Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, will issue up to P100 billion worth of commercial papers to fund expansion and lending activities.
Metrobank said in a disclosure to the stock exchange Thursday its board of directors approved the P100-billion bond and commercial paper program in a meeting on Sept. 19, 2018.
It said the issuance would be conducted in one or more tranches and tenors of at least three months.
“The objective of the program is to support Metrobank’s lending activities and to diversify funding sources. Timing of the issuances will be subject to market conditions,” Metrobank said.
Metrobank remained one of the leading universal and commercial banks in the country in terms of assets, loans, and deposits.
The bank posted a net income of P11 billion in the first half, or 16 percent higher than the same period last year, fueled by the sustained strength of core businesses. Net income jumped 31 percent in the second quarter to P5.2 billion from P3.9 billion a year ago.
Metrobank president Fabian Dee said the solid performance was driven by the core business, as the double-digit growth in loans and sustained Casa (current and savings account) ratio lifted margins, while recurring expense growth was kept at a manageable level.
“We are pleased to see that our efforts continue to bear fruit. Coming from the heels of a successful capital raising at the start of the second quarter, we have started to build good momentum that should allow us to meet our growth targets,” Dee said.
“Together with achieving sustainable profitability, we are likewise making good progress in strengthening our risk management and operating controls,” he said.
The company said its loan growth guidance of high-teens was met, as the total portfolio expanded 18 percent year-on-year to P1.3 trillion. The commercial segment led the growth at 21 percent, driven by the strong performance of top corporate accounts followed by middle market and SMEs.