Metrobank board okays sale of CDs worth P25 billion

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, plans to raise up to P25 billion through the issuance of long-term negotiable certificates of deposits in a bid to fund future growth and expansion.

Metrobank said in a disclosure to the stock exchange Thursday the board approved the plan in a meeting a day ago.

“The board of directors of Metropolitan Bank & Trust Co. on Sept. 18, 2019 approved the issuance of PHP-LTNCD of up to P25 billion in one or more tranches of at least P2 billion per tranche,” the bank said.

It said the notes would have “tenors of 5.5 up to 10 years, subject to regulatory approval and market conditions.”

Earlier this month, Metrobank said it was also planning to raise at least P5 billion through the issuance of the fourth tranche under its P100-billion bond and commercial paper program.

The bank tapped ING Bank N.V., Manila branch and Standard Chartered Bank as lead arrangers for this issuance.

“This fourth tranche will have a tenor of at least three and a half years to be priced using the applicable interpolated PHP BVAL Reference Rate benchmark. The bank is looking to raise at least P5 billion, with the option to upsize,” it said.

The final issue size, terms, and timing of the issuance will be subject to market conditions.

Metrobank has raised an aggregate of P56.75 billion from offerings of peso bonds since November 2018.

The bank in the first half continued to solidify its strong position as one of the biggest lenders in the country in terms of assets, loans, deposits, and branch network.

Net income in the first six months jumped 18 percent to P13 billion from P11 billion in the same period last year on sustained strength in core businesses.

The deposit base hit P1.6 trillion, with CASA (current account, savings account) ratio at 61 percent to total deposits.

Credit demand was mainly broad-based, as both the commercial segment (comprised of corporate, middle market and SMEs) and consumer portfolio  (including mortgage, auto, and credit cards) posted mid-single digit growth.

Net interest margin grew by 6 basis points to 3.83 percent.

Net interest income rose 10 percent to P36.5 billion, accounting for 73 percent of the bank’s total revenues of P50.2 billion. Non-interest income stood at P13.7 billion, up 16 percent year-on-year.

The bank’s consolidated assets totaled P2.3 trillion while equity stood at P296.5 billion.