Metrobank sees robust commercial loan growth on gov’t infrastructure thrust

TY-LED Metropolitan Bank & Trust Co. (Metrobank) is bullish on the growth of its commercial loans for 2017, with its lending activities expected to get a boost from the government’s aggressive infrastructure spending.

“[ With] infrastructure [spending] as the main lever this year...I think that’s what our clients are excited for, the optimism is basically around that... I believe that will impact us positively carrying over into this year,” Metrobank Executive Vice- President and Head of Institutional Banking Sector Mary Mylene A. Caparas told reporters on Wednesday.

President Rodrigo R. Duterte’s administration is eyeing to increase spending on infrastructure projects to an equivalent of 7.1% of the country’s total gross domestic product (GDP) by 2022 as it aims to spur the economy to expand within 7-8% over the same period from 6.5-7.5% currently. For 2017, the government set a P3.35-trillion budget, earmarking P860.7 billion on infrastructure spending, equivalent to 5.4% of GDP, against the P756.4 billion programmed in 2016.

“Loan growth is also a reflection of how the economy grows,” Ms. Caparas said.

Metrobank booked a 22% growth in its commercial loan portfolio in 2016, making up bulk of the bank’s total loan portfolio, which likewise expanded by 20% last year.

“We definitely surpassed the growth of our peers. Much of that credited to [ our] commercial loans,” Metrobank Senior VicePresident and Head of Strategic Planning Division Jette C. Gamboa said, noting that the banking industry’s loan growth was at around 17-18% last year.

Asked if the bank will be able to sustain its loan portfolio growth for 2017, Ms. Caparas said they are “very optimistic that we can do it.”

“In terms of loan growth [this year], should be about the same as last year,” she said.

Broken down, the bank’s total loan book was 25% consumer lending while the rest was commercial.

Meanwhile, asked if Metrobank plans on adding more branches for this year after it ended 2016 with 959 branches, Ms. Gamboa said, “This year, we’re not really going to be aggressive in terms of opening branches... The figure will probably be around 10.” New branches will be situated in the countryside as more than half or 55% of its current network is located in provincial areas, the official said.

The Ty-led lender saw its bottom line decline to P20.316 billion at end-2016 from the P20.643 billion recorded in 2015.

Shares in Metrobank gained 50 centavos or 0.58% to end at P85.50 apiece on Wednesday. •