Metrobank completes P60 billion stock rights offer

MANILA, Philippines — Metropolitan Bank & Trust Co. has raised P60 billion from the sale of new shares to existing shareholders as the listed bank intends to capitalize on the growth opportunities of large cap corporates and especially in its core franchise, the middle market, and small to medium enterprises segments.

The country’s second largest bank in terms of assets, owned by taipan George SK Ty, sold 799.84 million to existing shareholders led by GT Capital Holdings at P75 per share.

“The offer was taken up entirely by the bank’s existing shareholders, with broad support seen across the shareholder base resulting in a substantial oversubscription. The bank believes the success of the offer represents a strong vote of confidence from investors in the bank and its strategy,” it said in a disclosure to the Philippine Stock Exchange (PSE).

Metrobank said the robust growth of the Philippines would continue to support loan expansion across the various segments of the economy.

“Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans, and home mortgage,” it added.

The fund raising exercise will allow Metrobank to pursue its business prospects, leveraging on the bank’s sales and distribution network that has rapidly expanded in preceding years.

“To that end, the bank intends to focus on enhancing customer experience through digitization initiatives and branch efficiencies and value propositions to target clients,” it said.

Likewise, a portion of the proceeds of the fund raising activity will be used to purchase the remaining 20 percent equity stake of ANZ Funds Pty Ltd in Metrobank Card Corp. (MCC) by the third quarter.

The bank has acquired the 20 percent interest of its foreign joint venture partner for P7.4 billion after getting the approval of the Bangko Sentral ng Pilipinas (BSP) last December.

After the transaction, MCC will be a wholly-owned subsidiary of Metrobank. It is the industry leader in terms of cards-in-force and receivables based on the latest data from the Credit Card Association of the Philippines (CCAP).

Furthermore, Metrobank said the additional capital would further enhance its capital ratios, keeping it well above the Basel III requirements.

The bank had a total capital adequacy ratio of 18.1 percent, and common equity tier 1 ratio of 15.6 percent as of end-December, both ratios above the BSP requirements, inclusive of the domestic systemically important bank (DSIB) buffer.

Metrobank booked a net income of P18.2 billion as its assets rose to a record P2.1 trillion last year. It ended 2017 with 952 branches and 2,352 ATMs nationwide.