Metrobank sells P2billion to P3 billion in bad assets in 2009

MANILA, Philippines- Second largest lender Metropolitan Bank & Trust Co. is targeting to dispose less foreclosed assets this year given the difficult market condition, head of investor relations department Jette C. Gamboa said. The George S. K. Ty-led bank will likely dispose between P2 billion and P3 billion of bad assets in 2009 from P5 billion the previous year. In a telephone interview Thursday, Gamboa said the bank would unload its idle assets through sale to direct buyers, the branch network and its dedicated acquired asset management and disposition group. “The projected sale of foreclosed assets is reflective of the business conditions but it is still a good amount. We have a group whose major responsibility is to manage our real and other properties acquired," she told GMANews.TV. However, Gamboa said it will be difficult to assess how Metrobank’s nonperforming asset ratio will be at the end of the year from 6.3 percent in 2008 with the estimated sale of idle assets. “We need to assume there is a certain growth in asset. Suffice it to say, it (disposal) will help improve the NPA ratio. It depends on how the economy will behave. If things will be good, hopefully we will see further improvement," Gamboa said. This year, Metrobank sees a slowdown in loan growth of between five percent and eight percent from 17 percent in 2008 as the economy will be sluggish on weaker exports. Prudent targets have been set amid a challenging 2009 with emphasis on safety and quality but the bank has remained “resilient, well-capitalized, profitable and better equipped." “Given the uncertainties in the global economy, risk aversion will remain a resounding theme this year. Metrobank will continue to focus on a strong risk management culture by promoting credit excellence and focusing on market and operational risks," the bank said. Metrobank recently raised P4.5 billion through the issuance of unsecured subordinated debt. “We feel our capital position is adequate. If there are opportunities in the market, we will probably (go back) but there are no specific plans," head of treasury group Fernand Antonio A. Tansingco said. -Ruby Anne M. Rubio, GMANews.TV