A.

Nature and Classification

The Metropolitan Bank & Trust Company, commonly known as Metrobank, was established in 1962
and has become the premier universal bank and among the foremost financial institutions and also the
second largest bank in the Philippines. It boasts a diverse product portfolio including investment
banking, thrift banking, leasing and financing, bancassurance. It offers a full range of services to large
local and multinational corporations, middle-market and SMEs, high net-worth individuals and retail
segment.

The bank has a history spanning more than 50 years, and continues to aim to deliver meaningful
banking to Filipinos everywhere. The secret behind success is that they value the relationship with
their customers through conducting themselves with the objective of providing the highest level of
customer satisfaction. Metrobank currently spans a consolidated network of over 2,300 ATMs
nationwide; over 950 domestic branches; and 32 foreign branches, subsidiaries, and representative
offices.

B. Mission and vision statement

C. Geographic Areas

Metrobank has 730 local branches all over the Philippines. 1t also has a wide distribution of
ATM machines in 2,200 nationwide. This force enabled its customers to transact with the company in
any location of the country. Metrobank spread outs globally by beginning foreign branches in a total
of 69 all
over the world, so that Filipino overseas and other foreign investors or customers can transact with the
branches at relieve. 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. In September
1982, the number of Metrobank branches, offices and subsidiaries surpassed 200. A year later,
Metrobank topped all private domestic banks in total resources, with P8.8 billion. Listed Below are
some of its specific branches in the Province of Batangas.

Branch Name Address

Batangas - Balayan Antorcha cor. Emma Sison St. Balayan, Batangas

Batangas- Calicanto P. Burgos St. Extension, Brgy. Calicanto Batangas City,Batangas

Batangas - Main Corner J.P.Rizal & P. Burgos St. Batangas City, Batangas

Batangas - V. Luna V. Luna Street, Batangas City, Batangas

Batangas - Bauan National Highway, Poblacion I Bauan, Batanags

Batangas - Kumintang Ilaya National Highway, Kumintang Ilaya, Batangas

Batangas - Lemery Along Independencia & Ilustre St. Lemery, Batangas

Lipa Ayala Pres. J. P. Laurel Highway, Lipa City, Batangas

Lipa - B. Morada B. Morada Avenue, Lipa City, Batangas

Lipa Cathedral Brgy. 9A, C.M. Recto Ave. Lipa City, Batangas

Lipa - Tambo National Road, Brgy. Tambo Lipa City, Batangas

Batangas - Mabini Along National Road, Poblacion, Mabini, Batangas

Lima Park Lima Industrial park, Malvar, Batangas

Batangas - Nasugbu J.P. Laurel corner R. Martinez St., Nasugbu, Batangas

Rosario Batangas Gualberto Ave., Brgy. D. Poblacion Rosario, Batangas

Batangas - Sto. Tomas Brgy. 2, Maharlika Highway, Sto. Tomas, Batangas

FPIP-Sto. Tomas Batangas First Philippine Industrial Park, Sto. Tomas, Batangas

Batangas - Tanauan A. Mabini A. Mabini Avenue Extension Poblacion Tanauan, Batangas

Batangas - Tanauan J.P. Laurel J. P. Laurel Highway Tanauan, Batangas

Batangas - Rosario Beside Tan Wanam Grocery, Gualberto Avenue, Poblacion, Rosario,
4225 Batangas

Batangas - San Juan Gen. Luna, cor Dandan St, Poblacion, San Juan, 4226 Batangas

D. Management Team Critique - Company and CEO History

The Company

Founded on September 5, 1962, Metropolitan Bank & Trust Co. (Metrobank) has since become the
premier universal bank and among the foremost financial institutions in the Philippines. It offers a full
range of banking and other financial products and services, including corporate, commercial and
consumer banking, as well as credit card, remittances, leasing, investment banking and trust banking.
Metrobank currently spans a consolidated network of over 1,400 ATMs nationwide; over 760
domestic branches; and 38 foreign branches, subsidiaries, and representative offices.

Metrobank was incorporated in Binondo, Manila by a group of Filipino businessmen principally to

provide financial services to the Filipino-Chinese community. It opened its first local branch in 1963,
then expanded beyond Philippine shores only a few years after its establishment. Metrobank rolled out
its first international branch in Taipei in 1970 and a representative office in Hong Kong in 1973.

In 1975, Metrobank became the first of the private banks to move into American territory when it
opened its office in Guam. It later established branches in the United States mainland cities of
LosAngeles and New York. It established Metrobank Foundation, Inc.
In 1979, it established Metrobank Foundation, Inc. putting emphasis on both business success and
community contribution. The Foundation has since become one of the largest and most respected
charitable organizations in Asia.

In 1981, Metrobank was listed in the Philippine Stock Exchange and acquired its universal banking
license, gaining significant equity ownerships in local and international subsidiaries.

In 1986, it established its own credit card company, Unibancard Corporation (now Metrobank Card
Corporation).

In 1988, Metrobank entered into a joint venture with Japan’s largest automotive manufacturer and
Mitsui Corporation to establish Toyota Motor Philippines Corporation. A decade later, it partnered
with another global giant, the AXA Group, to give birth to Philippine AXA Life
InsuranceCorporation.

In 1990, Metrobank launched the country’s first and only talking ATM, Metrobank E.T.

In 1995, Metrobank became the first billion-dollar bank with total capital of Php 22.8 billion, the
largest in the industry. It is the first local bank to raise supplementary capital overseas with a total of
US $325 million in Lower Tier 2 Capital and Hybrid Tier 1 Capital in the years 2003 to 2006.
Metrobank has also been steadily expanding internationally.

In the late 1990s, Metrobank opened branches and offices in London, Taichung, Tokyo, and Seoul.
Metrobank was the first to be granted a banking license by the Japanese Ministry of Finance. It was
also the first Philippine bank in Korea.

In 2001, Metrobank became the first Philippine bank in China when it opened its branch in
Shanghai.In 2010, Metrobank inaugurated its wholly owned subsidiary, Metropolitan Bank (China)
Limited, the first foreign bank headquarters to be established in Nanjing. The new bank serves as the
base for Metrobank’s operations in China, with three branches located in Nanjing and Shanghai.

Metrobank remains dedicated to fulfilling its vision to be the best bank for all stakeholders from its
customers to the community. With people dedicated to product quality, service excellence, solid work
ethics, and good governance, Metrobank has established a reputation of stability, strength, and
leadership. It adheres to international best practices, careful strategic planning and prudent
decision-making, focused on further improving earnings quality and increasing shareholder value by
constantly reinforcing a customer-centric strategy built around the commitment of its people.

The CEO

Fabian S. Dee, Filipino, is the President and Chief Executive Officer of Metropolitan Bank & Trust
Co., the country’s premier universal bank, recognized by financial experts as the Best Bank and the
Strongest Bank in the Philippines today, since 2012.

Dee, who holds a degree in management engineering from the Ateneo de Manila University, also
served as chairman of LGU Guarantee Corp. and SMBC Metro Investment Corp.
He is a seasoned banker with about 30 years of experience in treasury, corporate banking, and retail
banking. Dee joined the Metrobank Group in 2000 to lead the Bank’s largest business center, then he
moved to Corporate Banking to reinforce Metrobank’s stronghold among the large conglomerates and
middle market accounts.

In 2006, he was appointed National Branch Banking Sector Head, successfully improving the Bank’s
footprint in the retail business. Within Dee’s term as President of Metrobank, he had concurrently held
various positions including Chairman and Director of Metrobank Card Corporation from 2006 until
2020, Chairman of Metro Remittance Singapore PTE Ltd. from 2010 until 2019, Chairman of LGU
Guarantee Corporation from 2017 until 2019, and Chairman of SMBC Metro Investment Corporation
from 2014 to 2017. He is also a director of Bancnet, Inc., and a trustee of Metrobank Foundation, Inc.

E. SWOT Analysis

STRENGTHS

- Number of Personnel and foreign partners had Increased

- Local Branches and ATMs Broad Distribution and Internet mobile banking
- Number of Foreign Branches had Increased
- The financial stability of Metrobank
- Positive Value System of Employees
- Give importance to Corporate Social Responsibilities

WEAKNESSES

- Provisions for Loans and Impairment Loss inclines

- Low Budget on Advertising
- Deposits to Capital Declines
- Interest Income Declines

OPPORTUNITIES

- Car Loan Financing and Credit Card Inclines

- Development and Training of Personnel
- Increased OFW remittances
- Banking Technology Innovation
- Lower Inflation rate of 0.9%

THREATS
- Improvement in Competitor’s Product
- Decreased in Construction Loan
- Foreign Currency’s Supply and Demand
- Climate Change Effects
- Increase inflation rate
- Reasonable Money Transfer Existence
F. Competitor SWOT Analysis

G. Industry and Relevant Competition

Metro bank, the Philippines' second largest bank, is always fighting off competitors in order to
maintain its position as one of the country's largest banks. The Sy-led Banco de Oro and the Ayala
group's Bank of the Philippine Islands (BPI) are its major competitors. Other major competitors
include state-owned Land Bank and UCPB, Lucio Tan's Philippine National Bank, Gotianun's East
West, the Dy family's Security Bank, China bank (partly controlled by the Sy and Dee families), and
the Yuchengco family's Rizal Commercial Banking Corporation (RCBC).

Banco de Oro (BDO) is one of Metro bank’s major competitors. Banco de Oro (BDO) is a
commercial and leading local / universal bank in the Philippines. It is a major and largest bank in the
Philippines in terms of assets, loans and deposits. The bank is the product of the Banco de
Oro-Equitable PCI bank merger after the boards of both Banco de Oro Universal bank and Equitable
PCI Bank agreed to merge on Dec 27, 2006. For a while, the entity was known as Banco de
Oro-EPCI, Inc., but announced that it would go by the name Banco de Oro Unibank, Inc. Starting
February 2007.

One of the main competitors of Metro bank is Bank of the Philippine Islands (BPI) it is the
oldest bank in the Philippines still in operation and is the country's 3rd largest bank and company in
terms of assets (US$ 15.29 billion). It is owned by Ayala Corporation, the largest conglomerate in the
Philippines, and is based in Makati City's Central Business District (CBD), on the corner of Ayala
Avenue and Paseo de Roxas. BPI is also the oldest bank in Southeast Asia and has a long and
distinguished history that spans over a century. It has either influenced or has been influenced by
many nations, including parts of the former Spanish Empire, especially Mexico, and the United States.
While many consider it an old institution, BPl is trying, with moderate success, to promote itself as a
dynamic institution that caters to its various clients, which hail from various sectors of Philippine
society.

The Land bank of the Philippines (LBP) is considered as one of Metro Bank's biggest rivals.
Bangko sa Lupa ng Pilipinas, also known as Land bank of the Philippines (LBP), is a
government-owned bank with special focus on serving the needs of farmers and fishermen. While it
provides the service of a universal bank, it is officially classified as a "specialized government bank"
with a universal banking license.

Among these major competitors, Metro bank can maintain its market share growth in the
banking industry, preserve financial stability, and expand its branch network internationally.
Corporate, commercial, and consumer banking, as well as credit cards, remittances, leasing,
investment banking, and trust banking, are all applicable. One of the advantages of metro bank to
other competitors is that it provides a stable job with financial and medical security. It offers good
retirement and longevity advantages, as well as security for both men and women in families. And by
comparing the strategies of Metro bank to its competitors it can develop excellent organizational
performance that can lead Metro bank to maintain its market growth.

H. Subsidiaries

Philippine Savings Bank - A savings bank based in the Philippines. It is a subsidiary of Metrobank
and is the 2nd-largest savings bank in the Philippines after BPI Family Savings Bank.
First Metro Investment Corporation - An investment banking arm of the Metrobank Group, one of
the nation's largest financial conglomerates. First Metro has fostered the development of the country's
capital markets for fifty-six years. The company offers debt and equity underwriting to loan
syndication, project finance, financial advisory, investment advisory, government securities, corporate
debt trading, online trading, and asset management services. First Metro Investment operates
businesses worldwide.

Orix Metro Leasing and Finance Corporation - A joint venture between Metropolitan Bank and
Trust Company (Metrobank) and ORIX Corporation, a pioneer in the leasing industry in Japan. The
Company’s primary business is providing leasing and financing services covering transportation
equipment, materials handling construction equipment, industrial, agricultural, medical and
manufacturing machineries, and other types of movable equipment.

First Metro Securities Brokerage Corporation - A stock brokerage house licensed to trade in the
Philippine Stock Exchange.

Metrobank Card Corporation - A wholly owned subsidiary of Metropolitan Bank and Trust
Corporation (MBTC). A Company that offers credit cards and other products. Metrobank Card also
provides insurance agency and other services.

Philippine Axa Life Insurance Corporation - a joint venture partnership between the Paris-based
AXA Group, and the Metropolitan Bank and Trust Company (Metrobank). It offers a complete range
of products for all its customers’ insurance and financial protection needs, including savings and
investments, health plans, and income protection.

I. Bank Organizational Structure

J. Customer base and Market share

K. Legal Structure

Metro bank operates in accordance to a responsible bank. They adhere to the highest
standards of corporate governance, exercising accountability, fairness, and transparency across all our
business operations. They exercise good management to provide our shareholders with sustainable
returns on their investments. And an institution with a heart They give back to the communities we
serve, committed to making meaningful contributions to the economic and social development of our
nation.

Metro bank has a Whistle-blowing policy that as a way of strengthening the Bank’s system of
integrity, all employees are encouraged to report irregular transactions. Towards this end, the Bank
instituted a Whistle blowing policy where acts of fraud, malpractice, conflict of interest or violation of
internal/regulatory policies, procedures and control may be reported to the Chief Audit Officer. The
Whistleblowing policy applies in cases when an employee deems it more prudent to report violations
or offenses to another authorized unit/person within the Bank, when the matter which is brought to the
attention of the immediate superior is not acted upon in accordance with the standard reporting
procedures, or is concealed, or the immediate superior is himself involved in the infraction, or the
reporting employee fears reprisal. Under the policy, the Bank shall maintain the identity of the
reporting employee as confidential and retaliation against any reporting employee shall not be
allowed. Consistent with the principles of good governance, the Chief Audit Officer reports to the
Board’s Audit Committee.

Metro bank and its covered subsidiaries have registered with the United States Internal
Revenue Service (U.S. IRS) on March 11, 2014 as a Participating Foreign Financial Institution not
covered by an Intergovernmental Agreement (IGA); or a Reporting Financial Institution under a
Model 2 IGA. Relative to the Philippines being one of the jurisdictions that have reached agreements
in substance as of November 30, 2014 and have consented to being included on the list of Reporting
Financial Institutions under IGA Model 1, the Bank subsequently registered as Reporting Financial
Institution under Model 1 IGA.

Metro bank’s success is due to its employees, who are dedicated to product quality and
service excellence, as well as strong work ethics and good governance. Customer delight, teamwork, a
passion for results, and integrity are all important characteristics that we uphold. Hard effort is
rewarded at Metro bank with a long-term career and a competitive rewards system.

L. Current Events and Economic Outlook

Surviving through the economic backlash brought about by the COVID-19 pandemic is a feat in itself.
By doing the spadework and adjusting to the demands of a changed world, many financial institutions
continue to grapple with the ongoing pandemic. However, it takes a special kind of fortitude to not
just survive, but to thrive and grow in these unprecedented times.

The Asiamoney Best Bank Awards 2021 recognized this fortitude in Metropolitan Bank and Trust Co.
(Metrobank), and fittingly hailed them as the “Best Domestic Bank in the Philippines”.

Despite an economic downturn, the Bank managed to grow its low cost current and savings accounts
(CASA) grew 22% to PhP1.3 trillion, reflecting the Bank’s solid deposit franchise and customer
confidence in the Bank.

The bank also generated a 26% increase in pre-provisioning profits to PhP61.8 billion in 2020. This
enabled the Bank to set aside PhP40.8 billion in provisions, thus creating a solid buffer against
potential risks from the pandemic. Metrobank’s proactive provisioning raised non-performing loan
(NPL) cover to 163% from 103% in 2019, strengthening the Bank’s capacity to withstand asset
quality pressures.

Metrobank believes its prudent approach in 2020 paved the way for a strong start this year, with net
income growing 28% to PhP11.7 billion in the first half of 2021.

Stable asset quality and superior capital ratios give the Bank a strong position to take on opportunities
ahead.

M. Products and Pricing

N. Profitability Trends

O. Business Segments

Metro bank is a multinational corporation. Individual and commercial clients can access a full
range of banking services through the Metropolitan Bank and Trust Company's network of more than
1,950 ATMs in the Philippines, more than 860 domestic branches, and 31 overseas branches,
subsidiaries, and representative offices in Asia, Europe, and the United States. Deposits, savings,
loans, credit, investment help, life insurance, trade finance, money transfer and remittance, and
Internet banking are among the services it offers. It has subsidiaries and affiliate enterprises all over
Asia, as well as in several major US cities. Metropolitan Bank & Trust Co. is a financial services
company that offers banking, finance, leasing, real estate, and stock brokerage. Consumer Banking,
Corporate Banking, Investment Banking, Treasury, Branch Banking, and Others are the segments
through which it operates. Consumer Banking is responsible for consumer loans and support.
Corporate and institutional customers are served by the Corporate Banking segment, which handles
loans, other credit facilities, as well as deposit and current accounts. Investment Banking segments
organizes structured funding and offers services such as privatizations, initial public offerings, advice,
and mergers and acquisitions. Money market, trade, and treasury services are all part of the Treasury
segment. The Branch Banking segment is responsible for branch deposits, loans, and other
loan-related activities. Remittances, leasing, account financing, and other support services are
included in the others section. Siao Kian Ty created the corporation on April 6, 1962, and it is based in
Makati, Philippines.

P. Economic Sensitivity

The Philippines' economy has recovered more slowly than our earlier expectation, with GDP
continuing to shrink by 4.2% in 1Q21. Business confidence and private consumption remain sluggish
and pose sustained challenges to banking-system asset quality. However, Metrobank's Viability Rating
(VR) is supported by its steady management track record and established franchise as the
second-largest bank in the Philippines by assets at end-2020, which has allowed the bank to deliver
steady financial results and maintain a robust funding and liquidity profile over the years. Despite
these strengths, we expect the operating environment to remain challenging over the rating horizon,
which would continue to weigh on its asset quality and profitability.

Q. Bank’s implementing rules and regulations