Metrobank okays merger with card unit

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, is seeking approval from stockholders and regulators for the planned merger between the bank and unit Metrobank Card Corp.

Key officials of the bank approved the merger in a meeting Wednesday. Metrobank Card Corp., a finance company and general insurance agency, is 100-percent owned by Metrobank. 

“The board (of directors), on March 13, 2019, approved the proposal to merge the subsidiary into the parent bank subject to shareholder and regulatory approvals,” the bank disclosed to the stock exchange.

The board set an annual stockholders’ meeting on April 24, 2019 to get the shareholders’ approval of the merger. The merger is subject to the approval by at least two-thirds of the stockholders. Regulatory approvals will be sought.

“… The proposed transaction will unlock the value of MCC, being a wholly-owned subsidiary of Metrobank, and help realize the following objectives: improve synergy and cross-sell, increase profitability and improve capital efficiency, and enable Metrobank to be more competitive in the credit card business,” Metrobank said.

Metrobank maintained its status as one of the country’s biggest banks as of end-December 2018. 

It registered a net profit of P22 billion in 2018, up 21 percent from the previous year, on the back of sustained strength of its core businesses.

Metrobank president Fabian Dee said 2018 was a milestone year for the bank. “Despite the challenging market conditions that especially characterized the second half of the year, we achieved consistent core income growth while keeping operating costs in check and asset quality intact,” he said.

Commercial loan portfolio increased 11 percent on year driven mainly by top corporate accounts, followed by the middle market and small and medium enterprise accounts.

Total deposits increased 2 percent to P1.8 trillion, of which 62 percent consisted of low-cost deposits. Funding was supplemented by the issuance of P8.68-billion long-term negotiable certificates of deposit in October, and P28 billion in fixed-rate peso bonds in November and December.