Metrobank redeeming notes

METROPOLITAN Bank and Trust Co. is set to exercise its option to retire P8.5 billion worth of subordinated debt notes qualifying as tier 2 capital this October.

The notes, which were issued in 2007, will mature in 2017 but Metrobank has the option to redeem them on the fifth year.

In a disclosure to the Philippine Stock Exchange on Thursday, Metrobank said its board had approved the early re- demption of the notes.

The early redemption is seen reducing the bank’s capital adequacy ratio (CAR) from 15.4 percent as of June 30, 2012 to 13.5 percent, which is compliant with the Bangko Sentral ng Pilipinas’ minimum CAR requirement, said Jette Gamboa, head of strategic planning and investor relations at Metrobank.

The bank’s long-term strategy is to sustain profitability and maintain a healthy balance sheet. The bank grew its net profit in the first three months by 40 percent yearon-year to P4.3 billion on higher earnings across lending, treasury and investment and fee-based businesses. The bank grew its loan book by 18 percent in the first quarter to P456.1 billion year-on-year. Consolidated assets as of March reached P909.1 billion, while total equity was P109.7 billion.

In May, Metrobank named seasoned banker Fabian Dee its new president, taking over the post of Arthur Ty who was named chair.