FY 2017 - Metrobank Presentation - Jan… · Company Presentation FY 2017 . Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC,

Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017 © 2018 Metropolitan Bank & Trust Company | Investor Relations | February 2018 | Company Presentation

This document is for internal use only and may contain privileged, proprietary, or otherwise private information. It must not be released to other parties in whatever form without prior consent of the authors.

PROPRIETARY AND CONFIDENTIAL

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Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC, the PSE and the BSP as of December 31, 2017

Company Presentation

FY 2017




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Metrobank is a premier financial conglomerate with a diversified business portfolio

Strong market positions in the industry (as of Dec. 2017)

o Total assets: PHP2.1 trillion

o Total deposits: PHP1.5 trillion

o Total loans: PHP1.3 trillion

o Total equity: PHP202 billion; 14.4% Capital Adequacy Ratio, 11.8% CET1

o Local network: Over 950 branches and 2,300 ATMs

Investment Grade Ratings from Moody’s (Baa2) and Fitch (BBB-)

Solid track record spanning 55 years; established primarily to provide financial services to the Filipino-Chinese community; listed on the Phil. Stock Exchange in 1981

Majority-owned by the Ty family whose major business interests are in financial services, auto services, real estate development, infrastructure and insurance

Metropolitan Bank & Trust Company (“Metrobank”)




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Metrobank Highlights

DIVERSIFIED FINANCIAL CONGLOMERATE WITH 55 YEARS

OF SERVICE EXCELLENCE

SYSTEMICALLY IMPORTANT “BIG 3 BANK”, INVESTMENT GRADE AT

PAR WITH THE PHILIPPINES

CONSISTENTLY RECOGNIZED AS THE STRONGEST BANK IN THE

PHILIPPINES

PRUDENT BALANCE SHEET BUILD-UP AND EFFICIENT USE OF

CAPITAL TO DELIVER SUSTAINABLE GROWTH

EXTENSIVE NETWORK WELL-POSITIONED TO SERVICE THE

COUNTRY’S GROWING ECONOMY

2011 2012 2013 2014 2015 2016

952 branches

54% Countryside




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1

2

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Industry Leading Growth in Loans (+19%) and strong momentum in Low Cost Deposits growth (+12%) cementing MBT’s position as

one of the Big Three Banks 3.8% NIM, highest among peers driven by robust loan expansion and overall NII growth of 16%; Asset mix shift to loans positions MBT for further improvement in NII

Normalized level of trading gains; Positive fee growth being delivered

in “high value” services

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Continued superior asset quality with better-than-

industry NPL ratio at 1.0%

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Manageable 6% opex growth; reached optimal level of branch network and manpower complement

FY 2017 Summary




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FY 2017 Financial Performance




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Key Performance Drivers (FY 2017)

• P18.2bn net income; Core income up 10%

• Sustained double-digit growth in loans (+19%) and low cost deposits (+12%)

• Net Interest Margin further improved from 3.5% to 3.8%

• Net Interest Income (+16%) accounts for 73% of total revenue

• Manageable OPEX growth (+6%)

• Better-than-industry* NPL ratio at 1.0%

Operating Income and OPEX (PHP bn) FY 2017 Operating Highlights

49.0 52.9 61.4

2.1 8.6

3.9 17.0 17.4 19.0

-40.2 -44.6 -47.5

FY 2015 FY 2016 FY 2017

NII Trading & FX Other Non-II** OPEX

NII +16%

OPEX +6%

*vs UKB Industry’s 1.4% Gross NPL Ratio as of Nov. 2017 **Includes Share in Net Income of Investees




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50% 57% 61%

28% 19% 19%

22% 25% 21%

FY 2015 FY 2016 FY 2017

Loans Securities Others

Total Assets (%)

Asset Mix

887 1,061

1,265

492 354

388 381

461

427 1,761 1,876

2,080

FY 2015 FY 2016 FY 2017

Loans Securities Others

Total Assets (PHP bn)

Balance sheet shift in 2016 has positioned MBT to capitalize on strong momentum in loan growth

Loans

+19% YoY

Loans

+20% YoY

Exposure to securities reduced from 28% in 2015 to 19%




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Gross Interest Income Components (PHP bn)

Net Interest Income

Net Interest Margin (%)

Net Interest Income (PHP bn) Net Interest Income (PHP bn)

Resulting in more stable and predictable NII contribution and margin expansion

+16%

3.54% 3.54%

3.75%

FY 2015 FY 2016 FY 2017

49.0 52.9 61.4

FY 2015 FY 2016 FY 2017

12.4 12.7 12.7 12.9 13.4 13.9 14.5 15.1 15.7 16.1

Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

11.6 11.9 12.1 12.6 13.4 14.2 14.8 15.9 16.6 17.3

4.8 4.9 4.6 3.8 3.4 3.5 3.7 3.7 3.8 3.8

Q3-15 Q4-15 Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17

Gross Int Income Loans Gross Int Income Investments & Others

+21bps




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887

1,061

1,265

FY 2015 FY 2016 FY 2017

Total Loan Portfolio (PHP bn)

Loan Portfolio

74% 75% 76%

26% 25% 24%

FY 2015 FY 2016 FY 2017

Commercial Consumer

Loan Portfolio Breakdown

Auto Finance 46%

Home Mortgage

33%

Credit Card & Others

21%

Consumer Portfolio Breakdown (FY 2017)

Loan growth continues to be driven by the commercial segment, aligned with macro economic expansion

+19% YoY




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701

846

950

FY 2015 FY 2016 FY 2017

1,258

1,389

1,528

FY 2015 FY 2016 FY 2017

Total Deposits (PHP bn)

Deposit Profile

CASA (PHP bn)

Stable funding cost due to sustained double-digit growth in low cost (CASA) deposits

CASA % of Total Deposits

56% 61% 62%

+12% YoY

+10% YoY




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Non-Interest Income

9.8 10.3 11.0

1.2 1.3

1.4 11.0 11.6

12.4

FY 2015 FY 2016 FY 2017

Service Fees, Commissions Income from Trust

Service Fees, Commissions, Trust Income (PHP bn)

Change in Non-II driven primarily by expected normalization of trading and FX gains

19.2

25.9 22.8

FY 2015 FY 2016 FY 2017

Non-Interest Income (PHP bn)

2.1

8.6

3.9

FY 2015 FY 2016 FY 2017

Trading and FX Gains (PHP bn)




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17,174

17,711 17,608

FY 2015 FY 2016 FY 2017

Operating Expenses Stabilizing opex growth in 2017 following build-up of frontline staff and branch expansion in 2015-16

Operating Expenses (PHP bn) Headcount*

945

959 952

FY 2015 FY 2016 FY 2017

Domestic Branches

* Includes FMIC, PSBank, MCC, OMLF

16.0 18.4 20.2

24.2 26.2

27.3

40.2

44.6 47.5

FY 2015 FY 2016 FY 2017

Manpower Expenses Other OPEX




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12.1%

14.3%

12.5% 11.8%

8.50% 9.3%

10.1% 11.0%

16.0%

17.8%

15.5% 14.4%

10.0% 10.8%

11.6% 12.5%

FY 2014 FY 2015 FY 2016 FY 2017 2014-16 2017 2018 2019

Basel III Capital Ratios (%)

BSP minimum requirements with phased-in D-SIB charge

MBT BSP




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Additional Information




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Industry Standing

Stake3

Leading Market Position in Key Segments

Business segment

-

Treasury and Trust Banking

#1 PDEX Securities

House

#3 Trust Assets

Under Management

99.2%

Investment Banking

Largest domestic

investment bank

#1 underwriter of PHP bonds

28.0%

Life insurance

JV with AXA

#2 in Premium income2

#4 by total

assets2

59.9%

Leasing

Leasing and financing JV

with ORIX Japan

82.7% 80.0%*

Retail Banking

Second largest savings bank in the country

#1 Auto Loan Portfolio

#3 Home Mortgage

Portfolio

#1 Credit Cards in Force1

#1 Receivables1

1 Based on Credit Card Association of the Philippines; 2 Insurance Commission (2016)

* To increase to 100% by Q3 2018




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Domestic Branch Network

Extensive Domestic and Overseas Coverage

Overseas Network Coverage

As of December 31, 2017

33 Branches, subsidiaries, offices

134 Remittance tie-ups 184

Remittance agents

952 branches

2,352 ATMs

Provincial Distribution: Luzon outside MM: 30% Visayas + Mindanao: 24%




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Recent Awards and Recognition

Corporate Governance

Award

Best Auto Loan

Product

Strongest Bank -Philippines

#1 Secondary Trading Gov’t and Corporate Bonds

Best Securities House Bank Category

2016 2015 & 2016 2015 & 2016 2016 2015 & 2016

Best Commercial Bank - Philippines

Best UITF Fund Provider -

Philippines

Retail Payment Product of the Year

Best Trade Finance Bank - Philippines

#69 Global 2000: World's Best Employers

2017 2017 2017 2017 2017

Institutional Investors Governance Awards




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Investment Grade Rating

Baa2

BBB- BBB-

Baa2

Sovereign Rating Bank Financial Strength

Metrobank was upgraded by Fitch in January 2018




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Ownership structure (major business units)

As of January 2018

Ty Family / MBT

Foundation

14.93%

Free float

48.98% 36.09%

Listed on PSE

99.2%

Investment Banking Leasing

59.9%

Savings Bank

82.7%

Credit Cards

80.0%*

28.0%

Listed on PSE

Bancassurance JV between Metrobank and ANZ *Note: To increase to 100% by Q3 2018

JV between AXA, Metrobank Group and GT Capital (25.3% owned)




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www.metrobank.com.ph

Annual Reports

https://www.metrobank.com.ph/annualreports.asp

Company Disclosures

https://www.metrobank.com.ph/investor_relations.asp

Financial Reports

https://www.metrobank.com.ph/financialreports.asp

Corporate Governance Report

https://www.metrobank.com.ph/acgovernance.asp

Useful links

https://www.metrobank.com.ph/annualreports.asp

https://www.metrobank.com.ph/investor_relations.asp

https://www.metrobank.com.ph/financialreports.asp

https://www.metrobank.com.ph/acgovernance.asp




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For your comments and queries contact us via:

[email protected]

Tel: (632) 857 9783

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 securities of the Bank or any of its affiliates. The information contained herein (including, among others, the market data, industry data and other industry statistics included in this presentation derived from public or third party sources) has not been independently verified and thus no representation or warranty, express or implied, is made as to the fairness, accuracy, currency, completeness or correctness of the information, opinions and conclusions contained in this presentation by the Company. Accordingly, no reliance should be placed on the fairness, accuracy, currency, completeness or correctness of this presentation, nor any inferences drawn from the manner in which the contents have been compiled and presented. Unauthorized distribution, alteration, or reproduction, whether in whole or in part in any form, is strictly prohibited by the Company. Data presented here was taken from publicly available sources (PSE, SEC, BSP). In case of any discrepancy, the information from the public sources will prevail.

Documents

FY 2017 - Metrobank Presentation - Jan… · Company Presentation FY 2017 . Based on consolidated data from the latest audited financial statements submitted to the Philippine SEC,