Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — Q4 2022 Earnings Presentation
42 slides from Metropolitan Bank & Trust's earnings presentation, Feb 27, 2023
Slide 1: Company Presentation
COMPANY PRESENTATION @ Metrobank A voure in good hands
Slide 2: 2023 Metropolitan Bank & Trust Company This material was produced by Metrobank for information
2023 Metropolitan Bank & Trust Company 2 This material was produced by Metrobank for information purposes only and is intended to be used in presentations by the Bank at investor meetings and does not constitute a recommendation regarding the securities of the Bank or any of its affiliates. It must
Slide 3: Macroeconomic View
MACROECONOMIC VIEW > Metrobank aa You're in good hands
Slide 4: Macro-economic backdrop
Macro-economic backdrop Inflation Policy rate GDP 2020 2021 2022 Jan-23 2020 2021 2022 2M23 2020 2021 2022 2.4% 3.9% 5.8% 8.7% 2.0% 2.0% 5.5% 6.0% -9.5% 5.7% 7.6% • 2022 GDP back to pre-pandemic levels; growth • Continued rise in food, housing, water, exceeded the government's target of 6.5-7.5% ele
Slide 5: Metrobank Economic Research Forecasts
Metrobank Economic Research Forecasts As of February 21, 2023 2021A 2022A 2023F 2024F GDP 5.7% 7.6% 6 – 7% 6 – 7% (2018=100) (DBCC1: 6.0-7.0%) (DBCC1: 6.5-8.0%) (IMF: 5%) (IMF: 6%) Inflation 3.9% 5.8% 5.0 – 6.0% 4.5 – 5.5% (2018=100) (DBCC1: 2.5-4.5%) (DBCC1: 2.0-4.0%) (BSP, 6.1%2) (BSP, 3.12) BSP R
Slide 6: Banking Industry: Loan recovery amid improving NPLs
Banking Industry: Loan recovery amid improving NPLs Recovery in loan growth continues, asset quality improves Easing deposit and CASA growth Loan growth Deposit growth CASA growth 17% 18% 14% 18% 20% 15% 15% 15% 14% 9% 9% 11% 11% 12% 6% 15% 10% 8% 9% 9% 7% 9% 2% 4% 10% 7% -1.2% 5% 14% 12% 0% 9% 7% 9
Slide 7: Financial Performance FY 2022
FINANCIAL PERFORMANCE FY 2022
Slide 8: Record net income; better performance in most fronts
Record net income; better performance in most fronts Net Interest Income Fees and Other Non-Interest Income Trading & FX gains Operating expenses Provisions for credit losses Taxes and NCI YoY YoY Net 200.0 Net Income 13.8 22.2 32.8 +48% Income 6.0 8.0 7.6 7.8 9.3 +55% 35.0 150.0 1.5 +53% -25% 1.0 2
Slide 9: Improving net interest income and NIM
Improving net interest income and NIM Interest income building up Margins still on an uptrend Pbn Interest from Loans Interest expense from Deposits Pbn NII Quarterly NIM Interest from Investments Other Interest Expense Other Interest Income 4.00% 37.0 27.0 3.65% 3.73% 32.0 Rising accrual 3.40% +25%
Slide 10: Loan book expanding, driven by corporate demand
Loan book expanding, driven by corporate demand Strong commercial demand driving loan growth Positive loan momentum sustained Pbn Consumer Corporate & Commercial MBT Gross Loans growth +14% YoY 1,457 1,372 +6% QoQ 14% 1,279 1,322 12% 1,263 9% 5% +15% YoY 1,164 1,049 1,092 +7% QoQ 1,011 996 -1% -4% -
Slide 11: Corporate segment driving loan demand
Corporate segment driving loan demand Corporate continues to lead growth Loans by remaining maturity (Parent only) Pbn SME Corporate & Middle Market Long term Short term 1,400 1,164 +15% YoY 1,200 1,092 +7 QoQ 1,049 1,011 996 1,000 44% 57% 56% 53% 800 60% +23% YoY +17% YoY 1,046 600 937 981 +7% QoQ
Slide 12: Consumer loans driven by credit cards
Consumer loans driven by credit cards Consumer Loans Breakdown Consumer Loans By Product Pbn Others Auto Housing Credit Card* 350.000 +9% YoY 292 +4% QoQ 280 300.000 269 267 273 34% 35% 37% 38% 40% +27% YoY 250.000 107 116 +9% QoQ 92 93 100 200.000 36% 36% 35% 150.000 33% 32% -4% YoY 98 96 94 94 94
Slide 13: Encouraging trends in big-ticket consumer loans production
Encouraging trends in big-ticket consumer loans production New car loans production accelerates New home loans on an uptrend +70% YoY +25% YoY New car loans New home loans 200% 150% 150% 105% 230% 179% 100% 68% 70% 51% 180% 50% 25% 130% 42% 80% 34% 0% 21% 25% -9% 30% 3% -50% -49% -20% -33% -4% -70%
Slide 14: Stable CASA generation
Stable CASA generation CASA continues to pick up CASA ratio eases but still above pre-pandemic level Pbn TDs CASA CASA TDs 24% 29% 28% 29% 33% 2,500 +15% YoY 2,221 +8% QoQ 76% 2,061 2,049 71% 72% 71% 67% 2,042 2,000 1,930 4Q21 1Q22 2Q22 3Q22 4Q22 +1% YoY 1,500 1,480 +1% QoQ CASA Deposits per Branch
Slide 15: Improving margins
Improving margins Better asset yields offsetting uptick in funding costs Stable to improving yields across segments 18.0% Quarterly NIM Loan yield Asset yield Investment securities yield 16.0% 15.0% 14.3% 14.3% 14.1% Funding cost Deposit cost 13.5% 14.0% 6.5% 6.2% Credit Cards 5.5% 5.6% 12.0% 5.5% 5
Slide 16: Rising fee income driving non-interest income growth
Rising fee income driving non-interest income growth Modest growth in non-interest income Healthy fee income… Pbn Others Gain On Asset Sales Pbn Fee income Trust income Leasing Service & Trust Fees YoY 7.0 Trading & FX gains 20.0 18.0 16.6 +10% 6.0 YoY 35.0 16.0 15.1 1.5 YoY -7% 14.0 1.7 5.0 4.1 4.0
Slide 17: Costs kept under control
Costs kept under control Steady opex levels Improving cost-to-income ratio Pbn Occupancy & equipment Depreciation Taxes & licenses Manpower 25.0 YoY 65.0% 70.0 61.0 +3% 59.0% 59.5 YoY 60.0% 54.3% 20.0 54.5% 60.0 55.0% 54.1% 53.8% 16.5 +10% 50.0 26.1 +3% 15.0 14.9 14.6 15.1 50.0% 25.3 15.0 +15% 7.1 4
Slide 18: Lower provisions, ample cover maintained
Lower provisions, ample cover maintained Credit costs continue to ease Hefty provision cover Est. Credit Cost (bps) 350 293 300 250 200 150 70 92 59 100 196% 50 175% 179% - Pbn Cumulative Total Allowance Provisions for Credit 172% 172% 60.0 60.0 50.4 47.8 47.1 50.0 50.0 40.0 40.0 40.8 30.0 30.0 20.0
Slide 19: Asset quality better than industry
Asset quality better than industry NPL and Past Due loans NPL and Past Due ratios much lower than industry Past Due ratio Industry Past Due Pbn Past Due NPL 4.8% 6.0% 4.6% 60.0 4.2% 4.0% 3.8% 5.0% 4.0% 50.0 3.0% 50.0 2.8% 3.0% 2.0% 36 37 2.5% 2.5% 2.2% 35 40.0 1.0% 32 32 40.0 0.0% 30.0 30.0 4Q21 1Q2
Slide 20: Asset quality better than industry
Asset quality better than industry Restructured loans level off Combined NPLs/Restructured still below Industry NPL Ratio Ratio to Gross Loans Industry Restructured Loans Ratio Industry NPL Ratio MBT Combined NPL + Restructured Loans as Ratio to Gross Loans 4.5% 3.1% 3.0% 4.0% 2.9% 2.8% 3.5% 2.6% 8.
Slide 21: NPLs remain manageable
NPLs remain manageable Commercial NPLs Consumer NPLs NPLs NPL ratio NPL ratio Industry Consumer NPL ratio 16.0% 9.3% 9.0% 14.0% 8.1% 35 1.6% 1.7% 1.5% 1.9% 1.7% 12.0% 7.2% 10.0% 8.0% 0.0% 4.2% 30 6.0% 3.8% 3.3% Pbn 4.0% 2.8% 2.8% 25 21 2.0% 20 -5.0% 0.0% 25 17 20 17 16 20 Pbn -10.0% 15 15 11 10 10 1
Slide 22: Consumer NPLs well below industry levels
Consumer NPLs well below industry levels Auto Home Credit Cards NPLs NPL ratio Industry NPLs NPL ratio Industry NPLs NPL ratio Industry 20 14.0% 9.4% 9.4% 12.0% 11.4% 20 15.0% 8.6% 20 18 10.6% 15% 7.9% 12.0% 18 18 16 9.3% 10.0% 16 16 14 6.5% 10.0% 14 14 6.8% 5.8% 10% 5.0% 8.0% 12 5.2% 12 5.1% 4.7% 1
Slide 23: Other asset quality indicators remain stable
Other asset quality indicators remain stable Real and other properties acquired (ROPA) Non-Performing Assets (NPA) Pbn Pbn ROPA Ratio to Gross Loans NPA NPA Ratio 15.0 0.8% 0.8% 0.8% 0.9% 50 1.5% 2.0% 0.8% 0.7% 0.8% 1.4% 1.3% 1.4% 1.3% 13.0 1.5% 45 0.7% 1.0% 11.0 40 0.6% 0.5% 9.0 0.5% 35 0.0% 7.0 0.
Slide 24: Healthy capital and liquidity levels provide ample support
Healthy capital and liquidity levels provide ample support Capital Ratios above minimum thresholds High Basel III Leverage Ratio, Liquidity Coverage Ratio CAR CET-1 BLR LCR 20.1% 19.3% 18.5% 17.6% 21.00% 327% 21.0% 17.2% 17.7% 17.6% 16.8% 350% 16.3% 16.8% 15.0% 17.5% 17.50% 300% 284% 11.0% 249% 232%
Slide 25: Improving digital metrics on retail clients
Improving digital metrics on retail clients Digital penetration rate on a continuous upward trend, 2019 2020 2021 2022 now at 32%, with 1.4M total digital users 575K 730K 920K 1.3M 32% 31% 29% 28% Active base with over 1M users – 87% active rate 26% vs 81% pre-pandemic 23% 19% Continuous growth in m
Slide 26: Special dividend declaration in 2023
Special dividend declaration in 2023 1. Improving growth prospects Sufficient buffer to cover healthy loan demand over the medium term Key information Regular Cash • Php1.60 2. Strong NPL risk buffers already in place Dividends • Semi-annual payout per share NPL cover remains ample vs. risk of risin
Slide 27: Outlook – Positives and Challenges
Outlook – Positives and Challenges • Loan growth to move in line or better than GDP • Macro risks to demand recovery and asset quality: growth o External - geopolitical issues; recession o Internal - inflationary pressures, forex volatility • Sustained NIM improvement on rising yields • Tighter mark
Slide 28: Summary
SUMMARY Sustained strong performance: rising loans, better margins, healthy fee income, stable operating costs and lower provisions. Improving profitability levels will support continued investments in IT and manpower assets to make banking easy and secure for our customers. Strong capital base and
Slide 29: Financial Summary
Financial Summary In PHP billion Balance Sheet FY 2021 FY 2022 YoY Income Statement FY 2021 FY 2022 YoY 4Q 2021 4Q 2022 YoY Total Assets 2,503 2,843 +14% Net Interest Income 75.0 85.5 +14% 18.7 23.4 +25% Loans and Receivables, 1,279 1,457 +14% Gross Non Interest Income 26.4 27.5 +4% 6.9 7.4 +7% Tota
Slide 30: Additional Information
ADDITIONAL INFORMATION > Metrobank aa You're in good hands
Slide 31: Metropolitan Bank & Trust Company (Metrobank)
Metropolitan Bank & Trust Company (Metrobank) Overview Financial Data (PHP bn) 2022 DIVERSIFIED Total Assets 2,843 60 YEARS OF MULTI-AWARDED FINANCIAL CONGLOMERATE TRADING INFORMATION MBT PM | MBT.PS Ticker Loans and Receivables, Gross Total Deposits 1,457 2,221 SERVICE EXCELLENCE USD 4.8 Bn Market
Slide 32: 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 33: Extensive Domestic and Overseas Coverage
Extensive Domestic and Overseas Coverage Total Group 17,000+ employee base Domestic Branch and ATM Networks Overseas Network Coverage 947 30+ branches Branches, subsidiaries, offices 2,311 ATMs 130+ Remittance tie-ups 150+ Remittance agents 2023 Metropolitan Bank & Trust Company 33 This material was
Slide 34: Recent Awards and Recognition
Recent Awards and Recognition Best Corporate Bank; Most Helpful Bank in Strongest Bank Top Banking Bank of the Year Best Bank Best Domestic the Philippines; 10th in Employer Asia Pacific During in the Philippines in the Philippines in the Philippines Private Bank in the Philippines COVID-19 in the P
Slide 35: Meaningful Sustainability
Meaningful Sustainability GOAL 8 Decent Work and Economic Growth – Equivalent to P195 billion. Supported 206 businesses engaged in large scale retail activities, holding companies and financial institutions needing access to financial capital, hotels and restaurants, and professional and technical s
Slide 36: Sustainability: Our Progress in 2021
Sustainability: Our Progress in 2021 Formalizing the governance structure Improving our disclosures: The Board, through the Executive Committee, does the oversight and Senior Management executes the sustainability framework. Our 2021 Sustainability Report The dedicated Sustainability Department, tog
Slide 37: Debt Issuances
Debt Issuances Unissued 2022 28.0 0.5 Bond Issuance 2021 76.3 USD2 Billion PHP23.7 billion PHP200* Medium-Term 42.5 Billion Bond 1.5Y Peso Notes 2020 Programme Note Programme Listed October 2022 2019 1.5 5.0% interest rate p.a. 19.0 23.7 2018 *Note: The Board of Directors of Metrobank approved to up
Slide 38: Outstanding Debt Issuances & Investment Grade Credit Ratings
Outstanding Debt Issuances & Investment Grade Credit Ratings Debt Issuance Details Debt Maturity Profile (PHP Bn) Baa2 Jul-22 Stable Issue Coupon Maturity Amount • Robust capitalization, with a proven Type Date Rate Date (PHP Bn) history of support from shareholders 2023 22.40 • Strong funding and l
Slide 39: Loan Portfolio Breakdown
Loan Portfolio Breakdown MBT Loan Portfolio By Industry Philippine Banks Loan Portfolio By Industry 13% 14% 15% 14% 15% 12% 12% 12% 12% 12% 11% 10% 11% 11% 11% 13% 13% 13% 13% 13% 21% 21% 21% 20% 20% 18% 17% 17% 16% 15% Trade Manufacturing 9% 9% 9% 9% 9% 13% 12% 12% 13% 12% Real estate 10% 10% 10% 1
Slide 40: Currency Breakdown
Currency Breakdown LOAN PORTFOLIO DEPOSITS Foreign Foreign Currency, Currency, 19% 15% Philippine Peso, 85% Philippine Peso, 81% 2023 Metropolitan Bank & Trust Company 40 This material was produced by Metrobank for information purposes only and is intended to be used in presentations by the Bank at
Slide 41: For more information, please visit our website
For more information, please visit our website: Latest Annual Reports 2021 2020 2019 Financial Reports SEC 17-A SEC 17-Q BSP SOC Investor Relations https://metrobank.com.ph/about-us/investor-relations-program Annual Corporate Governance Report For your comments and queries contact us via: https://me
Slide 42: Metrobank
<< Metrobank EA Vourre in good hands ‘THE ASIAN BANKER’ ry Best Domestic Bank BANKQUALITY.COM STRONGEST BANK Inthe Phigiies oa ser 38 IN PHILIPPINES 2021 Asiamoney Best Bank Awards 2021 Pa Se RE by balance sheet
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