Metrobank gets rid of P2.9-B foreclosed assets in 9 months

REPORT FROM BUSINESSWORLD METROPOLITAN BANK and Trust Company (Metrobank) has disposed of P2.9 billion worth of foreclosed assets in the nine months ending in September. This was 170% higher than the amount of real and other property assets (ROPA) sold a year ago, the country’s largest bank said in a disclosure to the Philippine Stock Exchange on Tuesday. ROPAs are properties acquired by banks in settlement of uncollected loans or past due accounts. These properties are eventually acquired through proceedings such as foreclosure or dacion en pago or payment in kind. "All these properties were sold in-house and through our broker and branch network," Metrobank Senior Vice-President Christine Carandang said in a statement. "The continued improvement in the economy and the sustained growth in property development are helping asset sales of Philippine banks," she pointed out. "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," she added. She also said the bank would seek other ways of getting rid of its foreclosed assets, including retail sales through auctions and joint ventures with real estate firms. "On the whole, these initiatives are supportive of the bank’s strategy of maintaining a healthy balance sheet," Ms. Carandang said. Metrobank continued to strengthen its balance sheet through the disposal of close to P10 billion in nonperforming assets in 2006, which allowed it take on new business opportunities. Based on its quarterly report to the Securities and Exchange Commission as of September, the Metrobank group’s net investment properties, which include foreclosed assets, improved to only 4.7% of consolidated total assets from 5.3% a year ago. The group’s consolidated nonperforming loan ratio also dropped to 6.9% of total loans from 9.8% as of September 2006. The Metrobank group earlier posted a 19.7% year-on-year increase in consolidated net income to P5.31 billion as of end-September, while consolidated total assets stood at P673.84 billion. — Gerard S. dela Peña/BusinessWorld