Metrobank sets aside P5 billion for capital expenses in 2024

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) has earmarked as much as P5 billion for its capital expenditures this year.

Of the total amount, the Ty-led bank has committed 70 percent to boost its information technology (IT) system.

For 2024, the bank estimates to incur capital expenditures of about P3 billion to P5 billion, of which 70 percent is estimated to be incurred for information technology,” Metrobank said in its latest preliminary information sheet.

The bank’s capital expenditures jumped by 27.4 percent to P4.7 billion in 2023 from P3.69 billion in 2022.

The earnings of the country’s second largest private bank in terms of assets hit a record-high P42.2 billion in 2023, 29 percent higher than the P32.78 billion booked in 2022, driven by asset expansion, higher margins, improving efficiency levels and better asset quality.

“This indicates that we are firmly on track with our long-term growth strategies supported by our highly capable and resilient team of Metrobankers and strong balance sheet. We look forward to further expanding our partnerships with all our stakeholders,” Metrobank president Fabian Dee earlier said.

Metrobank’s loan book rose by 8.4 percent to P1.54 trillion, driven by the 15.9 percent increase in its consumer portfolio on strong discretionary spending as well as the 5.5 percent rise in commercial loans.

Its total deposits went up by 7.3 percent to P2.38 trillion, with low-cost current and savings accounts accounting for more than 60 percent or P1.4 trillion.

According to Metrobank, the robust revenue growth offset the 14 percent increase in operating expenses to P69.52 billion in 2023 from P61 billion in 2022, which was driven by transaction-related taxes, technology costs and higher manpower in line with capacity expansion.

The bank’s provision for credit and impairment losses went up by 10.7 percent to P8.98 billion in 2023 from P8.11 billion in 2022.

Metrobank has an extensive consolidated network that spans over 940 domestic branches nationwide, more than 2,300 ATMs, and above 30 foreign branches, subsidiaries, and representative offices.