Metrobank holds int’l roadshows for $500-M notes issue

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank), the main banking unit of the Ty family, will hold a series of international roadshows to market its Tier 2 capital issuance.

In a disclosure to the Philippine Stock Exchange (PSE), Metrobank said the meeting for its issuance of Basel 3-compliant Tier 2 capital would be arranged by J.P. Morgan Securities plc and UBS AG, Hong Kong branch.

Metrobank earlier announced its plan to issue some $500 million worth of Tier 2 capital notes to comply with the global Basel 3 requirements.

It said the issuance would allow the bank to proactively manage its capital base for growth and for refinancing of maturing capital securities.

The Basel 3 guidelines issued by the Bangko Sentral ng Pilipinas in 2003 requires that Tier 2 notes have a provision for the instrument to either be written off or converted to common equity upon occurrence of certain trigger events. The BSP circular further stipulates that banks must make the necessary amendments to their by-laws to accommodate such a conversion.

Metrobank’s consolidated net income in the first half of 2013 more than doubled to P18.1 billion from P7.4 billion in the same period in 2012.

Metrobank said the key drivers of the impressive earnings performance include the steady growth in core revenues, robust expansion in treasury and investment activities, and increase in miscellaneous income.

The bank’s total operating income expanded by P16.6 billion to reach P45.9 billion in the first half. This was achieved on the back of a 13-percent rise in net interest income to P17.3 billion, coupled with a P14.7-billion increase in non-interest income to P28.6 billion.

Metrobank sustained its momentum with year-on-year loan growth of 16 percent to close the period at P545.8 billion.

Total deposits reached P876.6 billion, or a 32 percent increase year-on-year, predominantly from current and savings accounts (CASA).

Non-interest income was driven by strong earnings from treasury and investment activities of P14.3 billion, the steady increase in service charges, fees and commissions to P4.2 billion, and miscellaneous income of P10.1 billion.

Metrobank continued its branch expansion strategy to expand coverage and provide better accessibility to its client base. It maintains the largest consolidated domestic network of 832 branches, supplemented by 1,822 ATMs nationwide.

Asset quality remains well under control as non-performing loans (NPL) ratio further improved to 1.8 percent from 2.2 percent in the same period last year.

During the period, Metrobank set aside provision for credit and impairment losses amounting to P2.7 billion on a consolidated basis, raising NPL coverage to 125 percent from 109 percent previously.

The bank ended the first semester with P1.2 trillion in consolidated assets and P135.6 billion in equity.