2018 ANNUAL REPORT

THE FUTURE MADE POSSIBLE BUILDING A SUCCESS-DRIVEN FUTURE Having the drive and dedication to exceed goals and expectations. BANKING WITH INTEGRITY Adhering to strong moral principles in all circumstances. TRANSFORMING THE WORK PLACE Teamwork, working together effectively, combining our individual strengths, toward common goals. ADVOCATING SUSTAINABILITY Caring for our stakeholders’ social, economic and environmental development. Metrobank’s code of conduct is anchored upon 5 core values: Passion for Results, Integrity, Teamwork, Commitment to Customer Service, and Heart for Community. In the words of our President “These 5 core values that form the acronym PITCH are what define us as Metrobankers.”

VISION MISSION* Probably the best expression of PITCH is the I Am A Metrobanker Pledge. At the start of each working day, Metrobankers recite this commitment with remarkable “It To be the country’s premiere financial zeal for these are not merely words for us. As how our President succinctly puts it, is not enough that we know and understand what PITCH is. It is only thru living these values conglomerate, empowering our individual every day that we become worthy of the trust given to us, the good hands of Metrobank.” and business clients to realize their goals and reach their full potential. By creating and customizing financial solutions in response As you go through the pages of this report, you will bear witness to the 2018 to our stakeholders’ needs, continuously Metrobank story, and at the same time you will see how we utilized our values as a expanding our scope of reach, and leading in tool in intricately crafting this narrative. community service, we live up to our “You’re in Good Hands” promise that embodies who I AM PASSIONATE FOR RESULTS. I act everyday to exceed we are and what we do. We are Metrobank. expectations and make meaningful impact.

*The Vision Mission Statement (VMS) 2018 is a year full of firsts for the bank, given the numerous deals and awards we was approved by the Board in December 2016 had, and most notably, our outstanding year-ender performance. These feats are acknowledged in the Chairman’s Message & President’s Report.

I AM A PERSON OF INTEGRITY. I always choose to do the WE COMMIT TO BE right thing and I act when I see wrongdoing. THE TRUSTED FINANCIAL PARTNER Our business relies on the principles of The Corporate Governance section proves that everything we do is within the bounds trust, honesty and integrity as we serve of integrity, accountability, and transparency. our customers and help them attain their financial goals. I AM A CHAMPION OF TEAMWORK. I encourage and help my fellow Metrobankers, we create an inspiring place to work THE EMPLOYER OF CHOICE together. We strengthen the organization by continuously developing and enhancing the Through our employee engagement activities and training initiatives, we develop and abilities of our people. nurture the welfare of our people and at the same time, strengthen our organization.

We nurture them into professional individuals I AM COMMITTED TO CUSTOMER SERVICE. I truly care for with integrity and passion for service and excellence. We ensure their future by the people we serve and keep them at the heart of all we do. providing them with fulfilling careers. In this report, we will be featuring Metrobank products and services that echo RESPONSIBLE BANK our commitment to being the best service provider to you, our customers. These We adhere to the highest standards symbolize our partnership in growing your business and in fulfilling your big dreams. of corporate governance, exercising accountability, fairness, and transparency I AM AN ADVOCATE OF HEART FOR COMMUNITY. I believe across all our business operations. that it is not enough to make a living, I need to help make lives better. We exercise good management to provide our shareholders with sustainable returns on For the past years, we have been consistent in fulfilling our corporate social their investments. responsibility through the Metrobank Foundation.

AN INSTITUTION WITH A HEART “In the last 56 years, there has been no shortage of stories of good hands doing great We give back to the communities we deeds.” We proudly share with you these milestones and successes. All these would serve, committed to making meaningful not be possible without your trust and confidence in our institution. This 2018 contributions to the economic and social Annual Report is the compilation of our proud moments and multiple firsts with you development of our nation. which prove that we have indeed made your future possible by staying grounded on our values.

This is who we are. And this is how we live up to the promise of being the good hands of Metrobank.

1 CHAIRMAN’S REPORT THE FUTURE MADE POSSIBLE

analytics can lead to efficiency; improve cross selling, targeted marketing, and dynamic decision-making. WE MAKE In this digital society, customer behavior constantly evolves including expectations for seamless Omni channel experience. Financial disruptors will remain a threat. The THE added complication is to make digital experience safe and transparent, while treating customer information with utmost privacy. By embracing this new world order, we keep FUTURE our hopes to stay in the game and remain relevant to our customers. These are some of our considerations as we create and reshape our digitalization strategy. OUR CORE VALUES SERVE POSSIBLE Let me now take this AS AN ANCHOR ON WHAT’S opportunity to thank all our Dear fellow shareholders, evolving customer needs and To make the future possible employees for your hard advancements in technology today, the journey starts with IMPORTANT IN KEEPING work and contributions in 2018 was a year characterized that will impact us and our our people. To continuously the past year. I am proud by many uncertainties, from customers like never before. reinvigorate their spirit, we OUR CUSTOMERS HAPPY of all Metrobankers who geopolitical events, financial Likewise, investors worry about launched an internal campaign worked together effectively by stress in the developed and the impact of rising rates to highlighting the importance of AND OUR EMPLOYEES combining individual strengths emerging economies, and the economy, which in turn our core values: Passion for to reach common goals. The market volatilities. In the past will affect lending activities, and results, Integrity, Teamwork, ENGAGED, TO ENSURE drive and passion to achieve two decades, quantitative easing draw the spotlight on asset Commitment to customer targets without compromising and lower interest rates around quality. service, and Heart for the THE SUSTAINABILITY OF integrity and quality is a the globe allowed economies community or PITCH as we hallmark of this institution. OUR BUSINESS , AND TO to grow aggressively, which in Despite all that, we also simply call it. turn allowed our business to recognize that 2019 presents To our Board of Directors, CONTRIBUTE TO NATION- thrive. But in 2018, the world a lot of growth opportunities. These principles, applied in thank you for your guidance and economy turned the corner, We can expect positive everyday activities, serve as an insights, and to the management BUILDING. with most countries moving to stimulus from robust consumer anchor on what’s important in team, for your unceasing a tighter monetary policy and spending, stronger government keeping our customers happy dedication. - Arthur Ty raising interest rates. Seismic expenditures on infrastructure and our employees engaged, to shifts that paved the way for the projects, and steady private ensure the sustainability of our Finally, my sincerest gratitude new normal. sector investments to expand business, and to contribute to to our loyal customers, and invest for the long-term. nation-building. The effects can partners, and investors – your Even then, the Philippine be wide-ranging and compelling. economy grew by 6.2 %, still unwavering support inspires us The Metrobank Group to strive and make the future among the fastest-growing in We also recognize the need possible today. Asia. Against this backdrop, continues to hold a to drive business through Metrobank stayed resilient, digital innovation. The pace of reporting strong earnings leading position in this digital change is so rapid that growth for the year driven growing economy. banks have come to realize mainly by our core business. So how do we move forward how investments in digital and take advantage of this technologies can be a key Looking ahead, we can expect differentiator for customer potential? ARTHUR TY a continuation of these experience. In addition, over Chairman unexpected risks and volatilities, time the use of data-driven

3 PRESIDENT’S REPORT THE FUTURE MADE POSSIBLE

TURNING

AS WE GEAR UP FOR VISION INTO THE FUTURE, WE REMAIN COMMITTED TO GOOD GOVERNANCE, REALITY TRANSPARENCY, AND The Philippines continued on October, the highest in over For 2018, Metrobank’s loan DELIVERING SUSTAINABLE its growth momentum in a year 10 years, prompting the BSP portfolio grew at a modest marked by many challenges. to raise policy rates five times pace of 10%, while deposits RETURNS TO OUR The Philippine economy grew by 175 basis points to arrest inched up 2% year-on-year. 6.2% in 2018 on the back of second-round effects. Low-cost deposits continued SHAREHOLDERS. resilient consumer spending, to comprise the majority solid government spending, Against this backdrop, the of the deposit base at 62%. and robust investment growth, Philippine banking industry Combined with margin - Fabian S. Dee making the country still one of continued to thrive, as demand expansion, this led to a 12% Southeast Asia’s fastest growing for loans expanded double-digit growth in net interest income economies. while deposits likewise grew, to P68.8 billion, which now albeit at a slower pace. accounts for 74% of the bank’s Across the globe, significant total revenues. For the full year, risk events like concerns over net interest margin expanded a slowing global economy, US Your bank sustained to 3.82%, still the highest among Fed rate hikes, and geopolitical its growth story in peer banks. tensions hounded the investment climate and markets 2018, highlighting our On the other hand, non-interest swung unpredictably. Emerging resilience in a very income grew to P23.8 billion market currencies depreciated with the strong performance against the US dollar as challenging environment. in service charges, fees and investors moved their funds commissions. Fee-related back to developed economies Net income grew by a robust revenues were boosted by amidst the volatilities. 21% year-on-year to P22.0 steady customer-driven flows billion, the fastest growth and trade-related commissions. Meanwhile, the Bangko Sentral posted among the top players In addition, net trading and FX ng Pilipinas (BSP) raised interest in the industry. This was driven gains contributed P2.8 billion rates to temper growing by healthy growth in loans while other income was at P7.0 inflation concerns and stem complemented by margin billion including share in net the depreciation of the local expansion, higher fee-based income of affiliates and joint currency against the greenback. income, and manageable venture. Inflation peaked at 6.7% in expense growth.

4 PRESIDENT’S REPORT THE FUTURE MADE POSSIBLE

AXA Philippines (AXA), the enterprises (SMEs) in the rural Looking back, your bank Operating expenses, excluding Metrobank’s P60 billion stock group’s insurance arm, has areas where business growth continued to grow at a time taxes and licenses, increased rights offering in April and established close to a hundred and returns can be more of volatility both globally and at a slower pace of 10% to bond issuances in the fourth branches nationwide and has attractive. locally. The discipline and Looking back, your P44.9 billion. Manpower-related quarter were all landmark installed more than 800 AXA dedication of our employees, costs grew by 11% to P22.4 transactions, and were largely Advisory corners in Metrobank the bank’s best asset, enabled billion, while the balance was oversubscribed, once again and PSBank branches. AXA Going forward, us to achieve our commitments spent in support of the bank’s proving the strength of the ended 2018 with P3.0 billion Metrobank’s focus will to our stakeholders. With bank continued continuous systems and process Metrobank franchise. in net income, and some that, I would also like to improvement efforts. 1.3 million customers with continue on improving thank our clients, partners, This strong performance flowed various individual and group customer experience, and stakeholders for your to grow at a time Our branch network was through its subsidiaries. life insurance, as well as general unwavering support and trust in largely steady at 957, in line Philippine Savings Bank insurance products through operational efficiency, Metrobank. Rest assured, you with our strategy of optimizing (PSBank), the thrift-banking its non-life subsidiary, Charter and people development. can always count on us to stay of volatility both technology and gradually shifting arm of the Metrobank Group, Ping An Insurance Corporation true to our promise of keeping towards e-channels. We believe registered a net income of P2.7 (CPAIC). 2018 also marked While there are many you in good hands. that our existing network is billion in 2018, translating to a the first time that CPAIC challenges in the horizon, we globally and locally. strategically located across the return on equity of 11.4%. Total started operating under the are optimistic about the growth country, with the majority in the gross loans grew by 7% year-on- AXA Philippines brand name. prospects for 2019 given our provinces and in high growth year to P157 billion, while total country’s stable economic areas. Overall, we are focused deposits went up 6% to P201 First Metro Investment fundamentals. The continuous The discipline and on efficiency gains through billion. PSBank continuously Corporation (FMIC) maintained increases in government and better productivity, innovations, showed improvement in its strong standing in the investment spending should FABIAN S. DEE and digital transformation. operating efficiencies while investment banking community. keep domestic economic President dedication of our delivering on its commitment FMIC led and participated growth above the 6% level. The Asset quality metrics remained to provide simple and reliable in various debt and equity government’s infrastructure largely benign even with the banking services coupled with raising deals in 2018, ending program will help sustain the employees, the bank’s consistent strong loan growth excellent customer service the year with P503 million in economic expansion, with seen in recent years. Non- through a culture of innovation. net income. The Company the elections slated in May performing loans ratio stood PSBank’s footpint spans 250 continued to reap various local 2019 providing the added at 1.2%, while NPL coverage branches and 575 ATMs and international recognitions, boost to growth. Furthermore, best asset, enabled hovered at 105% by yearend. nationwide. including Best Equity and Best consumption spending M&A House awarded by Alpha is expected to be higher By all accounts, it was a Metrobank Card Corporation Southeast Asia. compared to last year amid the us to achieve our milestone year for your bank. (MCC) kept its leadership in sustained easing in inflation. Total resources reached a new the credit card market, ranking ORIX METRO’s total new all-time high of P2.2 trillion, second in terms of receivables bookings amounted to P34.9 We see competition in the commitments to our while total equity at P283.0 and third in total number billion in 2018. Net income was banking industry to persist as billion. Capital ratios were of cards-in-force, based on reported at P1.3 billion, while lenders compete for deposits comfortably above regulatory data from the Credit Card return on equity hit 17.5%. and alternative funding sources. requirements, with total capital Association of the Philippines The Company ended the year Lending activities will likely not stakeholders. adequacy ratio at 17.0% and (CCAP). MCC reported strong with 103 branches, about 90% grow as fast as in previous years, Common Equity Tier 1 ratio at growth in 2018, with return on of which are located outside with banks’ loan-to-deposit 14.6%. equity at 34.9%. Total assets Metro Manila. ORIX METRO ratios hovering above 80%. expanded by 10.4% to P82 intends to widen its footprint Signals of a reduction in reserve billion. In September 2018, in the countryside, catering requirement, however, can help MCC became a wholly-owned to small and medium-sized unlock liquidity and pump prime subsidiary of Metrobank. the domestic economy.

6 7 THE FUTURE MADE POSSIBLE

BUILDING A SUCCESS-DRIVEN FUTURE Metrobank’s push for a success-driven future brought us historic milestones in 2018. Our various fund raising activities this year will sustain the continuing expansion of our loan portfolio, support the bank’s capital expenditures programs, and provide capital to take advantage of any growth opportunities.

We successfully completed the biggest capital raising exercise in our bank’s history with the P60 billion rights issuance in April 2018. The stock rights offer received strong support from a broad spectrum of investors showing a vote of confidence on the bank’s overall strategy and prospects.

Passion for Results We pivoted to the future and made it a reality. You are, as always, in good hands. This is how we make the future possible. Having the drive and dedication to exceed goals and expectations and by continuously aiming for growth, we deliver only the best results.

8 9 THE FUTURE MADE POSSIBLE

In 2018, Metrobank bourse also marked We help foster financial to fund its infrastructure cards in force. In September will help provide additional these partnerships, we fortified equity financing requirements. inclusion among Filipinos projects and public spending. 2018, Metrobank Card revenues and access to new our relationships with corporate This allows the bank to achieved a first for the first corporate bond through the various deposit Metrobank participated in Corporation (MCC) became customers in the consumer clients and the enterprises that participate in the promotion of and investment products we the government’s maiden a wholly-owned subsidiary segment. Our cards bring benefit from their support. sustainable business practices Philippine lenders as listing under PDEx’ new offer such as these LTNCDs issuance of Panda bonds, the of Metrobank with the full increased spending power and the broadening of economic we issued and listed the trading system provided and bonds. While these renminbi-denominated debt acquisition of the remaining and worldwide purchasing Notable large corporate deals inclusivity. products are open to both sold in China by a foreign issuer. 20% stake from its previous convenience for our users. We include the P11 billion bilateral first ever bank-issued by Bloomberg, the institutional and retail investors, Metrobank was the lone major partner. seek to provide the best cards term loan facility for the Metrobank also extended a bonds under a newly Bloomberg FIQ Trading these product offerings gave Philippine lender to support the and payment solutions that suit Philippines’ oldest conglomerate. P2.5 billion, five-year term access to a broader spectrum government’s historic issuance. This development supports our customers’ lifestyle. The facility will be used for loan to the local arm of a implemented set of System. of investors, providing various Metrobank’s growth strategy to the conglomerate’s diversified multinational company for its guidelines by the Bangko investment options especially Defying Limits maximize operational efficiencies Partnering for Progress interests in power, infrastructure expansion initiatives. It was a To diversify its funding sources, to the retail segment and in the between the Parent Bank and networks and services, water, follow-on transaction from five Sentral ng Pilipinas. The the bank also issued one of the process help them achieve their Our credit card business has MCC, opening opportunities to Metrobank financed the industrial technologies, education, years ago when Metrobank P10 billion fixed rate Peso- biggest long-term negotiable financial aspirations. remained one of the leading collaborate and improve synergy expansion plans of major healthcare and international extended a loan facility to fund certificates of deposits payment solutions in the while remaining fully committed Philippine companies, which operations. Metrobank has the construction of one of the denominated bonds listed (LTNCD), raising P8.68 billion Beyond the bank’s fundraising Philippines, the second biggest to deliver superior products and in turn sponsor projects that consistently partnered with the country’s biggest manufacturing and drew over 6,000 retail activities, we supported player in terms of receivables services to its customers. help fuel the growth of the company and its subsidiaries for plants in Batangas. on the Philippine Dealing investors in a widely participated the Philippine government and third in total number of Metrobank’s full ownership broader economy. Through their capital expenditure and & Exchange Corp. (PDEx) and successful exercise.

10 11 THE FUTURE MADE POSSIBLE

Metrobank is a financial solutions provider, which offers a wide range of financial products and services to cater to the varying needs of different client segments. AWARDS DEALS

Financial Markets Segment local currency fixed income Institutional Banking Sector Bonds and LTNCD Issuances instruments. • Awards : The Asset Triple A Treasury, Trade, Supply 1) Landmark issuance of PHP 8.68 Billion LTNCTD due Treasury Group is focused Chain and Risk Management Awards: Best Service 2024 on servicing customer • Treasury Provider – Supply Chain – Rising Star 2) Trailblazing issuance of PHP 10 Billion 2-year MBTC requirements through the • Markets Sales • 2 Major Deals : PHP 2.5 Billion Bilateral Loan with Peso Bond due 2020 sales and trading of global • Private Wealth Pepsi and PHP11.0 Billion MBTC-Ayala Bilateral Loan 3) Successful Reissuance of PHP 18 Billion 2-year MBTC markets products as well as • Institutional Investors Peso Bond due 2020 providing support for the Coverage Financial Markets Sector 4) Participated in the ROP Panda Bond Issuance -- core banking business through Treasury Group Maiden issue of the Philippine government in the asset and liability management. Retail Customer Segment • 2018 Philippine Dealing System Annual Awards Night China (The only major Philippine bank to support the Treasury derives its revenue o Cesar E.A. Virata Award - Best Securities government issuance) primarily from fixed income, The Bank’s branch banking House for 2017 Bank Category foreign exchange, derivatives business offers a wide range o Top Dealing Participant (Corporate Securities) and interest rate differential of products and services from o Top 5 Spot Foreign Exchange Dealer activities. The customers of the demand deposit accounts, savings (Rank 2nd) Bank’s Treasury Group include and time deposits to lending o Most Active Bank in FX Spot Matching NOTABLE PRODUCTS domestic and offshore banks, facilities. In addition, dedicated o Top Brokering Participant for Retail insurance companies, financial trade finance and foreign LAUNCHED in 2018 Transactions Trust Banking Group institutions, corporations, SMEs, exchange facilities are offered • The Asset Benchmark Research Awards • Launch of Dollar-denominated Unit Investment Trust high net worth individuals and at certain branches where such o Top Sellside firm in Corporate Bonds – Rank 1 Funds: Metro$ S&P 500 Feeder Fund, Metro$ MSCI retail companies. services may be required. o Top Sellside firm in Government Bonds – Eurozone Feeder Fund, Metro$ MSCI Japan Feeder Rank 3 Fund, Metro$ US Investment Grade Corporate Bond Markets Sales Group handles Consumer banking services o Top Investment House – Rank 3 Feeder Fund all financial markets dealings are provided through the Bank, • Fund Managers Association of the Philippines (FMAP) • Completed the short-term dollar options through of the Bank’s different PSBank and Metrobank Card o Best Fixed Income House – Rank 2 the availability of the Metro$ Money Market Fund customer segments. It is Corporation. The Group’s o Best Fixed Income Trader Local Currency – and Metro$ Short Term Fund Institutional Banking Segment In addition to term loans comprised of licensed principal consumer banking Rank 2 sales traders, investment products and services include and revolving credit facilities, o Best Fixed Income Trader Foreign Currency – Retail Banking Sector specialists, structurers and bank deposits, home mortgage Rank 2 Metrobank provides corporate the Bank also offers deposit • Cardless Withdrawal allows you to withdraw cash securities brokers. Revenues loans, vehicle finance and o Best Fixed Income Salesperson – Rank 2 and commercial banking products, bills purchase facilities, from any Metrobank or PSBank ATM without using are generated from fees and consumer finance, including o Best Fixed Income Strategist – Rank 2 products and services to a payment remittances, and your Metrobank ATM Card. spreads from fixed income, credit cards, and remittances. • The Bureau of The Treasury (BTr) significant number of large and foreign exchange transactions, • Implemented the following products via Mobile middle market corporations as well as a range of trade foreign exchange, derivatives, o GSED Market Maker funds, structured products and The international branches of Banking: and their subsidiaries, as well finance products and services • The Asian Banker Transaction Awards 2018 InstaPay the Bank, together with those of o is an electronic fund transfer (EFT) as to SMEs in the Philippines, including letters of credit other alternative investments. o The Best Foreign Exchange Bank in the its subsidiaries and its associates service that allows customers to transfer through a multi-channel (LCs), standby LCs, export Philippines which act as remittance centers, funds almost instantly between accounts of distribution system, including its advances and the discounting of Private Wealth Division covers are geared towards the handling banks supervised by the BSP and non-bank extensive branch network. The commercial bills. high net worth clients who of remittances to the Philippines, e-money issuers in the Philippines. The service Bank believes it is the leading generally have a higher level of assets under management, and as well as supporting the trade is available 24x7, all year round. bank in the Philippines for Dedicated teams focused on PesoNet and capital flows of the country. o is a batch electronic fund transfer middle-market Filipino-Chinese product development, sales, provides portfolio management, Remittances are now being system, which is the first Automated Clearing businesses in terms of deposit- implementation and customer investment advice, insurance, wealth and tax planning through distributed in the Philippines House (ACH) under the National Retail taking and lending. care ensure the seamless set- Payment System (NRPS) of the BSP. The up of the client’s collections, various product providers to its not only through the Group’s 957-strong domestic branches fund transfer and/or payment instructions will The Bank offers both Peso- payment and liquidity solutions. customer base. and 2,372 ATMs nationwide, be processed in bulk and cleared at batch denominated and foreign By doing so, the Bank is able to but also through its local intervals. currency (primarily U.S. capture the operating accounts Institutional Investors Coverage remittance payout partners, Dollar-denominated) loans to of its key clients, as well as that Division is the relationship such as pawnshops, extending its corporate and commercial of its client’s own customers management unit for the its remittance services outside banking customers. It is the and suppliers. segment’s institutional investor normal banking hours. Bank’s policy to extend foreign client base, and has successfully currency loans primarily to • Corporate Banking established new-to-bank • Branch Banking customers who have foreign • Commercial Banking relationships with foreign • Consumer Lending currency revenues or who are • SME Banking institutions which invest in • Remittances otherwise hedged. • Institutional Transaction Banking

12 13 EMPOWERING PROGRESSIVE FILIPINOS Metrobank is a reliable credibility, it opens avenues for our electronic channels, for these SMEs to reach such as ATMs and Cash Accept partner in promoting investors and access capital, and Machines (CAM). Likewise, we eventually contribute to overall have invested in our internet nation-building, fully economic growth. and mobile banking platforms, committed to invest in a constantly looking to innovate To provide better banking our systems and provide progressive and inclusive experience to our customers, customers with various channel future for Filipinos. we have taken several steps options to suit their needs. in improving our different The Bank is now 100% EMV- We take pride in our touchpoints. compliant for its issued cards initiatives to support the and ATMs, reducing potential capital requirements of new At our branches, bank forms risk incidents for account and promising businesses. have been automated for faster compromise or fraud among Throughout the year, we opening of additional accounts cardholders. conduct awareness campaigns by existing customers. Branch such as Kapihan sessions, to processes are continuously All these efforts work towards reach out to the SME market reviewed and streamlined the continuing drive to and provide financial advice to to reduce queuing time and understand customer needs, both existing and new-to-bank improve customer experience. provide the appropriate solutions customers. As we help them The same continuous to address them, and help clients build their credit history and enhancements are being done drive their business forward.

COMMITMENT TO CUSTOMER SERVICE As an institution built on the values of service and excellence, we put our customers at the heart of the business. We strive to be the best service provider to our clients by diligently knowing them and providing the appropriate solutions that will attend to their needs. This is reflected in the products, services, and overall customer experience we offer.

14 15 THE FUTURE MADE POSSIBLE

PUTTING THE

Voice of the Customer the community, constantly Program reinforcing a customer-centric strategy. The Bank undertakes Voice of the Customer initiatives Various initiatives were taken by CUSTOMER to continuously listen to its the Bank to constantly remind customers to improve over-all our employees of the values of customer experience in our the Bank, represented by the channels and products. acronym PICTH, that every • Net Promoter Score (NPS) employee should live by. is an annual study done to gauge customers’ overall Passion for Results FIRSTIn Metrobank, customer maintenance of theALWAYS Bank’s Effective Recourse / Despite the increase in the commitment and loyalty to Integrity, protection and overall sound Customer Protection Handling of Customer number of complaints received, our brand Teamwork experience is a collective Risk Management System which Concerns the Bank has managed to • Customer Satisfaction Commitment to Customer and shared responsibility is integrated into the overall improve its performance in (CSAT) is a monthly Service of everyone, from the framework of its entire product A critical component of the 2018 vs. 2017 in terms of survey to get immediate Heart for Community Bank’s Board of Directors, and service life cycle, which Bank’s Customer Protection investigating and providing customer feedback at to Management, and to includes oversight function in Program is providing its resolution to the complaints specific touchpoints, such as The PITCH values were deeply all employees. It is part of the execution of CX projects. customers accessible and within the Bank’s committed branches and our Contact embedded into Metrobank Metrobank’s culture and is being hassle free channels with turnaround time Center. This enables the Academy’s training programs reinforced by the Customer The Service Excellence which they could communicate Bank to immediately address such as new employees’ Protection Training Program. Group works with business their inquiries, concerns and Better Customer pain points raised by our orientation, officer development and operational units to feedback. These are in the Experience (CX) at customers. programs and leadership and Key entities have been achieve excellent customer form of 24/7 Contact Center Touchpoints • Mystery Shopping is a bi- management courses through identified who will be ultimately experience through Voice which handles calls and e-mails, annual survey to check on reflection and case studies. responsible for the overall of the Customer Program, Social Media (Facebook), Several initiatives were the consistency of service strategy and oversight of process efficiency initiatives, MetrobankDirect Online and taken to provide better delivery at the branches. The value on Commitment the Bank’s desired customer performance monitoring on Mobile Banking. banking experience of our to Customer Service is experience. customers through its different The Bank is continuously upheld in the various training Furthermore, the Bank has touchpoints. looking for opportunities to activities of Metrobank implemented the Customer immediately draw-out feedback Academy. An initiative to drive Board of Directors (BOD) Incident Management Policy At the branches, automation Machines (CAMs). More so, mainly through the Bank’s from customers in all customer this and be able to deliver Executive Committee (ExCom) and System, which standardized of forms has allowed for faster touchpoints. exceptional service is using the handling of customer opening of additional accounts the Bank is now able to resolve social media account which President the complaints related to their provides customers with tips on the acronym HEART which complaints to ensure that by existing customers. Processes Sustaining and guides Metrobankers what to these are addressed within a at the branch are continuously transactions faster. how to protect their accounts and personal information Reinforcing our say in their everyday service Enterprise Services Sector (ESS) set turnaround time through being streamlined to be able Customer Service interactions or complaints centralized logging and to lessen waiting time of the The Bank is now 100% EMV which causes unauthorized Customer Experience Committe compliant in both its issued transactions. Culture handling situations with monitoring. With this, the customers at the branch and clients. In 2018, HEART was (CXCom) Bank is able to gain valuable accommodate more customers cards and ATMs. This means Service Excellence Group that the risk of our customers Further, the Bank implemented Metrobank remains dedicated incorporated in the You’re in customer insights, identify trends with better quality time from to fulfilling its vision to be the Good Hands Customer Service and address recurring incidents, our Branch Customer Service being compromised using their additional measures to ensure Metrobank debit card for ATM compliance with the Data best bank for all stakeholders program for newly hired The Board of Directors key customer metrics, effective improve its products and Reps and Officers. – from its customers to employees and officer-trainees. (BOD), through the Executive organization structure and skills services for better customer withdrawals and card-present Privacy Act. Committee (ExCom), provides development. experience. For e-channels, solutions were purchases will be significantly the effective oversight of the taken to reduce the number reduced. HEART EVERYDAY SERVICE INTERACTIONS COMPLAINTS HANDLING Bank’s Financial Customer The Bank’s Customer In 2018, total complaints of complaints experienced Protection program and Protection Program follows increased by 19% which is by our customers specifically Consumer Protection H implementation in accordance the set standards which are in line with the increase in at ATMs and Cash Accept Heartfelt Greeting Heartfelt Greeting With the constant increase of to BSP Circular 857. reflected in its core principles transaction volumes. E Empathize Empathize – inherent into the Metrobank e-fraud customer concerns – be A The Senior Management, corporate culture, enhancing it through online purchases or Act Apologize 2018 2017 2016 transactions via ATM, online and together with the Customer further its defined governance R Relationship Building Relationship Building Experience Committee framework while addressing Total Complaints 89,849 75,348 69,229 mobile banking, the Bank has T (CXCom) are responsible conflicts that are inimical to the been continuously implementing Thank the Customer Thank the Customer Complaints to Transaction Ratio 0.035% 0.034% 0.034% for the development and interests of its customers. financial education campaigns

16 17 TRANSFORMING THE WORKPLACE We continuously attract good talent and motivate employees to do their best. Metrobank’s success hinges on committed, highly-motivated, and productive employees. Through our talent management and development and employee engagement programs, we keep our workforce constantly involved and on board in our commitment to deliver the best service to our customers.

Teamwork We not only care about the work that we do, but more importantly, we care about the people we work with. Working in a culture of collaboration and mutual respect is the key to having an effective workforce. The success of the bank is mostly made possible by the hard work and dedication of our people.

These outstanding Metrobankers serve as our inspiration as we live on the tradition of excellence in which our institution is founded.

In photo are the Winners of the Asian Local Currency Bond Benchmark Review - Best Individual category: Kael Pasimio (center), Gab Liboro (right), and Beatrice Yatco (left).

18 19 THE FUTURE MADE POSSIBLE

We have strengthened the and gather constructive embed the Metrobank pledge 2019 to 2021. The negotiations or appointment to the role Retirement and and retirement. The plan was of all employees across ten (10) development of Metrobank’s of fidelity to our core values: were carried out in the true is approved by Manpower Succession Policy approved by the Bureau of Standards of Conduct. future leaders through a feedback based on Passion for Results, Integrity, spirit of fairness and partnership Committee (MANCOM), The process of identification Internal Revenue on March It will be disseminated to all Recruitment Transformation Teamwork, Commitment to between management and Nominations Committee and developing leaders has 2014. employees in January 2018. Lab to obtain the best talents at new employees’ early Customer Service, and Heart Union leadership. (NomCom) and the Board. been institutionalized to The compulsory retirement of The employees are required to every level of the organization. impressions. for Community (PITCH). These objectively assess employee’s Bank employees occurs at the submit an acknowledgement This is a team-driven initiative values are the cornerstone of Senior Management Performance potential to assume higher age of 55 years old or 30 years receipt that they have read, to improve recruitment Employee Engagement who we are as a team and as Selection Assessment responsibilities, especially to of service, whichever comes first. understood and will comply operational process for better We believe that keeping our an institution. By living these The Bank has job descriptions Management ensure succession planning. This with the Code. quality of hires and faster employees motivated and values, we define the formula for the key positions, and The Bank’s Performance is contained in the November Code of Business Further, the Code of Conduct turnaround time. engaged will inspire them to do of the bank’s and employees’ assesses the qualifications of any Assessment and Management 2017 Board approved HR Conduct and Ethics is discussed with the new well at all times, and to stand by success. candidate for the role. System (PAMS) measures policy on Ascend – Leadership The revised Code of Conduct employees of the bank We have also launched our brand promise of keeping the employee’s performance Development Program. was approved by the Board during their New Employee’s those we serve in good hands. We successfully completed Each candidate undergoes a contribution based on clearly The Bank provides a Retirement on November 22, 2017 and Orientation (every 1st and 16th a refreshed employee This employee journey starts our Collective Bargaining series of interviews by the defined targets, goals and Plan for its employees and is set to take effect by January of the month). There are regular onboarding program with with embedding our core Agreement between the Bank Line Head, HRMG, President, standards. employees’ beneficiaries in 1, 2018. The revised Code of advisories about the Code and values in everything we do. We and the Employees’ Union for Chairman and the appropriate case of the employee’s death, Conduct is anchored on the standards of right behavior that a facility to encourage had a bankwide campaign to the period covering the years board committee(s). Any hiring permanent total disability Bank’s Core Values. Further, it are shared during training and defines the expected behavior on various units’ meetings.

We live in changing times. As technology continues to evolve and empower consumers, brands, and enterprises, it also motivates habits, behaviors, and methods to change. Metrobank recognizes the imminence of change, hence the need to adapt and grow. We want to take advantage of this tipping point and capitalize on technology as a critical component in our collective efforts to achieve our overall mission.

Currently, 95% of the entire Metrobank population has already signed-up for Workplace. Workplace is a communication platform to engage employees and drive culture. It enables seamless top-down communication and knowledge-sharing and promotes openness, feedback and diversity to empower us to better engage Metrobankers and drive culture change.

20 21 THE FUTURE MADE POSSIBLE

ORGANIZATIONAL

Gender Distribution

SO JO RF TOTAL %AGE Male 211 2051 2234 4496 34.99% STRUCTURE Female 268 3452 4635 8355 65.01% Total 479 5503 6869 12851 100.00%

Age Distribution – Active Employees Board of Directors

AGE BRACKET SO JO RF TOTAL %AGE < 25 0 227 2,925 3,152 24.53% 1 840 2,181 3,022 23.52% 26-30 Trust 31-35 9 1,293 905 2,207 17.17% Office of the Banking 36-40 28 813 254 1,095 8.52% President Group 41-45 98 964 170 1,232 9.59% 128 959 292 1,379 10.73% 46-50 Risk 51-55 134 360 142 636 4.95% Management Group > 55 81 47 0 128 1.00% Total 479 5,503 6,869 12,851 100.00% Average Age = 34.01 Institutional Retail Financial Enterprise Financial Internal Audit Tenure Distribution – Active Employees Banking Sector Banking Sector Markets Sector Services Sector and Control Sector Group EVP Mylene A. EVP Richard Benedict S. SEVP Fernand Antonio A. SEVP Vicente R. Cuna, SEVP Joshua E. TENURE BRACKET SO JO RF TOTAL %AGE Caparas, 54 So, 53 Tansingco, 52 Jr., 56 Naing, 58 SVP Lita S. Tan, 55 < 1 48 408 1,762 2,218 17.26% 2-5 47 909 3,008 3,964 30.85% Compliance 6-10 64 1,224 1,214 2,502 19.47% Division 66 900 274 1,240 9.65% 11-15 Special Strategic Digital International 86 787 263 1,136 8.84% Accounts Credits Planning 16-20 Management Banking Offices 21-25 72 963 264 1,299 10.11% Anti Money 26-30 59 271 84 414 3.22% Laundering Division > 30 37 41 0 78 0.61% Total 479 5,503 6,869 12,851 100.00% Average Tenure = 9.27

Functional and administrative Administrative only, reports to the respective Board committees

22 23 ADVOCATING SUSTAINABILITY Heart for Community is one For over 16 years, our Purple of Metrobank’s core values and Hearts Club (PHC) has corporate social responsibility encouraged volunteerism (CSR) is integral to what we do. among our employees. PHC Our CSR arm, the Metrobank has 61 chapters nationwide Foundation, continues to make with over 8,200 employee- strides in our advocacy for volunteers across units and environmental sustainability, branches throughout the empowerment through country. education, promotion of good health, and recognition of PHC’s flagship program, You’re outstanding Filipino citizens in in Green Hands, focuses on the community. environmental issues and activities that include tree In 2018, Metrobank planting, seedling preparations strengthened its CSR and coastal clean-ups. In commitment anchored on 2018, Metrobank partnered our core value of Heart for with environmental group, Community. It is a continuing Haribon Foundation, for coastal program that engages clean-ups at the Las Piñas- Metrobank employees to help Parañaque Critical Habitat and make lives better through an Ecotourism Area. Metrobank embedded culture of giving also supported the Buhay back to society. Punlaan Tree Nursery Program for tree nursery maintenance and seedling care at Lumban, Laguna.

Metrobank collaborated with GT Foundation, Inc. and other subsidiaries of the Metrobank Group such as Toyota Motor Philippines Foundation for a group-wide tree planting activity at the Makiling Botanical Gardens in Los Baños, Laguna.

Heart for Community Promoting the welfare of the Filipinos and the community we belong to has always been a part of what we do. Giving back is never an option. It is a responsibility. We embrace every opportunity to share our success with many people to inspire them in achieving their full potential. As an active participant in nation-building, we continuously strive to create meaningful contributions through our products and services.

24 25 Metrobank’s Adopt-A-School Bags-of-Blessing is our These individuals Program continued last year as nationwide gift-giving project well as Kwentong Bata Beyond initiated by the late Metrobank exemplify the core values Storytelling. The latter is our Group Chairman Dr. George flagship literacy program that S.K. Ty and his family during of the institution: Passion encourages values formation Chinese New Year. This is an for Results, Integrity, and reading and writing eagerly participated program by skills development through Purple Hearts Club volunteers Teamwork, Commitment storytelling for pre-school across Metrobank. to Customer Service, and children. Metrobank Foundation’s annual the Heart for Community. Our bloodletting activity, search for Outstanding Filipinos Their lives are inspiring Dugong Metrobank, continued that recognizes exemplary to draw volunteers and guests teachers, soldiers and police lessons for those of us UPLIFTING to donate blood to those in officers continues to be one of who share in the mission need. We collaborated with the company’s most successful hospitals and institutions such programs. The awardees were to committedly serve as Manila Doctors Hospital and recognized during Metrobank’s our country and fellow FILIPINO LIVES the Philippine National Red 56th anniversary celebration Cross in these activities. in the presence of clients, Filipinos. stakeholders, employees and social development partners.

26 27 THE FUTURE MADE POSSIBLE BANKING WITH

INTEGRITYstructures and processes that The Corporate Governance Metrobank recognizes would ensure that our business Manual serves as the guidebook strong corporate is conducted ethically and in the implementation of the governance as key element comply with applicable laws corporate governance rules and regulations. Our staunch and regulations. It is periodically in sustaining long-term commitment to safeguard updated for relevance and growth and success of the long-term best interests alignment with new regulatory of our shareholders and all issuances and best industry the organization. The other stakeholders translates practices. The Board of Bank upholds the highest into a corporate culture that Directors, Management, embraces good governance Officers and Staff of the Bank standards of corporate practices and fiduciary duties fully commit themselves to governance principles that manifested from the Bank’s the principles and practices Board of Directors, Senior contained in the Manual and underpin the mechanism Management and all Employees. acknowledge that the same will in ensuring optimization of guide them in the development Corporate Governance and achievement of the Bank’s performance, sustainable Manual and Codes of corporate goals. value creation and Conduct The Bank ensures that its protection of interests of all Metrobank has a strong Directors and Employees our stakeholders. corporate governance embrace the Code of Conduct framework that is embodied which sets forth the standards in the Corporate Governance for professional and ethical The Bank’s corporate Manual which sets out the behaviors expected of them governance is anchored on the roles and responsibilities within when dealing internally and pillars of integrity, accountability, the Bank and the practices externally. The Bank’s Codes of fairness and transparency and procedures that we adopt Conduct are anchored on its observed across all our to ensure we govern our operations and dealings which organization to the highest provides the strong foundation standards of good governance to achieve our goals. principles. We support adoption of

INTEGRITY For over five decades, we remain to be your most trusted bank. And we will continue to be in the years to come. Everything that we do is anchored upon the highest level of professionalism and ethics. Our adherence to strong moral principles will continue to make us worthy of your trust.

28 29 THE FUTURE MADE POSSIBLE

core values otherwise known managements’ performance strategic directions of the Bank. The independent directors are that dissenting views can be includes Bank’s By-laws, Articles money laundering, sustainability Board Meetings as the PITCH which stands against set targets and ensures The Nominations Committee independent of management expressed and discussed within of Incorporation, Corporate reporting and other relevant for Passion for results, Integrity, appropriate controls and assesses the qualifications of and major shareholders. They the decision-making process. On Governance Manual, Code of changes/developments. The Board meets regularly to Teamwork, Commitment to systems of checks and balances the nominees guided by our have not engaged and do not the other hand, the President Conduct and Ethics, general discuss performance of the customer service, & Heart for are in place and operating By-laws, Corporate Governance engage in any transaction with exercises direct and active responsibility and specific duties Retirement & Succession Bank, strategies and other the community and adhere effectively. The Board sets the Manual and relevant regulations the institution or with any of its management of the business and responsibilities of the Board matters requiring board only to the highest standards tone of good governance from of BSP and SEC and ensures the related companies or with any and operations of the Bank, and of a director. Directors are To promote dynamism, attention, decisions and of fairness, accountability and the top as well as corporate optimal mix of skills and talent of its substantial shareholders, conducting the same according required to certify under oath leadership continuity and approvals. The organizational transparency. values, codes of conduct and and balanced memberships of whether by themselves or to the orders, resolutions and that they have received copies relevance, it is always important meeting of the Board is other ethical standards of the Board. When identifying or with other persons or through instructions of the Board and and fully understand and accept to have an effective succession held immediately after the The Corporate Governance appropriate behavior for itself, screening potential candidates, a firm of which they are according to his own discretion the general responsibility and planning. As a general rule, Annual Stockholder’s Meeting. and Compensation Committee the senior management and the Committee may consult partners or a company of wherever the same is not specific duties. The certification starting election of the Board Board-level committees are and the Human Resources other employees. whatever resources it deems which they are directors or expressly limited by such orders, is also submitted to BSP in 2018, no Director may reconstituted during the Management Group ensure appropriate, including but substantial shareholders, other resolutions and instructions. He together with a certification stand for re-election following organizational meeting. Regular observance and adherence of The board members have not limited to, referrals from than transactions which are communicates and implements that he or she has all the the calendar year in which Board meetings are held every the Directors and all employees an independent access to existing directors and officers, conducted at arm’s-length and the vision, mission, values and prescribed qualifications and that Director turned 75 second Wednesday of each to the Codes. Breaches management and the corporate recommendations from a third- could not materially interfere overall strategy of the Bank none of the disqualifications years of age. However, on month. Special meetings may are subject to appropriate secretary, as well as unfettered party search firm or suggestions with or influence the exercise and promotes any organization after their election. the recommendation of the be called at any time by the disciplinary actions in access to information and from stockholders. They may of their judgment. change in relation to the Nominations Committee, Chairman, or, in his absence, by accordance with the principles records of the Company to also make use of external same. He exercises general On a continuing basis, the the Board may waive this the Vice Chairman, or pursuant of due process. To strengthen fulfill their responsibilities. databases of the Institute of The names of the directors superintendence and direction Bank provides suitable funding requirement as to any Director to the written request of any the implementation of good Corporate Directors or other serving as at 31 December over the other officers and the and appropriate training and if it deems a waiver to the four directors. governance and development Board Composition professional search firms. Only 2018 and their biographical employees of the Bank and to development of the Directors, best interest of the Company. of culture within the Group, nominees whose names appear details are set out on pages see to it that their respective including the Corporate In addition, certain persons, In 2018, the Board had 16 training of employees regularly The Bank’s Board is composed in the Final List of Candidates 52-53. duties are properly performed. Secretary, to enable them such as Filipino citizens with meetings with the incumbent include among others, topics on of twelve directors, ten of shall be eligible for election as to properly discharge their recognized stature, influence directors attending more than compliance, good governance whom are non-executive director. The Chairman of the Directors’ Orientation & duties and better serve our and reputation in the banking 93% of all meetings. and ethics. The Board-approved directors of which five are Board and the President Continuing Education stakeholders. In maintaining and business community and Corporate Governance Manual independent directors. Directors are expected to their professional proficiency, whose business practices Independent and non-executive and Codes of Conduct are Diversity in the Board is a key devote sufficient time to The roles of the Chairman of The Board of Directors as the directors are encouraged to stand as testimonies to good directors likewise meet once a available in the Bank’s intranet consideration. The members diligently and efficiently perform the Board and the President a group and as individual continuously enhance their skills, corporate governance, are year with the external auditor and posted in the Bank’s are experts in their field and their duties and responsibilities. are separate and held by two directors should have sufficient knowledge and understanding exempted from complying with and heads of internal audit, website for public access. bring with them diversity in As a rule, the non-executive different people to foster an knowledge relevant to the of the activities that the Bank is the requirement. compliance and risk without age, ethnic background, skills directors of the Board may appropriate balance of power, Bank’s affairs to provide engaged in or intends to pursue any senior executive present. In Board of Directors and experience. All directors concurrently serve as directors increased accountability and effective governance and as well as the developments in Succession or filling up 2018, such meeting was held on were selected based on their to a maximum of five publicly better capacity for independent oversight. the banking industry including vacancies in the Board is February 19, 2018. Metrobank is headed by a qualifications such as integrity, listed companies, making sure decision-making by the Board. regulatory changes through addressed in the Bank’s By-laws. competent Board that has probity, physical & mental however that the shareholders’ Each has clearly defined All first-time directors are continuing education. Any vacancies occurring in The Office of the Corporate collective responsibilities for fitness, competence, relevant legal right to vote and be voted responsibilities in the Bank’s By- required to attend a special the Board may be filled by the Secretary which plays a leadership and control of education, financial literacy and directors remains inviolable. laws and CG Manual. seminar on corporate In 2018, the Bank arranged vote of at least a majority of significant role in supporting the Bank’s affairs ensuring its training, diligence, knowledge governance for board of a special training/seminar the remaining directors, if still the Board in discharging long-term sustainability and and experience. Conversely, the independent The Chairman of the Board directors and undergo the conducted by Institute of constituting a quorum. Any its responsibilities prepares success. The Board leads the directors, as a rule, may serve provides leadership in the orientation program after Corporate Directors (ICD) vacancy that occurs by reason the agenda and sends out process of developing and Any stockholder may submit for a maximum cumulative Board. He ensures effective they are selected and before attended by all directors and of removal by stockholders, notices and materials at least reviewing the Bank’s strategies nominations for directorial term of nine years. After which, functioning of the Board, their first Board meeting. senior management of the expiration of term or increase five business days before the annually. It oversees the overall positions to the Nominations the independent director including maintaining a The orientation program for Bank to apprise them on the in the number of directors shall meeting dates. It also prepares governance framework, Committee per the Bank’s shall be perpetually barred relationship of trust with first-time directors shall be significant developments in be filled by the stockholders and distributes the minutes of approves and oversees effective By-laws. . The Committee from re-election as such, but Board members. In addition, for at least eight hours. Each corporate governance including in a regular or special meeting the previous meeting and keeps implementation of business screens the nominations based may continue to qualify for the Chairman ensures a sound new director is furnished subject matters on cyber called for the purpose. full minutes of all Board and and risk strategic directions to on its screening policies and nomination and election as a decision making process and with a Director’s pack which security, data privacy, anti- stockholder meetings. achieve objectives, monitors parameters, including among regular director. encourages and promotes others, alignment with the critical discussions and ensure

30 31 THE FUTURE MADE POSSIBLE

Corporate Governance and Compensation Committee

Adviser Dr. Placido L. Mapa Jr., Senior Adviser

Chairman Rex C. Drilon, Independent Director

Regular Members Arthur Ty, Chairman

Francisco F. del Rosario, Independent Director Board-level Committees Jesli A. Lapus, Independent Director The Board has the ultimate responsibility for the affairs of the Bank but may delegate some of its functions to enable the effective discharge of its duties. In 2018, the Bank had eleven board-level committees that assist the Board in the optimal performance of its roles and Corporate Atty. Donato V. Espino, Head, Compliance responsibilities. The committees have their own respective charters which set out their mandate, scope and working procedures and can Governance Officer Division be viewed at the Bank’s website. Information Technology Steering Committee The CGCC assists the Board of Directors in fulfilling its Adviser Arthur Ty, Chairman corporate governance responsibilities and in providing oversight Number of Shares Corporate Domestic Related % to Total Anti-Money Risk Governance Overseas Board Executive Equity Trust Audit Party Nominations IT Steering on the implementation of the Bank’s Compliance System. The Chairman Vicente R. Cuna, Jr., Director Board Name Outstanding Laundering Oversight and Banking Meetings Committee Investments Committee Committee Transactions Committee Committe Direct Indirect Shares Committee Committee Compensation Committee Committee Committee committee is tasked with establishing a formal and transparent Committee Regular Members Fabian S. Dee, President procedure in determining the remuneration of directors and Chairman (CC) (A) Arthur Ty 13,456,030 0.34% 15/15 7/7 3/3 4/5 (ED) 41/52 3/6 officers that is consistent with the Bank’s culture, strategy, Edmund A. Go, Director business environment and industry practice. Vice Bernardino V. Ramos, Head, Information Francisco C. (VC) (CC) Chairman 1,026,357 0.03% 14/15 3/3 Sebastian 46/52 6/6 Technology Group (NED)

President/ Domestic Equity Investments Committee Director Fabian S. Dee 650 0.00% 14/15 45/52 9/11 4/6 5/6 The ITSC provides governance and oversight in the (ED) Chairman Francisco F. Del Rosario, Independent Director management of the Bank’s IT resources. Its principal function Director Alfred V. Ty 15,121,879 0.38% 14/15 3/3 5/6 (NED) Regular Members Arthur Ty, Chairman is to ensure that IT strategies are consistent with the overall

Director Edmund (CC) (VC) business objectives. As an extension of the BOD, it shall 6,622 0.00% 15/15 11/11 4/6 (NED) A. Go 6/7 12/12 Francisco C. Sebastian, Vice Chairman supervise the IT Risk Management Program of the Bank and the Director Vicente R. (CC) 115 0.00% 14/15 45/52 4/5 (2) 1/3 development of policies, controls, and specific accountabilities (ED) Cuna, Jr 6/6 Alfred Ty, Director consisted with the Bank’s IT Risk Management Framework. It (CC) (CC) Independent Jesli A. Lapus 20,150 0.00% 14/15 12/12 5/5 11/11 11/11 Vicente R. Cuna, Jr., Director should regularly provide adequate information to the BOD

Rex C. (VC) (CC) (CC) regarding overall IT performance, status of major projects and Independent 1,430 0.00% 14/15 6/7 Drilon II 10/11 5/5 14/16 The Domestic Equity Investments Committee has been other significant issues related to IT risks. (CC) (VC) established to assist the Board in overseeing the development Independent Robin A. King 187 0.00% 15/15 15/15 11/11 11/12 (3) 16/16 and maintenance of the Bank’s domestic equity investments Francisco (CC) (VC) Independent F. Del 130 0.00% 14/15 4/5 6/6 policy and in monitoring its implementation by Management. Nominations Committee 3/3 13/15 Rosario, Jr.

Edgar O. (CC) Chairman Jesli A. Lapus, Independent Director Independent 100 0.00% 15/15 7/7 15/16 11/11 Chua 15/15 Executive Committee Director Solomon S. Regular Members Robin A. King, Independent Director 100 42,089 0.00% 15/15 4/4 (NED) Cua (1) Advisers James Go, Senior Adviser Edgar O. Chua, Independent Director NED-Non-Executive Director 1-Elected Director in April 2018 ED-Executive Director 2-Effective April 2018 Mary V. Ty, Assistant to the Group Chairman CC-Committe Chairman 3-Elected in October 2018 The Committee shall review and evaluate the qualifications of VC-Committe Vice Chairman Chairman Arthur Ty, Chairman A-Adviser all persons nominated to the Board as well as those nominated Vice Chairman Francisco C. Sebastian, Vice Chairman to other positions requiring appointment by the Board.

Anti-Money Laundering Committee Audit Committee Regular Members Fabian S. Dee, President Overseas Banking Committee Chairman Edmund A. Go, Director Adviser Cornelio C. Gison, Adviser Vicente R. Cuna, Jr., Director Chairman Francisco C. Sebastian, Vice Chairman Regular Members Arthur Ty, Chairman Chairman Edgar O. Chua, Independent Director Mary Mylene A. Caparas, Head, Institutional Banking Sector Regular Members Francisco F. Del Rosario, Independent Director Vicente R. Cuna, Jr, Director Vice Chairman Francisco F. Del Rosario, Independent Director Corazon B. Nepomuceno, Chief Credit Officer, Alfred Ty, Director Rex C. Drilon II, Independent Director Regular Member Robin A. King, Independent Director Head, Credit Group Alternate member Solomon S. Cua, Director Noel Peter Z. Yuseco, Deputy Head, Edgar O. Chua, Independent Director Chief Audit Executive Leo R. Fragante, Head, Internal Audit Group in the absence of Credit Group Fabian S. Dee, President Credit Group Head As an extension of the Board, the Audit Committee assists The Overseas Banking Committee shall assist the Board A Board level Committee tasked to assist the Board in fulfilling the Board in fulfilling its statutory and fiduciary responsibilities, The EXCOM shall primarily review and approve credit in its oversight functions over the operations and financial its oversight responsibility over the Bank’s AML Compliance enhancing shareholder value, and protecting shareholders’ proposals and credit policies within its authority and limits as performance of the overseas branches and subsidiaries, their Management to make sure that the Bank complies with the interest through effective oversight of internal and external audit well as provide recommendations or conditions to lending. The compliance with the rules and regulations of their respective provisions of the AMLA, as amended, its Revised Implementing functions, transparency and proper reporting, compliance with EXCOM may also act on other matters as delegated by the host countries and their adherence to the parent Bank’s Rules and Regulations (RIRR), and BSP regulations. laws, rules and regulations and code of conduct, and adequate stockholders, and the Board of Directors within its competence business and corporate governance policies as prescribed by the and effective internal controls. and in accordance with the By-Laws of the Bank. BSP and SEC.

32 33 THE FUTURE MADE POSSIBLE

Board Performance framework to provide ensure that same are reported not less favorable to the non-public information about The Bank’s Whistle Blowing Evaluation and Self- reasonable assurance that the to appropriate levels of Bank than those offered to any of the companies within Policy aims to guide officers Assessment Bank and its directors, officers management and to the Board others and subject to the the Metrobank Group or any and staff as well as other and employees comply with of Directors through the Bank’s policy on related party partner shall be made on a stakeholders on reporting The Board conducts an annual all banking and corporate laws, Corporate Governance and transactions. Transactions with reasonable need-to-know complaints related to fraud, Related Party Transactions Committee evaluation process through the regulations, rules and standards. Compensation Committee. related parties are reviewed basis and in furtherance of a malpractice, conflict of interest by either the Related Party legitimate business purpose. or violation of internal/ Chairman Rex C. Drilon II, Independent Director Corporate Governance and Compensation Committee to The Compliance Division Compliance Division continues Transactions Management regulatory policies, procedures Vice Chairman Robin A. King, Independent Director assess the effectiveness of the serves as the core-force of to actively seek ways to Committee, a management- The policy prohibits trading and controls. The policy also Board, Chairman of the Board, information for regulatory boost compliance and adopt level committee composed of during black-out periods by provides for the protection Member Edgar O. Chua, Independent Director President, Committees and issuances and interpretation best practices in corporate senior officers or the Related covered persons i.e. all directors of the reporting employee. A Board level Committee tasked to ensure that Bank’s each Director’s performance of rules and regulations governance. It also maintains Party Transactions Committee, and employees within the Under the policy, the Bank transactions with related parties are reviewed to assess risks and contributions. The Board and provides oversight a dynamic interaction with a Board-level committee Metrobank Group including shall maintain the identity of and subjected to appropriate restrictions to ensure that such has adopted an internal self- and guidance for a strong regulators to ensure a balance composed of independent their immediate family members the reporting employee as are conducted at arm’s length terms and that the resources of rating system and procedures compliance culture as it between having the right directors, depending on the residing with them in the same confidential and retaliation the Bank are not misappropriated or misapplied. to determine and measure works closely with business compliance culture and a risk- materiality threshold set by household and corporations, against any reporting employee compliance vis-à-vis good and support units to identify, averse environment that will the Bank. Material related other entities and funds subject shall not be allowed. Complains corporate governance assess, monitor and manage support business growth. party transactions require to their influence or control. It /concerns may be filed through Risk Oversight Committee principles and practices as possible regulatory compliance prior written approval of requires the reporting insiders the Bank’s website or send prescribed in the Code of risks which may impact the Fair Business the members of the Board, to confirm their respective via email at whistleblowing@ Chairman Robin A. King, Independent Director Corporate Governance: (i) Bank’s operations and franchise Transactions & with the exclusion of the beneficial ownership of metrobank.com.ph or text Vice Chairman Edmund A. Go, Director each Director self-rates and value. The Compliance Managing Conflicts of director concerned in case the listed shares of stock in their hotline +639427471359. collectively rates the Board, the Division is tasked to promote Interest transaction involves him or his respective companies, if any, and Member Jesli A. Lapus, Independent Director Chairman of the Board and the effective implementation of related interests. Related party report any changes thereto on Dividend Policy Maritess B. Antonio, Head, Risk Chief Risk Officer President; (ii) the Corporate the compliance system and The Bank champions the fair transactions are discussed in the the next trading day from the Management Group Governance and Compensation address breaches that may treatment and protection Audited Financial Statements, date of the change pursuant to The Bank’s dividend policy is an Committee (CGCC), Audit, Risk arise. It ensures that possible of all our stakeholders, particularly under Notes to the the requirements of the SEC integral component of its capital The Risk Oversight Committee, as the extension of the Board, Management and other Board compliance issues and key particularly our customers, Financial Statements No. 31 and the PSE. management policy rather is responsible for the development and oversight of the risk committees conduct self-rating. compliance risks are proactively resource providers, creditors on related Party Transactions. than a stand-alone process. Its management program for the Bank and its Trust Banking Group. identified, measured, and and the community in which All acts of the Board, including Whistle Blowing Policy fundamental and overriding The results of the annual self- assessed and that advice and we operate and believe that material related party policy is sustainability. assessment are validated and support to Management in fair, professional and objective transactions, are confirmed by Metrobank is committed to Trust Committee summarized, discussed by the managing regulatory and dealings forge enduring the majority vote of the Bank’s maintaining the highest possible Dividends are declared and Adviser Dr. Placido L. Mapa, Jr. Senior Adviser CGCC and reported to the compliance risk are provided. relationships. The members of stockholders during the annual standards of ethics, honesty, paid out of unrestricted Board. It also conducts compliance the Board conduct fair business stockholders’ meeting. accountability and adhering retained earnings of the Bank Chairman Jesli A. Lapus, Independent Director awareness trainings for all transactions with the Bank and to the principles of good at such intervals as the Board Vice Chairman Rex C. Drilon II, Independent Director Based on the results of the employees on a regular basis ensure that personal interest Insider Trading Policy governance. All employees of Directors may determine annual evaluation, for the and issues advisories where does not bias Board decisions. are encouraged to play their and in accordance with the Regular Members Fabian S. Dee, President year 2018, the Bank has fully appropriate. Directors, officers and all Metrobank as a publicly traded part in improving the overall provisions of law and the Edmund A. Go, Director complied with the material employees avoid situations that company is governed by effectiveness and success of regulations of the BSP and the requirements of the Code of The Compliance Division would give rise to a conflict of securities laws and regulations. the Bank and in strengthening SEC. Historically, the Bank has Leandro Antonio G. Santillan, Head Trust Banking Group Corporate Governance. is headed by the Chief interest including participation The Bank strictly enforces and the Bank’s system of integrity declared annual cash dividends Compliance Officer (CCO) in any corrupt practices or monitors compliance with its by creating an atmosphere equal to P1.00 per common The Trust Committee shall act within the sphere of its authority, Compliance System who reports functionally to bribery of any kind. Insider Trading Policy to uphold of openness and trust and share, equivalent to 5% of par including but not limited to, the confirmation of acceptance Corporate Governance and applicable laws and ensure by providing an avenue for value. The payment of dividends and closing of trust and fiduciary accounts, the review of The Bank, through Compliance Compensation Committee. All related party transactions shareholders protection and employees to raise concerns in the future will depend on assets placed under the Bank’s custody, the investment, and Division implements an The CCO provides effective are conducted at arm’s length that individuals do not benefit and receive feedback on any the Bank’s earnings, cash flow, reinvestment and disposition of trust funds and the review enterprise-wide compliance and proactive upstream and basis. If transactions with the from knowledge which is action taken. financial condition, regulatory and approval of transactions between trust and/or fiduciary program which forms an downstream communication Bank cannot be avoided, it is not generally available to the requirements for capital and accounts. integral part of the Bank’s within the Bank to address done in the regular course market. The policy requires other factors. The Board of culture and risk governance compliance matters and of business and upon terms that the disclosure of material Directors may, at any time,

34 35 THE FUTURE MADE POSSIBLE

modify the Bank’s dividend competition through Customers & Creditors The Board makes available to Supplier & Contract Selection were the basis of choosing Metrobank has comprehensive Metrobank is committed payout ratio depending on the participation in annual the stockholders accurate and relevant health interventions community and social to sound environmental results of operations and future compensation and benefit The Bank remains anchored timely information to enable the The Bank also ensures for the workforce. Lectures responsibility programs stewardship. It consistently projects and plans of the Bank. surveys to ensure its on its very purpose of latter make a sound judgment that it maintains policies on bank security are likewise conducted by the Metrobank strives to look for areas to competitiveness vis-à-vis ensuring customer success, by on all matters brought to their for supplier and contract conducted to equip personnel Foundation, its corporate social improve its operations towards Cash dividends are subject to industry and other market safeguarding its customers’ and attention for consideration selection. The policy on vendor in handling situations that responsibility arm and the the conservation of energy, approval by at least a majority considerations. creditors’ welfare, fulfilling their or approval. All material management and outsourcing may compromise the security employees through the Purple water and resources. Various of the Board of Directors. On needs and by helping them information about the Bank is of banking support and of persons, property and Hearts Club. policies on optimizing the use the other hand, stock dividend Pay for Performance. achieve their goals. As contained disclosed in a timely manner to marketing activities provides information. The Bank also of paper, power shutdown of requires prior clearance from in the Bank’s Code of Conduct the SEC and PSE. guidelines on accreditation ensures a drug-and alcohol-free The success of the Club was office equipment to minimize the BSP, the SEC and the PSE. The Bank aims to achieve a for Employees, failure to attend of service providers as well work environment at all times. rooted in the heart for service resource usage and to save performance-driven work promptly to client requests is The Board is transparent and as monitoring and reviewing shown by the Bank’s employee- on electricity costs, use of Compensation Policy culture by providing meaningful an example of non-acceptable fair in the conduct of the annual their performance. The Bank’s The Bank also ensures that all volunteers. Employees vehicles for carpool and rewards for performance. behavior under the standard of stockholders’ meetings of the Vendor Management Policy employees perform their work participated in an array of regular maintenance and The Bank adopts a Annual performance scorecards conduct. Bank. The Bank encourages provides guidelines in the consistently to high standards CSR programs that focused servicing of vehicles to reduce compensation policy that are structured to support the stockholders to personally purchase or acquisition of and achieve their full potential. on education, environmental transportation cost and carbon is aligned with the Bank’s business strategies and provide The Bank has also developed attend such meetings. If they products or services from It recognizes that training and stewardship, and health. PHC emissions are in place. operating and risk culture, competitive rewards. Thus, its Customer Protection Policy cannot attend, they are apprised vendors and mitigates risks development is fundamental also collaborated with partners long-term strategic and financial the Bank grants annual merit Manual that enumerates the ahead of time of their right to of dealing with unqualified to the improvement of the across several industries to The Metrobank Purple interest and labor laws and increase and performance basic principles and ethical appoint a proxy. Subject to the vendors. It shall also ensure that Bank’s operational performance introduce employees to new Hearts Club (PHC) has regulations, promotes good bonus (non-guaranteed) business practices that govern requirements of the By-Laws, the Bank’s vendor management and the achievement of the opportunities for volunteerism “You’re In Green Hands” performance and competitive based on the Bank’s overall the conduct of the Bank in the exercise of the right shall guidelines are compliant with Bank’s strategy and goals. The that benefit and support other (YIGH), an environmental with industry standards, with performance, Group and dealing with its customers, not be unduly restricted and BSP regulations. The Bank Metrobank Academy provides marginalized sectors of society. stewardship program which a goal to attract, motivate and individual performance, and setting out the standards any doubt about the validity of also practices the policy of all officers with a wide range centers on combating various retain the best people. market conditions. of consumer protection in a proxy should be resolved in canvassing and bidding services of suitable programs to assist Details of the various programs environmental issues faced by the areas of disclosure and the stockholder’s favor. as a basis for the evaluation and in their continuing professional and activities of Metrobank the country through restoration Directors’ Compensation Package Fair Compensation. transparency, protection of approval of the bid process. development, so that the Foundation and PHC may be activities such as tree planting, client information, fair treatment, Every stockholder entitled to organization will have the read on page 25. mangrove planting, seashore, The members of the Board The Bank ensures that its effective recourse and financial vote on a particular question Health, Safety and Welfare of right quality of people for the and coastal clean-up drives. of Directors receive a fixed compensation package for education. It provides assurance or matter involved shall be Employees business to grow and achieve Environment Protection remuneration package based non-officers or rank and file that consumer protection entitled to one (1) vote for its goals. The Bank strives to Risk Management on experience, professional employees is in accordance with practices are embedded in each share of stock in his name. The Bank acknowledges that it empower Metrobankers with As part of Metrobank’s core background, level of the labor law requirements. the Bank’s business operations Cumulative voting is allowed has a responsibility to ensure the right skills, knowledge, work value of being a responsible The Risk Management Group responsibilities and attendance They receive salaries linked which address and prevent provided that the total votes the safety and security of its ethics and expertise that are corporate citizen, it believes (RSK) is an independent unit in Board and committee to both performance and the identified risks to the Bank and cast by a stockholder shall not employees and clients. The Bank relevant to the stakeholders. that sustainable development is of the Bank that identifies, meetings. Bank’s contractual obligation associated risk of financial harm exceed the number of shares actively promotes a safe and a fundamental aspect of sound analyzes, measures, and under a collective bargaining or loss to its customers. registered in his name as of healthy work environment that Economic & social development business management and monitors identified material Executive and Employee agreement which include the record date multiplied by is conducive to the well-being recognizes that this must rank risks in close coordination Compensation loyalty bonuses for long-term Stockholders’ Rights and the number of directors to be and professional development The Bank believes that it is among the top priorities of its with other business units. It employees. Protection of Minority elected. Matters submitted to of its employees. The Bank also responsible also for the state lending portfolio. exercises oversight on the risk The Bank pays salaries Stockholders’ Interests stockholders for the ratification believes that providing them and welfare of the larger society management units of various commensurate to the Interest of Stakeholders shall be decided by the required with a secure and safe work to which it belongs. As an Metrobank is focused on subsidiaries and affiliates with individual’s qualifications & The Board respects the rights vote of stockholders present environment greatly enhances institution with a heart, the Bank developing a loan portfolio that the goal of ensuring compliance experience, nature of the Metrobank has a responsibility of the stockholders as provided in person or by proxy. All business and work productivity. gives back to the communities directly protects and promotes with relevant regulations, job, position, and level of to all its stakeholders and for in the Corporation Code. shareholders shall have the In particular, the Bank ensures we serve, committed to making environmental and social care, and the implementation of a responsibility with reference to addresses their needs. The It promotes the rights of opportunity to obtain effective a drug-and alcohol-free work meaningful contributions and likewise instilling in the consistent risk management an approved salary scale. Bank has policies that safeguard the stockholders, removes redress for violation of their environment at all times. to the economic and social borrowers, the awareness that framework across the the interests of customers & impediments to the exercise rights. development of our nation. It social and environmental care Metrobank group. The Bank’s compensation creditors, suppliers, employees, of those rights and provides an Among the programs instituted measures its performance not are inextricable to economic package is reviewed regularly shareholders and the adequate avenue for them to was the wellness check of only with financial returns but growth in order to achieve and benchmarked against environment. seek timely redress for breach employees, results of which also with its social objectives. sustainable development. of their rights.

36 37 THE FUTURE MADE POSSIBLE

Strategic Level Portfolio & Transaction Level Metrics and risk assessment Material Risks practices of all credit-originating current and prospective interest tools, both adopted from and relationship management gapping of the Bank’s balance regulation and best practice As a Domestic Systemically units, as well as other units sheet. The appetite for this risk and internal to the Bank Important Bank (DSIB), involved in the credit cycle. is low; as such, the Bank follows are then used to measure Metrobank faces a broad a set of policies on managing The Risk Management Process identified risks. The use of range of risks reflecting such Credit Concentration Risk its assets and liabilities so as Risk & Risk Strategic Risk Appetite these tools complements the status. These risks include to ensure that exposure to Opportunities Assessment & Direction Definition Consistent with the foregoing, conduct of business as they those resulting from its lending It is the current and prospective fluctuations in interest rates are Identification Evaluation the Bank’s risk management help prevent risks from being activity, treasury operations, negative impact to earnings kept within acceptable limits. process focuses on the interplay realized into serious issues, as and extensive client-facing and capital arising from among business, concomitant well as cue the possibility of network, including its branches. over-exposure to specific Liquidity Risk risks, and required capital any instance that capital may The Bank recognizes that it industries and/or borrowers / with the goal of sustaining the be called to absorb losses. is not possible or necessarily counterparties. The Bank has It is the risk to earnings or NO YES franchise through the rise and desirable to eliminate some a moderate appetite for this capital arising from the Bank’s Viable? Risk Control & Mitigation ebb of the business cycle. It Notwithstanding a defined of the risks inherent in its risk, recognizing that specific inability to meet its obligations provides the engine for the risk management function, the activities. Acceptance of growth areas may need credit when they become due. The determination of the Bank’s Bank recognizes that the core some risk, therefore, is often support more than others, Bank considers liquidity risk as strategic goals, its material risks, banking activity of managing necessary to foster growth and that lending to highly the most important considering and its appetite for said risks. risks is not the sole province and efficiencies within business integrated customers often lead that liquidity is the lifeline of any Risk exposure identification, of RSK. It is rather a function practices. At all times, however, to pockets of concentration. bank. As such, the appetite for Risk Risk Review measurement, management, and that cuts across the entire the Bank ensures that any The Bank manages this risk via liquidity risk is low. The Bank’s Monitoring monitoring provide the support organization as manifested in risk-taking activity is aligned adherence to processes relating strategy for managing this risk on which business budgets are the Bank’s three (3) lines of with its corporate objectives to industry and counterparty is generally via limiting the afforded the chance of being defense. Such set-up is central and capabilities, and that an assessments, observance of maturity mismatch between achieved and for which capital to risk management, as it effective risk management regulatory ceilings, and setting assets and liabilities, improving adequacy to support the effort expresses everyone’s role in process is in place. of internal limits. the stickiness of its deposit RSK reports directly to the 2. As the business is continuously assured. ensuring that risk exposures and liabilities profile, and by Board of Directors through landscape evolves, the are managed and within The following are some of the Market Risk holding sufficient liquid assets the Risk Oversight Committee, Bank’s risk management the Bank’s risk appetite. The material risks the Bank faces of appropriate quality and first line of defense consists and the strategies for managing It is the risk resulting from marketability. which is composed primarily of practices must likewise Board of Directors independent members of the remain appropriate of the risk taking and risk the same: adverse movements in the Board. The Committee’s active and practicable, but (BOD) owning units since they are in general level of or volatility Operational Risk role in overseeing the Bank’s always in consonance the position to immediately Credit Risk of market rates or prices risk infrastructure, operating with standards set by its identify, respond, manage, and or commodity/equity prices It is the risk arising from the policies, and exposures ensures regulators; monitor risks. Second would It is the risk that the borrower, possibly affecting the Bank’s potential that inadequate a good balance between risk 3. The Bank must ensure Risk Oversight be independent units, like RSK, issuer or counterparty in a financial condition. The Bank’s information system, operations appetite and prudence. that it has the right risk Committee (ROC) that provide oversight and transaction may default and appetite for this risk is low, or transactional problems governance structure in the tools, systems and advice cause potential loss to the Bank. and manages this risk via a (related to service or product Risk Management Principles order to minimize the necessary to support the first It arises from lending, trade process of identifying, analyzing, delivery), breaches in internal chances of risks becoming line in identifying, managing finance, treasury, derivatives measuring and controlling controls, fraud or unforeseen Ultimately this philosophy real losses while exploiting and monitoring risks. The third and other similar activities. The relevant market risk factors, and catastrophes will result in of balancing risk and reward the gains that may Subs Risk Committees line of defense is provided by Bank’s appetite for this risk establishing appropriate limits unexpected loss. The Bank’s translates to the following risk accrue from business the internal audit function. This is moderate, reflective of its for the various products and appetite for operational risk management principles: opportunities; and Risk Management function provides a level of core business and the social exposures. is low, and is managed via a 4. Risk management is Group (RSK) independent assurance that the responsibility that comes with framework involving various 1. Because risk is native to everyone’s concern – risk management and internal being one of the financial Interest Rate Risk in the Banking tools that promote a strong the banking business, the from the Board who sets control framework is working system’s largest lenders. Book (IRRBB) control environment, escalation, Bank manages risks that the overall tone, to the as designed. monitoring and reporting of risk correspond to its goals officers and staff who Risk Management As a matter of general strategy, It is the current and prospective events, and adequate mitigation and objectives as an execute the Bank’s risk Coordinating Council the Bank manages this risk negative impact to earnings and of assessed risks. ongoing business; management strategy. (RMCC) through a system of policies, capital arising from movements metrics, and authorities that or shifts in interest rates. The govern the processes and risk becomes inherent in the

38 39 THE FUTURE MADE POSSIBLE

Technology Risk (ML/TF) Risk, the Bank has zero Chief Audit Executive reports acquired economically, used The Group commits to development programs; elevate comprehensive internal tolerance for the same, and functionally to the Board of efficiently, and adequately continually embark with effectiveness thru enhanced controls and audit. These It is the current and prospective is managed separately by the Directors through the Audit protected; Bank’s programs, a purposeful competency work programs and end-to- practices, together with effective negative impact to earnings Bank’s Anti-Money Laundering Committee and administratively plans, and objectives are development plan as it is end process audits on critical communication and training arising from failure of the Bank’s Division (AMLD) reporting to the Office of the President. achieved; quality and continuous paramount that the capabilities areas of Bank operations; roll and risk-based compliance IT systems, including information directly to the Board’s AML All internal audit activities improvement are fostered and skills of the Internal Audit forward assurance capabilities testing, promote a robust, and cyber security. The Bank’s Committee. remain free of influence by any in the organization’s control team evolve with business and to the first and second lines of dynamically-responsive, and appetite for IT risk is low, and its element in the organization and process; and, significant technology developments, as defense; optimize the use of appropriate compliance system strategy in managing this risk is Strategic Risk internal auditors have no direct operational risks/ issues are well as changing practices. electronic data to fully integrate and culture of compliance embodied in a comprehensive responsibility or involvement addressed properly. data analytics in internal audit towards a sound and stable information technology It is the current and over any Bank operating The accomplishment of activities, realize efficiencies financial franchise. With the management policy that prospective negative impact to activities. 2018 Risk-Based Internal through increase in centralized Bank’s robust and sound risk encompasses IT risk assessment, earnings arising from adverse Over the years, the Audit Plan, which includes validation procedures; and management practices and vulnerability testing, monitoring, business decisions, improper The Internal Audit Group internal audit function has fundamental audit activities provide deeper insights strong commitment to good controls, and mitigation. implementation of decisions, scope of work ensures and initiatives such as to the Management and corporate governance practices and/or lack of responsiveness that risks are appropriately become more relevant assurance activities; consulting/ Board of Directors through and principles of safe and sound Reputation Risk to industry changes. The Bank’s identified and managed and and firm in adding value advisory works; fact-finding/ forward-looking analyses. IAG banking practices, regulatory strategy in managing this risk interaction with the various case analysis; special reviews further commits to undergo and money laundering and It is the current and prospective is to embed the same in the governance groups occurs, as to the Bank, as internal of information technology transformational initiatives in terrorist financing risks are negative impact to earnings various business functions as needed, through validation on auditing is performed operations; embedding of data the coming years to deliver effectively managed. and capital arising from espoused in its strategic and whether significant financial, analytics thru investment in impactful assurance and negative public opinion. As a business planning processes. managerial, and operating by professional auditors technology, training of staff, consulting services which shall bank essentially survives on its information is accurate, reliable, with deep appreciation of evaluation of data sources, intensify and proliferate good reputation, the Bank has very INTERNAL AUDIT and timely; operations and and collaboration of audit corporate governance practices low appetite for reputation risk system functionalities are in the importance of strong teams; enhanced account within the organization. and always aims to proactively Internal Audit Group is compliance with Bank’s code confirmation procedures; build on its good name. The established by the Board of of conduct, policies, standards, governance and with fraud risk assessment and ANTI-MONEY Bank holds that reputation Directors, and its responsibilities procedures, and applicable in-depth understanding awareness programs; and, LAUNDERING risk is a consequence of other are defined by the Audit laws and regulations, including group supervision activities on risks. Its management therefore Committee as part of its adequacy and effectiveness of the Bank products/ internal audit units of covered The Bank’s AML compliance is tied closely to the manner oversight function. The Audit of controls associated with services, systems, and Metrobank Subsidiaries, among program, which is designed to by which it manages its other Committee and Management money laundering and terrorist others, allowed IAG to provide identify and mitigate business risks. By ensuring effective take all the necessary measures financing; resources are processes. the stakeholders with objective and regulatory risks, is being identification, assessment, to provide the appropriate assurance and insight on the implemented through sound control, monitoring, and resources and staffing, including effectiveness and efficiency risk management practices reporting of the other material free access to all functions, Audit Committee of risk management, internal and adherence to applicable risks, reputation risk is likewise records/documents, information, Adviser Atty. Cornelio C. Sison, Board Adviser control, and governance rules and regulations on the effectively managed. properties and personnel, processes of the Bank. Through prevention of money laundering that would enable Internal Chairman Edgar O. Chua, Independent Director this valuable insights, positive and terrorist financing. Compliance and Regulatory Audit Group to fully carry out Francisco F. Del Rosario Jr., Independent changes and certain innovations Vice Chairman Risk its functions and achieve its Director within the organization were The sound risk management objectives while adhering to prompted which aids in the practices of the Bank are Member Robin A. King, Independent Director It is the current and prospective the principles required by the overall achievement of the well established to ensure negative impact to earnings and International Standards for the Chief Audit Executive Leo R. Fragante, Head, Internal Audit Group Bank’s strategic objectives. adequate and active board capital arising from failure to Professional Practice of Internal and senior management comply with all applicable laws, Auditing (Standards) and Code As an extension of the Board, the Audit Committee assists To keep up with the increasing oversight, acceptable policies regulations, and standards of of Ethics. the Board in fulfilling its statutory and fiduciary responsibilities, business challenges and and procedures embodied in a good governance and practice. enhancing shareholder value, and protecting shareholders’ interest growing array of risks, IAG money laundering and terrorist The appetite for this risk is low, The Internal Audit Group through effective oversight of internal and external audit functions, will strive to be dynamically financing prevention compliance and is managed via the conduct maintains its independence and transparency and proper reporting, compliance with laws, rules responsive to emerging program, appropriate of a defined Compliance objectivity in performing and and regulations and code of conduct, and adequate and effective issues; fortify its workforce monitoring and management program. Specific to Money delivering audit works, as the internal controls. by investing in competency information system and Laundering & Terrorist Financing Internal Audit Group Head/

40 41 THE FUTURE MADE POSSIBLE

AUDIT COMMITTEE REPORT TO THE BOARD OF DIRECTORS

Throughout the year, the Audit Chairman had private meetings and fraud management, the annual internal audit plan; Committee (Committee) with the Chief Audit Executive among others. Assessed and regularly received reports, provided full support and to set clear directions and monitored Management’s discussed significant matters, assistance to the Board guidance in carrying out certain degree of responsiveness including status of resolving GROUP of Directors in fulfilling mandates/directives. Highlights to audit observations and control issues/observations, its statutory and fiduciary of the Committee’s activities recommendations on process and implementation of responsibilities, enhancing were as follows: improvements and control recommendations to improve shareholders’ value, and enhancements. Engaged and internal controls; monitored protecting their interest through Financial Reporting liaised proactively with the progress/completion of audit OWNERSHIP effective implementation of its Reviewed and reported to the Board in overseeing effective plan; reviewed audit results primary responsibilities stated Board of Directors the interim implementation of internal including the Bangko Sentral ng in the Board-approved Audit and annual financial statements control and risk management Pilipinas report of examination; Committee Charter, which and disclosures; valuation functions, and conveying and, reviewed and approved cover overseeing of internal techniques; major estimates and culture of honesty and integrity all non-audit services of the and external audit functions, assumptions used; significant throughout the organization. external auditor (i.e., issuance Ty Family/ including internal audit activities adjustments, material errors of comfort letter for the rights MBT Free Float provided to subsidiaries/ and fraud; and action plans of Regulatory Requirements offer of Metrobank common 36.4% Foundation 14.7% 48.9% associates and outsourced the Management on reported Monitored compliance by the shares, validation of votes cast internal audit activities; ensuring observations. Coordinated with Bank with new and existing laws, at the annual stockholders’ transparency and proper the Controller and both with regulations and promulgated meeting, issuance of quarterly reporting with emphasis internal and external auditors in policies of the Bangko Sentral reports on the application on the reports’ integrity, ensuring Bank’s compliance with ng Pilipinas and other regulatory of proceeds from the 2018 * timeliness and compliance new financial reporting and agencies, including but not stock rights offer, vulnerability with standards; monitoring accounting standards, tax, legal limited to money laundering assessment and penetration compliance with Bank policies, and regulatory requirements; and terrorist financing, financial testing of publicly accessible and applicable laws, governing proper treatment of unusual/ consumer protection, related servers, network, devices rules and regulations and code complex transactions where party transactions, information and services engagement) to of conduct; and, evaluating significant judgment was security and business continuity ensure no conflict or threat to adequacy, effectiveness and exercised; and, employee management. Reviewed and independence. efficiency of internal control pension funding requirement evaluated the effectiveness framework. or appropriate recognition of of the regulatory compliance Based on the Committee’s Investment Banking Credit Cards Savings Bank Leasing corresponding liability in the framework and governance accomplishments, The Committee is composed books. policies and practices of the representation letter from the of three (3) qualified non- Bank to ensure that these Bank Management, unqualified 99.2% 100.0% 82.7% 59.9% executive members, who Internal Control and Risk are consistently applied and opinion from the external are all independent directors Management observed throughout the auditor on the financial appointed by the Board of Evaluated adequacy and institution. statements, and the Chief Audit Directors. These directors effectiveness of the Bank’s Executive’s overall satisfactory also hold membership internal control and risk Oversight of the External assessment on the general positions in other Board- management systems, processes, and Internal Audit Function adequacy and effectiveness of level Committees, through and procedures through IA Ensured the external and the Bank’s internal control, risk Effective Ownership which, they are apprised of reports on assurance and internal auditor’s objectivity management, and governance significant developments and consultative engagement and independence; approved processes, we conclude that are able to provide advice on activities, which cover review the reappointment of the business risks are managed in Bancassurance risk taking and management of controls of pertinent external auditor, terms of audit accordance with the policies activities. In 2018, the Audit areas of operations such as engagement and audit fees; set by the Board of Directors Committee held twelve (12) credit/lending operations, evaluated audit scope, plan and and in compliance with relevant 28.0% regular meetings and three (3) marketing/sales function, performance; reviewed and regulatory requirements. special meetings with internal information systems, IT approved the Management and external auditors; and the governance, cybersecurity, Representation letter; approved

* Listed on PSE JV between AXA, Metrobank Group Note: There are no shareholder agreements, voting trust agreements, confidentiality agreements or any and GT Capital (25.3% owned) such other agreements that may impact the control, ownership and strategic direction of the company.

42 43 DOMESTIC SUBSIDIARIES AND AFFILIATES

The Metrobank Group shares with all its clients a single vision and foresight. You design your dreams. We build the road for your journey. THE FUTURE MADE POSSIBLE

Metrobank Card Corporation Metrobank Card expanded MCC re-launched the • VMware virtualization (MCC) remained a strong partnerships with Metrobank World Mastercard, and cloud solutions - Best player based on the latest Alphanetworld Corporation, its most premium credit card, Technology Implementation data from the Credit Card Pisopay.com, AXA Philippines, at an intimate and exclusive - Back End Association of the Philippines and Rusty Lopez to launch four ball at the Grand Hyatt Manila, • Highly Commended citation (CCAP). As of end-December White Label Prepaid Cards: Bonifacio Global City on for the Most Innovative ORIX METRO Leasing and amounted to PHP 34.917 As of 30 September 2018, 2018, MCC ranked: NWorld Cash Card Reloadable October 11, 2018. Digital Solution category Finance Corporation was ORIX METRO’s total fleet • 2nd in terms of Receivables. Prepaid Visa, Pisopay.com • Highly Commended citation confronted with a host of billion compared to PHP under FSOL and fleet • 3rd in terms of Total Prepaid Visa, AXA Prepaid Visa, Awards for the Best Card Offering challenges that impacted 30.718 billion recorded in management is composed of Number of Cards-in-Force. Rusty Lopez Rewards Prepaid for South East Asia its financial performance in 7,694 cars, pick-ups, vans and • 3rd in terms of Merchant Visa. Metrobank Card was awarded 2018. Against this challenging FY 2017. light trucks. Acquiring Billings. the Gold Apple Award for Metrobank Card was awarded backdrop, the company ended MCC partnered with China’s Credit Card Promotion of the Philippines Best Employer fiscal year with PHP 1.300 The company’s portfolio quality ORIX METRO continues to top digital payment providers, the Year at the Robinsons Brand Awards 2018 under the billion in net income after tax, remains healthy despite the seek avenues of growth as the Alipay and WeChat Pay, Supermarket Trade Partners Banking Sector category by the an increase of 5.87% from last increase of its past due ratio company expands its branch Effective September enabling local merchants using Night 2017 last March 7, 2018 Employer Branding Institute and year’s PHP 1.228 billion. to 1.90% compared to 1.59% network, particularly in the 4, 2018, MCC became MCC’s payment platform to at Crowne Plaza Manila Galleria. World HRD Congress. in FY 2017. It maintained countryside. This expansion, accept mobile payments from The company, owned by its strict credit underwriting which has been on-going for a 100% wholly-owned thousands of visiting Chinese MCC won four major awards MCC surpassed Asia’s standards Metrobank (40%), ORIX process and prudent the past few years, will continue subsidiary of Metrobank, consumers in the country, via and two high commendations on customer satisfaction Corporation of Japan (40%) portfolio management even as the company further MCC’s point-of-sale terminals from the recently concluded for Financial Institutions. and First Metro Investment as the company aggressively strengthens its coverage of after the bank acquired with dynamic Quick Response Cards and Electronic Payments MCC recently conducted a Corporation (20%), achieved a expanded its lending activities the small and medium-sized the full 40% stake of its Codes. International Asia Awards Customer Satisfaction Survey return on average equity (ROE) in the countryside. In terms of enterprises (SMEs) in the (CEPI) 2018. The CEPI Asia together with Kantar TNS of 17.52% this year versus an network, ORIX METRO ended rural areas. ORIX METRO previous joint venture Metrobank Card launched Awards Gala Dinner was held Philippines, the country’s largest average ROE of 20% for the FY 2018 with 103 branches also continually upgrades its partner. PISO Trip exclusive for Victory at Hilton Singapore on the 6th customized and leading market past years. Return on average compared to 98 last year. technology infrastructure and Liner Premiere Prepaid of September 2018. research agency to local and assets declined from 3.16% last improves processes in order to VISA Cardholders. This was • Yazz Prepaid Visa - Best multinational brands. Based year to 2.72 percent this year. Its wholly-owned subsidiary, better serve its clients. MCC became a licensed a seat sale offer by MCC in Prepaid Card Product for on the concluded survey, ORIX Rental Corporation General Insurance Agency on partnership with Victory Liner, Asia Pacific MCC surpassed the customer (ORC) which is engaged in June 1, 2018. This enabled MCC ORIX METRO’s total group and the first-ever P1 seat sale • The Winzone - Best Brand satisfaction standard in Asia long-term full service operating to further grow the insurance for land travel in the country. Engagement Programme and in Southeast Asia for the lease (FSOL) of cars and light business and increase MCC’s resources grew from PHP • Lead Generation Program Finance and Banking Sector. trucks, registered an income of commercial scope. Its complete 43.968 billion last year to In 2018, MCC improved the - Best Digital Marketing The average performance and PHP 1.898 billion in FY 2018 corporate name is now digitalization of its promotions Campaign preference benchmark score compared to PHP 1.723 billion Metrobank Card Corporation PHP 51.747 billion this fiscal with its partner merchants: for Asia is at 79, while Southeast in FY 2017. (A Finance Company and year. Total new bookings Winzone, Strike to Millions and Asia is at 78. Metrobank Card’s General Insurance Agency). McDonald’s. average score is at 94.

47 THE FUTURE MADE POSSIBLE

First Metro successfully Company in the Philippine underwriter. In mergers and of awards from The Asset AXA Philippines closed 2018 The year also marked the the message ‘For all that you completed 13 capital markets Dealing Exchange enrolment acquisitions, First Metro served Benchmark Research (ABR) with a total premium income of opening of the AXA Academy, value, choose AXA’ permeated deals in 2018, which included system. The transaction was as buy-side financial advisor of Hong Kong. In ABR’s 2018 P29.7 billion and with around its newest state-of-the-art traditional as well as online the following names: Megawide awarded Best Benchmark Bond of Metrobank’s acquisition of Asian Local Currency Bond 1.5 million customers protected facility that seeks to raise spaces nationwide. GMR Construction JV, Inc., Deal by regional investment up to 40% stake in Metrobank Benchmark Review, First under various individual and the training of insurance SM Prime Holdings, Inc., San magazine Alpha Southeast Asia. Card Corporation, the country’s Metro ranked first as Top group life insurance products, professionals to an unmatched AXA’s online insight community Miguel Corporation, The More than the many “firsts” leading provider of credit cards. Arranger, Investors’ Choice for as well as general insurance level of excellence in the MyAXA Café won silver at the Philippine Stock Exchange, and the recognition from an Government Primary Issues and products through its non-life industry. Housed at the Bank of prestigious Efma-Accenture Inc., Metropolitan Bank & Trust international publication, the First Metro received the Deal 4th as Top Bank in Government subsidiary Charter Ping An. The Makati Building on Ayala Avenue Innovation in Insurance Awards, Company, Bounty Fresh Group, proceeds of the issuance will be of the Year award for the 20th Bonds. For corporate issuances, year also marked the first time in Makati City, the AXA an awards program that NLEX Corporation, Toyota used for lending to individuals Tranche issuance of Retail the investment house ranked that Charter Ping An, started Academy serves as the main aims to recognize the most Financial Services Philippines with limited banking access, Treasury Bonds (RTB) at 2nd as Top Bank in Corporate operating under the AXA training hub for AXA agents innovative projects, initiatives Corporation, Ayala land Inc., thereby promoting financial the 2018 Investment House Bonds and 4th as Top Arranger, Philippines brand name. and employees. and ideas in insurance around ORIX Metro Leasing and inclusion and helping alleviate Association of the Philippines Investors’ Choice for Corporate the world. This same year, Finance Corporation, Petron poverty in the country. (IHAP) Awards. First Metro Primary Issues. AXA further expanded its AXA continued to widen its AXA Philippines president and Corporation, AEON Credit was one of the joint issue footprint in the country product portfolio with the CEO Rahul Hora was named Service (Philippines), Inc., and First Metro was awarded the managers of the Bureau of the First Metro was awarded as with the opening of centers launch of its latest offering, Outstanding Leader in Asia at Philippine Savings Bank. Philippines’ Best Equity House Treasury’s biggest RTB issuance in Cagayan De Oro City, Asset Master. Designed as a the Asia Corporate Excellence and, for the second consecutive to date. one of the top Government Cabanatuan City, and Pagadian single-pay, investment-linked & Sustainability Awards for FMIC was the sole arranger year, the Best M&A House by Securities Eligible Dealer City. To date, it has established insurance plan, Asset Master his outstanding business for the P1 billion fixed rate regional investment magazine FMIC and its stockbrokerage close to a hundred branches allows customers to build a acumen, professionalism, and corporate notes issuance Alpha Southeast Asia at its arm First Metro Securities Market Makers in 2018 by nationwide and has installed diversified investment portfolio entrepreneurial skills. of AEON Credit Service 12th Annual Best Financial Brokerage Corporation the Bureau of the Treasury. more than 800 AXA Advisory of local and global investments (Philippines), Inc., a landmark Institutions Awards. During the (FirstMetroSec) reaped awards Corners in Metrobank and — a solid foundation on which In 2018, AXA celebrated transaction in the domestic awards covered period, First at the 2018 PDS Annual First Metro was the only PSBank branches within the to build one’s financial legacy. Corporate Responsibility Week capital markets. This was the Metro participated in 60% of Awards. First Metro bagged investment bank in the archipelago. to include a countryside venue first-ever issuance in the the total publicly listed capital the Top Corporate Securities AXA embarked on a brand for the first time. Nearly 450 Philippines and second only markets transactions in the Market Maker and ranked 3rd top ten list. Along with in the Asian region under the Philippines, raising P29.8 billion in both the Top 5 Fixed Income Early in 2018, the campaign towards the end employee-volunteers from nine banks, First Metro of 2018 with “Choose AXA,” Manila and Cebu donated ASEAN + 3 Multi-Currency for the public and private Brokering Participant and AXA Shared Services communicating the new their time and skills to touch Bond Issuance Framework sectors. In the equity space, Top 5 Fixed Income Dealing was commended for its (AMBIF) program. This First Metro completed two Participant, while FirstMetroSec Centre-Philippines was proposition that the company 2,250 lives in partnership with support to capital markets now offers both life and general the Metrobank Foundation, issuance was also the first stock rights offerings (SRO), got the 4th spot in the Top inaugurated. As one of the insurance products to address Hands On Manila, Philippine fully-guaranteed debt facility including the landmark P60 5 Depository Brokering development through its of Credit Guarantee and billion SRO of its parent Participant. IT hubs for AXA in Asia, customers’ various needs all Red Cross, and the University presence in the primary under one roof, whether it’s of San Carlos Cebu, to name a Investment Facility (CGIF) company, Metrobank, where it it has hired around 300 savings, retirement, business few. Outreach activities included in the Philippines, and the acted as joint global coordinator, First Metro remained the and secondary markets for first security by a Restricted joint bookrunner, issue country’s leading bond house IT professionals, offering protection, or motor security food packing, a blood drive, and government securities. that they need, to name a few. training sessions on first aid and Issuer and Non-Reporting manager, and domestic lead as it received another slew innovations in customer Billboards and video ads bearing financial literacy. service to the AXA entities that it serves.

48 49 Summary of Financial Statements (In Million Pesos, Except Per Share Amounts and Foreign Exchange Rates)

At Year End Consolidated Parent Company 2018 2017 2018 2017 Total Assets 2,243,693 2,080,292 1,863,664 1,701,385 Loans and Receivables – Net 1,391,034 1,265,469 1,116,257 1,002,921 Investment Securities 416,353 387,797 334,917 302,717 Others 436,306 427,026 412,490 395,747

Total Liabilities 1,952,989 1,876,202 1,570,901 1,494,759 In 2018, the Philippine Savings To enhance the bank’s To sustain the steady flow of At the 2018 PANAta Awards, Deposit Liabilities 1,556,753 1,527,962 1,325,991 1,313,947 Bank (PSBank) continued to security measures, PSBank ground-breaking products and the bank also snagged a Demand 355,473 344,708 322,371 314,542 offer an array of innovative also implemented security services, PSBank also launched Bronze Award in Brand Builder Savings 609,471 605,508 577,815 576,807 products and services in initiatives for all ATMs intended Innovolution, which provides Excellence in Brand Positioning Time 548,019 547,721 390,475 395,948 Long-Term Negotiable Certificates of Deposit 43,790 30,025 35,330 26,650 line with its commitment of to prevent malware infection employees an avenue to category for its “Techie” Others 396,236 348,240 244,910 180,812 providing simple and reliable and provide protection against explore and harness concepts campaign. banking services (Simple Lang. network intrusion. Further, and ideas to enhance internal Total Equity 290,704 204,090 292,763 206,626 Maaasahan). The bank launched a pilot implementation of and external customers’ In recognition of its HR-related Attributable to: PSBank Flexi Personal Online PSBank’s anti-web defacement experience. initiatives, PSBank was named Equity Holders of the Parent Company 282,960 201,955 292,763 206,626 Other Equity Reserves – (7,400) – – Loan Application, which allows system, which ensures the 2018 Global Best Employer Non-Controlling Interest 7,744 9,535 – – customers to apply online integrity of the pages of the As a testament of PSBank’s Brand and given the Continuous for the country’s first and bank’s internet-facing websites, commitment to customer- Innovation in HR Strategy at only collateral-free personal was undertaken. By storing a centricity in providing various Work award at the 2018 World Book Value Per Share (BVPS) 71.11 63.52 73.57 64.98 loan product with a revolving protected and authorized copy banking products and services, HRG Congress. The bank was Foreign Exchange (USD:PHP) credit line and a fixed term of the website’s files, the system the bank reaped in 2018 a further named Philippines’ Closing Rate 52.581 49.932 loan. The bank also launched is able to detect unauthorized harvest of awards that include Best Employer at the 1st Weighted Average Rate 52.681 50.412 PSBank Home Loan 1-day change in the site’s files. The recognition from the Bangko Best Employer Brand Awards 1 per Bankers Association of the Philippines credit decision, which provides system then will immediately Sentral ng Pilipinas (BSP) for its while Facebook Workplace 2 per Philippine Dealing System the fastest credit decision and automatically overwrite the excellence in responding and recognized it with a Best Launch For the Year Consolidated Parent Company on home loan applications file with its trusted version. The addressing issues or concerns of Strategy Award in relation to 2018 2017 2018 2017 for the purchase of brand system is particularly useful in clients referred to the bank by the deployment of Workplace, Net Interest Income 68,822 61,406 42,328 36,493 new condominium units and automatically recovering the the BSP. PSBank was conferred the enterprise version of the Interest Income 97,186 80,322 60,321 48,011 properties from accredited site’s pages from unauthorized the Pagtugon Award for the Facebook platform for its Interest Expense 28,364 18,916 17,993 11,518 developers. changes or from any web third time last year, following a employees. Non-interest Income 23,784 22,836 18,426 16,858 defacement attempt. The bank similar recognition from BSP in Service Charges, Fees and Commissions 12,695 11,045 4,954 4,171 The bank also implemented also implemented 3D Secure 2016 and 2015. The bank was In addition, PSBank was also Trading and Securities Gain (Loss) - Net 2,541 (402) 3,041 (1,079) various automation projects to project, which provides another also recognized by the BSP awarded two Silver Awards Foreign Exchange Gain (Loss) - Net 210 4,257 (66) 4,101 manage volume of transactions, layer of authentication for as a finalist in two categories at the 53rd Philippine Anvil Leasing 2,252 2,129 224 215 strengthen controls, improve Card-Not-Present (CNP) e- namely Outstanding PhilpaSS Awards for its PayMe “Sweldo” Income from Trust Operations 1,290 1,377 1,259 1,351 Other Non-interest Income1 4,796 4,430 9,014 8,099 turn-around time and commerce channel in line with Participant Servicing Customer situational commercial for enhance customer experience. the adoption of multi-factor e-Payments for Thrift Banks Public Relations Tool-Multimedia Total Operating Income 92,606 84,242 60,754 53,351 These automation projects authentication (MFA) security and Outstanding Partner for Online Video category and for include an interface for auto system. Children’s Savings Mobilization. its 2016 Annual Report, entitled Total Operating Expenses 61,426 54,982 34,262 30,613 loans, enabling the bank to Further, the bank was #WeAreWhereYouAre. Provision for Credit and Impairment Losses 7,770 7,507 807 1,395 Other Operating Expenses 53,656 47,475 33,455 29,218 automatically inquire, download In compliance with the Bangko recognized by the Institute of The bank further gained Provision for Income Tax 7,745 7,990 4,484 4,515 and display credit information Sentral ng Pilipinas’ mandate, the Corporate Directors as among two Awards of Merit at the of individuals as reference bank also enabled fund transfers top performing publicly-listed 16th Philippine Quill Awards, Net Income 23,435 21,270 22,008 18,223 for credit decision; system between PSBank and other company in the country based also for its PayMe “Sweldo” Attributable to: enhancements on pre-screening bank accounts via InstaPay and on the 2017 ASEAN Corporate situational commercial under Equity Holders of the Parent Company 22,008 18,223 Non-controlling Interest 1,427 3,047 process for auto and personal PESONet available through Governance Scorecard (ACGS). the Marketing, Advertising and loans applications where PSBank Online or PSBank Brand Communication category Basic/Diluted Earnings Per Share (EPS) Attributable to additional scoring process Mobile app. In addition, the PSBank also gained recognition and for its 2016 Annual Report. Equity Holders of the Parent Company 5.83 5.622 was done prior to credit bank also enabled its clients to at the 2018 CX Asia Excellence 1 Includes share in net income of subsidiaries, associates and a joint venture 2 Restated to show the effect of stock rights issued in 2018 verification; system document transfer funds from their PayPal Awards of the International The bank ended 2018 with and settlement module for accounts to PSBank accounts. Quality and Productivity Center For the Year Consolidated Parent Company auto and personal loans which PSBank and Metrobank (IQPC), which awarded the 250 branches and 575 2018 2017 2018 2017 eliminated redundant review further enabled over 2,400 bank with two Silver Awards ATMs nationwide. Net Interest Margin 3.8% 3.8% 3.0% 2.9% processes; and an automated ATMs nationwide for Cardless for Best Customer Experience Return on Average Equity 9.1% 9.2% 8.8% 9.1% queuing process for remedial Withdrawal. and Best Customer Experience Return on Average Assets 1.0% 0.9% 1.2% 1.1% Non-performing Loans Ratio 1.2% 1.0% 0.7% 0.6% accounts and provided reports Team and two Bronze Awards on productivity and turn-around for Best Social Media Strategy Capital Adequacy Ratio 17.0% 14.4% 15.8% 13.5% time. and Best Use of Mobile. Tier 1 Capital 14.6% 11.8% 13.3% 10.8% Common Equity Tier 1 14.6% 11.8% 13.3% 10.8%

50 51 BOARD OF DIRECTORS THE FUTURE MADE POSSIBLE

Solomon S. Cua Robin A. King Dr. Jesli A. Lapus Francisco F. Del Rosario, Jr. Fabian S. Dee Francisco C. Sebastian Arthur Ty Alfred V. Ty Edgar O. Chua Edmund A. Go Rex C. Drilon II Vicente R. Cuna, Jr. Director Independent Director Independent Director Independent Director President/Director Vice Chairman Chairman Director Independent Director Director Independent Director Director Director since April 2018 Director since August 2011 Director since August 2010 Director since April 2013 President/Director since April Director since April 2002 Director since April 2002 Director since September 2015 Director since April 2017 Director since May 2007 Director since August 2012 Director since April 2014 63 years old 71 years old 69 years old 71 years old 2012 (also served as Director 64 years old 52 years old 51 years old 62 years old 68 years old 72 years old 56 years old Vice Chairman/Director, Philippine Director, Makati Sports Club Director, STI Education Systems Director, DMCI Homes, Inc. from September 2007 to Co-Vice Chairman, GT Capital Chairman, GT Capital Co-Vice Chairman, GT Capital Independent Director, Integrated Advisor, Philippine Savings Bank* Vice Chairman, Institute of Head, Enterprise Services Sector Racing Club, Inc.* Trustee, Asiapro Foundation Holdings Inc.* Trustee, ABS-CBN Foundation March 2011) Holdings, Inc.* Holdings, Inc.* Holdings, Inc.* Micro-electronics, Inc. * Director for Investments, Ateneo Corporate Directors Former President, Philippine Chairman, Philippine AXA Former Independent Director, Chairman, STI Education Services Chairman, Institute for Solidarity 56 years old Director, Metro Pacific Vice Chairman, Philippine Vice Chairman, Metro Pacific Independent Director, Energy de Manila University Trustee, Institute for Solidarity Savings Bank* Life, Inc. First Metro Investment Corp. Group Inc. in Asia Chairman, Metrobank Card Investments Corporation* Savings Bank* Investments Corporation* Development Corporation* Director, Metropolitan Bank in Asia Former Director, First Metro Chairman, Charter Ping-An Former Independent Chairman – Center for Tourism, Senior Executive Director, PWC Corporation Chairman, First Metro Investment Vice Chairman, First Metro Vice Chairman, Toyota Motor Trustee, Pilipinas Shell (China) Ltd. Former President/Director, Cebu Investment Corporation Insurance Corp. Director,Toyota Financial Asian Institute of Management Isla Lipana Chairman, Metro Remittance Corp. Investment Corp. Philippines Corporation Foundation, Inc. Investment Consultant, St. Peter Holdings, Inc. * AB Economics, De la Salle Director, Profriends Developer, Inc. Services Philippines Independent Director, Philippine Former Cabinet Member, Habitat Singapore PTE Ltd. Chairman, First Metro Asset Vice Chairman, AXA Philippines Chairman, Lexus Manila, Inc. Chairman, De La Salle Life Group Former President/Director, University Director, Grand Titan Capital Corporation Life Financial Assurance for Humanity Philippines Chairman, LGU Guarantee Management Inc. Chairman, Metropolitan Bank Chairman, Federal Land, Inc. University Board MBM, Asian Institute of Cebu Property Ventures and Holdings, Inc. Former President/Director, Global Corporation Former President, Management Corporation Director, Property Company of (China) Ltd. Chairman, Property Company of Chairman. Makati Business Club Management Development Corporation * Former Undersecretary of The Bank Phils. Chairman, LBP Service Association of the Philippines Director, Bancnet, Inc. Friends Inc. MBA, Columbia University, Friends, Inc. Chairman, Philippine Business for Former Chief Operating Officer, Department of Finance MBA, Finance, University of the Corporation Former Vice Chairman/President/ Trustee, Metrobank Foundation, Inc. Director, Federal Land, Inc. New York BS Business Administration, the Environment Ortigas & Company Masters of Laws, London School Philippines Former Secretary, Department of CEO, Development Bank of the BS Management Engineering, AB Economics, Ateneo de Manila University of Southern President and CEO, Cavitex Former Independent Director, of Economics & Political Science Trade and Industry Philippines Ateneo de Manila California Holdings Inc. First Metro Investment Corp. Former Secretary, Department of Former Undersecretary for BS Chemical Engineering, De La Chairman, Keyland Corporation Education Finance, Department of Salle University Chairman, YLD Holdings, Inc. Former President/CEO/ Land National Defense BS Business Administration, Bank of the Philippines MBM, Asian Institute of University of the East MBM, Asian Institute of Management Management

* Publicly Listed

52 53 BOARD OF ADVISERS THE FUTURE MADE POSSIBLE

SENIOR

ADVISERS Hon. Fidel V. Ramos James Go Carlos S. Chan Hon. Artemio V. Panganiban Senior Adviser Senior Adviser Senior Adviser Senior Adviser Former President, Republic of the Philippines Retired Chief Justice, Supreme Court of the Adviser, Metrobank Foundation, Inc. Chairman, Liwayway Marketing Corp. Philippines Chairman, Chan C. Bros, Inc. Chairman, Board of Advisers, Metrobank Chairman, Liwayway (China) Co., Ltd. Foundation, Inc. Special Envoy of the President for the People’s Republic of China

ADVISERS

Cornelio C. Gison Dr. David K.P. Li Gabriel Chua Dr. Placido L. Mapa, Jr. David O. Chua Adviser Adviser Senior Adviser Senior Adviser Senior Adviser President, Cathay Pacific Steel Corp. Former Undersecretary, Department of Chairman/CEO, Bank of East Asia, Ltd. President, Solid State Multi Products Corp. Senior Adviser, Metrobank Foundation, Inc. Trustee, University of the East Finance Hong Kong Chairman, University of Asia & the Pacific Trustee, University of the East – Ramon Magsaysay Memorial Medical Center, Inc. Vice President, Federation of Filipino-Chinese Chambers of Commerce and Industry, Inc. Former Director, Philippine Stock Exchange

54 55 SENIOR OFFICERS THE FUTURE MADE POSSIBLE

Senior Officers Standing (L to R): EVP Maritess B. Antonio • EVP Vivian L. Tiu SVP Digs A. Dimagiba SVP Bernardino D. Ramos • EVP Corazon Ma. Therese B. Nepomuceno

SittingFinancial (L to R): Market EVP Aniceto M. Sobrepeña • SVP Homer Gerrard L. Ortega• SVP Jette C. Gamboa SectorsEVP Paul Robert Y. Murga • SVP Christine W. Yang • SVP Stephen S. See

Financial Markets Sector Standing (L to R): SVP Leandro Antonio G. Santillan SVP Anthony Paul C. Yap SVP Edgar Alan P. Guerrero

Sitting (L to R): SVP Maria Lizette B. Perez SEVP Fernand Antonio A. Tansingco SVP Angelica S. Reyes

56 57 SENIOR OFFICERS THE FUTURE MADE POSSIBLE

Institutional Banking Sector Financial and Control Sector From L to R: Standing (L to R): SVP Marilou C. Bartolome SVP Leopoldo M. Ubaldo SEVP Joshua E. Naing SVP Nelson G. See SVP Quintin T. Medrano, Jr. SVP Pocholo V. Dela Peña EVP Amelin S. Yao

Sitting (L to R): SVP Mary Rose S. Tiamson EVP Mary Mylene A. Caparas SVP Antonio R. Ocampo, Jr. SVP Ferlou I. Evangelista

Not in photo: SVP Fermin T. Chio

Retail Banking Sector Standing (L to R): SVP Teresita L. Dy SVP Melizza Doris L. Guiao SVP Flordeliz T. Kwan SVP Susan L. Niere

Sitting (L to R): SVP Manolito M. Osorio SVP Lita S. Tan EVP Richard Benedict S. So SVP Emmeline D. Go

58 59 THE FUTURE MADE POSSIBLE Senior Officers List

FIRST VICE PRESIDENT Cabral, Emmanuel R. Tan, Mary Janet S. Diesmos, Adonis Manuel C. Oppus, Louie T. Abellar, Ma. Lourdes P. Cagurangan, Jose Mari S. Tee, Elsa U. Dimatatac, Wivina R. Osol, Ludivico G. CONTACT Abes, Kathryn Francis B. Calumpang, Eric A. Tenorio, Florencio A. Divinagracia, Maria Cecilia T. Osorio, Melchor V. Ajos, Jay Nazarene Christene A. Carreon, Reynilo M. Tiongson, Carmelita A. Dizon, Mervin S. Paatan, Yagtan Kenin S. Alcantara, Allen D. Chan, Susana Y. Tiu, Betty T. Domingo, Arnel F. Pacaña, Evangeline U. Almeda, Mary Jacqueline Justina H. Chiong, Easter Angela S. Trinidad, Anna Maria C. Enriquez, Albert T. Padilla, Jr., Lamberto M. Antonio, Leilani Anacleta F. Chiu, Mary Ann K. Untal, Alexander C. Escobar, Lourdes N. Pador, Flossie Mae G. Arjonillo, Carolina K. Cirujano, Edralino G. Valencia, Edwin M. Eustaquio, Christopher John H. Padua, Myla S. Bartolo, Eden L. Co, Cristina G. Valenzuela, Ma. Gingili A. Fabul, Monette A. Palma Jr., Rogelio V. INFORMATION Buenavista, Grace C. Cocabo, Jinnah E. Villa, Hector M. Fernandez, Ferdinand B. Panogan, Hrothgar M. Burgos, Reynaldo C. Coloma, Ma. Teresa A. Villegas, Cynthia G. Florendo, Steve V. Pantallon, Mark S. For inquiries on dividends, stock certificates, and related matters: EASTERN – 63555 METMKT PN (TELEX) Capili, Judy Grace D. Concepcion, Crisanto M. Yabut, Mark Dexter D. Francisco, Ma. Elizabeth A. Parreño, Joyce P. Capulong, Jovencio R. David, Jaqueline L. Yap, Sydney Thaddeus K. Fresnido, Gregorio III B. Pascual, Ruel A. FAX +632 817 6248 Centena, Mia S. De Guzman, Lyn L. Yee, Mary Ruth Frances M. Gabor, Melissa K. Patangan Jr., Vicente C. STOCK TRANSFER SECTION Chan, Marie Chorie Candice R. De Leon, Patricia May P. Ypil, Charito N. Gabriel, Eloisa A. Pecaña, Genevieve C. Chua, Claudine U. De los Reyes, Jonas R. Yu, Zenaida R. Galang, James Royce C. Pegenia, Jacky Lyn A. Metrobank Trust Banking Group, Member of the Philippine Deposit Insurance Corporation (PDIC) De Santos, Justina Ma. Teresita M. De Sagun-Madrid, Criselda Q. Galano, Romeo V. Pelaez, Joseph Eric D. 16th Floor Metrobank Center De Vera, Rosanna F. De Venecia III, Marcelo R. Garcia Jr., Rolando Paul C. Pineda, Patricia Carmen D. Dionisio, Rommel Enrico C. Dela Cruz, Margareth Luz C. ASSISTANT VICE PRESIDENT Garcia Jr., Romeo M. Pios, Erickson D. 35th Street corner 7th Avenue, Bonifacio Global City, A proud member of Bancnet Esguerra, Samuel D. Delizo, Ricardo S. Abarintos, Edda Rea C. Geronimo, Alizzabeth O. Plata, Lorelei P. Taguig City, Philippines 1634 Fajardo, Ma. Theresa A. Espino, Donato V. Acopiado, Ma. Lourdez A. Geronimo, Isidro A. Po, Cristina Y. Fragante, Leo R. Faustino, Joseph S. Aguilar, Angelito F. Gloria, Arthur Robert C. Ponce, Anna Katrina Y. Telephone: +632 857 5299 Head Office: Garcia, Jose Ramon C. Fernandez, Ma. Carlota C. Alday, Jarold S. Go, Andrew Michael G. Porcel, Harold P. +632 857 5695 Metrobank Plaza Gatchalian, Edna D. Florendo, Eugenia A. Alejandro, Vilma S. Golangco, Margaret C. Quesada, Nencie A. Koa, Alicia K. Francisco, Criselda N. Amantillo, Ma. Concepcion A. Gonzales, Cromel D. Quiñanola, Romberg E. Fax: +632 858 8517 Sen. Gil Puyat Avenue Lao, Carolyn T. Gan, Grace P. Andres, Zenaida S. Gonzales, Iris B. Quismundo, Victor M. Email: [email protected] Makati City, Philippines, 1200 Lim, Mary Joyce S. Gatuslao, Geralyn Q. Ang, Maria Jennifer P. Gregorio, Arleen Gay L. Raga, John Lindo, Ely Roy B. Gloriani, Emelita A. Ang, Michelle U. Grey, Bianca Denise J. Ramos, Anna Victoria B. Lu, Dennis Lawrence T. Go, Maria Elena R. Angala, Maria Salome P. Haveria, Melchor F. Ramos, Fe O. To know more about the Bank’s business, recent performance Lugue, Manolo T. Go, Nathaniel D. Angco, Ronaldo D. Heceta, Julita Corazon M. Ramos, Randolph John C. Malagar, Kathryn Kay T. Herradura, Renalita L. Angob, Maria Socorro T. Henson, Juan Marco S. Resurreccion, Cynthia C. and significant developments: Maraingan, Rey T. Icban, Ma. Theresa V. Anot, Jr., Alfredo D. Herico, Laarni L. Reyes, Ma. Glenda Y. Mariano, Federico T. Lecaros, Arnold A. Antiporda, Susan Q. Hernandez, Maria Zarah C. Reyes, Maurita C. Matriano, Romulo, Jr. M. Legaspi, Elizabeth B. Antonio, Rodolfo E. Herrera, Jose Emmanuel K. Rigodon, Eugene Celeste M. INVESTOR RELATIONS Navarra, Jasmine E. Legaspi, Elizabeth D. Anunciacion, Dante P. Ileto, Olivia Z. Rodriguez, David Lloyd D. Strategic Planning Division, Ng, Natalie T. Leh, Paul Terence T. Aquino, Roland Raphael A. Isip, Jose Mari V. Roque, Maria Emily R. Ochoa, Marie Antoinette M. Leung, Ramir M. Atraje, Maria Teresa S. Jiang, Peggy S. Rosana, Carlos E. 11th Floor Metrobank Plaza Ong, David S. Liao, Ma. Theresa E. Avila, Michael R. Jose, Dino R. Rosario, Bernadette S. Sen. Gil Puyat Avenue, Orlino, Christian Paul Philippe D. Lim, Walter C. Awa, Renato, Jr. V. Jose, Martin M. Rosario, Rolando G. Oxales, Maria Lourdes Veronica C. Lim, William C. Azada-Chua, Maria Cynthia K. Junio, Judy Minda O. Rubiano, Susanna L. Makati City, Philippines 1200 Padilla, John L. Liwanag, Fina Victoria S. Balajadia, Ma. Cecilia C. Kaamiño, Francis Joseph P. Saldua, Josephine A. Telephone: +632 857 9783 Palao, Katherine G. Lomigo, Happy Mar S. Baltazar, Airah S. Kua, Francis W. Salenga, Michele B. Pedrosa, Ricardo N. Lustre, Gemma Theresa A. Basconcillo, Priscilla S. Kua, Sharon B. Salonga, Enmar S. Fax: +632 817 6355 Reyes, Christopher Hector L. Mangaban, Neliza B. Bertulfo, Jinalyn R. Lariosa, John Benecer III, R. Salvador, Maria Virna A. Email: [email protected] Rivera, Elmer R. Manzano, Ma. Imelda L. Bilasano, Jasmin S. Larlar, Francis Rene B. Samonte, Helen A. Rivera, Melanie N. Mapa, Juan Placido III, T. Biyo, Alma D. Lasala, Maria Celeste F. Sanagustin, Jose Luis S. Roxas, Cynia C. Matibag, Virgin Glore E. Borce, Susan C. Laudico, Laurence John D. Sanchez, Irish G. CORPORATE COMMUNICATIONS Salcedo, Rosana R. Mayor, Maria Ana S. Bosita, Anna Gael D. Lawenko, Maria Lourdes Concepcion U. Sandil, Ricardo L. San Juan, Christian D. Medalla, Maria Nelia S. Cabaero, Claro B. Leonardo, Carilla S. Santos, Jose Enrico S. 19th Floor Metrobank Plaza Sevidal, Raquel N. Mercado, Rizaldo G. Calderon, Estela S. Leyson, Amelyn O. Santos, Krislyn H. Sen. Gil Puyat Avenue, Simbulan, Mylene S. Millonado, Maida Lourdes E. Candelaria, Liv Ivy Lane P. Lim, Steve Robertson L. Santos, Ma. Milagros Laureta D. Siriban, Cynthia P. Mozo, Michelle Anne G. Canicula, Jesus B. Limpin, Irmino Noel R. Sayo, Leomel C. Makati City, Philippines 1200 Sta. Ana, Lalaine C. Ong, Maria Rita Purificacion V. Canlas, Clair Aquin Ned P. Llave, Baby Amor R. Sierra, Diana O. Telephone: +632 857 5526 Tan, Irene Y. Ongsiaco, Edna O. Capacillo, Joyce L. Lo, Christy T. Sinay, Jeanilyn A. Tan, Roseanne T. Pamaran, Mary Rose R. Carag, Placido A. Lopez, Pamela Kristine L. Sinay, Roseminia R. Fax: +632 893 3726 Tobias, Benigno G. Panlilio-Amoranto, Janella Marie R. Cardillo, Hernando S. Lucido, Mirasol C. Singanon, Sophia Monica G. Email: [email protected] Tolentino, Lorna Y. Pascioles, Arnulfo, Jr. B. Carpio, Daryl L. Lukban, Lilibeth N. Sioson, Michelle Odette D. Trinidad, Maria Elena Z. Pasimio, Mikael Angelo S. Casalo, Janice Anne E. Macabidang, Eloisa S. Siy, Vida Jordana C. Ty, Zandra M. Payabyab, Ener F. Castillo, Teodoro Macalalad, Raul S. Sowy, Maria Theresa Z. For general inquiries, action on requests and customer comments: Urbiztondo, Rey C. Pelayo, Shirley S. Castro, Miriniza C. Maddatu, Rodrigo Albert D. Suarez, Alma V. Vasco, Jose Antonio O. Pineda, Angelo Emmanuel N. Celo, Jessica C. Madlangbayan, Reyni D. Suarez, Maria Victoria A. Victoriano, Randell D. Portugal, Jocelyn Joy Y. Chan, Policarpio S. Madrazo, Alma E. Suplico, Maria Ava Sharone S. 24/7 CONTACT CENTER Villanueva, Paul Donato V. Pua, Ivan Charlton U. Chu, Cherry Joy S. Magbual, Eugenio R. Sy, Janet U. Wong, Jay S. Que, Marilou P. Chua, Helen C. Magpayo, Ruth Salome A. Tan, Catherine C. Metro Manila: +6328700700 Xu, May Sherri M. Que, Winny S. Chua, Marianne T. Magsalin, Ma. Dulce D. Tan, John Paul V. Domestic Toll Free: 1 800 1888 5775 Yuseco, Noel Peter Z. Rabot, Joel U. Chuaunsu, Merriam Josephine Malan, Joel Julio M. Tan, Vivien V. Zamora, Anthony Albert M. Reyes, Ma. Imelda A. Socorro M. Mampusti, Ariel D. Tantuan, Mercy M. Email: [email protected] Zamora, Ruben L. Reyes, Maria Sharon C. Cledera, Jean L. Manansala, Fernando Jose T. Teodoro, Denny L. Rivera, Teddy D. Co, Agnes C. Manzano, Ivy Din A. Tigas, Anna Melissa U. Rosette, Edita E. Constantino, Marilyn M. Marasigan, Teresita O. Tuason, Geoffrey V. For Head Office Center units and directory assistance: VICE PRESIDENT Roxas, Anna Sylvia E. Cordero, Eufrocina C. Mariano, Evelyn D. Tuason, Maria Angelica D. Abueg, Alona A. Roxas, Eriberto Pedro Antonio C. Cruz, Darius M. Mariano, Ernest Michael, Jr. L. Uy, Archie L. Alcantara, Jose Miguel Paolo F. Ruiz, Cynthia G. Cruz, Dennis Ryan V. Mariano, Jose Bayani T. Uyboco, Mercedes Desiree P. HEAD OFFICE TRUNKLINE Alcid, Myleen D. Salazar, Robert Manuel B. Cuenca, Lirio Luna D. Mariano, Marian Louise F. Valencia, Alfredo P. Telephone: +632 898 8000 Alejandrino, Randy A. Salientes, Rodolfo J. Cumigad, Edward C. Medina, Augusto, Jr. G. Valeriano, Ma. Michelle S. Alincastre Jr., Celso Manuel G. Samaniego, Chad Aaron R. Curato, Raymund D. Mendez, Diana Lou N. Varquez, Esther T. +632 857 0000 Amiscaray, Gina Rowena V. Samonte, Angela Esperanza M. Curso III, Vicente B. Mendiola Jr., Ernesto E. Velez, Ma Christina A. Arellano, Hector B. San Miguel, Rolando L. Cuyugan, Ruth C. Mendoza, Alexander P. Verceles, Josefina Janet F. Arenas, Celina A. Sanchez, Enrico E. Dampitan, Maria Arlene A. Mercado, Maureen S. Villanueva, Marlon L. www.metrobank.com.ph Balagtas, Dennis Edmund E. Santiago, Eduardo R. David, Joseph C. Mir, Marjorie N. Villaruel, Helen B. Balatbat, Armelyn G. Santos, Ruben L. De Castro, Ma. Theresa N. Muñoz, Antonio T. Wenceslao, Violeta D. Bandong, Angela Juvy C. Santos, Vanessa Grace Y. De Guia, Florinda L. Nagasan, Nerisa D. Wilwayco, Rowena R. Metrobank is the country’s premier universal bank, with an Barlis, Armand B. Santos, Veronica C. De Jesus, Jude Martin Peter S. Navarrete, Nikki Rose A. Wong, Charlene U. extensive consolidated network that spans over 2,300 ATMs Bautista, Dionnette P. Seludo, Mary Grace J. De Jose, Jane D. Navarro, Don Manolo M. Yap, Francisco P. Bautista, Ildemarc C. Siapuatco, Ma. Dolores L. De Leon, Bernard M. Nazareno, Algen F. Yap, Jose Conrado Ildefonso R. nationwide, more than 950 domestic branches, and 31 foreign Bauto, Ramoncito O. Sio, Midel A. De Vera, Dinna B. Ngo, Ma. Victoria G. Yapson, Ma. Socorro L. branches, subsidiaries and representative offices. Beltran, Ma. Jizzelle Lee M. Siochi, Reynaldo C. Del Moral, Dorotheyo B. Nicdao, Ramon P. Yrureta, Daisy C. Berbaño, Noel L. Tan, Helen L. Dela Cruz, Jon Sherbert G. Nieto, Anabel N. Yuson, Jr. Inocencio Y. Bernabe, Laarni D. Tan, Jennifer G. Dela Victoria, Evelyn G. Oliquino, Senen M. Bormate, Rebecca B. Tan, Leny C. Delos Santos, Ma. Victoria D. Oliva, Erwin Lemuel G.

60 61 DR. GEORGE S.K. TY

Visionary founder Sincere business partner Generous philantropist

He founded Metrobank and built it based on the philosophy of helping others. 56 years later, it has become one of the most enduring legends of entrepreneurship in the country. For him, business was more than just about making money, it was about trust and relationships. He lived by an unwavering set of principles in all aspects of his life. Dr Ty’s legacy of business leadership is now in the hands of the next generation. We will honor his memory by committing to keep all our customers and stakeholders in good hands. On behalf of the Officers and Staff of the Metrobank Group, thank you and God speed our beloved Group Chairman.

placement reference for CD holder Head Office: Metrobank Plaza Sen. Gil Puyat Avenue Makati City, Philippines 1200