Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said Wednesday it expects loans to increase 20 percent year-on-year in 2017, driven by the robust domestic economy.
Metrobank senior vice president Jette Gamboa said in a news briefing in Makati City the bank was in a position to sustain the 20-percent loan growth achieved last year.
“We are so optimistic to sustain that growth this year,” Gamboa said, adding the bank was more bullish on the infrastructure projects of the government. She said Metrobank would support downstream lending.
She said the bulk of Metrobank’s total loan portfolio was composed of commercial lending, followed by consumer lending.
“The 20-percent growth last year was actually a reflection of the strong economic growth,” she said. Gamboa said the more robust outlook for the economy this year would translate into a higher growth of its core businesses, particularly loans.
Metrobank said it was putting up a $2-billion medium-term note program in a bid to have a maximum flexibility in accessing markets and maximizing opportunities to raise funding for future growth.
Metrobank said the issuance of notes pursuant to the program should be subject to favorable market conditions, any applicable regulatory requirement and certain closing conditions and deliverables that are usual and customary for transactions of such nature.
Metrobank offered long-term deposits amounting to P5 billion last year, taking advantage of excess liquidity in the financial system and low interest rates environment.
Metrobank’s net profit in 2016 fell 3 percent to P18.1 billion from P18.6 billion a year ago. Net income in the fourth quarter rose 3 percent to P5.5 billion.
The bank grew its loan book faster than the industry average and strategically re-positioned its balance sheet to provide a steady source of recurring income.
The bank’s current and savings account deposits kept its high growth rate of 21 percent to reach P846 billion.