Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — 9M 2020 Earnings Presentation
25 slides from Metropolitan Bank & Trust's earnings presentation, Nov 4, 2020
Slide 1: 9M 2020 MBT Company Presentation
PRIVATE AND PROPRIETARY © Metropolitan Bank & Trust Company | Investor Relations | 4 November 2020 | 9M 2020 MBT Company Presentation 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 consti
Slide 2: PRIVATE AND PROPRIETARY © Metropolitan Bank & Trust Company | Investor Relations | 4
PRIVATE AND PROPRIETARY © Metropolitan Bank & Trust Company | Investor Relations | 4 November 2020 | 9M 2020 MBT Company Presentation 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 consti
Slide 3: Macroeconomic View
PRIVATE AND PROPRIETARY MACROECONOMIC VIEW © Metropolitan Bank & Trust Company | Investor Relations | 4 November 2020 | 9M 2020 MBT Company Presentation 3 This material was produced by Metrobank for information purposes only and is intended to be used in presentations by the Bank at investor meeting
Slide 4: Global COVID-19 Recession in 2020
PRIVATE AND PROPRIETARY Global COVID-19 Recession in 2020 Global Recession in 2020, Rebound in 2021 Philippines has space for fiscal stimulus Brent Oil prices still below previous years’ levels on weak demand Philippine Peso strength/US Dollar under pressure © Metropolitan Bank & Trust Company | Inv
Slide 5: Loose Monetary & Quantitative Easing
PRIVATE AND PROPRIETARY Loose Monetary & Quantitative Easing RRR cuts to support liquidity Deep policy rate cuts to record-low level 20% 20% 20% 20% 4.75% 4.50% 18% 18% 4.00% 4.00% 4.00% 3.50% 14% 12% 3.00% 2.25% 2013 2014 2015 2016 2017 2018 2019 9M20 2013 2014 2015 2016 2017 2018 2019 9M20 Support
Slide 6: Banking Industry: Loan Slowdown Amid Ample Liquidity
PRIVATE AND PROPRIETARY Banking Industry: Loan Slowdown Amid Ample Liquidity Loan growth had a strong start this year Deposit growth and M3 growth sustained in early months but tempered by economic slowdown but can slow down depending on overall market liquidity Loan growth Deposit growth 20% 19% 34
Slide 7: PH Big Banks: Adequately Capitalized
PRIVATE AND PROPRIETARY PH Big 3 Banks: Adequately Capitalized The country’s largest banks have substantial capitalization, way above the minimum threshold set by the BSP. 31 December 2009 30 September 2020 CAR Tier 1 CAR CET1 19.9 19.0 16.0 14.7 16.0 16.4 14.3 15.5 13.0 14.1 14.3 12.6 12.2 13.2 Min
Slide 8: GDP Forecasts
PRIVATE AND PROPRIETARY Metrobank Economic Research Forecasts As of October 2020 2019A 2020F 2021F GDP 6.0% -6.8% 7.0% Inflation 2.5% 2.4% 2.6% BSP RRP rate 4.0% 2.0% 2.5% RRR 14% 10% USDPHP Trend 50.7 48.2 46.6 With upward bias DBCC* -5.5% 7.0% ADB -7.3% 6.5% GDP Forecasts DISCLAIMER INFORMATION Th
Slide 9: Financial Performance
PRIVATE AND PROPRIETARY FINANCIAL PERFORMANCE 9M 2020 © Metropolitan Bank & Trust Company | Investor Relations | 4 November 2020 | 9M 2020 MBT Company Presentation 9 This material was produced by Metrobank for information purposes only and is intended to be used in presentations by the Bank at inves
Slide 10: Strong core business growth tempered by prudent provisioning
PRIVATE AND PROPRIETARY Strong core business growth tempered by prudent provisioning Strong results across all metrics, moderated by proactive provisioning and reserves build-up Net Income Pre-provision Operating Profit Resilient core business; continued build up of reserves • Strong +17% NII growth
Slide 11: Solid net interest income despite economic slowdown
PRIVATE AND PROPRIETARY Solid net interest income despite economic slowdown Sustained growth in Net Interest Income propelled by strong CASA growth and lower funding cost Net Interest Income Net interest income growth despite challenges +17% YoY 23.1 21.4 21.4 65.9 20.8 19.7 18.4 18.1 56.2 Q1 Q2 Q3
Slide 12: Loan portfolio performance aligned with the economy
PRIVATE AND PROPRIETARY Loan portfolio performance aligned with the economy Contraction in loan portfolio reflective of the slowdown across industries and gross capital formation Contraction in net loan portfolio… … aligned with weakness in GDP and Gross Capital Formation GDP Gross Capital Formation
Slide 13: Commercial lending reflective of GDP contraction
PRIVATE AND PROPRIETARY Commercial lending reflective of GDP contraction Slowdown in commercial loans as economic uncertainty disrupted business inventory cycle and deferred expansion plans Commercial Loans Breakdown Short term working capital loans drove the slowdown Corporate Middle Market and SME
Slide 14: Retail portfolio slows amid weak consumption spending
PRIVATE AND PROPRIETARY Retail portfolio slows amid weak consumption spending Consumer loans declined amid economic uncertainty, which limited consumption to essential goods and deterred big-ticket spending Consumer Loans Breakdown Consumer Loans By Product Auto Housing Credit Card & Others 337 347
Slide 15: Strong deposit franchise with sustained CASA growth
PRIVATE AND PROPRIETARY Strong deposit franchise with sustained CASA growth Low cost deposit levels are holding as customers prefer to stay liquid; strong CASA growth and low interest rates driving down funding cost Total Deposits CASA Deposits per Branch +10% YoY +22% YoY 1.3 1,714 1,734 1.0 1.1 1,
Slide 16: Resilient net interest margin supported by low funding cost
PRIVATE AND PROPRIETARY Resilient net interest margin supported by low funding cost Sustained NIM expansion despite loan contraction on the back of stable loan yield and reduced funding cost NIM* remains higher than industry NIM kept stable despite rate volatilities NIM Policy rate MBT UKB 4.75% 4.7
Slide 17: Other income driven by robust trading gains
PRIVATE AND PROPRIETARY Other income driven by robust trading gains Realized strong trading gains which offset weak fee income due to slow business volumes Service Fees and Trust Non-Interest Income Breakdown Others Service Fees & Trust Trading & FX gains -10% YoY 10.9 9.8 +28% YoY 30.5 23.7 9M 2019
Slide 18: Subdued cost growth leading to improved CIR
PRIVATE AND PROPRIETARY Subdued cost growth leading to improved CIR Revenue growth has consistently outpaced cost growth, leading to improved cost-income ratio Operating Expenses Breakdown Cost-Income Ratio Manpower Taxes & licenses Depreciation 54% 55% Occupancy & equipment +2% YoY Others 46% 42.9
Slide 19: Digital Strategy as enabler to improve customer experience
PRIVATE AND PROPRIETARY Digital Strategy as enabler to improve customer experience Active push for e-channels accelerated digital transactions under present conditions, encouraged by rising monthly enrollments 23% Clients enrolled in e-channels as of Q3 2020 26% 32% mobile app downloads +194% Q3 201
Slide 20: Proactive provisioning provides buffer for anticipated risks
PRIVATE AND PROPRIETARY Proactive provisioning provides buffer for anticipated risks The Bank is proactively beefing up provisions even as NPL formation remains relatively benign Conservative provisioning stance NPL formation in line with expectations Provisions for Credit Cumulative Total Allowance
Slide 21: Strong balance sheet, healthy capital levels provide ample support
PRIVATE AND PROPRIETARY Strong balance sheet, healthy capital levels provide ample support The Bank is highly liquid and well-capitalized, with capital and liquidity ratios comfortably above the regulatory threshold Total Equity Annual Cash Dividends Paid 4.5 320 4.0 305 310 9M 2019 FY 2019 9M 2020
Slide 22: Summary
PRIVATE AND PROPRIETARY SUMMARY The COVID-19 pandemic continues to disrupt the economy, adversely affecting business expansion plans and consumption spending. Despite challenges, Metrobank’s core business performance is resilient : solid NII growth, NIM expansion, strong CASA, robust revenue growth,
Slide 23: Financial Summary
PRIVATE AND PROPRIETARY Financial Summary In PHP billion Balance Sheet 9M 2019 9M 2020 YoY Income Statement 9M 2019 9M 2020 YoY Total Assets 2,329 2,351 +1% Net Interest Income 56.2 65.9 +17% Loans and Receivables, Net 1,412 1,226 -13% Total Deposits 1,577 1,734 +10% Non Interest Income 23.7 30.5 +2
Slide 24: For more information, please visit our website
PRIVATE AND PROPRIETARY For more information, please visit our website: Latest Annual Reports 2019 2018 2017 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 Gove
Slide 25: 25 This material was produced by Metrobank for information purposes only and is intended
PRIVATE AND PROPRIETARY by © Metropolitan Bank & Trust Company | Investor Relations | 4 November 2020 | 9M 2020 MBT Company Presentation 25 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
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