Metropolitan Bank & Trust Company (Metrobank) is closing its offering of P10 billion Peso-denominated fixed-rate bonds ahead of schedule due to strong demand.
In a disclosure to the Philippine Stock Exchange, the bank said its bond offer will end on October 17, 2022, ahead of the initial October 19, 2022 date previously set.
The Bonds have a tenor of 1.5 years and an interest rate of 5.0 percent p.a., in an aggregate principal of Php10.0 billion, with an option to upsize.
Metrobank said proceeds will be used for general working capital needs. Earlier, it said “Proceeds will be used to refinance maturing issuances and diversify the Bank's Philippine Peso funding sources while supporting the Bank's operations.”
The Bonds are intended to be issued and listed on the Philippine Dealing Exchange (PDEx) on October 28, 2022. The issuance is part of Metrobank's increased P200.0 billion Bond and Commercial Paper Program.
First Metro Investment Corporation, ING Bank N.V., Manila Branch, and Standard Chartered Bank are the Joint Lead Managers and Joint Bookrunners of the offer. Metrobank, together with FMIC, ING, and SCB, are the Selling Agents of this issuance.
The bank reported that its net income surged 95 percent to P7.6 billion in the second quarter of the year, boosting first half earnings by 33 percent to P15.6 billion year-on-year.
Metrobank said it almost doubled its net income because of its better performance across the board—expansion of its loan portfolio, improving interest margin, robust fee income growth, and stable operating costs.
“The continued improvement in the Bank’s performance cements our strategy as we enable various customers and businesses as economic activities accelerate. This also validates the recent recognitions we received from prestigious publications, naming us the country’s best bank,” said Metrobank President Fabian S. Dee.
He added that, “Our focus on serving our client needs while actively managing risks and promoting efficiencies has driven our solid operating results, and will continue to do so in the medium term as the economy expands.”
Gross loans rose by 9 percent year-on-year to P1.3 trillion, led by a 12 percent growth in corporate and commercial lending and 16 percent increase in gross credit card receivables.
As net interest margin recovered to 3.4 percent, net interest income increased by 6 percent to P39.8 billion.
Non-interest income went up by 8 percent in the first half driven by an 18 percent jump in fees and other non-interest earnings. Despite volatile markets, the Bank managed to post P3.4 billion profit from trading income from strong customer driven flows.