Metrobank targets loan growth
METROPOLITAN Bank & Trust Co. (Metrobank) seeks to grow its loans by up to a fifth this year on increased clientele as the lender targets to expand into untapped market segments and key cities nationwide.
Metrobank Senior Vice-President and Head of Strategic Planning Jette C. Gamboa said the Tyled lender is targeting to grow its loan portfolio by 18-20% in 2015 from the P759.5 billion recorded at end-2014 — which was up 24% from the previous year.
“Sources of the target growth would be broad-based but we’re looking to expand our branch network as well as our sales force in order to continue to deliver the growth targets that we have,” Ms. Gamboa told reporters on the sidelines of the bank’s annual stockholders meeting yesterday.
As of end-2014, Ms. Gamboa said 25- 26% of the bank’s total loan portfolio are consumer loans (auto, housing, credit card), while the rest are commercial loans.
Mary Mylene A. Caparas, Metrobank executive vice-president and head of institutional banking sector, said the economic growth seen in the last few years “has trickled down to the provinces” and has presented an opportunity for the bank to further expand its market reach.
“We see a very strong growth for this year. Although we’re very much focused on Metro Manila since we believe it is still the center of economic activities, we’re deploying manpower in the key cities as well,” Ms. Caparas said, adding that the Ty-led bank would also want to further grow its reach to the small and medium scale enterprises (SMEs).
“The SME sector is fast-growing, and we would want to grow into that since we’re still underrated there,” she added.
The Ty-led Metrobank plans to open about 30 branches annually in the next three years in its bid to grow its network and expand its market reach in provincial areas.
But even with its planned network expansion, Metrobank Executive Vice-President and Head of the Financial Markets Sector and Treasury Group Fernand Antonio A. Tansingco said the bank is seeking to grow organically and is currently not in talks with other banks for possible acquisition.
“Mergers and acquisitions are not on the top of our agenda right now. We’re more focused on expansion by key areas,” Mr. Tansingco said.
Metrobank’s, the country’s second- largest lender in terms of assets, has 920 consolidated branches as of last year, the larg- est network in the industry, with 2,100 automated teller machines. It also has six branches overseas, and 26 subsidiaries and office outside the country.
Meanwhile, to prepare for stiffer competition after rules regulating entry of offshore lenders were liberalized last year, Metrobank said it seeks to focus on building on its competitive advantage, which includes maximizing its wide branch network and client pool.
“We’ll leverage on the strengths that we have,” Ms. Caparas said, adding that part of the bank’s strategy is to offer services that foreign entrants won’t be able to provide, like servicing payrolls and giving clients easier access to credit through its large network.
Shares in Metrobank closed at P93 each yesterday, down by P1.75 or 1.85% from the previous day’s close of P94.75 apiece.