Metrobank bullish over consumer market

The Metropolitan Bank and Trust Co. (Metrobank) wants a bigger slice of the consumer market in the face of a bloated corporate sector.

Metrobank senior vice president Bernardito Lapuz said they will be giving more and more emphasis on the consumer market as the corporate sector keeps its expansion efforts on hold.

In fact, Lapuz ventured to say that should Metrobank consider taking an aggressive stance regarding acquisition, "it would be a bank that offers value-added to Metrobank and that is a bank with a strong consumer base."

As always, bank executives expressed openess in the event of any opportunity. "We will always look into offers and possibilities," he added.

The senior vice president however made it clear that they will stay clear of the present client base of the Philippine Savings Bank (PSBank), which is also an affiliate of Metrobank.

"The present client base of the commercial bank is already substantial. We will not compete for the same market," Lapuz stressed.

Meanwhile, the country’s largest commercial bank withheld plans to increase its capital base after several successful fund-raising activities, both international and domestic, until it has digested fully the impact of the stricter risk-weight-to-capital Basle 2 ruling.

Metrobank president Arthur Ty said that management remains confident at the current capital adequacy ratio (CAR) of the bank, which stood at 17.9 percent end December.

"We are comfortable there are no plans to increase capital for now," Ty said.

Generally, the CAR of most banks will slip by 2.5 percentage points with the adoption of Basle 2 this July.

Year-on-year performance comparison, the bank’s consolidated net income grew by about 40 percent to P5.5 billion in 2006. A minimum budgeted profit level of 10 percent is achievable, officials said.

The country’s largest commercial bank in terms of assets is relying on its lending activities, particularly, consumer loans and project finance to support its income growth.

Metrobank is also undergoing changes in its operational flowchart to maximize its profit growth potential, including the implementation of cost-effective measures. This will be reflected on the efficiency ratio of the bank, a measure on how effective the country’s biggest lender is able to generate revenues faster than its total expense.

As of last year, Metrobank’s efficiency ratio stood at 62 percent, one of the highest in the industry.

"We recognized there are many things we still have to do. We must find innovative ways to maximize opportunities, moving our position of strength, accelerate transformation in order to keep us ahead of the pack," Ty told shareholders last week.