Metrobank says no customer affected by P1.75-B fraud

On the heels of sanctions imposed by the Bangko Sentral ng Pilipinas (BSP) on Metropolitan Bank and Trust Co. (MBTC) in relation to the P1.75-billion fraud perpetuated by one of its officials, the George Ty-led bank reiterated none of its customers were affected.

"MBTC assures the public that bank operations remain business as usual. After conducting a 100 percent audit, the bank reiterates that no customer was affected," the bank said in a regulatory filing on Tuesday.

"This is an isolated incident," MBTC emphasized, saying the perpetrator acted alone and for her sole benefit.

The policy-setting Monetary Board has sanctioned MBTC, ordering bank officials who failed to perform adequate oversight in relation to the incident be suspended or reprimanded.

"The board and senior management accept accountability and command responsibility for the incident and commits to implementing the directives," MBTC said.

The bank, however, declined to identify the officials being suspended or reprimanded as ordered by the BSP.

"The individual details of the sanctions were not publicly released by the BSP and thus we cannot disclose anything beyond the official statement," MBTC head of corporate communications Estela Calderon told GMA News Online.

In July, the National Bureau of Investigation arrested Ma. Victoria Lopez, head of MBTC's corporate service management, for falsifying documents of a client to allegedly reap in P1.75 billion.
"She has been apprehended and cases against her have been filed," MBTC said.

"MBTC acknowledges the examination concluded by the BSP on the P1.75-billion internal fraud case," the bank said.

The BSP also required the bank to earmark P4.45 billion for covering operational risks.

"With P2.0 trillion in assets and P210 billion in equity, MBTC is in a strong position to set aside P4.45 billion of capital reserve in line with the BSP’s directive," it said.

"In addition, the bank has proactively absorbed the entire amount related to this incident in the third quarter. Despite this, the growth momentum of the bank remains robust and results for the year are ahead of plan," it added.

MBTC said it appreciates the BSP’s affirmation of the bank's strong financial condition, safety and soundness.

"MBTC proactively reviews and improves its systems, which is exactly how the fraud was detected," the bank said.

"The bank’s control framework remains effective and even stronger," it added.

Thus, the BSP recognized the immediate actions taken by MBTC, as well as the medium to long-term initiatives that will serve to further improve governance, compliance, and control, according to the bank. — VDS, GMA News