2020 Annual Report & Sustainability Report

Meaningful Banking in the New Normal

METROBANK I 2020 Annual Report & Sustainability Report 1 MEANINGFUL BANKING IN THE NEW NORMAL

VISION MISSION A Responsible Bank ABOUT THIS REPORT STATEMENT We adhere to the highest standards of corporate governance, exercising People first is a principle that has been etched in our hearts and minds since the To be the country’s premiere financial accountability, fairness, and transparency creation of our bank 59 years ago. It has conglomerate, empowering our individual across all our business operations. been – and continues to be - the guiding and business clients to realize their goals light which our leaders have relied on to We exercise good management to provide and reach their full potential. By creating steer the bank on a voyage of delivering our shareholders with sustainable returns and customizing financial solutions in meaningful, trustworthy and steadfast response to our stakeholders’ needs, on their investments. banking while riding the winds of change. continuously expanding our scope of reach, At a time when the world experienced a and leading in community service, we live An Institution with a Heart transition into what is now known as the up to our “You’re in Good Hands” promise new normal, our aim to deliver Meaningful We give back to the communities we that embodies who we are and what we do. Banking from Good Hands was made serve, committed to making meaningful We are Metrobank.* even more relevant. Amidst the disruption, contributions to the economic and social serving and protecting our customers, development of our nation. our communities and our Metrobankers is what characterized 2020. That’s WE COMMIT TO BE Meaningful Banking in the new normal. CORE VALUES The Trusted Financial Partner

Our business relies on the principles of • Passion for Results trust, honesty and integrity as we serve • Integrity our customers and help them attain their • Teamwork financial goals. • Commitment to Customer Service • Heart for Community The Employer of Choice

We strengthen the organization by continuously developing and enhancing the abilities of our people.

We nurture them into professional individuals with integrity and passion for service and excellence. We ensure their future by providing them with fulfilling careers.

*The Vision Mission Statement (VMS) was approved by the Board in January 2020

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CHAIRMAN’S MESSAGE

Together, we face a bright tomorrow.

Dear fellow shareholders,

he year 2020 will be remembered as 2020. Investment spending retreated sharply, the year that tested the character, declining by more than one third during the T resilience, and adaptability of people all year. These trends were reflected in the over the world because of the COVID-19 virus. contraction in Metrobank’s loan portfolio, The pandemic’s impacts were staggering, which is aligned with GDP growth. Commercial resulting in the shrinking of the global economy clients reduced inventory levels and deferred estimated at four percent in 2020. This expansion plans while for consumer loans, required systematic preventive measures customers limited their spending to essential to contain the virus, stimulus packages, and goods and deferred big ticket purchases. massive government spending to provide some relief to most economies. The Government stepped up and implemented measures through the “Bayanihan to Heal as In the Philippines, the pandemic’s effect on One Act,” and its extension, “Bayanihan to the economy was a full-year Gross Domestic Recover as One Act” to combat the impact Product (GDP) contraction of 9.5 percent, the of the pandemic. On the monetary side, the “Serving our customers, steepest annual drop recorded by the Philippine Bangko Sentral ng Pilipinas (BSP) reduced Statistics Authority since it started collecting key policy rates by a total of 200 basis points our communities and our fellow Metrobankers data in 1947. Household consumption fell and deployed regulatory relief measures to by 7.9% in 2020 with unemployment rate complement fiscal stimulus and help revitalize continues to be our purpose.” peaking at 17.6% in the second quarter of the economy.

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Faced with a challenging environment in government and other stakeholders that (CASA) grew 22% to Php1.3 trillion. Lower a sustainable basis. Finally, we will not waver 2020, we, at Metrobank, intensified our look after the needs of communities. In funding costs led to a modest jump in net in our Corporate Social Responsibility (CSR) level of commitment to our customers and addition, 6,823 Metrobankers contributed interest income. In addition, the record low commitments to the community. communities. We had to balance the need Php9.2 million to various Purple Hearts Club interest rate environment enabled the Bank to service our clients while ensuring the programs, reflective of the spirit of service to optimize its investment portfolio and To our employees and frontliners, you are safety of our employees. At the same time, rendered to others beyond the call of duty. generated a hefty Php19.2 billion in trading our stronghold and the faces of Meaningful the pandemic offered opportunities to serve and foreign exchange gains. Banking in the New Normal. Thank you for the community. “Meaningful Banking in the Our customers were on top of our minds your continued dedication and commitment. New Normal” has propelled us to transform as we prioritized opening communication Our strong revenue generating power the challenging year into a record of heartfelt channels with them. In opening our branches, complemented by improving operating To our Board of Directors and Senior service to our stakeholders. we conformed to the health and safety efficiency afforded the Bank the capacity Management, thank you for your wisdom, protocols mandated by the government to be more proactive and to quadruple our guidance, and decisive leadership in steering Caring was the mantra that rallied to ensure the safety of our customers and provisions for non-performing loans (NPLs) us to strengthen our position. Metrobankers to work as a team to support employees. With restriction on face-to-face to Php40.8 billion, which pared our net communities and frontliners to combat and encounters and visits, we saw the need to income to Php13.8 billion. Our experience To our partners, investors, and shareholders, mitigate the impact of the pandemic. Under use digital technology to stay in touch with during the Asian Financial Crisis has made a we appreciate your continued deep trust and the “Helping Hands for COVID-19,” Metrobank our customers. We launched webinars to deep impact on the manner we are managing confidence. Foundation, Inc. (MBFI) and GT Foundation, educate and inform them on how to manage our portfolio. We learned that we need to be Inc. (GTFI) provided Php321.5 million that and protect their resources during the proactive in monitoring accounts and build And finally, to our dear customers, you are directly helped 497,189 individuals or 113,200 pandemic. To make banking more accessible, up reserves aggressively early in the cycle. in good hands as we continue to provide you families. These included donating personal we launched an improved Metrobank Online We thus ended 2020 with an ample 163% with meaningful banking for all your financial protective equipment (PPEs) to both medical facility, where banking and transacting NPL cover. Our capital ratios are among needs. Your unwavering loyalty inspires us to and security frontliners; providing polymerase anywhere and anytime is made possible the highest in the industry at 20.2% capital assure you of true service beyond banking. chain reaction kits and antibody rapid test and easier. We also fully implemented the adequacy ratio (CAR) and 19.3% Common kits to private and government hospitals and provisions of the Bayanihan measures to Equity Tier 1 (CET1) ratio, well above local government units; and constructing provide relief to our borrowing customers. regulatory limits. molecular laboratories for testing COVID 19 samples. We donated water, sanitation and Our employees are frontliners in every sense Keeping a healthy NPL buffer and strong hygiene (WASH) facilities, learning materials, of the word. We strived to ensure that their capital position are vital as pandemic tablets, laptops and other equipment to health, safety and well-being were guaranteed conditions continue to persist, which could ARTHUR TY schools and students to aid them to adapt at all times as they worked onsite and provided make 2021 another challenging year. We Chairman to the new normal of blended learning. We the back-end support when they worked will continue to safeguard the group’s asset continued to distribute food and relief packs to from home. We continued to enhance their quality. We will sustain our ability to provide underprivileged communities. expertise through training as they attended to banking services, either through our branches the growing and unique demands of customers or remotely, with utmost regard to protecting Likewise, Metrobank is an active partner in in this new normal. As the pandemic is still the health of our employees. We will intensify the “Ingat Angat Tayong Lahat” campaign, ongoing, the procurement of COVID-19 our efforts and investments in digital in support of the Government’s Taskforce vaccines for our employees and their platforms and technologies. At the same time, T3 (Test, Trace, Treat) initiative. This multi- dependents is an integral part of our efforts to we are ready and have substantial capacity sector alliance aims to rebuild consumer ensure welfare of our employees this year. to actively seek opportunities to support confidence while safely restarting the We are thus pleased to report that despite the the needs of our customers as the economy economy through continued public- difficult operating environment, Metrobank begins its recovery journey. Alongside this, private sector cooperation. MBFI and managed to deliver a strong 26% rise in we will monitor economic conditions and GTFI implemented a robust, medium term pre-provisioning profits of Php61.8 billion in will continue to implement strategies that emergency response plan through strategic 2020. Indicative of our solid deposit franchise, will balance growth, improve shareholder partnerships to complement efforts of the low cost current and savings accounts returns and meet regulatory requirements on

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PRESIDENT’S REPORT

We will move and grow with our customers.

he world just became smaller when system via purchase of government securities the first COVID-19 case was detected have helped ease the financial impact of the T in January 2020. More than a year pandemic. The global scale of the crisis has and millions of lives affected, the pandemic’s however left us concerned that the damage will alarming spread brought economic activity to be felt over a period of time. a lethargic growth as countries imposed tight restrictions on movement to stop the spread of Weathering through this pandemic can only be the virus. The economic damage is evident as overcome by adaptability anchored on our core health and human toll grows, representing the values: passion for results, integrity, teamwork, most massive economic crisis the world has commitment to customer service and a heart experienced in decades. The world’s economy for community – the cornerstone of the kind shrank by an estimated four percent last year of service our people extend to our customers despite extraordinary, concerted efforts of daily. We prioritized the people that mattered governments to counter the downturn with most in our business – our customers, our co- monetary and fiscal policy initiatives. employees, and our neighbors. “Banking in the new normal The Philippines was not spared. The economic Attending to our customers demanded impact of the global pandemic was swift a level of service that extends beyond just means leveraging our banking services with the GDP declining by 9.6%. The BSP’s banking, that sincerely cares for their well- accommodative monetary policy which led being. We protected our customers by to be more inclusive and personal.” to record low interest rates and injection following government mandated protocols of around Php2.0 trillion liquidity into the in branches; enhanced our services

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that brought more convenience to their portal for employees, run by employee- Meanwhile, the 22% increase in low cost banking transactions; listened and quickly volunteers who help address professional and current and savings accounts (CASA) to responded to their concerns; and educated personal queries from fellow employees. The Php1.3 trillion propelled total deposits to reach them through information campaigns and portal provided COVID-19 related updates Php1.8 trillion in 2020, reflecting the Bank’s webinars to expand their financial literacy and information and facilitated quick general solid deposit franchise. CASA ratio improved and make better informed decisions on wellness surveys that help teams build safe to 73% from 63% a year ago. Healthy CASA their investments. In turn, more customers work habits. Those who were required to deposit generation helped ease the overall utilized the Bank’s digital platforms. Around report in our offices were supported with funding cost in 2020 and supported net 24% of our customers are now enrolled in allowances, hygiene kits, and required to interest margins, which improved by 14 basis electronic channels which include the Bank’s strictly observe appropriate safety protocols. points to 3.98%. As a result, net interest 19.3% mobile app, online platforms for corporate income rose 11.8% from the previous year. CET1 RATIO and retail clients, ATMs, and point of sale In managing the impact of the pandemic on (POS) terminals. Likewise, 85% of financial the Bank’s portfolio, we were reminded of the This was achieved amid a 13% contraction in transactions now go through such electronic lessons during the 1997 Asian Financial crisis gross loans to Php1.3 trillion as the economic channels. We adhered to the provisions of (AFC). The AFC exposed corporate over- impact of the pandemic affected business and both the Bayanihan to Heal as One Act and leveraging on foreign currency debt, which consumer confidence. Commercial clients Bayanihan to Recover as One Act to provide resulted in insolvency issues and took several trimmed working capital loans and deferred relief to our customers. years to unravel. We learned that banks should expansion plans while consumer customers measures are still substantially higher than the be more proactive at the onset – (1) to actively limited spending to essential goods and 11.0% minimum regulatory threshold for CET1 Caring for our employees required us to put engage with clients to manage credit risks; (2) deferred big ticket purchases. and 10.0% for CAR. in place communication mechanisms that boost provisions while the Bank still has the Non-interest income expanded by 20%, lifted enabled them to step up their game while earnings capacity to do so; (3) secure ample by exceptional trading and foreign exchange Our subsidiaries, which were also affected by attuned to their well-being. Our work from liquidity to withstand any funding volatility; gains of Php19.2 billion as the Bank optimized the sudden shift in the business landscape, home teams were equipped with laptops and (4) ensure capital base is strong so there is its investment portfolio under a record-low have likewise calibrated their strategies to Virtual Private Network (VPN) connectivity to enough buffer against the potential stress to interest rate environment. leverage on their key strengths as they dealt ensure uninterrupted service to customers. asset quality and meet regulatory requirements with the crisis. Chatbot was deployed in Workplace, the and, (5) maintain robust risk management and Growth in operating expenses was kept at 4% Facebook-powered internal communication corporate governance structures. to Php60.1 billion, underscored by continued Philippine Savings Bank (PSBank) stayed efforts to enhance productivity and operational resilient amidst the challenges of 2020. It Metrobank’s income before provisions efficiency. Cost-to-income ratio improved to also took a conservative stance on credit increased by 26% to Php61.8 billion in 50% from 55% previously. provisioning in anticipation of risks associated 2020. The growth in operating income was with the pandemic. Pre-provisioning operating supported by strong revenues and better Metrobank ended 2020 as the country’s income surged by 31% to Php7.5 billion. This operating efficiency. second largest bank with consolidated assets enabled PSBank to set aside additional loan of Php2.5 trillion. The Bank’s high capital loss provisions to three times over to Php6.4 In line with our strategy to prepare for the buffer has enabled the Board of Directors to billion, resulting in Php1.1 billion net income. risks associated with the pandemic, the Bank declare a special cash dividend of Php3.0 per quadrupled provisions to Php40.8 billion, share in addition to the regular dividend of PSBank ensured the safety of its employees resulting in a full year 2020 net income of Php1.0 per share. and customers by quickly instituting COVID-19 Php13.8 billion. Our proactive provisioning safety protocols. Digital platforms were raised NPL cover to 163% from 103% in 2019 Based on December 2020 balance sheet, strengthened and made reliable as demand strengthening the Bank’s capacity to withstand Metrobank’s capital adequacy ratio (CAR) for digital banking services exponentially rose. 163% more bad loans. This was complemented is estimated to move from 20.2% to 19.1% It ended 2020 with strong capital position NPL COVER by the conduct of multiple credit reviews by and Common Equity Tier 1 (CET1) ratio with CAR and CET1 ratio of 19.4% and 18.1%, account managers to manage portfolio risks. from 19.3% to 18.2% after dividends. Both respectively. The Philippine Ratings Services

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Corporation assigned PSBank with the highest enabled us to achieve nine of 17 Sustainable Metrobank has emerged from 2020 fully issuer credit rating of Aaa, with stable outlook, Development Goals. It showed that our armed with our known strengths and a testament to its very strong capacity to meet loans can contribute to reduce hunger and capabilities, though tempered with wisdom its financial commitments. inequality, support responsible consumption; that has carried your Bank through nearly six improve education, health, sanitation, decades of sustainable growth. Our hope for First Metro Investments Corporation and work; help build affordable and clean an economic rebound is an opportunity to (FMIC), Metrobank’s investment banking energy, create better infrastructure, and harness our full potential. subsidiary, kept its leadership in the domestic support more livable communities. We are capital markets, successfully completing inspired by our engaged employees whose I wish to acknowledge the depth of our 23 deals both in equity and capital markets. heart for the community is pure service, employees’ commitment and dedication to The investment bank demonstrated its seen through their active involvement in the service. Your immeasurable contribution in fundamental ability to execute and solidified many programs of the Purple Hearts Club, these challenging times is the hallmark of its leadership position with 71 percent willingly contributing their time and treasure. Meaningful Banking in the New Normal. participation in the domestic capital markets’ But many more, on their own or through issuances in 2020, with strong performance in their business units like Trust Banking, and I also would like to thank our partners, deal structuring and distribution. Metrobank’s subsidiaries FMIC, PSBank, and stakeholders, and dear customers for faithfully AXA, give to charity, adopt communities, standing by our side. As we continue to offer FMIC was awarded the Best Investment provide relief to stricken families or help our helping hand in journeying with you to Bank in the Philippines by Hong Kong-based fellow Metrobankers affected by calamities, achieve your goals; doing so together can only ORIX METRO Leasing and Finance publication FinanceAsia and recognized as including the pandemic. Lastly, our Bank is make us stronger to weather any challenge Corporation (ORIX METRO) faced the severe the Best M&A House in the Philippines by ever conscious of gender equality as women that comes our way. business challenges of 2020 head on with the regional investment magazine Alpha comprise over 50 percent of Management the management conducting a Business Southeast Asia. FMIC has 10 other citations Officers in Metrobank. FMIC was also cited Survivability Risk Test (BSRT) on all its and awards both locally and abroad in 2020. by AsiaMoney as one of the banks that have accounts nationwide in order to protect the done the most to encourage women in the company’s portfolio. A more prudent credit AXA Philippines (AXA), the Group’s insurance workplace across Asia’s financial markets. approval process was set in place. Alongside arm, continued to service its more than this, it quadrupled its provisions for credit 1.5 million clients protected under general Dealing with the pandemic in 2020 has FABIAN S. DEE losses to Php1.4billion which pared net income insurance, and various individual and group taught us new ways of doing things and has to Php219 million in 2020. Still, ORIX METRO President life insurance products through its wholly made us realize that there are things that remains one of the strongly capitalized leasing owned subsidiary, Charter Ping An. When we need to do better. We will continue to and financing companies in the country with the pandemic hit, AXA adjusted to the new work with our customers in navigating the total equity of Php8.7 billion. The Company environment and immediately took care of path towards recovery. We will continue also maintained a healthy Capital Adequacy its people who remained committed to its to invest to improve efficiency in our bricks Ratio (CAR) of 16.6 % and a CET1 ratio of customers. AXA stood strong on the health and mortar network as well as invest in IT 15.8%, well above the regulatory floor of 10% front, offering an enhanced version of its Global to increase the capacity of our institution to and 6% percent, respectively. Health Access product that included pandemic improve customer and employee experience. coverage. Free medical teleconsultations were Metrobank will continue to move, and pivot Caring for communities is what sustains provided to both existing health policyholders in the right direction to grow and be part of our business. In our second year, our and non-customers alike and utilized an ever-changing market environment that Sustainability Report focused on how technology to interact with customers to constantly addresses the evolving needs of loanable amounts of Php606.9 billion communicate and transact online. our stakeholders. through our Institutional Banking Sector

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FINANCIAL HIGHLIGHTS

PRE-PROVISIONING OPERATING PROFIT +26% LOANS AND NET INTEREST NON-INTEREST TOTAL ASSETS RECEIVABLES, NET INCOME INCOME YOY Php2.5 trillion Php1.3 trillion +12% YOY +20% YOY

TOTAL DEPOSITS NET INTEREST MARGIN Php1.8 CASA 4.0% COST-TO-INCOME RATIO NPL RATIO trillion Php1.3 trillion 50% 2.4 %

NET INCOME CAR Php13.8 20.2% EQUITY billion NPL COVER CET-1 Php324 billion 163% 19.3%

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OPERATIONAL HIGHLIGHTS

ALWAYS IN GOOD HANDS We aim to serve our customers over and beyond their expectations. +122% MOBILE APP DOWNLOADS

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To ensure the safety and sustain productivity Serving at the of the Metrobankers during the pandemic, frontline the teams in the branches were split into two groups, each reporting alternately in t takes a dependable, vigorous, and highly the branches. Those under work from home adaptable institution to gain people’s trust arrangements were equipped with laptops during times of prolonged uncertainty and VPN connectivity that enabled them Iand financial anxiety. As a testament to to meet the demands of the business and Metrobank’s solid banking franchise, the Bank the needs of customers. Those who were generated a 22 percent increase in current scheduled to work onsite were provided and savings accounts (CASA) to Php1.3 protective equipment, allowances and trillion, thus boosting overall deposits to nearly transportation especially during the ECQ. Php1.8 trillion in 2020. Virtual meetings and webinars became the norm to communicate and train the teams to The balancing act between continuing to serve be ready to manage and nurture relationship our customers and ensuring their safety as with customers. The Bank utilized Workplace, well as that of Metrobank’s branch frontliners a Facebook-powered internal communications was paramount in our efforts in 2020. Health portal for employees, where a dedicated group and safety protocols were put in place. At of employee volunteers provided updated Mobile Application was set up to facilitate Mobile ATMs the height of the Enhanced Community information about the pandemic and other fund transfers. A special account opening Quarantine (ECQ) starting mid-March 2020, work related concerns. campaign was conducted to onboard online Complementing the Bank’s online banking the Bank kept open more than half of its sellers. The ramp-up of online transactions initiatives, Metrobank also deployed mobile branches to serve the public. Branches were The lockdown prompted the sector to use was complemented with a fraud awareness ATMs to reach more clients and facilitate reconfigured to align with social distancing enhanced services and innovative solutions. campaign to help protect customers. their banking needs. guidelines. Banking hours in branches were The migration of the accounts of retail and adjusted to the schedules allowed by the Local corporate clients to Metrobank Online (MBO) Despite these challenges, aside from achieving Government Units for their residents to leave and Metrobank Business Online Solutions record CASA levels, the Bank was also able the safety of their homes during the ECQ. In (MBOS), respectively, was fast tracked. to solicit several new-to-bank (NTB) clients, Earnest addition, COVID-19 cases were monitored. Eighty-seven percent of more than 17,000 especially those in the essential industries. corporate accounts were migrated to MBOS. At the same time, the focus of the branches In 2020, the Earnest application has enabled Throughout the year, the Bank optimized its Meanwhile, retail customer penetration on efficiency and productivity contributed to clients to open digital deposit and investment network as six new branches were opened, rate rose by five percent during the year the modest growth in the Bank’s operating accounts, while accessing the Bank’s wide while seven were consolidated and six more to 24 percent. The Bank waived fees for costs in 2020. range of products and services. were relocated, leading to a total of 956 intrabank and interbank fund transfers. A branches by the end of 2020. Cash Pick-up Service through the Metrobank Earnest, designed for the beginner investor • App that allows users to invest anytime, Going the extra mile anywhere • Choose from curated Metrobank UITFs When various degree of restrictions were • Access financial basics on earnest.ph implemented across the nation, customers were encouraged to stay at home. The Bank Account opening through the Earnest app initiated efforts to go to where the customers • Open a Metrobank deposit account are and ensure that they have access to • Can be used as a settlement account our services. for investing • Send money, pay bills, and transact with the account through Metrobank Online

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personalized link – a way to minimize physical deliveries. CBS also created PayNow, a Servicing the convenient facility that lets Metrobank credit institutional cardholders send money to any bank account in an instant. Banking clients

At the onset of the pandemic, the Institutional Complementing the efforts to aid those Banking Sector (IBS) stayed nimble in serving affected by the pandemic, CBS also conducted clients as it leveraged on the Bank’s established a Rewards Points Donation drive from April to protocols to ensure Metrobankers and clients May that encouraged cardholders to help and are safe and secure and processes are in raised a total of Php2.2 billion for the COVID-19 compliance with regulations. response of partner beneficiaries.

The Bank organized and implemented To cap off the year, CBS won the Outstanding to centralize consumer loan services and systems that enabled its workforce to serve Social Media Campaign at The Digital Banker’s Delivering a provide more meaningful support to retail its customers remotely, delivering to a wider Global Retail Banking Innovation Awards delightful customer customers. client base. 2020. To reach younger client segments, CBS experience collaborated with social media influencers Optimizing technological innovation was Working teams made it convenient for the Bank’s response in adapting to the which led to a 30% growth in card sign-ups in Although 2020 was a difficult year due to the customers to transact remotely, within new normal. CBS enhanced its online card two newly launched credit cards. health crisis, the Institutional Banking and the scope allowed by regulations and in application system and added features to its Consumer Business Sectors went beyond keeping with sound banking practices. This Chatbot, Metrobank Interactive Assist (MIA) CBS looks forward to providing more products service banking and optimized the use of was complemented by the enrollment and of Metrobank Card, and set up a live Customer for its clients in 2021 as it further taps the technology in connecting and re-establishing migration of accounts to the Metrobank Online Service team to respond to cardholder synergies created after the MCC merger. stronger ties with clients. Measures were Banking System (MBOS). Launched in 2019, concerns faster through Facebook Messenger. undertaken to keep the customers well- CBS also offered cardholders the option to informed on available solutions to their financial convert essential purchases into monthly needs as they navigated the new normal of installments to help customers manage their banking. To provide relief to borrowers, the finances. The “Meaningful Conversations provisions of the Bayanihan Acts 1 and 2 were Campaign” booked over Php1.0 billion worth of fully implemented. At the same time, efforts payment assistance programs. were directed to safeguard asset quality by actively engaging with borrowers and ensuring CBS introduced the Metrobank ON Virtual prudent credit standards are in place. Mastercard, a virtual companion to a newly approved card. CBS continued to offer Last year, Metrobank Card Corporation (MCC) exclusive deals through its online and retail was completely merged with Metrobank. partner merchants. CBS also presented an The merger is expected to further solidify Online Installment Payment Plan for Metrobank Metrobank’s strong position in the credit credit cards that allowed e-commerce card market, harness synergies, primarily merchants to offer its customers flexible in leveraging on the Bank’s access to low- payment options. cost funding; accelerate cross-selling opportunities to the Bank’s client base, and For customer convenience, CBS launched improve operating efficiency. Upon the merger a Mobile Statement of Account (SOA) of MCC with the Consumer Lending Group and facility wherein SOAs are sent to clients’ other related units, the group was rebranded mobile phones through SMS and a secure into Consumer Business Sector (CBS)

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MBOS proved to be an essential tool as it position was re-assessed in certain cases as In 2020, Metrobank through its Treasury (PERA) funds in 2020: the Metro PERA Money allowed clients to transact remotely. Indeed, in the need to strengthen its collateral cover Group became the first Philippine bank to Market Fund, the Metro PERA Bond Fund, 2020, the Bank saw a 155 percent increase in as warranted was done. This review process utilize the global Continuous Linked Settlement and the Metro PERA Equity Fund. Provided MBOS clients. To nurture client relationships, helped strengthen the Bank’s position (CLS) facility as a third-party participant under Republic Act 9505, PERA is a voluntary online platforms like Zoom and Webex were moving forward. through its partnership with Switzerland- supplementary retirement account to promote used to simplify communication channels while based international bank, UBS AG. CLS is greater financial security for Filipinos here and safeguarding everyone’s safety and health. Looking to 2021, IBS will continue to proactively a strategic settlement mode in the foreign abroad. It empowers clients to take advantage manage portfolio risks. At the same time, IBS is exchange (FX) market, which allowed the of its tax-free benefits to supplement their The team focused on supporting clients that well prepared to seize opportunities to provide netting of FX transactions overseas, thereby retirement fund. run essential businesses like food, basic meaningful banking to the clients and be a eliminating settlement risks and simplifying services, healthcare, and logistics, among partner in the recovery journey of the economy. cash management risks, among others. CLS is Digital PERA is a one-stop shop digital platform others. This was aligned with the Bank’s full aligned with the FX Global Code of Conduct. where investors can browse various PERA support for the government’s initiatives. products, and at the same time access, monitor Moreover, customers that were adversely Optimizing the Despite the complexities of the changing and transact using their PERA accounts, via affected by the pandemic were supported environment, the Private Wealth Division InstaPay and PESONet through online banking. by the full benefits eligible to them under markets (PWD) managed to on-board 85 new clients. Bayanihan 1 and 2. The team capitalized on To complement virtual one-on-one meetings, Employee safety was ensured as onsite and the growing opportunities in advisory services The Financial Markets Sector’s (FMS) strong PWD introduced Market Movers, a monthly Work-from-Home (WFH) working arrangements as clients sought guidance on their current and performance in 2020 was attributed to online webinar series that had industry experts were subjected to rigid health and safety future strategies. A series of webinars were the team’s resilience and commitment to and government officials share insights on protocols. At the same time measures were conducted to educate clients to better navigate business continuity, uninterrupted service economic, sectoral, health and social issues, undertaken to make transactions secure economic uncertainties. This customer-centric delivery and customer satisfaction in an policy actions, and a special tax and legal and data integrity ensured. FMS optimized approach best captures meaningful banking in extraordinary year. Faced with uncertain advisory session, all relevant in guiding the technological innovation, using VPNs for client progress: A bank that assures its clients in good economic environment, the group’s priority customers throughout the pandemic. meetings and due diligence and portfolio reviews. and bad times. was to focus on customer flows and shore up PWD Relationship Managers also updated the Bank’s liquidity position. Not only was this For its part, the Trust Banking Group (TBG) its Service Level Agreements and processes The team was equipped to deal with achieved but the group was even able optimize ended 2020 with an all-time high Assets Under across partners, and made sure alternative uncertainties and improve their competencies. the investment portfolio under a record low Management of Php 558 billion, a 15 percent documentation was recognized. Securities In-house capacity-building activities through interest rate environment. FMS managed increase from the previous year. Clients brokering was supported by a back-up system. internal webinars and refresher courses on to generate record trading income of Php15 grew despite the uncertainties, generating financial analysis, communications, among billion. This enabled the Bank to pursue its 6,000+ new UITF accounts. The UITF online Process and service enhancements facilitated others, were conducted to enable the team to strategy of accelerating provisions to serve as was launched which enabled customers to better results in 2020 for FMS. These include the better assist clients in responding to economic buffer for anticipated asset quality risks. access, monitor, update, and even redeem Metrobank Operations Support Engine (MOSE) uncertainty queries and evaluate accounts. proceeds from their accounts.About 15% of and the Continuous Linked Settlement system More importantly, proper risk management FMS seized market opportunities and raised total UITF transactions were done online. TBG (CLS), among others. Meanwhile, Wealth measures were put in place to protect asset Php35.0 billion for the Bank’s Peso and US also published the first edition of the Annual management and Trust system upgrades are quality of stakeholders and investors. In Dollar Bonds in offerings that were grossly Metrobank Trust Banking Group Compendium, being accelerated. anticipation of COVID-19’s negative impact, oversubscribed. The hefty orderbook for the an in-house analysis of six key business the team moved quickly to re-assess the US$500 million Bond reflected the strong sectors, and investment drivers of the listed quality of its loan portfolio. Account and investor confidence in Metrobank, after its re- company constituents of the PSE Index. portfolio reviews were conducted regularly, entry in the international capital markets in 17 while accounts and industries were tagged to years. The issuance allowed Metrobank to tap As a product provider, Metrobank heeded the monitor abrupt changes. Documentations longer-term offshore funding, diversify funding Bangko Sentral ng Pilipinas (BSP) call, creating were reviewed to ensure compliance and the sources, and finance maturing short-term three Digital Personal Equity Retirement enforceability of the terms and conditions of borrowings. its loan facilities. Lastly, the team’s security

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The Board of Directors (BoD), through its Consumer Protection Standards We act on your complaints Board of Directors Executive Committee (ExCom) proactively (BOD) oversees the Bank’s Financial Customer Metrobank’s Customer Protection Standards Metrobank customers have ready access to Protection program and implementation Executive are inherent to the Bank’s corporate culture affordable, independent, fair, accountable, Committee based on the BSP’s Circular on Consumer and are followed all times, especially in dealing timely, and efficient means in resolving their (ExCom) Protection. with its customers. grievances regarding their financial transactions. Customers can lodge their complaints through President The Senior Management’s Customer • Metrobank, in adhering to to standards of Experience Committee (CXCom) ensures that transparency and full disclosure, assures Customer the Bank’s developed Consumer Protection its customers that they are provided with Experience Risk Management System (CPRMS) is Committee well-informed, reasonable, and holistic (CXCom) diligently followed and has become fully understanding of all Metrobank products integrated in the overall framework of its and services. Every customer has access Branch Banking product and service lifecycle. The CXCom to information that accurately represents Sector (BBS) is also responsible for the formulation of the nature and structure of each product or the Bank’s Customer Protection Program service, its terms and conditions, as well as based on the CPPM and in monitoring the its fundamental benefits and risks, for them performance of its projects. to make the best financial decisions. Customer Engagement The Customer Engagement Group (CEG) was • The Bank has a strong IT system in Group (CEG) created in 2020 to enhance the customer- place, with well-defined protocols, a centric culture of the Bank, with focus on secure database, and periodically re- customer experience (CX), continuous validated procedures that safeguard improvement (Kaizen), efficiency (scale and the confidentiality, security, accuracy, scope), and data-driven policies for customers and integrity of the customer’s personal to fully experience true meaningful banking. information. Customers are assured that CEG designed the Voice of the Customer their financial transactions, as well as Protecting and (VOC) program that generated valuable relevant personal information disclosed in serving you better insights in improving customer experience. every transaction, are kept confidential. The group aims to provide a framework that In 2020, Metrobank went the extra mile will align Bank processes and standards with • The Bank, through its Fraud Management in protecting the welfare of its retail and regulatory requirements. It also provides an Division, works with several tools that corporate customers. Its deep concern effective complaints management system prevent and mitigate fraud. for the health and financial mobility of its where it identifies complaints, provides customers inspired the Bank to go beyond appropriate solutions, and monitors its • Customers are always treated fairly in the the best standards of customer protection, efficacy and improves service recovery. CEG Bank. They are assured that necessary as set by the Bangko Sentral ng Pilipinas is also duty bound to report the complaints resources, procedures such as addressing (BSP) and guided by its own Consumer metrics to Senior Management, CX initiatives ethical staff behavior, internal monitoring Protection Policy Manual (CPPM). implemented, its impact on customers, and to related to acceptable selling practices, the business of the Bank. and control mechanisms associated with appropriateness of regulated products Organizational Structure Metrobankers’ priority is always to serve have been set up to safeguard their best its customers and in doing so, observe the interests. Key entities in the organization accountable for principles of sound, prudent banking practices the overall strategy and oversight of the Bank’s in all transactions, and commit to take care of desired customer experience are in place. their needs and protect their interests.

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resolution, then implement and monitor the Customer Incident actions taken to avoid its recurrence and Management Process improve customer experience. Touchpoints The different investigating units and Case Management Department are sufficiently equipped with the necessary experience, knowledge, expertise, and adequate resources for them to handle complaints efficiently and METROBANK CONTACT effectively. CENTER

2020 Customer Complaints Metro Manila: (02) 88-700-700 Domestic Toll Fre: 1-800-1888-5775 Email: [email protected] In 2020, the Bank received 3 percent less complaints compared to 2019. Its high- resolution rate was maintained as complaints were promptly investigated, assessed, and CORPORATE CUSTOMER resolved. CARE

2020 2019 Metro Manila: (02) 8898-8000 (Press 2, then 2) Total Complaints 53,514 55,378 Domestic Toll Fre: 1-800-10-857-9727 Email: [email protected] Complaints to 0.015% 0.015% Transaction Ratio

HEAD OFFICE METROBANK We serve in every touchpoint PLAZA

The challenges posed by COVID-19 motivated Sen. Gil J. Puyat Avenue, Metrobank to assist its customers in a worry- Makati City, 1200 Philippines free environment so that they could focus more on their safety and welfare. any of these accessible means: walk-in or The Customer Incident Management Process Most branches remained open from Monday to Social Media personal visit, letter, e-mail, call, through (CIMP) manages how complaints are Friday with reduced banking hours to respond web-portal, or via social media. These are handled in the Bank. The process includes to the needs and concerns of customers. received by the frontline units – Branches (local the filing and turnaround time for complaint Safety protocols were observed in the open and foreign), Contact Center, Relationship investigation, resolution, and response to branches to safeguard both customers and Managers or Account Officers, Community the customer. All complaints received are Bank frontliners, in compliance with national Managers, or through BSP. logged in the Bank’s Customer Incident and local health guidelines. Management System (CIMS) to monitor the The Bank ensures that prompt action on status of each complaint. The Bank’s business The Bank’s Contact Center remained open complaints is extended to clients through a units promptly investigate and resolve the from Monday to Sunday to attend to all mechanism for complaint handling and redress. complaints, provide timely feedback and queries, concerns, and requests of customers.

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Additional personnel for voice operations were We constantly educate Customer initiatives, the Bank continues with how to avoid them. The platform engages deployed to manage the increased volume of other avenues of customer feedback, and the community in detecting and reporting calls. It made sure that all pertinent information expands ways of collecting responses: fraud across banks and other industries, Promoting financial literacy is imbedded that will assist the customers during the thus empowering consumers. In “Scam in the Bank’s sustainability framework. In pandemic were available and within reach • Net Promoter Score (NPS) via online Proof,” users can learn about the basic bank doing so, it regularly teaches customers through its website and in social media. survey account security measures to protect their through all channels, on ways to save and • Branch Customer Satisfaction (CSAT) via confidential information. The website also invest their money. It also provides tips on In Metro Manila, mobile ATMs were deployed online survey teaches how to identify red flags of potentially how best to protect personal information and and allowed customers a safer option in • Branch Customer Satisfaction via QR code fraudulent activities. As the Bangko Sentral ng personal accounts from being accessed by conducting their transactions. at select branches to obtain real-time Pilipinas further encourages the use of digital unauthorized groups. feedback from customers. transactions vis-à-vis improved technologies that support it, such platforms and others In an uncertain business environment, like it create better safeguards for seamless We enhance our services exchanging accurate information between banking transactions. customers and the Bank is essential. We empower customers The Bank launched a better Metrobank Information shared with customers using online Metrobank spearheaded Scam Proof, a Online (MBO), offering a safer and more platforms include the following: website and online platform that consolidates convenient way of banking. This was information about different online scams and very timely as many customers shifted • Daily list of open branches and modified fraudulent activities. Mindful of increasing to digital banking when the pandemic hit. branch hours digital transactions that are vulnerable Thus, banking from home and transacting • Guidelines on the suspension of collection to illicit schemes, this financial education anywhere, any day, assured customers of Car & Home loan payments and the initiative aims to increase awareness of the Bank’s 24/7 uninterrupted service. Skip-payment for Metrobank credit cards • Fraud Awareness campaign that educated about online scams and provide tips on MBO and Metrobank’s mobile banking gave customers on how to identify and avoid customers more convenience. First, customers fake SMS, e-mails and calls and avoid can easily update their contact details via accessing links embedded in e-mails e-mail without the need to visit their Branch of • Convenience of doing transactions Account. Second, personal fund transfer fees using MBO and mobile banking anytime, to other banks (i.e. InstaPay and PESONet) anywhere through Metrobank Mobile application and • Money basics during the current crisis MBO were waived. Lastly, Cash Pick-up, another feature of Metrobank’s mobile banking application, was launched to enable clients to We listen and take action receive money remittance in real-time from any of the 10,200+ remittance partner outlets Whenever Metrobank receives a customer’s all over the country through these remittance feedback, it is an opportunity for the Bank partners: Cebuana Lhuiller, LBC, RD Pawnshop, to connect with the customer and nurture M Lhuiller, Villarica, and Palawan Pawnshop. and sustain the relationship. In promptly responding to every customer’s demand and needs, the Bank assures customers that their sentiments are heard, pain points are addressed, and overall experience with the Bank is improved. While the pandemic has scaled back the frequency of its Voice of the

26 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 27 MEANINGFUL BANKING service beyondOUR boundaries GREATEST IN THE NEW NORMAL ASSET

OUR GREATEST ASSET We take pride in serving as frontliners and ambassadors of meaningful banking.

In Good and Safe Hands during Turbulent Times

etrobank’s employees are more than its human capital responsible for its daily operations. They are the Bank’s stronghold. The Metrobanker reaches out and takes care M of customers. As such, Metrobank prioritized the safety of its employees during the pandemic. In doing so, it also assured the safety of its clients.

PASSION INTEGRITY TEAMWORK COMMITMENT HEART FOR THE FOR RESULTS TO CUSTOMER COMMUNITY SERVICE

CORE VALUES

2828 METROBANKMETROBANK II 20202020 AnnualAnnual ReportReport && SustainabilitySustainability ReportReport METROBANKMETROBANK II 20202020 AnnualAnnual ReportReport && SustainabilitySustainability ReportReport 2929 MEANINGFUL BANKING OUR GREATEST IN THE NEW NORMAL ASSET

accommodation and other relevant allowances the principles of meritocracy, differentiation, Talent Acquisition of employees who reported at the worksites. and fairness. This empowers people managers to recognize their top performers Despite the limitations brought by the Metrobank partnered with ActiveOne Health, and support those who can do better. pandemic, the Bank continued to find talents a health and wellness service provider, to who have both the purpose and skills to protect and care for employees’ well-being. deliver Meaningful Banking to customers. The Rapid testing for COVID-19 was conducted Talent and Succession Talent Acquisition team came up with a new to prevent the spread of the virus and keep Management Competency-Based Interviewing process that everyone safe. identified top candidates that matched desired The Bank developed the Leadership Potential positions. The team also pooled qualified Assessment, which tracked leadership candidates as future references when the Bank Employee Engagement and indicators, specifically: intellectual capacity, is prepared to hire these talents. Communication interpersonal skills, and intensity among potential executives. These traits and skills The Bank launched an awareness campaign on serve as the primary basis in hiring, appointing, Code of Business Conduct health and safety which was quickly deployed and promoting Metrobank leaders, who are and Ethics via mass e-mail and its internal social media expected to bring the organization to the next platform, Workplace, to provide timely and level of Banking excellence. It continues to find The Bank’s on-boarding program inculcates accurate information on how to face the the best talent through Talent Reviews that will its Code of Business Conduct and Ethics to pandemic both at work and at home. vet the most likely successor-candidates for employees from the time they become part of the organization. the organization, and this is regularly reviewed MB Connect was also introduced in support of in mandatory training programs, employee mental and emotional well-being of employees. Developing talent and the necessary skills in engagement events, leadership feedback The program keeps employees grounded the Bank means creating opportunities for systems, reward and recognition programs, amid various work-related and personal continuous learning and quickly adapting and in disciplinary proceedings. challenges. It features MB Reach Out, a peer to unsettling environments. Metrobank’s coaching program composed of employee- promotion of talent development is to pivot volunteers trained in Psychological First Aid all from the limited classroom set-up to the Change and Transformation of whom become frontline support to troubled more inclusive and technologically enhanced Metrobankers. Another feature of MB Connect platforms like webinars and real-time online The pandemic’s disruptive nature caught is Mindful Moments, a 30-minute drop-in learning. These overcame distance barriers most organizations unprepared. Many sought meditation session that helps calm employees and other limitations, sustained development to fast-track recovery to cope and adapt in the middle of a workday. programs and retained talent. Employee Safety and to a more stringently structured corporate Wellness environment. In adapting transformation measures, Metrobank steadfastly anchors At the onset of the pandemic, the Bank Performance Assessment Senior Management its core values: passion for results, integrity, instituted the Work-from-Home (WFH) policy Program Selection teamwork, commitment to customer service, and trained its employees to observe health and heart for the community. These serve as and safety protocols to continue serving The disruptive effects of the pandemic on The Bank’s senior leaders perform an important its compass in delivering Meaningful Banking the community. Health and safety were the work environment compelled the Bank task of endorsing candidates to the Manpower through new ways of working and reassuring the topmost concerns and uninterrupted to revisit its performance management Committee and Nominations Committee prior its customers and employees that they are in financial services was the goal. Hence, framework and its processes. To better to their appointment by the Board of Directors. good hands. the Bank provided for the transportation, monitor productivity and optimize employee Thus, selecting senior level executives to fill performance, the Bank created an enhanced critical positions in the organization entails a performance management process, based on rigorous selection process.

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EMPLOYEE DEMOGRAPHICS ORGANIZATIONAL STRUCTURE 102-5

11% By Age

20-29 30-39 40-49 50 Total 34% 18% 4,684 5,029 2,531 1,474 13,718 BOARD OF SO 0 40 224 310 574 DIRECTORS JO 636 2,767 1,827 897 6,127

RF 4,048 2,222 480 267 7,017

OFFICE OF THE Trust 37% PRESIDENT Banking Group 20-29 40-49

30-39 50

Risk By Gender Management Group Male Female Total 35% 4,816 8,902 13,718 SO 269 305 574 JO 2,319 3,808 6,127 Internal Institutional Branch Consumer Financial Enterprise Financial Markets Audit Group RF 2,228 4,789 7,017 Banking Banking Business Services and Control 65% Sector Sector Sector Sector Sector Sector EVP Mylene A. SVP Anthony Paul C. SVP Ramon Jaime SEVP Fernand SEVP Vicente SEVP Joshua E. Caparas, 56 Yap, 44 L.V. Del Rosario, 44 Antonio R. Cuna, Jr., 58 Naing, 60 A. Tansingco, 54

Compliance MALE Division FEMALE

Special Products, 8% Accounts Credit Channels Anti-Money Management & Overseas 6% Banking Laundering Division By Geographic Distribution NCR Luzon Visayas Mindanao Total 14% 9,853 1,873 842 1,150 13,718 SO 509 29 13 23 574 JO 4,626 757 316 428 6,127 Functional and administrative RF 4,718 1,087 513 699 7,017 72% Administrative only, reports to the respective Board committees

Note: The President and all Sector Heads are Filipinos.

NCR VISAYAS

LUZON MINDANAO

32 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 33 MEANINGFUL BANKING GOOD CORPORATE POLICIES IN THE NEW NORMAL IN PLACE

CORPORATE GOVERNANCE

GOOD CORPORATE POLICIES IN PLACE We always do what is right and always do it well.

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control system, financial performance in promoting long-term value creation. The in any transaction with the institution or with Corporate and environmental, social and governance Nominations Committee is responsible for any of its related companies or with any of Governance: framework. The detailed responsibilities of screening and recommending candidates its substantial shareholders, whether by the Board are disclosed in the Corporate to the full Board, based on its screening themselves or with other persons or through a A shared Governance Manual posted on the policies and parameters, including among firm of which they are partners or a company responsibility company’s website through the Corporate others, alignment with the strategic directions of which they are directors or substantial Governance page. of the Bank. The Nominations Committee shareholders, other than transactions which Good corporate governance is all about doing assesses the qualifications of the nominees as are transacted at arm’s-length and which will what is right and doing it well. It protects and The Board is composed of a diverse group defined in the Bank’s By-Laws and Corporate not materially interfere with or influence the balances all stakeholder interests, sustains of proficient individuals who combine insight Governance Manual with due consideration to exercise of their judgment. The independent business relationships, and leads to better and good judgment in implementing good the relevant regulations of Bangko Sentral ng directors, as a rule, may serve for a maximum operational performance. The current health governance. Diversity comes in various forms Pilipinas (BSP) and Securities and Exchange cumulative term of nine years. After serving crisis poses a novel risk that greatly disrupted and is inclusive of different elements such as Commission (SEC). The Board through its the maximum term, the independent director businesses in a massive scale. Only through gender, expertise, policy-making experience, Nominations Committee strives to ensure the shall be perpetually barred from re-election, good corporate governance as its guidepost ethnicity, and independence. The members optimal mix of skills and talent and balanced but may continue to qualify for nomination could Metrobank continue to pursue its of the Board possess integrity, probity, membership of the Board to achieve its and election as a regular director. Reckoned meaningful banking mission. physical & mental fitness, competence, strategic objectives. from 2012 election, none of the independent education, financial literacy, training, diligence, directors has reached the maximum Metrobank remains steadfast in knowledge and experience relevant to the When identifying or screening potential cumulative term of more than nine years. recognizing the highest standards of banking industry. candidates, the Committee may use whatever corporate governance, upholding integrity, resources it deems appropriate, including In 2020, the Board approved the retirement accountability, fairness, and transparency To adequately fulfill its responsibilities, the but not limited to, referrals from existing of Mr. Rex C. Drilon II as a director. As his in all its governance policies. The Bank’s Board has separate and independent access directors and officers, recommendations, replacement, the Board welcomed Mr. Philip commitment is through its corporate to the Corporate Secretary who manages the and suggestions from stockholders. To the G. Soliven as Independent Director effective governance framework embodied in the flow of information to the Board prior to the extent possible, it also makes use of external May 28, 2020. With extensive experience Corporate Governance Manual, which meetings. databases or external search firms. Only in banking and finance, he brings valuable establishes the roles and responsibilities of nominees whose names appear in the Final contributions, capabilities, and exceptional its employees, and shapes the practices and List of Candidates shall be eligible for election leadership in the Board. procedures of all its transactions and dealings. Board Composition as director.

The Bank has always maintained the Board’s Directors are committed to actively engage The Chairman of the Board Board of Directors composition to twelve directors. Ten are in their role in the Board, with sufficient time and the President non-executive directors (NEDs), of which to carry out the duties of the Board and their Board committee membership. As a rule, An active and competent Board of Directors, five are independent including one female The Chairman of the Board and the President the non-executive directors of the Board as the steward of the institution it serves, is independent director (ID), a deliberate stance though independent of each other, work may concurrently serve as directors only in responsible for the governance of the Bank. to promote objectivity and strong element of together for the good of the Bank. This a maximum of five publicly listed companies, The Board sets the corporate governance independence in the Board. The number of separation balances power, responsibility making sure however that the shareholders’ tone by collectively directing the company’s independent directors constitutes 42 percent and accountability and preserves the legal right to vote and be voted as directors affairs, whilst meeting the interest of of the Board, bringing focus, clear perspective, independence and decision-making remains inviolable. None of the Bank’s shareholders and other stakeholders. It leads and the ability to lead objective board of the Board. Each has clearly defined directors serves in more than five publicly the process of developing and reviewing the discussions and better decision-making. responsibilities in the Bank’s By-Laws and listed companies. Bank’s strategies annually. It oversees the Corporate Governance Manual. development, review, and approval of the The members of the Board are elected The independent directors are autonomous Bank’s mission, vision, a sound corporate annually. In accordance with Bank’s By-Laws, The Chairman of the Board provides of management and major shareholders. governance framework, strategic and any stockholder may submit nominations for leadership, makes sure the Board functions They have not, do not and will never engage business plans, risk management, internal directorial positions to represent his interest well, initiates and maintains a relationship

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2020 Board attendance

Number of Shares Corporate % to Total Anti-Money Risk Governance Outstanding Board Executive Trust Audit Related Party Overseas Laundering Oversight and Nominations IT Steering Board Name Shares Meetings Committee Committee Committee Transactions Banking Committee Committee Compensation Committee Committee (As Committee Committee Committee Direct Indirect Disclosed) of trust among its members. In addition, the pertinent materials for discussion to address Group (CC) Arthur Ty 15,601,513 30,000 0.35% 14/14 5/5 3/3 (A) 6/7 Chairman encourages, and promotes critical administrative, technical, and logistical issues of Chairman (ED) 74/77 Vice Chairman Francisco C. (VC) 1,442,283 0.03% 14/14 (A) 11/12 (CC) 5/5 discussions and assures that dissenting the current situation. (NED) Sebastian 74/77 President/ Fabian S. Dee 734 30,618 0.00% 14/14 76/77 11 / 11 7/7 views can be expressed and discussed as Director (ED) part of a sound decision-making process. In 2020, the Board held a total of fourteen Director (NED) Alfred V. Ty 17,087,722 30,000 0.38% 14/14 5/5

The President on the other hand, exercises meetings with the incumbent directors Director (NED) Edmund A. Go 7,482 0.00% 14/14 12/12 (VC) 11 /11 6/7 direct and active management of the business attending all the meetings. The Board’s Vicente R. Director (ED) 129 32,770 0.00% 14/14 76/77 (A) 10/12 (CC) 7/7 and operations of the Bank, based on the perfect attendance reflects its members’ Cuna, Jr. Independent Jesli A. Lapus 28,419 0.00% 14/14 (VC) 12/12 (CC) 11 / 11 3/3 (CC) 9/9 orders, resolutions, and instructions of the key interest in being actively involved. It Board, and according to his own discretion further demonstrates the Board’s willingness Independent Rex C. Drilon II (1) 1,615 0.00% 5/5 2/2 3 /3 5/5 Francisco F. Del Independent 146 0.00% 14/14 (CC) 12/12 (VC) 13/14 3/3 4/5 whenever the same is not expressly limited by to provide an optimal level of contribution Rosario, Jr. such orders, resolutions, and instructions. He especially given the current situation. Independent Edgar O. Chua 113 0.00% 14/14 5/5 (CC) 14/14 13/13 9/9 communicates and implements the Bank’s . Director (NED) Solomon S. Cua 113 47,560 0.00% 14/14 13/14 4/5 vision, mission, values, and long-term strategy The Bank’s non-executive directors also met Angelica H. Independent 113 0.00% 14/14 (CC) 5/5 13/14 (CC) 3/3 13/13 4/4 Lavares and carries out any organizational change separately and conducted its virtual meeting Philip G. Soliven Independent 100 0.00% 9/9 7/7 7 / 7 (CC) 8/8 5/5 related to these matters. He manages and on November 18, 2020 together with the (2) directs the officers and the employees of the external auditors, Risk Officer, Compliance (NED) Non-Executive Director (VC) Committee Vice Chairman (1) Mr. Drilon retired in May 2020 Bank and sees to it that they perform their Officer and Chief Audit Executive, without the (ED) Executive Director (A) Adviser (2) New member as of May 2020 respective duties well. presence of any of the executive directors. (CC) Committee Chairman The meeting attended by all non-executive directors was led by Vice-Chairman Francisco Seven of the committees namely Anti-Money C. Sebastian. The agenda included a Board-level Committees Board Meetings Laundering Committee, Audit Committee, discussion on the challenges faced by the The Board assigns specific tasks to Corporate Governance and Compensation Board meetings are scheduled regularly control function units brought about by the committees, which perform a diverse range Committee, Nominations Committee, Related to keep directors updated on the Bank’s pandemic, corporate governance matters and of responsibilities. It delegates the Bank’s Party Transaction Committee, Risk Oversight performance, and to ensure that they actively on-going initiatives. specific concerns to different committees that Committee and Trust Committee are chaired attend to important approvals and decisions. prepare and report on issues to the Board for by independent directors. Their respective Regular Board meetings are held every second The Annual Stockholders’ Meeting was also the latter to decide and approve. Metrobank charters setting out their mandates, scopes, Wednesday of each month. Special meetings held using a digital platform without requiring has ten board-level committees that assisted and working procedures are available on the may be called at any time by the Chairman, or, in the physical presence of any of the Board the Board to carry out its responsibilities. Bank’s website. his absence, by the Vice Chairman, or pursuant members and shareholders via WebEx Events to the written request of any four directors. on May 28, 2020. All Board members were present in the meeting. The organizational In consideration of the COVID-19 pandemic, meeting, where board-level committees were The Anti-Money Laundering Committee helps the Board in fulfilling its oversight responsibility SEC issued guidelines that allowed participation also reconstituted, was held immediately after over the Bank’s AML Compliance Management to make sure that the Bank complies with the in corporate meetings through remote the Annual Stockholder’s Meeting. provisions of the AMLA, as amended, its Revised Implementing Rules and Regulations, and other communication such as videoconferencing, related regulations. The Committee is composed of three non-executive directors, two of whom teleconferencing, or other alternative modes. The Office of the Corporate Secretary, which are independent directors. The Committee meets every other month and as necessary. To support the measures in controlling the plays a significant role in supporting the Board in discharging its responsibilities, prepares the spread of COVID-19 outbreak, at the start of the Members Committee Membership Attendance community quarantine, the Bank transitioned agenda and sends out notices and materials Board and committee meetings from in-person at least five business days before the meeting Angelica H. Lavares, Independent Director Chairman 5/5 to virtual meetings using videoconferencing dates. It also prepares and distributes the Arthur V. Ty, Chairman Regular Member 5/5 tools. The Bank also created an alternative minutes of the previous meeting and keeps mode, safely accessible through the internet full minutes of all Board and stockholder Edgar O. Chua, Independent Director Regular Member 5/5 meetings. or mobile technology, in providing the

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The Audit Committee asists the Board in fulfilling its statutory and fiduciary responsibilities, The Executive Committee’s duty is to review and approve credit proposals and policies within its enhancing shareholder value, and protecting shareholders’ interest through effective oversight authority and limitations and provide recommendations or conditions on lending. The Committee of internal and external audit functions, transparency and proper reporting, compliance with may also act on other matters as delegated by the stockholders and the Board of Directors within laws, rules and regulations, the code of conduct, and adequate and effective internal controls. its competence and in accordance with the By-Laws of the Bank. Among the Committee’s main responsibilities is the selection, appointment, or re-appointment and dismissal of the internal auditor as well as the independent external auditor based on fair Members Committee Membership Attendance and transparent criteria. It is composed entirely of non-executive directors, three of whom are independent directors including the chairperson. The Committee meets monthly and as needed. Arthur V. Ty, Chairman Chairman 74/77

Francisco C. Sebastian, Vice Chairman Vice Chairman 74/77 Members Committee Membership Attendance Fabian S. Dee, President Regular Member 76/77 Edgar O. Chua, Independent Director Chairman 14/14 Vicente R. Cuna Jr., Executive Director Regular Member 76/77 Solomon S. Cua, Non-Executive Director Regular Member 13/14 Mary Mylene A. Caparas, Head, Institutional Banking Sector Regular Member 77/77 Francisco F. Del Rosario, Independent Director Regular Member 13/14 Corazon Ma. Therese B. Nepomuceno, Head, Credit Group Regular Member 76/77 Angelica H. Lavares, Independent Director Regular Member 13/14 Alternate Member in the absence Noel Peter Z. Yuseco, Deputy Head, Credit Group of Credit Group Head 77/77 Leo R. Fragante, Head, Internal Audit Group Chief Audit Executive 14/14

The Information Technology Steering Committee provides governance and oversight in The Corporate Governance and Compensation Committee supports the Board in fulfilling managing the Bank’s information technology (IT) resources. Its main role is to ensure that IT its corporate governance responsibilities and in providing oversight on the implementation of strategies are consistent with the overall business objectives. It is in-charge of the oversight of the the Bank’s Compliance System. Among the Committee’s responsibilities is to establish a formal IT Risk Management Program of the Bank and the development of policies, controls, and specific and transparent procedure in determining the remuneration of directors and officers that is accountabilities consistent with the Bank’s IT Risk Management Framework. consistent with the Bank’s culture, strategy, business environment and industry practice. The Committee is composed of four non-executive directors with an independent director as the As delegated by the Board, it shall also approve IT-related requests and other IT-related services/ Committee chairperson. arrangements, including outsourcing/insourcing activities. It is expected to also render periodic reports to the Board regarding the overall IT performance, status of major projects and other Members Committee Membership Attendance significant issues related to IT risks.

Angelica H. Lavares, Independent Director Chairman 3/3 Members Committee Membership Attendance Arthur V. Ty, Chairman Regular Member 3/3 Vicente R. Cuna Jr., Executive Director Chairman 7/7 Francisco F. Del Rosario, Independent Director Regular Member 3/3 Edmund A. Go, Non-Executive Director Regular Member 6/7 Jesli A. Lapus, Independent Director Regular Member 3/3 Fabian S. Dee, President Regular Member 7/7 Arnulfo B. Pascioles, Jr., Head, Compliance Division Corporate Governance Officer 3/3 Joshua E. Naing, Head, Financial and Control Sector Regular Member 6/7 Bernardino V. Ramos, Head, Information Technology Group Regular Member 7/7

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The Nominations Committee reviews and evaluates the qualifications of all persons nominated The Risk Oversight Committee, as an extension of the Board, is primarily responsible for to the Board. It also reviews the qualifications of those nominated to other positions that require the development and oversight of the risk management framework of the Bank, its affiliates, Board approval. The Committee is composed entirely of independent directors. The Committee subsidiaries (collectively, the Group), and its Trust Banking arm. The Committee is entirely meets as needed. composed of non-executive directors, of which three are independent directors, including the chairperson. Its Chairman is not the Chairman of the Board or of any other committee. The members possess a range of risk management expertise and adequate knowledge of the Group’s Members Committee Membership Attendance risk exposures. The Committee holds regular monthly meetings. Jesli A. Lapus, Independent Director Chairman 9/9

Edgar O. Chua, Independent Director Regular Member 9/9 Members Committee Membership Attendance

Philip G. Soliven*, Independent Director Regular Member 5/5 Francisco F. Del Rosario Jr., Independent Director Chairman 12/12

*Replaced Angelica H. Lavares; attended 4/4 meeting Jesli A. Lapus, Independent Director Vice-Chairman 12/12

Edmund A. Go, Non-Executive Director Regular Member 12/12

The Overseas Banking Committee assists the Board in its oversight functions over the Philip G. Soliven*, Independent Director Regular Member 7/7 operations and financial performance of the overseas branches and subsidiaries. It also oversees *Joined in June 2020 Metrobank expatriates assigned in countries without foreign office but with remittance tie-up arrangements. The Committee likewise monitors compliance with the rules and regulations of their respective host countries and their adherence to the Parent Bank’s business and corporate The Trust Committee is responsible for the oversight of all Trust activities. Its mandate is governance policies. within the authority provided by the pertinent rules and regulations in the exercise of fiduciary powers under the BSP’s Manual of Regulations for Banks and BSP Circular 766 - Guidelines in Members Committee Membership Attendance Strengthening Corporate Governance and Risk Management Practices on Trust, Other Fiduciary Business, and Investment Management Activities. The Committee is composed of four directors, Francisco A. Sebastian, Vice Chairman Chairman 5/5 including the President, and the Bank’s Trust Officer. Francisco F. Del Rosario Jr., Independent Director Regular Member 4/5

Alfred V. Ty, Non-Executive Director Regular Member 5/5 Members Committee Membership Attendance

Solomon S. Cua, Non-Executive Director Regular Member 4/5 Jesli A. Lapus, Independent Director Chairman 11/11

Edmund A. Go, Non-Executive Director Vice-Chairman 11/11

The Related Party Transactions Committee helps the Board ensure that transactions with Philip G. Soliven*, Independent Director Regular Member 7/7 related parties are reviewed to assess risk and that appropriate restrictions are in place. This is to Fabian S. Dee, President Regular Member 11/11 assure that these are conducted within arm’s-length and that the company’s resources are not Leandro Antonio G. Santillan, Head, Trust Banking misappropriated. The Committee consists of three independent directors, meets monthly, and is Group Regular Member 11/11 supported by the Compliance Officer. *Joined in June 2020

Members Committee Membership Attendance

Philip G. Soliven*, Independent Director Chairman 8/8

Edgar O. Chua, Independent Director Regular Member 13/13

Angelica H. Lavares, Independent Director Regular Member 13/13

*Replaced Rex C. Drilon who retired in May 2020; attended 5/5 meeting

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(Introduction to Environmental and Social Risk In July 2020, the summary results of the The Compliance Division is responsible for Company Policies Management System Webinar), Institute of self-assessments and evaluation covering the regulatory issuances, the interpretation of rules Corporate Directors (Pilipinas: Aspire, Rise, performance of the Board of Directors, individual and regulations, and provides oversight and Orientation Program for New Sustain Series “The Nexus of Climate Change directors, Chairman, President, and to Board- guidance for a stronger compliance culture. Directors and Sustainable Development”, “Integrating level committees of the Bank were presented It works closely with business and support Climate Risks in Corporate Strategy” and to the Corporate Governance Compensation units to identify, assess, monitor, and manage In accordance with applicable SEC rules and “Cultivating Business Impact Through Committee and endorsed to the Board. The possible regulatory compliance risks which may as expressly stated in the Bank’s Corporate Sustainability Reporting”) and Association assessment showed that the Bank’s key impact the Bank’s operations and franchise Governance Manual (CGM), orientation for of Bank Compliance Officers (Risk based persons possess the right mix of backgrounds value. It is also expected to promote effective first time directors shall be for at least eight Approach: Implementing an Enterprise-wide and competencies to fulfill their duties. implementation of the compliance system and (8) hours. Each first-time director is provided ML/TF Risk Assessment Process), address breaches that may arise. It ensures that with an orientation kit, which contains a among others. In line with the SEC rules and global best possible compliance issues and key compliance copy of the Bank’s Articles of Incorporation, practices, the self-assessment exercise risks are proactively identified, measured, and By-Laws, Code of Conduct, Bank’s CGM and of the Bank is supported by an external assessed and that sound advice and support applicable Board Committee Charters. Each is Performance Evaluation and facilitator every three (3) years. The Corporate in managing regulatory and compliance risks also provided with the general responsibilities Self-Assessment Governance and Compensation Committee are given to Management. The division also and specific duties of the Board and of an and the President approved the engagement regularly conducts compliance awareness individual director. Each Director is required of the Bank of a third-party facilitator that trainings for all employees and issues advisories The best measure of the Board effectiveness to certify under oath that he or she has shall conduct a Board effectiveness review. whenever needed. is through an assessment process. Metrobank received copies and fully understands and For 2020, the Bank commissioned Reyes conducts its annual performance assessment accepts the general responsibilities and Tacandong & Co. to facilitate the Board The Chief Compliance Officer (CCO) heads of the Board, Chairman of the Board, specific duties. In addition, each director effectiveness evaluation in compliance with the division and reports to the Corporate President, Board Committees, and each of certifies that he or she has all the prescribed the SEC Code of Corporate Governance, and Governance and Compensation Committee. the individual directors using Board-approved qualifications and none of the disqualification to further align its governance framework with The CCO delivers effective proactive seamless rating sheets. as a director. the principles of the said Code and global best communication within the Bank to address practices. This will provide an independent compliance matters, and ensures that The Board conducts its annual evaluation review of the effectiveness of the Board and these are reported to the assigned levels in process through the Corporate Governance the efficiency of the execution of the roles and Management and to the Board of Directors Continuing Education and Compensation Committee. It has adopted responsibilities of the Board under existing through the Corporate Governance and an internal self-rating system and procedures governance arrangements, considering Compensation Committee. The COVID-19 global pandemic crisis is an to determine and measure compliance vis- the review, communication, and reportorial operational challenge especially in keeping à-vis good corporate governance principles requirements and procedures within the Board The Compliance Division continues to improve the Board well-informed of developments in and practices as prescribed in the Code of and between the Board and Management. compliance within the Bank and adopts the evolving practice of corporate governance Corporate Governance: (i) Each Director practices in corporate governance. It similarly and in staying focused on the rapidly changing self-rates and collectively rates the Board, the maintains a dynamic interaction with regulators external situation. Given these demands, the Chairman of the Board, and the President; (ii) to create the balance between practicing the Bank still recognizes the value of continuing Corporate Governance, Audit, Risk Oversight, Compliance System right compliance culture and being open to education for its directors. and other Board committees conduct self- a risk-averse environment that will support rating. The performance rating sheet is The Bank’s Compliance Division implements business growth. In the middle of the health crisis in 2020, normally circulated on paper or online using an enterprise-wide compliance program the Bank ensured constant education of its questionnaires that are tailor-made to the which is an integral part of the Bank’s culture directors and key officers to keep them abreast Bank’s needs and objectives. This evaluation and risk governance framework. It provides on corporate governance standards to support process allows the Board to consider the reasonable assurance that the Bank and its Retirement & Succession their leadership roles by taking advantage of accomplishments of individuals and the group directors, officers and employees comply with The Board is expected to steer the Bank available public seminars via online platforms. of individuals within the Board and serves as all banking and corporate laws, regulations, towards a long-term successful path. Hence, As such, directors and key officers attended an avenue to revisit existing process or areas rules, and standards. its optimal composition is critical among the following webinars provided by the BSP in need of improvement within the Board.

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investors. A succession plan in the Bank is of duties and responsibilities befitting the Fair Business Transactions & party transaction for which he, she, or any devised to create a continuous dynamic, position. It imposes guidelines which meet Managing Conflicts of Interest member of his or her close family or related relevant leadership in the organization. the requirements of the organization and interest is involved, including transactions regulators that remind directors not to use of subordinates, except to provide material The Bank adopted the Anti-Bribery and Continuity through succession or filling up their position to make a profit, or acquire information on the related party transaction. Corruption Policy, which requires the directors vacancies in the Board is addressed in the a benefit or prioritize self-interests, and A material related party transactions that and employees to conduct business in Bank’s By-Laws. Any vacancies in the Board avoid situations that may compromise their reaches ten percent or higher of the Bank’s accordance with the highest standards of may be filled by the vote of at least most of impartiality. It reiterates the need to maintain total consolidated assets are required to ethics, honesty, accountability, and good the remaining directors, if still constituting a professional integrity, enhancement of skills be evaluated by an appointed external governance. The Bank does not tolerate any quorum. Vacancies that result from removal and knowledge and understanding of bank- independent party to ensure the fairness of the form of bribery or corruption. Directors, by stockholders, expiration of term, or related activities. terms. All acts of the Board, including related officers, and employees are prohibited from increase in the number of directors shall be party transactions, are confirmed by the taking advantage of their positions in the Bank filled by the stockholders in a regular or special The Code is properly disseminated to directors. majority vote of the Bank’s stockholders during to derive personal gain or profit directly or meeting called for the purpose. The Code can be accessed by both internal the Annual Stockholders’ Meeting. indirectly. and external stakeholders as it is posted in As a rule, no Director may be re-elected the Bank’s intranet and company’s website The members of the Board conduct fair following the calendar year in which that through the Corporate Governance page. business transactions with the Bank and ensure Policy on Insider Trading Director turned 75 years of age. However, that personal interest does not result in biased upon the recommendation of the Nominations Board decisions. All directors are expected As a publicly listed company, Metrobank is Committee, the Board may waive this Code of Conduct for to always act ethically, notify promptly of any regulated by measures and policies under requirement for any Director if it believes Employees material facts or potential conflict of interest, the SEC. It dutifully complies with its Insider this is in the best interest of the Company. and take appropriate corrective action. Trading Policy to uphold applicable laws and Retirement from the service of the Bank is The Code of Conduct for Employees Employees are expected to effectively manage ensure the protection of its shareholders compulsory for employees reaching their 55th emphasizes the performance of duties their personal affairs and avoid any situation or from individuals who may take advantage birthday or completing a period of continuous and responsibilities, avoidance of conflict business endeavors arising from associations, of information not readily available in the service of thirty years, whichever comes first. of interest between the Bank’s business interest or relationships that may lead to market. The policy calls for the disclosure of and personal activities, preservation of conflict or potential conflict between their material, non-public information about any of confidential information, and the prohibition of personal interest and of the Bank. the companies within the Metrobank Group Code of Conduct and Ethics accepting any form of gift or gratuity from any or any partner shall be on a need-to-know for Bank Directors person which may influence the employees’ It is also part of the Bank’s corporate basis, based on a legitimate business agenda. judgement or action in performing their governance framework that all related parties Running a company well based on a sterling responsibilities. are properly identified, and related party The policy prohibits trading during blackout good corporate governance record is one transactions are vetted and approved either periods by specific individuals which include of many high expectations demanded by The Human Resources Management Group by Related Party Transactions Management all directors and specific employees within the stakeholders. Hence, the Bank continues to (HRMG) has disseminated the Bank’s Code Committee (RPTMC), a management-level Metrobank Group, and their immediate family conduct its business with the highest ethical of Conduct to all employees including the committee composed of senior officers or members residing in the same household, and standards of fairness, accountability, and new hires. HRMG also regularly circulates the Related Party Transactions Committee corporations, other entities, and funds subject transparency, considering the interest of all advisories to remind the values that the (RPTC), a Board-level committee composed to their influence or control. It mandates the stakeholders. These are the guiding principles Bank wishes to foster in its employees. Both of independent directors, depending on the reporting insiders to disclose their respective that the Bank adopted in its Code of Conduct internal and external stakeholders can access materiality threshold set by the Bank. Directors beneficial ownership of listed shares of stock and Ethics for Directors. the Bank’s Code of Conduct for Employees and officers with personal interest in the in their various companies, if any, and report as it is posted on the Bank’s intranet and the transaction must abstain from the discussion, any changes on the next trading day following The Code of Conduct and Ethics for company’s website through the Corporate approval, and management of the transaction. the date of the change, as per SEC and the Directors articulates the standard of Governance page. No director or officer participates in the RPTC PSE requirements. conduct for ensuring the proper discharge or RPTMC or Board discussion of a related

46 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 47 MEANINGFUL BANKING GOOD CORPORATE POLICIES IN THE NEW NORMAL IN PLACE

Whistleblowing Policy that will evaluate the Bank’s earnings, cash The Bank’s compensation package is These are: a) Disclosure and Transparency; flow, financial and economic environment, reviewed regularly and benchmarked against b) Protection of client information; c) Fair The Whistleblowing policy is a sign of regulatory requirements for capital and other competition by taking part in annual industry treatment; d) Effective Recourse and e) strong corporate governance and company factors. The Board of Directors may, at any compensation and benefit surveys to ensure Financial Education and Awareness. The culture that takes such claims seriously. time, modify the Bank’s dividend payout ratio its competitiveness vis-à-vis the industry and Bank instituted a Customer Protection In strengthening the Bank’s integrity, all depending on the results of operations and other market considerations. Policy Manual which ensures that customer employees and stakeholders are encouraged to future projects and plans of the Bank. protection is essential in daily operations and participate in an atmosphere of openness and provides the foundation in safeguarding the trust and seize opportunities to raise concerns Cash dividends are subject to an approval of Pay for Performance Bank’s adherence to customer protection or immediately report whenever there are at least majority of the Board of Directors. On standards of conduct. The Board, through acts of fraud, malpractice, conflict of interest, the other hand, stock dividend requires prior The Bank pursues a performance-driven the Executive Committee, provides effective or violation of internal or regulatory policies, clearance from the BSP, SEC and PSE. work culture by providing meaningful rewards oversight of the Bank’s Financial Customer procedures, and control, to the Chief Audit for exceptional work. Annual performance Protection while the Senior Management, Executive. The policy requires that the Bank scorecards are structured to support through the Customer Experience Committee, secures the identity of the reporting entity and Compensation Policy business strategies and provide competitive ensures that the Bank develops a Customer protects the person from any undue retaliation. rewards. Thus, the Bank grants annual Protection Risk Management System merit increases, and performance bonuses The Bank’s compensation package is aligned (non-guaranteed) based on the Bank’s The Bank continuously adopts regulatory Complaints or concerns may be filed with its operating and risk culture, long- overall performance, group and individual requirements, particularly in standardizing through the Bank’s website or sent via email term strategic and financial interests, and performance, and market conditions. processes that handle complaints across ([email protected]) or text consistent with labor laws and regulations all segments, redefining the turnaround hotline (+639427471359). that promote excellent performance. It is time in resolving incidents to meet clients’ competitive with industry standards, with a expectations. In compliance with BSP Circular firm intention of attracting and retaining the Fair Compensation No. 949, the Bank also has a Social Media Risk Dividend Policy best people. Management Policy that provides guidance to The Bank ensures that its compensation covered individuals in the business and legal The Bank’s dividend policy, which is an integral package for non-officers or rank and risks associated with the use of social media. component of its capital management policy, file employees follows labor laws and Directors’ Compensation These rules require the respect of co-workers’ intends to balance shareholder returns and requirements. Rank and file employees receive Package and customers’ privacy, protect confidentiality maintain a strong capital base. salaries linked to both their performance and and security, safeguard and proper use of the the Bank’s contractual obligation under a The Board of Directors receive a fixed Bank’s information and assets. Dividends are declared and paid out of collective bargaining agreement, which include remuneration package based on market unrestricted retained earnings of the Bank loyalty bonuses for long-term employees. practice, experience, professional background, at such intervals as the Board of Directors level of responsibilities and attendance in may determine and based on the laws and Stockholders’ Rights and Board and committee meetings. the regulations under the BSP and SEC. Customer’s Welfare Protection of Minority Historically, the Bank declares annual cash Stockholders’ Interests dividends equal to Php1.00 per common In Metrobank, customer protection is part of share, equivalent to 5 percent of par value. Executive and Employee Compensation the Bank’s culture. It is not a responsibility The Board respects the rights of the In 2021, the Board declared an annual cash of only one person or a unit but rather a stockholders as provided for in the dividend of 20 percent equivalent of par value collective and shared responsibility of everyone Corporation Code. It honors the rights of The Bank pays salaries commensurate to the comprised of Php1.00 per common share and that serves in the Bank, from the Board, to the stockholders by removing barriers that individual’s qualifications & experience, nature a special dividend of Php3.00 per common Management, and to all employees. prevent the exercise of those rights and gives of the job, position, and level of responsibility share. Future dividend payments will depend adequate solutions for them to seek remedies with reference to an approved salary scale. on a multi-year capital planning process The five pillars of consumer protection when those rights are compromised. standards govern the conduct of the Bank in dealing with customers and creditors.

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The Board provides accurate and timely Supplier & Contract Selection supplies such as alcohol, hand soap, among business and work productivity. In particular, information to stockholders to enable them others. Social distancing strategies, including the Bank always ensures a drug-and alcohol- to form sound judgment on all matters In mitigating the risk of dealing with avoiding close physical contact and large free work environment. The Bank also conducts brought to their attention for consideration or unqualified suppliers/contractors, the Bank gatherings of people are enforced. lectures on bank security to equip personnel. approval. All material information about the upholds the policies and guidelines in the The Bank aims to empower Metrobankers Bank is disclosed in a timely manner to the accreditation / re-accreditation and selection Metrobank was quick to adapt to the needed with the right skills, knowledge, work SEC and PSE. process of suppliers and contractors that are change required due to the pandemic. The ethics and expertise that are relevant to based on and compliant with BSP regulations. Bank promptly modified the work environment stakeholders. It is committed to make The Board is transparent and fair in the It conducts annual performance evaluation and altered work practices to provide sure that all employees perform their work conduct of the annual stockholders’ meetings as part of appropriate control in determining additional protection for its employees, clients, consistently well, always to the highest of the Bank. It encourages the stockholders the ability and performance of the contractor/ and other stakeholders. The Bank provided standards to achieve their full potential. It to personally attend such meetings. Should service provider. physical barriers, installed temperature recognizes that training and development they be unavailable, stockholders are advised checking machines, installed hand sanitizers are fundamental to the improvement of ahead of time of their right to appoint a The Bank also practices the policy of and additional disinfection methods like the Bank’s operational performance and proxy. Subject to the requirements of the canvassing and bidding services in the conduct UV filtration. The Bank also enabled social- key to achieving strategies and goals. The By-Laws, the exercise of the right shall not of purchase of products or contracts for distancing protocols. It provided options for Metrobank Academy provides all employees be unduly restricted and any doubt about the services to ensure that the Bank secures the employees in choosing flexible work schedules with a wide range of suitable programs validity of a proxy should be resolved in the best deal in terms of price, quality of materials and in working remotely. It implemented to assist in their continuing professional stockholder’s favor. or work services, delivery time frame, and work-from-home policies and revised work development, so that the organization related terms and conditions. schedules by creating staggered shifts to will have the right quality of people for the Every stockholder entitled to vote on a limit the number of workers on-site at any business to grow and achieve its goals. particular question or matter involved shall given time. be entitled to one vote for each share of stock in his or her name. Cumulative voting is Policy on Health, Safety and The Bank actively promotes a safe and healthy Welfare of Employees Economic & Social allowed provided that the total votes cast by work environment that is conducive to the Development a stockholder shall not exceed the number well-being and professional development of its of shares registered in his or her name as of The Bank understands the magnitude of a safe employees. Among the programs instituted The Bank believes that it is also responsible the record date multiplied by the number of and healthy workplace during a pandemic. are wellness checks of employees, the results for the state and welfare of the larger society directors to be elected. Matters submitted Hence, the Bank instituted health and safety of which are the basis of choosing relevant to which it belongs. As an institution with a to stockholders for the ratification shall be protocols that are aligned with Department health interventions for the workforce. Medical heart, the Bank gives back to the communities decided by the required vote of stockholders of Health and the Centers for Disease Control services were set up for all employees. Its it serves and commits to make meaningful present in person or by proxy. All shareholders and Prevention at the onset of the COVID-19 health partner, ActiveOne, was tasked contributions to the economic and social shall have the opportunity to obtain effective pandemic. It is committed to the mitigation to properly respond to queries related to development of the nation. It measures its redress for violation of their rights. and prevention strategy in response to the COVID-19. The Bank has also provided a performance not only with financial returns but COVID-19 pandemic to ensure the health series of webinars for its employees, which also based on its social objectives. Majority vote is required for the following: and safety of every Metrobanker. Employees focused on active and healthy lifestyle habits (a) approval of the minutes of the annual are properly guided through various to combat diseases such as hypertension, Metrobank has comprehensive community and meeting of the stockholders; (b) ratification communication channels on good hygiene diabetes and obesity through SEED (Sleep, social responsibility programs conducted by of corporate acts; (c) election of external and appropriate disinfection procedures; Eat Right, Exercise and De-stress) Campaign. the Metrobank Foundation, its corporate social auditors. On the election of directors, available personal protective equipment for responsibility arm, and the employees through nominees receiving the highest number of employees and how to wear, use, clean and The Bank acknowledges its responsibility of the Purple Hearts Club (PHC). votes shall be declared elected following the store it properly; and provision of disinfectant safely securing its employees and clients. It provision of the Corporation Code. SGV & Co. believes that providing them with a secure validated all votes cast in the Bank’s Annual and safe work environment greatly enhances Stockholders’ Meeting in 2020.

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The success of the Club was founded on the Managing Risk Strategic Level heart for service shown by the Bank’s employee- Portfolio & Transaction Level volunteers. Employees participated in a variety The Banking business is all about managing of CSR programs that focused on education, risks vis-à-vis gaining rewards. Metrobank environmental stewardship, and health. PHC Risk Risk & Risk has been in this business for the past 58 Strategic Appetite Opportunities Assessment & also collaborated with partners across several Direction years and the magnitude to which it has built Definition Identification Evaluation industries to introduce employees to new the enterprise reflects on how it responsibly opportunities for volunteerism that benefit and manages and protects financial resources support other marginalized sectors of society. entrusted to it by its stakeholders. The Bank NO YES only takes in risks that it understands, can Risk Control Viable? & Mitigation manage, mitigate, or accept, and wisely Environmental Protection conducts its business based on a risk management framework suited to its scope As a responsible corporate citizen, Metrobank and complexity, consistent with international believes sustainable development is a Risk Risk regulatory standards. Monitoring Review fundamental aspect of managing a sustainable business and recognizes its importance as reflected in its lending portfolio priorities. Risk Management Principles

Metrobank is focused on developing a loan The philosophy of balancing risk and reward portfolio that directly protects and promotes translates to the following risk management environmental and social care, and likewise Risk Management Process Risk Governance principles: instilling in the borrowers the awareness that 1. As risk is organic to the banking business, social and environmental care are inextricable The Bank’s risk management process The Board of Directors, through the Risk the Bank manages risks that correspond to economic growth to achieve sustainable focuses on the interplay among business, Oversight Committee (ROC), composed to its goals and objectives as an ongoing development. concomitant risks, and required capital with primarily of independent members of the business; the goal of sustaining the franchise through Board, plays an active role in setting the The Bank advocates environmental the rise and ebb of the business cycle. The Bank’s risk culture and overseeing the 2. As the business landscape evolves, the stewardship and consistently strives to look risk management process provides the engine risk infrastructure, operating policies, Bank’s risk management practices must for areas to improve its operations towards the for the determination of the Bank’s strategic and exposures to ensure a good balance continue to be relevant and practicable, conservation of energy, water, and resources. goals, its material risks, and its appetite between risk appetite and prudence. The but always aligned with standards set by Environmental policies on optimizing the use for said risks. Risk exposure identification, Risk Management Group (RSK) supports its regulators; of paper, power shutdown of office equipment measurement, management, and monitoring and reports directly to the ROC. RSK is an to minimize resource usage and to save on provide the support on which business independent unit of the Bank that identifies, 3. The Bank must ensure that it has the right electricity costs, use of vehicles for carpool and budgets are afforded the chance of being analyzes, measures, and monitors identified risk governance structure to mitigate regular maintenance and servicing of vehicles achieved and for which capital adequacy to material risks in close coordination with risks, and avoid losses while maximizing to reduce transportation cost and carbon support the effort is continuously assured. other business units. It exercises oversight gains that may accrue from business emissions are in place. on the risk management units of various opportunities; and Metrics and risk assessment tools, adopted subsidiaries and affiliates, convening the Risk The Metrobank Purple Hearts Club’s “You’re from regulations and internal and external Management Coordinating Council quarterly, 4. Risk management is everyone’s concern – In Green Hands” (YIGH) environmental best practices, are used to measure identified with the goal of ensuring compliance with from the Board who sets the overall tone, stewardship program centers on addressing risks. The use of these tools complements the relevant regulations, and the implementation to the officers and staff who execute the many environmental issues in the country by conduct of business to help prevent risks from of a consistent risk management framework Bank’s Risk Management strategy. actively supporting restoration activities such being realized into serious issues, as well as across the Metrobank Group. as tree planting, mangrove planting, as well as cue the possibility of any instance that capital seashore and coastal clean-up drives. may be called to absorb losses.

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units, with fulltime BRMs functionally Credit Review disclosures are likewise found under Note 4 Board of Directors reporting to RSK. Such set-up is central to risk Dep’t of the accompanying 2020 Audited Financial (BOD) management, as it expresses everyone’s role Credit Risk Portfolio Credit Statements (AFS). Risk Dep’t in ensuring that risk exposures are managed Div. and within the Bank’s risk appetite. Consumer Credit Risk Dep’t Credit Risk Risk Oversight Trading Book Committee (ROC) Also implementing the risk culture that the Market & Dep’t Liquidity Board sets are the various management Risk Div. It is the risk that the borrower, issuer, or ALM Book committees which consider specific risks Dep’t counterparty in a transaction may default and Subs Risk Committees during business. cause potential loss to the Bank. It arises from Process Risk Mgt. Dep’t lending, trade finance, treasury, derivatives, Risk Branch Ops Management Risk Mgt. and other similar activities. The Bank’s appetite Div. Group (RSK) Officer Business Management Chief Risk Continuity Dep’t for this risk is low-to-moderate, reflective of its Risk Area Risk Oversight2 core business and the social responsibility that Process Risk Management Mgt. Dep’t Coordinating Sr CreCom, CreCom, Sr Head Office comes with being one of the financial system’s Credit Ops Risk Council NPAC, NPAC, ALCO Mgt. Div. Technology Risk largest lenders. (RMCC) Mgt. Dep’t Credit Sr CreCom, CreCom, Sr Concentration NPAC, NPAC, ALCO Quant Risk As a matter of general strategy, the Bank Dep’ts (3) manages this risk through a system of policies, Market ALCO Enterprise Risk & Trust Risk ICAAP metrics, and authorities that govern the Dep’t Office Strategic processes and practices of all credit-originating Functionally, RSK is structured such that Support Div. Interest Rate ALCO Enterprise Risk Group Risk and relationship management units, as well as separate divisions are set-up for a dedicated Dep’t Supervision other units involved in the credit cycle. On the management of the Bank’s largest financial Liquidity ALCO transactional and portfolio levels, to ensure risks - Credit1, Market & Liquidity, and that financial undertakings are balanced with Operations. An Enterprise Risk and Strategic Material Risks Operations, PolCom, ITGC, SAC,EmCom, prudential control, the Bank is guided by a Support division is likewise an integral part including Legal ManCom, Sec Com credit process that begins with the Bank’s of RSK’s infrastructure tasked to execute As a Domestic Systemically Important Bank Compliance defined strategies and risk appetite, driving RSK’s risk supervision mandate, manage the (including ML/TF) AMLCC (DSIB), Metrobank faces a broad range of the ensuing steps of origination, evaluation, Bank’s Internal Capital Adequacy Assessment risks reflecting such status. These risks approval, availment, and monitoring. To Process (ICAAP), and provide the quantitative Technology ITGC, EmCom include those resulting from its lending some extent, the Bank relies on third party support in the building of models and other activity, treasury operations, and extensive credit assessments, specifically on the ratings risk metrics. Reputation ALCO3 , EmCom, CX Com client-facing network, including its branches. provided by Standard & Poor’s, Moody’s, Fitch, The Bank recognizes that it is not possible and PhilRatings on exposures to Sovereigns, Notwithstanding a defined risk management Strategic BudCom, ALCO, ITGC, CX or necessarily desirable to eliminate some of Com, ManCom Multilateral Development Banks, Foreign Banks, function, the Bank recognizes that the the risks inherent in its activities. Acceptance Local Government Units, and Government core banking activity of managing risks of some risk, therefore, is often necessary Corporations and Corporates when applicable. is not the sole responsibility of RSK. It is to foster growth and efficiencies within rather a function that cuts across the entire business practices. At all times, however, To address the impact of asset quality organization as manifested in the Bank’s the Bank ensures that any risk-taking activity deterioration, the Bank sets up provisions three (3) lines of defense - risk-taking unit, 1 is aligned with its corporate objectives With the merger of the Cards business in 2020, Credit Risk for expected credit loss (ECL) arising from risk management, and audit functions. To Division was expanded to likewise include Consumer Credit Risk and capabilities, and that an effective risk its credit risk exposures following accounting further the risk management practice in the 2 Sr Crecom = Senior Credit Committee; NPAC = Non-Performing management process is in place. The Accounts Committee; ALCO = Asset & Liability Committee; standards and relevant BSP regulations. During organization, and as a direct response to the following are some of the material risks the PolCom = Policy Committee; ITGC = IT Governance Committee; the COVID-19 pandemic, the Bank significantly vision of BSP Circular 900 on Operational EmCom = Emergency Committee; SAC = Special Action Bank faces and the strategies for managing Committee; ManCom = Manpower Committee; CX Com = increased its ECL provisions owing to the sharp Risk, the Bank has Business Risk Managers Customer Experience Committee; Sec Com = Security Committee the same. Supplemental discussions and

(BRM) embedded in its various business 3As it relates to impact on liquidity risk

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decline in economic activity. A more detailed Independently, RSK-Credit Risk Division The Bank’s appetite for this risk is low, and balance sheet, as the Bank’s core business discussion of the Bank’s ECL methodology is monitors the Bank’s credit portfolio against manages this risk via a process of identifying, involves intermediation activities such as found in Notes 2, 3, and 4 of the accompanying set limits, and reviews sample accounts of the analyzing, measuring and controlling relevant deposit-taking and lending that inadvertently 2020 AFS. various business groups – focusing on credit market risk factors, and establishing appropriate creates both maturity and rate mismatch. quality and policy compliance – to provide limits for the various products and exposures. This translates to possible negative impact to The Bank holds collateral against loans and assurance and control over the effectiveness Quantitative expressions of this appetite include: the Net Interest Income (NII) and economic advances to customers in the form of mortgage of the credit risk management process Value-at-Risk limit, rolling 21-day P/L trigger, value, as interest rate movements affect interests over property, other registered throughout the Bank. The results of these rolling 21-day stop loss limit, YTD trigger/limit, interest earned/paid as well as the value of securities over assets and guarantees. activities are regularly reported to the ROC. product cap, sensitivity limits, tenor limits, and assets, liabilities, and off-balance sheet items. Estimates of fair value are based on the value qualitative limits. These limits are always set Thus, before embarking on any new asset and of collateral assessed at the time of borrowing against the expected returns to ensure that the liability management (ALM) strategy, both and are updated regularly following internal Credit Concentration Risk risk taken is commensurate to the benefit that Financial Markets Sector and RSK perform and regulatory guidelines. Generally, collateral the Bank will reap from such trading activity. separate assessments on profitability and risks, is not held over loans and advances to other Overexposure to specific industries, borrowers, To remain relevant, these are reviewed at considering the impact of movements in rates. banks, except when securities are held as part and/or counterparties could have a negative least annually, with possible changes within This ensures that the strategy will not result in a of reverse repurchase and securities borrowing impact to earnings and capital. The Bank has a the year as dictated by the emergence of risk level higher than what is deemed to be the activities. Collateral usually is not held against moderate appetite for this risk, recognizing that new regulations, developments in the market appetite of the Bank. investment securities. The Bank also holds specific growth areas may need credit support risk management landscape, complexity of collateral against loans and receivables in more than others, and that lending to highly the products being traded, and other major The appetite for this risk is low; as such, the the form of hold-out on deposits, real estate integrated customers often leads to pockets movements in the business environment. Bank follows a set of policies on managing its mortgage, standby letters of credit or bank of concentration. The Bank manages this risk assets and liabilities to ensure that exposure guaranty, government guaranty, chattel via adherence to processes relating to industry The Bank maintains Limits Monitoring and to fluctuations in interest rates are kept within mortgage, assignment of receivables, pledge of and counterparty assessments, observance of Reporting Guidelines which detail how the risk acceptable limits. This appetite is translated to shares, personal and corporate guaranty, and regulatory ceilings, and setting of internal limits. measures are compared against the approved a set of limits which is a major tool in monitoring other forms of security. Additional discussions and disclosures may be limits. Included in the guidelines are the set of and controlling the degree of interest rate risk found in Note 4 of the accompanying 2020 AFS. standard procedures in handling excesses or that the banking book is exposed to at any The standards of acceptability, valuation, breaches in limits and loss trigger hits. Daily, the given point in time. Limits include Earnings-at- enforceability, and monitoring/reporting of RSK-Market and Liquidity Risk Division provides Risk (NII-at-Risk) limit and management action sufficiency of risk mitigants are covered by Market Risk the limits compliance reports to key officers of trigger (MAT), Delta Economic Value of Equity Board-approved policies and procedures. the business units and RSK. The results of the ( EVE) limit, FVOCI MtM loss trigger, position Notes 4 and 9 of the accompanying 2020 It is the risk resulting from adverse movements limits monitoring process are also reported to limits, and tenor limits. AFS present an estimate of the fair values of in the general level or volatility of market rates ALCO on a weekly basis and to the ROC and collaterals held against loans and receivables. or prices or commodity/equity prices possibly BOD monthly. The limits are proposed by RSK, in coordination affecting the Bank’s financial condition. The with Strategic Planning Division and Treasury To ensure that the portfolio remains within Board of Directors and Senior Management, Further discussions and disclosures are found Group, against the expected income and capital, the defined strategy and risk appetite, through the Asset and Liability Committee under Note 4 of the accompanying 2020 AFS. to ensure that risk taken is commensurate to the constant monitoring is implemented by both (ALCO) set the general business model of returns the Bank will generate from its banking front and middle offices. Lending units, in the Bank’s trading portfolio. The setting of book positions. Also considered are the actual coordination with Credit Group, evaluate the risk appetite level takes into account Interest Rate Risk in the Banking Book NII, strategies, economic forecasts, and results the performance of their accounts, and macroeconomic conditions, financial market of stress testing. make regular presentations on watchlisted/ trends, relevant regulations and other factors. The Interest Rate Risk in the Banking Book classified accounts to the Non-Performing This is implemented by the Financial Markets (IRRBB) is the current and prospective The limits are reviewed annually or on an Asset Committee (NPAC) which provides Sector which originates transactions and crafts negative impact to earnings and capital arising interim basis to ensure that these reflect the direction on the next steps for the concerned new products needed by clients, whilst keeping from movements or shifts in interest rates. business environment, changes in strategies, problem accounts. itself updated on the financial environment and The risk becomes inherent in the current and and regulations. working within set limits and policies. prospective interest gapping of the Bank’s

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The Bank maintains Limits Monitoring and a Contingency Funding Plan to ensure Operational Risk environment, escalation, monitoring and Reporting Guidelines which detail how the preparedness to withstand stress scenarios. reporting of risk events, and adequate related risk measures are compared against The Bank recognizes that liquidity risk is one It is the risk arising from the potential that mitigation of assessed risks. This appetite the approved limits. Included in the guidelines of its most important risks, and that it must inadequate information system, operations, or is manifested in the thresholds it sets for are the set of standard procedures in handling be managed promptly and properly as any transactional problems (related to service or institutional and business unit level key risk excesses or breaches in limits and loss mistake can lead to a bank run and, ultimately, product delivery), breaches in internal controls, indicators (KRIs) and key performance trigger hits. its insolvency which could further trickle down fraud or unforeseen catastrophes will result in indicators (KPIs). KRIs are used to monitor to the financial industry considering its role unexpected loss. main drivers of exposures associated with key The RSK-Market and Liquidity Risk Division as a DSIB. As such, it sets limits or triggers risks; while KPIs give insight into the status submits the IRRBB limits compliance reports on cashflows over specific periods of time The Bank’s operational risk management of operational processes which may, in turn, every day to key officers of the business units (Maximum Cumulative Outflow limit), available framework seeks to constantly identify, assess, provide an understanding of the operational and RSK. ALCO receives the limits monitoring funding sources (Liquidity Coverage Ratio monitor, mitigate, and control key areas where weaknesses, failures, and potential losses. process report weekly while the ROC and BOD MAT, Net Stable Funding Ratio MAT, Funding losses would most probably materialize or Both are used with escalation triggers to warn are provided copies on a monthly basis. Utilization MAT) and funding concentration where losses would be significant. It espouses when risk levels approach or exceed acceptable (Funding Concentration MAT) to ensure that a mitigation and control culture of risk ranges, and prompt mitigation plans. the level of the Bank’s liquidity is adequate to management being everyone’s responsibility, Liquidity Risk always support funding requirements. and is to be performed by three (3) lines of Mitigation and control of the Bank’s identified defense: operational risks call for the preparation It is the risk to earnings or capital arising from Similar with other risks, the liquidity risk limits of a Risk Treatment Plan which identifies, the Bank’s inability to meet its obligations when and policy guidelines are reviewed annually or a. First Line of Defense – Business Units assesses, prepares, and implements a they become due. The Bank considers liquidity on an interim basis, as deemed necessary to b. Second Line of Defense – RSK’s Head range of risk treatment options. Depending risk as the most important considering that ensure that they remain prudent and relevant. Office Operational Risk Management Divi- on the availability/feasibility of preventive/ liquidity is the lifeline of any bank. As such, the sion (HOORMD) and Branch Operational corrective measures, and the benefits that appetite for liquidity risk is low. The Treasury Group-Asset & Liability Risk Management Division (BORMD) come from an exposure, the Bank may Management Division (TG-ALMD) is the c. Third Line of Defense – Internal Audit choose from the following approaches to treat The Bank’s strategy for managing this risk is primary unit responsible for managing the Group risks: Acceptance, Avoidance, Transfer, and generally via limiting the maturity mismatch liquidity of the Bank, its foreign branches, Reduction. between assets and liabilities, improving the and selected subsidiaries. It manages and Operational risk management tools include the stickiness of its deposit and liabilities profile, closely monitors the daily, as well as short- to following: Following the general risk management and by holding sufficient liquid assets of medium-term liquidity positions of the Regular framework where risks are monitored in both appropriate quality and marketability. Banking Unit (RBU) and Foreign Currency individual and portfolio bases, institutional and a. Process Risk and Control Self-Assess- Deposit Unit (FCDU) books. It also ensures business unit level KRIs and KPIs are regularly ment (Process RCSA) The Bank’s liquidity management practice that the Bank complies with regulatory monitored and reported to appropriate b. Risk Event Database (RED) is guided by a Funding Strategy Framework liquidity and reserve requirements. management committees and to the Board c. Results of internal/external audit and su- that serves as a blueprint for the utilization of Directors through the Risk Oversight pervisory issues raised in the BSP Report of the Bank’s funding sources under both On the other hand, RSK-Market and Liquidity Committee. of Examination (ROE) BAU and stress scenarios, while taking into Risk Division generates liquidity risk reports d. Risk Incident Report (RIR) consideration various internal and regulatory daily. At a minimum, the reports provide As the Bank’s first line of defense, its business e. System Risk and Control Self-Assessment limits. The Bank’s Macro Funding Strategy the exposures and established thresholds units are responsible for identifying, measuring, is to reduce liquidity risk by increasing the to determine compliance with limits and (System RCSA) controlling, monitoring, managing, and Bank’s base for long-term funding, which is identify emerging concerns on liquidity. The f. Business Process Mappings reporting their operational risks on a day-to-day put into motion with the Bank’s Term Funding exposures and profiles are provided to TG- g. Disaster Risk Assessment basis. As risk incidents affecting their area of Plan over the next three years. In terms ALMD every day and reported to the ALCO h. Business Impact Analysis operation occur, they are mandated to report of short-term funding, the Bank monitors every week, and to ROC and the BOD monthly. these within 24 hours through the Risk Incident various indicators of liquidity, including the Any breach in liquidity risk limits is reported The Bank’s appetite for operational risk is low Report (RIR). The units are further assisted Bank’s usage of its BAU Funding Capacity and to the appropriate level of management for and is managed via a framework involving by their Business Risk Managers (BRMs) who Intraday Liquidity. The Bank also maintains immediate action. various tools that promote a strong control

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are expected to effectively monitor internal regulations, and standards of good governance Material Risks Sample Risk Exposure Indicators controls of activities and established KRIs. and practice. The appetite for this risk is low and is managed via the conduct of a defined NPL; PD/ITL; Expected Credit Loss (ECL); Weighted Average Risk Rating 1. Credit risk (WARR) On a bank-wide level, HOORMD and BORMD Compliance program. Specific to Money monitor the operational risk profiles, material Laundering & Terrorist Financing (ML/TF) Risk, 2. Market risk VaR; P&L; Position and sensitivity limits exposures, and status of established KRIs and the Bank has zero tolerance for the same, and 3. Operational risk Key Performance Indicators (KPIs); Key Risk Indicators (KRIs); Risk Incident KPIs of Head Office units and of the branches, is managed separately by the Bank’s Anti- Reports (RIR); Disaster Risk Assessment (DRA); Business Impact Analysis (BIA) respectively; and report these to senior Money Laundering Division (AMLD) reporting 4. Credit concentration risk Large exposure share; SBL; RE; Industry and country share management and the BOD through the ROC. directly to the Board’s AML Committee. 5. Interest Rate Risk in the Banking Book Interest rate repricing gap (IRRG); Earnings-at-Risk (EaR); Delta EVE Compliance testing. 6. Compliance risk Penalties; BSP ROE; Technology Risk Strategic Risk (including Money Laundering) AML reports (e.g., STRs; CTRs; red flag reports); Internal audit reports

It is the current and prospective negative It is the current and prospective negative 7. Cybersecurity risk Various KPIs & KRIs impact to earnings arising from failure of the impact to earnings arising from adverse 8. Strategic risk Scenario assessment; ICAAP runs Bank’s IT systems, including information and business decisions, improper implementation cyber security. The Bank’s appetite for IT risk of decisions, and/or lack of responsiveness Maximum Cumulative Outflow (MCO); Funding utilization; Liquidity Coverage 9. Liquidity risk Ratio (LCR) is low, and its strategy in managing this risk to industry changes. The Bank’s strategy in is embodied in a comprehensive information managing this risk is to embed the same in the 10. Reputational risk Social media listening; Customer complaints technology management policy that various business functions as espoused in its 11. Contagion risk Stock price movements & intragroup exposures, ICAAP runs encompasses IT risk assessment, vulnerability strategic and business planning processes. testing, monitoring, controls, and mitigation.

Capital Adequacy Capital). The third step is Risk and Capital Contagion Risk Assessment. From the forecast, if needed, Reputation Risk The primary objectives of the Bank’s capital solutions to issues on capital are explored. It is the risk that the financial difficulties management process are to ensure that, These include capital raising and other It is the current and prospective negative encountered by a conglomerate’s individual on per entity and consolidated bases, it measures to optimize profitability and capital impact to earnings and capital arising from element could impact the financial stability of complies with regulatory capital requirements, efficiency. negative public opinion. As a bank essentially the other members or the group. To mitigate and to maintain strong credit ratings and survives on its reputation, the Bank has very this risk, the Bank places importance on policies, healthy capital ratios to support its business Capital adequacy is assessed based on the low appetite for reputation risk and always aims limits structures, and monitoring of controls in and to maximize shareholders’ value. As Bank’s risk profile and the available capital on to proactively build on its good name. The Bank dealing with RPTs, DOSRIs, and SAAs. with the Parent, the Group manages its an on-going basis. Actual ratios are generated holds that reputation risk is a consequence of capital structure and adjusts it in the light of by Controllership Group and reported other risks. Its management therefore is tied changes in economic conditions and the risk regularly to the ROC. Early warning indicators closely to how it manages its other risks. By Risk Reporting characteristics of its activities. are in place that may signal capital usage ensuring effective identification, assessment, beyond what the Bank can handle. control, monitoring, and reporting of the To ensure that exposures are within the Board- The Bank’s capital planning starts with a other material risks, reputation risk is likewise approved risk appetite, and that management Strategic Plan, where its strategic themes, As prescribed by Section X190.5 and Part VIII effectively managed. can lead the Bank to the fulfillment of its goals and objectives are set. Following of Appendix 63b of the Manual of Regulation strategies and targets whilst remaining within this is Financial Forecasting where goals for Banks (MORB), the following are the acceptable risk ranges, RSK and specialized and objectives are translated into financial pertinent risk and capital measures for Compliance and Regulatory Risk Bank units report the following risks to both forecasts (i.e. Balance Sheet, Income Metrobank, and its subsidiaries as reported to management and Board: Statement, Interest Rate, and Regulatory the BSP as of December 31, 2020 ad 2019: It is the current and prospective negative impact to earnings and capital arising from failure to comply with all applicable laws,

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Practice of Internal Auditing (“Standards”) and Capital Adequacy Consolidated Parent Company Anti-Money Laundering Code of Ethics. Php Mn 2020 2019 2020 2019 The Bank’s Anti-Money Laundering (AML) Tier 1 capital 320,958 310,100 312,194 310,971 compliance program, designed to identify The mission of Internal Audit is to enhance and protect organizational value by providing risk- CET 1 Capital 320,958 310,100 312,194 310,971 and mitigate business and regulatory risks, is based on established risk management based and objective assurance, advice, Less: Required deductions 33,250 33,812 91,562 127,872 practices, and conforms to applicable rules and insight. Net Tier 1 Capital 287,708 276,288 220,632 183,099 and regulations on the prevention of money Tier 2 capital 13,075 22,032 10,691 17,271 laundering and terrorist financing. The scope of work of the IAG ensures that risks are appropriately identified and managed Total Qualifying Capital 300,783 298,320 231,323 200,370 The sound risk management practices of the and interaction with the various governance Credit Risk-Weighted Assets 1,256,895 1,487,360 1,019,586 1,143,218 Bank are well established to ensure adequate groups occurs, as needed, through validation Market Risk-Weighted Assets 70,526 72,042 65,607 66,166 and active board and senior management on whether significant financial, managerial, and Operational Risk-Weighted Assets 165,001 146,694 99,592 86,437 oversight, acceptable policies and procedures operating information are accurate, reliable, and Total Risk-Weighted Assets 1,492,422 1,706,096 1,184,785 1,295,821 embodied in a money laundering and terrorist timely; operations and system functionalities are in compliance with Bank’s code of conduct, CET 1 Ratio 19.28% 16.19% 18.62% 14.13% financing prevention compliance program, appropriate monitoring, and management policies, standards, procedures, and applicable Tier 1 capital ratio 19.28% 16.19% 18.62% 14.13% information systems, as well as comprehensive laws and regulations, including adequacy and Total capital ratio 20.15% 17.49% 19.52% 15.46% internal controls and audits. These practices, effectiveness of controls associated with money together with effective communication and laundering and terrorist financing; resources training, and risk-based compliance testing, are acquired economically, used efficiently, promote a robust, dynamically responsive, and and adequately protected; Bank’s programs, The Bank in 2020 understandably had to Risk Management in the time appropriate compliance system along with a plans, and objectives are achieved; quality implement process changes to maintain the of COVID-19 culture of compliance towards a sound and and continuous improvement are fostered in uninterrupted flow of financial services. The risk stable financial franchise. The Bank’s robust the Bank’s control process; and, significant management function supported this objective The Bank’s risk management principles were and sound risk management practices, strong operational risks and issues are addressed. by way of process reviews and assessments with tested during the height of the COVID-19 commitment to good corporate governance the goal of ensuring that, despite operational pandemic, as it became clear that the challenge practices, and adherence to the principles The IAG maintains its independence and changes, key controls remained in place and for the risk management function was to sustain of safe and sound banking practices means objectivity in performing and delivering effective. the Bank’s goals of a) ensuring the safety of its regulatory, money laundering and terrorist audit works. The IAG Head or Chief Audit employees even as it endeavored to remain financing risks are effectively managed. Executive reports functionally to the Board of Risk management processes too had to evolve, business-as-usual (BAU), b) protecting the Directors through the Audit Committee and as the execution of BAU activities required the Balance Sheet against significant asset quality administratively to the Office of the President. All shift to virtual or digital means. Risk governance decline, and c) evolving and adapting to a new Internal Audit internal audit activities remain free of influence and oversight, however, remained active as normal way of doing business. by any element in the Bank and internal auditors meetings of the ROC, ALCO, and the RMCC have no direct responsibility or involvement over The Internal Audit Group (IAG) is were conducted as scheduled. As COVID-19 any Bank operating activities. Throughout the community quarantine period, established by the Board of Directors, and pandemic and the subsequent Government the risk management function supported the its responsibilities are defined by the Audit and regulatory reliefs challenged the health Over the years, the Internal Audit function has Bank’s Emergency Committee (EMCOM) in Committee as part of its oversight function. of the financial industry, business and risk become more relevant and consistent in adding the implementation of business continuity The Audit Committee and Management management functions worked together to value to the Bank. Professional auditors at the strategies including execution of split-site work take all the necessary measures to provide implement strategic initiatives, accelerate loan helm in internal auditing have a deep appreciation arrangements, setting up “work-from-home” the appropriate resources and staffing that loss provisions, and recalibrate risk models to of the importance of strong governance and capability, and workplace configuration for would enable Internal Audit to fully execute account for potential impact on asset quality, thorough understanding of the Bank’s products, social distancing. RSK likewise mobilized BCP its functions and achieve its objectives, structural liquidity, and overall risk profile. services, systems, and processes. IAG supports team leaders and BRMs for issues tracking while following the required principles of the the business by providing meaningful services and escalation for the purpose of providing the International Standards for the Professional Bank’s Senior Management necessary and actionable information.

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to the Bank and valuable insights through its and initiatives such as risk-based assurance constructive inputs and recommendations activities, consulting and advisory services, fact- AUDIT COMMITTEE REPORT TO to Management, resulting in significant finding or case analysis and group supervisory THE BOARD OF DIRECTORS improvements in the Bank’s operational activities, among others, enabled the IAG Head processes and control environment. to provide valuable overall evaluation on the adequacy and effectiveness of the Bank’s risk 2020 has been an extraordinary difficult Chairman had a private session with the Chief The year 2020 has been a challenging one for management, internal control, and governance year for the Bank and to its stakeholders as Audit Executive to discuss about the internal the business sector as the COVID-19 pandemic processes. the emergence of the COVID-19 pandemic control culture of the Bank. and natural calamities called for aggressive, has caused severe impact and continuing timely, and unprecedented responses from As the IAG adjusts to the new norm, and in challenges to the business. Nevertheless, the The Audit Committee regularly reported result of the government by the imposition of stringent keeping with the surge in business challenges Audit Committee has continued its works and its activities to the Board of Directors. It met with lockdown measures, which disrupted and growing array of risks, the Group aims to assisted the Board of Directors in fulfilling its all other independent and non-executive Board businesses, constrained mobility, and caused be more agile, dynamic, and risk responsive statutory and fiduciary responsibilities, as members, together with the External Auditor, economic contraction. The IAG experienced by refocusing its perspective and reshaping its well as in protecting the value and interests of Heads of Internal Audit, Risk Management and challenges in execution of its function and approaches to ensure effective delivery of its shareholders. It has effectively performed its Compliance Functions on a special meeting delivery of audit services due to the restrictions core mission. duties and responsibilities throughout the year, without the presence of any Senior Executives, brought by the pandemic, but this provided new as defined in the Board-approved Committee and discussed the identified critical and emerging opportunities for the Group to add more value The Group will implement various strategies and Charter. risk areas as well as the relevant governance and and provide insights and meaningful advice to transformational initiatives that include: control issues of the Bank. Management, particularly on areas identified (1) accelerated pivot to remote audit work and The Audit Committee is composed of four with heightened risks. development of sustainable and optimized qualified non-executive members duly appointed The Committee had completely performed techniques; (2) increased audit personnel’s by the Board of Directors, with three of its four its regular work program in 2020 despite the In light of the challenging environment, IAG access to relevant Bank’s systems, applications members as independent directors including the challenges and limitations brought by the refocused its business plan on emerging risks and data sources; (3) intensified deployment of Chairperson. All Committee members are with pandemic, and achieved the following key and optimized audit resources by providing more data analytics; (4) strengthened advisory role in relevant background and experiences, possess activities: crucial and valuable analyses, recommendations, providing holistic assessment on processes and appropriate knowledge and skills necessary in and advice to assist the Management in policies effectiveness, transaction profile, system carrying out their functions. The directors also 1. Financial Reporting and Disclosure: dealing with the changing business landscape. capabilities and adequacy of management hold membership positions in other Board-level Reviewed and discussed with Management Considering the need to continue assurance controls; (5) modernized learning approach Committees of the Bank, through which they and External Auditor the audited financial activities without disrupting critical operational in upgrading the skills of audit personnel on are apprised of developments in other areas and statements and related disclosures for the year areas at the time of crisis, the Group immediately current business landscape, new controls, are able to provide advices on risk taking and ended December 31, 2020, and reported the transitioned from traditional onsite face-to- systems and changing regulations; and, (6) management activities. same to the Board of Directors for approval. face audit to remote audit on selected areas enhanced audit risk assessment methodology In carrying out the review, the Committee and units by maximizing available resources considering strategic objectives and assessment In 2020, the Audit Committee held 12 regular ensured that the financial reporting process and enhanced coordination with different Bank of Management’s level of awareness and risk meetings and two joint sessions with the and disclosure requirements are in compliance units. This resulted in proactive and contributory ownership. Risk Oversight Committee. Most of these with applicable accounting standards and audit approaches that included advisory and were conducted virtually through remote regulations. consulting services, which aimed to address The IAG ensures that its audit work is aligned communication, as physical or face-to-face immediate threats brought about by revised with the Board of Directors’ expectations and meetings are prohibited in the new normal work 2. Risk Management and Internal Controls: operational procedures by the business units, Senior Management’s strategic and operational environment. Each regular committee meeting Performed a robust assessment of the Bank’s detect weaknesses in the implementation of the objectives. The Group is committed to evolve was attended by the Chief Audit Executive to risk profile, and evaluated the adequacy and prevailing controls, and provide Management and pursue realization of transformational goals report on the strategic developments, progress effectiveness of the Bank’s internal control with more meaningful insights on high-risk areas. in the coming years to deliver a more impactful of plans and significant issues arising from audit policies and procedures, systems and assurance and consulting services that will reviews. The Chief Risk Officer, Controller and processes through the audit assessment The completed revised risk-based Internal Audit encourage, sustain, and intensify good corporate External Auditor were invited to attend relevant results derived from the focused testing plan which includes fundamental audit activities governance practices across the Bank. sessions, as required. In addition, the Committee performed on high priority risk units and areas

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such as on crisis management, business the audit reports received on a regular basis, 5. External Audit: Exercised effective oversight 6. Oversight and Counsel in Handling Cases continuity, fraud and anti-money laundering, including the regulatory reports, to assess the of external audit function as the Committee of Irregularity and Dishonesty. At the cybersecurity, online banking, capital and overall condition of the Bank and its covered assessed and approved the reappointment request of the Audit Committee, a special liquidity risk management, occupational subsidiaries’ internal control system; (iv) of SyCip Gorres Velayo & Co., as the Bank’s meeting with Human Resources Management health and safety, complaints handling, among discussed significant matters with Senior external auditor for 2020; ensured the and Special Action Committee Head was others. The Audit Committee continued the Management, as necessary, and monitored external auditor’s objectivity, independence organized to discuss the investigation and proactive engagement and involvement of timely resolution of control weaknesses and compliance with ethical and professional disciplinary approach on various cases of Management in monitoring timely resolution and non-compliance issues identified; (v) standards; discussed and agreed to the irregularity and dishonesty. This initiative led to of audit observations and recommendations, recommended enhancements in the audit terms of audit engagement, coverage and the Bank’s action plan to revisit the policy and effectively conveying the culture of risk processes for continuous improvement. audit fees; reviewed and approved all non- process, as well as to provide relevant trainings ownership within the organization. audit services and expenses and related for employees. The Committee ensured that the internal audit fees (i.e., validation of votes cast at the 3. Regulatory Compliance: Monitored function has maintained its independence annual stockholders’ meeting, issuance of Based on the result of the Committee’s compliance of the Bank with new and throughout the year, has adequate and comfort letter, vulnerability assessment and accomplishments, representation from the Bank existing laws and regulations promulgated competent resources, and has appropriate penetration testing of publicly accessible Management, External Auditor’s unqualified by the Bangko Sentral ng Pilipinas and other authority to effectively discharge its duties servers, network, devices and services) to opinion on financial statements, and Chief Audit regulatory government agencies, including the and achieve its goals and objectives. As a ensure no conflict to independence; reviewed Executive’s overall satisfactory assessment on Bank’s availment of regulatory reliefs and the result, the Internal Audit Group (IAG) had the external audit engagement plan, approach the adequacy and effectiveness of Bank’s internal effective implementation of relief measures completed and delivered its 2020 audit plan and scope of work; reviewed the results of controls, risk management, and governance extended to its clients to manage the pandemic within budget, which provided valuable insights audit and recommendations in the External processes, the Audit Committee conclude that situation. to Management, resulted to new strategies Auditor’s Management Letter and action plans the emerging business risks and threats brought and approaches, enhanced efficiency of the Management on reported observations, by the COVID-19 pandemic are effectively In addition, the Audit Committee has and increased effectiveness of control including monitoring of disposition and status mitigated in accordance with the Bank’s policies performed the required annual review of implementation. of corrective actions. and relevant regulations. its Charter to ensure that it is updated and aligned with new regulatory mandates, and At the onset of the COVID-19 pandemic, the the annual self-assessment to evaluate their Audit Committee extended full support and performances against the requirements of the provided guidance to IAG which contributed to Charter. the Group’s quick and agile response in coping with the crisis. It assessed the adequacy and 4. Management and Internal Audit: Confirmed appropriateness of the changes and alternative the effectiveness of the internal audit function, audit strategies pursued in response to the including audit services and activities provided changed environment. Full monitoring of audit to Bank’s subsidiaries and associates. Among activities during the community quarantine the oversight activities performed by the period was undertaken to ensure that auditors Committee for the internal audit function are are still productive and are continuously Edgar O. Chua Francisco F. del Rosario, Jr. Solomon S. Cua Angelica H. Lavares the following: (i) reviewed and approved the engaged in audit activities while working from Chairman Member Member Member risk assessment framework and the annual home. Moreover, the Audit Committee initiated audit plan including subsequent revisions, adjustments in IAG’s budget and expense ensured adequacy of scope and activities, allocation, along with the revisions in audit and monitored accomplishments and plan scope and shift in audit strategy, which resulted completion to provide basis for the overall to cost reduction and savings for the Bank in audit conclusion; (ii) reviewed and approved 2020 whilst ensuring maintained level of audit the internal audit charter and manual, and execution effectiveness and quality of service oversee its implementation; (iii) reviewed outcomes.

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GROUP OWNERSHIP 102-5 SUBSIDIARIES & AFFILIATES

Ty Family & Other Related Parties Listed on PSE Free Float 37.2% 14.6% 48.2%

A diversified Listed on PSE financial portfolio

Investment Banking Savings Bank Leasing that capitalizes

Listed on PSE Effective Ownership on our collective 99.3% 88.4% 59.9% strength to give

General & Life Insurance you more. Note: There are no shareholder agreements, voting trust agreements, confidentiality agreements or any such other agreements that may impact the control, ownership and 28.0% strategic direction of the company.

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With a strong balance sheet and capitalization, Philippine Savings Bank (PSBank) stayed Even as 2020 proved to be among the most challenging years in recent history, First Metro resilient amidst the challenges of 2020. As a matter of strategy, it took a conservative Investment Corporation (First Metro) was able to maintain its pursuit of creating value for stance on credit provisioning in anticipation of risks associated with the pandemic. The Bank its clients and fulfilling its mission as a prime mover of the Philippine capital markets while prioritized the safety of its employees and customers by quickly instituting COVID-19 safety ensuring the health and safety of its hardworking and dedicated employees. protocols. Digital platforms were strengthened and made reliable as demand for digital banking services rose exponentially

PSBank’s operating income surged to 31 percent Outlook, citing the Bank’s highly-experienced Despite the volatility and uncertainties in the First Metro was also recognized as the Best before provisions to Php7.5 billion in 2020 . This management team and strong capitalization thus market, First Metro completed 23 deals, both in M&A House in the Philippines by the regional enabled the Bank to set aside additional loan loss having a very strong capacity to meet its financial the equity and debt capital markets, including investment magazine Alpha Southeast Asia. provisions to three times over to Php6.4 billion, commitments relative to that of other Philippine the successful maiden corporate issuance for It likewise received awards from the same to cover asset quality risks in view of the ongoing corporates. Del Monte Philippines, Inc. The investment publication for its deals: SM Investment pandemic conditions. The Bank closed 2020 with bank demonstrated its fundamental ability to Corporation’s Php10 billion Fixed Rate Bonds Php1.1 billion net income. Enrolment and utilization of the Bank’s digital execute and solidified its leadership position was named Best Local Currency Bond Deal platforms increased 56 percent and 143 percent, with 71 percent participation in the domestic of the Year and the Bureau of the Treasury’s Gross revenues were 13 percent higher at Php16.6 respectively. The Bank waived fees for interbank capital markets issuances for the year, with Php516 billion Retail Treasury Bonds was billon. Net interest income increased by 21 percent transfers thru InstaPay and PESONet to further commanding performance in deal structuring named Best Sovereign Bond Deal of the Year. to Php13.8 billion due to lower funding costs, promote digital payments. By mid-year, PSBank and distribution. which were partly driven by 16 percent rise in low made available the booking of time deposits via First Metro was among the top banks as well cost CASA to Php67.2 billion. In line with initiatives Mobile; and launched the national standard- The slew of awards First Metro received in at The Asset’s 2020 Asian Local Currency to improve efficiencies, operating expenses grew compliant QR Code for use in fund transfers/ 2020 shows its consistently exceptional Bond Benchmark Review. It was among by only 2 percent. payments. For the safety and convenience of performance as a leading investment bank the Top Sell-side Firms in the Secondary loan customers, settlement of PSBank loans in the country. First Metro was awarded the Market – Corporate Bonds, (ranked 3rd), Top PSBank’s capital position remained strong at via InstaPay was also made available in the last Best Investment Bank in the Philippines by Arrangers – Investors’ Choice for Primary Php34.5 billion. Total Capital Adequacy Ratio quarter of the year. In 2020, the Bank introduced Hong Kong-based publication FinanceAsia. Issues – Corporate Bonds (ranked 4th), and and Common Equity Tier 1 Ratio (CET1) further ISSA (Interactive Speedy & Simpleng Assistant), In its announcement of award winners, Top Arrangers – Investors’ Choice for Primary improved year-on-year to 19.4 percent and an interactive chatbot which customers can “chat FinanceAsia said, “The competition is always Issues – Government Bonds (ranked 4th). 18.1 percent, respectively. Both are above the on-line” with for quick responses to loan queries fierce, but this year it also took place against statutory requirement of 11% set by the Bangko and other product offerings in lieu of live customer an unprecedented global backdrop thanks Locally, First Metro reaped awards at the Sentral ng Pilipinas. Total assets closed Php219.4 service agents. to COVID-19. What stood out was the bank’s 2020 PDS Annual Awards. It bagged the Top billion. Net non-performing loans ratio was at a resilience and their ability to adapt to fast- Corporate Securities Market Maker, ranked manageable 5.2 percent.In January 2020, PSBank This pandemic clearly showed how PSBank changing conditions, not least in enabling 3rd in the Top 5 Fixed Income Brokering held the 2nd tranche of its Peso Fixed Rate Bonds continues to deliver on its “Simple Lang, most of their employees to successfully work Participants and 5th in Top 5 Corporate Issue offering which raised Php4.6 billion, almost double Maaasahan” promise to its customers, employees, from home.” Managers/Arrangers. First Metro also won the planned initial offer of Php3.0 billion. Due to and stakeholders. The Bank remains fully strong investor demand, the Bank had to cut short committed in providing exceptional customer the offer period. experience in all its service touchpoints, and given the changing business landscape, shall continue The Philippine Rating Services Corporation to harness available technologies to further (PhilRatings) assigned PSBank the highest Issuer strengthen its digital capabilities. Credit Rating of PRS Aaa (corp.), with a Stable

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the Best Fixed Income House (ranked 1st) at Be it in good times or in bad times, First Metro AXA Philippines (AXA) marks its 21st year of providing quality insurance the 2020 FMAP (Fund Managers Association believes that giving and sharing a part of products for Filipinos and remains to be one of the country’s leaders of the Philippines) Bankers and Brokers Poll. themselves enriches and expands the lives of in insurance and financial management. It offers financial security to Three of its officers were also recognized as everyone, whether as an individual or as part more than 1.5 million individuals through its group and individual life among the top salespersons and traders in of a larger community. First Metro donated insurance as well as general insurance products through its wholly the market. to various institutions (i.e. Kaya Natin!, owned subsidiary Charter Ping An. ANCOP and Rotary Club of Makati) whose Two of First Metro’s deals were recognized commitment is to help disadvantaged children as well at the 5th IHAP (Investment House in their distance learning during the pandemic. AXA offers a complete range of products accelerated growth on specific segments. Association of the Philippines) Awards: Fruitas for all its customers’ protection and wealth AXA stood strong on the health front. Just a Holdings Inc.’s Php1.0 billion Initial Public First Metro also gave support to Metrobank accumulation needs, including life insurance, few months after the country was placed under Offering won Best Equity Deal (Small-Mid Foundation for the benefit of the fisher folk health plans, savings and investments, and quarantine, it offered an enhanced version of Cap) and Light Rail Manila Corporation’s of Camarines Sur and Sorsogon who lost income protection; and through its general its Global Health Access product that included Php24.0 billion Project Finance Facility won their source of livelihood in the wake of the insurance subsidiary: fire, motor/car, marine pandemic coverage. Given that people were Best Project Finance Deal. devastating typhoons that hit the country in cargo, personal accident, bonds, casualty, and discouraged from leaving their homes, AXA 2020. The donation will be used to buy fishing engineering insurance products. also gave free medical teleconsultations to In 2020, not only was First Metro lauded for boats essential in regaining their livelihood. both existing health policyholders and non- its capital market’s expertise, but also for Being an unprecedented year due to the customers alike. Furthermore, it launched its acknowledging and encouraging women in the COVID-19 pandemic, AXA’s employees partnership with Cebu Pacific in September workplace. Asiamoney, through its Leaders remained to be its top priority in 2020. When which provided affordable health solutions that for Women Survey 2020, cited First Metro as the pandemic hit, the insurer quickly activated can be purchased online. one of the banks that have done the most to its work from home arrangement and mobilized encourage women in the workplace across its Technology and Transformation team for While the pandemic ushered in the so- Asia’s financial markets. The Asiamoney 24/7 support to the transition effort. When the called new normal, AXA capitalized on the survey ranked First Metro among the top return to office activity was already permitted, accelerated demand for remote and virtual- five banks in the Philippines, with women it provided the necessary personal protective based technology. As people practiced social comprising 54 percent of its total employees. equipment, among others, as a benefit to distancing and experienced lesser physical First Metro was the top investment bank in the returning employees. interactions, online communication and country in the survey. It also had 41 percent of transactions became the standard with AXA women in senior management positions, with AXA was guided by its noble purpose of acting being present in this space. It went full speed on 50 percent of vice presidents being women. for human progress by protecting what matters its digital transformation. Among its initiatives Its recent hires from the last graduating batch and inspired to serve by its corporate value of was the AXA Virtual Assistant (AVA) which were all women. ‘Customer First.’ AXA continued to ramp up enabled distributors to interact with customers its services amidst the painstaking challenges so they can conduct transactions online. AXA’s brought by the pandemic, and quickly pivoted products were also made available through its to continue to serve its customers in a new e-commerce platforms and made the digital environment – evolving its business models and experience for customers and prospects more ways of working – finding new sources of growth seamless with a ‘phygital’ approach. in new distribution channels, and enabling

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Its online thrust also opened the way for AXA responsibility activities. It worked with the Fiscal year 2020 was the most challenging in ORIX METRO Leasing and Finance Protect, through its partnership with Metrobank, Philippine Red Cross to install hand washing Corporation’s (ORIX METRO’s) 43-year history due to unprecedented events such as where it gave potential clients free personal stations in several schools and organizations the Taal Volcano eruption in January and the still evolving coronavirus pandemic. accident coverage. A strategic partnership with while its partnership with UNICEF sought to Cebu Pacific was also forged to make AXA’s address the nutrition needs of children. It held most affordable health plan available via the its Corporate Responsibility (CR) Week where it carrier’s website, helping make health a priority mainly conducted volunteer activities at home. for “every Juan.” In the aftermath of Typhoons Rolly and Ulysses, immediate assistance along with relief and fund- Despite a positive start in 2020, ORIX Against this challenging backdrop, ORIX The Emma by AXA app also had a more raising efforts were facilitated. METRO was not spared from the brunt of the METRO remains one of the strongly capitalized prominent role in being the go-to platform for pandemic as the rising trend was dramatically leasing and financing companies in the country customers with regards to information about It was the year when the whole world stood reversed. with its total equity even rising to Php8.7 billion their policies. It even added new functionalities still but for AXA, it was a time to uphold its this year from Php8.5 billion in 2019. The that allowed them to file their motor and commitment towards its customers and the ORIX METRO ended the year with a net Company has likewise maintained a healthy hospitalization claims, top-up their investments community. The year had been a journey income after tax of Php219 million from Capital Adequacy Ratio (CAR) of 16.6 percent and withdraw funds. Moreover, AXA’s Rescue towards discovering many reasons to be Php1.1 billion in 2019. This is equivalent to and a CET1 ratio of 15.8 percent, well above Line utilized the app to connect to a wider base thankful for despite the circumstances, a Return on Average Equity (ROE) of 2.5 the regulatory floor of 10.0 and 6.0 percent, and promote its free access to emergency foremost of which is the ability to protect percent. The weak results are due to the respectively. Additionally, its regulatory services such as ambulance, fire, police, and as many Filipinos as it could and provide a business slowdown, the Company’s stringent minimum liquidity ratios under liquidity roadside assistance. glimmer of hope for the future. credit approval procedures and its aggressive coverage ratio (LCR) and net stable funding provisioning for possible credit losses, which ratio (NSFR) stood at 416.4 percent and 109.6 The year also saw the launch of the AXA Motor increased to Php1.4 billion in 2020 from percent, respectively, well above the 100 Club for car insurance policyholders. The AXA Php363 million in 2019. percent minimum thresholds. ORIX METRO’s Motor Club complements the busy lifestyles total group resources stood at Php45.8 billion of its members with a wide range of premium The Management’s immediate response this year vs. Php53.2 billion in 2019. benefits and value-added services through its to protect the Company’s portfolio was to concierge, making the club a reliable companion conduct a Business Survivability Risk Test During the lockdown, all 112 ORIX METRO on and off the road. (BSRT) on all its accounts nationwide to branches nationwide remained open to assess clients’ cash flow position, the type of provide continued service to clients. Branches As much as it cares for its people, AXA business and industry they are in as well as in Metro Manila and some parts of Luzon likewise fulfills its responsibility to the greater their expertise and resilience in the face of this under lockdown operated at 50 percent community through regular corporate social extraordinary crisis. The payment relief under capacity, while branches in Visayas and the Bayanihan to Heal as One Act were applied Mindanao carried on under the business- to eligible clients. as-usual mode. The skeleton workforce

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AWARDS AND RECOGNITION We will continue to make the banking experience more meaningful. composed of critical departments under the ORIX METRO had reassigned Account Officers Company’s Business Continuity Plan (BCP) of its countryside branches to focus full-time Metrobank’s sterling performance in 2020 is o Top Investment Houses in Asian Local Currency reported to the Head Office and Calamba on FSOL solutions. not only seen through its operating earnings Bonds (Rank 4) Office. The health and safety of employees is a o The most Astute Investors in Asian G3 Bonds and quality of service it has rendered to its (Rank 1) priority of ORIX METRO during the pandemic, In addition to this, ORIX METRO will push its customers but also from the recognition and o The most Astute Investors in Asian Local thus it strictly reinforced precautionary warehouse leasing services in Calamba that honor it received from its peers in the industry. Currency Bonds (Highly Commended) measures to prevent and control the spread of can also potentially offer high yields when Last year, the Bank garnered accolades in o Best Local Currency Bond Individual - Trading the virus in all branches and offices. fully maximized. There is a development various areas of its business, from retail to (Rank 2 & 3) plan which aims to double ORIX METRO’s dry trading, and from corporate governance to o Best Local Currency Bond Individual - Sales (Rank 4 & Highly Commended) Fulfilling its role as a responsible corporate warehouse portfolio from the present 27,218 corporate social responsibility. The awards and citizen, ORIX METRO responded to the needs square meters with an additional 20,500 recognition received for the year included: • The Asset Top Sellside Firms in Asian Currency of medical front liners who are risking their own square meters. Bonds 2020 o Top sellside firms in the secondary market - health and safety to care for COVID-19 patients. • The Asian Banker BankQuality Consumer Survey and Rankings Corporate bonds - Php (Rank 1) The Company donated PPEs and food packs to ORIX METRO is optimistic that by executing on o o Most Recommended Retail Bank in the Top sellside firms in the secondary market - a number of hospitals and health workers. these strategies and by continuously providing Philippines, and 4th in Asia Pacific Government bonds - Php (Rank 1) o Top arrangers - Investors’ Choice for primary its clients with excellent products and services, o 3rd Most Helpful Bank in the Philippines and issues - Government bonds - Php (Rank 1) The disruptions brought about by COVID-19 it can seize new business opportunities that 38th in Asia Pacific During COVID 19 upended the business landscapes of ORIX will help the Company meet the challenges of • 2020 Annual Philippine Dealing System (PDS) • 2020 Fund Managers Association of the Philippines (FMAP) Awards & Fellowship Night METRO’s traditional markets for mortgage upturn after the COVID-19 crisis. Awards o Best Fixed Income House (Rank 2) loans and financial leases. The Company o Cesar EA Virata Award for Best Securities House (Bank Category) o Best Foreign Fixed Income Trader (Rank 1) o will continue to aggressively market the o Top 5 PDDTS-PvP Participants (Rank 2) Best Local Fixed Income Trader (Rank 1) Full-Service Operating Lease (FSOL) of o Top Corporate Securities Dealing Participant • The Bureau of Treasury GSED-Market Maker vehicles offered by its subsidiary, ORIX o Top Brokering Participant for Retail • Institute of Corporate Directors (ICD) Corporate Transactions Rental Corporation (ORC). Even during the Governance Award o Top Dealing Participant pandemic, this product remained attractive to • The Digital Banker’s Global Retail Banking • The Asset Benchmark Research Awards 2020 multinationals and big local corporates, thus Innovation Awards 2020 - Outstanding Social o Top Investment Houses in Asian G3 Bonds Media Campaign (Rank 1)

The Metrobank Foundation, Inc. was recognized as the “Philanthropic Foundation of the Year” (Profiles in Excellence Award) during the 72nd anniversary celebration of the American Association of the Philippines.

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CORPORATE SOCIAL RESPONSIBILITY

A HEART THAT NURTURES We care for the unserved and the underserved. Php321m MEANINGFUL ASSISTANCE

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During Disasters The increase in PHC chapters from 65 to Metrobank’s Corporate Social Responsibility in Metrobank 69 placed PHC’s total volunteer strength at 2020 remains unshakeable. At the height of major Foundation, Inc. In times of natural disasters, the tandem of MBFI 7,753 members nationwide. Of these, 88% or setbacks in the economy and everyone’s personal and GTFI would quickly mobilize and use their 6,823 members participated in CSR programs lives due to the global health crisis, the core value Against the backdrop of an environment funds under its disaster relief and response through service and donation efforts. A total of of Heart for Community remained steadfast. fraught with difficulties under the pandemic, the program, “Helping Hands.” In 2020, Php8.9 609 members were present to help in various Despite the many areas of need that transpired, Metrobank Foundation, Inc. (MBFI), together with million was released, which assisted 14,500 CSR activities while 6,813 members donated to Metrobankers maximized the opportunity to GT Foundation, Inc. (GTFI), dedicated its efforts displaced families from the Taal Volcano eruption, these causes. provide aid willingly, notwithstanding the reality to the pursuit of collective action and sustainable and typhoons Rolly, Ulysses and Ambo. Food that employees are also expected to prioritize change. As a corporate philanthropic foundation, items, hygiene kits, sleeping mats and blankets The business teams further provided more themselves and their own families given the MBFI has transcended its role to become a were distributed. meaning into banking through community uncertainty of the situation. co-creator of solutions towards the shared goal involvement. The Trust Banking Group, for of rebuilding a better Philippines in the post- example, distributed COVID-19 care kits Metrobank has equipped its employees with the pandemic future. “Helping Hands” in the time of containing vitamins, alcohol, sanitizers, face best skill sets that helps firm up the Bank’s position COVID-19 masks and shields to its adopted community as a socially responsible industry leader. The Bank In 2020, MBFI redirected its efforts to pandemic in R. Palma Elementary School in Pasay. It and its employees have put a premium on the response, deferring the implementation of its MBFI and GTFI supported communities and also generously shared its Christmas party value of community service beyond banking. core corporate social responsibility programs. frontliners. A total of Php321 million was donated allowance to its team members and fellow Through a multi-faceted approach, MBFI led which directly helped 497,189 individuals or employees who were affected by Typhoon the Metrobank Group and GT Capital Holdings 113,200 families. The donations provided short- Ulysses. Donations from the group were also in funding and supporting efforts to address the term relief and recovery assistance to affected channeled to Bangon Luzon. pandemic’s consequences and serve those who sectors. It also implemented a robust, mid-term need most help through short-term, mid-term emergency response plan through strategic and long-term interventions. The organizations partnerships in collaboration with the government created a strategy that sought to complement and other stakeholders that look after the needs existing national policies and interventions; of communities. provide timely solutions to economic and social challenges; and support demographic needs. Purple Hearts Club In moving to the new normal, MBFI pivoted its approach and created a three-pronged strategy The Purple Hearts Club (PHC), Metrobank’s in pursuing its flagship programs, the Metrobank volunteerism arm, marked its 18th year in 2020. Foundation Outstanding Filipinos, the Metrobank Unfortunately, COVID 19 made it challenging to Art & Design Excellence (MADE), and the perform community service activities. Metrobank-MTAP-DepEd Math Challenge (MMC). First, it maintained the organization and programs In lieu of PHC programs that involve community for its key stakeholders and beneficiaries. visits and physical interaction, volunteerism Second, it shifted platforms from face-to-face focused on donation efforts under Disaster and communication, to digital. Third, it maximized Relief Efforts, Pandemic Response, Community digital media to reach out to the public. Assistance, Education, and Health. Aside from the pandemic, the surge in corporate volunteerism was fueled by unfortunate disasters such typhoons and the Taal eruption. Through it all, the strong culture of malasakit and bayanihan imprinted in the psyche of the Bank’s employee-volunteers prevailed and encouraged more participation. For more details, please refer to the Sustainability Report and the Metrobank Foundation Annual Report

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SUSTAINABILITY REPORTING

SUSTAINABILITY BEYOND BANKING Bolder and bigger goals for people, planet and profit. 102-50, 102-54

ABOUT THE REPORT

Sustainable Banking in the New Normal is the second Sustainability Report of Metropolitan Bank & Trust Company (the “Bank”) which communicates the manner by which the Bank’s management approach in governing economic, environmental, social and governance issues as well as the endeavors of the Foundation from January 1 to December 31, 2020 have created an impact, leaving an imprint of the Bank’s efforts in environmental and social responsibility concerns. This report has been prepared in accordance with the GRI Standards: Core Option. The Philippines’ Securities and Exchange Commission’s Sustainability Reporting Guidelines for Publicly listed Companies was also used as reference in making this report, which does not include international operations and those of its subsidiaries, unless otherwise specified.

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MATERIALITY Journey towards PROCESS

102-46 1 2 3 4 5 Sustainability102-1, 102-2, 102-3, 102-5, 102-6,102-7 ASSESS BENCHMARK COLLABORATE DISCLOSE EVALUATE Top management Experts were consulted Departments were Top management Sustainability Team shall identified sustainability regarding relevant engaged in verifying reviewed and approved recommend to the top goals, enablers for sustainability disclosures, pertinent sustainability the material disclosures management improvement creating shared value, and related principles governing metrics that the reported to ensure on policies and procedures designated a Sustainability etrobank was established 59 years society through financial education initiatives and the financial activities as well as Bank monitors to integrity and to ensure impacts to society Team to drive the local and international best determine its risks and accountability. and the environment are company’s commitment ago in the historical community of development of responsive and innovative products. banking practices. opportunities properly managed. to safeguard the 3Ps - Binondo, Manila. Through the decades, Metrobank believes that banking is a business of trust. M people, planet and profit. it has evolved into one of the most respected and It highly esteems the trust given by customers and prominent names in the field of banking in the shareholders, and commits to the high standards of Philippines and Asia. True to its signature slogan governance by espousing accountability, integrity and – You’re in Good Hands – Metrobank has become transparency. the trusted partner and ally of businesses needing a financial institution that can be relied upon for their We are able to contribute to the sustainability goals MATERIAL TOPICS 102-47 corporate and personal banking needs. through four main drivers – 1) ensuring growth while managing future risks, 2) meeting customer demand, Sustainability Relevance Material Topic GRI Index To continue helping industries grow and assisting 3) attracting and retaining talent, and 4) managing Driver individuals in achieving their aspirations, Metrobank brand and reputation. Ensuring Growth Risk is inherent in a financial institution. The Bank takes • Revenue Growth 201-1 has kept pace with the rise of a more socially while Managing calculated risks to seize business opportunities. Metrobank • Market Share 102-7 inclusive and environmentally conscious society. With these, we believe we can create not just Future Risks ensures that it has efficient and transparent processes, • Domestic Presence 102-4 exceptional people, and secure technology to properly • Overseas Activities 102-4 It has been quick to integrate more sustainable economic value but shared value, and we can help in manage the risks accompanying the strategic investments • Thorough Underwriting 102-11 principles in its operations, putting environmental and building an inclusive and sustainable society. it makes to foster profitability and ensure environmental • Responsible Business 102-12 and social responsibility. We are your partner in growth. Practices social responsibilities front and center of business

decisions. Meeting Customer Metrobank strives to provide for the financial needs of • Customer Reach 102-6 Metrobank’s material topics describe and Demand its customers, whatever their aspirations may be. The • Customer Management Marketing Bank addresses customers’ various needs through its • Network Reliability and Labelling Metrobank’s sustainability framework is anchored on communicate the economic, environment and social diverse and ever evolving products and services, which are • Responsive Products 203-2 achieving long term shareholder value and creating issues that the Bank and its stakeholders deem accessible and reliable in numerous platforms 102-2, 203-2

shared value for a sustainable future. most relevant. These are anchored on the four main Attracting and We are able to provide exceptional experience because • Employee Retention 102-7, 401-1, sustainability drivers and reported according to the Retaining Talent our employees find meaning in their work. For this reason, • Health and Safety 401-2, Metrobank invests in their health, professional growth, and • Development and Training 403-3, 403-6 The Bank continues to embed sustainable practices GRI Standards and SEC Guidelines on Sustainability personal development. • Community Involvement 403-10 to reduce the environmental impact of its business Reporting. 404-1, 404-2 413-1 by promoting operational eco-efficiency while contributing to a thriving, resilient national economy. The Bank’s material topics are subject to change Managing Brand and Metrobank has built a stable and responsible brand with • Community Investment 413-1 with the times as to incorporate new guidelines from Reputation a credible and trustworthy reputation. Our track record in • Energy and Materials 301-1, 302-1, transparency, dependability and accountability allows us to Efficiency 305-1, 305-2 Through the Metrobank Foundation, the Bank regulators such as BSP, and to anticipate and address build lasting relationships with our stakeholders as well as • Data Security and Privacy 418-1 supports social causes in education, peace and order, the needs of our stakeholders. Hence, our materiality entice new partners and customers. • Financial Literacy Endeavors 413-1 • Good Governance 205-3 and the arts, recognizing that promoting excellence process is iterative, and our sustainability framework and Integrity in these fields plays an integral part in national is to be reviewed and revised as the need arises. Note: Material topics’ impacts occur within the Bank’s local operations, except for Revenue Growth and Overseas Activities which include international operations development. It also creates value for clients and

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STAKEHOLDER ENGAGEMENT Despite a conservative provisioning strategy, 102-40, 102-42, 102-43,102-44 Passion for Metrobank in 2020 registered a strong performance. Balance sheet recorded an asset Metrobank recognizes the crucial role its stakeholders play in the company’s continued growth. As such, the Results base of Php 2.2 trillion and a total equity of Php 325 Bank has established various channels to understand stakeholders’ concerns and needs, and to encourage billion. Metrobank secured its customers’ trust as dialogue for resolutions. ECONOMIC DISTRIBUTION evidenced by a Php 1.6 trillion in total deposits and 102-7, 201-1 receivables at Php 1.0 trillion.

Metrobank is relentless in its drive for continued Metrobank’s direct economic value generated for Stakeholder Group Engagement Platform Concerns and Issues Management Approach growth and exceptional economic performance. 2020 amounted to Php 113.9 billion. Shareholders The Bank’s favorable returns in 2020 despite the Customers or clients • Daily customer touchpoints • Responding efficiently to • Upgrade of systems and and other capital payments amounted to Php 9.5 with our front-line inquiries and requests streamlining of processes challenges of the pandemic is credited to its high- billion while remuneration, rewards and welfare of Our business is to cater to the employees • Resolution to customer • Strict implementation of the performing human capital, and strong built-in wide range financial needs of the • Monthly customer complaints Bank’s Data Privacy Policy our employees is at Php 18.8 billion. Majority of our Filipino people. satisfaction surveys • Data privacy and security systems and policies that further strengthened its economic value covered our operational expenses • Annual Net Promoter corporate governance framework. In managing Score studies registered at Php 61.3 billion, which mainly revolved its sustainable business, the Bank continues to around the payments to our local suppliers and be a strong development partner, passionate and Employees • Meetings • Compensation and benefits • Benchmark compensation and service providers. The Bank’ contribution to the • Employee engagement • Career and personal benefits against industry peers committed to its customer’s financial well-being. Meaningful banking is achieved survey conducted every development • Offer training programs and government in the form of taxes, licenses and other through our dedicated and other year educational assistance empowered employees. • Annual performance programs fees amounted to Php 18.2 billion. Meanwhile, the assessment • Career advancement and Bank’s community investments amounted to Php meaningful engagement 92.4 million.

Suppliers • Vendor management • Procurement terms • Transparency in vendor process accreditation process An extension of our business, • Annual performance review suppliers allow us to provide innovative, seamless and secure solutions to the community we serve

Investors • Annual Stockholders’ • Financial performance • Provide full disclosure in Meeting • Frequency of engagement compliance with the Together with our shareholders, • Quarterly Earnings Call regulatory requirements we help build a better • Regular meetings and community. teleconferences • Roadshows

Regulators • Regular correspondence • Compliance with relevant • Transparency in the through letters, memos, national laws and disclosures required by law The government ensures that and emails regulations, as well as those businesses are conducted mandated by the Bangko fairly and protects the rights of Sentral ng Pilipinas everyone.

Community • Dialogues and surveys • Stimulation of local • Roll-out of recognition • Community outreach economy programs and community Through our business, we aim programs • Recipients and impacts projects to contribute to the financial of corporate social • Financial support to wellness of the community responsibility projects education, arts and culture we are in by giving access to financial instruments, and boosting economic activities.

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METROBANK AS A TRUSTED compliance with regulatory requirements. There are • Substandard Grade given to borrowers who connects its business strategies with the world’s FINANCIAL PARTNER authorization limits for the approval and renewal of belong to an unfavorable industry or have development priorities and contributes to positive credit facilities. company-specific risk factors which are of change in the world. As an institution with a heart concern. Borrowers who exhibit potential Financial Education: Customers that is deeply immersed in communities, Metrobank Metrobank also implements prudent concentration weaknesses that need close attention from the believes that no one should be left behind in the Are People, Not Accounts limits in granting loans to counterparties and management are also given this grade. sustainable and resilient path it treads. industries, and by issuer, in the case of investment Metrobank continues to be guided by its securities. • Impaired Grade given to borrowers who appear Through its Institutional Banking Sector (IBS), commitment to improve its service by anticipating to involve a substantial or unreasonable degree Metrobank helped contribute to 9 of 17 SDGs in the needs of customers and delivering outstanding The Bank monitors credit quality by analyzing and of risk because of unfavorable records or 2020. Building mechanisms that further develop work. This promise enables Metrobank’s customers categorizing the repayment ability of a borrower unsatisfactory characteristics. This grade is also social capital created more opportunities for to make well-informed financial decisions on how – whether an individual or company - through the given to non-performing borrowers and to those economic and environmental conditions to advance best to make their money work for them. Internal Credit Risk Rating System (ICRRS). The which have assets that are not bankable. in less developed communities. By investing on ten-grade rating system reflects the borrower’s financial capital and providing Php 606.9 billion “Our customers are people, not accounts,” says risk of default and availability of a collateral or other The ICRRS has proven effective in minimizing risks in capital loan disbursements, the Bank reduced Metrobank Chief Marketing Officer Digs Dimagiba. credit risk mitigation. Compliance with approved and streamlining Metrobank’s assessment of loan hunger and inequality; improved education, health, This speaks of the customer-centricity culture that exposure limits is also closely monitored. clients by the strong balance sheet it demonstrates. sanitation, and work; helped build affordable and is alive and well in Metrobank. These metrics assist relationship managers in clean energy, better infrastructure, responsible The ICRRS contains the Borrower Risk Rating (BRR) developing their skills and intuition in assessing consumption, and more livable communities. To realize the vision of empowering customers to and the Facility Risk Factor (FRF). potential clients and identifying which will be make meaningful financial decisions, Metrobank • BRR assesses the borrower’s creditworthiness, beneficial to the Bank and the stakeholders. As the bank continues to refine parameters on recently launched MoneyBasics and Earnest. using their financial condition, the viability of the determining contribution of outstanding loans to the industry of the borrower, and the capabilities of UN SDGs, the presented numbers in each goal may its internal management. be amended. • Facility Risk Factor (FRF) investigates details CONTRIBUTION OF THOROUGH UNDERWRITING of the facility security arrangement and quality 102-11 OUTSTANDING LOANS TO of documentation. This factor can downgrade SUSTAINABLE Thorough credit underwriting policies are crucial in or upgrade the BRR, depending on collateral, DEVELOPMENT GOALS selecting the right clients to maintain and sustain quality of documentation, and structure of 102-12 a strong balance sheet, good reputation, and zero transactions. credit risks. In September 2015, 193 international heads of states An individual’s borrower risk rating is validated and governments adopted the United Nation’s (UN) Sudden financial defaults or questionable dealings by the Credit Group to maintain accurate and 2030 Agenda, a comprehensive plan that details linked to its clients would adversely impact the consistent risk ratings across similar profiles in the strategies to end extreme poverty, help resuscitate Bank’s reputation, and even its business viability. credit portfolio. On the other hand, commercial the environment, and diminish inequality. It is an loans’ credit quality with the corresponding ICRRS inclusive, far-reaching, people-centered set of 17 To avoid such circumstances, the Bank adopted a Grade is divided into four grading groups: goals and 169 targets called the UN Sustainable solid credit risk management system that covers • High Grade given to borrowers with a very low Development Goals (SDGs). credit policies, authorizations, risk evaluation, and probability of default. compliance monitoring. The sets of goals and targets demonstrate the scale • Standard Grade given to borrowers with limited and ambition that aim to transform the fundamental Credit policies are formulated in consultation access to public capital or alternative financial principles of the Agenda into concrete actions with with business units on collateral requirements, markets and borrowers with a higher probability definite, measurable results. As governments all credit assessment, risk grading, reporting, and of default. over the world have agreed to these goals, it is now time for businesses to act. In adopting the UN’s SDG framework, Metrobank

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COVID-19 is only one of many communicable diseases that both government and private sectors continue to address, as with other non-communicable illnesses.

In its commitment to improving access to quality and Achieving affordable healthcare, Metrobank has disbursed Php Universal 4.8 billion in loans directed towards healthcare and Health Coverage wellness. Php 4.8 billion Goal 6. Ensure availability and sustainable management of water and sanitation for all

Goal 3. Ensure healthy lives According to the World Wildlife Fund, clean fresh and promote well-being for all water is essential for a healthy human life, but 1.1 at all ages billion people all over the world still lack access to water and 2.7 billion will have no access to safe Prior to the pandemic, progress in decreasing cases water supplies at least one month a year. Here in the Goal 2. End hunger, achieve food increased demand may have been a turning point of TB, HIV, and fostering child health, widespread country, 5% of Filipino families get drinking water immunization and better maternal health were from “unimproved” sources such as unprotected security and improved nutrition and in ending and decreasing all forms of hunger and malnutrition because of the complications of the globally advancing although rather slowly. However, wells or springs. Although less than 1 percent acquire promote sustainable agriculture pandemic. Resilient partnership between the private the disruptions due to the health crisis could reverse drinking water directly from rivers, dams, lakes, sector and government, as well as benevolent decades of health improvements. ponds, streams, or irrigation canals, there are still a The effect of COVID-19 on food production by private initiatives of organizations like the Metrobank million people who have no access to clean water. small-scale food producers can only be described Foundation, Inc. through their food distribution In the Philippines, there has also been a significant as monumental and nearly catastrophic. Due to the channels also made the difference. The immediate improvement in health coverage due to health program In 2020, Metrobank funded Php 5.6 billion worth of lockdown, mobility and movement of goods and disbursements of the conditional cash transfers, and enhancements. Nonetheless, COVID-19 has upset the projects that target clean water and sanitation, to help services were curtailed. A semblance of normalcy for other benefits that local government units provided health order and any gains in healthcare the country ensure access to quality and safe drinking water for both consumers and producers only began when the its constituents were the stimuli that helped spur had. The strain on public health, health of front liners all Filipinos. economy reopened. Metrobank’s Php 82.1 billion economic activities that were largely attributed to and health services in-spite of developed vaccines, all in loans that enabled food manufacturers to meet increased food production and distribution. contribute greatly to the challenges the nation faces as

Php 75.1 billion - Universal Access to Safe and Nutritious Food

Php 3.4 billion - Sustainable Food Production and Resilient Php 2.6 billion - Safe and Agricultural Practices Affordable Drinking Water

Php 1.1 billion - Double the agricultural productivity and Php 3.0 billion - Improve Water incomes of smal-scale food producers Quality,Wastewater Treatment and Php 82.1 billion Safe Reuse Php 5.6 billion Php 2.5 billion - Invest in rural infrastructure, agricultural research and technology

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Php 21.8 billion - Sustain per Capita Economic Growth Php 67.5 billion - Universal Access to Modern Energy Php 70.3 billion - Diversify, Innovate, and Upgrade Industries for Sustainability Php 1.0 billion - Increase Global Percentage of Renewable Energy Php 4.6 billion - Support job creation, entrpreneurship, Php 14.3 billion - Expand and Upgrade Energy Services creativity, and growth of MSMEs for Developing Countries Php 87.8 billion Php 5.8 billion - Full Employment and Decent Work Php 5.0 billion - Promote Access to Research, Technology with Equal Pay and Investment in Clean Energy Php 119.3 billion Php 1.9 billion - Promote Beneficial and Sustainable Tourism

Php 14.9 billion - Universal Access to Banking, Insurance Goal 7. Ensure access to affordable, Goal 8. Promote sustained, and Financial Services reliable, sustainable and modern inclusive and sustainable economic energy for all growth, full and productive employment and decent work for all SME LOANS Goal 9. Build resilient For the last couple of centuries, fossil fuel energy infrastructure, promote inclusive has been easy to find and reliably used around the A robust economy that hinges on the steady growth Small and medium enterprises (SME) significantly and sustainable industrialization world. However, fossil fuels when burned are also of its industries creates favorable opportunities contribute to the businesses and employment and foster innovation. the top contributor to global warming due to their that open more employment prospects to uplift the that are generated annually in the Philippines. high carbon output. As such, it is vital to pivot to quality of life of every Filipino. SMEs account for nearly 2.9 million jobs or 33% Sustaining industrial productivity by judiciously alternative and sustainable sources of energy to of the country’s total employment. With its huge managing resources and optimizing the use of counter climate change, to sustain, and ensure the Before the pandemic, the Philippines’ per capita impact on the economy, sustaining SME growth technologies and breakthrough innovations will safety of our planet. GDP recorded an all-time high of 4.6 percent growth, also propels the economy at large. In support of further bolster economic growth. This was evident from Php 82,593 in 2017 to Php 86,370 in 2018. SMEs, Metrobank extends several types of loans to with the way businesses responded to the pandemic The Asia-Pacific is still one of the most energy Unemployment also dropped to 5.3 percent in 2018, the sector, each customized to the needs of small challenges foisted against business continuity and intensive region, and by 2030 will be reaching the lowest on record since 2005. The pandemic has business owners: growth through the creative work set-ups and altered Europe’s energy levels should the current rate of sadly upended these economic achievements and consumer habits. progress in increasing energy efficiency not be brings to fore the need to create more jobs through 1. Puhunan Loan – for construction-related improved. In 2019, 24% of electricity generated in investments and entrepreneurial initiatives. projects, facility acquisition, general Metrobank fully supports industry, innovation, and the Philippines came from renewable sources while merchandise trading, and product development infrastructure through three main lending thrusts: coal and natural gas accounted for 47% and 22%, As one of the strongest financial institutions, 2. Agri Business Loan – for livestock and grain respectively. Metrobank has always played a significant role in the trading, food processing, and similar activities 1. Dedicated to enabling telecommunication country’s financial system and economy. Last year, 3. Franchise Business – for acquiring franchise providers in expanding mobile connectivity and In 2020, Metrobank disbursed Php 87.8 billion in Metrobank extended Php 119.3 billion of commercial packages and pre-operating expenses, such as access to the Internet. loans to the energy sector to support improved loans that created professional opportunities and equipment, machinery, and construction. availability and access to electricity and the shift to decent work for Filipinos. renewable energy. 2. Focused on financing infrastructure projects such as roads and ports that enable regional and transborder connectivity and boost economic development; and

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Php 42.2 billion - Resilient and Inclusive Infrastructure PhP 13.1 billion - Safe and Affordable Housing

PhP 6.0 billion - Affordable and Php 979.6 million - Upgrade infrastructure and retrofit Sustainable Tranport System industries to make them sustainable

Php 7.5 billion - Increase share of Industry’s Employment PhP 89.3 billion - Inclusive and and GDP Sustainable Urbanization

Php 30.2 billion - Increase Access to Financial Services PhP 110.3 billion PhP 825.0 million - Provide Access to Php 143.7 billion and Markets Safe and Inclusive Green and Public Spaces

Php 62.8 billion - Universal Access to Information and PhP 1.1 billion - Strong National and Communications Technology Regional Development Planning

3. Geared towards assisting companies in adopting Goal 11. Make cities and human HOME LOANS As world consumption increases, it also continues cleaner, more environmentally sound technologies. settlements inclusive, safe, resilient to use natural resources unsustainably. However, and sustainable. The Bank supports Filipino families in acquiring the pandemic has created opportunities to develop Overall, outstanding loans that contribute to these their own homes through customized home loan recovery plans that build a more sustainable future. thrusts amount to Php143.7 billion. The Asia-Pacific region has struggled the most in The continued increase in population challenges packages. Metrobank will always be the Filipino advancing sustainable consumption and production, the way managing and building urban spaces family partner in achieving this dream, whether in with East and Southeast Asia accounting for the are maintained in creating inclusive growth and purchasing a completed home, lot, construction, Goal 10. Reduce inequality within biggest uptick share in the last decade. development of communities. Mobility through personal investment, reimbursement, or in and among countries public transportation and mass housing are just refinancing an existing loan. In 2020, Metrobank In 2020, Metrobank disbursed Php52.2 billion in some of these considerations. disbursed Php 55.4 billion for its home loan portfolio. Remittances are one of the economic growth drivers loans to counteract increased material consumption and support the advancement of efficient for the Philippines as disposable income from In 2020, the Bank disbursed ₱Php 110.3 billion production and the use of waste disposal systems in abroad boost household spending, propping up the to businesses that build and support these Goal 12. Ensure sustainable businesses. country’s economy. Recognizing this contribution, infrastructures, housing, and community spaces, consumption and production Metrobank has committed Php1.2 billion for systems as well as in expanding sustainable tourism in patterns improvement on remittances to facilitate better and the country. This also includes both public and easier transactions between OFWs and their families. private sector initiatives to further improve public transportation. Php 7.9 billion - Sustainable Management and Use of Natural Resources

Php 43.6 billion - Responsible Management of Chemicals and Waste

Reduce Php 691.6 million - Substantially Php52.2 billion Transaction Reduce Waste Generation Costs for Migrant Remittances Php 1.2 billion

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STEWARD OF THE needed, the reverse side of non-confidential papers The Corporate Governance Manual serves as customers’ financial needs to unlock wealth, create ENVIRONMENT is used as draft paper. Documents with sensitive the guidebook for the Bank, its subsidiaries, and opportunities, and facilitate trade and commerce. 301-1, 302-1, 305-1, 305-2 information are shredded. affiliates in the implementation of the corporate The Bank also sustainably supports its customers governance rules and regulations as provided under through a thorough and effective underwriting that While Metrobank endeavors to ensure the highest Environmentally hazardous waste materials such Bangko Sentral ng Pilipinas Circulars (Nos. 749, 757, mitigates undue risks. standards of efficiency in the workplace, the as used printer toner cartridges and batteries are and 969; Memorandum No. 2013 -002) and SEC cause of environmental protection is paramount cautiously handled for appropriate disposal. The Memorandum Circular No. 19, s2016. The Bank equips customers with the knowledge in the corporate mind of Metrobank. It prioritizes Bank is currently seeking to forge agreements with and skills to effectively manage finances and gain the environmental impact of its operations as it suppliers to handle the Bank’s hazardous waste A guide to identify and mitigate risks such as legal financial freedom through financial education consistently strives to reduce its waste production, disposal. In 2020, Metrobank purchased 5,820 or regulatory sanctions, financial loss or loss to initiatives like MoneyBasics and Earnest. energy, paper, water consumption, and its carbon pieces of UPS batteries and 10,620 cartridges of reputation is the Compliance Policy Manual. This footprint as part of its commitment in protecting printer toner. manual provides firm assurance that the Bank and MoneyBasics is a compendium of tips found in social the environment. its employees comply with relevant banking and media sites to help customers develop the habit of corporate laws, regulations, rules, and standards to saving. Earnest is a recently launched website and The Bank shifted to energy efficient LED fixtures promote safe and sound banking operations. mobile app that offers concise and easy-to-understand in its Head Office and key business centers. Office insights for financial knowledge and management, equipment such as air conditioners and printers Integrity The Code of Conduct for Employees embodies the and assists new investors to learn and subscribe to were closely monitored through policies on time- ethical principles and core values that guide the investments that match their needs and lifestyle. restricted use. Conventional air-conditioning units STRONG CORPORATE professional conduct of Metrobank employees. were replaced by more efficient VRF system. These GOVERNANCE Metrobank’s governance structure assigns specific initiatives which began in the head office and key Metrobank is guided by its core values, known as and distinct responsibilities at the Board level and centers have now been rolled out in all branches. In all seasons, in all circumstances, Metrobank PITCH (Passion for Results, Integrity, Teamwork, across all functions to drive its sustainability agenda operates under the philosophy that corporate Customer Service, and Heart for the Community). and provide adequate resource allocation. The With the fixtures installation and policy application, governance is the cornerstone of its business. Through it, Metrobankers fulfill their promise to serve Bank operates on a full disclosure and transparent the Bank aims to lower annual consumption of This firm adherence to governance is paramount customers to the utmost of their abilities. manner in sharing significant impacts and risks, and electricity. In 2020, the electricity consumption of especially at this time when established institutions its progress on sustainable development through the Metrobank in selected facilities and areas reached like Metrobank must assure its customers and Metrobank’s employees fulfill customer expectations annual publication of its Sustainability Report. 13,282,083 kWh. To further improve consumption clients of innovatively customized products and with ethical standards such as Honesty and efficiency and energy savings, the Bank is working services for their present needs. Integrity, Avoidance of Conflict of Interest, Customer Metrobank supports the principles of the UN on incorporating a monitoring system to check its Care, Professional Decorum, Quality Service and Global Compact and exercises its fundamental electricity consumption and adjust usage accordingly. The Bank’s effective corporate governance sustains Operational Efficiency, Teamwork, Preservation of responsibility of upholding human rights, fair Last year, power and electricity consumption integrity, reliability, and stability, the qualities Confidential Information, Maintenance and Protection labor practices, environmental protection, and the monitoring were limited to some bank facilities. needed to be the bank of choice of all segments of Bank Property, Safety and Security, Attendance prevention of corruption. of business – from SMEs to big business – and Punctuality. These values serve as every Water consumption from certain areas of the Bank acknowledging that each one contributes in turning employee’s guidepost in serving the Bank and its The Compliance Office ensures that the Bank reached 80,865 m3 in 2020. Aside from improving the wheels of Philippine economy. customers well. conforms to relevant laws, rules and regulations electricity usage, the Bank intends to progressively affecting its operations, as well as all governance reduce its overall water consumption through related circulars of regulatory agencies. conservation initiatives in the coming years. It is GUIDING MANUALS RESPONSIBLE BUSINESS working on a monitoring system to evaluate water PRACTICES The Bank’s Whistle-Blowing Policy empowers officers, staff, and stakeholders to report matters related to consumption and calibrate accordingly. The Bank created guiding manuals of major policies 102-12 fraud, conflict of interest, and violation of internal and With the rapid shift in digitalization, Metrobank’s and procedures to strengthen its commitment to Metrobank demonstrates a firm commitment regulatory policies, procedures, and controls. consumption of office materials such as paper, professionalism and ethics. transaction slips, and toners among other things to sustainable banking. Aligned with global and have been greatly reduced. Whenever paper is national sustainability goals, Metrobank provides reliable products and services that satisfy its

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Employee Breakdown HR leaders aligned their recruitment strategy with by Age Teamwork Talent Acquisition Department after recruitment skills training was rolled-out that disseminated CARING AND EMPOWERING process changes to HR officers. The interview SUCCESS process became a training program and was given to selected officers and heads of the Organizational Metrobank: Employer of Choice Effectiveness and Learning Division and Human Resources Business Partner. RECRUITMENT Organizations claim that its people are its greatest asset. This claim is refreshingly true in Metrobank One does not have to look far to find amazing talent which recognizes that its employees are the primary TRAINING when one’s organization is already labelled as one 404-2 4,684 5,029 2,531 1,474 stakeholders that sustain its business. Their key 20-29 30-39 40-49 >50 of the best employers and companies to work for in talents are the Bank’s lifeblood; their intellectual and Asia. The best employers usually attract the best The Metrobank Academy is a school of rigor, skills human capital provide the operational efficiency and talent, and it all begins with the recruitment process. development and transformation that sharpens strategic direction to dutifully face both normal and familiar management abilities like critical decision challenging times for the institution. In this time of Employee Breakdown In Metrobank, technology and innovation making, leadership, and adaptability that are the pandemic, Metrobank’s sustainable business by Region transformed the recruitment process to adapt to the required in the field. The programs offered range meant creating more value for the people that limitations posed by the pandemic. Online interviews from the basic to the highly specialized technical provided meaningful banking. The Bank enabled and were conducted using video conference applications. courses. Aside from the Academy, the MBLearn Luzon empowered its employees, equipped them with the Online forms replaced manual ones, while hiring is also available to employees who prefer online 1,873 right competencies to upscale their performance, endorsements were done via email approvals up learning experience at their own pace. Manila and safeguarded their health, well-being, and rights. 9,853 to the level of the Management and Nominations During periods of uncertainty and volatility, investing Committee, including the Board of Directors as in people is the best move to uplift communities. appropriate. METROBANK ACADEMY Visayas 404-1, 404-2 842 The Bank considers its employees as partners in This transformation went beyond recruitment building meaningful banking in communities and operations as it also changed foundational Human consistently looks out for their complete well-being. Resources (HR) goals, recruitment skills, and other Mindanao It will always prioritize employee safety, excellent related HR policies and processes. It standardized 1,150 performance, sense of belongingness and provide the application interviews across all levels, reviewed opportunities for their career development. recruitment tools and policies to adapt to the industry’s best practices, and re-evaluated sourcing Metrobank created an opportunity for growth and As one of Asia’s best employers and companies talent from within. put value to its employees’ professional enrichment to work for in 2019, Metrobank fosters a culture of Employee Breakdown that will help drive the Bank to achieve its goals. The by Gender caring, sharing the values of excellence, integrity, and The Bank’s Talent Acquisition (TA) team was Metrobank Academy was created for this purpose professionalism with its employees who have now reorganized to streamline accountability and and offers a slew of courses developed by both in- taken these to heart. Belonging to the Metrobank maintain its operational excellence. The end-to- house and externally-sourced subject matter experts. family is part of an inclusive work environment where end processing from sourcing to offer acceptance harmony is nurtured in diversity. replaced the sourcing and recruitment operations In 2020, Metrobank’s 13,718 employees expanded section. TA now manages onboarding processes their professional knowledge and value after logging formerly with Employee Records and Plantilla 169,012 training hours or half a day per employee. 4,816 8,902 Management Department (ERPMD) to consolidate Both the Bank and the employees transitioned from all application processes in one department. classroom to online learning solutions in response to the workplace disruption.

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The academy provided additional courses apt to Testimonials from those who CAREER DEVELOPMENT Metrobank launched the Leadership Potential the times. It included topnotch leadership and availed of the MEGA program: Assessment which evaluates leadership markers of simulation exercises that reinforce critical decision- The Bank believes that its annual performance is a Metrobank leader, namely: intellectual capacity, making skills and enable employees to continue interpersonal skills, and intensity, regardless of age, 1. “What a great privilege to dependent, to a large extent, on the exceptional providing excellent service amid turbulent times. ethnic background, or gender. These leadership belong to an institution competence, work ethic, commitment, and dedication markers are the parameters used to hire, appoint, that never falters to of its employees to make the organization achieve The Bank also created MBLearn, a learning platform promote, and develop Metrobank leaders who are be supportive of its its goals. As the Bank adjusted working conditions to on demand that allowed employees to take courses charged to challenge the status quo and bring the Bank employees’ pursuit of adapt to the pandemic, it revisited its performance online, based on their work schedules. MBLearn to the next level of performance. professional enrichment! management framework and processes to better provided modules on data security, business With the help of MEGA, monitor productivity and optimize employee continuity planning, and cash management. We continue to identify and develop high-performing I was able to fulfill my performance. It launched an enhanced performance It likewise offered courses that addressed the and high-potential talent through Talent Reviews. As goal of taking up further management program based on the principles of employees’ well-being such as COVID-19 Safety we pursue our goal of maintaining a steady supply of studies. Aside from the financial support that meritocracy, differentiation, and fairness. This allowed Protocols and Social Media: Staying Secure in a credible successors, we continue to track our talents’ Metrobank has so generously given me, I also managers to recognize top performers and support Connected World. career trajectory to ensure that they will unleash their appreciate how my heads were so encouraging. those who can become better. full potential in Metrobank. This environment of genuine support, more so in times of difficulty, makes the hard work worthwhile Performance assessments are done annually and EDUCATIONAL ASSISTANCE and the relationships more meaningful.” provide the means for senior officers to provide 404-2 feedback to their team members’ performance. This -Patricia Moira Membrebe, would also be the basis for career advancement as the The value that Metrobank gives to continuous Investment Analyst, Bank considers qualified internal employees as priority Financial Markets Sector education does not end among its employees but candidates for promotion. extends to employees’ dependents. The Bank believes that education increases the worth and 2. “I would like to express capacity of its employees, their families and helps my sincere appreciation form better communities. for your support with regards to your MEGA or Numbers of Scholars The Bank created the Metrobank Employees Metrobank Employees per Educational Assistance Program Graduate Assistance Program (MEGA) to finance Graduate Assistance qualified employees who wish to complete their Program. Although MBA degrees. The program includes a study leave to 250 we are in the middle allow employee-scholars to finish their studies. of the pandemic, your continuous generosity and kindness for the 200 The Bank also put up the Metrobank Educational employees makes a big difference especially in Assistance for Dependents of Employees Program achieving their educational goals. I feel so honored 150 (MEADE) to financially support qualified and and blessed to be part of the program. It was a deserving employees’ children who wish to complete pleasure working with Metrobank through the 100 their secondary or tertiary education. years and gave me this wonderful opportunity

and in fact, completing this MBA degree would 50

really help me to take another step towards my Nuimber of Availers career path in the future. Thank you again for 0 the generous contribution which made my MBA 2018 2019 2020 degree possible.” MBA MEGA MEADE-COLLEGE MEADE-HS -Jay Marc Gaño, Facilities Administration Assistant, Financial & Control Sector

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EMPLOYEE WELFARE Recovery measures deal with case management and Maxicare Teleconsult, NCMH Crisis Hotline, CASA junior officers as well as rank and file 102-41 those who tested positive for COVID including close Telecounseling, and ActiveOne MH Teleconsultation 4. Bank-sponsored shuttle service contacts, RTK and PCR testing, implementing the are available to its employees 24 hours a day. It also 5. Free face mask and face shield for each Metrobank recognizes employees’ rights to freedom travel policy, and the Safe Together program which implemented the MB Connect Reach Out service employee of association and collective bargaining. The Bank offer discounted COVID care support to employees which facilitates a compassionate and supportive 6. Use of emergency leave for COVID-related has one labor union and 95% of its rank-and-file and their dependents. platform among Metrobankers who are overwhelmed absences. employees are covered by the collective bargaining by the current crisis. Online webinar sessions The Bank’s added service and initiative in addressing agreement. The travel policy encourages employees to refer to about mental health were provided that dealt with employee mobility is the Drive Car Loan benefit. It is the travel decision guide before travelling, requiring mental health in the workplace, the work from home a separate and one-time special car loan program for Collective Bargaining employees to declare all travels to their immediate phenomenon, caring for physical health during employees who report for work on-site. Through the 2018 2019 2020 Agreement supervisor, and observe necessary protocols upon the pandemic, and embracing the Sleep, Eat right, program, employees will not only have new vehicles their return. Exercise, and De-stress (SEED) lifestyle. Employees that solve transportation concerns, but it will also Total Union Members 5,923 6,111 6,692 also have Mindful Moments, a free online group encourage them to reach out to co-employees and Total Rank & File 6,869 6,869 7,017 meditation and are regularly updated on mental set car-pools which builds relationships and even Employees HEALTH AND WELLBEING health concerns through Wellness Wednesdays. helps the environment. 403-6, 403-10 Percentage of total Topics shared since April 2020 include how to permanent employees 86% 89% 95% overcome burnout, the mental health benefits of covered by collective bargaining agreements staying informed, box breathing in reducing stress EMPLOYEE RETENTION and anxiety, balanced well-being and productivity, and 401-1 mental health psychosocial support, among others. WORKPLACE SAFETY AND Metrobank continues to manage a declining rate of SECURITY attrition, dropping further to 7.0% in 2020. The Bank 403-3 COMPENSATION AND BENEFITS constantly finds opportunities to retain its talent. 401-2 The Bank values work-life balance and has instituted preventive controls and recovery measures in Metrobank’s compensation packages are at par with response to the current worldwide health solution. the industry’s. Its employees receive benefits that

One of these measures is putting in place the work- exceed local labor laws’ minimum standards. 10% from-home arrangement. Attrition rate Metrobank’s 360 COVID Care is an institution- With the pandemic, employees working onsite 9 Preventive controls have two components: wide health and wellness program in response to received additional support to continue providing Engineering and Administrative controls. The former the pandemic that provides immediate medical, excellent and meaningful service to clients. These 8 includes IT-enabled meetings, online documentation management, and both physical and mental health include: & approvals, distancing in the workplace, frequent support to the organization. 7 Voluntary Attrition rate workplace disinfection, visual cues and reminders, The Bank partnered with ActiveOne Telemed, a team 1. Allowances such as Enhanced Community and the MB COVID Care Bot that sends reminders, of medical experts who help facilitate and assist Quarantine (ECQ) Meal & Transportation 6 surveys, and quizzes thru work chat. These are all employees who undergo Inbound Consultation, allowance and overtime pay for shortened work set-up to ensure continuous work efficiency. The Inbound Exposure, Outbound Monitoring, and hours in ECQ and Modified Enhanced Community 5 2018 2019 2020 latter consists of safety marshals, who make sure Return to Work procedures. Quarantine (MECQ) areas employees adhere to COVID safety and protection 2. Payment grace period on employee loans protocols in the workplace; a rotating workforce, The Bank supports increased physical and mental 3. Provident Fund car loan special package for health risk assessments (MARP), daily onsite resilience and makes sure mental health services like screening (HDF); E-learnings, and online reminders.

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COMMUNITY ENGAGEMENT a comprehensive manual that also serves as its guide. The Bank considers it the collective and shared responsibility of every Metrobanker to follow The sense of service through volunteerism consumer protection standards. and involvement in socio-civic initiatives that complements dedicated professionalism is another pillar that defines a Metrobanker. This is the Heart for CONSUMER PROTECTION the community and is embodied through the Purple STANDARDS Hearts Club, named after the oldest Unites States military award that recognizes valor in service. Commitment to Metrobank’s Customer Protection Standards are Even during the pandemic, several calamities struck Customer Service inherent to the Bank’s corporate culture and are many parts of the country and the Bank willingly always observed in its dealings with its customers. responded through these various programs: Metrobank’s corporate mantra has always been providing its customers with the best customer • Metrobank sees to it that its customers have 1. Bangon Luzon – a fundraising program for experience through meaningful banking. The Bank a reasonable and holistic understanding of all Metrobankers affected by Typhoon Rolly and delights in anticipating customer needs and offering products and services it may choose to avail. Ulysses solutions for these. More than a business strategy, Hence, the Bank provides full disclosure and 2. Metro Blood Bank – a database of blood donors it is the Metrobank’s foundation for a sustainable transparency in empowering its customers to in the Bank relationship with its customers which it steadfastly make informed financial decisions. Customers 3. Metro Good Wheels – an employee shuttle MEANINGFUL SERVICE TO nurtures through the years. are given ready access to information that service that offers alternative transportation to EMPLOYEES accurately represent the nature and structure of employees while supporting school bus operators This enviable relationship between the Bank and its the product or service, its terms, and conditions, who have been affected by the pandemic. The In appreciation for the Bank’s constant concern in customers was highlighted during the challenging as well as risks and fundamental benefits. employee shuttle service for a cause is headed by safeguarding their employees’ well-being in 2020, year of the pandemic. The Bank became a front liner, the Alcanzare School Bus Service. Metrobankers shared their testimonials: a much-needed solace to its clients who needed • The Bank’s strong and reliable IT system, 4. MBFI Cash Assistance given to agency personnel. assurance that the Bank would be with them through with well-defined protocols, secure database, #ThankYouMetrobankers Dec 21, 2020 thick or thin. and periodically re-validated procedures to protect the confidentiality, security, accuracy, 1. Thank you, Metrobankers Video from the Heads More than availability and presence, the Bank made and integrity of personal information, assures 2. Taal, Metrobankers for Metrobankers: a fund- sure that it implemented safeguards to protect customers that their financial transactions and raising initiative for employees affected by the the safety and health of its customers and bank relevant personal information they disclosed, are eruption in January employees. The Bank kept its promise of “being kept confidential. 3. RTK testing: a free rapid COVID testing for there when needed most.” employees from May to October • The Bank, through the Fraud Management 4. Metro Good Wheels: Alternative Employee Division, is using several tools for fraud Transport + CSR for School Bus Drivers & PROTECTING CUSTOMERS’ DATA prevention and mitigation. Operators starting October 19 418-1 5. Mental Health: Mindful Moments and webinars • Metrobank always demonstrates the principle on CVOD-19 awareness Metrobank remains dedicated to nurturing and of fair treatment towards its customers. In 6. Health &Safety protocols: Strict social distancing strengthening its relationship with its retail and safeguarding the best interests of its customers, rules, regular disinfection routines and Health corporate clients and constantly prioritizes their best the Bank establishes necessary resources, Declaration Form. interests. The Bank sets a culture that adheres to the procedures, internal monitoring, and control BSP’s customer protection standards and complies mechanisms. These include general rules, such with its Consumer Protection Policy Manual (CPPM), as those addressing ethical staff behavior,

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acceptable selling practices as well as regulating ACTIVELY SEEKING OUT • Mobile ATMs were deployed weekly in various Metrobank is committed to listen to customers’ products and practices where customers may CUSTOMER CONCERNS barangays in Metro Manila. These machines sentiments, identify opportunities, address their be offered services that are inappropriate for enable customers to continue withdrawing cash, pain points, and improve their overall experience their circumstances. checking their account balances, paying for with the Bank. While the pandemic has scaled Metrobank provides its customers an accessible, services and bills, transferring funds between back the Voice of the Customer initiatives, the affordable, independent, fair, accountable, timely, Metrobank accounts, or buying prepaid load, Bank continued with the usual customer feedback and efficient means in resolving their complaints on CONSUMER EDUCATION among others within the safety of their locality. channels, and expanded ways of collecting their financial transactions. responses: Metrobank regularly educates and informs 2. Customer Incident Management System The Bank promptly addresses clients’ complaints customers through its website and social media – (CIMS) –This centralized system is where • Net Promoter Score (NPS) via online survey through the mechanisms for complaint handling from tips on how to save and invest their money, complaints are logged. As the single-source data • Branch Customer Satisfaction (CSAT) via online and redress. to campaigns that instruct how to protect their for complaints analytics, it tracks the status of survey personal information and personal accounts from complaints until the time they are resolved and • Branch Customer Satisfaction via QR code at 1. Customer Incident Management Policy being accessed by unauthorized groups. closed. select branches to obtain real-time feedback (CIMP) – This standardizes the Bank’s from customers. complaints management and includes a In 2020, the Bank optimized its online platforms to Business units in the Bank are identified to turnaround time for complaint investigation, regularly provide the latest information about its investigate and resolve the complaints within a Meanwhile, the 2020 institutional CSAT score of resolution, and response to customer. products and services, as well as established health defined turn-around time, provide feedback and Metrobank is 87%. The Bank continues to improve protocols, among others for a more convenient resolution to customers with regards to their its products and services to meet the needs of During this health crisis, Metrobank offered banking experience for its customers. These include complaints, and implement and monitor actions its evolving clients and providing them with a meaningful assistance to its customers across the following: to avoid recurrence and improve customer meaningful banking experience. various banking touchpoints so they can focus on experience. their safety and their loved ones’ welfare. • Daily list of open branches and modified branch • Most branches remained open Mondays through hours The different investigating units and Case Fridays, albeit with reduced banking hours, to • Guidelines on the suspension of collection of Car Management Department are given adequate serve and respond to concerns or requests Heart for & Home loan payments and the Skip-payment for resources to manage complaints efficiently and for assistance. Safety protocols were put in Metrobank credit cards effectively, including training to ensure that they Community place for open branches for the protection of • Fraud Awareness campaign to educate clients have appropriate experience, knowledge, and both customers and frontline personnel, and how to be vigilant, spotting fraudulent SMS, expertise. in compliance with national and local area HEART FOR SUSTAINABLE e-mails and calls and to avoid opening links guidelines. embedded in e-mails. The campaign helps clients Metrobank identifies root causes of these complaints, COMMUNITY 413-1 deal with these situations and prevents them from provides appropriate resolutions to address these, • The Bank’s Contact Center continued to becoming victims of all types of fraud. and monitors its effectiveness to improve service operate from Monday to Sunday to address • Convenience and security of using online and recovery. The Customer Engagement Group is METROBANK FOUNDATION, INC. concerns, requests, and queries from customers. mobile banking to continuously monitor funds responsible for reporting the complaints metrics to Additional personnel for voice operations were The heart that beats for those who are marginalized, and make banking transactions from the safety Senior Management, as well as customer experience deployed to handle increased volume of calls. and underserved is the Metrobank Foundation, of their homes, initiatives implemented and their impact to customers the Bank’s philanthropic arm. It is at the core • Money basics during challenging financial times. and to the business of the Bank. • All necessary information that conveniently help of sustaining communities through its special customers during the pandemic is available in programs and long-term investments that share and For more information on Metrobank’s Privacy Policy, In 2020, total complaints received by the Bank the Bank’s website and in social media. These increase the value of social capital in the Philippines, please visit: https://metrobank.com.ph/privacy-policy dropped by 3% compared with 2019. keep customers informed and connected without and was recognized as “Philanthropic Foundation them visiting the branch or getting in touch with The Bank maintained a high-resolution rate that of the Year” last 2020 by American Association of the Contact Center. reflects the prompt process by which complaints are the Philippines (AAP). The Foundation recognizes investigated, addressed, and resolved within a short excellence in the fields of arts, education, health, time frame. military, and civil authorities, and for decades, has

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honored modern-day heroes from these fields by delivering quality and safe, patient-centered PATIENT SERVICES who have shown exemplary service for people, wellness. MDH carries on in attaining service communities, and the nation. The Foundation is also excellence for all its patients across generations 1. Aesthetics Center the country’s partner in times of natural disasters due to its high health standards. The recent health 2. Laboratory Services and calamities, providing immediate financial and crisis expedited the construction of modern facilities 3. Cardiac Rehabilitation logistical support whenever needed. These heartfelt like the new Molecular Pathology Laboratory with 4. Linear Accelerator (LINAC) efforts have endeared the Foundation to many, the support of GTFI, and to have accessible testing 5. Cardiovascular Catheterization Laboratory affirming its mission to be of service to the Filipino centers for the hospital that serve the city of Manila 6. Magnetic Resonance Imaging (MRI) people, communities, and the nation and the national capital region. New equipment, 7. Cardiovascular Center facility upgrades, renovations, and expansions of 8. Mammogram The Foundation’s enduring support for education select areas and units were also done in response to 9. Child Neurosciences Center stems from its flourishing collaboration with like- the growing needs of its patients. 10. Marine Medical Services minded institutions that help the conglomerate 11. Clinical Nutrition Management Services (CNMS) contribute to the United Nation’s SDG 17 on building For more details about Metrobank Foundation’s 12. Neurophysiology Services partnerships to achieve community goals. MBFI’s activities and advocacies it supports, kindly refer to 13. Computerized Tomography (CT Scan) alliance with GT Foundation (GTFI) and Pacific the Metrobank Foundation Annual Report. 14. Nuclear Medicine Paint has produced 113 architectural scholars, 103 15. Coronary Care Unit / Telemetry Unit graduates, and gained the support of more schools 16. Oncology Unit in 2020. The Foundation also continues to recognize 2020 NEW MACHINES 17. Corporate Health Services esteemed educators and leads in celebrating National 18. Pain Management Teachers’ Month together with the Department of Videolaryngoscope System 19. Dietary Department Education (DepEd). Both the Foundation and DepEd HELPING HANDS DURING Molecular Laboratory equipment: 20. Pharmacy capitalized on a digital platform instead of the annual COVID-19 • Biosafety Cabinet 21. Emergency Medicine Metrobank-MTAP-DepEd Math Challenge (MMC) • Ultra Low Freezer -80 0C 22. Pulmonary Physiology and Sleep Lab through the MMC Learn@Home, pursuing math drills, At the height of the health crisis, MBFI’s rapid • Laminar Flow 23. Endoscopy Unit tips, math problem solving techniques, and success mitigating action together with GTFI supported • Freezer -20 0C 24. Radiologic Imaging Center stories of MMC champions. MBFI’s Professional not only the conglomerate’s employees and their • Dry Bath 25. Executive Health Check Chair program in partnership with the Ateneo De families but large communities and front liners • Combined Refrigerator & Freezer 26. Rehabilitation Medicine Manila University published “Perspectives on Good affected by the impact of the pandemic. The • Real-Time PCR Detection System 27. Hearing, Dizziness, Voice and ORL Endoscopy Governance: Metrobank Foundation Professorial massive support that reached Php 321.5 million • Automated Extractor Center Chair Lectures at the Ateneo Professional Schools”, provided short-term relief and recovery assistance • Refrigerated Microcentrifuge 28. Sports Medicine a compilation of 11 lectures delivered by exemplary to affected sectors, created a mid-term emergency • Fully Automated Autoclave 29. Heart Care Service models of leadership and professionalism. response plan through strategic partnerships • Mini Biosafety Cabinet 30. Ultrasound with the government and other stakeholders in • Microplate Centrifuge w/ 3 rotors 31. Hemodialysis communities and directly supported more than • PCR Cabinet 32. Vision Center HELPING HANDS DURING 522,000 beneficiaries of CSR initiatives. • Biosafety Cabinet 33. Intensive Care Unit (ICU) CALAMITIES 34. Wellness Hub 35. Molecular Pathology Laboratory Metrobank Foundation and GTFI’s immediate HEALTH NEW AND BIGGER FACILITIES 36. Wound Care Center response and mobilization through “Helping Hands” during natural calamities is unparalleled. In 2020, WORLD CLASS HEALTHCARE • Molecular Pathology Laboratory Php 8.9 million was distributed to more than 15,000 • Catheterization Laboratory displaced families from the Taal Volcano eruption, As the principal owner of the Manila Doctors • Hemodialysis Unit and those affected by typhoons Rolly and Ulysses. Hospital (MDH), Metrobank Foundation is privileged • ICU Food items, hygiene kits, sleeping mats and blankets to offer world-class care to the sick at this time • Isolation Unit were also provided.

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Food Relief

PhP 100M PHP 321M For Project Ugnayan for 1M families MEANINGFUL ASSISTANCE PhP 8M Food packs for marginalized communities

Frontliners Research Medical Support

PhP 70M PhP 5M PhP 16M PhP 61M Supplies for Hospitals Research and development Support for supplies For molecular laboratories of Philippine for testing kits for a hospital or center Red Cross, T3/Ayala Consortium, DOH-Southern Med Center and Ateneo de Davao University, and Manila Doctors Hospital

Additional Relief Efforts PhP 2M PhP 10M For Uniformed Frontlines Project ARK (Antibody Rapid test Kits) for communities

PhP 49M For additional relief efforts

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SUMMARY OF FINANCIAL STATEMENTS (In Million Pesos, Except Per Share Amounts and Foreign Exchange Rates)

At Year End Consolidated Parent 2020 2019 2020 2019 Total Assets 2,455,163 2,450,813 2,153,999 2,087,435 Loans and Receivables – Net 1,252,929 1,483,568 1,048,742 1,177,101 Investment Securities 670,289 516,015 618,531 454,870 Others 531,945 451,230 486,726 455,464

Total Liabilities 2,121,988 2,132,322 1,829,110 1,767,443 Deposit Liabilities 1,797,215 1,714,144 1,582,911 1,500,292 Demand 515,378 411,873 467,545 372,303 Savings 795,979 665,634 755,713 630,946 Time 450,103 592,897 332,323 461,713 Our 2020 story may have taken an Long-Term Negotiable Certificates of Deposit 35,755 43,740 27,330 35,330 Others 324,773 418,178 246,199 267,151

extraordinary turn. But no crisis can ever break Total Equity 333,175 318,491 324,889 319,992 Attributable to: our foundations of excellence, resilience and malasakit. Equity Holders of the Parent Company 324,204 309,554 324,889 319,992 Non-Controlling Interest 8,971 8,937 0 0 That’s meaningful banking in the new normal. Book Value Per Share (BVPS) 72.10 68.84 72.26 71.17

Foreign Exchange (USD:Php) BAP Closing Rate 48.02 50.64 BAP Weighted Average Rate 49.63 51.79 (BAP: Bankers Association of the Philippines)

For the Year Consolidated Parent 2020 2019 2020 2019 Net Interest Income 86,107 76,997 68,118 49,921 Interest Income 107,787 116,183 83,287 76,233 Interest Expense 21,680 39,186 15,169 26,312

Non-interest Income 35,793 29,922 30,562 23,692 Trading and Securities Gain (Loss) - Net 14,743 5,472 13,108 4,352 Service Charges, Fees and Commissions 11,703 14,266 8,991 5,145 Foreign Exchange Gain (Loss) - Net 4,409 3,798 4,320 3,521 Leasing 2,007 2,122 200 210 Income from Trust Operations 1,444 1,241 1,401 1,204 Other Non-interest Income1 1,487 3,023 2,542 9,260

Total Operating Income 121,900 106,919 98,680 73,613

Total Operating Expenses 100,880 67,984 77,939 38,949 Provision for Credit and Impairment Losses 40,760 10,078 32,745 1,644 Other Operating Expenses 60,120 57,906 45,194 37,305

Provision for Income Tax 7,046 10,061 6,910 6,609

Net Income 13,974 28,874 13,831 28,055 Attributable to: Equity Holders of the Parent Company 13,831 28,055 Non-controlling Interest 143 819

Basic/Diluted Earnings Per Share (EPS) 3.08 6.24 Attributable to Equity Holders of the Parent Company 1 - Includes share in net income of subsidiaries, associates and a joint venture

For the Year Consolidated Parent 2020 2019 2020 2019 Net Interest Margin 4.0% 3.8% 3.8% 3.1% Return on Average Equity 4.4% 9.5% 4.3% 9.2% Return on Average Assets 0.6% 1.2% 0.7% 1.4% Non-performing Loans Ratio 2.4% 1.3% 1.7% 0.9%

Capital Adequacy Ratio 20.2% 17.5% 19.5% 15.5% Tier 1 Capital 19.3% 16.2% 18.6% 14.1% Common Equity Tier 1 19.3% 16.2% 18.6% 14.1%

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BOARD OF DIRECTORS

1. Arthur Ty 8. Dr. Jesli A. Lapus Chairman Independent Director Director since April 2002 Director since August 2010 54 years old 71 years old Chairman of GT Capital Holdings, Inc.* Independent Director, STI Education Systems Vice Chairman, Philippine Savings Bank* Holdings Inc.* Vice Chairman, AXA Philippines Chairman, STI Education Services Group Inc. Chairman, Metropolitan Bank (China) Ltd. Chairman – Center for Tourism, Asian Institute Advisor, First Metro Investment Corp. of Management MBA, Columbia University, New York Independent Director, Philippine Life Financial Assurance Corporation 2. Francisco C. Sebastian Chairman, LSERV Corporation Former Secretary, Department of Trade and Vice Chairman 1 2 3 4 Director since April 2002 Industry 66 years old Former Secretary, Department of Education Vice Chairman, GT Capital Holdings, Inc.* Former President/CEO, Land Bank of Director, Metro Pacific Investments Corporation* the Philippines Chairman, First Metro Investment Corp. MBM, Asian Institute of Management Director, Federal Land, Inc. AB Economics, Ateneo de Manila 9. Francisco F. Del Rosario, Jr. Independent Director 3. Fabian S. Dee Director since April 2013 President/Director 73 years old President/Director since April 2012 (also served as Director, DMCI Homes, Inc. Director from September 2007 to March 2011) Chairman, Multi-sectoral Governance Council of 58 years old the Armed Forces of the Philippines Director, Bankers Association of the Philippines Chairman, Social Justice Committee of the Trustee, Metrobank Foundation, Inc. Management Association of the Philippines Former Chairman, Metrobank Card Corporation Independent Diredtor, Omnipay, Inc. Former Chairman, Metro Remittance Singapore Vice Chairman, Asia-Pacific Network, Holdings, Inc. PTE Ltd. Strategic Advisor, GMR Infrastructure (Singapore) Former Chairman, LGU Guarantee Corporation Chairman, Institute for Solidarity in Asia Former Chairman, SMBC Metro Investment Senior Executive Director, PWC Isla Lipana Corporation Former Cabinet Member, Habitat for Humanity Former Director, Bancnet Inc Philippines BS Management Engineering, Ateneo de Manila Former President, Management Association of the Philippines Former Vice Chairman/President/CEO, 4. Alfred V. Ty Development Bank of the Philippines Director Former Undersecretary for Finance, Department Director since September 2015 of National Defense 53 years old MBM, Asian Institute of Management Vice Chairman, GT Capital Holdings, Inc.* Chairman, Toyota Motor Philippines Corporation Chairman, Federal Land, Inc. 10. Edgar O. Chua Vice Chairman, Metro Pacific Investments Corporation* Independent Director Chairman, Lexus Manila, Inc. Director since April 2017 BS Business Administration, University of 64 years old Southern California Independent Director, Integrated Micro-electronics, Inc. * Independent Director, Energy Development 5. Solomon S. Cua Corporation* Director Trustee, Pilipinas Shell Foundation, Inc. Director since April 2018 President, De La Salle Philippines 5 6 7 8 65 years old Chairman, Makati Business Club Vice Chairman/Director, Philippine Racing Club, Inc.* President and CEO, Cavitex Holdings Inc. Chairman, Philippine AXA Life, Inc. BS Chemical Engineering, De La Salle University 9 10 11 12 Chairman, Charter Ping-An Insurance Corp. President & Director, SC & SSC Holdings, Inc. Director, Grand Titan Capital Holdings, Inc. 11. Angelica H. Lavares Former Undersecretary of The Department of Finance Independent Director Masters of Laws, London School of Economics Director since April 2019 & Political Science 67 years old Teaching Fellow, Institute of Corporate Directors Independent Director, Prulife UK 6. Edmund A. Go Consultant, Bank of Commerce Director Former Executive Vice President, Bank of Director since May 2007 Commerce 70 years old Former Chief Legal Counsel and Compliance Advisor, Philippine Savings Bank* Officer, Metrobank Director for Investments, Ateneo de Manila University Bachelor of Laws, University of the Philippines Director, Metropolitan Bank (China) Ltd. Investment Consultant, St. Peter Life Group MBM, Asian Institute of Management 12. Philip G. Soliven Independent Director Director since May 2020 7. Vicente R. Cuna, Jr. 60 years old Director Chairman Emeritus/Senior Advisor, Cargill Phils. Inc Director since April 2014 Director & Treasurer, American Chamber of 59 years old Commerce of the Philippines Head, Enterprise Services Sector, Metrobank Director, Scorbin Inc. Chairman, ORIX Metro Leasing and Finance Corporation Vice Chairman & Director, Multico Prime Power Vice Chairman, Philippine Savings Bank* Director, The Rotary Club of Makati Former President, Philippine Savings Bank* Director, Impact Environmental Solutions Former Director, First Metro Investment Corporation Member, Makati Business Club AB Economics, De la Salle University Member, Management Association of the Philippines BS Business Management, Ateneo de Manila Note: All directors are Filipinos * Listed on PSE

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SENIOR ADVISERS ADVISERS

Hon. Fidel V. Ramos Hon. Artemio V. Panganiban Dr. David K.P. Li Senior Adviser Senior Adviser Senior Adviser Former President, Republic of the Retired Chief Justice, Supreme Court Chairman/CEO, Bank of East Asia, Ltd. Philippines of the Philippines Hong Kong Chairman, Board of Advisers, Metrobank Foundation, Inc.

Mary V. Ty David O. Chua Adviser Adviser Adviser, GT Capital Holdings, Inc. President, Cathay Pacific Steel Corp. Adviser, Federal Land, Inc. Vice Chairman, University of the East Adviser, Manila Medical Services, Inc. Trustee, University of the East – Trustee, Metrobank Foundation, Inc. Ramon Magsaysay Memorial Medical Center, Inc. Vice President, Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. Former Director, Philippine Stock Exchange

Gabriel Chua Carlos S. Chan James Go Senior Adviser Senior Adviser Senior Adviser President, Solid State Multi Chairman, Liwayway Marketing Corp. Adviser, Metrobank Foundation, Inc. Products Corp. Chairman, Chan C. Bros, Inc. Chairman, Liwayway (China) Co., Ltd. Special Envoy of the President for the People’s Republic of China

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Senior Executive Vice Presidents 1st row, 1st & 2nd photos Joshua E. Naing Fernand Antonio A. Tansingco

Executive Vice Presidents 1st row, 3rd & 4th photos Aniceto M. Sobrepeña Mary Mylene A. Caparas

2nd row, from left to right: Paul Robert Y. Murga Corazon Ma. Therese B. Nepomuceno Richard Benedict S. So

Senior Vice Presidents 2nd row, 4th photo Anthony Paul C. Yap

3rd row, from left to right: Ramon Jaime Vivencio L. Del Rosario Angelica S. Reyes Homer Gerrard L. Ortega Lita S. Tan

4th row, from left to right: Jette C. Gamboa Digs A. Dimagiba David Peter B. Holmes Maria Lizette B. Perez

5th row, from left to right: Leandro Antonio G. Santillan Melizza Doris L. Guiao Emmeline D. Go Frances Gail E. Male

Not in photo: Executive Vice Presidents Maritess B. Antonio Vivian L. Tiu

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Senior Vice Presidents

1st row, from left to right: Antonio R. Ocampo Jr. Christine W. Yang Jocelyn L. Bata Susan L. Niere

2nd row, from left to right: Louie I. Evangelista Anna Therese Rita D. Cuenco Ricardo Leon N. Pedrosa Ricardo D. Peña

3rd row, from left to right: David S. Ong Nelson G. See Stephen S. See Mary Rose S. Tiamson

4th row, from left to right: Harrison C. Gue Hiroko M. Castro Rommel Enrico C. Dionisio Pocholo V. Dela Peña

5th row, from left to right: Cesar P. Nicolasora Jr. Jose Antonio O. Vasco Renato K. De Borja Jr. Bernardino D. Ramos

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SENIOR OFFICERS LIST

First Vice President Xu, May Sherri M. Guino, Frances Lea C. Villegas, Cynthia G. Calumpang, Benilda G. Gabriel, Eloisa A. Mariano, Evelyn D. Rosario, Bernadette S. Abes, Kathryn Francis B. Yuseco, Noel Peter Z. Herradura, Renalita L. Yabut, Mark Dexter D. Candelaria, Liv Ivy Lane P. Galang, James Royce C. Mariano, Marian Louise F. Rubiano, Susanna L. Ajos, Jay Nazarene Christene A. Zamora, Ruben L. Icban, Ma. Theresa V. Yee, Mary Ruth Frances M. Canicula, Jazzle R. Garcia, Nerisa U. Mariano, Ernest Michael, Jr. L. Saldua, Josephine A. Alcantara, Allen D. Lagman, Andro Jose M. Ypil, Charito N. Canlas, Clair Aquin Ned P. Garcia, Romeo, Jr. M. Marquez, Nadja Cecilia R. Salenga, Michele B. Andaya, Rowel S. Legaspi, Elizabeth D. Yu, Zenaida R. Canlas, Christian M. Geronimo, Isidro A. Martin, Rachelle S. Salonga, Enmar S. Antonio, Leilani Anacleta F. Vice President Legaspi, Elizabeth B. Zulueta, Sharon W. Carag, Placido A. Geronimo, Alizzabeth O. Medina, Augusto, Jr. G. Salvador, Maria Virna A. Arjonillo, Carolina K. Abarintos, Edda Rea C. Leonardo, Carilla S. Cardillo, Hernando S. Go, Andrew Michael G. Mendiola, Ernesto, Jr. E. Samonte, Helen A. Asuncion, Ma. Agnes Celestina A. Abueg, Alona A. Leung, Ramir M. Carpio, Daryl L. Goguanco, Ronald P. Mendoza, Alexander P. Sanchez, Irish G. Barlis, Armand B. Alcantara, Jose Miguel Paolo F. Liao, Ma. Theresa E. Casalo, Janice Anne E. Gonzales, Iris B. Mendoza, Juan Carlo N. Sandil, Ricardo L. Burgos, Reynaldo C. Alcid, Myleen D. Lim, William C. Senior Assistant Vice President Castillo, Teodoro Gregorio, Arleen Gay L. Meneses, Katherine S. Santiago, Maricris M. Cabral, Emmanuel R. Alejandrino, Randy A. Lim, Walter C. Cobankiat, Reuben Rinaldi Y. Castro, Miriniza C. Grey, Bianca Denise J. Mercado, Maureen S. Santos, Gail Joseph S. Capili, Judy Grace D. Alincastre, Celso Manuel, Jr. G. Liwanag, Fina Victoria S. De Pano, Emma R. Casyao, Rizalito H. Guanzo, Eduardo Miguel, Jr. H. Mercado, Nilo Felix, Jr. G. Santos, Ma. Milagros Laureta D. Capulong, Jovencio R. Amiscaray, Gina Rowena V. Lo, Christy T. Eusebio, Ivan Drieter D. Cayanan, Alvin T. Guntayon, Florencio B. Mesina, Neil Michael A. Santos, Krislyn H. Centena, Mia S. Año, Anna Lissa C. Lomigo, Happy Mar S. Gabriel, Michael R. Celo, Jessica C. Haveria, Melchor F. Mir, Marjorie N. Santos, Saul, III A. Chan, Marie Chorie Candice R. Antiporda, Susan Q. Macallan, Anne Kristen Y. Gamad, Rafael, Jr. B. Chan, Policarpio S. Heceta, Julita Corazon M. Muñoz, Antonio T. Sayo, Leomel C. Chua, Cristina C. Antonio, Rodolfo E. Mangaban, Neliza B. Javellana, Wellington, Jr. M. Chin, Bituin V. Henson, Juan Marco S. Narciso, Paolo Angelo Q. Serote, Kharen S. Chua, Claudine U. Anunciacion, Dante P. Matriano, Don Jerico B. Javier, Shahlena G. Chio, Abigael Lily C. Hernandez, Maria Zarah C. Naredo, Nerissa Q. Serrano, Alvin T. De Los Santos, Francis Andre Z. Arellano, Hector B. Mayor, Maria Ana S. Ko, John Oliver T. Chu, Cherry Joy S. Hernandez, Don Carlo P. Navarrete, Nikki Rose A. Serrato, Juliet C. De Vera, Rosanna F. Arenas, Celina A. Mendez, Diana Lou N. Navarrete, Albert Roy D. Chua, Alvin U. Herrera, Jose Emmanuel K. Navarro, Don Manolo M. Sierra, Diana O. Fajardo, Ma. Theresa A. Baduria, Jose Julian, Jr. E. Millonado, Maida Lourdes E. Romaraog, Janylou M. Chua, Cybin A. Ibarra, Peace E. Nazareno, Algen F. Sinay, Roseminia R. Fragante, Leo R. Balagtas, Dennis Edmund E. Monsod, Eunice Zuleika N. Ventura, Winnie Vic G. Chua, Helen C. Ico, Ronaldo D. Ng, Melanie A. Sinay, Jeanilyn A. Gan, Grace P. Balatbat, Armelyn G. Mozo, Michelle Anne G. Zablan, Elvira S. Chuaunsu, Merriam Josephine Ignacio, Roy B. Ngo, Ma. Victoria G. Singanon, Sophia Monica G. Garcia, Jose Ramon C. Baltazar, Airah S. Ong, Maria Rita Purificacion V. Socorro M. Imperial, Ryan O. Nicdao, Ramon P. Sioson, Michelle Odette D. Jimenez, Pamela I. Bandali, Al-Jalil B. Oquendo, Rommel T. Cledera, Jean L. Isip, Jose Mari V. Nieto, Anabel N. Siy, Vida Jordana C. Koa, Alicia K. Bandong, Angela Juvy C. Panlilio-Amoranto, Janella Marie R. Concepcion, Paul John T. Jacinto, Myruh U. Ohkawa, Kazunori A. Solano, Poala Nicola F. Leh, Paul Terence T. Bautista, Ildemarc C. Pantangco, Ferdinand P. Assistant Vice President Concepcion, Ivy Lovelle L. Jardeleza, Roderick T. Oliquino, Senen M. Sowy, Maria Theresa Z. Lim, Mary Joyce S. Bautista, Dionnette P. Pascioles, Arnulfo, Jr. B. Abao, Emmanuel A. Constantino, Marilyn M. Jayme, Johann Therese L. Oliva, Erwin Lemuel G. Suarez, Maria Victoria A. Lindo, Ely Roy B. Bauto, Ramoncito O. Payabyab, Ener F. Acopiado, Ma. Lourdez A. Costales, Robert S. Jose, Dino R. Oppus, Louie T. Suplico, Maria Ava Sharone S. Lugue, Manolo T. Beltran, Ma. Jizzelle Lee M. Portugal, Jocelyn Joy Y. Agbuya, Jerwin M. Cruz, Dennis Ryan V. Jose, Martin M. Orias, Michael Charlie M. Sy, Janet U. Malagar, Kathryn Kay T. Beltran, Miguel Paolo L. Pua, Ivan Charlton U. Aguilar, Angelito F. Cuenca, Lirio Luna D. Junio, Judy Minda O. Osorio, Melchor V. Tan, Catherine C. Mapa, Juan Placido, III T. Berbaño, Noel L. Que, Marilou P. Alday, Jarold S. Cumigad, Edward D. Kaamiño, Francis Joseph P. Paatan, Yagtan Kenin S. Tan, Francis L. Maraingan, Rey T. Bernabe, Laarni D. Rabot, Joel U. Alejandro, Vilma S. Curato, Raymund D. Kua, Francis W. Padilla, Geraldine May S. Tan, Vincent D. Mariano, Federico T. Bilbao, Thomas Wilfrido R. Resurreccion, Cynthia C. Alipio, Alexander C. Curso, Vicente, III B. Kua, Sharon B. Padilla, Lamberto, Jr. M. Tan, Andrew S. Matriano, Romulo, Jr. M. Bormate, Rebecca B. Reyes, Maria Sharon C. Amantillo, Maria Concepcion A. Cuyugan, Ruth C. Lariosa, John Benecer, III R. Pador, Flossie Mae G. Tan, Vivien V. Medalla, Maria Nelia S. Cabaero, Claro B. Reyes, Maria Cristine D. Ang, Maria Jennifer P. Dampitan, Maria Arlene A. Larlar, Francis Rene B. Padua, Myla S. Tantuan, Mercy M. Mercado, Elmer K. Cagurangan, Jose Mari S. Reyes, Ma. Glenda Y. Ang, Michelle U. David, Joseph C. Lasala, Maria Celeste F. Paez, Maricor B. Te, Rommel C. Navarra, Jasmine E. Calderon, Estela S. Rivera, Teddy D. Angob, Maria Socorro T. De Castro, Ma. Theresa N. Laudico, Laurence John D. Pahati, Ronaldo T. Teodoro, Denny L. Navarro, Mary Grace L. Calumpang, Eric A. Roxas, Anna Sylvia E. Anot, Alfredo, Jr. D. De Dios, Maria Yvonne Khristine S. Lawan, Marivic M. Palma, Rogelio, Jr. V. Tero, Raymond Blas G. Ng, Natalie T. Carreon, Reynilo M. Roxas, Eriberto Pedro Antonio C. Aquino, Roland Raphael A. De Guia, Florinda L. Leaño, Christine Joy C. Pangilinan, Joseph Vincent L. Terrobias, Carlsten A. Ochoa, Marie Antoinette M. Chan, Susana Y. Ruiz, Cynthia G. Atraje, Maria Teresa S. De Guzman, Heidi V. Lei, Analisa B. Panlilio, Helen A. Trespalacioreal, Jevite P. Olonan, Minda Claver A. Chiu, Mary Ann K. Salazar, Robert Manuel B. Avila, Michael R. De Jesus, Jude Martin Peter S. Leyson, Amelyn O. Panogan, Hrothgar M. Triviño, Maria Rofelia P. Orlino, Christian Paul Philippe D. Cirujano, Edralino G. Salientes, Rodolfo J. Awa, Renato, Jr. V. De Leon, Bernard M. Liam, Cherrie Belle Y. Pantallon, Mark S. Tuason, Maria Angelica D. Oxales, Maria Lourdes Veronica C. Co, Cristina G. Samaniego, Chad Aaron R. Azada-Chua, Maria Cynthia K. De Leon, Joseph Eric V. Lim, Steve Robertson L. Parreño, Joyce P. Tuason, Geoffrey V. Padilla, John L. Co, Agnes C. Samonte, Angela Esperanza M. Bagang, Frederick C. De Vera, Dinna B. Lim Ang, Jennifer K. Pascual, Ruel A. Urot, Ma. Carminda G. Palao, Katherine G. Cocabo, Jinnah E. Samson, Melissa Marie L. Balajadia, Ma. Cecilia C. Del Moral, Dorotheyo B. Limpin, Irmino Noel R. Patangan, Vicente, Jr. C. Uy, Archie L. Pasimio, Mikael Angelo S. Concepcion, Crisanto M. Santos, Veronica C. Ballarta, Malvin B. Del Mundo, Jennifer G. Lising, Pamela Junno B. Pecaña, Genevieve C. Valencia, Alfredo P. Plofino, Jose Caesar B. Cordero, Eufrocina C. Santos, Vanessa Grace Y. Banaag, Maria Erlene S. Dela Cruz, Grazel G. Llave, Baby Amor R. Pegenia, Jacky Lyn A. Valeriano, Ma. Michelle S. Que, Winny S. Cruz, Darius M. Santos, Ruben L. Bantilan, Bernal S. Dela Victoria, Evelyn G. Lobendino, Michelle G. Pelaez, Joseph Eric D. Varquez, Esther T. Reyes, Ma. Imelda A. De Guzman, Ion Edmond A. Siapuatco, Ma. Dolores L. Barrocan, Maryjean D. Delos Santos, Ma. Victoria D. Lopez, Pamela Kristine L. Pios, Erickson D. Verceles, Josefina Janet F. Reyes, Christopher Hector L. De Guzman, Lyn L. Sio, Midel A. Basconcillo, Priscilla S. Diesmos, Adonis Manuel C. Lopez, Leonard L. Plata, Lorelei P. Viay, Gina L. Rivera, Elmer R. De Los Reyes, Jonas R. Siochi, Reynaldo C. Bauca, Joylyn G. Dimatatac, Wivina R. Lopez, Maria Kareniña R. Po, Cristina Y. Villafuerte, Alfredo C. Roxas, Cynia C. De Sagun - Madrid, Criselda Q. Sy, Sheryll Jane G. Bautista, Sheila Monica Y. Dizon, Mervin S. Lucido, Mirasol C. Ponce, Anna Katrina Y. Villanueva, Marlon L. San Juan, Christian D. De Venecia, Marcelo, III R. Tan, Helen L. Bautista, Michael C. Durendez, Rafael D. Lukban, Lilibeth N. Porcel, Harold P. Villanueva, Cristina M. Sevidal, Raquel N. Dela Cruz, Margareth Luz C. Tan, Leny C. Benedicto, Ceferino Joseph, III E. Dy, Liza M. Luna, Hansel R. Punsalan, Maria Shiela E. Villaruel, Helen B. Simbulan, Mylene S. Dela Cruz, Jon Sherbert G. Tan, John Paul V. Beraña, Mary Grace D. Dy, Helen O. Luzarraga, Myra O. Quesada, Nencie A. Villegas, Karina B. Siriban, Cynthia P. Delizo, Ricardo S. Tan, Mary Janet S. Bermundo, Rex R. Empalmado, Nolan Carlo U. Macabidang, Eloisa S. Quiñanola, Romberg E. Villegas, Marlon C. Tan, Jennifer G. Enriquez, Albert T. Tee, Elsa U. Bernal, Achilles L. Escobar, Lourdes N. Macalalad, Raul S. Quismundo, Victor M. Wenceslao, Violeta D. Tan, Roseanne T. Espino, Donato V. Tenorio, Florencio A. Bernisca, Gerly Anne G. Esguerra, Carlos Cesar A. Madlangbayan, Reyni D. Raga, John Wilwayco, Rowena R. Tan, Irene Y. Faustino, Joseph S. Tined, Alexander S. Bertulfo, Jinalyn R. Eustaquio, Christopher John H. Magbual, Eugenio R. Ramirez, Christian Patrick B. Wong, Charlene U. Tan, Tiffany L. Fernandez, Ma. Carlota C. Tiongson, Carmelita A. Bilasano, Jasmin S. Fabul, Monette A. Magpayo, Ruth Salome A. Ramos, Anna Victoria B. Yap, Jose Conrado Ildefonso R. Tatel, Jay S. Florendo, Eugenia A. Tiu, Betty T. Biyo, Alma D. Fedelino, Johven P. Maitim, Matias A. Ramos, Randolph John C. Yap, Francisco P. Tioseco, Francis Ramon L. Francisco, Criselda N. Tom, Albert Arnold A. Borce, Susan C. Fermin, Antonia Maribel M. Malan, Joel Julio M. Reyes, Ricardo V. Yapson, Maria Socorro Perpetua L. Tobias, Benigno G. Gaffud, Geraldine G. Trinidad, Anna Maria C. Bosita, Anna Gael D. Fernandez, Ferdinand B. Malco, Aileen B. Reyes, Maurita C. Yatco - Lopez, Beatrice C. Tolentino, Lorna Y. Gatuslao, Geralyn Q. Umali, Sheila P. Bustamante, Winnie M. Ferrer, Joanne O. Mallari, Aaron G. Rigodon, Eugene Celeste M. Yrureta, Daisy C. Trinidad, Maria Elena Z. Gloria, Arthur Robert C. Uyboco, Mercedes Desiree P. Florendo, Steve V. Mampusti, Ariel D. Rodriguez, David Lloyd D. Yuson, Inocencio, Jr. Y. Ty, Zandra M. Gloriani, Emelita A. Valenzuela, Ma. Gingili A. Flores, Michael M. Manansala, Fernando Jose T. Rogando, Liezl O. Urbiztondo, Rey C. Go, Maria Elena R. Valerio, Tricia H. Flores, Elamor, Jr. C. Manzano, Ivy Din A. Romualdez, Jamie Rose D. Victoriano, Randell D. Go, Nathaniel D. Velez, Ma Christina A. Francisco, Ma. Elizabeth A. Maquito, Rhizel B. Roque, Maria Emily R. Wong, Jay S. Golangco, Margaret C. Villa, Hector M. Fresnido, Gregorio, III B. Mariano, Jeffrey C. Rosario, Rolando G.

122 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 123 MEANINGFUL BANKING IN THE NEW NORMAL

PRODUCTS AND SERVICES

Payroll Solutions OVERSEAS FILIPINO SERVICES Peso and Dollar Fixed Income Funds DEPOSIT SERVICES MERCHANT ACQUIRING PAYMENT Cash Pick-Up Payroll Service OFW Php Savings Account (Pass- Metro Money Market Fund Regular Debit Account SOLUTIONS Request for Cardless Withdrawal Online Payroll Plus book) Metro Short Term Fund Regular Passbook Account Point-of-Sale (POS) Terminals Checkbook Request OFW Php Savings Account (ATM) Metro Max-3 Bond Fund Regular Checking Account Mastercard Payment Gateway Services e-ADA Collection Solutions OFW USD Savings Account (Pass- Metro Max-5 Bond Fund Account One Simplify Commerce Enroll New/Existing Own Account/Third Direct Debit book) Metro Corporate Bond Fund Fun Savers Club Savings Account Metrobank Online Installment Party Account Bills Payment (BPCA) Metro Unit Paying Fund USD & 3rd Currency Savings Accounts Recurring Payment Solution facility View Foreign Exchange Rates Present and Pay OVERSEAS FILIPINO SERVICES Metro$ Money Market Fund Short & Long-Term Time Deposit Mail Order Telephone Order (MOTO) Branch Locator Business Payment Gateway Credit to Metrobank Account Metro$ Short Term Fund Flexi Ascend Time Deposit POS Cash Out Facility Account Personalization Check Warehousing Credit to Account with Other Philip- Metro$ Max-3 Bond Fund Spark Savings Account Deposit Pick-Up (DPU) pine Banks Metro$ Max-5 Bond Fund OFW Savings Account (with debit card/ POINT-OF-SALE (POS) TERMINAL FEA- Metrobank Online Cash Delivery Cash Pick-up at Metrobank Branches Metro$ Asian Investment Grade Bond Fund passbook) TURES AND SERVICES Dashboard Metro Check Collect (MCC) Cash Pick-up Anywhere SSS and US Pensioner Accounts EMV (Europay, Mastercard, and Visa) Inbox CollectAnywhere - Domestic / Inter- Bills Payment (Includes payment Peso Balanced & Equity Funds Treasury Time Deposit Certified and Contactless capable Balance Inquiry national services for SSS and PAG-IBIG Con- Metro Balanced Fund Earnest Digital Account Metrobank Installment Acceptance Bills Payment tributions) Metro Equity Fund Alipay and WeChat Pay Acceptance Generate QR Code GOVERNMENT COLLECTION AND Shipping Payroll Services Metro Philippine Equity Index Tracker Fund CONSUMER LENDING Mobile Point-Of-Sale Solution Fund Transfer (also with QR) OTHER PAYMENT SERVICES Metro High Dividend Yield Fund Car Loan Android POS Terminal Prepaid Reload (Available to Corporates & Retail) TREASURY PRODUCTS Home Loan Loyalty Card and Gift Card Acceptance InstaPay (also with QR) BIR Tax Payments Government Securities Dollar Feeder Funds 3G-enabled PESONet Philhealth Premiums Peso Treasury Bills Metro$ World Equity Feeder Fund CARD PRODUCTS ECR (Electronic Cash Register) Integration Schedule Transactions Pag-ibig Payments Peso Fixed Rate Treasury Notes Metro$ US Equity Feeder Fund EMV Debit Mastercard Dynamic Currency Conversion (DCC) Request for Cardless Withdrawal SSS Contributions, Sickness, Maternity Peso Retail Treasury Bonds Metro$ Eurozone Equity Feeder Fund EMV Paycard Online Time Deposit and Employees Compensation (SMEC) Foreign Currency denominated Metro$ Japan Equity Feeder Fund Metrobank Vantage Visa ELECTRONIC BANKING FACILITIES UITF Online Bureau of Customs (BOC) Duties Sovereign Bonds Metro$ US Investment Grade Corporate Bond Metrobank Vantage Mastercard Automated Teller Machine Wealth Manager Metrobank Femme Visa Affiliated with Mastercard/Cirrus/Mae- Checkbook Request TRADE SERVICES (EXPORT) Metrobank-Issued Products PERSONAL WEALTH MANAGEMENT SER- Metrobank Rewards Plus Visa stro/Visa/BancNet/China UnionPay Add Acount Export Letters of Credit (LC) Long Term Negotiable Certificates of VICES Metrobank Titanium Mastercard Carded and Cardless Withdrawal Save Contact (Account / Biller / Load) Advising, Confirmation, Transfer LC Deposits Personal Management Trust M Free Mastercard Credit Card Cash Advance Bank Subordinated Notes Investment Management Arrangement M Lite Mastercard Balance Inquiry MISCELLANEOUS OVER-THE-COUNT- Export Letters of Credit (LC) and Peso Bonds Metrobank ON Virtual Mastercard Bills Payment ER SERVICES Non-LC Medium Term Notes (Foreign INSTITUTIONAL FUND MANAGEMENT Metrobank World Mastercard Inter-bank Funds Transfer Fun Savers Club Gift Checks Negotiation, Settlement Currency) Management of Corporate and Institutional Funds Metrobank Dollar Mastercard Intra-bank Funds Transfer Manager’s Check Treasury Time Deposit Corporations Metrobank Peso Platinum Mastercard Purchase of Prepaid Load TRADE SERVICES (IMPORT) Educational Institutions Metrobank Travel Platinum Visa Checkbook Request CUSTODIAL SERVICES Commercial Letters of Credit (LC) Corporate Securities Religious Organizations Metrobank Femme Signature Visa Statement Print/Request Safety Deposit Boxes LC Negotiation and Settlement Peso Corporate Bonds/Notes Foundations Toyota Mastercard Payslip Viewing/Printing Foreign Currency denominated PSBank Credit Mastercard PIN Change DOMESTIC REMITTANCE Guarantees Corporate Bonds Management of Pension and Provident Funds NCCC Mastercard Wealth Manager Remittance-To-Account Standby LC, Bank Guarantee, CLCU Long Term Negotiable Certificates of EMV Prepaid Mastercard UITF Online Cash Pick-up via Metrobank Mobile Shipping Guarantee/AWB/BL Endorse- Deposits (Other Banks) Other Fiduciary Services YAZZ Prepaid Visa Metrobank Operations Support Engine ment Escrow Services Victory Liner Premiere (MOSE) ELECTRONIC FUND TRANSFER Foreign Exchange and Derivatives Other Agency Arrangements Jac Liner Prepaid Visa InstaPay Certificate of Assigned Cash Deposit Spot Foreign Exchange AXA Prepaid Visa Cash Accept Machine PESONet Forward Foreign Exchange (Deliver- PRIVATE BANKING SERVICES Uniprint Elite Prepaid Visa Balance Inquiry Non-LC Trade Transactions able/Non Deliverable) Portfolio Advisory Nworld Prepaid Visa Carded and Cardless Cash Deposit CASH MANAGEMENT SERVICES Documents Against Payment Foreign Exchange Swaps Discretionary Mandates Ardeur Bpnus Prepaid Visa Prepaid Card Loading Metrobank Business Online Solutions Documents Against Acceptance Cross Currency Swaps Investment and Hedging Recommendation WeEvolve Prepaid Visa Basic Banking Solutions Open Account European Vanilla Foreign Exchange Wealth & Estate Planning PisoPay Prepaid Visa Metrobankdirect Retail Account Inquiry and Statement Direct Remittance Options IAM Worldwide Prepaid Visa Balance Inquiry Transaction History Advance Payment Forward Rate Agreement Sta. Ana Multipurpose Cooperative Pre- View/Download Statement Own Account Funds Transfer Interest Rate Swaps paid MasterCard Bills Payment Check Status Inquiry Collection of Import Advance, Final Credit Default Swaps STI Alumni Association Prepaid Master- Fund Transfer Checkbook Stock Request Duties and Export Fee Bond Forwards Card Checkbook Request Stop Payment Order Confirmation of SBLC/BG/CLCU Asset Swaps EMV Prepaid Mastercard View Deposit Interest Rates Loan Inquiry Interest Rate Options View Foreign Exchange Rates Interest Rate Inquiry TRADE FINANCE Bond Options CREDIT CARD PROGRAMS AND Enroll New/Existing Own Account/Third Supplier Financing Program Deposit Plus FACILITIES Party Account Liquidity Solutions Dealer Financing Program M Here Manage Tax Payments Account Sweep Receivables Factoring UNIT INVESTMENT TRUST FUNDS 0% Installment Manage Enrolled Accounts Reverse Sweep Trust Receipt Financing (UITFS) National Usage Program New Account Opening Floor Stock Financing Trust Receipt Peso Feeder Funds Cash2Go Payment Solutions Export Packing Credit Line Metro Aspire Bond Feeder Fund Balance Transfer Metrobank Mobile Banking To Another Metroank Account Funds Export Bills Purchase and Collection Metro Aspire Balanced Feeder Fund Balance Conversion Balance Inquiry Transfer (TAMA) Metro Aspire Equity Feeder Fund Bills2Pay Bills Payment Manager’s check SPECIALIZED LENDING FACILITIES M Online Fund Transfer (Send and Request Money) Corporate Check Special Project Financing Program Peso PERA Funds Mobile SOA Prepaid Reload (Send and Request Load) Domestic or Foreign Funds Transfer (PE- Industry Loan Program Metrobank PERA Money Market Fund Metrobank Interactive Assistant (MIA) InstaPay SONet, RTGS, PDDTS, GSRT & SWIFT) Working Capital Loans Metrobank PERA Bond Fund PESONet Metrobank Pay Cash-In / Check-Out FCDU Loans Metrobank PERA Equity Fund

124 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 125 MEANINGFUL BANKING IN THE NEW NORMAL

GRI CONTENT INDEX

GRI Standard Disclosure Page number MEMBERSHIP OF GRI 101: Foundation 2016 INDUSTRY ASSOCIATIONS General Disclosures GRI 102: General Organizational Profile Disclosures 2016 102-13 102-1 Name of the organization Metropolitan Bank & Trust Company 102-2 Activities, brands, products, and services p. 83, Refer to 2020 Annual Report 1 ACI PHILIPPINES THE FINANCIAL 18 INSTITUTE OF INTERNAL AUDITORS 102-3 Location of headquarters p. 83, Refer to 2020 Annual Report MARKETS ASSO., INC. 19 INTEGRATED BAR OF THE PHILIPPINES 102-4 Location of operations See ATM and Branch Locator (https://metrobank.com.ph/atm-and-branch-locator) 2 ASSOCIATION OF BANK COMPLIANCE 20 IT & BUSINESS PROCESS ASSOCIATION 102-5 Ownership and legal form Refer to 2020 Annual Report Group Ownership OFFICERS INC. OF THE PHILIPPINES, INC. 102-6 Markets served Refer to 2020 Annual Report Organizational Structure 3 ASSOCATION OF BANK REMITTANCE 21 INTERNET AND MOBILE MARKETING 102-7 Scale of the organization Refer to 2020 Annual Report Organizational Structure OFFICERS, INC. ASSOCIATION OF THE PHILIPPINES 102-8 Information on employees and other workers p. 98 4 ASSOCIATION OF CERTIFIED FRAUD 22 MAKATI BUSINESS CLUB INC. 102-9 Supply chain Not applicable 102-10 Significant changes to the organization and its Not applicable EXAMINERS (ACFE) PHIL CHAPTER INC. 23 MANAGEMENT ASSOCIATION OF THE supply chain 5 ASSOCIATION OF PHILIPPINE PHILS. 102-11 Precautionary Principle or approach p. 88 CORRESPONDENT BANK OFFICERS INC. 24 MONEY MARKET ASSOCIATION OF THE 102-12 External initiatives p. 89 - 95 6 BANK SECURITY MANAGEMENT PHILIPPINES (MART) 102-13 Membership of associations p. 126 ASSOCIATION, INC. 25 NATIONAL ASSOCIATION OF SECURITIES Strategy 7 BANKERS ASSOCIATION OF THE BROKER SALESMEN, INC. (NASBI) 102-14 Statement from senior decision-maker Refer to 2020 Annual Report Chairman’s Message, President’s Report PHILIPPINES 26 PEOPLE MANAGEMENT ASSOCIATION OF 102-15 Key impacts, risks, and opportunities Refer to 2020 Annual Report Risk Management 8 BANKERS INSTITUTE OF THE THE PHILS. INC. Ethics and integrity PHILIPPINES, INC. 27 PHILIPPINE ASSOCIATION OF NATIONAL 102-16 Values, principles, standards, and norms of Refer to 2020 Annual Report Vision-Mission 9 BANK MARKETING ASSOCIATION OF THE ADVERTISERS, INC. behavior PHILIPPINES 28 PHILIPPINE CHAMBER OF COMMERCE & Governance 10 CLEARING OFFICERS CLUB, INC. (COCI) INDUSTRY, INC. 102-18 Governance structure Refer to 2020 Annual Report Organizational Structure 11 CREDIT MANAGEMENT ASSOCIATION 29 PHILIPPINE PAYMENTS MANAGEMENT, 102-19 Delegating authority Refer to 2020 Annual Report Governance Committee 102-21 Consulting stakeholders on economic, Refer to 2020 Annual Report Board-level Committees 12 EMPLOYERS CONFEDERATION OF THE INC. environmental, and social topics PHILS. (ECOP) 30 PHIL-JAPAN ECONOMIC COOPERATION Composition of the highest governance body Refer to 2020 Annual Report Board-level Committees 13 EUROPEAN CHAMBER OF COMMERCE COMMITTEE INC. and its committees 14 FEDERATION OF INDIAN CHAMBERS OF 31 THE AMERICAN CHAMBER OF 102-22 Composition of the highest governance body Refer to 2020 Annual Report Board-level Committees and its committees COMMERCE (PHIL) INC. COMMERCE OF THE PHILS. INC. 102-23 Chair of the highest governance body Refer to 2020 Annual Report Board-level Committees 15 FINANCIAL EXECUTIVES INSTITUTE OF 32 THE JAPANESE CHAMBER OF COMMERCE 102-24 Nominating and selecting the highest Refer to 2020 Annual Report Board-level Committees THE PHIL. & INDUSTRY OF THE PHIL. INC. governance body 16 FUND MANAGERS ASSOCIATION OF THE 33 THE PHILIPPINE STOCK EXCHANGE INC. 102-25 Conflicts of interest Refer to 2020 Annual Report Fair Business Transactions & Managing Conflicts of Interest PHILIPPINES, INC. 34 TRUST OFFICERS ASSOCIATION OF THE 102-26 Role of highest governance body in setting Refer to 2020 Annual Report Board-level Committees 17 INFORMATION SYSTEMS AUDIT AND PHILS., INC. purpose, values, and strategy CONTROL ASSOCIATION, INC. 102-27 Collective knowledge of highest governance Replace] Refer to 2020 Annual Report Continuing Education body 102-28 Evaluating the highest governance body’s Refer to 2020 Annual Report Performance Evaluation and Self-Assessment performance 102-30 Effectiveness of risk management processes "See 2020 Corporate Governance Manual, pp. 79-81 (https://metrobank.com.ph/img/mbtc-corporate-governance-manual-as- of-2020.pdf)” 102-35 Remuneration policies "See 2020 Corporate Governance Manual, pp. 46-47 (https://metrobank.com.ph/img/mbtc-corporate-governance-manual-as- of-2020.pdf)”

126 METROBANK I 2020 Annual Report & Sustainability Report METROBANK I 2020 Annual Report & Sustainability Report 127 MEANINGFUL BANKING IN THE NEW NORMAL

GRI Standard Disclosure Page number GRI Standard Disclosure Page number Stakeholder Engagement ENVIRONMENT 102-40 List of stakeholder groups p. 86 Materials 102-41 Collective bargaining agreements p. 102 GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary 102-42 Identifying and selecting stakeholders p. 85 Approach 2016 103-2 The management approach and its components p. 96 102-43 Approach to stakeholder engagement p. 85 103-3 Evaluation of the management approach SEC Content Index: Resource Management 102-44 Key topics and concerns raised p. 86 GRI 301: Materials 301-1 Materials used by weight or volume p. 96 Reporting practice 2016 102-45 Entities included in the consolidated financial Metropolitan Bank Trust & Company (Parent) and Subsidiaries Energy statements GRI 103: 103-1 Explanation of the material topic and its p. 85 102-46 Defining report content and topic Boundaries p. 85 Management Boundary Approach 2016 102-47 List of material topics p. 85 103-2 The management approach and its components p. 96 102-48 Restatements of information Not applicable 103-3 Evaluation of the management approach SEC Content Index: Resource Management 102-49 Changes in reporting Not applicable GRI 302: Energy 302-1 Energy consumption within the organization p. 96 102-50 Reporting period p. 83 2016 102-51 Date of most recent report 2019 Emissions 102-52 Reporting cycle p. 83 GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary 102-53 Contact point for questions regarding the report Refer to 2020 Annual Report Performance Contact Information Approach 2016 103-2 The management approach and its components p. 96 102-54 Claims of reporting in accordance with GRI p. 83 Standards 103-3 Evaluation of the management approach SEC Content Index: Resource Management 102-55 GRI content index p. 127 - 131 GRI 103: 305-1 Direct (Scope 1) GHG emissions No Air Emission Testing conducted for 2020 Management 102-56 External assurance Not applicable Approach 2016 305-2 Energy indirect (Scope 2) GHG emissions No Air Emission Testing conducted for 2020 MATERIAL TOPICS SOCIAL ECONOMIC Employment Economic Performance GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary GRI 103: 103-1 Explanation of the material topic and its p. 85 Approach 2016 Management Boundary 103-2 The management approach and its components p. 98 Approach 2016 103-2 The management approach and its components The Bank maintains profitability by addressing material risks that have financial 103-3 Evaluation of the management approach SEC Content Index:Employment impact to the business. GRI 401: 401-1 New employee hires and employee turnover p. 103 103-3 Evaluation of the management approach SEC Content Index: Economic Performance and Procurement Practices. Employment 2016 GRI 201: Economic 201-1 Direct economic value generated and distributed p. 87 401-2 Benefits provided to full-time employees that p. 103 Performance 2016 are not provided to temporary or part-time employees Indirect Economic Impacts Occupational Health and Safety GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary GRI 103: 103-1 Explanation of the material topic and its p. 85 Approach 2016 Management Boundary 103-2 The management approach and its components The Bank maintains profitability by addressing material risks that have financial Approach 2018 impact to the business. 103-2 The management approach and its components p. 102-103 103-3 Evaluation of the management approach SEC Content Index: Economic Performance and Procurement Practices. 103-3 Evaluation of the management approach SEC Content Index: Workplace conditions, labor standards, and human rights GRI 203: Indirect 203-2 Significant indirect economic impacts Refer to 2020 Annual Report Performance Products and Services GRI 403: 403-1 Occupational health and safety management "The Bank is compliant to Bangko Sentral ng Pilipinas’ rules and regulations on Economic Impacts Occupational system bank protection (Circular No. 620). The Bank has a designated Security Officer 2016 Health and Safety who shall be responsible for the development and administration of a security 2018 program acceptable to BSP. There are security and safety measures conducted Anti-corruption through office inspections, emergency drills, and safety equipment testing and GRI 103: 103-1 Explanation of the material topic and its p. 85 refreshing. Management Boundary Approach 2016 We have Safety Marshals in Head Offices who conduct workplace safety 103-2 The management approach and its components "The Whistleblowing Policy is included on the Bank's Corporate Governance inspections ensuring that the Bank’s health and safety protocols are followed by Manual the occupants. “ https://metrobank.com.ph/img/mbtc-corporate-governance-manual-as- of-2020.pdf” 403-2 Hazard identification, risk assessment, and There are security and safety measures conducted through office inspections, incident investigation emergency drills, and safety equipment testing and refreshing. 103-3 Evaluation of the management approach SEC Content Index: Anti-corruption We also have certified Safety Officers in branches and head offices who conduct GRI 205:Anti- 205-3 Confirmed incidents of corruption and actions There is no recorded incident of corruption during the reporting period. hazard identification, risk assessment and control (HIRAC) as part of OSH corruption 2016 taken Program Commitment Form 403-3 Occupational health services p. 102

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GRI Standard Disclosure Page number GRI Standard Disclosure Page number 403-4 Worker participation, consultation, and Announcements on wellness checks and other health and safety programs are Metrobank disclosure Employees covered by collective bargaining p. 102 communication on occupational health disseminated to all employees whenever applicable. agreement and safety Metrobank disclosure Percentage of employees covered by collective p. 102 403-5 Worker training on occupational health and The Bank is susceptible to external security threats compared to other industries, bargaining agreement safety all security personnel undergo safety trainings on bank security enhancement, gun safety, bomb identification and detection, robbery and hold-up procedures, Local Communities disaster awareness, and security guard customer care. GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary Additionaly, we have capability building programs, advocacies, and safety Approach 2016 trainings to comply with the OSH Standards and OSH law such as Safety Officers 103-2 The management approach and its components p. 107 - 108 (SO) Certification Training, First Aiders (FA), Pollution Control Officer (PCO) and Managing Heads (MH). We also conduct the Mandatory 8-hour Workers 103-3 Evaluation of the management approach p. 107 - 108 Safety Training as we continously work to expand the reach of the capability GRI 413: Local 413-1 Operations with local community engagement, p. 107 - 108 building programs by maximizing the available technologies such as e-learning. In Communities impact assessments, and development response to the Pandemic, we actively communicate relevant health and safety 2016 programs advisories via Workplace postings and Systems broadcast complemented by mandatory e-learning modules related to COVID-19 Protocols. Supplier Social Assessment 403-6 Promotion of worker health p. 102-103 GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary We promote worker’s health by including health advisories in the monthly branch Approach 2016 103-2 The management approach and its components SEC Content Index: Suppllier chain management meeting of their Health and Safety Committees (HSC). We regularly release Wellness advisories, tips, and relevant contents related not only to physical 103-3 Evaluation of the management approach SEC Content Index: Suppllier chain management wellness, but mental wellness as well. “

403-7 Prevention and mitigation of occupational health Security personnel are employees of third-party agencies. Before these agencies Metrobank disclosure Presence of policy with social criteria SEC Content Index: Suppllier chain management and safety impacts directly linked by business are accredited, they must make sure that their employees undergo safety relationships trainings on bank security enhancement, gun safety, bomb identification and Marketing and Labelling detection, robbery and hold-up procedures, disaster awareness, and security GRI 103: 103-1 Explanation of the material topic and its p. 85 guard customer care. Management Boundary Approach 2016 We engage the services of a third-party COVID Care provider employing a team 103-2 The management approach and its components SEC Content Index: Customer Management of medical professionals who assess, diagnose, and monitor symptomatic employees at risk or suspected of COVID infection. 103-3 Evaluation of the management approach SEC Content Index: Customer Management 403-10 Work-related ill health 2020 Diseases/Principal complaint count: 2,105 Metrobank disclosure No. of substantiated complaints on marketing SEC Content Index: Customer Management and labelling Training and Education Metrobank disclosure No. of complaints addressed p. 106 GRI 103: 103-1 Explanation of the material topic and its p. 85 Customer Privacy Management Boundary Approach 2016 GRI 103: 103-1 Explanation of the material topic and its p. 85 103-2 The management approach and its components p. 99 -101 Management Boundary Approach 2016 103-3 Evaluation of the management approach A post-training evaluation feedback are embedded in the E Learning modules 103-2 The management approach and its components p. 106 - 107 GRI 404: Training 404-1 Average hours of training per year per employee p. 99 103-3 Evaluation of the management approach p. 106 - 107 and Education 2016 GRI 418: 418-1 Substantiated complaints concerning breaches None Customer Privacy of customer privacy and losses of customer data 404-2 Programs for upgrading employee skills and p. 99 - 100 2016 transition assistance programs Metrobank disclosure Employees assessed based on their p. 101 performance Freedom of Association and Collective Bargaining GRI 103: 103-1 Explanation of the material topic and its p. 85 Management Boundary Approach 2016 103-2 The management approach and its components SEC Content Index: Labor-management relations 103-3 Evaluation of the management approach SEC Content Index: Labor-management relations

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SEC CONTENT INDEX

SEC Standard Disclosure Page number or direct answers SEC Standard Disclosure Page number or direct answers Economic Anti-corruption policies are communicated to the Management approach to impacts and risks employees through the Bank's Code of Ethics and 2020 Economic Performance and Procurement Practices Anti-Bribery and Corruption Policy. Direct economic value generated and distributed p. 87 The Bank regularly reviews and evaluates its anti-corruption Percentage of procurement budget used for significant All business units create their own budget for operating Opportunities policies and guidelines to ensure that these regulations locations of operations that is spent on local suppliers supplies and equipment. Budget availments go through remain relevant and effective. evaluation and approval process. The procurement team is The Board of Directors shall also ensure that there is in charge with the sourcing of approved requirements. The periodic assessment on bribery and corruption risks as part Management approach to opportunities team consistently deals with local suppliers. of the implementation of Anti-Bribery and Corruption Policy Impacts and risks identified Metrobank, being one of the biggest banks in the Philippines and effective monitoring is in the position to support the economies in areas where Environment its business are located. Obtaining the assistance of local suppliers could help stimulus the local economy and allow Resource management business activities to local companies. Energy Energy consumption within the organization 13,282,083 kWH - selected facilities ( centers only) Management approach to impacts and risks Metrobank conduct its business following risk management Baseline data will be provided once all facitilies' energy framework that ensures all its investments, ventures and Reduction of energy consumption consumption data is acquired other decisions are consistent with regulatory standards. It has a vendor accreditation policy from suplliers that meet Water Water withdrawal 80,865 m3 - selected facilities (centers only) its criteria. Water consumption 80,865 m3 - selected facilities (centers only) Opportunities Expand the Bank's risk management framework to be in line with BSP's Sustainable Finance Framework. Water recycled and reused 0 m3 5,820 pieces of UPS batteries and 10,620 cartridges of Management approach to opportunities Formulation of a policy or policies in line with the BSP’s Materials Materials used by the organization Sustainable Finance Framework printer toner Metrobank is reviewing its portfolio and continuously understanding on how to incorporate the guidelines set by Task Force on High consumption of natural resources may increase Impacts and risks identified operational cost and higher ecological footprint. Improper Climate-related risks and opportunities Climate-Related Financial Disclosures (TCFD). Different climate change scenarios using approved tools and methodologies could be explored which will eventually provide business decisions as well as opportunities. management of resources may lead to faster depletion. Energy Conservation initiatives such as installation of Anti-corruption motion sensors to keep lights off when not used in a Percentage of employees to whom the organization’s The Anti-Bribery and Corruption Policy shall be part of the Management approach to impacts and risks selected area, continuation on the upgrade of LEDs and anti-corruption policies and procedures have been onboarding process for all new employees of the Bank. All implementation of AC scheduled operation across all communicated to existing employees shall receive regular training on the centers limited only to office hours. implementation and adherence to the policy upon release Projects that will help minimize utility consumption such as Opportunities of the policy. solar panels Percentage of business partners to whom the "The Anti-Bribery and Corruption policy shall apply Continued development of policies, and adapt of new Management approach to opportunities organization’s anti-corruption policies and procedures to dealings and transactions of the Bank, directors technologies in order to take advantage of opportunities. have been communicated to and employees, with its clients, service providers, counterparties and other third parties irrespective of Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside Training on Anti-corruption Policies and jurisdiction or country upon release of the policy. protected areas Procedures Percentage of directors and management that have The Anti-Bribery and Corruption policy shall apply received anti-corruption training to dealings and transactions of the Bank, directors Habitats protected or restored and employees, with its clients, service providers, IUCN Red List species and national conservation list species counterparties and other third parties irrespective of Biodiversity with habitats in areas affected by operations Not Applicable jurisdiction or country upon release of the policy Impacts and risks identified Percentage of employees that have received anti- The Anti-Bribery and Corruption policy shall apply corruption training to dealings and transactions of the Bank, directors Management approach and employees, with its clients, service providers, Opportunities counterparties and other third parties irrespective of jurisdiction or country upon release of the policy Management approach to opportunities "Number of incidents in which directors were removed or None Environmental impact management disciplined for corruption” Direct (Scope 1) GHG emissions No Air Emission Testing conducted for 2020 Number of incidents in which employees were dismissed or None Incidents of corruption disciplined for corruption Energy indirect (Scope 2) GHG emissions No Air Emission Testing conducted for 2020 Number of incidents when contracts with business partners None Emissions of ozone-depleting substances (ODS) No data available were terminated due to incidents of corruption The Bank's air emission are directly related to resource Corruption disrupts normal economic flows from society Impacts and risks identified management strategy. Improper management of air emisisons can lead to faster environment degradation. Impacts and risks identified to the Bank and vice versa and exposes the Bank to Air emissions reputational, financial, and regulatory risks. Monitoring of fuel consumption of vehicles and Management approach to impacts and risks generator sets Continue to explore technologies that could lower resource Opportunities consumption. Continued development of policies, and adapt of new Management approach to opportunities technologies in order to take advantage of opportunities.

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SEC Standard Disclosure Page number or direct answers SEC Standard Disclosure Page number or direct answers Nox Social Sox Employment Persistent organic pollutants (POPs) "Total employee count: 13,718 Employee breakdown based on gender: Volatile organic compounds (VOCs) Total number of employees - Female: 8,902 This is not applicable to Metrobank since it does not have Air pollutants Particulate matter (PM) - Male: 4,816” any operations that contribute significantly to air pollution Impacts and risks identified Attrition rate 7.02% Management approach to impacts and risks Ratio of lowest paid employee against minimum wage 10.31% Opportunities Employee benefits p. 103 Management approach to opportunities The Bank provides its employees with a competitive compensation package. However, the Bank also recognizes Impacts and risks identified Solid and Hazardous Wastes Employee hiring and benefits that it is still exposed to risks of employee turnover since their Solid waste Total solid waste generated 6.63 tonnes (2020) - head office decisions still depend on their individual preference. Total weight of hazardous waste generated 0.0053 tonnes fluorescent tubes (2020) - head office Metrobank regularly benchmarks their compensation package Hazardous waste Management approach to impacts and risks against industry peers to ensure that the Bank remains Total weight of hazardous waste transported Volume was insufficient for transport competitive. Solid wastes and hazardous wastes have adverse impacts There is an opportunity to continue analyzing reasons for on the surrounding community and environment. With Opportunities attrition which could inform strategies on improving employee Impacts and risks identified the negative impacts of wastes, improper transport and retention. disposal of solid and hazardous wastes are violations to Regularly reviews management approaches to adapt that environmental laws and poses legal and reputational risks. Management approach to opportunities affect hiring and employment Solid waste reduction policy - paper, decreased use and Management approach to impacts and risks increased re-use. Plastics - banning of single use plastics Total training hours provided to employees 169,011.59 hours within bank premises. Average training hours provided to employees 12.32 hours Opportunities Integrate solid waste segregation programs Training and developing employees helps them gain new skills Continued development of policies, and adapt of new and aid in career growth. Failure to properly train employees Management approach to opportunities may lead to reduced productivity which could have financial technologies in order to take advantage of opportunities. Impacts and risks identified impacts on the business. Moreoever, it could affect succession No data available as bank offices' wastewater are combined planning which could inhibit Metrobank's ability to raise the Total volume of water discharges with other tenants inside the leased property for treatment next generation of leaders. and discharge. Employee training and development Metrobank invests in learning and development programs to No data available as bank offices' wastewater are combined Management approach to impacts and risks increase employees' competency, and in effect, improve their Percent of wastewater recycled with other tenants inside the leased property for treatment productivity. and discharge. The Bank regularly reviews and evaluates its learning and Untreated wastewater has adverse impacts to local water Impacts and risks identified Opportunities development programs to ensure that these remain relevant Effluents bodies which could affect water quality and ecology. and effective. Management approach to impacts and risks Regular maintenance of plumbling fixtures in facilities. Metrobank shall continue to monitor industry trends to There is an opportunity to measure effluents and report in effectively update the trainings that they offer. The training Opportunities Management approach to opportunities future reporting cycles. programs are developed by both in-house and externally- sourced subject matter experts. Metrobank has an ongoing investigation on best practices of Management approach to opportunities managing water consumption to help decrease the resulting % of employees covered with Collective Bargaining 95% wastewater discharge. Agreements Environmental compliance Three (3) Labor Management Council (LMC) meetings were held between Management and the Union in 2020 - 1/30, Total amount of monetary fines for non-compliance with 6/30 and 9/30. The frequency of these meetings resulted to None environmental laws and/or regulations constant and open communication between the 2 parties. LMC Number of consultations conducted with employees meetings were used by Management to update to the Union No. of non-monetary sanctions for non-compliance with concerning employee-related policies None of Bank policies released during the pandemic caused by environmental laws and/or regulations COVID-19. Noteworthy to state that the Union acknowledged No. of cases resolved through dispute resolution mechanism None with these policies and even supported Management in Non-compliance with Environmental communicating these to their members. Laws and Regulations Non-compliance to environmental laws could lead to Impacts and risks identified regulatory fines and a risk on the Bank's reputation. The Bank recognizes the importance of maintaining a good Labor-management relations relationship with its employees. Failure to maintain this Management approach to impacts and risks Impacts and risks identified Metrobank continues to adhere to environmental laws relationship exposes the Banks to risks of labor strikes which Opportunities and regulations negatively impacts productivity and profitability. Management approach to opportunities to impacts and risks Metrobank strictly complies to all labor-related laws and regulations of the country. Communication with the labor Management approach to impacts and risks groups is conducted as necessary. Employees with grievances are also protected by the Bank's Whistleblowing Policy. There is an opportunity to review its current policies and Opportunities practices on labor management to further enhance the current systems the Bank has. A review of the key concerns raised by the Bank could help it in Management approach to opportunities updating its policies.

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SEC Standard Disclosure Page number or direct answers SEC Standard Disclosure Page number or direct answers % of female workers in the workforce 65% With the use of technology, new products and innovations are efficiently manufactured resulting to lower prices and % of male workers in the workforce 35% better quality. The procurement team is continously doing 104 employees availed of Solo Parent Leave: Opportunities market scan for the discovery of products that the Bank Number of employees from indigenous communities and/or Female: 95 can capitalize in its operations. Good relationship with vulnerable sector Male: 9 reliable vendors may lead to the discovery of new ideas and concepts. Companies face a high risk of competition for skilled employees. In addition, they may also face a reputational Continue exploring new products and services the Diversity and equal opportunity Impacts and risks identified risk should there be any form of discrimination in their hiring Management approach to opportunities market has to offer. Keeping abreasts with new trends, process. developments and modern technologies. Metrobank hires employees based on qualifications, Relationship with community Management approach to impacts and risks regardless of age, gender, and ethnic background. , they are Significant impacts on local communities able to expand their candidate pools. Impacts and risks identified The Bank shall continue in its current policies and practices Opportunities Metrobank’s engagements with communities are primarily on this topic. "Management approach to impacts and risks" through its CSR activities. Management approach to opportunities The Bank shall continue in its current policies and practices. Opportunities Workplace conditions, labor standards, Management approach to opportunities and human rights Customer management Safe Man-Hours Not applicable Customer satisfaction 87% Zero (0) injuries to or work accidents within office premises No. of work-related injuries "Customers are Metrobank's key stakeholders. Metrobank is to report. committed to providing a convenient, hassle-free experience No. of work-related fatalities 0 of our customers with our products and services. Ensuring their concerns and complaints are addressed appropriately is No. of work related ill-health p. 102 - 103 a priority of the Bank. No. of safety drills p. 102 Voice of the customer surveys are regularly conducted to Impacts and risks identified p. 102 Occupational health and safety get customer experience and desired improvements in order Management approach to impacts and risks p. 102 Customer satisfaction for the Bank to assess and consider as part of enhancing Impacts and risks identified the Bank’s products and services. Moreso, the Bank has The Bank has put in place initiatives that would promote and established metrics related to customer complaints handling ensure physical and health well-being of employees. Included which are regularly monitored. Opportunities in these initiatives are touchpoints where employees can give feedback or have an open conversation relating to their Satisfied customers lead to customer loyalty and a higher mental well-being. likelihood of being promoted to other potential customers. This The Bank shall continue its policies and practices to protect in turn leads to new customers, higher revenues, and growth Management approach to opportunities its employees' health and safety. for the Bank. A high rate of dissatisfaction, meanwhile, could lead to customer attrition and less customer activity, resulting No. of legal actions or employee grievances involving forced Not applicable to a dip in revenues.” or child labor The Customer Experience Committee (CXCom) drives Respect of human rights and upholding labor laws are ethical the implementation of identified actions to be taken and and moral responsibilities of any organization. Failure to do monitor progress until completion and these are reported to Impacts and risks identified Management approach to impacts and risks so is a blatant violation of these values which may lead to legal the Executive Committee. More so, the CX Com regularly repercussions and adverse reputational impact to the Bank. monitors the performance of the Bank on customer-related Labor laws and human rights metrics. Management approach to impacts and risks p. 98 - 103 Metrobank remains committed to listening to customers Opportunities There were no opportunities identified for this reporting cycle. to identify opportunities, address pain points, and improve Opportunities The Bank shall continue to be vigilant in its policies and overall experience with the Bank through the different banking Management approach to opportunities practices against any violation of labor laws and human touchpoints rights. The Customer Engagement Group (CEG) was created Supply chain management this year to enhance the customer-centric culture of the Bank, with focus on customer experience (CX), continuous Management approach to opportunities An existing Vendor Management policy is in effect to ensure improvement (kaizen), efficiency (scale and scope), and Supplier accreditation policy suppliers are compliant with the Bank’s guidelines and data-driven policies to drive meaningful banking experience to Bangko Sentral ng Pilipinas’ regulations. our customers The procurement team continuously expands the network Impacts and risks identified of reliable vendors. The team has backup vendors to ensure it has other options in case of extreme exigencies. Per Vendor Management Policy, the Bank evaluates the legality and financial stability of the suppliers to ensure that they are able to deliver their obligations. Existing suppliers "Management approach to impacts and risks" undergo re-accreditation every three years from date of approval of accreditation. Annual performance evaluations are conducted to ensure that suppliers remain compliant to Metrobank’s policies.

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SEC Standard Disclosure Page number or direct answers SEC Standard Disclosure Page number or direct answers No. of substantiated complaints on product or service health "While dealing with the difficult circumstances brought by There is no substantiated complaint by customer/s on data No. of substantiated complaints on customer privacy and safety COVID-19, Metrobank offered meaningful assistance to our breach customers across various banking touchpoints so they can No. of complaints addressed There is no substantiated complaint by customer/s on data focus on their safety and the welfare of their loved ones. The No. of complaints addressed breach Impacts and risks identified branches and ATMs/Cash Accept Machines are also regularly sanitized. No. of customers, users and account holders whose There is no account holder whose information is used for Management approach to impacts and risks information is used for secondary purposes secondary purpose Opportunities All branches complied to health protocols to ensure the safety of both the customers and Bank personnel in compliance with Banks collect personal data from its customers to validate, national and local area guidelines. verify, and update information and documents relevant to Health and safety the execution of the customer's transactions with the Bank. Impacts and risks identified The Bank ensured the availability of the website and social Metrobank has a legal obligation to safeguard its clients' media as convenient options for customers to raise their information. Failure to protect confidential information may concerns without the need to go to the branch. have legal, financial and reputational repercussions. Management approach to opportunities The Bank has a strong IT system in place, with well-defined Clients were encouraged to sign-up and use the online protocols, a secure database, and periodically re-validated channels of the Bank. Requests for updating of customer procedures to protect the confidentiality, security, accuracy, mobile number and email address to access these channels and integrity of customer’s personal information. Customers was made available through the bank’s website without the are assured that their financial transactions, as well as Customer privacy Management approach to impacts and risks need to go to the Branch of Account. “ relevant personal information disclosed in the course of the No. of substantiated complaints on transaction, are kept confidential. There are no substantiated complaints on marketing and labelling. marketing and labeling The Bank, through the Fraud Management Division, is using No. of complaints addressed There are no substantiated complaints on marketing and labelling. several tools for fraud prevention and mitigation. The Bank ensures that its customers have a reasonable and holistic understanding of all its products and services which they There is an opportunity to look into best practices in the Impacts and risks identified may be availing, its fundamental benefits and risks. A full disclosure and utmost transparency are critical elements that empower industry on ensuring data privacy. The Bank's Privacy Policy the customer to make informed financial decisions. is also regularly reviewed and updated to ensure compliance Opportunities with data privacy laws in the country. The Bank also started The Bank ensures that its advertising and marketing materials do not make false, misleading, or deceptive statements that may initiatives on Data Privacy Awareness in all available platforms, materially and/or adversely affect the decision of the customer to avail of a service or acquire a product and are easily readable both to its personnel and customers, such as infoscripts, Management approach to impacts and understandable by its customers and the general public. articles, privacy awareness day, webinars, and e-learning. and risks All marketing communications of the Bank adhere to the regulations of the Ad Standards Council (ASC), BancNet, PDIC, The Bank has a strong IT system in place, with well-defined DTI Regulations and Bangko Sentral ng Pilipinas. protocols, a secure database, and periodically re-validated procedures to protect the confidentiality, security, accuracy, All product offers of the Bank are released to the public Management approach to opportunities and integrity of customer's personal information. Customers through numerous channels: are assured that their financial transactions are kept

confidential. 1. Handled by the Community Management Team: Official website: www.metrobank.com.ph; Campaign site: "There is no data breach, including leaks, thefts, and losses of No. of data breaches, including leaks, thefts and losses of data meaningfulbanking.metrobank.com.ph data by Metrobank. Social Media sites: Facebook (facebook.com/metrobank); Twitter (twitter.com/Metrobank); Instagram (instagram. Customers are assured that their financial transactions, as com/metrobank) well as relevant personal information disclosed in the course Policies and T&C for each platform are adhered to of the transaction, are kept confidential. Metrobank adopts Opportunities accordingly. Impacts and risks identified a policy that every information, regardless of the nature and 2. Handled by the Corporate Affairs Division: kind, concerning or pertaining to a client or a potential client, All press releases, ad placements and paid advertorials in his/her account, transaction and/or dealings with the Bank is print, broadcast and news media. They also handle event hereby declared to be confidential . product launches, media roundtable discussions, marketing Data security The Bank ensures that it has well-defined protocols, a materials, such as banners, posters, brochures, in all secure database, and periodically re-validated procedures branches and offices. Products are also features in the Annual in handling the personal information of its customers. This is Report. an end-to-end process that covers, among others, the array 3. Handled by the Customer Relationship Management Team: Management approach to impacts and risks of information that will be pre-identified and collected, the EDMs, SMS blasts to inform clients on bank advisories, new Marketing and labelling purpose of gathering information, how these will be sourced products, and other marketing content. “ from the customer, the IT-security infrastructure of the Bank, "Metrobank demonstrates at all times the principle of fair and the protocols for disclosure, both within the Bank and treatment towards its customers. The Bank ensures that especially to third parties, if needed. necessary resources, procedures, internal monitoring and Opportunities The Bank evaluates and adjusts the Information Security control mechanisms are in place for safeguarding the best Program, as necessary. interests of its customers. Management approach to opportunities UN Sustainable Development Goals We have invested in a Media Intelligence Tool for the daily monitoring of news and ads concerning the Bank and the Product or service contribution to UN SDGs p. 89 - 95 Metrobank Group. This is for traditional media and news sites. Management approach to opportunities We also have a Social Listening Tool to cover all mentions of the Bank in social media sites. These platforms help us in analysing the Bank’s SOV, reputational assessment and in addressing customer sentiments in real-time. There are designated teams who handle each platform. For one, our Community Management Team covers real-time customer inquires and feedback in social media. For complaints / reputational risks in a much bigger scale, we have a Crisis Communication Plan in place to address such issues.”

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CONTACT INFORMATION

For inquiries on dividends, stock For Head Office Center units certificates, and related matters: and directory assistance:

STOCK TRANSFER HEAD OFFICE TRUNKLINE 5th Floor Annex, Metrobank Plaza Telephone: +632 8898 8000 Sen. Gil Puyat Avenue, Makati City, Philippines 1200 OFFICIAL WEBSITE Telephone: +632 8857 5299 https://metrobank.com.ph/ +632 8857 5695 E-mail: [email protected] TO FIND A METROBANK BRANCH OR ATM [email protected] NEAR YOU: [email protected] https://metrobank.com.ph/locator

Metrobank is the country’s premier universal To know more about the Bank’s business, bank, with an extensive consolidated network recent performance and significant that spans over 2,300 ATMs nationwide, developments more than 950 domestic branches, and above 30 foreign branches, subsidiaries, and INVESTOR RELATIONS representative offices. 11th Floor Metrobank Plaza Sen. Gil Puyat Avenue, Member of the Philippine Deposit Insurance Makati City, Philippines 1200 Corporation (PDIC) Telephone: +632 8857 5348 Regulated by Bangko Sentral ng Pilipinas | E-mail: [email protected] Tel. No: (02) 8-708-7087 | Email Address: [email protected] CORPORATE AFFAIRS 19th Floor Metrobank Plaza A proud member of Bancnet Sen. Gil Puyat Avenue, Makati City, Philippines 1200 Head Office: Telephone: +632 8857 5526 Metrobank Plaza E-mail: [email protected] Sen. Gil Puyat Avenue Makati City, Philippines, 1200

For general inquiries, action on requests and customer comments

24/7 CONTACT CENTER Metro Manila: +632 88700 700 Domestic Toll Free: 1 800 1888 5775 Scan this QR code to view Metrobank’s 2020 Financial Statements E-mail: [email protected]

140 METROBANK I 2020 Annual Report & Sustainability Report Head Office: Metrobank Plaza Sen. Gil Puyat Avenue Makati City, Philippines 1200