Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
This document is for internal use only and may contain privileged, proprietary, or otherwise private information. It must not be released to other parties in whatever form without prior consent of the authors.
PROPRIETARY AND CONFIDENTIAL
1
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017
Company Presentation
FY 2017
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Metrobank is a premier financial conglomerate with a diversified business portfolio
Strong market positions in the industry (as of Dec. 2017)
o Total assets: PHP2.1 trillion
o Total deposits: PHP1.5 trillion
o Total loans: PHP1.3 trillion
o Total equity: PHP202 billion; 14.4% Capital Adequacy Ratio, 11.8% CET1
o Local network: Over 950 branches and 2,300 ATMs
Investment Grade Ratings from Moody’s (Baa2) and Fitch (BBB-)
Solid track record spanning 55 years; established primarily to provide financial services to the Filipino-Chinese community; listed on the Phil. Stock Exchange in 1981
Majority-owned by the Ty family whose major business interests are in financial services, auto services, real estate development, infrastructure and insurance
Metropolitan Bank & Trust Company (“Metrobank”)
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Metrobank Highlights
DIVERSIFIED FINANCIAL CONGLOMERATE WITH 55 YEARS
OF SERVICE EXCELLENCE
SYSTEMICALLY IMPORTANT “BIG 3 BANK”, INVESTMENT GRADE AT
PAR WITH THE PHILIPPINES
CONSISTENTLY RECOGNIZED AS THE STRONGEST BANK IN THE
PHILIPPINES
PRUDENT BALANCE SHEET BUILD-UP AND EFFICIENT USE OF
CAPITAL TO DELIVER SUSTAINABLE GROWTH
EXTENSIVE NETWORK WELL-POSITIONED TO SERVICE THE
COUNTRY’S GROWING ECONOMY
2011 2012 2013 2014 2015 2016
952 branches
54% Countryside
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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1
2
3
Industry Leading Growth in Loans (+19%) and strong momentum in Low Cost Deposits growth (+12%) cementing MBT’s position as
one of the Big Three Banks 3.8% NIM, highest among peers driven by robust loan expansion and overall NII growth of 16%; Asset mix shift to loans positions MBT for further improvement in NII
Normalized level of trading gains; Positive fee growth being delivered
in “high value” services
4
Continued superior asset quality with better-than-
industry NPL ratio at 1.0%
5
Manageable 6% opex growth; reached optimal level of branch network and manpower complement
FY 2017 Summary
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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FY 2017 Financial Performance
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Key Performance Drivers (FY 2017)
• P18.2bn net income; Core income up 10%
• Sustained double-digit growth in loans (+19%) and low cost deposits (+12%)
• Net Interest Margin further improved from 3.5% to 3.8%
• Net Interest Income (+16%) accounts for 73% of total revenue
• Manageable OPEX growth (+6%)
• Better-than-industry* NPL ratio at 1.0%
Operating Income and OPEX (PHP bn) FY 2017 Operating Highlights
49.0 52.9 61.4
2.1 8.6
3.9 17.0 17.4 19.0
-40.2 -44.6 -47.5
FY 2015 FY 2016 FY 2017
NII Trading & FX Other Non-II** OPEX
NII +16%
OPEX +6%
*vs UKB Industry’s 1.4% Gross NPL Ratio as of Nov. 2017 **Includes Share in Net Income of Investees
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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50% 57% 61%
28% 19% 19%
22% 25% 21%
FY 2015 FY 2016 FY 2017
Loans Securities Others
Total Assets (%)
Asset Mix
887 1,061
1,265
492 354
388 381
461
427 1,761 1,876
2,080
FY 2015 FY 2016 FY 2017
Loans Securities Others
Total Assets (PHP bn)
Balance sheet shift in 2016 has positioned MBT to capitalize on strong momentum in loan growth
Loans
+19% YoY
Loans
+20% YoY
Exposure to securities reduced from 28% in 2015 to 19%
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Gross Interest Income Components (PHP bn)
Net Interest Income
Net Interest Margin (%)
Net Interest Income (PHP bn) Net Interest Income (PHP bn)
Resulting in more stable and predictable NII contribution and margin expansion
+16%
3.54% 3.54%
3.75%
FY 2015 FY 2016 FY 2017
49.0 52.9 61.4
FY 2015 FY 2016 FY 2017
12.4 12.7 12.7 12.9 13.4 13.9 14.5 15.1 15.7 16.1
Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
11.6 11.9 12.1 12.6 13.4 14.2 14.8 15.9 16.6 17.3
4.8 4.9 4.6 3.8 3.4 3.5 3.7 3.7 3.8 3.8
Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17
Gross Int Income Loans Gross Int Income Investments & Others
+21bps
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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887
1,061
1,265
FY 2015 FY 2016 FY 2017
Total Loan Portfolio (PHP bn)
Loan Portfolio
74% 75% 76%
26% 25% 24%
FY 2015 FY 2016 FY 2017
Commercial Consumer
Loan Portfolio Breakdown
Auto Finance 46%
Home Mortgage
33%
Credit Card & Others
21%
Consumer Portfolio Breakdown (FY 2017)
Loan growth continues to be driven by the commercial segment, aligned with macro economic expansion
+19% YoY
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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701
846
950
FY 2015 FY 2016 FY 2017
1,258
1,389
1,528
FY 2015 FY 2016 FY 2017
Total Deposits (PHP bn)
Deposit Profile
CASA (PHP bn)
Stable funding cost due to sustained double-digit growth in low cost (CASA) deposits
CASA % of Total Deposits
56% 61% 62%
+12% YoY
+10% YoY
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Non-Interest Income
9.8 10.3 11.0
1.2 1.3
1.4 11.0 11.6
12.4
FY 2015 FY 2016 FY 2017
Service Fees, Commissions Income from Trust
Service Fees, Commissions, Trust Income (PHP bn)
Change in Non-II driven primarily by expected normalization of trading and FX gains
19.2
25.9 22.8
FY 2015 FY 2016 FY 2017
Non-Interest Income (PHP bn)
2.1
8.6
3.9
FY 2015 FY 2016 FY 2017
Trading and FX Gains (PHP bn)
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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17,174
17,711 17,608
FY 2015 FY 2016 FY 2017
Operating Expenses Stabilizing opex growth in 2017 following build-up of frontline staff and branch expansion in 2015-16
Operating Expenses (PHP bn) Headcount*
945
959 952
FY 2015 FY 2016 FY 2017
Domestic Branches
* Includes FMIC, PSBank, MCC, OMLF
16.0 18.4 20.2
24.2 26.2
27.3
40.2
44.6 47.5
FY 2015 FY 2016 FY 2017
Manpower Expenses Other OPEX
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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12.1%
14.3%
12.5% 11.8%
8.50% 9.3%
10.1% 11.0%
16.0%
17.8%
15.5% 14.4%
10.0% 10.8%
11.6% 12.5%
FY 2014 FY 2015 FY 2016 FY 2017 2014-16 2017 2018 2019
Basel III Capital Ratios (%)
BSP minimum requirements with phased-in D-SIB charge
MBT BSP
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Additional Information
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
This document is for internal use only and may contain privileged, proprietary, or otherwise private information. It must not be released to other parties in whatever form without prior consent of the authors.
PROPRIETARY AND CONFIDENTIAL
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Industry Standing
Stake3
Leading Market Position in Key Segments
Business segment
-
Treasury and Trust Banking
#1 PDEX Securities
House
#3 Trust Assets
Under Management
99.2%
Investment Banking
Largest domestic
investment bank
#1 underwriter of PHP bonds
28.0%
Life insurance
JV with AXA
#2 in Premium income2
#4 by total
assets2
59.9%
Leasing
Leasing and financing JV
with ORIX Japan
82.7% 80.0%*
Retail Banking
Second largest savings bank in the country
#1 Auto Loan Portfolio
#3 Home Mortgage
Portfolio
#1 Credit Cards in Force1
#1 Receivables1
1 Based on Credit Card Association of the Philippines; 2 Insurance Commission (2016)
* To increase to 100% by Q3 2018
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Domestic Branch Network
Extensive Domestic and Overseas Coverage
Overseas Network Coverage
As of December 31, 2017
33 Branches, subsidiaries, offices
134 Remittance tie-ups 184
Remittance agents
952 branches
2,352 ATMs
Provincial Distribution: Luzon outside MM: 30% Visayas + Mindanao: 24%
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Recent Awards and Recognition
Corporate Governance
Award
Best Auto Loan
Product
Strongest Bank -Philippines
#1 Secondary Trading Gov’t and Corporate Bonds
Best Securities House Bank Category
2016 2015 & 2016 2015 & 2016 2016 2015 & 2016
Best Commercial Bank - Philippines
Best UITF Fund Provider -
Philippines
Retail Payment Product of the Year
Best Trade Finance Bank - Philippines
#69 Global 2000: World's Best Employers
2017 2017 2017 2017 2017
Institutional Investors Governance Awards
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Investment Grade Rating
Baa2
BBB- BBB-
Baa2
Sovereign Rating Bank Financial Strength
Metrobank was upgraded by Fitch in January 2018
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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Ownership structure (major business units)
As of January 2018
Ty Family / MBT
Foundation
14.93%
Free float
48.98% 36.09%
Listed on PSE
99.2%
Investment Banking Leasing
59.9%
Savings Bank
82.7%
Credit Cards
80.0%*
28.0%
Listed on PSE
Bancassurance JV between Metrobank and ANZ *Note: To increase to 100% by Q3 2018
JV between AXA, Metrobank Group and GT Capital (25.3% owned)
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
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PROPRIETARY AND CONFIDENTIAL
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www.metrobank.com.ph
Annual Reports
https://www.metrobank.com.ph/annualreports.asp
Company Disclosures
https://www.metrobank.com.ph/investor_relations.asp
Financial Reports
https://www.metrobank.com.ph/financialreports.asp
Corporate Governance Report
https://www.metrobank.com.ph/acgovernance.asp
Useful links
Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation
This document is for internal use only and may contain privileged, proprietary, or otherwise private information. It must not be released to other parties in whatever form without prior consent of the authors.
PROPRIETARY AND CONFIDENTIAL
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For your comments and queries contact us via:
Tel: (632) 857 9783
DISCLAIMER: This material was produced by Metrobank Investor Relations Department for information purposes only and is intended to be used in presentations by the Bank at investor meetings and does not constitute a recommendation regarding the securities of the Bank or any of its affiliates. The information contained herein (including, among others, the market data, industry data and other industry statistics included in this presentation derived from public or third party sources) has not been independently verified and thus no representation or warranty, express or implied, is made as to the fairness, accuracy, currency, completeness or correctness of the information, opinions and conclusions contained in this presentation by the Company. Accordingly, no reliance should be placed on the fairness, accuracy, currency, completeness or correctness of this presentation, nor any inferences drawn from the manner in which the contents have been compiled and presented. Unauthorized distribution, alteration, or reproduction, whether in whole or in part in any form, is strictly prohibited by the Company. Data presented here was taken from publicly available sources (PSE, SEC, BSP). In case of any discrepancy, the information from the public sources will prevail.