Metrobank declares 3% cash dividend worth P1.08 billion

MANILA, Philippines - Metropolitan Bank & Trust Co., the country’s largest lender, approved the declaration of a three percent cash dividend to shareholders, equivalent to 60 centavos each share.

Based on the bank’s outstanding capital stock of P36.145 billion, the cash dividend amounting to P1.08 billion will be taken from Metrobank’s profits on hand which had a balance of P18.17 billion as of March 5, 2009.

The record date for the cash dividend has yet to be fixed by the bank upon approval by the Bangko Sentral ng Pilipinas.

Metrobank posted a net income of P4.4 billion last year, 37 percent lower than the previous year’s P7.04 billion, as it had to “mark down all risky assets.”

Metrobank president Arthur Ty said the bank still managed to report a reasonable income in spite of the tough business climate. “We feel that last year’s performance was a result of our strategy of prudent growth and better risk management,” he said.

Net interest income went up 7.5 percent to P23.1 billion with net loans and receivables rising 17.5 percent to P358.2 billion. Deposit base likewise improved 10.5 percent to P584.3 billion.

Fee-based income amounted to P6.8 billion or an increase of 23.2 percent while operating expenses dropped to P27.4 billion.

The bank’s non-performing loans ratio likewise declined to 4.5 percent from 5.3 percent in 2007, the lowest since the 1997 Asian financial crisis.

Meanwhile, capital-adequacy ratio stood at 13.4 percent, well above the minimum level of 10 percent required by the central bank.

As of end-December last year, Metro-bank had total assets of P758.5 billion, making it the second biggest after the Sy family’s Banco de Oro Unibank, which had an asset base of P808 billion.

“We are moving into 2009 with a healthy balance sheet and strong capital position,” Ty said.

Metrobank is the flagship company of taipan George S.K. Ty’s Metrobank Group which has diverse interests in the area of financial services, life and non-life insurance, power generation, real estate, automotive and travel.

Its subsidiaries include PSBank, one of the leading savings banks in the country; investment bank First Metro Investment Corp., brokerage house First Metro Securities Brokerage Corp., property firm Federal Land, Toyota Motor Philippines Corp. and Global Power Corp., a major provider of stable electricity supply to the key cities of Cebu and Iloilo.

Internationally, the Metrobank Group is a major player in the overseas remittance business with remittance centers in Hong Kong, Singapore, the US, the Bahamas, Italy, UK, Madrid, Barcelona and Vienna.