{"id":328028,"date":"2024-05-24T01:32:20","date_gmt":"2024-05-23T17:32:20","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=328028"},"modified":"2024-05-24T01:32:22","modified_gmt":"2024-05-23T17:32:22","slug":"stock-in-focus-metrobank-mbt-24-may-2024-by-rcbc-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-metrobank-mbt-24-may-2024-by-rcbc-securities\/","title":{"rendered":"Stock in Focus: Metrobank (MBT) – 24 May 2024 by RCBC Securities"},"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>RCBC Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>24 May 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 83.50<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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We boosted our target price (TP) for Metropolitan Bank & Trust Company (Metrobank) to Php83.50 from Php78.00 as we rolled forward our Price-to-Book ratio (PBR) estimates and raised our 2024 loan growth forecast to 11.5% from 10.0%. We believe the bank is well positioned to sustain its strong start for 1Q with loan growth seen to be sustained from the improvement in economic conditions. Furthermore, it has a defensive edge from its strong asset quality and highest dividend yield (best among all banks in our coverage). Reiterate BUY.<\/p>\n\n\n\n

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

Core net income forecasts slightly raised<\/h3>\n\n\n\n

We raised our 2024 core net income forecast by 1% as we lifted our loan growth assumption to 11.5% from 10.0% because of the improved confidence of the corporate and middle market segments. Furthermore, this could be boosted by the anticipated rate cuts, which may start in 4Q 2024. <\/p>\n\n\n\n

1Q 2024 earnings results<\/h3>\n\n\n\n

Metrobank reported a 1st quarter (1Q) 2024 net income of Php12.0 billion, 14.5% higher y\/y. Net interest income grew 15% to Php28.7 billion with gross loans posting a double-digit growth of 12.1%. Non-interest income dropped by 19% primarily from the 68% plunge in trading and FX gains. Operating expenses grew by 6.5% with cost-to-income ratio improving to 51.3% from 51.6%.<\/p>\n\n\n\n

Double-digit loan growth<\/h3>\n\n\n\n

The company\u2019s loan growth continued to beat industry average of 9.3%. Corporate and middle market loan segment led the charge with an 11.2% growth to Php1.2 trillion, while the consumer segment climbed by 15.3% to Php345 billion, mostly from a 26% and 18% jump in credit card receivables and auto loans.<\/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>