{"id":324043,"date":"2023-07-13T01:09:21","date_gmt":"2023-07-12T17:09:21","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=324043"},"modified":"2023-07-13T01:09:23","modified_gmt":"2023-07-12T17:09:23","slug":"stock-in-focus-metrobank-mbt-13-july-2023-by-regina-capital-development-corp","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-metrobank-mbt-13-july-2023-by-regina-capital-development-corp\/","title":{"rendered":"Stock in Focus: Metrobank (MBT) – 13 July 2023 by Regina Capital Development Corp."},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>MBT<\/td><\/tr>
Company Name<\/strong><\/td>Metropolitan Bank and Trust Company (Metrobank)<\/td><\/tr>
Broker<\/strong><\/td>Regina Capital Development Corp.<\/td><\/tr>
Opinion Issued on<\/strong><\/td>13 July 2023<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 75.00<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

We are keeping our BUY rating on MBT with a Target Price of P75.00\/share.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

In the 1st quarter (1Q) 2023, Metropolitan Bank & Trust Company (MBT) reported a Net Income of P10.62 billion, reflecting a +30.98% y\/y improvement amid the recovery of the local economy. The expansion MBT\u2019s bottomline was largely attributable to the +28.85% y\/y rise in its NII (P24.87 billion) and wider NIMs.<\/p>\n\n\n\n

During the quarter, gross loans went up by +12.5% y\/y but softened by -3% q\/q due to a more modest loan demand from corporate and commercial loans as affected by seasonality. Meanwhile, consumer loans went up by +11.8% y\/y, thanks to the +30% y\/y spike in CC receivables and +10.7% y\/y increase in auto loans. For this year, the management sees consumer loans to grow by high single-digit, while corporate loans to expand by high single-digit to low double-digit for corporate loans.<\/p>\n\n\n\n

On the other hand, MBT\u2019s NIMs expanded by 54bps y\/y and 34bps q\/q, buoyed by higher loan yield and yield in investment securities, which offset the upward movement in funding cost. This is as CASA ratio eased to 62.1% as firms used their cash mostly for working capital requirements in 1Q23. During the briefing, MBT lowered its credit cost guidance from 50bps-60bps to just around 50bps.<\/p>\n\n\n\n

However, MBT\u2019s flow biz edged relatively lower, dragged by the -20.12% y\/y decline in misc. income particularly on particularly on ROPA booking and sales. On the flipside, it was partially offset by higher fee income (+13.40% y\/y) amid larger transaction volume.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>