Metrobank out to redeem P8.5B worth of debt notes

Metropolitan Bank and Trust Co. has obtained clearance from the Bangko Sentral ng Pilipinas to redeem P8.5 billion worth of subordinated debt notes qualifying as tier 2 capital by Oct. 22 this year.

“The early redemption is in accordance with the terms of the note issued on Oct. 19, 2007 giving the bank the option to redeem the 10-year note on its fifth anniversary,” Metrobank told the Philippine Stock Exchange on Friday.

The bank has estimated that this early redemption would reduce its capital adequacy ratio (CAR) from 15.4 percent as of end-June to 13.5 percent, which is still considered ahead of the Bangko Sentral ng Pilipinas’ minimum CAR requirement of 10 percent.

The long-term strategy of taipan George Ty’s banking arm is to sustain profitability and maintain a healthy balance sheet.

Metrobank booked P6.1 billion in consolidated net profit in the first semester, up by 45 percent from a year ago, on higher earnings from core lending and other financial services.

For the second quarter alone, net profit surged by 83 percent year-on-year to P3 billion. This performance boosted the bank’s average return on equity to 13 percent from 10.7 percent a year ago.

The bank also expanded its balance sheet by 16 percent, with P965.4 billion in consolidated resources by end-June.

Metrobank has 760 branches, 1,400 automated teller machines and an overseas footprint of 38 foreign branches, subsidiaries and representative offices. Among its key financial subsidiaries are: First Metro Investment Corp., Philippine Savings Bank, Metrobank Card Corp., and Orix Metro Leasing and Finance Corp.