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AFTER
incurring a 15.6-percent drop in net income in the first
quarter, Metropolitan Bank and Trust Co. (Metrobank) is
drawing strength from its subsidiaries by expanding
product offerings.
In a
phone interview, Jete Gamboa, Metrobank assistant vice
president for investment relations, said the bank
intends to “maximize” its subsidiaries by forming
synergies for the development of news products.
She said
that among Metrobank Group’s subsidiaries that will be
maximized are Philippine Savings Bank, Toyota Motor
Philippines, Metrobank Card Corp. and Philippine AXA
Life Insurance Corp.
In a
report to investors during the firm’s annual
stockholder’s meeting on Wednesday, Metrobank president
Arthur Ty said the bank is bracing itself for a tougher
year because of uncertainties in the global financial
markets.
“With
continued global risk aversion, heightened competition
and rising inflation and interest rates, the banking
industry’s operating environment has become difficult
compared to last year.”
For the
first quarter of 2008, Metrobank reported P1.8 billion
in net income attributable to common shareholders, a
15.6-percent year-on-year drop. Net loans and
receivables, however, grew 15.5 percent year-on- year
and 2.9 percent quarter-on-quarter to P 314 billion,
because of a strong consumer segment.
To
improve asset quality, the bank sold a total of P2.1
billion in foreclosed assets for the first quarter. Its
consolidated nonperforming loan ratio, or NPL, fell to
4.9 percent from 7.6 percent a year earlier.
“Economic growth is expected to be slower than last
year’s 7.3 percent, but will continue to be fueled by
the services industry and by consumption demand. Loan
growth will ride on the prospects of the economy, with
demand expected from the power, telecommunications,
infrastructure, tourism and business-process outsourcing
sectors. Inflation will remain a pressing concern this
year, thus giving upward pressure to interest rates,” Ty
said.
“In this
challenging environment, Metrobank will capitalize on
the group’s franchise value to find synergies and expand
product offerings to serve customers better. The bank’s
established brand, leading position in core businesses
and the healthy state of its balance sheet should make
it better equipped to take on the challenges ahead,” he
added.
For 2007
the bank posted a 27-percent year-on-year growth in its
net income from a buildup of common shares worth P7
billion.
Metrobank retained its position as the industry’s No. 1
bank as consolidated assets grew 10 percent to P 716
billion.
Ty said
that the group’s key subsidiaries “continued to perform
well.”
First
Metro Investment Corp., its investment-banking arm,
cornered 80 percent of the P111 billion in funds raised
from the fixed-income market, closing the year with a
consolidated net income of P1.4 billion, up 33 percent
from a year earlier.
Philippine Savings Bank, its thrift-bank subsidiary,
posted P1 billion in net income for 2007, up 23 percent.
Credit-card receivables grew 29 percent as Metrobank
Card, its partnership with ANZ, increased its market
share to 15 percent and hit a record income of P782
million. |
