Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — 9M 2024 Earnings Presentation
35 slides from Metropolitan Bank & Trust's earnings presentation, October 2024
Slide 1: Company Presentation
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Slide 2: Macroeconomic View
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Slide 3: Recent macroeconomic developments
Recent macroeconomic developments Inflation Policy rate GDP 2021 2022 2023 1Q24 2Q24 1H24 2021 2022 2023 Sept-24 9M24 2020 2021 2022 2023 10M24 5.7% 7.6% 5.5% 5.8% 6.3% 6.0% 3.9% 5.8% 6.0% 1.9% 3.4% 2.0% 2.0% 5.5% 6.5% 6.00% • 2Q24 GDP rises 6.3%, boosted by strong • September inflation, the lowest
Slide 4: Banking industry trends
Banking industry trends Steady industry loan growth as npl ratio picks up CASA growth remains subdued; system still liquid Loan growth % Deposit growth % CASA growth % 17 18 14 18 11 11 11 11 10 11 11 15 20 9 9 9 8 18 6 7 16 12 4 10 9 10 14 12 8 9 9 9 9 10 14 7 7 8 7 8 7 -1 8 12 9 9 6 9 7 6 2 7 7 3
Slide 5: Financial Performance 9M 2024
FINANCIAL PERFORMANCE 9M 2024
Slide 6: 9M24 earnings highlights
9M24 earnings highlights Net Interest Income Fees and Other Non-Interest Income Trading & FX gains Operating expenses Provisions Taxes and NCI 200.0 Net Income Net Income YoY YoY 150.0 31.8 35.7 +12% 10.9 10.5 12.0 11.6 12.1 +11% 6.0 +11.1x 38.0 5.6 +56% 0.5 0.4 0.7 100.0 3.6 7.5 6.0 5.9 6.5 6.1 -19
Slide 7: Net interest income drivers
Net interest income drivers Asset expansion sustaining build-up in interest income Margins easing on higher funding costs Pbn Interest from Loans Interest expense from Deposits Pbn NII NIM Interest from Investments Other Interest Expense +11% YoY 80.0 Other Interest Income +4% YoY 160.0 90.0 3.93% 3
Slide 8: Loan portfolio profile
Loan portfolio profile Strong commercial and consumer growth Sustaining Outpacing double-digit industry loan growth growth Pbn Consumer Corporate & Commercial MBT Loan Growth YoY Industry Loan Growth YoY 1,700 1,650 +16% YoY 1,567 1,593 1,470 +3% QoQ 1,457 1,297 1,279 20% 15% 16% 1,333 14% 1,296 +17
Slide 9: Loan growth drivers
Loan growth drivers Robust demand from top and mid-sized corporates Credit card and auto loans still leading retail build up Pbn SME Corporate & Middle Market Pbn Others Auto Housing Credit Card & Others* 1,400 1,333 +17% YoY 366 1,296 345 354 +12% YoY 1,248 +3% QoQ 339 1,228 +4% QoQ 350 326 1,200 1
Slide 10: Deposit profile
Deposit profile Managing high cost deposits CASA ratio normalizing to pre-pandemic level Pbn TDs CASA CASA TDs 2,430 -3% YoY 2,347 2,383 2,375 2,500 2,284 -6% QoQ 37% 27% 24% 33% 2,221 41% 40% 41% 42% 38% 1,930 2,000 63% 73% 76% 67% 60% 62% 1,797 59% 59% 58% 1,714 1,408 1,390 1,439 1,392 +2% YoY 1,4
Slide 11: Margin drivers
Margin drivers Weaker 3Q NIM from funding strategy shift Stable to improving yields across loan segments Quarterly NIM Loan yield Asset yield Investment securities yield 18.0% Funding cost Deposit cost 16.1% 16.0% 15.4% 15.1% 15.2% 15.5% 7.5% Credit Cards 7.3% 7.2% 7.3% 7.3% 7.5% 14.0% 6.5% 5.7% 5.6
Slide 12: Non-interest income drivers
Non-interest income drivers Trading income recovery driving NoII growth Credit card growth driving fee income Pbn Others Asset sales Leasing Service Fees & Trust Trading & FX gains Others, -28% YoY 30.0 Credit Cards, +9% YoY 15% 29.0 YoY YoY 28.0 14.0 27.0 12.1 +50% 26.0 24.1 +5% Remittance, -0.4% Y
Slide 13: Operating expense breakdown
Operating expense breakdown Higher costs largely driven by capacity expansion Cost to income ratio kept at low 50s Pbn Other Expenses Technology Premises Taxes and licenses Compensation and fringe benefits 25.0 70.0 YoY YoY 55.0% 53.9% 53.3% 60.0 57.0 +11% 20.6 +17% 51.5% 52.2% 50.9% 51.3% 51.2% 18.
Slide 14: Provisions trend
Provisions trend Credit costs normalize but still below historical level NPL cover remains substantial Est. Credit Cost (bps) 350 293 350 350 300 300 300 250 250 250 200 200 200 150 67 91 150 150 49 59 59 100 58 56 100 57 29 100 14 12 50 50 50 187% - - - 180% 175% 172% 174% Pbn Cumulative Total Allo
Slide 15: Asset quality indicators
Asset quality indicators Stable asset NPL levels despite portfolio expansion NPL/Past Due ratios well below industry level Past Due ratio Industry Past Due Pbn Past Due NPL 60.0 4.5% 4.6% 4.2% 4.0% 4.3% 4.3% 4.4% 5.0% 3.8% 4.5% 4.0% 50.0 50.0 2.7% 3.5% 3.0% 2.5% 39 3.0% 2.8% 2.0% 36 40.0 35 35 1.9%
Slide 16: Asset quality indicators
Asset quality indicators Restructured loans remains minimal Combined NPLs and Restructured loans well below industry NPLs MBT Restructured loans ratio Industry Restructured Loans Ratio Industry NPL Ratio MBT Combined NPL + Restructured Loans as Ratio to Gross Loans 8.0% 4.5% 4.1% 3.1% 7.0% 4.0% 3.6%
Slide 17: Asset quality indicators per segment
Asset quality indicators per segment Commercial NPL ratio continues to ease Consumer NPL ratio well below industry levels NPL ratio NPL ratio Industry Consumer NPL ratio 16.0% 9.3% 9.3% 35 1.0% 1.6% 1.6% 1.7% 1.5% 1.4% 1.4% 1.3% 14.0% 12.0% 0.0% 30 6.5% 25 -5.0% 10.0% 6.0% 5.8% 5.8% 8.0% 4.1% 20 15
Slide 18: Consumer asset quality trend
Consumer asset quality trend Auto NPL ratio still improving Marginal uptick in Mortgage NPL ratio Slight pick-up in credit card NPL ratio NPL ratio Industry NPL ratio Industry NPL ratio Industry 14.0% 9.4% 8.9% 12.0% 9.2% 15.0% 10.7% 15% 12.0% 7.5% 8.4% 10.0% 7.1%6.9%6.9% 6.7% 10.0% 7.0% 6.8% 10% 6.
Slide 19: Other asset quality indicators
Other asset quality indicators Real and other properties acquired (ROPA) slightly lower Total non-performing assets (NPA) well under control Pbn ROPA Ratio to Gross Loans Pbn NPA NPA Ratio 15.0 0.8% 0.8% 0.9% 1.7% 1.5% 1.3% 50 2.0% 0.7% 0.7% 0.7% 0.7% 0.8% 1.2% 1.2% 1.2% 1.2% 1.1% 1.1% 13.0 0.7% 0.6
Slide 20: Capital and liquidity
Capital and liquidity High capital ratios offers strong buffers against risks Liquidity ratios well above threshold BLR 15.0% CAR CET-1 10.9% 11.4% 11.0% 9.7% 10.0% 9.4% 9.3% 9.2% 8.3% 9.0% 20.2% 20.1% 17.7% 18.4% 18.3% 16.8% 16.7% 17.1% 21.0% 5.0% 17.5% Min. BLR 5% 19.3% 19.3% 17.5% 0.0% 14.0% 16.2
Slide 21: Digital metrics on retail clients
Digital metrics on retail clients 2023 9M24 Digital penetration rate on a continuous upward trend, now at 41%, with 2.0M total digital users Active base up 22% YTD, 1.3M 1.6M which shows that 1.6M out of 41% the 2.0M are active users 39% 39% 37% 36% Note: Due to the decommissioning of MBS, active us
Slide 22: Return on Equity – Trend
Return on Equity – Trend Return on Equity (ROE) on an upward trajectory Medium-term ROE drivers 12.51% 12.83% 12.93% 10.29% Portfolio Growth 9.47% 6.89% • Grow loans portfolio by 1.5x-2.0x Real GDP 4.36% • Increase consumer to at least 25% of total portfolio Improve Operational Efficiency 2019 2020
Slide 23: Outlook – Positives and Challenges
Outlook – Positives and Challenges • Further recovery in discretionary spending and • A deterioration in macroeconomic conditions may sustained capex-led corporate demand. adversely affect improving consumer and business sentiment capping loan demand and pose risk to • Stable asset quality and high
Slide 24: Summary
SUMMARY Solid performance was sustained owing to robust asset growth, stable margins and healthy asset quality. Strong balance sheet and liquidity ratios have made Metrobank well-positioned to support clients' expanding needs in a growing economy. Investments in capacity and IT capabilities will be
Slide 25: Financial Summary
Financial Summary In PHP billion Income 3Q 3Q 9M 9M Balance Sheet 9M 2023 9M 2024 YoY YoY YoY Statement 2023 2024 2023 2024 Total Assets 2,957 3,335 13% Net Interest 26.7 27.8 4% 77.2 85.7 11% Loans and Receivables, Gross 1,470 1,700 16% Income Non Interest Total Deposits 2,347 2,284 -3% 8.0 12.1 50
Slide 26: Additional Information
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Slide 27: Metropolitan Bank & Trust Company (Metrobank)
Metropolitan Bank & Trust Company (Metrobank) Overview Financial Data (PHP bn) 9M 2024 DIVERSIFIED Total Assets 3,335 61 YEARS OF MULTI-AWARDED FINANCIAL CONGLOMERATE TRADING INFORMATION MBT PM | MBT.PS Ticker Loans and Receivables, Gross Total Deposits 1,700 2,284 SERVICE EXCELLENCE USD 6.1 Bn Mark
Slide 28: Ownership and Investment Information
Ownership and Investment Information CORPORATE STRUCTURE MARKET DATA Trading information Ticker: GTCAP PM / GTCAP.PS Market cap: USD2.0 Bn Ty Family Ticker (Bloomberg | Reuters) MBT PM | MBT.PS & Other Free Related float Par value (PHP) 20.00 Parties Outstanding shares 4,497,415,555 37.2% 14.7% 48.0
Slide 29: Extensive Domestic and Overseas Coverage
Extensive Domestic and Overseas Coverage Total Group 19,500+ employee base Note: Includes Parent + Major Subs of the Bank Domestic Branch and ATM Networks Overseas Network Coverage 956 29 branches Branches, subsidiaries, offices 2,304 ATMs 100+ Remittance tie-ups 150+ Remittance agents 2024 Metropol
Slide 30: Debt Issuances
Debt Issuances Unissued 2024 28.0 Bond Issuance 0.5 2022 76.3 USD22 Billion USD1 billion PHP2001 Medium-Term 2021 42.5 Billion Bond 1.0 Note 5-Y and 10-Y USD Notes Programme Programme Listed March 2024 2020 0.5 5-Y: 5.375% 19.0 23.7 10Y: 5.50% 2019 interest rate p.a. 2018 1The Board of Directors of
Slide 31: Loan Portfolio Breakdown
Loan Portfolio Breakdown MBT Loan Portfolio By Industry Philippine Banks Loan Portfolio By Industry 17% 14% 13% 15% 14% 14% 13% 13% 15% 13% 12% 12% 12% 11% 12% 11% 11% 11% 13% 13% 13% 10% 12% 10% 10% 11% 11% 10% 11% 11% 10% 10% 10% 10% 10% 15% 15% 18% 18% 19% 20% 21% 20% 20% 20% 20% 20% 20% 19% 18%
Slide 32: Currency Breakdown
Currency Breakdown LOAN PORTFOLIO DEPOSITS Foreign Foreign Currency, Currency, 18% 19% Philippine Philippine Peso, 82% Peso, 81% 2024 Metropolitan Bank & Trust Company 32 This document is for internal use only and may contain privileged, proprietary or otherwise private information. It must not be r
Slide 33: Recent Awards and Recognition
Recent Awards and Recognition Best Bank for Best Domestic Strongest Bank Best Bank of the Year Best Bank for Ultra- Corporate Private Bank in the Philippines in the Philippines Domestic Bank in High-Net-Worth* Responsibility in in the Philippines, the Philippines the Philippines Best Bank for Ultra-
Slide 34: For more information, please visit our website
For more information, please visit our website: Latest Annual Reports 2023 2022 2021 Financial Reports SEC 17-A SEC 17-Q BSP SOC Investor Relations https://metrobank.com.ph/about-us/investor-relations-program For your comments and queries contact us via: Annual Corporate Governance Report investor.r
Slide 35: Metrobank – You're in good hands
S Metrobank You're in good hands THE BANKER ‘THE ASIAN BANKER’ THE STRONGEST BANK BIN THE PHILIPPINES 2023 t by balance shee
Metropolitan Bank & Trust Company — 9M 2024 Earnings Presentation on 6ix