Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — FY2024 Earnings Presentation
37 slides from Metropolitan Bank & Trust's earnings presentation, March 2025
Slide 1: FY24 Company Presentation
<> Metrobank MA voure in good hands FY24 Company Presentation
Slide 2: Macroeconomic View
@ Metrobank A voure in good hands
Slide 3: Recent macroeconomic developments
Recent macroeconomic developments As of March 6,, 2025 Inflation Policy rate GDP 2020 2021 2022 2023 4Q24 2024 2021 2022 2023 2024 2M25 2021 2022 2023 2024 1M25 -9.5% 5.7% 7.6% 5.5% 5.2% 5.6% 3.9% 5.8% 6.0% 3.2% 2.1% 2.0% 5.5% 6.5% 5.75% 5.75% • 2024 consumption and investment spending • Annual cons
Slide 4: Banking industry trends
Banking industry trends Loans sustain growth momentum while NPL slightly eases CASA growth still subdued; system remains liquid Loan growth Deposit Growth CASA Growth 20. 0% 20. 0% 18. 0% 12.5% 16. 0% 15. 0% 14. 0% 12. 0% 10. 0% 10. 0% 8.0 % 7.1% 5.0 % 6.0 % 4.0 % 0.0 % 2.0 % 4.8% 0.0 % -5.0% Asset
Slide 5: Financial Performance Full Year 2024
FINANCIAL PERFORMANCE Full Year 2024
Slide 6: FY24 earnings highlights
FY24 earnings highlights Opex Taxes & NCI Trading & FX Fees and other NoII Net Interest Income Provisions Net Income Net Income 42.2 48.1 10.5 12.0 11.6 12.1 12.4 YoY YoY +14% +19% 28.7 27.8 28.4 105.0 114.1 +9% 27.7 29.3 +2% In PHP billions -4% 6.1 -1% 25.4 24.4 +39% 6.0 5.9 6.5 6.0 5.9 4.0 5.6 0.4
Slide 7: Net interest income drivers
Net interest income drivers Asset growth driving build-up in interest from loans Margins easing on elevated funding costs Other interest income Interest from Investments NII NIM BSP Policy Rate Interest from Loans Interest expense from Deposits +2.4% YoY 6.50% 5.75 Other interest expense +2.3% QoQ 1
Slide 8: Margin drivers
Margin drivers Weaker 4Q NIM from funding strategy shift Stable to improving yields in home and auto loans Quarterly NIM Investment securities yield Asset yield Loan yield Funding cost Deposit cost Credit Cards 15.4% 15.1% 15.2% 15.5% 15.1% 7.3% 7.2% 7.3% 7.3% 7.1% 5.6% 5.6% 5.7% 5.6% Auto 5.5% 9.8%
Slide 9: Loan portfolio profile
Loan portfolio profile Strong commercial and consumer growth Sustaining Outpacing double-digit industry loan growth growth 25% 2,500 Industry Loan Growth YoY MBT Loan Growth YoY Corporate & Commercial Consumer +17% YoY 20% 1,833 2,000 17% 15% +18% YoY 13% 1,486 1,567 1,457 1,297 +14% YoY 10% In PHP
Slide 10: Loan growth drivers
Loan growth drivers Robust demand from top and mid-sized corporates Credit card and auto loans still leading retail build up Others Housing Auto Credit Card & Others* +14% YoY SME Corporate & Middle Market 1,600 +18% YoY 1,400 388 344 339 1,200 303 292 84 173 In PHP billions 269 In PHP billions +18%
Slide 11: Non-interest income drivers
Non-interest income drivers Robust trading income, steady fees Consumer products retains biggest share of fee income Others Gain On Asset Sales Leasing Trading & FX gains Service Fees & Trust Breakdown of NOII excluding Trading Income 30. 12.1 Other 29. Bancasuurance 0 4 YoY 15% +2% YoY Trust 5% 32%
Slide 12: Deposit profile
Deposit profile Managing high cost deposits CASA ratio normalizing to pre-pandemic level CASA TDs CASA TDs 110% 100% +8% YoY 90% 24% 27% 33% 2,574 80% 37% 40% 42% 70% 2,383 60% 2,221 50% 40% 73% 76% 67% 1,930 63% 60% 58% 1,086 30% 1,797 943 +15% YoY In PHP billions 20% 1,714 742 10% 468 2019 2020 20
Slide 13: Operating expense breakdown
Operating expense breakdown Higher costs largely driven by capacity expansion Full Year Cost to income ratio kept at low 50s Compensation and fringe benefits Taxes and licenses Premises Technology Other Expenses 60.00% 58.8% YoY YoY 20.6 +10% 55.00% 53.8% 53.5% +11% 18.0 18.4 20.2 52.1% 77.2 18.3 50
Slide 14: Provisions trend
Provisions trend Credit costs normalize but still below historical level NPL cover remains substantial Provisions for Credit Cumulative Allowance YTD Est. Credit Cost 180% 50.0 47.2 175% 172% 42.5 260 163% 164% 40.0 In PHP billions 210 in bps 30.0 160 20.0 110 10.0 8.5 56 6.4 60 36 103% - 10 2019 20
Slide 15: Asset quality indicators
Asset quality indicators Stable asset NPL levels despite portfolio expansion NPL/Past Due ratios well below industry level NPL ratio Industry NPL ratio NPL Past Due Loans 4.5% 4.0% 3.3% 3.40% 3.5% 40.0 38.6 3.0% 36.0 34.3 2.5% 1.7% 35.0 31.9 2.0% 30.9 31.8 1.4% 1.5% 30.0 28.6 27.4 27.3 1.0% 26.2 26.
Slide 16: Asset quality indicators
Asset quality indicators Commercial NPL ratio continues to ease Consumer NPL ratio well below industry levels NPL ratio Industry Consumer NPL ratio NPL ratio 16.0% 14.0% 12.0% 35 2.0% 10.0% 5.8% 5.7%* 30 1.4% 1.2% 8.0% 1.5% 25 6.0% 20 1.0% 15 10 4.0% 2.7% 2.4% 0.5% 2.0% 5 - 0.0% 0.0% 2019 2020 2021
Slide 17: Consumer asset quality trend
Consumer asset quality trend Auto NPL ratio still improving Mortgage NPL ratio still improving Slight pick-up in credit card NPL ratio NPL ratio (Auto) Industry (Auto) NPL ratio (Mortgage) NPL ratio (CCL) Industry (CCL) Industry (Mortgage) 10.0% 6.9% 6.8% 6.3% 5.0% 5.2% 4.0% 4.4% 3.0% 2.8% 2.5% 2.3%
Slide 18: Other asset quality indicators
Full Year Other asset quality indicators Real and other properties acquired (ROPA) slightly lower Total non-performing assets (NPA) well under control ROPA Ratio to Gross Loans NPA NPA Ratio 45 1.8% 12 0.9% 43 1.6% 12 0.8% 41 0.7% 0.7% 1.4% 11 0.6% 39 1.2% 1.2% In PHP billions 0.6% 1.0% In PHP billi
Slide 19: Capital and liquidity
Capital and liquidity High capital ratios offers strong buffers against risks Liquidity ratios well above threshold CAR CET-1 12.0% BLR 11.0% 21. 0% 15% 9.2% 10.0% 20. 0% 9.0% 9.50% 8.0% 14% 7.0% 19. 0% 18.3% 6.0% Min BLR 5% 18. 0% 13% 5.0% 16.7% 4.0% 17. 0% 2019 2020 2021 2022 2023 2024 17.4% 12% L
Slide 20: Digital Metrics on Retail Clients
Digital Metrics on Retail Clients 2024 ended at 43% digital penetration, up from 2023 2024 37% PY, with 2.1M total digital users P90Day active base up by 43% 1.3M 1.5M 45% 15% YoY, which shows that 40% 1.5M out of the 2.1M are 37% active users 35% 30% Note: Due to the decommissioning of MBS, active
Slide 21: Return on Equity – Trend
Return on Equity – Trend Return on Equity (ROE) on an upward trajectory Medium-term ROE drivers 12.5% 13.0% Portfolio Growth 9.5% 10.3% • Grow loans portfolio by 1.5x-2.0x Real GDP 6.9% • Increase consumer to at least 25% of total portfolio 4.4% Improve Operational Efficiency 2019 2020 2021 2022 202
Slide 22: New Dividend Policy
New Dividend Policy 1. Growth prospects intact Key information • Sufficient buffer to meet healthy loan demand sustainably over the medium term Regular Cash • PHP3.00 Dividends • Semi-annual payout 2. Robust NPL risk buffers already in place per share • NPL cover continues to remain ample vs. risk o
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 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 sustained to mak
Slide 25: Financial Summary
Financial Summary In PHP billion Income Balance Sheet FY23 FY24 YoY 4Q23 4Q24 YoY FY23 FY24 YoY Statement Total Assets 3,105 3,520 13.4% Net Interest Loans and Receivables, Gross 1,567 1,833 17% 27.7 28.4 2% 105.0 114.1 9% Income Total Deposits 2,383 2,574 8% Non Interest 6.4 5.9 -8% 29.4 30.0 2% CA
Slide 26: Additional Information
@ Metrobank A voure in good hands
Slide 27: Metropolitan Bank & Trust Company (Metrobank)
Metropolitan Bank & Trust Company (Metrobank) Overview Financial Data (PHP bn) FY 2024 DIVERSIFIED Total Assets 3,520 62 YEARS OF MULTI-AWARDED FINANCIAL CONGLOMERATE TRADING INFORMATION MBT PM | MBT.PS Ticker Loans and Receivables, Gross Total Deposits 1,833 2,574 SERVICE EXCELLENCE USD 5.6 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 19,800+ employee base Note: Includes Parent + Major Subs of the Bank Domestic Branch and ATM Networks Overseas Network Coverage 960 29 branches Branches, subsidiaries, offices 2,273 ATMs 100+ Remittance tie-ups 150+ Remittance agents 2024 Metropol
Slide 30: Our Sustainability Journey
Our Sustainability Journey Enhancing the ESRM Framework Improving our Sustainability Disclosures Our progress in embedding ESG in bank operations Our approach to Sustainable Finance in Lending & Investing CIRCULAR METROBANK INITIATIVES ELIGIBLE GREEN U-O-P* ELIGIBLE SOCIAL U-O-P* 1085 Approved and d
Slide 31: Debt Issuances
Debt Issuances Unissued 2024 28.0 Bond Issuance 0.5 2022 76.3 USD22 Billion USD1 billion PHP2001 Medium- 2021 42.5 Billion Bond Programme 1.0 Term Note 5-Y and 10-Y USD Notes 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 32: Outstanding Debt Issuances & Investment Grade Credit Ratings
Outstanding Debt Issuances & Investment Grade Credit Ratings Debt Issuance Details Debt Maturity Profile (PHP Bn) Baa2 July-24 Stable Issue Coupon Maturity Amount Type • High capitalization, with a proven history Date Rate Date (PHP Bn) of shareholder support 2024 36.15 Jul-17 3.875% Jul-24 3.75 • R
Slide 33: Loan Portfolio Breakdown
Loan Portfolio Breakdown MBT Loan Portfolio By Industry Philippine Banks Loan Portfolio By Industry Others Utilities Financial Real estate Manufacturing Trade Others Utilities Financial Real estate Manufacturing Trade +12% YoY +26% YoY 12% 12% 12% 12% 12% 14% 13% 15% 14% 15% 13% 17% 10% 11% 10% 10%
Slide 34: Currency Breakdown
Currency Breakdown LOAN PORTFOLIO DEPOSITS Foreign Foreign Currency, Currency, 19% 19% Philippine Philippine Peso, 84% Peso, 84% 2024 Metropolitan Bank & Trust Company 34 This document is for internal use only and may contain privileged, proprietary or otherwise private information. It must not be r
Slide 35: Recent Awards and Recognition
Recent Awards and Recognition Best Bank for Best Domestic Best Bank of the Year Strongest Bank Best Bank for Ultra- Corporate Private Bank in the Philippines Domestic Bank in in the Philippines High-Net-Worth* Responsibility in in the Philippines, the Philippines the Philippines Best Bank for Ultra-
Slide 36: 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 37: Metrobank
<> Metrobank Mm You're in good hands THE BANKER ‘THE ASIAN BANKER’ THE STRONGEST BANK BIN THE PHILIPPINES 2023 t by balance shee
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