Metrobank expects loan portfolio to grow by 8-10%

MANILA, Philippines - The Metropolitan Bank & Trust Co. (Metrobank) expects its loan portfolio to grow by eight to 10 percent this year with consumer lending still the main driver.

The bank’s loan portfolio stood at P392.7 billion in 2010.

Metrobank is targeting to expand its consumer base in 2011.

Net income in 2010 stood at P8.4 billion, 39 percent from the P6 billion recorded in 2009.

In its report, the bank said growth was boosted by double-digit expansion in non-interest income, and high single digit growth in deposits and net loans.

Total revenues grew by 10 percent to P48.1 billon from an already strong P43.7 billion.

Net interest income however slipped from P26.7 billion in 2009 to just P26.4 billion after expanding by 15.6 percent in the previous year.

 “We will continue to expand our low-cost deposits, and improve coverage and market penetration,” Arthur Ty, Metrobank president and chief executive officer said in its annual stockholders meeting.

The bank opened 20 branches last year and plans to open a maximum of 30 in 2011.

As of 2010, Metrobank operates 750 domestic branches and 35 foreign branches.

The bank is planning to open 15 branches in mainland China within the next five years.

The bank’s remittance business raised $2.3 billion from fees and foreign currency accounts, or a growth rate of 16 percent.

To protect the bank and its borrower, provisioning for probable losses reached 92 percent of portfolio. It was valued at P7.3 billion at the end of 2010.

The bank’s non-performing loans (NPLs) stood at P11 billion for an NPL ratio of 2.9 percent. Capital adequacy ratio (CAR) stood at 16.4 percent from an already impressive 15 percent at the end of 2010.