Metrobank allots P5 billion for 2022 capex

MANILA, Philippines — Ty-led Metropolitan Bank & Trust Co. (Metrobank) has earmarked as much as P5 billion for its capital expenditures this year, the bulk of which would go to information technology (IT) spending.

As part of the Metrobank’s material commitments for capital expenditures this year, the bank sets aside between P3 billion and P5 billion for its 2022 capital expenditures.

The bank’s capex for 2021 jumped by 29 percent to P3.82 billion from P2.96 billion in 2020 on the back of higher IT spending.

Of the total amount, about P3.36 billion were spent for various projects, including IT upgrades and modernization, while P261 million went to the consumer banking segment.

The Ty-led bank also spent P113 million for its treasury segment, P51 million for its corporate banking, and P31 million to expand and upgrade its branches nationwide.

Metrobank’s earnings surged by 60.2 percent to P22.2 billion in 2021 from P13.83 billion in 2020, as allocation for credit losses dropped sharply.

Fabian Dee, president and CEO at Metrobank, earlier said that the listed bank emerged stronger from the global health crisis as the country continues to recover from the pandemic-induced recession.

“The bank has emerged stronger and well-prepared to meet the needs of our stakeholders as the economy moves toward full recovery,” Dee said.

The bank’s provision for credit and impairment losses declined by 71 percent to P11.83 billion last year from the previous year’s P40.76 billion.

“Our positive performance in 2021 validates our strategies of fortifying our balance sheet and proactive provisioning during the pandemic,” Dee said.

Despite the challenging conditions in 2021, Metrobank’s non-performing loans (NPLs) declined by 12 percent, translating to an improved NPL ratio of 2.2 percent from 2.4 percent.

Despite the lower provisioning for soured loans, the bank’s NPL cover further improved to 174.7 percent in 2021 from163 percent in 2020.

Operating income reached P101.4 billion last year, while net interest margin stabilized at 3.4 percent since the second quarter of 2021, while fees and other non-interest income jumped by 27 percent to P21.1 billion on the back of higher transaction volumes and cross selling strategies mitigating lower trading income.

On the other hand, efforts to improve efficiencies continue to pay off as operating costs were kept under control at P59.5 billion from P60.12 billion.