Metrobank sees SME loans outgrowing industry

MANILA, Philippines - Metropolitan Bank & Trust Co. (Metrobank) expects loans extended to small and medium enterprises (SMEs) to grow at a faster rate than the industry performance.

Metrobank senior vice president and head of Business Banking Center Godofredo Cruz said in an interview with reporters the loans extended to SMEs would likely grow faster than the 20 percent growth of the Metrobank’s loan portfolio.

According to Cruz, the loan portfolio of Metrobank has reached P10 billion with a client base of 40,000 SMEs.

Cruz said about 99.6 percent of the 800,000 companies registered with the Department of Trade and Industry (DTI) are SMEs.

“I think that is a very big market that we can really work on,” he said.

Two years ago, Cruz said Metrobank came out with three simplified loan products including the “puhunan” loans, agri loans, and franchise financing loans for Metrobank SME.

He explained the loans could be used to fund additional working capital to expand businesses and to serve as credit line to bridge the gaps of the inflows and outflows.

Cruz said SMEs could borrow a minimum of P1 million to a maximum of P20 million. “We need to really generate volume,” he said.

Cruz said Metrobank SME also targets overseas Filipino workers (OFWs) as well as retirees who want to turn into entrepreneurs.

The loans require acceptable collaterals such as real estate properties or assignment of deposits or placements.

Metrobank is looking at growing its loan portfolio by 18 to 20 percent this year amid strong demand from both businesses and household clients.

The loan portfolio of the Metrobank Group stood at P740 billion in the first quarter of the year.

Metrobank’s net income slipped 10.6 percent to P5.08 billion in the first quarter of the year due to the absence of extraordinary gains from asset sales. Without the non-recurring gains from asset sales, its core net income would have gone up by over 50 percent.