Metropolitan Bank & Trust Co. · PSE:MBT
Metropolitan Bank & Trust — Q1 2025 Earnings Presentation
38 slides from Metropolitan Bank & Trust's earnings presentation, May 8, 2025
Slide 1: 1Q25 Company Presentation
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Slide 2: Macroeconomic View
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Slide 3: Recent macroeconomic developments
Recent macroeconomic developments As of 6 May 2025 2024 GDP growth above regional average Inflation slowed in April due to lower fuel and rice prices FY GDP Growth (% YoY) PH CPI vs. BSP’s CPI Target (% YoY) 7.6 BSP Target Headline Core 5.5 5.7 5.7 5.3 2.2 1.4 2021 2022 2023 4Q24 2024 Dec-21 Oct-22
Slide 4: Banking industry trends
Banking industry trends As of 21 April 2025 Loans sustain double digit growth while NPL remains steady CASA growth picks up; system liquidity spikes up Loan growth Deposit Growth CASA Growth 20. 0% 14. 0% 12. 0% 12.2% 15. 0% 10. 0% 10. 0% 6.2% 8.0 % 6.0 % 5.0 % 4.0 % 5.7% 0.0 % 2.0 % 0.0 % -5.0% 202
Slide 5: Financial Performance 1Q 2025
FINANCIAL PERFORMANCE 1Q 2025
Slide 6: 1Q25 Highlights
1Q25 Highlights Earnings: PPOP growth of 8.8% driven by sustained asset expansion, robust fee and trading income and moderating cost growth. Balance Sheet: Loan growth of 16.0% continue to outpace industry growth. Strong balance sheet and liquidity ratios. High dividend payout trims 1Q25 CET1 ratio
Slide 7: 1Q25 earnings highlights
1Q25 earnings highlights Net Income YoY 12.0 11.6 12.1 12.4 12.3 +2% 50. 0 Net Interest Income +2% Service Fees and 40. 0 +10% 30. 0 Trust 27.8 29.3 28.4 29.4 Trading & FX gains +3.85x 20. 0 28.7 10. 0 4.6 Other NoII -16% 4.2 4.7 4.6 0.7 4.6 6.0 2.6 1.9 1.4 1.1 0.0 1.7 1.2 1.5 Operating expenses +7%
Slide 8: Net interest income drivers
Net interest income drivers Interest income supported by loan expansion NIMs sequentially steady NII NIM BSP Policy Rate YoY 7.0 0% 70. 00 6.0 0% 6.50% 6.50% 6.25% 60. 00 Interest 5.75% 5.75% 32.1 +11% 28.3 29.7 30.7 31.5 from loans 5.0 0% 50. 00 Interest from Investments +1% 4.0 0% 40. 00 Other Int
Slide 9: Margin drivers
Margin drivers Lower funding cost offset falling yields Mixed yield trend across segments Quarterly NIM Investment securities yield Asset yield Loan yield Corporate & Commercial Auto Home Credit Cards Funding cost Deposit cost 15.1% 15.2% 15.5% 15.1% 7.3% 7.3% 14.6% 7.2% 6.9% 6.7% 5.6% 5.7% 5.6% 5.5
Slide 10: Loan portfolio profile
Loan portfolio profile 2,50 0 Continued to outpace industry loan growth Driven by robust commercial and consumer loans 25% Industry Loan Growth YoY MBT Loan Growth YoY YoY 1849 2,00 0 1833 20% 1700 Corporate & 1,650 +16% 1,593 Commercial 15% 16% In PHP billions 1,50 0 12%* 10% 5% 1445 1449 1,296 1,3
Slide 11: Loan growth drivers
Loan growth drivers Sustained corporate loan demand Auto loans and credit cards supported retail growth YoY YoY +16% +16% 1,600 400 Corporate 388 366 1,400 & Middle +17% 354 Market 345 Credit Card 1,200 & Others* +18% 173 177 160 In PHP billions 155 1,000 150 800 1,318 1,322 Auto 1,184 1,218 +21% 1,
Slide 12: Deposit profile
Deposit profile Costlier time deposits trimmed CASA ratio improves 110 % CASA TDs 100 % 90% 2,574 YoY 80% 39% 41% 42% 38% 42% 36% 2,375 2,430 70% 2,284 2,233 -6% 60% 50% 64% 40% TDs 30% 61% 59% 58% 62% 58% 1,086 -18% 20% 1,022 In PHP billions 983 861 796 10% 1Q19 1Q24 2Q24 3Q24 4Q24 1Q25 CASA CASA d
Slide 13: Non-interest income drivers
Non-interest income drivers Trading income recovery drove NoII growth Consumer drives fee income growth Breakdown of NOII excluding Trading Income 12.1 YoY Others, Others, +32% 15% Trust, 4% 4% 5% Commercial Loan 4.6 8.7 Service Fees (Incl. Trade), 32% +10% & Trust 6% 7% Consumer Products, 6.6 5.4 B
Slide 14: Operating expense breakdown
Operating expense breakdown Moderating cost growth Lower cost to income ratio 60.0% 58.8% 20.6 20.2 YoY 19.3 +7% 18.4 53.0% 18.0 55.0% 4.7 51.0% 51.7% 50.8% 4.6 4.6 Other 4.4 +8% 50.0% 4.3 Expenses 2.5 2.4 45.0% 2.4 2.6 Technology 2.4 1.7 1.6 +7% 1.7 1.5 40.0% 1.7 Premises 3.9 4.1 -10% 3.2 3.1 2.7 3
Slide 15: Digital Metrics on Retail Clients
Digital Metrics on Retail Clients 1Q25 ended at 44% digital penetration, up from 2024 1Q25 39% PY, with 2.1M total digital users 50% P90Day active base up by 44% 1.51M 1.55M 3% YTD, which shows that 43% 45% 1.55M out of the 2.1M are 40% 39% active users 37% 35% Note: Due to the decommissioning of MB
Slide 16: Provisions trend
Provisions trend Credit costs normalizes from a low base NPL cover still provides substantial buffer Provisions for Credit Cumulative Allowance 174% Quarterly Est. Credit Cost 163% 162% 164% 50.0 70 45.6 44.3 151% 45.0 44.0 43.3 42.5 60 40.0 57 50 35.0 103% In PHP billions 30.0 40 In bps 25.0 30 20.
Slide 17: Asset quality indicators
Asset quality indicators NPL loans pick up But still below industry level NPL NPL ratio Industry NPL ratio 45.0 40.0 5.0 % 35.0 29.3 4.0 % 30.0 3.5%* 27.1 26.8 In PHP billions 26.2 26.0 25.0 3.0 % 20.0 1.6% 2.0 % 15.0 10.0 1.0 % 5.0 0.0 % - 1Q24 1H24 9M24 2024 1Q25 1Q24 1H24 9M24 2024 1Q25 Note: Gro
Slide 18: Asset quality indicators
Asset quality indicators Restructured loans remains minimal Combined NPLs and Restructured loans well below industry NPLs MBT Restructured loans ratio MBT Combined NPL + Restructured Loans as Ratio to Gross Loans Industry Restructured Loans Ratio Industry NPL Ratio 4.5 % 4.0 % 2.1%* 3.5 % 3.5%* 3.0
Slide 19: Asset quality indicators
Asset quality indicators Commercial NPL ratio largely steady Consumer NPL ratio trending higher but well below industry levels Commercial NPL ratio Consumer NPL ratio Industry Consumer NPL ratio 35 2.0 % 30 1.5 % 25 5.3%* 1.2% 20 3.1% 1.0 % 15 10 0.5 % 5 - 0.0 % 1Q24 1H24 9M24 2024 1Q25 1Q24 1H24 9M
Slide 20: Consumer asset quality trend
Consumer asset quality trend Slight uptick QoQ in auto NPL ratio Mortgage NPL ratio slightly up QoQ Higher NPLs partly due timing of write-offs NPL ratio (Auto) Industry (Auto) NPL ratio (Mortgage) NPL ratio (CCL) Industry (CCL) Industry (Mortgage) 5.0 % 5.0%* 6.3%* 4.4%* 4.3% 2.4% 1.7% 0.0 % 1Q24 1
Slide 21: Other asset quality indicators
Other asset quality indicators Real and other properties acquired (ROPA) still flat Total non-performing assets (NPA) remains low ROPA Ratio to Gross Loans NPA NPA Ratio 12 0.8% 45 1.4% 43 12 0.7% 1.2% 41 1.1% 11 0.6% 1.0% 0.6% 39 In PHP billions In PHP billions 11 0.5% 37 0.8% 10 0.4% 35 0.6% 33 10
Slide 22: Capital and liquidity
Capital and liquidity Capital ratios provide buffers against risks Liquidity ratios still above threshold BLR CAR CET-1 12. 0% 11. 0% 10. 0% 20. 0% 15% 9.0 % 9.3% 19. 0% 8.0 % 7.0 % 14% 18. 0% 6.0 % Min BLR 5% 5.0 % 17. 0% 4.0 % 13% 3.0 % 16. 0% 1Q24 1H24 9M24 2024 1Q25 15.4% 15. 0% 12% LCR 14.7% 29
Slide 23: Return on Equity – Trend
Return on Equity – Trend Return on Equity (ROE) Medium-term ROE drivers 12.5% 13.0% 12.9% Portfolio Growth 10.3% 9.5% • 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 • Lower CIR to below 50% as digital inves
Slide 24: Outlook – Positives and Challenges
Outlook – Positives and Challenges • Sustained recovery in corporate capex and • Weaker macro conditions affecting consumer and discretionary consumer spending from driving loan business sentiment demand o Renewed inflationary pressures and FX volatility o Crowding out effect of twin fiscal deficits
Slide 25: Financial Summary
Financial Summary In PHP billions Balance Sheet 1Q24 1Q25 YoY Income Statement 1Q24 1Q25 YoY Total Assets 3,186 3,475 9% Net Interest Income 28.7 29.4 2% Loans and Receivables, Gross 1,593 1,849 16% Total Deposits 2,375 2,233 -6% Non Interest Income 6.6 8.7 32% CASA 1,392 1,437 3% Equity 346 377 9%
Slide 26: Additional Information
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Slide 27: Metropolitan Bank & Trust Company (Metrobank)
Metropolitan Bank & Trust Company (Metrobank) Overview Financial Data (PHP bn) 1Q 2025 DIVERSIFIED Total Assets 3,475 62 YEARS OF MULTI-AWARDED FINANCIAL CONGLOMERATE TRADING INFORMATION MBT PM | MBT.PS Ticker Loans and Receivables, Gross Total Deposits 1,849 2,233 SERVICE EXCELLENCE USD 5.8 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% 14.8% 47.9
Slide 29: Extensive Domestic and Overseas Coverage
Extensive Domestic and Overseas Coverage Total Group 18,900+ employee base Note: Includes Parent + Major Subs of the Bank Domestic Branch and ATM Networks Overseas Network Coverage 962 29 branches Branches, subsidiaries, offices 2,276 ATMs 100+ Remittance tie-ups 150+ Remittance agents 2025 Metropol
Slide 30: Dividend Policy
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 per share • Semi-annual payout 2. Robust NPL risk buffers already in place • NPL cover continues to remain ample vs. risk of ri
Slide 31: Our Sustainability Progress and Commitments
Our Sustainability Progress and Commitments Our Sustainable Finance Frameworks Our Commitment to Energy Transition The Sustainable Finance Framework (SFF) aligns with BSP circular 1085 and the Philippine Sustainable Finance Taxonomy, providing a clear structure to embed ESG across governance, strate
Slide 32: 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
Slide 33: Outstanding Debt Issuances & Investment Grade Credit Ratings
Outstanding Debt Issuances & Investment Grade Credit Ratings Debt Issuance Details Debt Maturity Profile (PHP Bn) Baa2 Jul-24 Stable Issue Coupon Maturity Amount Type • High capitalization, with a proven Date Rate Date (PHP Bn) history of shareholder support 2024 36.15 Jul-17 3.875% Jul-24 3.75 • Ro
Slide 34: Loan Portfolio Breakdown
Loan Portfolio Breakdown MBT Loan Portfolio By Industry Philippine Banks Loan Portfolio By Industry YoY YoY 15% 14% 13% 15% 14% Trade 12% 12% 11% 12% 11% +22% Trade +14% 10% 9% 11% 10% 10% 10% 9% 12% 11% Manufacturing 13% +9% Manufacturing +1% 18% 18% 20% 20% 20% 19% 19% 18% 20% 19% Real Estate +10%
Slide 35: Currency Breakdown
Currency Breakdown LOAN PORTFOLIO DEPOSITS Foreign Foreign Currency, 16% Currency, 18% Philippine Philippine Peso, 84% Peso, 82% 2025 Metropolitan Bank & Trust Company 35 This document is for internal use only and may contain privileged, proprietary or otherwise private information. It must not be r
Slide 36: 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 37: For more information, please visit our website
For more information, please visit our website: Latest Annual Reports 2024 2023 2022 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 38: Metrobank - You're in good hands
S Metrobank 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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