Metrobank Concludes USD720-Million Stock Rights Offering at Philippine Stock Exchange

metrobankMANILA, PHILIPPINES – Metropolitan Bank and Trust Company (Metrobank), the second largest bank in the Philippines, held a bell ringing ceremony at the Philippine Stock Exchange (PSE) to mark the completion of its Php32 billion (USD720 million) stock rights offering.

The rights offer is the bank’s largest capital raising transaction in its 52-year history. The offering involved 435,371,720 common shares.

“This landmark offering supports the company’s mission of ensuring that its financial capability is invigorated for dynamism, growth, and stability,” said PSE Chairman Jose T. Pardo in his welcome remarks during the ceremony.

“I am pleased that the PSE is part of the bank’s growth as it serves as an avenue for capital raising,” added Mr. Pardo.

J.P. Morgan and UBS were acting as Joint Global Coordinators, Joint International Lead Managers and Joint Bookrunners for the transaction. First Metro Investment Corporation was acting as Sole Domestic Lead Manager and Joint Bookrunner. HSBC was acting as co-manager.

Metrobank earlier reported consolidated net income of P20.1 billion in 2014, with P7.0 billion income recognized in the fourth quarter. Total resources hit a new high of P1.6 trillion, up 16% from last year’s P1.4 trillion.

Net interest income (NII) increased 20% to P45.8 billion and contributed 61% of the Bank’s total operating income compared to 48% in 2013.

The strong performance in the Bank’s core business was driven by robust growth in loans and deposits, and relatively stable spreads amidst the low interest rate environment and tough competition.

Metrobank’s recent investments in its branch network, coverage expansion, and internal system enhancements were catalysts for its sustained balance sheet growth.

Deposits increased by 17% to P1.2 trillion, providing the Bank with stable low cost funding to fuel its healthy loan expansion.

Building on the momentum from previous quarters, loans and receivables further accelerated to close the year at P759.5 billion or 24% growth with the commercial segment posting the strongest year-on-year increase.

Meanwhile, non-interest income was reported at P29.6 billion, consisting of P8.9 billion in service charges and commissions, P3.2 billion from trading and forex gains, and miscellaneous income of P17.5 billion. Miscellaneous income included the sale of non-core assets as well as foreclosed properties. – BusinessNewsAsia.com

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