Metrobank sold P2.9B in foreclosed assets in first nine months

Metropolitan Bank and Trust Co., the country's largest lender in terms of assets, has sold P2.9-billion worth of foreclosed assets during the first nine months of the year. In a statement to the Philippine Stock Exchange, the bank said the amount was 170-percent higher than what it sold in the same period in 2006. "All these properties were sold in-house and through our broker and branch network. The continued improvement in the economy and the sustained growth in property development are helping asset sales of Philippine banks. As we forge stronger tie-ups with broker networks, coupled with our aggressive sales efforts, we remain positive on the prospects of asset disposal activities," said Christine Carandang, Metrobank senior vice president. Carandang added that there are also various ways of asset disposal that the bank is looking into. "These include retail sales through auctions and joint ventures with reputable real estate firms. We choose on the basis of timelines and pricing benefits. On the whole, these initiatives are supportive of the bank's strategy of maintaining a healthy balance sheet," Carandang said. Metrobank also continued to strengthen its balance sheet through disposal of close to P10 billion in non-performing assets in 2006. As of September 2007, the group’s net investment properties improved to only 4.7 percent of consolidated total assets from 5.3 percent in the comparative period. Consolidated non-performing loan ratio likewise dropped to 6.9 percent of total consolidated loan portfolio from 9.8 percent as of September 2006. The lender earlier reported a 19.7 percent year-on-year increase in consolidated net income to P5.31 billion for the first nine months of the year, while consolidated total assets stood at P673.84 billion at the end of the third quarter. - GMANews.TV