Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — Q1 2022 Earnings Presentation
45 slides from Metropolitan Bank & Trust's earnings presentation, May 2022
Slide 1: 1Q 2022 Earnings Call
1Q 2022 EARNINGS CALL
Slide 2: You're in good hands
Ss Metrobank You're in good hands FABIAN TOTO MYLENE MONJ RENE MINDA DEE TANSINGCO CAPARAS DELROSARIO DE BORJA OLONAN President Treasurer & Head, Financial Markets Head, Institutional Banking © Head, Consumer Business Controller Investor Relations
Slide 3: Macroeconomic View
PRIVATE AND PROPRIETARY MACROECONOMIC VIEW © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | 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 meetings and does not
Slide 4: Metrobank Economic Research Forecasts
PRIVATE AND PROPRIETARY Metrobank Economic Research Forecasts As of May 2022 2021A 2022F 2023F GDP 5.7% 6.3% 6 – 7% (DBCC*: 7-8%) (DBCC*: 6-7%) Inflation 4.5% 4.6% 3 – 5% (BSP: 4.6%) (BSP: 3.9%) BSP RRP rate 2.0% 3.0% 3 – 5% USDPHP Trend 50.77 53.40 54.70 (BSP: 48-53) (BSP: 48-53) DISCLAIMER INFORMA
Slide 5: Banking Industry: Loan recovery amid improving NPLs
PRIVATE AND PROPRIETARY Banking Industry: Loan recovery amid improving NPLs Recovery in loan growth continues, asset quality improves Deposit growth sustained amid ample market liquidity Loan growth Deposit growth CASA growth 20% 18% 17% 19% 16% 20% 16% 15% 15% 14% 14% 11% 12% 13% 12% 13% 9% 15% 10%
Slide 6: Financial Performance
PRIVATE AND PROPRIETARY FINANCIAL PERFORMANCE 1Q 2022 © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | MBT Company Presentation 6 This material was produced by Metrobank for information purposes only and is intended to be used in presentations by the Bank at investor meetings an
Slide 7: Stable NII, managed opex, lower provisions
PRIVATE AND PROPRIETARY Stable NII, managed opex, lower provisions Net Interest Income Fees and Other Non-Interest Income Trading & FX gains Operating expenses Provisions for credit losses Taxes and NCI YoY Net 6.1 3.0 1.9 2.8 7.8 3.9 4.4 6.0 8.0 50.0 +3% Income 40.0 30.0 11.7 1.4 4.7 2.3 -20% 4.8 3
Slide 8: Improving net interest income
PRIVATE AND PROPRIETARY Improving net interest income Boost from investment securities; lower funding costs Easing margins Pbn Interest from Loans Interest expense from Deposits Pbn NII Quarterly NIM Interest from Investments Other Interest Expense Other Interest Income 26.0 3.5% 24.0 YoY 4.00% 3.4%
Slide 9: Loan demand recovering, led by corporate demand
PRIVATE AND PROPRIETARY Loan demand recovering, led by corporate demand Commercial demand drives loan growth Inflection in loan demand Pbn Consumer Corporate & Commercial MBT Gross Loans growth +5% YoY 5% 1,220 1,279 1,263 -1% QoQ 1,207 1,210 -1% +8% YoY -4% 920 933 950 1,011 996 -1% QoQ -11% -7% Yo
Slide 10: Corporate segment driving loan demand
PRIVATE AND PROPRIETARY Corporate segment driving loan demand Corporate and middle market rebound Demand for short-term loans picks up Pbn SME Corporate & Middle Market Long Term (More than 1 Year) Short Term (Up to 1 Year) 1,200 +8% YoY 1,011 996 -1 QoQ +51% YoY 1,000 920 933 950 22% 23% 25% 32% 31
Slide 11: Consumer loans driven by credit cards
PRIVATE AND PROPRIETARY Consumer loans driven by credit cards Consumer Loans Breakdown Consumer Loans By Product Pbn Others Auto Housing Credit Card 286 -7% YoY 30% 31% 32% 34% 35% 276 270 269 267 -0.5% QoQ 87 86 87 +8% YoY 92 93 +2% QoQ 36% 36% 36% 36% 36% 103 101 98 -7% YoY 98 96 -2% QoQ 32% 31% 3
Slide 12: Encouraging trends in big-ticket consumer loans production
PRIVATE AND PROPRIETARY Encouraging trends in big-ticket consumer loans production New car loans production starting to outpace runoffs New home loans on a steady uptrend +51% YoY +21% YoY New car loans New home loans Net new production vs runoffs New loans growth Net new production vs runoffs New l
Slide 13: Healthy CASA generation maintained
PRIVATE AND PROPRIETARY Healthy CASA generation maintained Robust CASA growth CASA ratio remains elevated Pbn TDs CASA CASA TDs +17% YoY 25% 26% 25% 24% 29% 2,042 +6% QoQ 1,930 1,817 1,851 75% 75% 76% 1,738 74% 71% 1Q21 2Q21 3Q21 4Q21 1Q22 +10% YoY 1,443 -1% QoQ 1,463 CASA Deposits per Branch 1,342
Slide 14: Softer margins on lower loan yields
PRIVATE AND PROPRIETARY Softer margins on lower loan yields Asset yields and funding costs Yields across loan segments 18.0% Quarterly NIM Asset yield Loan yield Funding cost Deposit cost 16.0% 7.50% 13.4% 13.7% 13.4% Credit Cards 14.0% 12.8% 12.8% 6.50% 5.7% 5.8% 5.7% 12.0% 5.5% 5.50% 5.1% 9.1% 9.0
Slide 15: Healthy non-interest income growth
PRIVATE AND PROPRIETARY Healthy non-interest income growth Modest fee income growth; solid trading income Stable fee-based income Pbn Pbn Fee income Trust income Others Leasing YoY 5.0 Service Fees & Trust Trading & FX gains 4.5 4.1 4.0 +7% YoY 3.8 3.7 0.4 4.0 3.5 10.0 0.4 -2% 3.5 0.4 0.4 0.4 8.3 +5
Slide 16: Costs kept under control
PRIVATE AND PROPRIETARY Costs kept under control Operating expenses breakdown Cost-To-Income ratio Pbn Others Occupancy & equipment Depreciation Taxes & licenses 20.0 Manpower 65.0% 18.0 YoY 59.0% 59.0% 16.0 15.1 15.0 14.9 60.0% 57.2% 14.7 14.7 +1% 14.0 55.0% 54.6% 54.1% 50.0% 12.0 6.4 6.3 6.3 6.2 6
Slide 17: Improving digital metrics on retail clients
PRIVATE AND PROPRIETARY Improving digital metrics on retail clients 28% Digital users among retail clients as of 1Q 2022 1Q22 87% 13% vs 26% in 4Q 2021 2021 88% 12% 88% Active users among enrolled retail 2020 85% 15% as of 1Q 2022 % E-Channels to mobile app downloads Total financial transactions +35
Slide 18: Lower provisions, ample cover maintained
PRIVATE AND PROPRIETARY Lower provisions, ample cover maintained Easing credit costs Hefty provision cover Est. Credit Cost (bps) 150 160 140 98 80 120 100 58 64 80 60 191% 40 20 - 179% 179% Pbn Cumulative Total Allowance Provisions for Credit 175% 70.0 14.0 60.0 166% 50.0 47 48 49 48 48 12.0 10.0 4
Slide 19: Asset quality much better than industry
PRIVATE AND PROPRIETARY Asset quality much better than industry NPL and Past Due loans continue to taper off NPL and Past Due ratios much lower than industry Past Due ratio Industry Past Due Pbn Past Due NPL 5.3% 5.4% 5.2% 4.6% 5.0% * 6.0% 5.0% 60.0 60.0 4.0% 3.0% 50.0 50.0 3.5% 3.2% 42 3.0% 2.8% 3.
Slide 20: Asset quality much better than industry
PRIVATE AND PROPRIETARY Asset quality much better than industry Stable restructured loans ratio, but still sub-1% Combined NPLs/Restructured still below Industry NPL Ratio Ratio to Gross Loans Industry Restructured Loans Ratio Industry NPL Ratio 4.5% 3.1% 3.1% 3.1% * MBT Combined NPL + Restructured
Slide 21: Asset quality management across loan segments
PRIVATE AND PROPRIETARY Asset quality management across loan segments Commercial NPL ratio is stable… …as well as consumer NPL ratio NPLs NPL ratio NPL ratio Industry Consumer NPL ratio 16.0% 9.7% 9.9% 9.9% 9.3% 14.0% 25 3.0% 12.0% 23 1.8% 1.7% 1.6% 1.6% 1.7% 10.0% 2.0% 8.0% 21 Pbn 1.0% 4.5% 4.8% 4.
Slide 22: Consumer NPLs well below industry levels
PRIVATE AND PROPRIETARY Consumer NPLs well below industry levels Auto Home Credit Cards NPLs NPL ratio Industry NPLs NPL ratio Industry NPLs NPL ratio Industry 20 12.7% 9.4% 12.1% 12.4% 12.0% 14.0% 20 9.4% 9.6% 15.0% 9.4% 18 20 12.0% 18 15% 8.5% 16 18 10.0% 16 8.5% 14 14 10.0% 16 8.0% 6.8% 8.0% 10%
Slide 23: Other asset quality indicators remain stable
PRIVATE AND PROPRIETARY Other asset quality indicators remain stable Real and other properties acquired (ROPA) Non-Performing Assets (NPA) Pbn ROPA Ratio to Gross Loans Pbn NPA NPA Ratio 0.8% 0.8% 0.8% 15.0 0.8% 0.8% 0.9% 50 1.6% 1.9% 0.8% 1.5% 1.5% 1.5% 1.7% 1.4% 13.0 45 1.5% 0.7% 11.0 40 1.3% 0.6%
Slide 24: Strong balance sheet, healthy capital levels provide ample support
PRIVATE AND PROPRIETARY Strong balance sheet, healthy capital levels provide ample support Capital Ratios significantly above minimum thresholds Formidable Basel III Leverage Ratio, Liquidity Coverage Ratio CAR CET-1 BLR LCR 20.2% 20.1% 19.3% 19.3% 350% 327% 18.5% 17.6% 303% 15.0% 300% 284% 11.4% 11
Slide 25: 2022 Outlook – Positives and Challenges Ahead
PRIVATE AND PROPRIETARY 2022 Outlook – Positives and Challenges Ahead • Recovery in loans in line with economic growth • Delay in economic recovery due to threat of new lockdowns and global market developments • NIM recovery on prospects of rising benchmark rates/yields higher NIMs • Impending chang
Slide 26: Summary
PRIVATE AND PROPRIETARY SUMMARY Metrobank’s solid performance in 1Q is on the back of stable net interest income supported by recovery in loans, modest rise in non-interest income and marginal costs growth. Further improvement in asset quality prompts further decline in provisions. We will continue
Slide 27: Financial Summary
PRIVATE AND PROPRIETARY Financial Summary In PHP billion Balance Sheet 1Q 2021 1Q 2022 YoY Income Statement 1Q2021 1Q 2022 YoY Total Assets 2,372 2,644 +11% Net Interest Income 19.0 19.3 +1% Loans and Receivables, Gross 1,207 1,263 +5% Total Deposits 1,738 2,042 +17% Non Interest Income 7.9 8.3 +5%
Slide 28: Digital Initiatives
PRIVATE AND PROPRIETARY DIGITAL INITIATIVES © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | MBT Company Presentation 28 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 no
Slide 29: Metrobank digital transformation
PRIVATE AND PROPRIETARY Metrobank digital transformation Digital and data will radically transform the way the bank will operate: 1 Customer experience excellence MB Online MB Mobile App 2 Operational efficiency 3 Consumer business growth 4 Real-time controls 5 High-touch financial advisory and educ
Slide 30: Best in class servicing and engagement
PRIVATE AND PROPRIETARY Best in class servicing and engagement ❑ Drive customer financial wellness via customized data-driven insights and advisory ❑ Segment-specific MASS HPR HNWI INSTITUTIONAL RM/BM RM/BM Digital-first Assisted by digital Assisted by digital Transactions, servicing, acquisition Mo
Slide 31: Digital Transformation to Drive Business Transformation
PRIVATE AND PROPRIETARY Digital Transformation to Drive Business Transformation Building Blocks Empowerment Engagement and Education 2019-2023 Enabling self-service, branch offload Deeper engagement with existing customers, expanding into new markets, educating the market on finances Systems Upgrade
Slide 32: Additional Information
PRIVATE AND PROPRIETARY Additional Information © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | MBT Company Presentation 32 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
Slide 33: Metropolitan Bank & Trust Company (Metrobank)
PRIVATE AND PROPRIETARY Metropolitan Bank & Trust Company (Metrobank) Overview Financial Data (PHP bn) 1Q22 DIVERSIFIED Total Assets 2,644 59 YEARS OF MULTI-AWARDED FINANCIAL CONGLOMERATE TRADING INFORMATION MBT PM | MBT.PS Ticker Loans and Receivables, Gross Total Deposits 1,263 2,042 SERVICE EXCEL
Slide 34: Ownership and Investment Information
PRIVATE AND PROPRIETARY Ownership and Investment Information CORPORATE STRUCTURE MARKET DATA Trading information Ticker: GTCAP PM / GTCAP.PS Market cap: USD2.1 Bn Ty Family Ticker (Bloomberg | Reuters) MBT PM | MBT.PS & Other Free Related float Par value (PHP) 20.00 Parties Outstanding shares 4,497,
Slide 35: Extensive Domestic and Overseas Coverage
PRIVATE AND PROPRIETARY Extensive Domestic and Overseas Coverage 17,000+ employee base Domestic Branch and ATM Networks Overseas Network Coverage 950 30+ branches Branches, subsidiaries, offices 2,300+ ATMs 150+ Remittance tie-ups 150+ Remittance agents © Metropolitan Bank & Trust Company | Investor
Slide 36: Recent Awards and Recognition
PRIVATE AND PROPRIETARY Recent Awards and Recognition Best Local Currency Best Multi-product Best Best Bond Individuals Best Domestic Strongest Bank Securities House #1 in Trading, Financing Deal, Domestic Bank in Private Bank in the Philippines Bank Category #2 & #3 in Sales, Best Syndicated the Ph
Slide 37: Meaningful Sustainability
PRIVATE AND PROPRIETARY 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 prof
Slide 38: Sustainability: Our Progress in 2021
PRIVATE AND PROPRIETARY 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 Sustai
Slide 39: Special Dividend Declaration in 2022
PRIVATE AND PROPRIETARY Special Dividend Declaration in 2022 1. Tempered near-term growth prospects Demand is modest in 2022, with pre-pandemic double-digit growth possible by year 2023 onwards Key information Regular Cash • Php1.60 2. Strong NPL risk buffers already in place Dividends • Semi-annual
Slide 40: Debt Issuances
PRIVATE AND PROPRIETARY Debt Issuances Unissued 28.0 Bond Issuance 2021 0.5 PHP19.0 billion USD2 Billion 2020 42.5 PHP200* Billion Bond 100. Medium-Term 5.25Y Peso Notes 0 Note Listed June 2021 Programme 2019 Programme 1.9x oversubscribed 1.5 3.60% interest rate, 35bps above 2018 19.0 benchmark rate
Slide 41: Outstanding Debt Issuances & Investment Grade Credit Ratings
PRIVATE AND PROPRIETARY Outstanding Debt Issuances & Investment Grade Credit Ratings Debt Issuance Details Debt Maturity Profile (PHP Bn) Baa2 Dec-21 Stable Issue Coupon Maturity Amount Type Date Rate Date (PHP Bn) • Highly correlated with sovereign rating 2022 17.50 as exposures are largely domesti
Slide 42: Loan Portfolio Breakdown
PRIVATE AND PROPRIETARY Loan Portfolio Breakdown MBT Loan Portfolio By Industry Philippine Banks Loan Portfolio By Industry 13% 13% 13% 13% 14% 12% 12% 12% 12% 12% 13% 10% 10% 11% 11% 11% 13% 12% 13% 13% 17% 20% 21% 21% 21% 21% 17% 17% 18% 17% Trade Manufacturing 9% 11% 12% 12% 9% 9% 9% 9% 13% 12% R
Slide 43: Currency Breakdown
PRIVATE AND PROPRIETARY Currency Breakdown LOAN PORTFOLIO DEPOSITS Foreign Foreign Currency, Currency, 20% 16% Philippine Peso, 84% Philippine Peso, 80% © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | MBT Company Presentation 43 This material was produced by Metrobank for infor
Slide 44: For more information, please visit our website
PRIVATE AND PROPRIETARY 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 co
Slide 45: 45 This material was produced by Metrobank for information purposes only and is intended
PRIVATE AND PROPRIETARY by © Metropolitan Bank & Trust Company | Investor Relations | May 2022 | MBT Company Presentation 45 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 re
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