Metrobank sells P2.9-B foreclosed assets

Metropolitan Bank and Trust Co. (Metrobank) has disposed of P2.9 billion worth of foreclosed assets in the first nine months of 2007, 170 percent higher than the amount of its real and other properties acquired (ROPA) sold during the same period last year.

ROPAs are properties acquired by banks in settlement of uncollected loans or past due accounts which were not paid upon maturity. These properties were eventually acquired through proceedings such as foreclosure or dacion en pago.

“All these properties were sold in-house and through our broker and branch network,” said Christine Carandang, Metrobank senior vice president.

The bank official added that improvements in the economy and the sustained growth in property development helped asset sales of Philippine banks.

Likewise, banks are forging stronger tie-ups with broker networks while intensifying its aggressive sales efforts. “We remain positive on the prospects of asset disposal activities,” Carandang added.

There are also different ways of asset disposal. These include retail sales through auctions and joint ventures with reputable real estate firms.

Metrobank continued to strengthen its balance sheet through the disposal of close to P10 billion in non-performing assets (NPAs) in 2006. NPAs are made up of non-performing loans (NPL) and ROPAs.

The Metrobank group’s net investment properties (which include ROPA) improved to 4.7 percent of consolidated total assets from 5.3 percent.

Consolidated NPL ratio likewise dropped to six percent of total consolidated loan portfolio from 9.8 percent as of September 2006.

The group earlier reported a 19.7 percent year-on-year increase in consolidated net income to P5.31 billion while consolidated total assets stood at P673.84 billion.

Metrobank reported a net income of P5.53 billion and consolidated assets of P648.79 billion last year. It listed in the international capital markets the amount of P6.6 billion in new common shares following a global equity offering of 173.6 million new shares with 164.9 million shares sold in the international market and the balance of 8.7 million shares sold through allocation to local buyers.

The offerings at about $132 million is approximately 10 percent of the foreign direct investment (FDIs) of the Philippine economy in 2005, which was at $1.132 billion. It also unloaded in the auction market P8-billion worth of non-performing loans.