    “The work will be carried out within the framework of the federal project “Labor Productivity”, in which a significant number of industrial enterprises are already participating, and now it will be expanded to the social sphere. How it is implemented: we examine and describe in detail the processes in the organization in order to identify losses based on lean manufacturing, i.e. those actions that take resources but do not produce an effect. Together with the university working group, we will find ways to solve them and improve the process. As a result, we will receive a collection of best practices of boxed solutions, on the basis of which all organizations will be able to find techniques to improve their own indicators,” explained the head of the department for the implementation of projects in the social sphere of the FCC.

    The participants studied the project presentation and discussed possible areas of work, after which they went on a tour of the university.

    At the end of the meeting, it was decided to create a working group to implement the project and continue interaction.

    Subscribe to the TG channel “Our GUU” Date of publication: 01/29/2025

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    MIL OSI Russia News

  • MIL-OSI Global: Why building big AIs costs billions – and how Chinese startup DeepSeek dramatically changed the calculus

    Source: The Conversation – USA – By Ambuj Tewari, Professor of Statistics, University of Michigan

    DeepSeek burst on the scene – and may be bursting some bubbles. AP Photo/Andy Wong

    State-of-the-art artificial intelligence systems like OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude have captured the public imagination by producing fluent text in multiple languages in response to user prompts. Those companies have also captured headlines with the huge sums they’ve invested to build ever more powerful models.

    An AI startup from China, DeepSeek, has upset expectations about how much money is needed to build the latest and greatest AIs. In the process, they’ve cast doubt on the billions of dollars of investment by the big AI players.

    I study machine learning. DeepSeek’s disruptive debut comes down not to any stunning technological breakthrough but to a time-honored practice: finding efficiencies. In a field that consumes vast computing resources, that has proved to be significant.

    Where the costs are

    Developing such powerful AI systems begins with building a large language model. A large language model predicts the next word given previous words. For example, if the beginning of a sentence is “The theory of relativity was discovered by Albert,” a large language model might predict that the next word is “Einstein.” Large language models are trained to become good at such predictions in a process called pretraining.

    Pretraining requires a lot of data and computing power. The companies collect data by crawling the web and scanning books. Computing is usually powered by graphics processing units, or GPUs. Why graphics? It turns out that both computer graphics and the artificial neural networks that underlie large language models rely on the same area of mathematics known as linear algebra. Large language models internally store hundreds of billions of numbers called parameters or weights. It is these weights that are modified during pretraining.

    Large language models consume huge amounts of computing resources, which in turn means lots of energy.

    Pretraining is, however, not enough to yield a consumer product like ChatGPT. A pretrained large language model is usually not good at following human instructions. It might also not be aligned with human preferences. For example, it might output harmful or abusive language, both of which are present in text on the web.

    The pretrained model therefore usually goes through additional stages of training. One such stage is instruction tuning where the model is shown examples of human instructions and expected responses. After instruction tuning comes a stage called reinforcement learning from human feedback. In this stage, human annotators are shown multiple large language model responses to the same prompt. The annotators are then asked to point out which response they prefer.

    It is easy to see how costs add up when building an AI model: hiring top-quality AI talent, building a data center with thousands of GPUs, collecting data for pretraining, and running pretraining on GPUs. Additionally, there are costs involved in data collection and computation in the instruction tuning and reinforcement learning from human feedback stages.

    All included, costs for building a cutting edge AI model can soar up to US$100 million. GPU training is a significant component of the total cost.

    The expenditure does not stop when the model is ready. When the model is deployed and responds to user prompts, it uses more computation known as test time or inference time compute. Test time compute also needs GPUs. In December 2024, OpenAI announced a new phenomenon they saw with their latest model o1: as test time compute increased, the model got better at logical reasoning tasks such as math olympiad and competitive coding problems.

    Slimming down resource consumption

    Thus it seemed that the path to building the best AI models in the world was to invest in more computation during both training and inference. But then DeepSeek entered the fray and bucked this trend.

    DeepSeek sent shockwaves through the tech financial ecosystem.

    Their V-series models, culminating in the V3 model, used a series of optimizations to make training cutting edge AI models significantly more economical. Their technical report states that it took them less than $6 million dollars to train V3. They admit that this cost does not include costs of hiring the team, doing the research, trying out various ideas and data collection. But $6 million is still an impressively small figure for training a model that rivals leading AI models developed with much higher costs.

    The reduction in costs was not due to a single magic bullet. It was a combination of many smart engineering choices including using fewer bits to represent model weights, innovation in the neural network architecture, and reducing communication overhead as data is passed around between GPUs.

    It is interesting to note that due to U.S. export restrictions on China, the DeepSeek team did not have access to high performance GPUs like the Nvidia H100. Instead they used Nvidia H800 GPUs, which Nvidia designed to be lower performance so that they comply with U.S. export restrictions. Working with this limitation seems to have unleashed even more ingenuity from the DeepSeek team.

    DeepSeek also innovated to make inference cheaper, reducing the cost of running the model. Moreover, they released a model called R1 that is comparable to OpenAI’s o1 model on reasoning tasks.

    They released all the model weights for V3 and R1 publicly. Anyone can download and further improve or customize their models. Furthermore, DeepSeek released their models under the permissive MIT license, which allows others to use the models for personal, academic or commercial purposes with minimal restrictions.

    Resetting expectations

    DeepSeek has fundamentally altered the landscape of large AI models. An open weights model trained economically is now on par with more expensive and closed models that require paid subscription plans.

    The research community and the stock market will need some time to adjust to this new reality.

    Ambuj Tewari receives funding from NSF and NIH.

    ref. Why building big AIs costs billions – and how Chinese startup DeepSeek dramatically changed the calculus – https://theconversation.com/why-building-big-ais-costs-billions-and-how-chinese-startup-deepseek-dramatically-changed-the-calculus-248431

    MIL OSI – Global Reports

  • MIL-OSI Global: Fake papers are contaminating the world’s scientific literature, fueling a corrupt industry and slowing legitimate lifesaving medical research

    Source: The Conversation – USA – By Frederik Joelving, Contributing editor, Retraction Watch

    Assistant professor Frank Cackowski, left, and researcher Steven Zielske at Wayne State University in Detroit became suspicious of a paper on cancer research that was eventually retracted. Amy Sacka, CC BY-ND

    Over the past decade, furtive commercial entities around the world have industrialized the production, sale and dissemination of bogus scholarly research, undermining the literature that everyone from doctors to engineers rely on to make decisions about human lives.

    It is exceedingly difficult to get a handle on exactly how big the problem is. Around 55,000 scholarly papers have been retracted to date, for a variety of reasons, but scientists and companies who screen the scientific literature for telltale signs of fraud estimate that there are many more fake papers circulating – possibly as many as several hundred thousand. This fake research can confound legitimate researchers who must wade through dense equations, evidence, images and methodologies only to find that they were made up.

    Even when the bogus papers are spotted – usually by amateur sleuths on their own time – academic journals are often slow to retract the papers, allowing the articles to taint what many consider sacrosanct: the vast global library of scholarly work that introduces new ideas, reviews other research and discusses findings.

    These fake papers are slowing down research that has helped millions of people with lifesaving medicine and therapies from cancer to COVID-19. Analysts’ data shows that fields related to cancer and medicine are particularly hard hit, while areas like philosophy and art are less affected. Some scientists have abandoned their life’s work because they cannot keep pace given the number of fake papers they must bat down.

    The problem reflects a worldwide commodification of science. Universities, and their research funders, have long used regular publication in academic journals as requirements for promotions and job security, spawning the mantra “publish or perish.”

    But now, fraudsters have infiltrated the academic publishing industry to prioritize profits over scholarship. Equipped with technological prowess, agility and vast networks of corrupt researchers, they are churning out papers on everything from obscure genes to artificial intelligence in medicine.

    These papers are absorbed into the worldwide library of research faster than they can be weeded out. About 119,000 scholarly journal articles and conference papers are published globally every week, or more than 6 million a year. Publishers estimate that, at most journals, about 2% of the papers submitted – but not necessarily published – are likely fake, although this number can be much higher at some publications.

    While no country is immune to this practice, it is particularly pronounced in emerging economies where resources to do bona fide science are limited – and where governments, eager to compete on a global scale, push particularly strong “publish or perish” incentives.

    As a result, there is a bustling online underground economy for all things scholarly publishing. Authorship, citations, even academic journal editors, are up for sale. This fraud is so prevalent that it has its own name: paper mills, a phrase that harks back to “term-paper mills”, where students cheat by getting someone else to write a class paper for them.

    The impact on publishers is profound. In high-profile cases, fake articles can hurt a journal’s bottom line. Important scientific indexes – databases of academic publications that many researchers rely on to do their work – may delist journals that publish too many compromised papers. There is growing criticism that legitimate publishers could do more to track and blacklist journals and authors who regularly publish fake papers that are sometimes little more than artificial intelligence-generated phrases strung together.

    To better understand the scope, ramifications and potential solutions of this metastasizing assault on science, we – a contributing editor at Retraction Watch, a website that reports on retractions of scientific papers and related topics, and two computer scientists at France’s Université Toulouse III–Paul Sabatier and Université Grenoble Alpes who specialize in detecting bogus publications – spent six months investigating paper mills.

    This included, by some of us at different times, trawling websites and social media posts, interviewing publishers, editors, research-integrity experts, scientists, doctors, sociologists and scientific sleuths engaged in the Sisyphean task of cleaning up the literature. It also involved, by some of us, screening scientific articles looking for signs of fakery.

    Problematic Paper Screener: Trawling for fraud in the scientific literature

    What emerged is a deep-rooted crisis that has many researchers and policymakers calling for a new way for universities and many governments to evaluate and reward academics and health professionals across the globe.

    Just as highly biased websites dressed up to look like objective reporting are gnawing away at evidence-based journalism and threatening elections, fake science is grinding down the knowledge base on which modern society rests.

    As part of our work detecting these bogus publications, co-author Guillaume Cabanac developed the Problematic Paper Screener, which filters 130 million new and old scholarly papers every week looking for nine types of clues that a paper might be fake or contain errors. A key clue is a tortured phrase – an awkward wording generated by software that replaces common scientific terms with synonyms to avoid direct plagiarism from a legitimate paper.

    Problematic Paper Screener: Trawling for fraud in the scientific literature

    An obscure molecule

    Frank Cackowski at Detroit’s Wayne State University was confused.

    The oncologist was studying a sequence of chemical reactions in cells to see if they could be a target for drugs against prostate cancer. A paper from 2018 from 2018 in the American Journal of Cancer Research piqued his interest when he read that a little-known molecule called SNHG1 might interact with the chemical reactions he was exploring. He and fellow Wayne State researcher Steven Zielske began a series of experiments to learn more about the link. Surprisingly, they found there wasn’t a link.

    Meanwhile, Zielske had grown suspicious of the paper. Two graphs showing results for different cell lines were identical, he noticed, which “would be like pouring water into two glasses with your eyes closed and the levels coming out exactly the same.” Another graph and a table in the article also inexplicably contained identical data.

    Zielske described his misgivings in an anonymous post in 2020 at PubPeer, an online forum where many scientists report potential research misconduct, and also contacted the journal’s editor. Shortly thereafter, the journal pulled the paper, citing “falsified materials and/or data.”

    “Science is hard enough as it is if people are actually being genuine and trying to do real work,” says Cackowski, who also works at the Karmanos Cancer Institute in Michigan. “And it’s just really frustrating to waste your time based on somebody’s fraudulent publications.”

    Wayne State scientists Frank Cackowski and Steven Zielske carried out experiments based on a paper they later found to contain false data.
    Amy Sacka, CC BY-ND

    He worries that the bogus publications are slowing down “legitimate research that down the road is going to impact patient care and drug development.”

    The two researchers eventually found that SNHG1 did appear to play a part in prostate cancer, though not in the way the suspect paper suggested. But it was a tough topic to study. Zielske combed through all the studies on SNHG1 and cancer – some 150 papers, nearly all from Chinese hospitals – and concluded that “a majority” of them looked fake. Some reported using experimental reagents known as primers that were “just gibberish,” for instance, or targeted a different gene than what the study said, according to Zielske. He contacted several of the journals, he said, but received little response. “I just stopped following up.”

    The many questionable articles also made it harder to get funding, Zielske said. The first time he submitted a grant application to study SNHG1, it was rejected, with one reviewer saying “the field was crowded,” Zielske recalled. The following year, he explained in his application how most of the literature likely came from paper mills. He got the grant.

    Today, Zielske said, he approaches new research differently than he used to: “You can’t just read an abstract and have any faith in it. I kind of assume everything’s wrong.”

    Legitimate academic journals evaluate papers before they are published by having other researchers in the field carefully read them over. This peer review process is designed to stop flawed research from being disseminated, but is far from perfect.

    Reviewers volunteer their time, typically assume research is real and so don’t look for signs of fraud. And some publishers may try to pick reviewers they deem more likely to accept papers, because rejecting a manuscript can mean losing out on thousands of dollars in publication fees.

    “Even good, honest reviewers have become apathetic” because of “the volume of poor research coming through the system,” said Adam Day, who directs Clear Skies, a company in London that develops data-based methods to help spot falsified papers and academic journals. “Any editor can recount seeing reports where it’s obvious the reviewer hasn’t read the paper.”

    With AI, they don’t have to: New research shows that many reviews are now written by ChatGPT and similar tools.

    To expedite the publication of one another’s work, some corrupt scientists form peer review rings. Paper mills may even create fake peer reviewers impersonating real scientists to ensure their manuscripts make it through to publication. Others bribe editors or plant agents on journal editorial boards.

    María de los Ángeles Oviedo-García, a professor of marketing at the University of Seville in Spain, spends her spare time hunting for suspect peer reviews from all areas of science, hundreds of which she has flagged on PubPeer. Some of these reviews are the length of a tweet, others ask authors to cite the reviewer’s work even if it has nothing to do with the science at hand, and many closely resemble other peer reviews for very different studies – evidence, in her eyes, of what she calls “review mills.”

    PubPeer comment from María de los Ángeles Oviedo-García pointing out that a peer review report is very similar to two other reports. She also points out that authors and citations for all three are either anonymous or the same person – both hallmarks of fake papers.
    Screen capture by The Conversation, CC BY-ND

    “One of the demanding fights for me is to keep faith in science,” says Oviedo-García, who tells her students to look up papers on PubPeer before relying on them too heavily. Her research has been slowed down, she adds, because she now feels compelled to look for peer review reports for studies she uses in her work. Often there aren’t any, because “very few journals publish those review reports,” Oviedo-García says.

    An ‘absolutely huge’ problem

    It is unclear when paper mills began to operate at scale. The earliest article retracted due to suspected involvement of such agencies was published in 2004, according to the Retraction Watch Database, which contains details about tens of thousands of retractions. (The database is operated by The Center for Scientific Integrity, the parent nonprofit of Retraction Watch.) Nor is it clear exactly how many low-quality, plagiarized or made-up articles paper mills have spawned.

    But the number is likely to be significant and growing, experts say. One Russia-linked paper mill in Latvia, for instance, claims on its website to have published “more than 12,650 articles” since 2012.

    An analysis of 53,000 papers submitted to six publishers – but not necessarily published – found the proportion of suspect papers ranged from 2% to 46% across journals. And the American publisher Wiley, which has retracted more than 11,300 compromised articles and closed 19 heavily affected journals in its erstwhile Hindawi division, recently said its new paper-mill detection tool flags up to 1 in 7 submissions.

    Day, of Clear Skies, estimates that as many as 2% of the several million scientific works published in 2022 were milled. Some fields are more problematic than others. The number is closer to 3% in biology and medicine, and in some subfields, like cancer, it may be much larger, according to Day. Despite increased awareness today, “I do not see any significant change in the trend,” he said. With improved methods of detection, “any estimate I put out now will be higher.”

    The paper-mill problem is “absolutely huge,” said Sabina Alam, director of Publishing Ethics and Integrity at Taylor & Francis, a major academic publisher. In 2019, none of the 175 ethics cases that editors escalated to her team was about paper mills, Alam said. Ethics cases include submissions and already published papers. In 2023, “we had almost 4,000 cases,” she said. “And half of those were paper mills.”

    Jennifer Byrne, an Australian scientist who now heads up a research group to improve the reliability of medical research, submitted testimony for a hearing of the U.S. House of Representatives’ Committee on Science, Space, and Technology in July 2022. She noted that 700, or nearly 6%, of 12,000 cancer research papers screened had errors that could signal paper mill involvement. Byrne shuttered her cancer research lab in 2017 because the genes she had spent two decades researching and writing about became the target of an enormous number of fake papers. A rogue scientist fudging data is one thing, she said, but a paper mill could churn out dozens of fake studies in the time it took her team to publish a single legitimate one.

    “The threat of paper mills to scientific publishing and integrity has no parallel over my 30-year scientific career …. In the field of human gene science alone, the number of potentially fraudulent articles could exceed 100,000 original papers,” she wrote to lawmakers, adding, “This estimate may seem shocking but is likely to be conservative.”

    In one area of genetics research – the study of noncoding RNA in different types of cancer – “We’re talking about more than 50% of papers published are from mills,” Byrne said. “It’s like swimming in garbage.”

    In 2022, Byrne and colleagues, including two of us, found that suspect genetics research, despite not having an immediate impact on patient care, still informs the work of other scientists, including those running clinical trials. Publishers, however, are often slow to retract tainted papers, even when alerted to obvious signs of fraud. We found that 97% of the 712 problematic genetics research articles we identified remained uncorrected within the literature.

    When retractions do happen, it is often thanks to the efforts of a small international community of amateur sleuths like Oviedo-García and those who post on PubPeer.

    Jillian Goldfarb, an associate professor of chemical and biomolecular engineering at Cornell University and a former editor of the Elsevier journal Fuel, laments the publisher’s handling of the threat from paper mills.

    “I was assessing upwards of 50 papers every day,” she said in an email interview. While she had technology to detect plagiarism, duplicate submissions and suspicious author changes, it was not enough. “It’s unreasonable to think that an editor – for whom this is not usually their full-time job – can catch these things reading 50 papers at a time. The time crunch, plus pressure from publishers to increase submission rates and citations and decrease review time, puts editors in an impossible situation.”

    In October 2023, Goldfarb resigned from her position as editor of Fuel. In a LinkedIn post about her decision, she cited the company’s failure to move on dozens of potential paper-mill articles she had flagged; its hiring of a principal editor who reportedly “engaged in paper and citation milling”; and its proposal of candidates for editorial positions “with longer PubPeer profiles and more retractions than most people have articles on their CVs, and whose names appear as authors on papers-for-sale websites.”

    “This tells me, our community, and the public, that they value article quantity and profit over science,” Goldfarb wrote.

    In response to questions about Goldfarb’s resignation, an Elsevier spokesperson told The Conversation that it “takes all claims about research misconduct in our journals very seriously” and is investigating Goldfarb’s claims. The spokesperson added that Fuel’s editorial team has “been working to make other changes to the journal to benefit authors and readers.”

    That’s not how it works, buddy

    Business proposals had been piling up for years in the inbox of João de Deus Barreto Segundo, managing editor of six journals published by the Bahia School of Medicine and Public Health in Salvador, Brazil. Several came from suspect publishers on the prowl for new journals to add to their portfolios. Others came from academics suggesting fishy deals or offering bribes to publish their paper.

    In one email from February 2024, an assistant professor of economics in Poland explained that he ran a company that worked with European universities. “Would you be interested in collaboration on the publication of scientific articles by scientists who collaborate with me?” Artur Borcuch inquired. “We will then discuss possible details and financial conditions.”

    A university administrator in Iraq was more candid: “As an incentive, I am prepared to offer a grant of $500 for each accepted paper submitted to your esteemed journal,” wrote Ahmed Alkhayyat, head of the Islamic University Centre for Scientific Research, in Najaf, and manager of the school’s “world ranking.”

    “That’s not how it works, buddy,” Barreto Segundo shot back.

    In email to The Conversation, Borcuch denied any improper intent. “My role is to mediate in the technical and procedural aspects of publishing an article,” Borcuch said, adding that, when working with multiple scientists, he would “request a discount from the editorial office on their behalf.” Informed that the Brazilian publisher had no publication fees, Borcuch said a “mistake” had occurred because an “employee” sent the email for him “to different journals.”

    Academic journals have different payment models. Many are subscription-based and don’t charge authors for publishing, but have hefty fees for reading articles. Libraries and universities also pay large sums for access.

    A fast-growing open-access model – where anyone can read the paper – includes expensive publication fees levied on authors to make up for the loss of revenue in selling the articles. These payments are not meant to influence whether or not a manuscript is accepted.

    The Bahia School of Medicine and Public Health, among others, doesn’t charge authors or readers, but Barreto Segundo’s employer is a small player in the scholarly publishing business, which brings in close to $30 billion a year on profit margins as high as 40%. Academic publishers make money largely from subscription fees from institutions like libraries and universities, individual payments to access paywalled articles, and open-access fees paid by authors to ensure their articles are free for anyone to read.

    The industry is lucrative enough that it has attracted unscrupulous actors eager to find a way to siphon off some of that revenue.

    Ahmed Torad, a lecturer at Kafr El Sheikh University in Egypt and editor-in-chief of the Egyptian Journal of Physiotherapy, asked for a 30% kickback for every article he passed along to the Brazilian publisher. “This commission will be calculated based on the publication fees generated by the manuscripts I submit,” Torad wrote, noting that he specialized “in connecting researchers and authors with suitable journals for publication.”

    Excerpt from Ahmed Torad’s email suggesting a kickback.
    Screenshot by The Conversation, CC BY-ND

    Apparently, he failed to notice that Bahia School of Medicine and Public Health doesn’t charge author fees.

    Like Borcuch, Alkhayyat denied any improper intent. He said there had been a “misunderstanding” on the editor’s part, explaining that the payment he offered was meant to cover presumed article-processing charges. “Some journals ask for money. So this is normal,” Alkhayyat said.

    Torad explained that he had sent his offer to source papers in exchange for a commission to some 280 journals, but had not forced anyone to accept the manuscripts. Some had balked at his proposition, he said, despite regularly charging authors thousands of dollars to publish. He suggested that the scientific community wasn’t comfortable admitting that scholarly publishing has become a business like any other, even if it’s “obvious to many scientists.”

    The unwelcome advances all targeted one of the journals Barreto Segundo managed, The Journal of Physiotherapy Research, soon after it was indexed in Scopus, a database of abstracts and citations owned by the publisher Elsevier.

    Along with Clarivate’s Web of Science, Scopus has become an important quality stamp for scholarly publications globally. Articles in indexed journals are money in the bank for their authors: They help secure jobs, promotions, funding and, in some countries, even trigger cash rewards. For academics or physicians in poorer countries, they can be a ticket to the global north.

    Consider Egypt, a country plagued by dubious clinical trials. Universities there commonly pay employees large sums for international publications, with the amount depending on the journal’s impact factor. A similar incentive structure is hardwired into national regulations: To earn the rank of full professor, for example, candidates must have at least five publications in two years, according to Egypt’s Supreme Council of Universities. Studies in journals indexed in Scopus or Web of Science not only receive extra points, but they also are exempt from further scrutiny when applicants are evaluated. The higher a publication’s impact factor, the more points the studies get.

    With such a focus on metrics, it has become common for Egyptian researchers to cut corners, according to a physician in Cairo who requested anonymity for fear of retaliation. Authorship is frequently gifted to colleagues who then return the favor later, or studies may be created out of whole cloth. Sometimes an existing legitimate paper is chosen from the literature, and key details such as the type of disease or surgery are then changed and the numbers slightly modified, the source explained.

    It affects clinical guidelines and medical care, “so it’s a shame,” the physician said.

    Ivermectin, a drug used to treat parasites in animals and humans, is a case in point. When some studies showed that it was effective against COVID-19, ivermectin was hailed as a “miracle drug” early in the pandemic. Prescriptions surged, and along with them calls to U.S. poison centers; one man spent nine days in the hospital after downing an injectable formulation of the drug that was meant for cattle, according to the Centers for Disease Control and Prevention. As it turned out, nearly all of the research that showed a positive effect on COVID-19 had indications of fakery, the BBC and others reported – including a now-withdrawn Egyptian study. With no apparent benefit, patients were left with just side effects.

    Research misconduct isn’t limited to emerging economies, having recently felled university presidents and top scientists at government agencies in the United States. Neither is the emphasis on publications. In Norway, for example, the government allocates funding to research institutes, hospitals and universities based on how many scholarly works employees publish, and in which journals. The country has decided to partly halt this practice starting in 2025.

    “There’s a huge academic incentive and profit motive,” says Lisa Bero, a professor of medicine and public health at the University of Colorado Anschutz Medical Campus and the senior research-integrity editor at the Cochrane Collaboration, an international nonprofit organization that produces evidence reviews about medical treatments. “I see it at every institution I’ve worked at.”

    But in the global south, the publish-or-perish edict runs up against underdeveloped research infrastructures and education systems, leaving scientists in a bind. For a Ph.D., the Cairo physician who requested anonymity conducted an entire clinical trial single-handedly – from purchasing study medication to randomizing patients, collecting and analyzing data and paying article-processing fees. In wealthier nations, entire teams work on such studies, with the tab easily running into the hundreds of thousands of dollars.

    “Research is quite challenging here,” the physician said. That’s why scientists “try to manipulate and find easier ways so they get the job done.”

    Institutions, too, have gamed the system with an eye to international rankings. In 2011, the journal Science described how prolific researchers in the United States and Europe were offered hefty payments for listing Saudi universities as secondary affiliations on papers. And in 2023, the magazine, in collaboration with Retraction Watch, uncovered a massive self-citation ploy by a top-ranked dental school in India that forced undergraduate students to publish papers referencing faculty work.

    The root – and solutions

    Such unsavory schemes can be traced back to the introduction of performance-based metrics in academia, a development driven by the New Public Management movement that swept across the Western world in the 1980s, according to Canadian sociologist of science Yves Gingras of the Université du Québec à Montréal. When universities and public institutions adopted corporate management, scientific papers became “accounting units” used to evaluate and reward scientific productivity rather than “knowledge units” advancing our insight into the world around us, Gingras wrote.

    This transformation led many researchers to compete on numbers instead of content, which made publication metrics poor measures of academic prowess. As Gingras has shown, the controversial French microbiologist Didier Raoult, who now has more than a dozen retractions to his name, has an h-index – a measure combining publication and citation numbers – that is twice as high as that of Albert Einstein – “proof that the index is absurd,” Gingras said.

    Worse, a sort of scientific inflation, or “scientometric bubble,” has ensued, with each new publication representing an increasingly small increment in knowledge. “We publish more and more superficial papers, we publish papers that have to be corrected, and we push people to do fraud,” said Gingras.

    In terms of career prospects of individual academics, too, the average value of a publication has plummeted, triggering a rise in the number of hyperprolific authors. One of the most notorious cases is Spanish chemist Rafael Luque, who in 2023 reportedly published a study every 37 hours.

    In 2024, Landon Halloran, a geoscientist at the University of Neuchâtel, in Switzerland, received an unusual job application for an opening in his lab. A researcher with a Ph.D. from China had sent him his CV. At 31, the applicant had amassed 160 publications in Scopus-indexed journals, 62 of them in 2022 alone, the same year he obtained his doctorate. Although the applicant was not the only one “with a suspiciously high output,” according to Halloran, he stuck out. “My colleagues and I have never come across anything quite like it in the geosciences,” he said.

    According to industry insiders and publishers, there is more awareness now of threats from paper mills and other bad actors. Some journals routinely check for image fraud. A bad AI-generated image showing up in a paper can either be a sign of a scientist taking an ill-advised shortcut, or a paper mill.

    The Cochrane Collaboration has a policy excluding suspect studies from its analyses of medical evidence. The organization also has been developing a tool to help its reviewers spot problematic medical trials, just as publishers have begun to screen submissions and share data and technologies among themselves to combat fraud.

    This image, generated by AI, is a visual gobbledygook of concepts around transporting and delivering drugs in the body. For instance, the upper left figure is a nonsensical mix of a syringe, an inhaler and pills. And the pH-sensitive carrier molecule on the lower left is huge, rivaling the size of the lungs. After scientist sleuths pointed out that the published image made no sense, the journal issued a correction.
    Screen capture by The Conversation, CC BY-ND
    This graphic is the corrected image that replaced the AI image above. In this case, according to the correction, the journal determined that the paper was legitimate but the scientists had used AI to generate the image describing it.
    Screen capture by The Conversation, CC BY-ND

    “People are realizing like, wow, this is happening in my field, it’s happening in your field,” said the Cochrane Collaboration’s Bero”. “So we really need to get coordinated and, you know, develop a method and a plan overall for stamping these things out.”

    What jolted Taylor & Francis into paying attention, according to Alam, the director of Publishing Ethics and Integrity, was a 2020 investigation of a Chinese paper mill by sleuth Elisabeth Bik and three of her peers who go by the pseudonyms Smut Clyde, Morty and Tiger BB8. With 76 compromised papers, the U.K.-based company’s Artificial Cells, Nanomedicine, and Biotechnology was the most affected journal identified in the probe.

    “It opened up a minefield,” says Alam, who also co-chairs United2Act, a project launched in 2023 that brings together publishers, researchers and sleuths in the fight against paper mills. “It was the first time we realized that stock images essentially were being used to represent experiments.”

    Taylor & Francis decided to audit the hundreds of articles in its portfolio that contained similar types of images. It doubled Alam’s team, which now has 14.5 positions dedicated to doing investigations, and also began monitoring submission rates. Paper mills, it seemed, weren’t picky customers.

    “What they’re trying to do is find a gate, and if they get in, then they just start kind of slamming in the submissions,” Alam said. Seventy-six fake papers suddenly seemed like a drop in the ocean. At one Taylor & Francis journal, for instance, Alam’s team identified nearly 1,000 manuscripts that bore all the marks of coming from a mill, she said.

    And in 2023, it rejected about 300 dodgy proposals for special issues. “We’ve blocked a hell of a lot from coming through,” Alam said.

    Fraud checkers

    A small industry of technology startups has sprung up to help publishers, researchers and institutions spot potential fraud. The website Argos, launched in September 2024 by Scitility, an alert service based in Sparks, Nevada, allows authors to check if new collaborators are trailed by retractions or misconduct concerns. It has flagged tens of thousands of “high-risk” papers, according to the journal Nature.

    Fraud-checker tools sift through papers to point to those that should be manually checked and possibly rejected.
    solidcolours/iStock via Getty Images

    Morressier, a scientific conference and communications company based in Berlin, “aims to restore trust in science by improving the way scientific research is published”, according to its website. It offers integrity tools that target the entire research life cycle. Other new paper-checking tools include Signals, by London-based Research Signals, and Clear Skies’ Papermill Alarm.

    The fraudsters have not been idle, either. In 2022, when Clear Skies released the Papermill Alarm, the first academic to inquire about the new tool was a paper miller, according to Day. The person wanted access so he could check his papers before firing them off to publishers, Day said. “Paper mills have proven to be adaptive and also quite quick off the mark.”

    Given the ongoing arms race, Alam acknowledges that the fight against paper mills won’t be won as long as the booming demand for their products remains.

    According to a Nature analysis, the retraction rate tripled from 2012 to 2022 to close to .02%, or around 1 in 5,000 papers. It then nearly doubled in 2023, in large part because of Wiley’s Hindawi debacle. Today’s commercial publishing is part of the problem, Byrne said. For one, cleaning up the literature is a vast and expensive undertaking with no direct financial upside. “Journals and publishers will never, at the moment, be able to correct the literature at the scale and in the timeliness that’s required to solve the paper-mill problem,” Byrne said. “Either we have to monetize corrections such that publishers are paid for their work, or forget the publishers and do it ourselves.”

    But that still wouldn’t fix the fundamental bias built into for-profit publishing: Journals don’t get paid for rejecting papers. “We pay them for accepting papers,” said Bodo Stern, a former editor of the journal Cell and chief of Strategic Initiatives at Howard Hughes Medical Institute, a nonprofit research organization and major funder in Chevy Chase, Maryland. “I mean, what do you think journals are going to do? They’re going to accept papers.”

    With more than 50,000 journals on the market, even if some are trying hard to get it right, bad papers that are shopped around long enough eventually find a home, Stern added. “That system cannot function as a quality-control mechanism,” he said. “We have so many journals that everything can get published.”

    In Stern’s view, the way to go is to stop paying journals for accepting papers and begin looking at them as public utilities that serve a greater good. “We should pay for transparent and rigorous quality-control mechanisms,” he said.

    Peer review, meanwhile, “should be recognized as a true scholarly product, just like the original article, because the authors of the article and the peer reviewers are using the same skills,” Stern said. By the same token, journals should make all peer-review reports publicly available, even for manuscripts they turn down. “When they do quality control, they can’t just reject the paper and then let it be published somewhere else,” Stern said. “That’s not a good service.”

    Better measures

    Stern isn’t the first scientist to bemoan the excessive focus on bibliometrics. “We need less research, better research, and research done for the right reasons,” wrote the late statistician Douglas G. Altman in a much-cited editorial from 1994. “Abandoning using the number of publications as a measure of ability would be a start.”

    Nearly two decades later, a group of some 150 scientists and 75 science organizations released the San Francisco Declaration on Research Assessment, or DORA, discouraging the use of the journal impact factor and other measures as proxies for quality. The 2013 declaration has since been signed by more than 25,000 individuals and organizations in 165 countries.

    Despite the declaration, metrics remain in wide use today, and scientists say there is a new sense of urgency.

    “We’re getting to the point where people really do feel they have to do something” because of the vast number of fake papers, said Richard Sever, assistant director of Cold Spring Harbor Laboratory Press, in New York, and co-founder of the preprint servers bioRxiv and medRxiv.

    Stern and his colleagues have tried to make improvements at their institution. Researchers who wish to renew their seven-year contract have long been required to write a short paragraph describing the importance of their major results. Since the end of 2023, they also have been asked to remove journal names from their applications.

    That way, “you can never do what all reviewers do – I’ve done it – look at the bibliography and in just one second decide, ‘Oh, this person has been productive because they have published many papers and they’re published in the right journals,’” says Stern. “What matters is, did it really make a difference?”

    Shifting the focus away from convenient performance metrics seems possible not just for wealthy private institutions like Howard Hughes Medical Institute, but also for large government funders. In Australia, for example, the National Health and Medical Research Council in 2022 launched the “top 10 in 10” policy, aiming, in part, to “value research quality rather than quantity of publications.”

    Rather than providing their entire bibliography, the agency, which assesses thousands of grant applications every year, asked researchers to list no more than 10 publications from the past decade and explain the contribution each had made to science. According to an evaluation report from April, 2024 close to three-quarters of grant reviewers said the new policy allowed them to concentrate more on research quality than quantity. And more than half said it reduced the time they spent on each application.

    Gingras, the Canadian sociologist, advocates giving scientists the time they need to produce work that matters, rather than a gushing stream of publications. He is a signatory to the Slow Science Manifesto: “Once you get slow science, I can predict that the number of corrigenda, the number of retractions, will go down,” he says.

    At one point, Gingras was involved in evaluating a research organization whose mission was to improve workplace security. An employee presented his work. “He had a sentence I will never forget,” Gingras recalls. The employee began by saying, “‘You know, I’m proud of one thing: My h-index is zero.’ And it was brilliant.” The scientist had developed a technology that prevented fatal falls among construction workers. “He said, ‘That’s useful, and that’s my job.’ I said, ‘Bravo!’”

    Learn more about how the Problematic Paper Screener uncovers compromised papers.

    Labbé receives funding from the European Research Council.
    He has also received funding from the French National Research Agency (ANR), and the U.S. Office of Research Integrity.
    Labbé has been in touch with most of the major publishers and their integrity officers, offering pro-bono consulting regarding detection tools to various actors in the field including STM-Hub and Morressier.

    Cabanac receives funding from the European Research Council (ERC) and the Institut Universitaire de France (IUF). He is the administrator of the Problematic Paper Screener, a public platform that uses metadata from Digital Science and PubPeer via no-cost agreements. Cabanac has been in touch with most of the major publishers and their integrity officers, offering pro bono consulting regarding detection tools to various actors in the field including ClearSkies, Morressier, River Valley, Signals, and STM.

    Frederik Joelving does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Fake papers are contaminating the world’s scientific literature, fueling a corrupt industry and slowing legitimate lifesaving medical research – https://theconversation.com/fake-papers-are-contaminating-the-worlds-scientific-literature-fueling-a-corrupt-industry-and-slowing-legitimate-lifesaving-medical-research-246224

    MIL OSI – Global Reports

  • MIL-OSI: Hanover Bancorp, Inc. Reports 2024 Full Year And Fourth Quarter Results Highlighted by Fourth Quarter Robust Margin Expansion and Record Non-interest Income

    Source: GlobeNewswire (MIL-OSI)

    Fourth Quarter Performance Highlights

    • Net Income: Net income for the quarter ended December 31, 2024 totaled $3.9 million or $0.52 per diluted share (including Series A preferred shares).
    • Record Non-interest Income: The Company reported record non-interest income of $4.2 million for the quarter ended December 31, 2024, an increase of $0.2 million or 5.89% from the quarter ended September 30, 2024 and $0.9 million or 28.67% from the quarter ended December 31, 2023.
    • Net Interest Income: Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $0.7 million or 5.39% from the quarter ended September 30, 2024 and $1.1 million, or 9.08% from the quarter ended December 31, 2023.
    • Net Interest Margin: The Company’s net interest margin during the quarter ended December 31, 2024 increased to 2.53% from 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023.
    • Strong Liquidity Position: At December 31, 2024, undrawn liquidity sources, which include cash and unencumbered securities and secured and unsecured funding capacity, totaled $713.1 million, or approximately 283% of uninsured deposit balances.
    • Deposit Activity: Core deposits, consisting of Demand, NOW, Savings and Money Market, increased $3.1 million or 0.84% annualized from September 30, 2024 and $74.1 million or 5.36% from December 31, 2023. Demand deposits increased $5.3 million or 10.33% annualized from September 30, 2024 and $3.9 million or 1.86% from December 31, 2023. Total deposits increased $49.7 million or 2.61% from December 31, 2023. Insured and collateralized deposits, which include municipal deposits, accounted for approximately 87% of total deposits at December 31, 2024.
    • Loan Diversification Strategy: The continued success in loan diversification resulted in C&I loans increasing by $61.0 million, or 56.52%, year over year, increasing to 8.51% of total loans at December 31, 2024. In addition, the commercial real estate concentration ratio improved, declining from 432% of capital at December 31, 2023 to 385% of capital at December 31, 2024. The Company continues to focus loan growth primarily in residential loan products originated for sale to specific buyers in the secondary market, C&I and SBA loans, which strategically enhances our management of liquidity and capital while producing additional non-interest income.
    • Asset Quality: At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million, representing 0.82% of the total loan portfolio, while the allowance for credit losses was 1.15% of total loans. Loans secured by office space accounted for 2.45% of the total loan portfolio with a total balance of $48.7 million, of which less than 1% is located in Manhattan.
    • Banking Initiatives: At December 31, 2024, the Company’s banking initiatives reflected continuing momentum:
      • SBA & USDA Banking: Gains on sale of SBA loans totaled $2.5 million for the quarter ended December 31, 2024, representing a 9.76% increase over the comparable 2023 quarter. Total SBA loans sold were $30.9 million for the quarter ended December 31, 2024, representing a 3.98% increase over the comparable 2023 quarter. Premiums earned on the sale of SBA loans increased to 9.06% for the quarter ended December 31, 2024 from 8.26% for the quarter ended December 31, 2023.
      • C&I Banking/Hauppauge Business Banking Center: The C&I Banking Team and the Hauppauge Business Banking Center increased deposits to $96.4 million as of December 31, 2024 from $44.9 million at December 31, 2023. This growth has continued since year end, with these deposits reaching $104 million at January 27, 2025. Loan originations tied to this office were $33.5 million during the fourth quarter of 2024 and $88.4 million for the full year. Momentum continues to build with deposit and C&I loan pipelines related to this office of $43 million and $112 million, respectively.
      • Residential Lending: The Bank continues to originate loans for its portfolio and for sale in the secondary market under its recently developed flow origination program. Of the $26.1 million in closed loans originated in the quarter ended December 31, 2024, $11.7 million were originated for the Bank’s portfolio and reflected a weighted average yield of 6.88% before origination and other fees, which average 50-100 bps per loan, and a weighted average LTV of 62%. The remaining $14.4 million of closed loans were originated for sale in the secondary market. Under this program, the Bank produced total gains of $0.5 million and a resulting premium of 2.42% in the fourth quarter of 2024.
    • Technology: The Company expects to complete a core processing system conversion from its existing provider to FIS Horizon on or about February 15, 2025. This conversion is expected to deliver immediate and tangible benefits to the Bank’s operations and customers, offering material improvements in user interfaces, functionality and efficiency that will better support our commitment to a digital forward future on better financial terms.
    • Tangible Book Value Per Share: Tangible book value per share (including Series A preferred shares) was $23.86 at December 31, 2024, an increase of 9.97% annualized from $23.28 at September 30, 2024 and 6.00% from $22.51 at December 31, 2023.
    • Quarterly Cash Dividend: The Company’s Board of Directors approved a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    MINEOLA, N.Y., Jan. 29, 2025 (GLOBE NEWSWIRE) — Hanover Bancorp, Inc. (“Hanover” or “the Company” – NASDAQ: HNVR), the holding company for Hanover Community Bank (“the Bank”), today reported results for the quarter and year ended December 31, 2024 and the declaration of a $0.10 per share cash dividend on both common and Series A preferred shares payable on February 19, 2025 to stockholders of record on February 12, 2025.

    Earnings Summary for the Quarter Ended December 31, 2024

    The Company reported net income for the quarter ended December 31, 2024 of $3.9 million or $0.52 per diluted share (including Series A preferred shares), versus $3.8 million or $0.51 per diluted share (including Series A preferred shares) in the quarter ended December 31, 2023. Returns on average assets, average stockholders’ equity and average tangible equity were 0.70%, 7.98% and 8.87%, respectively, for the quarter ended December 31, 2024, versus 0.69%, 8.10% and 9.06%, respectively, for the comparable quarter of 2023.

    While net interest income and non-interest income increased during the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023, these gains were partially offset by an increase in non-interest expenses, particularly compensation and benefits. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income. This increase is reflective of the strengthening of secondary market premiums in connection with sales of SBA loans and the gains on the recently developed residential loan flow program. The increase in compensation and benefits expense in the fourth quarter of 2024 versus the comparable 2023 quarter was primarily related to lower deferred loan origination costs that were offset by lower incentive compensation expense resulting from reduced lending activity.

    Net interest income was $13.8 million for the quarter ended December 31, 2024, an increase of $1.1 million, or 9.08%, versus the comparable 2023 quarter due to improvement of the Company’s net interest margin to 2.53% in the 2024 quarter from 2.40% in the comparable 2023 quarter. The yield on interest earning assets increased to 6.06% in the 2024 quarter from 5.91% in the comparable 2023 quarter, an increase of 15 basis points that was partially offset by a 5 basis point increase in the cost of interest-bearing liabilities to 4.24% in 2024 from 4.19% in the fourth quarter of 2023. The increase in the net interest margin was a result of the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    Earnings Summary for the Year Ended December 31, 2024

    For the year ended December 31, 2024, the Company reported net income of $12.3 million or $1.66 per diluted share (including Series A preferred shares), versus $13.6 million or $1.84 per diluted share (including Series A preferred shares) a year ago.

    The decrease in net income recorded for the year ended December 31, 2024 from the comparable 2023 period resulted from an increase in the provision for credit losses and an increase in non-interest expense, which were partially offset by an increase in non-interest income. The year-over-year increase in the provision for credit losses was primarily related to the recording of a $4.0 million provision for credit losses in the June 2024 quarter that was mainly attributable to an ACL on an individually evaluated loan of $2.5 million and $1.1 million related to ongoing enhancements to the CECL model. The increase in non-interest income is primarily related to the increases in the gain on sale of loans held-for-sale and loan servicing and fee income which were partially offset by a decrease in other operating income. In September 2023, the Company settled ongoing litigation and received a settlement payment of $975 thousand which was recorded in other operating income. The increase in non-interest expense was primarily attributed to additional staff for the SBA, C&I Banking and Operations teams. The Company’s effective tax rate decreased to 24.62% for the year ended December 31, 2024 from 25.85% in the comparable 2023 period.

    Net interest income was $53.1 million for the year ended December 31, 2024, an increase of $1.2 million, or 2.32% from the comparable 2023 period. The Company’s net interest margin was 2.44% in 2024 and 2.59% in 2023. The yield on interest earning assets increased to 6.12% in 2024 from 5.67% in 2023, an increase of 45 basis points that was offset by a 72 basis point increase in the cost of interest-bearing liabilities to 4.40% in 2024 from 3.68% in 2023 due to the rapid and significant rise in market interest rates.

    Our imminent core system conversion is expected to position us to compete more effectively across all lines of business, as customers expect greater convenience and technological capabilities, and will enable the Bank to realize operational efficiencies while maximizing our customer appeal. The substantial improvement in features and functionality expected with the conversion will be achieved on better financial terms than under our current system, enabling us to realize a material gain in performance with no adverse impact to operating expenses.

    Michael P. Puorro, Chairman and Chief Executive Officer, commented on the Company’s quarterly results: “We are pleased with fourth-quarter results. Notable increases in net interest margin, tangible book value, returns on average assets and average tangible equity complemented further improvement in our CRE concentration ratio and sound credit quality, bringing 2024 to a well-rounded conclusion. Building on this momentum, we enter 2025 with strong loan and deposit pipelines across our critical verticals, including C&I, SBA and Residential Banking and the benefit of diversified income streams. Ongoing performance will be enhanced by our pending core system conversion, which will deliver tangible operational efficiencies and customer benefits, and could be positively impacted by further Federal Open Market Committee (“FOMC”) rate decreases, an improved yield curve, a favorable banking environment and potential qualification for the Russell 2000, which would increase institutional ownership and enhance the liquidity of our stock. We continue to focus on scaling our key verticals while maintaining prudent expense management, which we believe will increase shareholder value through enhanced performance.”

    Balance Sheet Highlights

    Total assets at December 31, 2024 were $2.31 billion versus $2.27 billion at December 31, 2023. Total securities available for sale at December 31, 2024 were $83.8 million, an increase of $22.3 million from December 31, 2023, primarily driven by growth in U.S. Treasury securities, corporate bonds and mortgage-backed securities.

    Total deposits at December 31, 2024 were $1.95 billion, an increase of $49.7 million or 2.61%, compared to $1.90 billion at December 31, 2023. Our loan to deposit ratio was 102% at December 31, 2024 and 103% at December 31, 2023.

    The Company had $509.3 million in total municipal deposits at December 31, 2024, at a weighted average rate of 3.72% versus $528.1 million at a weighted average rate of 4.62% at December 31, 2023. The Company’s municipal deposit program is built on long-standing relationships developed in the local marketplace. This core deposit business will continue to provide a stable source of funding for the Company’s lending products at costs lower than those of consumer deposits and market-based borrowings. The Company continues to broaden its municipal deposit base and currently services 39 customer relationships.

    Total borrowings at December 31, 2024 were $107.8 million, with a weighted average rate and term of 4.11% and 23 months, respectively. At December 31, 2024 and 2023, the Company had $107.8 million and $126.7 million, respectively, of term FHLB advances outstanding. The Company had no FHLB overnight borrowings outstanding at December 31, 2024 and 2023. At December 31, 2024 the Company had no borrowings outstanding from the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”), while at December 31, 2023 the Company had $2.3 million in borrowings from the PPPLF. The Company had no borrowings outstanding under lines of credit with correspondent banks at December 31, 2024 and 2023.

    Stockholders’ equity was $196.6 million at December 31, 2024 compared to $184.8 million at December 31, 2023. The $11.8 million increase was primarily due to an increase of $9.4 million in retained earnings and a decrease of $1.1 million in accumulated other comprehensive loss. The increase in retained earnings was due primarily to net income of $12.3 million for the year ended December 31, 2024, which was offset by $2.9 million of dividends declared. The accumulated other comprehensive loss at December 31, 2024 was 0.68% of total equity and was comprised of a $1.0 million after tax net unrealized loss on the investment portfolio and a $0.3 million after tax net unrealized loss on derivatives.

    Loan Portfolio

    For the year ended December 31, 2024, the Bank’s loan portfolio grew to $1.99 billion, an increase of $28.3 million or 1.45%. Growth was concentrated primarily in residential, SBA and C&I loans. At December 31, 2024, the Company’s residential loan portfolio (including home equity) amounted to $729.3 million, with an average loan balance of $483 thousand and a weighted average loan-to-value ratio of 57%. Commercial real estate and multifamily loans totaled $1.09 billion at December 31, 2024, with an average loan balance of $1.5 million and a weighted average loan-to-value ratio of 59%. As will be discussed below, approximately 37% of the multifamily portfolio is subject to rent regulation. The Company’s commercial real estate concentration ratio continued to improve, decreasing to 385% of capital at December 31, 2024 from 432% of capital at December 31, 2023, with loans secured by office space accounting for 2.45% of the total loan portfolio and totaling $48.7 million. The Company’s loan pipeline with executed term sheets at December 31, 2024 is approximately $237 million, with approximately 89% being niche-residential, conventional C&I and SBA & USDA lending opportunities.

    The Bank’s investments in diversification continue to deliver results, with the volume of SBA & USDA loans originated for sale and the volume of residential loans originated for sale sustaining momentum. During the quarter ended December 31, 2024, the Company sold $19.1 million of residential loans under this program and recorded gains on sale of loans held-for-sale of $0.5 million. During the quarters ended December 31, 2024 and 2023, the Company sold approximately $30.9 million and $29.7 million, respectively, in the government guaranteed portion of SBA loans and recorded gains on sale of loans held-for-sale of $2.5 million and $2.3 million, respectively. We expect the volume of activity to increase in 2025. Because we continue to prioritize the management of liquidity and capital, new business development with respect to residential and SBA & USDA lending is largely focused on originations for sale over portfolio growth. Conversely, portfolio growth is the primary focus of our C&I Banking initiative, which continues to drive deposit and loan growth at our Hauppauge Business Banking Center and will expand with the pending launch of our Port Jefferson branch.

    Commercial Real Estate Statistics

    A significant portion of the Bank’s commercial real estate portfolio consists of loans secured by Multi-Family and CRE-Investor owned real estate that are predominantly subject to fixed interest rates for an initial period of 5 years. The Bank’s exposure to Land/Construction loans is minor at $13.5 million, all at floating interest rates, and CRE-owner occupied loans have a mix of floating rates. As shown below, 23% of the loan balances in these combined portfolios will mature in 2025 and 2026, with another 55% maturing in 2027.

    Multi-Family Market Rent Portfolio Fixed Rate Reset/Maturity Schedule   Multi-Family Stabilized Rent Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate   Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                                                     
    2025   10   $ 16,416   $ 1,642   4.30 %   2025   14   $ 19,527   $ 1,395   4.82 %
    2026   36     118,503     3,292   3.66 %   2026   20     42,901     2,145   3.67 %
    2027   71     176,490     2,486   4.30 %   2027   53     124,773     2,354   4.22 %
    2028   18     29,858     1,659   6.15 %   2028   12     10,221     852   7.14 %
    2029   6     4,957     826   7.70 %   2029   4     4,346     1,087   6.38 %
    2030+   2     639     320   4.47 %   2030+   4     1,169     292   5.41 %
    Fixed Rate   143     346,863     2,426   4.29 %   Fixed Rate   107     202,937     1,897   4.36 %
    Floating Rate   3     716     239   9.22 %   Floating Rate             %
    Total   146   $ 347,579   $ 2,381   4.30 %   Total   107   $ 202,937   $ 1,897   4.36 %
    CRE Investor Portfolio Fixed Rate Reset/Maturity Schedule
    Calendar Period   # Loans   Total O/S ($000’s omitted)   Avg O/S ($000’s omitted)   Avg Interest Rate
                           
    2025   30   $ 23,439   $ 781   6.12 %
    2026   33     44,679     1,354   4.87 %
    2027   90     163,358     1,815   5.03 %
    2028   30     31,803     1,060   6.63 %
    2029   4     2,378     595   7.03 %
    2030+   12     5,745     479   6.24 %
    Fixed Rate   199     271,402     1,364   5.33 %
    Floating Rate   10     27,103     2,710   8.95 %
    Total CRE-Inv.   209   $ 298,505   $ 1,428   5.66 %


    Rental breakdown of Multi-Family portfolio

    The table below segments our portfolio of loans secured by Multi-Family properties based on rental terms and location. As shown below, 63% of the combined portfolio is secured by properties subject to free market rental terms, which is the dominant tenant type. Both the Market Rent and Stabilized Rent segments of our portfolio present very similar average borrower profiles. The portfolio is primarily located in the New York City boroughs of Brooklyn, the Bronx and Queens.

    Multi-Family Loan Portfolio – Loans by Rent Type
    Rent Type   # of Notes   Outstanding Loan Balance   % of Total Multi-Family   Avg Loan Size   LTV   Current DSCR   Avg # of Units
            ($000’s omitted)         ($000’s omitted)              
                                         
    Market   146   $ 347,579   63 %   $ 2,381   61.6 %   1.39   11
    Location                                    
    Manhattan   7   $ 17,840   3 %   $ 2,549   51.9 %   1.62   15
    Other NYC   93   $ 244,408   44 %   $ 2,628   61.2 %   1.38   10
    Outside NYC   46   $ 85,331   16 %   $ 1,855   64.8 %   1.39   13
                                         
    Stabilized   107   $ 202,937   37 %   $ 1,897   62.4 %   1.39   12
    Location                                    
    Manhattan   6   $ 9,035   2 %   $ 1,506   44.7 %   1.59   17
    Other NYC   89   $ 174,888   32 %   $ 1,965   63.2 %   1.38   11
    Outside NYC   12   $ 19,014   3 %   $ 1,584   64.4 %   1.40   16

    Office Property Exposure

    The Bank’s exposure to the Office market is minor at $49 million. The pool has a 1.28x weighted average DSCR, a 53% weighted average LTV and less than $400,000 of exposure in Manhattan.

    Asset Quality and Allowance for Credit Losses

    At December 31, 2024, the Bank’s asset quality remained solid with non-performing loans totaling $16.4 million which represented 0.82% of total loans outstanding. Non-performing loans were $14.5 million at December 31, 2023 and $15.4 million at September 30, 2024.

    During the fourth quarter of 2024, the Bank recorded a provision for credit losses expense of $0.4 million. The December 31, 2024, allowance for credit losses balance was $22.8 million versus $19.7 million at December 31, 2023 and $23.4 million at September 30, 2024. The allowance for credit losses as a percent of total loans was 1.15% at December 31, 2024 and 1.17% at September 30, 2024, inclusive of a $3.2 million allowance on individually analyzed loans, versus 1.00% at December 31, 2023, which does not include the aforementioned $3.2 million allowance.

    Net Interest Margin

    The Bank’s net interest margin increased to 2.53% for the quarter ended December 31, 2024 compared to 2.37% in the quarter ended September 30, 2024 and 2.40% in the quarter ended December 31, 2023 due to the recent reductions in the Fed Funds effective rate and the liability sensitive nature of the Bank’s balance sheet.

    About Hanover Community Bank and Hanover Bancorp, Inc.

    Hanover Bancorp, Inc. (NASDAQ: HNVR), is the bank holding company for Hanover Community Bank, a community commercial bank focusing on highly personalized and efficient services and products responsive to client needs. Management and the Board of Directors are comprised of a select group of successful local businesspeople who are committed to the success of the Bank by knowing and understanding the metro-New York area’s financial needs and opportunities. Backed by state-of-the-art technology, Hanover offers a full range of financial services. Hanover offers a complete suite of consumer, commercial, and municipal banking products and services, including multi-family and commercial mortgages, residential loans, business loans and lines of credit. Hanover also offers its customers access to 24-hour ATM service with no fees attached, free checking with interest, telephone banking, advanced technologies in mobile and internet banking for our consumer and business customers, safe deposit boxes and much more. The Company’s corporate administrative office is located in Mineola, New York where it also operates a full-service branch office along with additional branch locations in Garden City Park, Hauppauge, Forest Hills, Flushing, Sunset Park, Rockefeller Center and Chinatown, New York, and Freehold, New Jersey, with a new branch opening in Port Jefferson, New York in the first quarter of 2025.

    Hanover Community Bank is a member of the Federal Deposit Insurance Corporation and is an Equal Housing/Equal Opportunity Lender. For further information, call (516) 548-8500 or visit the Bank’s website at www.hanoverbank.com.

    Non-GAAP Disclosure

    This discussion includes non-GAAP financial measures, including the Company’s tangible common equity (“TCE”) ratio, TCE, tangible assets, tangible book value per share, return on average tangible equity and efficiency ratio. A non-GAAP financial measure is a numerical measure of historical or future performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes that the presentation of non-GAAP financial measures provides both management and investors with a greater understanding of the Company’s operating results and trends in addition to the results measured in accordance with GAAP, and provides greater comparability across time periods. While management uses non-GAAP financial measures in its analysis of the Company’s performance, this information is not meant to be considered in isolation or as a substitute for the numbers prepared in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP. The Company’s non-GAAP financial measures may not be comparable to similarly titled measures used by other financial institutions.

    With respect to the calculations of and reconciliations of TCE, tangible assets, TCE ratio and tangible book value per share, reconciliations to the most comparable U.S. GAAP measures are provided in the tables that follow.

    Forward-Looking Statements

    This release may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the financial condition, results of operations and business of Hanover Bancorp, Inc. Any or all of the forward-looking statements in this release and in any other public statements made by Hanover Bancorp, Inc. may turn out to be incorrect. They can be affected by inaccurate assumptions that Hanover Bancorp, Inc. might make or by known or unknown risks and uncertainties, including those discussed in our Annual Report on Form 10-K under Item 1A – Risk Factors, as updated by our subsequent filings with the Securities and Exchange Commission. Further, the adverse effect of health emergencies or natural disasters on the Company, its customers, and the communities where it operates may adversely affect the Company’s business, results of operations and financial condition for an indefinite period of time. Consequently, no forward-looking statement can be guaranteed. Hanover Bancorp, Inc. does not intend to update any of the forward-looking statements after the date of this release or to conform these statements to actual events.

    Investor and Press Contact:
    Lance P. Burke
    Chief Financial Officer
    (516) 548-8500

    HANOVER BANCORP, INC.            
    STATEMENTS OF CONDITION (unaudited)            
    (dollars in thousands)            
                   
                   
        December 31,   September 30,   December 31,  
          2024       2024       2023    
    Assets              
    Cash and cash equivalents $ 162,857     $ 141,231     $ 177,207    
    Securities-available for sale, at fair value   83,755       98,359       61,419    
    Investments-held to maturity   3,758       3,828       4,041    
    Loans held for sale   12,404       16,721       8,904    
                   
    Loans, net of deferred loan fees and costs   1,985,524       2,005,813       1,957,199    
    Less: allowance for credit losses   (22,779 )     (23,406 )     (19,658 )  
    Loans, net   1,962,745       1,982,407       1,937,541    
                   
    Goodwill     19,168       19,168       19,168    
    Premises & fixed assets   15,337       16,373       15,886    
    Operating lease assets   8,337       8,776       9,754    
    Other assets   43,749       40,951       36,140    
      Assets $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    Liabilities and stockholders’ equity            
    Core deposits $ 1,456,513     $ 1,453,444     $ 1,382,397    
    Time deposits   497,770       504,100       522,198    
    Total deposits   1,954,283       1,957,544       1,904,595    
                   
    Borrowings   107,805       125,805       128,953    
    Subordinated debentures   24,689       24,675       24,635    
    Operating lease liabilities   9,025       9,472       10,459    
    Other liabilities   19,670       17,979       16,588    
      Liabilities   2,115,472       2,135,475       2,085,230    
                   
    Stockholders’ equity   196,638       192,339       184,830    
      Liabilities and stockholders’ equity $ 2,312,110     $ 2,327,814     $ 2,270,060    
                   
    HANOVER BANCORP, INC.                
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)              
    (dollars in thousands, except per share data)                
                       
        Three Months Ended   Year Ended  
        12/31/2024   12/31/2023   12/31/2024   12/31/2023  
                       
    Interest income $ 33,057   $ 31,155   $ 133,022   $ 113,626  
    Interest expense   19,249     18,496     79,930     61,739  
      Net interest income   13,808     12,659     53,092     51,887  
    Provision for credit losses   400     200     4,940     2,132  
      Net interest income after provision for credit losses   13,408     12,459     48,152     49,755  
                       
    Loan servicing and fee income   981     778     3,690     2,809  
    Service charges on deposit accounts   136     85     469     297  
    Gain on sale of loans held-for-sale   3,014     2,326     10,940     5,841  
    Gain on sale of investments   27         31      
    Other operating income   29     65     209     1,744  
      Non-interest income   4,187     3,254     15,339     10,691  
                       
    Compensation and benefits   6,699     5,242     25,600     21,562  
    Occupancy and equipment   1,810     1,746     7,222     6,628  
    Data processing   536     530     2,096     2,063  
    Professional fees   782     729     3,079     3,191  
    Federal deposit insurance premiums   375     375     1,418     1,476  
    Other operating expenses   2,198     2,048     7,697     7,200  
      Non-interest expense   12,400     10,670     47,112     42,120  
                       
      Income before income taxes   5,195     5,043     16,379     18,326  
    Income tax expense   1,293     1,280     4,033     4,737  
                       
      Net income $ 3,902   $ 3,763   $ 12,346   $ 13,589  
                       
    Earnings per share (“EPS”):(1)                
    Basic $ 0.53   $ 0.51   $ 1.67   $ 1.85  
    Diluted $ 0.52   $ 0.51   $ 1.66   $ 1.84  
                       
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,324,133     7,403,758     7,326,903  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,383,529     7,432,741     7,386,299  
                       
    (1) Calculation includes common stock and Series A preferred stock.              
    (2) Average shares outstanding before subtracting participating securities.              
                       
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                    
    CONSOLIDATED STATEMENTS OF INCOME (unaudited)                  
    QUARTERLY TREND                    
    (dollars in thousands, except per share data)                    
                           
        Three Months Ended  
        12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
                           
    Interest income $ 33,057   $ 34,113   $ 33,420   $ 32,432   $ 31,155  
    Interest expense   19,249     21,011     20,173     19,497     18,496  
      Net interest income   13,808     13,102     13,247     12,935     12,659  
    Provision for credit losses   400     200     4,040     300     200  
      Net interest income after provision for credit losses   13,408     12,902     9,207     12,635     12,459  
                           
    Loan servicing and fee income   981     960     836     913     778  
    Service charges on deposit accounts   136     123     114     96     85  
    Gain on sale of loans held-for-sale   3,014     2,834     2,586     2,506     2,326  
    Gain on sale of investments   27         4          
    Other operating income   29     37     82     61     65  
      Non-interest income   4,187     3,954     3,622     3,576     3,254  
                           
    Compensation and benefits   6,699     6,840     6,499     5,562     5,242  
    Occupancy and equipment   1,810     1,799     1,843     1,770     1,746  
    Data processing   536     547     495     518     530  
    Professional fees   782     762     717     818     729  
    Federal deposit insurance premiums   375     360     365     318     375  
    Other operating expenses   2,198     1,930     1,751     1,818     2,048  
      Non-interest expense   12,400     12,238     11,670     10,804     10,670  
                           
      Income before income taxes   5,195     4,618     1,159     5,407     5,043  
    Income tax expense   1,293     1,079     315     1,346     1,280  
                           
      Net income $ 3,902   $ 3,539   $ 844   $ 4,061   $ 3,763  
                           
    Earnings per share (“EPS”):(1)                    
    Basic $ 0.53   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
    Diluted $ 0.52   $ 0.48   $ 0.11   $ 0.55   $ 0.51  
                           
    Average shares outstanding for basic EPS (1)(2)   7,427,583     7,411,064     7,399,816     7,376,227     7,324,133  
    Average shares outstanding for diluted EPS (1)(2)   7,456,471     7,436,068     7,449,110     7,420,926     7,383,529  
                           
    (1) Calculation includes common stock and Series A preferred stock.                  
    (2) Average shares outstanding before subtracting participating securities.                  
                           
    Note: Prior period information has been adjusted to conform to current period presentation.              
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)              
    (dollars in thousands)                
                     
                     
      Three Months Ended   Year Ended  
      12/31/2024   12/31/2023   12/31/2024   12/31/2023  
    Profitability:                
    Return on average assets   0.70 %     0.69 %     0.55 %     0.66 %  
    Return on average equity (1)   7.98 %     8.10 %     6.45 %     7.44 %  
    Return on average tangible equity (1)   8.87 %     9.06 %     7.18 %     8.33 %  
    Pre-provision net revenue to average assets   1.00 %     0.97 %     0.95 %     0.99 %  
    Yield on average interest-earning assets   6.06 %     5.91 %     6.12 %     5.67 %  
    Cost of average interest-bearing liabilities   4.24 %     4.19 %     4.40 %     3.68 %  
    Net interest rate spread (2)   1.82 %     1.72 %     1.72 %     1.99 %  
    Net interest margin (3)   2.53 %     2.40 %     2.44 %     2.59 %  
    Non-interest expense to average assets   2.21 %     1.97 %     2.11 %     2.04 %  
    Operating efficiency ratio (4)   69.01 %     67.05 %     68.88 %     67.31 %  
                     
    Average balances:                
    Interest-earning assets $ 2,169,595     $ 2,090,839     $ 2,174,000     $ 2,004,634    
    Interest-bearing liabilities   1,804,700       1,751,330       1,818,110       1,678,464    
    Loans   2,003,686       1,910,409       2,005,524       1,829,586    
    Deposits   1,853,828       1,767,753       1,840,378       1,675,913    
    Borrowings   153,126       170,793       174,327       182,307    
                     
                     
    (1) Includes common stock and Series A preferred stock.              
    (2) Represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (3) Represents net interest income divided by average interest-earning assets.          
    (4) Represents non-interest expense divided by the sum of net interest income and non-interest income excluding gain on sale of securities available for sale.
    HANOVER BANCORP, INC.                
    SELECTED FINANCIAL DATA (unaudited)                
    (dollars in thousands, except share and per share data)              
                     
      At or For the Three Months Ended  
      12/31/2024   9/30/2024   6/30/2024   3/31/2024  
    Asset quality:                
    Provision for credit losses – loans (1) $ 400     $ 200     $ 3,850     $ 300    
    Net (charge-offs)/recoveries   (1,027 )     (438 )     (79 )     (85 )  
    Allowance for credit losses   22,779       23,406       23,644       19,873    
    Allowance for credit losses to total loans (2)   1.15 %     1.17 %     1.17 %     0.99 %  
    Non-performing loans $ 16,368     $ 15,365     $ 15,828     $ 14,878    
    Non-performing loans/total loans   0.82 %     0.77 %     0.79 %     0.74 %  
    Non-performing loans/total assets   0.71 %     0.66 %     0.68 %     0.64 %  
    Allowance for credit losses/non-performing loans   139.17 %     152.33 %     149.38 %     133.57 %  
                     
    Capital (Bank only):                
    Tier 1 Capital $ 201,744     $ 198,196     $ 195,703     $ 195,889    
    Tier 1 leverage ratio   9.13 %     8.85 %     8.89 %     8.90 %  
    Common equity tier 1 capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Tier 1 risk based capital ratio   13.32 %     12.99 %     12.78 %     12.99 %  
    Total risk based capital ratio   14.58 %     14.24 %     14.21 %     14.19 %  
                     
    Equity data:                
    Shares outstanding (3)   7,427,127       7,428,366       7,402,163       7,392,412    
    Stockholders’ equity $ 196,638     $ 192,339     $ 190,072     $ 189,543    
    Book value per share (3)   26.48       25.89       25.68       25.64    
    Tangible common equity (3)   177,220       172,906       170,625       170,080    
    Tangible book value per share (3)   23.86       23.28       23.05       23.01    
    Tangible common equity (“TCE”) ratio (3)   7.73 %     7.49 %     7.38 %     7.43 %  
                     
    (1) Excludes $0, $0, $190 thousand and $0 provision for credit losses on unfunded commitments for the quarters ended 12/31/24,
    9/30/24, 6/30/24 and 3/31/24, respectively.                
    (2) Calculation excludes loans held for sale.                
    (3) Includes common stock and Series A preferred stock.                
                     
    Note: Prior period information has been adjusted to conform to current period presentation.          
    HANOVER BANCORP, INC.                
    STATISTICAL SUMMARY                
    QUARTERLY TREND                
    (unaudited, dollars in thousands, except share data)              
                       
        12/31/2024   9/30/2024   6/30/2024   3/31/2024  
                       
    Loan distribution (1):                
    Residential mortgages $ 702,832     $ 719,037     $ 733,040     $ 730,017    
    Multifamily     550,570       557,634       562,503       568,043    
    Commercial real estate   536,288       529,948       549,725       556,708    
    Commercial & industrial   168,909       171,899       139,209       123,419    
    Home equity   26,422       26,825       27,992       26,879    
    Consumer     503       470       485       449    
                       
    Total loans $ 1,985,524     $ 2,005,813 $ 2,012,954     $ 2,005,515    
                       
    Sequential quarter growth rate   -1.01 %     -0.35 %     0.37 %     2.47 %  
                       
    CRE concentration ratio   385 %     397 %     403 %     416 %  
                       
    Loans sold during the quarter $ 53,499     $ 43,537     $ 35,302     $ 26,735    
                       
    Funding distribution:                
    Demand   $ 211,656     $ 206,327     $ 199,835     $ 202,934    
    N.O.W.     692,890       621,880       661,998       708,897    
    Savings     48,885       53,024       44,821       48,081    
    Money market   503,082       572,213       571,170       493,123    
    Total core deposits   1,456,513       1,453,444       1,477,824       1,453,035    
    Time     497,770       504,100       464,105       464,227    
    Total deposits   1,954,283       1,957,544       1,941,929       1,917,262    
    Borrowings   107,805       125,805       148,953       148,953    
    Subordinated debentures   24,689       24,675       24,662       24,648    
                       
    Total funding sources $ 2,086,777     $ 2,108,024 $ 2,115,544     $ 2,090,863    
                       
    Sequential quarter growth rate – total deposits   -0.17 %     0.80 %     1.29 %     0.67 %  
                       
    Period-end core deposits/total deposits ratio   74.53 %     74.25 %     76.10 %     75.79 %  
                       
    Period-end demand deposits/total deposits ratio   10.83 %     10.54 %     10.29 %     10.58 %  
                       
    (1) Excluding loans held for sale                
    HANOVER BANCORP, INC.                    
    RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (1)(unaudited)          
    (dollars in thousands, except share and per share amounts)              
                         
                         
      12/31/2024   9/30/2024   6/30/2024   3/31/2024   12/31/2023  
    Tangible common equity                    
    Total equity (2) $ 196,638     $ 192,339     $ 190,072     $ 189,543     $ 184,830    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
                         
    Tangible common equity (“TCE”) ratio                  
    Tangible common equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Total assets   2,312,110       2,327,814       2,331,098       2,307,508       2,270,060    
    Less: goodwill   (19,168 )     (19,168 )     (19,168 )     (19,168 )     (19,168 )  
    Less: core deposit intangible   (250 )     (265 )     (279 )     (295 )     (311 )  
    Tangible assets $ 2,292,692     $ 2,308,381     $ 2,311,651     $ 2,288,045     $ 2,250,581    
    TCE ratio (2)   7.73 %     7.49 %     7.38 %     7.43 %     7.35 %  
                         
    Tangible book value per share                    
    Tangible equity (2) $ 177,220     $ 172,906     $ 170,625     $ 170,080     $ 165,351    
    Shares outstanding (2)   7,427,127       7,428,366       7,402,163       7,392,412       7,345,012    
    Tangible book value per share (2) $ 23.86     $ 23.28     $ 23.05     $ 23.01     $ 22.51    
                         
    (1) A non-GAAP financial measure is a numerical measure of historical or future financial performance, financial position or cash flows that excludes or includes amounts that are required to be disclosed in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). The Company’s management believes the presentation of non-GAAP financial measures provide investors with a greater understanding of the Company’s operating results in addition to the results measured in accordance with U.S. GAAP. While management uses non-GAAP measures in its analysis of the Company’s performance, this information should not be viewed as a substitute for financial results determined in accordance with U.S. GAAP or considered to be more important than financial results determined in accordance with U.S. GAAP.  
                         
    (2) Includes common stock and Series A preferred stock.  
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Three Months Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,003,686   $ 30,753   6.11 %   $ 1,910,409   $ 28,394   5.90 %
    Investment securities   94,886     1,381   5.79 %     56,834     940   6.56 %
    Interest-earning cash   62,850     747   4.73 %     114,033     1,570   5.46 %
    FHLB stock and other investments   8,173     176   8.57 %     9,563     251   10.41 %
    Total interest-earning assets   2,169,595     33,057   6.06 %     2,090,839     31,155   5.91 %
    Non interest-earning assets:                      
    Cash and due from banks   8,973             7,429        
    Other assets   50,068             50,677        
    Total assets $ 2,228,636           $ 2,148,945        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,152,755   $ 11,916   4.11 %   $ 1,039,062   $ 11,547   4.41 %
    Time deposits   498,819     5,642   4.50 %     541,475     5,231   3.83 %
    Total savings and time deposits   1,651,574     17,558   4.23 %     1,580,537     16,778   4.21 %
    Borrowings   128,446     1,365   4.23 %     146,167     1,392   3.78 %
    Subordinated debentures   24,680     326   5.25 %     24,626     326   5.25 %
    Total interest-bearing liabilities   1,804,700     19,249   4.24 %     1,751,330     18,496   4.19 %
    Demand deposits   202,254             187,216        
    Other liabilities   27,168             26,031        
    Total liabilities   2,034,122             1,964,577        
    Stockholders’ equity   194,514             184,368        
    Total liabilities & stockholders’ equity $ 2,228,636           $ 2,148,945        
    Net interest rate spread         1.82 %           1.72 %
    Net interest income/margin     $ 13,808   2.53 %       $ 12,659   2.40 %
                           
    HANOVER BANCORP, INC.                      
    NET INTEREST INCOME ANALYSIS                      
    For the Years Ended December 31, 2024 and 2023                    
    (unaudited, dollars in thousands)                      
                           
                           
        2024       2023  
      Average       Average   Average       Average
      Balance   Interest   Yield/Cost Balance   Interest   Yield/Cost
                           
    Assets:                      
    Interest-earning assets:                      
    Loans $ 2,005,524   $ 122,970 6.13 %   $ 1,829,586   $ 103,975 5.68 %
    Investment securities   98,238     5,992   6.10 %     26,171     1,534   5.86 %
    Interest-earning cash   60,868     3,191   5.24 %     139,006     7,243   5.21 %
    FHLB stock and other investments   9,370     869   9.27 %     9,871     874   8.85 %
    Total interest-earning assets   2,174,000     133,022   6.12 %     2,004,634     113,626   5.67 %
    Non interest-earning assets:                      
    Cash and due from banks   8,567             8,034        
    Other assets   50,461             52,953        
    Total assets $ 2,233,028           $ 2,065,621        
                           
    Liabilities and stockholders’ equity:                      
    Interest-bearing liabilities:                      
    Savings, N.O.W. and money market deposits $ 1,160,115   $ 51,457   4.44 %   $ 1,029,415   $ 39,430   3.83 %
    Time deposits   483,668     21,060   4.35 %     466,742     14,888   3.19 %
    Total savings and time deposits   1,643,783     72,517   4.41 %     1,496,157     54,318   3.63 %
    Borrowings   149,667     6,109   4.08 %     157,701     6,124   3.88 %
    Subordinated debentures   24,660     1,304   5.29 %     24,606     1,297   5.27 %
    Total interest-bearing liabilities   1,818,110     79,930   4.40 %     1,678,464     61,739   3.68 %
    Demand deposits   196,595             179,756        
    Other liabilities   27,000             24,701        
    Total liabilities   2,041,705             1,882,921        
    Stockholders’ equity   191,323             182,700        
    Total liabilities & stockholders’ equity $ 2,233,028           $ 2,065,621        
    Net interest rate spread         1.72 %           1.99 %
    Net interest income/margin     $ 53,092   2.44 %       $ 51,887   2.59 %
                           

    The MIL Network

  • MIL-OSI Global: Brics: growth of China-led bloc raises questions about a rapidly shifting world order

    Source: The Conversation – UK – By Gabriel Silva Huland, Teaching Fellow, School of International Studies, University of Nottingham

    Brics has emerged as a significant international force since 2009 when it was established at a summit in Russia. What began as a five-member group encompassing Brazil, Russia, India, China and South Africa, is now expanding with the integration of five new members and eight new partner countries. Even more countries may be joining in the next few years.

    This growth raises essential questions about whether Brics will challenge the leadership of traditional powers such as the US, UK and the European Union.

    But analysts are also questioning how united the bloc really is and whether a perceived lack of unity constitutes an obstacle to the bloc’s expansion. Brics is undoubtedly diverse. Iran and Saudi Arabia compete as regional powers in the Middle East, Egypt and Ethiopia have had different conflicts around the Nile’s governance, and the skirmishes between China and India are well known.

    Yet, the bloc’s strength may reside in its capacity to integrate this diverse array of countries that are not fully aligned. Building loose international organisations might be the key to navigating international politics in these times of increasing polarisation.

    The rise of Brics must be contextualised within the ongoing competition between the US and China. The rivalry between the world’s two largest economies is likely to intensify in the coming years, shaping the contemporary global order. China’s announcement of a record US$1 trillion (£804 billion) trade surplus for 2024 and its solid 5% economic growth have bolstered the narrative that its development model represents an alternative to the US-sponsored neoliberal policies that have dominated much of the world in the past four decades.

    Political leaders and economic elites worldwide are closely observing the US-China competition – and most countries strive to maintain an equidistant approach. Countries traditionally within the US sphere of influence, including Brazil and Peru, have been cautiously moving towards China, attracted by the economic opportunities the Asian giant offers. Others previously in China’s orbit, like Vietnam, are working to maintain or expand their ties with the US.

    Brics countries represent 45% of the world’s population and about 35% of global GDP.
    Sunflowerr/Shutterstock

    China is unquestionably the driving force that holds Brics together. Without China, it wouldn’t have come into existence. All Brics countries share two key characteristics. They are global south countries that do not belong to the traditional group of hegemonic powers. And they have significant economic ties with China, especially through trade relations.

    Belt and road

    The official Brics narrative emphasises multilateralism, cooperation and fair global development. But in fact the group serves primarily as an instrument for China to project its power and influence. China achieves this through a combination of rhetoric and by using the bloc as a special trade platform linked to the “Belt and Road Initiative” (BRI).

    Brics seeks to position itself as an alternative to US hegemony, promoting free trade and multilateralism. In times of political turbulence and the growth of illiberal forces, this narrative serves as a powerful legitimising tool for the group globally. But the group’s diversity also poses significant challenges to its rise as an alternative to the US-led global order. It is unlikely that Brics will evolve into a unified military alliance like Nato or a free trade area like Asean or the United States-Mexico-Canada Agreement (USMCA – formerly Nafta). The group’s diversity prevents it from acquiring these characteristics.

    Aware of this, China strategically uses Brics to increase its business opportunities and international influence. It maintains a fine balance between a loose bloc and a more solidified military or economic alliance. Contrary to the Cold War era, when the two superpowers, the US and the Soviet Union, had well-defined spheres of influence, the current world order appears to be shaped by loose, interconnected international blocs.

    Many of Brics member states are also partners with China in the Belt and Road Initiative (BRI).
    Net Vector/Shutterstock

    China’s prominence within Brics is clear and unlikely to change. It accounts for two-thirds of both the group’s GDP and intra-Brics trade. The country is the primary trade partner for Brazil, Russia, India, South Africa, Egypt, Ethiopia, the UAE, Saudi Arabia and Iran. China also holds significant investments in these nations. Russia is the largest recipient of Chinese foreign direct investment within the Brics with an accumulated stock of more than USU$10 billion.

    Most Brics member states are also directly or indirectly involved in BRI. While the major BRI projects may not be located within Brics countries – they are primarily in central, south and southeast Asia – Egypt, Ethiopia, South Africa, Saudi Arabia and Iran also host BRI initiatives. Though not an official BRI member, Brazil has become a key partner due to its role as a central food supplier to China.

    These figures highlight that expanding Brics is one of China’s foreign policy priorities. The country uses the group to project both economic and ideological influence. Donald Trump’s plans to impose trade tariffs on several countries, including China, is likely to prompt China to intensify this policy. It is a distinct possibility that the recent episode with Colombia, where the US president reportedly threatened to impose tariffs if Colombia continued to push back against deportation flights, could encourage more countries to seek closer trading relationships with China.

    Strategic friendships

    Some analysts correctly claim that Brics is divided between anti-western states and those that prefer to remain nonaligned. While the anti-western group, led by Russia, advocates for a confrontational stance towards the US, the nonaligned countries – including India and Brazil – favour a more nuanced approach.

    Analysts argue that the US should try to develop closer relations with non-aligned countries to influence internal Brics debates. But this overlooks the fact that China is not only the de-facto leader of Brics but also has an unequivocal strategy of favouring a nuanced approach towards the west, based on multilateralism and free trade. So, despite what Russia may want, it’s unlikely that Brics will assume a confrontational stance towards the west.

    China knows that a non-confrontational approach is the best way to attract more countries and solidify the Brics as a loose bloc that advocates for more democratic global governance.

    So far, this strategy appears to be working.

    Gabriel Silva Huland does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    ref. Brics: growth of China-led bloc raises questions about a rapidly shifting world order – https://theconversation.com/brics-growth-of-china-led-bloc-raises-questions-about-a-rapidly-shifting-world-order-248075

    MIL OSI – Global Reports

  • MIL-OSI Asia-Pac: Annual Survey of Unincorporated Sector Enterprises (ASUSE) Results for 2023-24

    Source: Government of India (2)

    Annual Survey of Unincorporated Sector Enterprises (ASUSE) Results for 2023-24

    (Reference & Survey period: October 2023 to September 2024)

    Posted On: 29 JAN 2025 4:00PM by PIB Delhi

    Unincorporated Sector has witnessed significant growth in estimated number of establishments (by 12.84%), estimated number of workers (by 10.01%) and in GVA (by 16.52%; in current price) during October, 2023– September, 2024 as compared to October, 2022 – September, 2023.

    Over the two survey periods, the sector has demonstrated enhanced capital investment, greater accessibility to loans, and stronger trend toward digital adoption.

    About 58% of the establishments were headed by female proprietors in the Manufacturing sector during the survey period, an increase of 4 percentage points from the previous year.

    More than 37% of the establishments were registered with at least one act/authority.

     

    The key results of the Annual Survey of Unincorporated Sector Enterprises (ASUSE) for the reference period of October 2023 to September 2024 (ASUSE 2023-24) in the form of a factsheet were released by the Ministry of Statistics and Programme Implementation (MoSPI), on 24thDecember 2024 through a press note, accompanied by a press conference. The detailed report and unit level data of the survey is now being released through this press note. These are now available in the website of the Ministry (https://www.mospi.gov.in).Further, interactive tables and visualizations on ASUSE 2021-22 and 2022-23 results may be accessed on the Data Catalogue section of https://esankhyiki.mospi.gov.in/.

    A brief overview of the survey in terms of coverage, sampling strategy, data collection mechanism, etc., is provided in the Endnote.

    The unincorporated non-agricultural sector holds significant importance in the Indian economy, primarily due to its ability to absorb a significant portion of the country’s workforce, its inclusivity in providing employment opportunities to a diverse range of people and also for its contribution to country’s Gross Domestic Product (GDP).

    Key highlights from ASUSE 2023-24 results

    The total number of establishments in the sector increased substantially from 6.50 crore[1]in 2022-23 to 7.34 crore in 2023-24, representing a healthy12.84% growth[2]. Among the broad sectors covered, the number of establishments in the “Other Services” sector recorded a growth of 23.55% followed by a 13% increase witnessed in the manufacturing sector. Around39% of the establishments in this sector were engaged in either retail trade (around 27%) or manufacturing of wearing apparel (around 12%)according to ASUSE 2023-24. Among the major states, highest number of establishments (rural and urban combined) has been reported in Uttar Pradesh, followed by West Bengal and Maharashtra during the same period.

    The Gross Value Added (GVA[3]) which is a key indicator of economic performance rose by16.52% driven by a 26.17% growth in other services sector.The top three states in terms of GVA were Maharashtra, Uttar Pradesh and Gujarat during ASUSE 2023-24.

    The unincorporated non-agricultural sector employed more than 12 crore workers between October 2023 and September 2024, marking an increase of more than one crore workers from 2022-23 and reflecting robust labour market growth. More than one-third of this workforce was engaged in the states of Uttar Pradesh, Maharashtra and West Bengal. Proportion of female workers to total workers has increased from 25.63% in ASUSE 2022-23 to 28.12% in ASUSE 2023-24. About 58% of the establishments were headed by female proprietors in the Manufacturing sector during the survey period.

    Figure 1 illustrates the percentages of female headed proprietary establishments across different broad activity categories over the two survey periods (ASUSE 2022-23 and ASUSE 2023-24).

     

    Among the activity categories, it is observed thatother retail trade, followed by manufacturing of wearing apparel and other community, social and personal services have reportedthe most number of establishments and engaged maximum number of workers at all-India level in ASUSE 2023-24. The percentage share of these three activity categories in estimated number of total establishments and total workers are given in Table 1.

    Table1: Percentage share of establishments and workers in respect of  top 3 activity categories

     

    Activity Category

    Number of Establishments

    Number of Workers

    ASUSE 22-23

    ASUSE 23-24

    ASUSE 22-23

    ASUSE 23-24

    Other Retail Trade

    30.38

    27.07

    29.80

    27.46

    Manufacture of Wearing Apparel

    11.27

    12.17

    8.39

    9.22

    Other Community, Social and Personal Service Activities

    9.47

    10.90

    8.19

    8.93

     

    Percentage ofregistered establishments has increased marginally from 36.80% in ASUSE 2022-23 to 37.20% in ASUSE 2023-24 thus showing an increasing trend of registration in the sector.

    Use of internet, for entrepreneurial purpose, has increased from 13.50% in 2022-23 to 17.90% in 2023-24 in rural and from 30.20% to 37.00% in urban sector. Overall, it increased from 21.10% to 26.70% during ASUSE 2023-24 as compared to ASUSE 2022-23. Among the broad activity categories, about 35% of trading establishments used internet for entrepreneurial purpose, an increase of 10 percentage points from ASUSE 2022-23. This substantial growth reflects a strong trend toward digital adoption among establishments, highlighting the increasing reliance on the internet for business operations.

    Figure 2, given below shows the change in usage of internet in ASUSE 2023-24 as compared to ASUSE 2022-23 by type of establishment.

    Fixed assets owned by an unincorporated non-agricultural establishment, on average, has risen from Rs. 3,18,144 in ASUSE 2022-23 to Rs. 3,24,075in ASUSE 2023-24 showing an improved capital investment in the sector. At the same time, Outstanding Loan per establishment has increased from Rs. 50,138 in ASUSE 2022-23 to Rs. 53,710in ASUSE 2023-24, indicating an improvement in availability of loan in this sector.

    Endnote: A brief about the coverage, sampling scheme, sample size and data collection mechanism in the Annual Survey of Unincorporated Sector Enterprises (ASUSE):

    A. Coverage of ASUSE:

    A.1. Geographically, ASUSE covers the rural and urban areas of whole of India (except some of the villages in Andaman and Nicobar Islands, which are difficult to access).

    A.2. Sector-wise, this survey captures unincorporated non-agricultural establishments belonging to three sectors viz., Manufacturing, Trade and Other Services.

    A.3. Ownership-wise, unincorporated non-agricultural establishments pertaining to proprietorship, partnership (excluding Limited Liability Partnerships), Self-Help Groups (SHG), co-operatives, societies/trusts etc. have been covered in ASUSE.

    B. Sampling Scheme:

    The survey has been conducted following a multi-stage stratified sampling scheme, where first stage units (FSUs) are census villages in rural area (except for rural Kerala, where Panchayat wards have been taken as FSUs) and UFS (Urban Frame Survey) blocks in urban areas.  The ultimate stage units (USUs) are establishments for both the sectors. In the case of large FSUs, one intermediate stage of sampling has been done in the form of hamlet groups in rural and sub-blocks in urban. 

    C. Sample Size:

    In ASUSE 2023-24, data were collected from a total of 4,98,024 establishments (2,73,085 in rural and 2,24,939 in urban) from 16,842 surveyed FSUs (8,523 in rural and 8,319 in urban).

    D. Data Collection Mechanism:

    ASUSE 2023-24 has been conducted based on area frame and establishments have been listed in the selected FSUs of both rural and urban sector. Mostly, data were collected from the selected establishments through oral enquiry pertaining to the ‘monthly’ reference period barring a few big establishments, which had provided annual data from their audited Books of Accounts. The data for the survey were collected in Tablet using Computer Assisted Personal Interviewing (CAPI).

    ****

    Samrat/Dheeraj: pibmospi[at]gmail[dot]com

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    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: English rendering of PM’s speech at the opening ceremony of 38th National Games in Dehradun, Uttarakhand

    Source: Government of India (2)

    Posted On: 28 JAN 2025 9:36PM by PIB Delhi

    Long live Mother India! 

    Governor of Devbhoomi Uttarakhand Gurmeet Singh Ji, young Chief Minister Pushkar Dhami Ji, my cabinet colleagues Ajay Tamta Ji, Raksha Khadse Ji, Speaker of Uttarakhand Assembly Ritu Khanduri Ji, Sports Minister Rekha Arya Ji, President of Commonwealth Games Chris Jenkins Ji, President of IOA P.T. Usha Ji, MP Mahendra Bhatt Ji, all the players from across the country who have come to participate in the National Games, and other dignitaries!

    Today, Devbhoomi has become more divine with the energy of youth. With the blessings of Baba Kedarnath, Badrinath ji, Maa Ganga, the National Games are starting today. This year is the 25th year of the formation of Uttarakhand. In this young state, thousands of youth from every corner of the country are going to show their capabilities. A very beautiful picture of Ek Bharat-Shreshtha Bharat is visible here. This time too, many indigenous traditional games have been included in the National Games. This time’s National Games are also Green Games in a way. Environment-friendly things are being used a lot in it. All the medals and trophies received in the National Games are also made of e-waste. A tree will also be planted here in the name of the medal winning players. This is a very good initiative. I wish all the players the best for their excellent performance. I congratulate Dhami ji and his entire team, every citizen of Uttarakhand for this wonderful event.

    Friends, 

    We often hear that gold becomes pure after being tested. We are also creating more and more opportunities for players so that they can further improve their capabilities. Today, many tournaments are being organized throughout the year. Many new tournaments have been added to the Khelo India series. Due to the Khelo India Youth Games, young players have got a chance to move forward. University Games are giving new opportunities to university students. The performance of para athletes through Khelo India Para Games is achieving new things. Just a few days ago, the fifth edition of Khelo India Winter Games started in Ladakh. Last year itself, we organized Beach Games. 

    And comrades,

    It is not that only the government is doing all these works. Today, hundreds of BJP MPs are organizing MP sports competitions in their areas to bring forward new talent. I am also an MP from Kashi. If I talk only about my parliamentary constituency, then every year in the MP sports competition, about 2.5 lakh youth in the Kashi parliamentary constituency are getting a chance to play and flourish. That is, a beautiful bouquet of sports has been prepared in the country, in which flowers bloom in every season, and tournaments are held continuously.

    Friends,

    We consider sports as a major medium for the all-round development of India. When a country progresses in sports, the credibility of the country also increases, the profile of the country also increases. Therefore, today sports are being linked to the development of India. We are linking it to the self-confidence of the youth of India. Today, India is moving towards becoming the third largest economic power in the world, it is our endeavor that sports should have a major part of the economy in this. You know, not only a player plays in any sport, there is a whole ecosystem behind it. There are coaches, trainers, people who focus on nutrition and fitness, doctors, equipment. That is, there is scope for both service and manufacturing in it. India is becoming a quality manufacturer of these different sports equipment used by players from all over the world. Meerut is not very far from here. There are more than 35 thousand small and big factories manufacturing sports equipment there. More than three lakh people are working in them. Today the country is working towards creating these ecosystems in every corner of the country.

    Friends,

    Some time ago, I had the opportunity to meet the Olympic team at my residence in Delhi. During the conversation, a friend gave me a new definition of PM. He said that the country’s players do not consider me as PM or Prime Minister, but as their Param Mitra. This belief of yours gives me energy. I have full faith in all of you, in your talent and capabilities. We are trying our best to increase your capabilities and improve your game. Look at the last 10 years, we have constantly focused on supporting your talent. The sports budget that was there 10 years ago has more than tripled today. Under the TOPS scheme, hundreds of crores of rupees are being invested on dozens of players of the country. Under the Khelo India program, modern sports infrastructure is being built across the country. Today, sports have been mainstreamed even in schools. The country’s first sports university is also being built in Manipur.

    Friends,

    We are seeing the results of these efforts of the government on the ground, it is visible in the medal tally. Today Indian players are flying their flag in every international event. Our players have performed so well in the Olympics and Paralympics. Many players from Uttarakhand have also won medals. I am happy that many medal winners have come here to this venue today to encourage you.

    Friends, 

    The old glory days of hockey are returning. Just a few days ago, our Kho-Kho team won the World Cup. The world was surprised when our Gukesh D. won the World Chess Championship title. Koneru Humpy became the Women’s World Rapid Chess Champion, this success shows how sports in India is no longer just an extra-curricular activity. Now our youth are considering sports as a major career choice. 

    Friends,

    Just like our players always move ahead with big goals, our country is also moving ahead with big resolutions. You all know that India is making all efforts to host the 2036 Olympics. When the Olympics will be held in India, it will take Indian sports to new heights. Olympics is not just an event of a game, in whichever country of the world the Olympics are held, many sectors get a boost. The sports infrastructure that is built for the Olympics also creates employment. Better facilities are created for the players in the future. New connectivity infrastructure is built in the city where the Olympics are held. This strengthens the construction related industry, and the transport related sector progresses. And the biggest benefit is to the tourism of the country. Many new hotels are built, people from all over the world come to participate in the Olympics and watch the games. The entire country benefits from this. Like this National Games is being organized here in Devbhoomi Uttarakhand. The spectators who come here from other parts of the country will also go to other parts of Uttarakhand. This means that a sports event not only benefits the players, but the economy of many other sectors also grows due to it.

    Friends,

    Today the world is saying that the 21st century is the century of India. And after visiting Baba Kedarnath, it suddenly came out of my mouth, from my heart – this is the decade of Uttarakhand. I am happy that Uttarakhand is progressing rapidly. Just yesterday, Uttarakhand became the state of the country that implemented the Uniform Civil Code, I sometimes also call it Secular Civil Code. Uniform Civil Code will become the basis for the dignified life of our daughters, mothers and sisters. Uniform Civil Code will strengthen the spirit of democracy, the spirit of the Constitution will be strengthened. And today I am here in this sports event, so I also see it connected to you. Sportsmanship takes us away from every feeling of discrimination, the mantra behind every victory, every medal is – Sabka Prayas. Sports inspires us to play with team spirit. The same spirit is there in Uniform Civil Code also. No discrimination against anyone, everyone is equal. I congratulate the BJP government of Uttarakhand for this historic step. 

    Friends,

    For the first time in Uttarakhand, such a national event is being organized on such a large scale. This is a big deal in itself. This will also create more employment opportunities here, the youth here will get work here. Uttarakhand will have to create more new ways for its development. Now the economy of Uttarakhand cannot depend only on the Char Dham Yatras. Today the government is continuously increasing the attraction of these Yatras by increasing facilities. The number of devotees is also making new records every season. But this is not enough. It is also important to encourage winter spiritual journeys in Uttarakhand. I am happy that some new steps have been taken in Uttarakhand in this direction too. 

    Friends, 

    Uttarakhand is my second home in a way. I also wish to be a part of winter travel. I would also like to tell the youth of the country to definitely visit Uttarakhand in winter. At that time, the number of devotees was not that much. There is a lot of scope for adventure activities for you here. All you athletes should also definitely find out about them after the National Games and if possible, enjoy the hospitality of Devbhoomi for more days. 

    Friends,

    All of you represent your respective states. In the coming days, you will compete fiercely here. Many national records will be broken, new records will be made. You will give your 100% according to your full potential, but I also have some requests for you. These National Games are not just a sporting competition, it is also a strong platform for Ek Bharat Shreshtha Bharat. This is an event to celebrate the diversity of India. You should try to ensure that your medals also reflect the shine of India’s unity and superiority. You should go from here with better knowledge of the language, food, songs and music of different states of the country. I also have a request regarding cleanliness. Due to the efforts of the residents of Devbhoomi, Uttarakhand is working hard towards becoming plastic free, trying to move forward. The resolution of plastic free Uttarakhand cannot be fulfilled without your support. Do contribute in making this campaign a success.

    Friends, 

    All of you understand the importance of fitness. That is why today I want to talk about a challenge which is very important. Statistics say that the problem of obesity is increasing rapidly in our country. Every age group of the country, and even the youth, are being badly affected by it. And this is also a matter of concern because obesity increases the risk of diseases like diabetes, heart disease. I am satisfied that today the country is becoming aware of fitness and healthy lifestyle through the Fit India Movement. These national games also teach us how important physical activity, discipline and balanced life are. Today I would like to tell the countrymen to definitely focus on two things. These two things are related to exercise and diet. Every day, take out some time and do exercise. From walking to working out, do whatever is possible. Secondly, focus on your diet. Your focus should be on balanced intake and the food should be nutritious. 

    There can be one more thing. Reduce unhealthy fat and oil in your food. Now in our normal homes, ration comes at the beginning of the month. Till now, if you used to bring home two liters of cooking oil every month, then reduce it by at least 10 percent. Reduce the amount of oil we use every day by 10 percent. We will have to find some ways to avoid obesity. Taking such small steps can bring a big change in your health. And this is what our elders used to do. They used to eat fresh food, natural things, and balanced meals. Only a healthy body can create a healthy mind and a healthy nation. I will also ask the state governments, schools, offices and community leaders to spread awareness about this, all of you have a lot of practical experience. I want you to continuously spread the information about correct nutrition to the people. Come, let us all together create a ‘Fit India’, with this call. 

    Friends, 

    Although it is my responsibility to start the National Games, today I want to do it by involving all of you. So for the inauguration of these games, turn on the flash lights of your mobiles, all of you. All of you turn on the flash lights of your mobiles. Everyone’s mobile flash lights should be turned on, everyone’s mobile flash lights should be turned on. Together with all of you, I declare the start of the 38th National Games. Once again, best wishes to all of you.

    Thank you !

    DISCLAIMER: This is the approximate translation of PM’s speech. Original speech was delivered

    MIL OSI Asia Pacific News

  • MIL-OSI Europe: Statement by President von der Leyen on the signature of the EU-Jordan Strategic and Comprehensive Partnership

    Source: EuroStat – European Statistics

    European Commission Statement Brussels, 29 Jan 2025 With this partnership, the EU and Jordan are deepening what is already a long-standing relationship and strong friendship, to better meet common challenges and advance shared values of peace, democracy and human rights.

    MIL OSI Europe News

  • MIL-OSI United Kingdom: December 2024 Retail Prices Index published29 January 2025 ​​​Statistics Jersey have today published the December 2024 Retail Prices Index report. The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter… Read more

    Source: Channel Islands – Jersey

    29 January 2025

    ​​​Statistics Jersey have today published the December 2024 Retail Prices Index report.

    The All Items Retail Prices Index (RPI) is the main measure of inflation in Jersey. It measures the change from quarter to quarter in the price of the goods and services purchased by an average household in Jersey. 

    ​The December report shows:​

    • the All Items Retail Prices Index (RPI) for Jersey increased by 2.5% to stand at 233.8 (June 2000 = 100)
    • the increase in the RPI was less than that to September 2024 (3.0%); hence the annual rate of inflation decreased by 0.5 percentage points (pp) since last quarter
    • half of the groups contributed to the decrease in the annual rate of inflation, including the housing, fuel and light and fares and other travel groups
    • prices in most groups increased and these increases were similar to or less than those over the 12 months to September 2024, which resulted in an overall downward contribution to the annual rate of inflation
    • leisure services which includes entertainment, sport and leisure fees and off-Island holidays, was the price group that made the largest contribution to the annual rate of inflation, contributing +0.6 pp to the rate
      • the price change in the leisure services price group was lower compared with the 12 months to September 2024, hence its contribution to the change in rate of the RPI was  0.1 pp
    • the increase in the RPI was 5.0 pp smaller than a year ago (7.5% in December 2023)
    • RPI(Y), which measures underlying inflation, increased by 3.0%, which was 0.3 pp smaller than the September 2024 rate (down from 3.3%)
    • RPI(X) increased by 3.2%
    • RPI Pensioners increased by 3.0%
    • RPI Low Income increased by 3.4%
    • annual changes in RPI(X), RPI(Y) and RPI Pensioners were 0.3 to 0.6 pp smaller than those in September 2024 and RPI Low Income was essentially unchanged from September 2024
    • the rate of inflation in Jersey as measured by the RPI, was 1.0 pp lower than the UK CPIH, which is the broadly comparable headline rate of inflation for the UK; this marks the first time since June 2022 that the Jersey RPI rate has been lower than the UK CPIH 

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Monthly GDP Estimates for November

    Source: Scottish Government

    An Official Statistics in Development publication for Scotland

    Scotland’s onshore GDP contracted by 0.5% in November 2024, according to statistics announced by the Chief Statistician. This follows a revised contraction of 0.4% (revised from -0.2%) in October 2024.

    In the three months to November, GDP is estimated to have contracted by 0.3% compared to the previous three month period. This indicates a decrease in growth relative to the revised growth of 0.4% (revised from 0.3%) in 2024 Quarter 3 (July to September).

    In November, the largest contribution to headline GDP was made by the Professional, Scientific and Technical Services sector which contracted by 3.5%, contributing -0.3 percentage points to the overall contraction. The largest positive contribution was made by the Information & Communications sector which grew by 1.1%, contributing 0.1 percentage points towards GDP.

    Background

    The quarterly statistical publication and data are available at:

    https://www.gov.scot/publications/gdp-quarterly-national-accounts-2024-q3

    The monthly statistical publication and data are available at:

    https://www.gov.scot/publications/monthly-gdp-november-2024

    All results are seasonally adjusted and presented in real terms (adjusted to remove inflation). GDP growth relates to Scotland’s onshore economy, which means it does not include the output of offshore oil and gas extraction.

    Gross Domestic Product (GDP) measures the output of the economy in Scotland and are designated as official statistics in development. This means that they are still in development but have been released to enable their use at an early stage. All results are provisional and subject to relatively high levels of uncertainty.

    Further information on GDP statistics is available at http://www.gov.scot/gdp

    These estimates are compiled in line with the Code of Practice for Statistics – more information on the standards of official statistics can be accessed at: https://www.statisticsauthority.gov.uk/code-of-practice/

    MIL OSI United Kingdom

  • MIL-OSI Russia: Financial news: Cash volume increased by almost 230 billion rubles in a year

    Translartion. Region: Russians Fedetion –

    Source: Central Bank of Russia –

    The volume of cash in circulation as of January 1, 2025 increased by 1.2% and amounted to 18.7 trillion rubles – this is the minimum increase in the last 9 years. This is evidenced by Bank of Russia data.

    In 2024, demand for cash was stable with minor seasonal fluctuations. In the first quarter, cash returned to banks amid high deposit rates. In April and December, traditional pre-holiday surges in demand for cash were noticeable.

    The share of small denomination banknotes in the structure of cash money supply has increased. This is due to the fact that the Bank of Russia has resumed printing 5 and 10 ruble notes, and modernized 100-ruble notes have also begun to enter circulation.

    Preview photo: Dummy Origami / Shutterstock / Fotodom

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please Note; This Information is Raw Content Directly from the Information Source. It is access to What the Source Is Stating and Does Not Reflect

    HTTPS: //VVV.KBR.ru/Press/Event/? ID = 23322

    MIL OSI Russia News

  • MIL-OSI Submissions: Energy – Equinor’s 2024 safety results

    Source: Equinor

    2024 was marked by the helicopter accident that occurred outside Bergen on 28 February, in which an Equinor employee lost her life.

    “This was a tragic accident that has deeply affected us. It is crucial that we continue the work to continuously improve safety in our industry,” says Jannicke Nilsson, executive vice president for safety, security and sustainability.

    Equinor’s 2024 safety results show an overall positive trend at the end of the year.

    For the fourth quarter of 2024, the serious incident frequency per million hours worked (SIF) was 0.3, down from 0.4 at the end of 2023. Serious injuries are also included in the serious incident statistics.

    “We see that the overall safety results are improving, the positive trend demonstrating that systematic efforts over time are paying off,” says Nilsson.

    The injury trend has also improved. For 2024 the total recordable injury frequency per million hours worked (TRIF) is 2.3, down from 2.4 in 2023.

    A total of seven oil and gas leaks have been registered in 2024, this is a decrease from ten at the end of 2023. Oil and gas leaks are classified according to the severity of the leak rate.

    Interaction and learning

    Through the “Always safe” annual wheel, Equinor is working with other operating companies and suppliers to increase the understanding of which factors can get in the way of safe work performance. The focus for the first quarter of this year is on the prevention of major accidents.

    In 2024, we saw an increased use of the learning material within the “Always safe” initiative. Around 3800 teams completed the final learning package of the year, which focused on health and working environment. This corresponds to over 40,000 people, both employees and suppliers.

    The learning packages are an important way of sharing learnings and insights across the industry.

    “We strongly believe that long-term and systematic collaboration, dialogue and common goals with the suppliers will improve our safety efforts,” says Nilsson.

    MIL OSI – Submitted News

  • MIL-OSI Africa: WHO in Africa: three ways the continent stands to lose from Trump’s decision to pull out

    Source: The Conversation – Africa – By Lawrence O. Gostin, University Professor; Founding Linda D. & Timothy J. O’Neill Professor of Global Health Law, Georgetown University

    President Donald Trump’s decision to withdraw the US from the World Health Organization (WHO) will be keenly felt across the globe, with profound implications for health in Africa.

    In the executive order putting the withdrawal process in place, Trump also paused the transfer of US funds, support and resources to the WHO.

    Trump’s executive order is his second attempt to pull the US out of the agency. He has also complained that the US financial contribution to the international organisation is “onerous”.

    The biggest impacts will come from the loss of US funding. The US is by far the WHO’s largest state donor, contributing approximately 18% of the agency’s total funding.

    The WHO’s funding is split into two tranches.

    There are assessed contributions: countries’ membership fees, to which all WHO members agree and over which the WHO has full control. The US accounts for 22%, or US$264 million of these, for the current 2024/25 budget. The US is yet to pay the WHO its assessed contributions for 2024 and 2025. Withdrawing from the organisation without paying these fees would violate US law and must be challenged in the US courts.

    Then there are voluntary contributions: donations by member countries, foundations and other sources, usually earmarked to that donor’s priorities. The US contributes 16%, or US$442 million, of all voluntary contributions.

    In the case of the US, these priorities include HIV/AIDS, polio eradication and health emergencies.

    As experts in global health law, we are deeply concerned about the impacts of this order, which will be far reaching.

    The US withdrawal from the WHO threatens core health programmes in Africa. It will weaken the ability of African countries to respond to health emergencies, and could lead to increases in death and illness on the continent.

    It will also have broader implications for leadership and governance in global health.

    Impact on core programmes

    Trump’s decision to withdraw comes at a time when the WHO’s health priorities in Africa were already underfunded. Eight of 12 areas were funded less than 50% earlier this year.

    Twenty-seven percent of all US funding through the WHO for the African region goes to polio eradication, 20% supports improved access to quality essential health services, and much of the balance goes to pandemic preparedness and response.

    The WHO/US partnership has long supported the HIV/AIDS response in Africa, but the redirection and reduction in funds could reduce the availability of prevention, testing and treatment programmes across the continent. This threatens progress to end AIDS by 2030.

    The funding gap will also have an impact on programmes designed to increase access to quality essential health services, including the prevention and treatment of tuberculosis and malaria, and child and maternal health services.

    If the WHO is forced to cut back on these services due to a lack of financing, it could lead to increases in mortality and morbidity in Africa.

    European countries filled the financing gap in 2020 when Trump last withheld US funding from the WHO. But it is unlikely that they will be able to do so again, as countries across Europe are facing their own geopolitical and financial challenges.

    The WHO’s budget was already thinly spread, and its mandate keeps growing.

    Through its new investment round, the WHO raised US$1.7 billion in pledges, and is expecting another US$2.1 billion through partnerships and other agreements. Yet even before the US president’s executive order, this left a funding gap of approximately US$3.3 billion (or 47%) for the WHO’s 2025-2028 strategy.

    If the gap left by the loss of US funding cannot be filled from other sources, it will fall to African nations to fund health programmes and services that are cut, placing a greater strain on governments reckoning with limited fiscal space.

    Weakened response to health emergencies

    Trump’s decision comes at a pivotal moment for health in Africa, which is experiencing major outbreaks.

    The US has been a key actor supporting WHO-led emergency responses to outbreaks.

    Last year, the US partnered with the WHO and Rwanda to rapidly bring a Marburg outbreak under control. The Marburg virus continues to threaten the continent. Tanzania has just confirmed an outbreak.

    Earlier in August 2024, the WHO and Africa Centres for Disease Control each declared mpox on the continent to be a public health emergency.

    The Biden administration delivered 60,000 vaccines, pledged 1 million more, and contributed over US$22 million to support capacity building and vaccination.

    But now US health officials have been instructed to immediately stop working with the WHO, preventing US teams in Africa from responding to Marburg virus and mpox.

    Even before these outbreaks, the US supported WHO-led emergency responses to COVID-19, Ebola and HIV/AIDS. The US withdrawal could lead to increased transmission, sickness and death in vulnerable regions.

    Similarly, strong partnership between the WHO and the US has helped build health system capacities in Africa for public health emergencies.

    US experts have supported nearly half of all WHO joint external evaluation missions to assess countries’ pandemic preparedness and response capacities under the International Health Regulations. This is a binding WHO agreement to help countries prepare for, detect and initially respond to health emergencies globally.

    The US withdrawal from the WHO risks eroding these efforts, though it may also accelerate a regionalisation of health security already underway in Africa, led by the African Union through the Africa CDC.

    Restructuring of governance

    The US was instrumental in establishing the WHO and shaping WHO norms and standards, in particular driving amendments to the International Health Regulations adopted in June 2024. This included improved obligations to facilitate the rapid sharing of information between the WHO and countries.

    The US has also been a key figure in ongoing negotiations for a new international treaty, a Pandemic Agreement. This would create new rights and obligations to prevent, prepare for and respond to pandemics with elements that go beyond the International Health Regulations. These include obligations on the equitable sharing of vaccines.

    Trump’s executive order would prevent these instruments from being implemented or enforced in the US.

    This would only entrench inequitable dynamics when the next global health emergency breaks out, given the concentration of global pharmaceutical companies in the US.

    The order also pulls the US out of the Pandemic Agreement negotiations. This will inevitably create new diplomatic dynamics. Optimistically, this could provide enhanced opportunities for African nations to strengthen their position on equity.

    The US departure from the WHO will create a leadership vacuum, ushering in a restructuring of power and alliances for global health.

    This vacuum could cede influence to US adversaries, opening the door to even greater Chinese influence on the African continent.

    But it also presents opportunities for greater African leadership in global health, which could strengthen African self-reliance.

    Trump has directed the US to find “credible and transparent” partners to assume the activities the WHO would have performed. And yet there is no substitute for the WHO, with its worldwide reach and stature.

    For more than 75 years, the WHO has been, and remains, the only global health organisation with the membership, authority, expertise and credibility to protect and promote health for the world’s population.

    For this reason, the African Union, among scores of other bodies and leaders, has already urged Trump to reconsider.

    It is now time for the global community to stand up for the WHO and ensure its vital health work in Africa and beyond can thrive.

    – WHO in Africa: three ways the continent stands to lose from Trump’s decision to pull out
    – https://theconversation.com/who-in-africa-three-ways-the-continent-stands-to-lose-from-trumps-decision-to-pull-out-248237

    MIL OSI Africa

  • MIL-OSI Economics: Record investments in foreign securities

    Source: Danmarks Nationalbank

    Denmark and abroad

    Statistics period: December 2024

    Danish investors made record purchases of foreign securities totaling kr. 321 billion in 2024. The interest was particularly directed towards foreign shares, but also towards bonds and investment funds. About half of the purchased shares were American, while the rest were mainly European and Japanese. For the bonds, approximately two-thirds of the purchases were German and Swedish government bonds. There were also significant price gains, which, along with the purchases, meant that Danish investors’ foreign securities increased by a total of 847 billion DKK to 5,355 billion DKK by the end of 2024. This was especially due to price increases in American listed shares. These shares now account for 1,456 billion DKK or more than a quarter of all Danish investors’ foreign securities.



    Danish investors purchased foreign securities for kr. 321 billion in 2024

    Note:

    Note: Total purchases of foreign securities for Danish investors (financial and non-financial companies, households, as well as general government). Data for portfolio investments, where the investor, unlike direct investments, does not have a significant influence on the decisions of the corporation in which they have invested.

    MIL OSI Economics

  • MIL-OSI Economics: American stocks lifted households’ securities up

    Source: Danmarks Nationalbank

    Securities

    Statistics period: December 2024

    Danish households’ securities increased by kr. 86 billion in 2024. Most of the increase was due to capital gains. It was particularly foreign shares that drove the development. Alone, the price increases of American shares amounted to kr. 50 billion, while the purchases of these totaled kr. 13 billion. In addition to owning foreign shares directly, households also have shares through foreign investment funds, which also increased. In contrast, there were both capital losses and sales of Danish shares. Capital losses on Novo Nordisk shares accounted to kr. 18 billion, while there were capital gains on other Danish listed shares of kr. 9 billion. By the end of 2024, households had a total of securities worth kr. 1,202 billion, which, for comparison, corresponds to the amount they have in deposits in financial institutions.



    Households hold securities worth kr. 1,202 billion

    Note:

    Note: Households’ (employees and pensioners, etc.) investments in securities. The holdings include both individual pension schemes in financial institutions and freely invested funds. Danish investment funds are looked through, so the funds’ investments in shares and bonds, etc., are shown. Foreign investment funds have not been looked through. Shares are listed shares. Other include unlisted shares and investments by Danish investment funds in investment funds that have not been looked through.

    MIL OSI Economics

  • MIL-OSI Economics: Development Asia: From Guesswork to Precision: Enhancing Agricultural Mapping with Geospatial Tech

    Source: Asia Development Bank

    The growing accessibility of geospatial technologies is reshaping how agricultural statistics are gathered, processed, and disseminated. Advanced technologies like remote sensing using satellite imagery, GPS, and unmanned aerial vehicles (UAVs) offer the potential for more efficient methods to monitor changes in agriculture with greater precision and frequency.

    When considering the most suitable method for GPS land measurement, several critical factors—such as the size, shape, and terrain of the parcel—must be considered, along with available resources.

    Walking method: The common method involves an enumerator, usually guided by the farmer, physically walking the perimeter of a parcel while carrying a GPS device, which automatically tracks and calculates the area. This approach reduces the need for multiple pieces of surveying equipment and extensive training for field staff. Furthermore, the time required for measurement is limited to the duration of walking the parcel’s perimeter, significantly streamlining the overall process. It is recommended when the highest positional accuracy and measurement precision are required.

    Moreover, GPS measurement methods integrated into tablets can be advantageous in certain cases, particularly due to their convenience and potential integration with other data collection tools.

    The walking method, whether using a dedicated handheld GPS device or an on-tablet GPS sensor, is particularly effective for smaller parcels with complex shapes and easily navigable terrain. It allows for precise boundary capture but can be time-consuming for larger parcels, potentially taking up to one hour for areas exceeding 10,000 m².

    Digitization method: Conversely, the digitization method is more suitable for large, monocropped areas. This method involves the farmer tracing the boundary of their parcel directly over a satellite image, negating the need for the farmer and enumerator to walk the boundary physically. Key to the success of this approach is the ability of the farmer to accurately recognize their land from an aerial perspective and the assumption that the satellite imagery is up-to-date and reflects the current agricultural season.

    Parcel corner GPS: The parcel corner GPS method involves an enumerator identifying and marking only the corners of the parcel using the Survey Solutions geometry multi-point question type to speed up the data input process. The goal is to capture the essential boundaries of the parcel more easily. The key challenge in using this method is the difficulty in accurately identifying corner points, particularly in irregularly shaped parcels. Significant inaccuracies in area measurement may also occur if enumerators are not properly trained and well-versed in using the field instruments.

    MIL OSI Economics

  • MIL-OSI China: China’s production of cattle, sheep, poultry remains stable

    Source: China State Council Information Office 3

    China’s production of cattle, sheep and poultry remained generally stable in 2024, while pig production declined, according to data from the National Bureau of Statistics.

    In 2024, the country’s production of pork, beef, mutton and poultry meat reached 96.63 million tonnes, representing a year-on-year increase of 0.2 percent.

    Specifically, beef output rose 3.5 percent year on year to 7.79 million tonnes last year, while mutton output reached 5.18 million tonnes, down 2.5 percent.

    Poultry meat production increased 3.8 percent year on year, and pork production dipped 1.5 percent. 

    MIL OSI China News

  • MIL-OSI Australia: Underlying inflation falls to three-year low

    Source: Australian Treasurer

    Underlying inflation is at its lowest in three years according to new figures released by the Australian Bureau of Statistics today.

    Headline inflation is now in the mid‑twos and underlying inflation is in the low threes.

    This means headline inflation has fallen to an almost four‑year low and now sits in the middle of the RBA’s target band.

    This result is better than expected and better than forecast.

    It’s not mission accomplished, but it means we’ve made much more progress.

    Inflation was higher and rising under the Liberals, but it’s lower and falling under Labor.

    On every measure we’ve made substantial and sustained progress in the fight against inflation.

    Inflation is now almost a third of the 6.1 per cent we inherited when we came to office.

    On a six‑month annualised basis, underlying inflation is around a third of its peak at 2.7 per cent and is within the RBA’s target band for the first time since 2021.

    Trimmed mean inflation was 3.2 per cent through the year to the December quarter, down from 3.6 per cent.

    Trimmed mean inflation almost halved in the quarter, at 0.5 per cent and is a third of what it was at the time of the election.

    Annual trimmed mean inflation in the monthly indicator is also within the RBA’s target band for the first time in three years, at 2.7 per cent in the year to December.

    Headline inflation was 0.2 per cent in the December quarter, to be 2.4 per cent higher through the year, around a quarter of its peak.

    Australia’s headline inflation is now lower than most major advanced economies including the United States, United Kingdom and Germany.

    Annual non‑tradable inflation was 3.1 per cent through the year to the December quarter 2024, down from 4.1 per cent through the year to the September quarter.

    While monthly headline inflation ticked up slightly, it remained in the band for the fifth consecutive month.

    The moderation in today’s figures of categories including building construction costs, rents and insurance is an encouraging sign that inflation is falling more quickly than anticipated in MYEFO.

    The moderation in inflation that we’ve seen so far would not have been possible without our responsible economic management including the $200 billion turnaround in the budget we’ve delivered.

    ABS data shows our cost‑of‑living policies took around three quarters of a percentage point off inflation.

    In the year to the December quarter 2024, electricity prices fell 25.2 per cent and would have fallen 1.6 per cent without the energy rebates we’re rolling out with the states.

    In the year to the December quarter 2024, rents rose 6.4 per cent – without the largest increase to Rent Assistance in 30 years, they would have risen 7.8 per cent.

    Inflation is down, wages are up, unemployment is low and we’ve seen 1.1 million jobs created for Australian workers under Anthony Albanese and Labor.

    The soft landing we have been planning and preparing for is looking more and more likely.

    Many countries around the world have paid for progress on inflation through higher unemployment or lower economic growth, but we’ve been able to preserve the gains we’ve made in our labour market at the same time as we’ve got inflation down.

    Cost of living pressures haven’t disappeared but they are easing.

    The worst of the inflation challenge is well and truly behind us.

    We are confident but not complacent about the year ahead.

    Australians would be thousands of dollars worse off if Peter Dutton had his way on tax cuts, wages and energy bill relief – and worse off still if he wins the election.

    The biggest risk to the progress we have made together would be a Coalition government that would come after Medicare again, push wages down again, and push electricity prices up.

    We’re fighting inflation, helping with the cost of living and building Australia’s future, and today’s figures show our policies are making a meaningful difference.

    MIL OSI News

  • MIL-OSI China: China’s production of cattle, sheep, poultry remains stable in 2024

    Source: China State Council Information Office

    China’s production of cattle, sheep and poultry remained generally stable in 2024, while pig production declined, according to data from the National Bureau of Statistics.

    In 2024, the country’s production of pork, beef, mutton and poultry meat reached 96.63 million tonnes, representing a year-on-year increase of 0.2 percent.

    Specifically, beef output rose 3.5 percent year on year to 7.79 million tonnes last year, while mutton output reached 5.18 million tonnes, down 2.5 percent.

    Poultry meat production increased 3.8 percent year on year, and pork production dipped 1.5 percent. 

    MIL OSI China News

  • MIL-Evening Report: Lower inflation in the December quarter boosts chances of an interest rate cut

    Source: The Conversation (Au and NZ) – By John Hawkins, Senior Lecturer, Canberra School of Politics, Economics and Society, University of Canberra

    ChameleonsEye/Shutterstock

    Australia’s headline inflation rate dropped to a three-year low of 2.4% in the December quarter, according to the Consumer Price Index, adding to pressure for an interest rate cut by the Reserve Bank as soon as next month.

    Since it peaked at 7.8% in December 2022, inflation has now fallen for seven out of eight quarters.

    The closely watched core inflation measure dropped sharply to 3.2% from 3.6%, below market expectations, but the central bank is concerned about how sustainable the fall in inflation will be. Strength in the labour market is also weighing against the need for a cut in interest rates.



    The long-running quarterly measure of the CPI is a better indicator than the more volatile monthly version. But the monthly rate is currently very similar; it ended the year at 2.5%.

    Why did inflation fall?

    A main reason headline inflation fell was the electricity rebates, which led to the price of electricity falling by 25.2% during 2024.

    The fall in global oil prices, which led to petrol prices dropping 7.9% during 2024, also contributed to the decline in inflation.

    The rental market is easing, with rents slowing from growth of 7.3% during 2023 to 6.4% during 2024. Increases in Commonwealth Rent Assistance contributed to the deceleration. This still leaves a lot of families facing rental stress.

    Home builders offering discounts have moderated the “new dwellings” component of the CPI. It increased by only 2.9% during 2024, a marked deceleration from the growth rates of around 20% seen in 2022.

    Urban transport fares also fell during 2024.

    Working against the downward trend were increases to the tobacco excise, in addition to the standard indexation, which led to tobacco prices rising by 12.2% during 2024.



    Insurance costs continue to rise, increasing by 11% during 2024. If the Californian fires lead to insurers revising up their assessment of the risks posed by climate change, insurance premia could rise further.

    The decline in the Australian dollar, while not as alarming as some media reports would suggest, would have added to the price of some goods, particularly those imported from the United States or whose price is denominated in US dollars.




    Read more:
    The Australian dollar has hit a 5 year low. Sounds bad but don’t panic


    The decline in inflation may be a pleasant surprise to the half of voters who were expecting inflation to get worse.

    The “underlying” rate of inflation, which looks through temporary measures such as the electricity subsidies and is the preferred measure of the central bank, has also declined. It is now 3.2%.



    Australia’s inflation performance is similar to that in comparable countries. It is slightly lower than inflation in the United Kingdom (2.5%) and the same as in the euro area. It is higher than in New Zealand (2.2%) and Canada (1.8%).

    The fall in inflation to a rate significantly below the 3.5% at which wages are increasing means that the cost of living crisis is abating, although not yet over.

    The quarterly increases in the CPI during 2024 were 1.0% in March and June and 0.2% in September and December. As the large increases in the first half of 2024 are replaced, the annual rate should drop further in coming quarters.

    What does it mean for interest rates?

    The current Reserve Bank board meets next on February 18. By the following meeting, on April 1, the decisions will be taken by the new monetary policy board, which will have two new members.




    Read more:
    The Reserve Bank will now have a separate board just to set interest rates. Here’s why that’s significant


    This is the second consecutive quarter that inflation has been within the Reserve Bank’s medium-term target band of 2–3%. It is now just below the mid-point of the band.

    Inflation is also below the Bank’s latest forecasts of 2.6% (and 3.4% for the “underlying” rate).

    But the bank has stated it will only cut interest rates when “members are confident that inflation is moving sustainably towards target”.

    Inflation that is low just because of temporary electricity subsidies may not be regarded as ‘sustainable’. That is why the Bank places more emphasis on the underlying inflation measure. While not yet within the target band, underlying inflation has been steadily heading there and is now only just above it. This may be enough to give the Bank board members the confidence they seek. Financial markets now think so.

    The government would dearly like to see rates coming down before the election, likely to be in April or May. It faces a nervous wait.

    John Hawkins was formerly a senior economist at the Reserve Bank and Treasury.

    ref. Lower inflation in the December quarter boosts chances of an interest rate cut – https://theconversation.com/lower-inflation-in-the-december-quarter-boosts-chances-of-an-interest-rate-cut-246987

    MIL OSI AnalysisEveningReport.nz

  • MIL-OSI Security: Police seize more than 4500 XL Bully dogs since ban

    Source: United Kingdom National Police Chiefs Council

    500% increase in police costs for dealing with dangerous dogs expected by end of financial year 

    Almost one year on from the ban on XL Bully dogs in the UK, the latest figures show the huge burden this has placed on policing, with kennel spaces reaching capacity and costs increasing by the day.  

    Chief Constable Mark Hobrough is National Police Chiefs’ Council lead for dangerous dogs, he said: 

    “Since the introduction of the ban on XL Bully dogs police services have had to quickly adapt, taking positive action to respond to thousands of calls from the public and doing everything we can to remove these dangerous dogs from our communities.  

    “Undoubtedly the ban and our response to it has driven down the number of dog attacks and we are pleased that the public continues to support us by reporting suspected XL Bully dogs in their local area.  

    “However, the demand has been and continues to be simply huge. We are facing a number of challenges in kennel capacity, resourcing and ever-mounting costs and as of today, we have not received any additional funding to account for this.  

    “Veterinary bills and the cost of kennelling across policing has risen from £4m in 2018 to currently standing at more than £11m and this is expected to rise to as much as £25m by the end of April 2025. That’s a predicted 500% increase. 

    “Before the XL Bully ban was introduced there were 120 Dog Liaison Officers across England and Wales, we then trained an additional 100 with a further 40 identified to be trained this coming year.  This means that in some areas established dog handlers have been called away from other policing duties. We have had to purchase additional vehicles, equipment and find countless extra kennel spaces from the finite that are available within the industry.   

    “Policing will uphold the government’s decisions, and we’ll act robustly to do so, but the bigger picture is a focus on responsible dog ownership. People need to be aware of the types of dogs that they’re bringing into their homes and make the right decisions to choose a breed which suits their lifestyle, environment and experience. 

    “We are also asking for amendments to the existing legislation so we have alternative options to deal with the specific circumstances of a particular case. At the moment, the only option you have is to go to court when someone is in possession of an unregistered XL Bully but we feel there are some situations which could be swiftly dealt with through out of court disposals. For example, there’s potentially a big difference in someone who has unwittingly ended up owning a dog from a young age they weren’t aware was an XL Bully or those who on veterinary advice were unable to have their dog neutered by the deadline versus an individual who is intentionally breeding and selling these dogs.  

    “At the top end, unscrupulous criminal dealers and breeders need to feel the full weight of the law going to court but alternative methods of out of court disposals would support us in taking a proportionate response as required.   

    “We will always protect our communities by ensuring these dangerous dogs are dealt with but we urgently need the Government to support us in coping with the huge demand the ban has placed on our ever-stretched resources.” 

    Statistics 
    • Police forces in England and Wales have seized and euthanised 848 dogs between February and September 2024 at an estimated cost of £340K. These were dogs which were surrendered to police by owners who had not complied with the ban, nor taken advantage of the compensation scheme. 
    • Between February and September 2024, policing has seized over 4,586 suspected S1 dogs * throughout England and Wales. People have been going to court, and will continue to do so, facing criminal convictions, fines and imprisonment for being in possession of these illegal types of dog. 
    • Since the start of the XL Bully ban police services have increased kennel capacity by a third.  
    • It can cost up to £1,000 a month to keep dogs in kennels and with up to an 18-month lead in time so both kennel demand / expenditure moving forward will become even more acute. We are aware of court cases not being scheduled until mid-2026 for some dangerously out of control cases. 
    • The police officer/staff overtime bill for forces between February 2024 and September 2024 was circa £560K. 

    *A section 1 dog is any of the specified banned breeds in the Dangerous Dogs Act.  

    MIL Security OSI

  • MIL-OSI New Zealand: Activist News – The government has begun to “go through the motions” of questioning Israeli soldiers at the border but it’s just a “look busy” policy – too little too late! – PSNA

    Source: Palestine Solidarity Network Aotearoa

     

    The government has begun questioning Israeli soldiers about their military service in Gaza at the New Zealand border as revealed in a Times of Israel story today which says:

     

    “New Zealand’s government immigration authority has begun to require Israelis applying for a visa to report details of their military service as a condition for entry, and at least one person has been denied admission after doing so, The Times of Israel has learned”

     

    However, the details of the questions asked reveals the government is simply “going through the motions” to weed out possible war criminals.

     

    The key questions asked are:

     

    • “Have you been associated with any intelligence service or group, or law enforcement agency?”
    • “Have you been associated with any group or organization that has used or promoted violence or human rights abuses to further their aims?”
    • “Have you committed or been involved in war crimes, crimes against humanity, or human rights abuses?”

     

    It’s obvious how every soldier will answer those questions and New Zealand is none the wiser.  

     

    What the story also reveals is that the rejection rate for visas for Israelis coming here has not changed since the genocide began in Gaza.

     

    An analysis of INZ statistical data indicates that the rejection rate for Israeli visa applications to New Zealand during the war has been approximately four percent. This is not unusually high compared to previous years or the rejection rates for citizens of other developed countries.

     

    It’s clear the questioning of Israeli soldiers is not revealing people involved in war crimes and is a “look busy” policy. This gives more reason for the government to adopt PSNA policy and suspend all visas for anyone who has served in the IDF since 7 October 2023.

     

    The government must also uphold the International Court of Justice Advisory opinion (19 July 2024) which calls on the government to end support for Israel’s illegal occupation. This means we should also deny entry to every Israeli wanting to visit here who has an address in an illegal Israeli settlement in the Occupied Palestinian Territories.

      

    John Minto

    National Chair

    Palestine Solidarity Network Aotearoa

    MIL OSI New Zealand News

  • MIL-OSI Global: Commerce oversees everything from weather and salmon to trade and census − here are 3 challenges awaiting new secretary

    Source: The Conversation – USA – By Linda J. Bilmes, Daniel Patrick Moynihan Senior Lecturer in Public Policy and Public Finance, Harvard Kennedy School

    Howard Lutnick, left, is President Donald Trump’s nominee to run the Commerce Department. AP Photo/Evan Vucci

    The U.S. secretary of commerce oversees the smallest but arguably most complex of all Cabinet-level departments.

    Established as a distinct entity in 1913, it has evolved into a sprawling organization with 13 bureaus spanning a wide variety of critical areas that include weather forecasting, conducting the census, estimating gross domestic product, managing fisheries, promoting U.S. exports, setting standards for new technology and allocating radio frequency spectrum. It is even home to one of America’s eight uniformed military services, the NOAA Commissioned Officer Corps with its own fleet of ships, aircraft and 321 commissioned officers. Its main mission is to monitor oceans, waterways and the atmosphere in support of the National Oceanographic and Atmospheric Administration.

    As a result, there is no other Cabinet position that has to engage with lawmakers in Congress across so many disparate technical issues, committees and stakeholders. This medley reflects both the historical evolution of the U.S. economy and a degree of political happenstance.

    I served at the Commerce Department in several roles, including as chief financial officer and assistant secretary for administration, management and budget, and have watched several administrations attempt to craft an overarching strategic narrative around this diverse set of missions.

    Besides the difficult job of formulating a unifying strategy for the department’s many activities, I believe there are three specific challenges in particular that await the next secretary, a position that requires Senate confirmation.

    The Commerce Department manages salmon as part of its National Marine Fisheries Service.
    AP Photo/Manuel Valdes

    Commerce: A sprawling bureauocracy

    From its earliest days, the Commerce Department has collected trade statistics, overseen lighthouses and issued patents and trademarks. But since then, its portfolio has expanded significantly.

    In 1970, NOAA was placed inside Commerce, partly as a result of a feud between President Richard Nixon and his interior secretary, Wally Hickel, over the Vietnam War. NOAA now accounts for more than half the department’s US$11 billion budget and has created some peculiar departmental overlaps.

    As President Barack Obama joked in his 2011 State of the Union speech, “The Interior Department is in charge of salmon while they’re in freshwater, but the Commerce Department handles them when they’re in saltwater.”

    While the joke wasn’t quite accurate – a division of Commerce manages salmon in both fresh and saltwater, though Interior does restore their habitat – it does reflect some odd situations. For example, when it comes to sea turtles, Interior oversees their nests on shore, whereas Commerce protects them in the open sea.

    Due to the department’s broad interests, the commerce secretary has a role in nearly every important issue facing the country.

    He or she needs to be a quick study who is able to multitask, respond to congressional inquiries on a myriad of topics, as well as manage a 50,000-strong workforce including economists, scientists, statisticians, meteorologists and other experts.

    One example of the caliber of experts Commerce oversees is the National Institute for Standards and Technology, which does cutting-edge research in bioscience, artificial intelligence, materials science and industrial measurement standards. The institute currently has five Nobel laureates in physics and chemistry on its staff and is on the front lines on cybersecurity and national defense.

    While it’s unclear how Trump nominee Howard Lutnick plans to unify Commerce’s work, the previous secretary, Gina Raimondo, outlined five strategic goals for her department, including driving U.S. global competitiveness, using data to find new opportunities and modernizing its services and capabilities.

    The Senate Committee on Commerce, Science and Transportation is holding a hearing on Jan. 29, 2025, to consider Lutnick’s nomination.

    Challenge No. 1: Another census is just around the corner

    The incoming secretary’s biggest challenge will be the decennial census due on April 1, 2030.

    The census counts every person living in the U.S. and five U.S. territories. Census data is used to apportion the number of seats each state has in the House of Representatives and to adjust or redraw electoral districts, as well as to apportion federal funding allotted to each district. Consequently, the census receives huge attention in Congress. It will be an especially hot topic because the data collected in the 2020 census had errors due to the pandemic.

    Conducting the census is highly labor intensive and takes many years of planning and preparation, which ramp up now.

    The Commerce Department must hire 500,000 temporary workers, open local offices and run large-scale field tests, award billions of dollars in contracts, and work with every state, local, county and tribal government in the country to map where people live. This includes dorms, homeless shelters, nursing homes, prisons, oil rigs, boats, tents, hospitals and mobile homes as well as houses and apartments.

    The Census Bureau says it began planning for 2030 as far back as 2019 and is preparing to do a test census in 2026.

    Trump administration policies, such as ongoing efforts to round up and deport undocumented migrants, will make it even more challenging to count immigrants and other historically hard-to-reach groups. During his first term, President Donald Trump sought to prevent unauthorized immigrants from being counted at all – but ran out of time.

    A NOAA crew on a reconnaissance flight into the eye of Hurricane Milton in October 2024.
    Sim Aberson/NOAA via AP

    Challenge No. 2: NOAA on the front lines of climate change fight

    Second, NOAA is likely to be in the political crosshairs, due to its role as a global leader in studying oceans, climate and coastal ecosystems.

    It tracks rising sea levels, ocean acidification and extreme weather events, and forecasts their impact on fisheries, shipping, marine protected areas and habitats. It also runs the National Weather Service and issues severe storm warnings. These and many other NOAA activities are vital to monitoring the pace of climate change and helping Americans adapt.

    NOAA’s mission and its budget are sure to be scrutinized by the Trump administration, which has already reversed a variety of policies meant to slow the pace of climate change. Trump himself has called climate change a “hoax.” That and policy proposals that seek to break up or privatize NOAA suggest many of NOAA’s climate-related activities could be under threat.

    Challenge No. 3: The patent problem

    A third challenge the incoming secretary will face is an ongoing crisis at the Patent and Trademark Office.

    Unlike most federal agencies, the Patent and Trademark Office is funded by user fees collected from applicants rather than from tax revenue. This is supposed to make it more efficient and easier to hire staff quickly, but the model is under stress due to a shortage of patent examiners with skills in assessing science, technology, engineering and math applications. The agency currently has a backlog of over 800,000 unexamined patent applications – near an all-time high.

    The backlog is likely to continue to grow as artificial intelligence and other state-of-the-art technologies accelerate the discovery cycle, but the slow process of patent approval – two years on average – can throw a wrench in it.

    Patents and trademarks are critical to U.S. competitiveness because they reward innovation and discovery and help inventors attract investors.

    The Trump administration’s broad federal hiring freeze is likely to worsen the Patent and Trademark Office’s staffing issues, while the back-to-office mandate may make it harder to recruit patent examiners, who often work remotely.

    On top of this, Elon Musk, whose companies hold large numbers of patents and who already holds tremendous sway in the Trump administration, says “patents are for the weak” and compared them with landmines in warfare. “They don’t actually help advance things,” he said. “They just stop others from following you.”

    In addition to these three areas, Commerce’s roles in international trade, telecommunications, industrial security and other matters could also become epicenters of any global crisis.

    This all adds up to an uncomfortable mix of political and operational challenges for the next secretary.

    This story is part of a series of profiles explaining Cabinet and high-level administration positions.

    Linda J. Bilmes is affiliated with the Harvard Kennedy School. She served as Deputy Assistant Secretary of the US Department of Commerce from 1997-1998 and as CFO and Assistant Secretary for Management, Budget and Administration from 1999-2001.

    ref. Commerce oversees everything from weather and salmon to trade and census − here are 3 challenges awaiting new secretary – https://theconversation.com/commerce-oversees-everything-from-weather-and-salmon-to-trade-and-census-here-are-3-challenges-awaiting-new-secretary-248087

    MIL OSI – Global Reports

  • MIL-OSI United Nations: New Permanent Representative of Nauru Presents Credentials to the Director-General of the United Nations Office at Geneva

    Source: United Nations – Geneva

    Frederick W. Pitcher, the new Permanent Representative of Nauru to the United Nations Office at Geneva, today presented his credentials to Tatiana Valovaya, the Director-General of the United Nations Office at Geneva.

    Prior to his appointment to Geneva, Mr. Pitcher had been serving as the Chief Executive Officer for the Nauru Maritime and Port Authority and the Nauru Shipping Line since 2023.

    He was a member of Parliament from 2004 to 2013, served as Nauru’s Minister for Commerce, Industry and Environment from 2004 to 2010, and was elected briefly as President in 2011.  Prior, Mr. Pitcher held the position of Nauru’s Deputy Permanent Representative to the United Nations in New York from 2000 to 2004.

    Mr. Pitcher began his career in Nauru’s Public Service in 1993, where he held several positions, including as the Director of the Bureau of Statistics (1993-1995); Private Secretary to the President (1995-1996); and Secretary for Finance (1996–1997).  

    Since 2013, he had been working mainly in the private sector.

    Mr. Pitcher obtained a Postgraduate Certificate in Management and Business Administration from the Edinburgh School of Management in Scotland (1997-2000); a Graduate Certificate and United Nations Fellowship in Statistical Analysis from the Statistical Institute for Asia and the Pacific, in Tokyo, (1992-1993); and a Bachelor of Arts in Pacific Studies from Macquarie University in Sydney, Australia (1988-1991), among other professional certificates.  He was born on Nauru in February 1967 and is married with three adult children.

    ________

    CR.12.048E

    Produced by the United Nations Information Service in Geneva for use of the information media; not an official record.

    MIL OSI United Nations News