Metrobank to merge with credit card unit

Metropolitan Bank & Trust Co. (Metrobank) is merging with its wholly-owned credit card unit Metrobank Card Corp. to increase the lender's profitability.

In a regulatory filing submitted by Metrobank Investor Relations head Patricia Carmen Pineda on Thursday, the Ty-led bank said its board of directors approved the plan to merge Metrobank Card into Metrobank.

"The board, on March 13, 2019, approved the proposal to merge the subsidiary into the parent bank subject to shareholder and regulatory approvals," the lender said.

Metrobank said the proposed merger will unlock the value of Metrobank Car's, being its wholly owned subsidiary to "improve synergy and cross-sell, increase profitability and improve capital efficiency, and enable Metrobank to be more competitive in the credit card business."

The lender said it is set to get its shareholders approval on April 24 during the bank's annual stockholders' meeting.

"The merger is subject to the approval by at least two-thirds of the stockholders on April 24, 2019. Upon shareholders’ approval, regulatory approvals will be sought," the bank said. —KBK, GMA News