Metrobank redeems P8.5B worth of debt notes

MANILA, Philippines—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 tier 2 notes, which were issued in 2007, will mature in 2017 but Metrobank has the option to redeem them in the fifth year.

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

“We are projecting that the early redemption will reduce our capital adequacy ratio from 15.4 percent as of June 30, 2012, to 13.5 percent, which is considered compliant with the BSP [Bangko Sentral ng Pilipinas] minimum CAR requirement,” said Jette Gamboa, Metrobank head of strategic planning and investor relations.

Metrobank’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 year on year to P4.3 billion on higher earnings across lending, treasury, and investment and fee-based businesses. It grew its loan book by 18 percent in the first quarter to P456.1 billion year on year. It ended March with P909.1 billion in consolidated assets and total equity of P109.7 billion.

Last May, Metrobank named seasoned banker Fabian Dee as its new president, taking over the post of Arthur Ty, who was elevated to the post of chairman.