Metropolitan Bank and Trust Company
Encyclopedia
The Metropolitan Bank and Trust Company , commonly known as Metrobank. It has a diverse offering of financial services, from regular banking to insurance
. Metrobank is the second largest bank in the Philippines.
.
The Central Bank, on April 1977, authorized Metrobank to operate a Foreign Currency Deposit Unit (FCDU). In the same year, branches and offices totaled 100 and the bank inaugurated its new Head Office at Metrobank Plaza in Makati.
On August 21, 1981, the Central Bank authorized Metrobank to operate as a universal bank. Following the grant of the universal banking license, Metrobank entered the following ventures: the acquisition of majority ownership of Philippine Savings Bank
(the second largest savings bank in the country at that time); the establishment of a joint travel agency venture with Thomas Cook Group
in Thomas Cook Phils., Inc. in 1986; and the tying-up with Toyota Motor Corporation
of Japan and Mitsui
to put up Toyota Motor Philippines in 1988. Metrobank subsequently entered into joint ventures with several renowned corporations like Sumitomo Mitsui Banking Corporation
of Japan
to create Sumigin Metro Investment Corporation; the National Mutual Holdings Ltd. of Australia
to create Philippine AXA Life Insurance Corporation; and the ORIX
of Japan to create ORIX Metro Leasing and Finance Corporation.
In September 1982, the number of Metrobank branches, offices and subsidiaries surpassed the 200 mark. A year later, Metrobank topped all the private domestic bank in total resources with P8.8 billion.
The bank continued to experience steady growth through the years and in September 1989, it increased its authorized capital stock from P2 billion to P5 billion. The bank’s total capital funds on June 30, 2006 stood at P57.3 billion. Its consolidated resources amounted to P588.1 billion as of the same period. As of June 2007 assets reached P669.1 billion ($14.5 billion) (P46=$1).
Metrobank’s subsidiaries are Toyota Motor Philippines Corporation, Philippine Savings Bank, First Metro Investment Corporation, Metrobank Card Corporation, ORIX Metro Leasing and Finance Corporation, SMBC Metro Investment Corporation, First Metro Travelex (formerly Thomas Cook (Phils.)), Philippine AXA Life Insurance Corporation, Mirant Global Corporation, Philippine Charter Insurance Corporation, MBTC Technology, Inc., Toyota Financial Services Corporation, Toyota Cubao, Inc., Toyota Manila Bay Corporation, First Metro Securities Corporation, First Metro International Investment Co. Ltd., Metropolitan Bank (Bahamas) Ltd., MB Remittance Center Inc. (USA), Metro Remittance Singapore, Metro Remittance UK Limited, Metro Remittance (Italia) SpA, Metro Remittance S.A. (Spain) and MBTC Exchange Services GmbH (Austria).
The Metrobank Group has a combined network of over 800 local and international branches/offices, remittance offices and subsidiaries worldwide. It has 557 domestic branches and 32 offices in New York, Hong Kong, Tokyo, Osaka, Seoul, Pusan, Guam, Taipei, Kaohsiung, Madrid, Barcelona, Vienna, Rome, Bologna, Milan, Singapore, Chicago, Hawaii, and Shanghai.
On September 28, 2009, Metrobank is the first local bank to offer a line of CNY denominated offerings.
Governor Amando M. Tetangco, Jr. announced Banco de Oro and Metrobank set aside provisions totalling $ 94.7 million to cover their exposure to the Lehman Brothers
' collapse.' Metrobank set aside $ 14 million in provisional funds, and it has $ 20.4 million worth of bonds issued by Lehman Brothers and P 2.4 billion ($ 51.28 million) in loans to a Philippine-based subsidiary of the US investment bank. The BSP data revealed Metrobank has a Lehman Brothers
exposure of $ 71 million, and it set aside a buffer
equivalent to 70% of its exposure.
, but other major competitors include Rizal Commercial Banking Corporation
(RCBC), Banco de Oro (BDO), Land Bank of the Philippines
, and Philippine National Bank
.
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
. Metrobank is the second largest bank in the Philippines.
History
Metropolitan Bank and Trust Company (Metrobank) was established by a group of businessmen on September 5, 1962 at the Wellington Building in Binondo, Manila. In August 1963, the bank’s first branch was established in Divisoria. Four years later, Metrobank opened its Davao branch, the bank’s first provincial branch. At the onset of the 70s, Metrobank opened its first international branch in TaipeiTaipei
Taipei City is the capital of the Republic of China and the central city of the largest metropolitan area of Taiwan. Situated at the northern tip of the island, Taipei is located on the Tamsui River, and is about 25 km southwest of Keelung, its port on the Pacific Ocean...
.
The Central Bank, on April 1977, authorized Metrobank to operate a Foreign Currency Deposit Unit (FCDU). In the same year, branches and offices totaled 100 and the bank inaugurated its new Head Office at Metrobank Plaza in Makati.
On August 21, 1981, the Central Bank authorized Metrobank to operate as a universal bank. Following the grant of the universal banking license, Metrobank entered the following ventures: the acquisition of majority ownership of Philippine Savings Bank
Philippine Savings Bank
The Philippine Savings Bank , commonly known as PSBank or PSB, is a savings bank based in the Philippines. It is a subsidiary of Metrobank and is the second-largest savings bank in the Philippines.-Subsidiaries and affiliates:...
(the second largest savings bank in the country at that time); the establishment of a joint travel agency venture with Thomas Cook Group
Thomas Cook Group
Thomas Cook Group plc is a travel company created on 19 June, 2007 by the merger of Thomas Cook AG and MyTravel Group plc. At flotation on the London Stock Exchange 52% of the shares in the new company were held by the German mail order and department store corporation Arcandor and 48% owned by...
in Thomas Cook Phils., Inc. in 1986; and the tying-up with Toyota Motor Corporation
Toyota Motor Corporation
, , , commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2010, Toyota Motor Corporation employed 317,734 people worldwide, and was the world's largest automobile manufacturer by production.The company was founded by...
of Japan and Mitsui
Mitsui
is one of the largest corporate conglomerates in Japan and one of the largest publicly traded companies in the world.-History:Founded by Mitsui Takatoshi , who was the fourth son of a shopkeeper in Matsusaka, in what is now today's Mie prefecture...
to put up Toyota Motor Philippines in 1988. Metrobank subsequently entered into joint ventures with several renowned corporations like Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
is a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
of Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
to create Sumigin Metro Investment Corporation; the National Mutual Holdings Ltd. of Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
to create Philippine AXA Life Insurance Corporation; and the ORIX
ORIX
is a financial services group established 17 April 1964 as Orient Leasing Co., Ltd.. The company's name was changed to ORIX Corporation in 1989...
of Japan to create ORIX Metro Leasing and Finance Corporation.
In September 1982, the number of Metrobank branches, offices and subsidiaries surpassed the 200 mark. A year later, Metrobank topped all the private domestic bank in total resources with P8.8 billion.
The bank continued to experience steady growth through the years and in September 1989, it increased its authorized capital stock from P2 billion to P5 billion. The bank’s total capital funds on June 30, 2006 stood at P57.3 billion. Its consolidated resources amounted to P588.1 billion as of the same period. As of June 2007 assets reached P669.1 billion ($14.5 billion) (P46=$1).
Metrobank’s subsidiaries are Toyota Motor Philippines Corporation, Philippine Savings Bank, First Metro Investment Corporation, Metrobank Card Corporation, ORIX Metro Leasing and Finance Corporation, SMBC Metro Investment Corporation, First Metro Travelex (formerly Thomas Cook (Phils.)), Philippine AXA Life Insurance Corporation, Mirant Global Corporation, Philippine Charter Insurance Corporation, MBTC Technology, Inc., Toyota Financial Services Corporation, Toyota Cubao, Inc., Toyota Manila Bay Corporation, First Metro Securities Corporation, First Metro International Investment Co. Ltd., Metropolitan Bank (Bahamas) Ltd., MB Remittance Center Inc. (USA), Metro Remittance Singapore, Metro Remittance UK Limited, Metro Remittance (Italia) SpA, Metro Remittance S.A. (Spain) and MBTC Exchange Services GmbH (Austria).
The Metrobank Group has a combined network of over 800 local and international branches/offices, remittance offices and subsidiaries worldwide. It has 557 domestic branches and 32 offices in New York, Hong Kong, Tokyo, Osaka, Seoul, Pusan, Guam, Taipei, Kaohsiung, Madrid, Barcelona, Vienna, Rome, Bologna, Milan, Singapore, Chicago, Hawaii, and Shanghai.
On September 28, 2009, Metrobank is the first local bank to offer a line of CNY denominated offerings.
Lehman Brothers' exposure
On September 17, 2008, Bangko Sentral ng PilipinasBangko Sentral ng Pilipinas
The Bangko Sentral ng Pilipinas and commonly abbreviated as BSP is the central bank of the Philippines. It was rechartered on July 3, 1993, pursuant to the provision of the 1987 Philippine Constitution and the New Central Bank Act of 1993...
Governor Amando M. Tetangco, Jr. announced Banco de Oro and Metrobank set aside provisions totalling $ 94.7 million to cover their exposure to the Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
' collapse.' Metrobank set aside $ 14 million in provisional funds, and it has $ 20.4 million worth of bonds issued by Lehman Brothers and P 2.4 billion ($ 51.28 million) in loans to a Philippine-based subsidiary of the US investment bank. The BSP data revealed Metrobank has a Lehman Brothers
Lehman Brothers
Lehman Brothers Holdings Inc. was a global financial services firm. Before declaring bankruptcy in 2008, Lehman was the fourth largest investment bank in the USA , doing business in investment banking, equity and fixed-income sales and trading Lehman Brothers Holdings Inc. (former NYSE ticker...
exposure of $ 71 million, and it set aside a buffer
Buffer
Buffer may refer to:*Buffer state, a country lying between two potentially hostile greater powers, thought to prevent conflict between them* Buffer zone, any area that keeps two or more other areas distant from one another, may be demilitarized...
equivalent to 70% of its exposure.
Subsidiaries and affiliates
Metrobank is divided into the following subsidiaries and affiliates, which are listed depending on their location of operation:Domestic subsidiaries and affiliates
- First Metro Investment Corporation
- First Metro Securities Brokerage Corporation
- First Metro Travelex
- Metrobank Card Corporation
- Orix Metro Leasing and Finance Corporation
- Philippine AXAAXAAXA S.A. is a French global insurance group headquartered in the 8th arrondissement of Paris. AXA is a conglomerate of independently run businesses, operated according to the laws and regulations of many different countries. The AXA group of companies engage in life, health and other forms of...
Life Insurance Corporation - Philippine Charter Insurance Corporation
- Philippine Savings BankPhilippine Savings BankThe Philippine Savings Bank , commonly known as PSBank or PSB, is a savings bank based in the Philippines. It is a subsidiary of Metrobank and is the second-largest savings bank in the Philippines.-Subsidiaries and affiliates:...
- SMBCSumitomo Mitsui Banking Corporationis a Japanese bank based in Yurakucho, Chiyoda, Tokyo, Japan. It is a member of the Sumitomo Group and Mitsui Group. As of the year 2009, SMBC was the second largest bank in Japan in terms of assets.-History:...
Metro Investment Corporation - Toyota Cubao
- Toyota Financial Services Philippines Corporation
- Toyota Manila Bay Corporation
- Toyota Motor Philippines Corporation
International subsidiaries and affiliates
- First Metro International Investment Corporation Ltd HK
- MBTC Exchange Service GmbH - Vienna
- MB Remittance Center HK
- Metro Remittance Center SA - Spain
- Metro Remittance (Italia) SpA
- Metro Remittance Singapore Pte Ltd
- Metro Remittance (UK) LimitedMetro Remittance (UK) LimitedMetro Remittance Limited is a subsidiary of Metropolitan Bank and Trust Company or Metrobank. As the name implies, the company operates in the UK and caters for the OFW market, enabling them to send money to family and friends back in the Philippines....
Ownership
- George S.K. Ty: 18.26%
- PCD Nominee CorporationPCD Nominee CorporationPCD Nominee Corporation is a wholly owned subsidiary of the Philippine Central Depository, a corporation established to improve operations in securities transactions and to provide a fast, safe and highly efficient system for securities settlement in the Philippines...
: 17.96% (11.47% Filipino, 6.49% foreign) - Federal Homes: 7.53%
- Philippine Securities Corporation: 7.5%
- Mary Vy Ty: 6.43%
- Metrobank directors: 3.75%
- Metrobank officers: 0.003%
- Public stock: 37.57%
Competition
Metrobank, as the 2nd largest Philippine bank, is always trying to stave off competition to stay as one of the country's largest bank. Its main competitor is Bank of the Philippine Islands (BPI)Bank of the Philippine Islands
Bank of the Philippine Islands is the oldest bank in the Philippines still in operation and is the country's third largest bank in terms of assets, the country's largest bank in terms of market capitalization, and the country's most profitable bank...
, but other major competitors include Rizal Commercial Banking Corporation
Rizal Commercial Banking Corporation
The Rizal Commercial Banking Corporation was established in 1960 as a development bank and is licensed by the Bangko Sentral ng Pilipinas for both commercial and investment banking...
(RCBC), Banco de Oro (BDO), Land Bank of the Philippines
Land Bank of the Philippines
Land Bank of the Philippines , also known as LANDBANK or by its initials, LBP, is a bank in the Philippines owned by the Philippine government with a special focus on serving the needs of farmers and fishermen...
, and Philippine National Bank
Philippine National Bank
The Philippine National Bank is one of the largest banks in the Philippines, ranking fourth in terms of assets...
.