Metrobank sees nearly 20% hike in loan portfolio

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) is expecting a growth of 16 to 19 percent in its loan portfolio, led by consumer lending, in 2014.

Metrobank investor relations head Juan Placido T. Mapa III said growth of their consumer loans will likely remain just under 20 percent, with mortgage and auto lending leading the way, followed by the card business.

Loan portfolio grew 19 percent in the first semester, faster than the 16 percent rate in 2013. Loan portfolio stood at roughly P545.8 billion at the start of the year, reaching P647.5 billion as of end-June.

Mapa said that consumer loans account for 27 percent of total portfolio, or nearly a third of the total portfolio led by the corporate sector.

“Over the next three to five years, consumer lending will expand in the high teens while we will see the share of corporate lending decrease,” he added.

Low interest rates favor consumer lending while corporates continue to prefer tapping the capital markets for funding requirements.

On retail lending, mortgage and auto market account for 39 percent each while the balance of 26 percent is the credit card business.

Metrobank is the leader in the car lending business and third in mortgage lending, on a consolidated basis (including MetroCard and PSBank).

Meanwhile, Metrobank is extremely bullish over property development in areas outside Metro Manila.

Mapa said the major magnet for property expansion for both commercial and residential development is the business process outsourcing (BPO) sector.

“The pattern is BPOs locating outside Metro Manila and going to advanced cities such as Cebu, Davao, Cagayan de Oro and Iloilo, which have the best schools that can compete with those located in MM,” he said.

These schools produce able call center agents for the BPOs, which in turn become the market for property developer either for commercial (expansion of BPOs) or residential for call center agents.