10 November 2014

MS. JANET A. ENCARNACION

Head, Disclosure Department
PHILIPPINE STOCK EXCHANGE, INC.
3/F Philippine Stock Exchange Plaza,
Ayala Triangle, Ayala Avenue,
Makati City

Dear Ms. Encarnacion:

We enclose a copy of our press release entitled Metrobank 9-month income hits P13.1 billion.
Thank you.

Very truly yours,

Juan Placido T. Mapa III

Head, Investor Relations

METROPOLITAN BANK & TRUST COMPANY

Metropolitan Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph

10 November 2014

Metrobank 9-month income hits P13.1 billion

Metropolitan Bank & Trust Company (Metrobank) reported unaudited consolidated net
income of P13.1 billion for the first nine months of 2014. The Bank booked P4.0 billion
net income in the third quarter, 57% higher compared with the same period last year.
Year-to-date net interest income increased 23% to P34.0 billion, and contributed 64% to
the P53.0 billion total operating income. This was driven by the better-than-expected
growth in loans and deposits, and relatively healthy spreads. For the period, net
interest margin (NIM) was maintained at the 3.8% level, one of the highest in the
industry.
Metrobank President Fabian Dee commented: The robust core income growth reflects
positively on our strategy. Our thrust is to maximize returns from traditional revenue
sources while prudently managing balance sheet growth.
At the end of September 2014, Metrobanks loans and receivables portfolio expanded
by 21% year-on-year to P697.3 billion. Demand was particularly strong from
commercial clients, including middle market and SMEs. On the other hand, reflective of
the Banks push for low cost funding, total deposits sustained its high growth rate of
23% to reach P1.1 trillion. The Group opened 31 local branches this year to bring the
total to 887, still the largest in the industry.
President Dee elaborated further: We remain optimistic about the prospects of the
domestic economy. We are continuously building our capabilities, and we will
accelerate our expansion into new growth areas, increase sales coverage and
strengthen client relationships to ensure sustainable profitability and capital efficiency.

METROPOLITAN BANK & TRUST COMPANY

Metropolitan Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph

Meanwhile, the Bank reported P19.0 billion in non-interest income consisting of P6.6
billion in service charges and commissions, P1.5 billion from trading and forex gains,
and miscellaneous income of P10.9 billion. This included proceeds from property
divestments and sale of non-core assets in the first and third quarter, respectively,
which were done in preparation for Basel III.
Operating expense was kept at a reasonable level with recurring expenses up 7% for
the period. Provisions for credit and impairment losses were lower by 17% year-onyear at P3.3 billion.
Asset quality continues to improve as non-performing loans (NPL) ratio dropped further
to 1.1% from 1.4% as of the same period last year. NPL coverage increased to 169%
from 140% previously.
Metrobank ended the period with consolidated assets reaching P1.5 trillion and total
equity of P142.2 billion. Basel III capital adequacy ratio (CAR) remained well above the
regulatory requirements at 16.2% with common equity tier 1 (CET1) at 12.1%.

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Metrobank is the countrys premier universal bank and has the largest domestic network of 887 branches and over 2,000 automated
teller machines (ATMs) nationwide, and 32 foreign branches, subsidiaries and representative offices. For inquiries, please contact
the Investor Relations Department at 857-9783 and investor.relations@metrobank.com.ph. Or call the Metrobank 24/7 Customer
Hotline at 8700-700, or log on to www.metrobank.com.ph. For provincial areas, call toll-free 1-800-1888-5775.

METROPOLITAN BANK & TRUST COMPANY

Metropolitan Plaza, Sen. Gil J. Puyat Avenue, 1200 Makati City, Philippines; Tel. no. (632) 898-8000 / 857-0000; Fax (632) 817-6248; www.metrobank.com.ph