Metropolitan Bank & Trust Co., the second largest bank in terms of assets, will create a $2-billion medium-term note program to raise funds for future growth.
Metrobank said in a disclosure to the stock exchange the establishment of the note program was already approved by its board of directors in a meeting held earlier.
The bank said the note program would be “in the aggregate amount of up to $2 billion or its equivalent in other currencies [including, without limitation, US dollar, Philippine peso, Australian dollar, euro, Japanese yen, Great Britain’s pound, Chinese yuan [onshore] or Chinese yuan [offshore].”
It said it “may from time to time issue, offer and sell notes in such form, amount, currency, tenor, number of tranches, at such interest rate, and under such other terms and conditions as the management of the bank may subsequently determine, approve or ratify.”
“The program shall be established to afford the bank maximum flexibility in accessing markets and maximizing opportunities to raise funding expediently,” it said.
Metrobank said the issuance of notes should be subject to favorable market conditions, any applicable regulatory requirement and certain closing conditions and deliverables.
Metrobank offered long-term deposits amounting to P5 billion last year, taking advantage of excess liquidity in the financial system and low interest rates environment.
Metrobank’s net profit in 2016 fell 3 percent to P18.1 billion from P18.6 billion in 2015. However, net income in the fourth quarter rose 3 percent to P5.5 billion.
The bank grew its loan book faster than industry, and strategically re-positioned its balance sheet to provide a steady source of recurring income.
The bank’s current and savings account deposits increased 21 percent toP846 billion. Casa ratio improved to 61 percent of the total P1.4 trillion deposit base, from 56 percent a year ago and provided the liquidity to support loan growth.
Net loans and receivables increased 20 percent to breach the P1-trillion mark. The total loan portfolio hit P1.1 trillion, and accounted for 57 percent of total assets from 50 percent the previous year.
The commercial segment posted a 22 percent year-on-year growth, as the bank supported the long-term capital expenditures of its corporate clients and the working capital needs of the middle market and SME customers.
The consumer segment on the other hand maintained a solid volume growth of 16 percent, with auto loans growing fastest among the bank’s consumer assets.
Total non-interest income increased 37 percent year-on-year to P25.2 billion. This came from P11.6 billion in service charges, fees and commissions and trust operations; P8.1 billion in net trading and foreign exchange gains, and P5.5 billion in other income.
