a.

Political Factors
 Board Composition
Having a right board of directors is not easy. It should be composed of experienced,
proficient, has integrity, competence, financial literacy, diligence, has good judgement, and good
governance business leaders. Moreover, nominating board of directors is not that instant.
Metrobank’s nomination committee screens and recommends candidate to the Board and
Senior Management and assesses the qualifications with consideration to the regulations lowered
by Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) to
ensure the right candidates. The bank has a board of 12 directors which 10 are non-executive
directors and five are independent.
Dividend Policy
Metrobank’s dividends are stated and paid out of unrestricted retained earnings as the
Board may govern and in accordance with the provisions of the law and regulations of BSP and
the SEC. Cash dividends are subject to approval by at least most of the Board while stock
dividends require prior clearance from the BSP, SEC, and the Philippine Stock Exchange (PSE).

b. Economic Factors
 Economy Recovery Amidst Covid-19 and Inflation
After the severe year of COVID-19 global pandemic, business organizations expected the
start of economic recovery in the year 2021 but they have encounters surging inflation. Prices
hits their highest. In the Philippines, there are signs of recovery in the second half of the year
with 5.7% GDP growth. While experiencing economic recovery, monetary policy remained
reconciling despite the threat on inflation. Prices of food, transportation and oil rose as the
economy recovers.
Metrobank amidst of this economic recovery posted with a performance having a net
income of Php 22.2 billion, a 60% higher than the year 2020. The success of the strategy they
had adopted. Also, Metrobank’s capital position remained impressive with having total equity of
Php 318.5 billion while total capital adequacy ratio was at 20.1% above the regulatory threshold.

c. Social Factors
 Consumer’s Education/Knowledge
 Year 2021, thousands business companies were virtual or digital because they opted for it
for them to keep operating. The normal setup consumers used to have been changed in a snap.
Online transactions in the banking industry have been the new norm and most consumers are not
that knowledgeable and capable to access.
Metrobank adopted this online banking and transactions and took advantage of it to
continue spreading financial literacy. The bank conducted series of webinars to provide
consumers the information and tools to guide them. They have used online platforms to deliver
the latest information about their products and services and to educate customers about it.

d. Technological Factors
 Improvements in Security Software
Banks often conduct millions of transactions including Metro Bank. Therefore, it is crucial
for them to implement protective security measures to secure their data from cyberattacks. Data
breaches caused by a weak cybersecurity system may easily lead to their customer base moving
their money elsewhere. That is why Metro Bank strengthen their governance framework,
policies, regulations, and standards. Their Information Security Division oversees supervising all
information security operations at the Bank and setting up procedures for protecting its
information assets against loss or unauthorized use of information.
For identifying all relevant third parties, the risks they bring, and rapidly mitigating any high
or medium risks, Metro Bank fully operationalized a third-party security management framework
in 2021. They assessed over 1,000 third-party service providers. The new normal and work-
from-home setups' risks were further reduced in 2021. Additionally, compliance testing to
system security controls was performed.
 Online Banking
The value of business transactions conducted via Metro Bank digital platforms surged by
50% yearly in 2021. Approximately 27% of the volume is distributed through digital means, up
from 25% in 2020. 39% of their corporate clients have enrolled in the MBOS platform, based on
usage. The fact that 61% of these are active users demonstrates how its online banking system
helps businesses improve operational efficiency.
Metrobank continued to boost financial literacy by utilizing opportunities in the digital
environment. The Bank held a series of webinars in 2021 with the goal of giving clients
important knowledge and resources to direct their investing choices. The Bank conducted
competence development activities online for both clients and employees due to the lack of in-
person interactions. To effectively assist the Bank's clients, it used its best resource.

e. Environmental Factors
 Environmental compliance
Non-compliance with environmental laws, which may result in fines from the
government and harm the brand of Metro Bank, is one of the issues the bank must deal with.
Therefore, Metro Bank appoints DENR-Pollution Control Officers on its corporate centers and
branches to strictly enforce compliance with all applicable environmental regulations. No fines
or cases of environmental dispute resolution were brought against Metro Bank in 2021 for
breaking environmental laws and/or regulations.
Across the nation, Metrobank supports environmental projects. Led by Purple Hearts Club's
with a theme "You're in Green Hands" was an environmental stewardship program which is a
successful project of Metro Bank. The program aggressively promotes initiatives like tree
planting and mangrove restoration to alleviate environmental challenges.

f. Legal factors
 Consumer and Data Protection
Consumers are considerably more susceptible to these frauds in difficult economic times
than they are in regular ones. Particularly when it comes to financial products and services on
digital platforms, Metro Bank provides an ideal environment for fraud and scams. The Bank
adheres to and puts into practice these consumer protection standards in order to foster a
customer-centric culture. These standards include full disclosure and transparency to enable
customers to make informed financial decisions and to obtain a reasonable and comprehensive
understanding prior to using the Bank's products and services. The confidentiality, security,
accuracy, and integrity of the customer's personal and account information are protected by a
solid and dependable IT system with well-defined protocols, a secure database, and routinely
revalidated procedures. The Fraud Management Division of the Bank uses a number of methods
to prevent and reduce fraud.