Metrobank earmarks P5 B for capex

Metropolitan Bank & Trust Co. (Metrobank) is spending up to P5 billion for its capital expenditures this year.

Of the total amount, about 70 percent will be used to boost the bank’s information technology (IT) system.

“For the year 2023, the bank estimates to incur capital expenditures of about P3 billion to P5 billion, of which 70 percent is estimated to be incurred for IT,” Metrobank said in its latest preliminary information sheet.

The bank’s capex reached P3.69 billion last year.

Metrobank’s profit jumped by 47.9 percent to an all-time high of P32.77 billion last year from P22.15 billion in 2021, as the Philippine economy further reopened with the lifting of strict COVID-19 quarantine and lockdown protocols.

It also reported a 31.4 percent drop in total provision for credit and impairment losses to P8.11 billion in 2022 from P11.83 billion in 2021.

This, after the bank’s non-performing loan (NPL) ratio eased to 1.9 percent from 2.2 percent, better than the industry’s 3.3 percent. Moreover, its NPL cover remained substantial at 172.4 percent, reflecting strong ability to cover any potential risks to portfolio health.

Metrobank ended 2022 with total consolidated assets of P2.8 trillion, 13.6 percent higher than the P2.5 trillion recorded in 2021, maintaining its status as the country’s second largest private universal bank.

Total equity stood at P318.5 billion, while capital ratios remained one of the highest in the industry, with capital adequacy ratio at 17.7 percent and common equity Tier 1 (CET1) ratio at 16.8 percent, all well above the minimum regulatory requirements.

The 60-year old bank has an extensive consolidated network that spans over 940 domestic branches nationwide, more than 2,300 ATMs, and 30 foreign branches, subsidiaries and representative offices.