Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — Q1 2020 Earnings Presentation
33 slides from Metropolitan Bank & Trust's earnings presentation, May 4, 2020
Slide 1: Company Presentation Q1 2020
PRIVATE AND PROPRIETARY Company Presentation Q1 2020 Based on latest financial statements submitted to the Philippine SEC, PSE and BSP As of March 31, 2020 © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation This material was produced by Metroban
Slide 2: Earnings Call Panelists
PRIVATE AND PROPRIETARY Earnings Call Panelists 04 May 2020 Fabian S. Dee President Bliz R. Cuna Toto A. Tansingco Head, Enterprise Services Treasurer and Head, Financial Markets Jette C. Gamboa © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation
Slide 3: Macroeconomic View
PRIVATE AND PROPRIETARY MACROECONOMIC VIEW © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 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 meetings an
Slide 4: Global COVID-19 Recession in 2020
PRIVATE AND PROPRIETARY Global COVID-19 Recession in 2020 COVID-19 Global Impact Global Recession in 2020, Rebound in 2021 Brent Oil prices have collapsed Philippine peso flattish since Nov 2019 © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation
Slide 5: Philippines has Space for Fiscal Stimulus
PRIVATE AND PROPRIETARY Philippines has Space for Fiscal Stimulus Four-pillar socioeconomic strategy against COVID-19 External Debt vs GIR P1.49 Trillion 1st 2nd 3rd 4th PILLAR PILLAR PILLAR PILLAR To be P590 Bn P58.6 Bn P843 Bn determined Support for Fund for Fiscal and Economic Vulnerable Medical
Slide 6: 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% 2.75% 3.00% 2013 2014 2015 2016 2017 2018 2019 4M20 2013 2014 2015 2016 2017 2018 2019 4M20 Support
Slide 7: Banking Industry
PRIVATE AND PROPRIETARY Banking Industry Loan growth had a strong start this year Deposit growth and M3 growth sustained in early months but this may be tempered by economic uncertainty but can slow down depending on overall market liquidity Loan growth Deposit growth 20% 19% 34% 16% 17% 16% 14% 12%
Slide 8: 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. December 31, 2009 December 31, 2019 CAR Tier 1 CAR CET1 17.5 16.0 16.0 16.2 16.1 15.2 14.7 14.3 14.1 14.2 13.0 12.6 12.6 12.2 Mi
Slide 9: Metrobank Economic Research Forecasts
PRIVATE AND PROPRIETARY Metrobank Economic Research Forecasts 2019A 2020E Comments GDP 6.0% -0.6% to 4.3% NEDA range Inflation 2.5% 2.0% to 3.0% Bias towards lower end BSP RRP rate 4.0% 2.5% Downward Bias RRR 14% 10% USDPHP Trend 50.7 50.1 Flattish with downward bias DISCLAIMER INFORMATION The repor
Slide 10: Financial Performance
PRIVATE AND PROPRIETARY FINANCIAL PERFORMANCE © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation 10 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 11: Performance Highlights
PRIVATE AND PROPRIETARY Performance Highlights Solid core business growth across all segments, tempered by proactive provisioning Net Income Operating Income Strong core business growth tempered by proactive Net interest income Non-interest income provisioning, in light of COVID-19 crisis • Driven b
Slide 12: Net Interest Income
PRIVATE AND PROPRIETARY Net Interest Income Sustained NII expansion supported by higher CASA take up, improved liquidity, and reduced funding cost Net Interest Income NIMs* consistently above industry +18% YoY MBT UKB +22bps 20.8 21.4 YoY 4.06% 18.1 3.84% 3.84% 3.44% 3.29% Q1 2019 Q4 2019 Q1 2020 Q1
Slide 13: Asset Mix
PRIVATE AND PROPRIETARY Asset Mix Prudent asset growth, and well-balanced asset mix with loans comprising the biggest share Total Assets Total Assets Breakdown Loans* Securities Other Financial Assets Other Assets +5% YoY 3% 3% 3% 2,451 2,377 15% 16% 13% 2,253 71 77 74 380 299 24% 341 21% 21% 516 56
Slide 14: Loan Portfolio
PRIVATE AND PROPRIETARY Loan Portfolio Loan growth aligned with overall economic growth. Modest portfolio growth without compromising credit standards and asset quality Total Loans Loan-Deposit Ratio +6% 86% 87% 1,484 YoY 1,435 84% 1,360 Q1 2019 Q4 2019 Q1 2020 Q1 2019 Q4 2019 Q1 2020 Loan Breakdown
Slide 15: Consumer Loans
PRIVATE AND PROPRIETARY Consumer Loans Consumer loans’ single-digit growth has been relatively lower vs. peers; and contribution to total portfolio has stayed flat at 24%. Consumer Loans Breakdown Consumer Loans By Segment Auto Housing Credit Card & Others 347 350 6% YoY 330 23% 26% 27% 75 91 96 +29
Slide 16: Asset Quality
PRIVATE AND PROPRIETARY Asset Quality NPL formation has been largely benign, as the Bank’s focus is on credit discipline and quality growth NPLs1 amount NPL Ratio2 better than industry MBT UKB 1.79% 21.0 20.2 1.55% 1.55% 1.60% 1.40% 19.3 -4% 1.30% YoY Q1 2019 Q4 2019 Q1 2020 Q1 2019 Q4 2019 Q1 2020
Slide 17: Investment Securities
PRIVATE AND PROPRIETARY Investment Securities Actively managed securities portfolio well-positioned to take advantage of ever-changing financial market conditions Investment Securities Investment Securities Breakdown FVTPL FVOCI Amortized Cost +18% YoY 566 516 42% 49% 479 55% 237 252 265 45% 31% 39%
Slide 18: Liabilities Mix
PRIVATE AND PROPRIETARY Liabilities Mix With its strong deposit franchise, funding is sourced primarily from traditional deposits led by low cost CASA Total Liabilities Total Liabilities Breakdown Deposits Bills payable & SSURA Bonds payable Others +5% YoY 2,132 2,063 6% 5% 5% 1,956 99 95 2% 4% 4% 8
Slide 19: Deposit Profile
PRIVATE AND PROPRIETARY Deposit Profile Deposits have increased as clients prefer to stay liquid given uncertain times; Strong CASA growth driving cost of funding lower. Total Deposits Estimated Funding Cost* Cost of Funds Cost of Deposits +8% YoY 2.2% 1.7% 1,714 1,714 1.5% 1.6% 1,581 1.1% 1.0% Q1 2
Slide 20: Non-Interest Income
PRIVATE AND PROPRIETARY Non-Interest Income Solid growth in service fees, while trading operations remained healthy despite market volatility Service Fees and Trust Non-Interest Income Breakdown +8% YoY Service Fees & Trust Tradng & FX gains Misc 4.6 -4% YoY 3.7 6.5 3.4 6.2 6.2 0.4 1.6 1.2 1.1 Q1 20
Slide 21: OPEX and Efficiency Ratios
PRIVATE AND PROPRIETARY OPEX and Efficiency Ratios Revenue growth has consistently outpaced cost growth, leading to efficiencies and improved cost-income ratio Operating Expenses Breakdown Cost-Income Ratio Manpower Occupancy & equipment Others 56% +8% YoY 55% 15.0 14.5 53% 13.5 Q1 2019 FY 2019 Q1 2
Slide 22: Customer Touchpoints
PRIVATE AND PROPRIETARY Customer Touchpoints Slow down on opening of physical branches, and push for e-channels to drive efficiencies and bring down the cost-to-serve. 20% Clients enrolled in e-channels as of Q1 2020 21% 30% mobile app users +67% Q1 2019 vs. Q1 2020 70% 79% Q1 2019 Q1 2020 Consolida
Slide 23: Capital and Liquidity Ratios
PRIVATE AND PROPRIETARY Capital and Liquidity Ratios The Bank is highly liquid and well-capitalized, with capital and liquidity ratios comfortably above the minimum regulatory threshold Total Equity Annual Cash Dividends Paid 310 4.5 305 4.0 289 Q1 2019 Q4 2019 Q1 2020 Q1 2019 Q1 2020 Capital Ratios
Slide 24: Initiatives during the ECQ period
PRIVATE AND PROPRIETARY Initiatives during the ECQ period % Open Branches* as of April 30 Waived Interbank Fund Transfer Fees Through InstaPay and PesoNet Legend: OPEN MM 30-day Grace Period Luzon 66% Even Before the Bayanihan Act* 633 *30-day grace period for all loans with payment due dates Visaya
Slide 25: Recent Developments
PRIVATE AND PROPRIETARY Recent Developments Approval of Merger BSP approval Bond Issuances P25 billion LTNCDs 2018 2019 Unissued Jan. 2020 – Jan. 2021 29.5 Effective January 3, 2020 BOD approval to amend the Articles of Incorporation To Create a New Class of Shares 6 billion voting preferred shares
Slide 26: Summary
PRIVATE AND PROPRIETARY SUMMARY The year 2020 had a promising start with solid economic prospects. But the unprecedented COVID-19 pandemic changed the global landscape. Metrobank has built up earnings momentum, especially in recent years. In Q1 2020, the Bank sustained core business growth across al
Slide 27: Financial Summary
PRIVATE AND PROPRIETARY Financial Summary In PHP billion Balance Sheet Q1 2019 Q1 2020 YoY Income Statement Q1 2019 Q1 2020 YoY Total Assets 2,253 2,377 +5% Net Interest Income 18.1 21.4 +18% Loans and Receivables, Net 1,360 1,435 +6% Total Deposits 1,581 1,714 +8% Non Interest Income 6.5 6.2 -4% CA
Slide 28: Supplemental Information
PRIVATE AND PROPRIETARY SUPPLEMENTAL INFORMATION © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 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 meet
Slide 29: Credit Ratings
PRIVATE AND PROPRIETARY Credit Ratings Issuer Rating Outlook Date of Latest Report Baa2 Stable March 2020 BBB- Stable October 2019 © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation 29 This material was produced by Metrobank for information purp
Slide 30: Leading Market Position in Key Segments
PRIVATE AND PROPRIETARY Leading Market Position in Key Segments Business Treasury and Investment Retail Banking Life insurance Leasing segment Trust Banking Banking #1 Second largest savings bank in JV with AXA PDEX Best Corporate the country Securities & Investment #2 in Total Leasing and House Ind
Slide 31: Ownership Structure
PRIVATE AND PROPRIETARY Ownership Structure As of March 31, 2020 Listed on PSE Ty Family & Other Related Free float Parties 37.2% 14.6% 48.2% Investment Banking Savings Bank Leasing 99.3% 88.4% 59.9% Listed on PSE Bancassurance Effective Ownership 28.0% The Philippine SEC approved the proposal to me
Slide 32: https://metrobank.com.ph/ investor.relations@metrobank.com.ph
PRIVATE AND PROPRIETARY https://metrobank.com.ph/ DISCLAIMER: This material was produced by Metrobank Investor Relations Department 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 securi
Slide 33: 33 This material was produced by Metrobank for information purposes only and is intended
PRIVATE AND PROPRIETARY by © Metropolitan Bank & Trust Company | Investor Relations | 04 May 2020 | Q1 2020 MBT Company Presentation 33 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 cons
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