Metrobank eyes P4-B net income this year

Industry leader Metropolitan Bank and Trust Corp. (Metrobank) is looking at a net income growth of between 16.6 percent to 33 percent to hit as much as P4 billion this year, from P3.02 billion in 2003.

Last year, the bank’s net income was better by 19.93 percent from the P2.52 billion in 2002.

In the first three months of this year alone, net earnings grew by 20 percent to roughly P480 million, from the P400 million recorded in the same period in 2003.

Bank officials said the drivers for growth this year will come mainly from lending activities, although the consumer lending market is expected to outpace corporate lending. That expectation hardly differs from the expectations of the entire commercial banking system.

Banks have already classified the corporate lending market this year as "flatish."

Metrobank executive vice president and chief financial officer Alfredo P. Javellana said that their branch rationalization and expansion domestically and internationally will contribute significantly to the bottomline, particularly the overseas Filipino workers (OFWs) and Filipino businesses.

Other than remittances, the OFW market also contributes in terms of consumer loans and investments through their families.

"We are looking at a 36-percent growth in consumer loans. We intend to go all out," Javellana told reporters.

However, Metrobank does not expect significant income from trading activities due to the low interest rate environment locally and overseas.

Another possible bonus for the optimistic income target is the possible disposal of a number of its bad assets either through its own efforts or through the special purpose vehicle (SPV) route.

The bank’s non-performing loans (NPLs) was placed in the vicinity of P30-billion at end-2003.

Consolidated resources in end-2003 reached P500.91 billion. Consolidated total assets increased by P28.71 billion or 6.08 percent from P472.20 billion in 2002.

"The increase came from growth in consolidated net receivables from customers (P17.83 billion, or 8.11 percent), trading and investment securities (P21.17 billion or 24.90 percent), interbank loans receivable and securities purchased under resale agreement (P9.58 billion or 37 percent), and equity investments (P2.64 billion or 56.76 percent)," Metrobank president Antonio Abacan said in his report during the annual stockholders meeting.