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Pivoting to the Future

Vision Mission*To be the country’s premiere financial conglomerate, empowering our individual and business clients to realize their goals and reach their full potential. By creating and customizing financial solutions in response to our stakeholders’ needs, continuously expanding our scope of reach, and leading in community service, we live up to our “You’re in Good Hands” promise that embodies who we are and what we do. We are Metrobank.

*The Vision Mission Statement (VMS) was approved by the Board in December 2016

We Commit to be

THE TRUSTED FINANCIAL PARTNEROur business relies on the principles of trust, honesty and integrity as we serve our customers and help them attain their financial goals.

THE EMPLOYER OF CHOICEWe strengthen the organization by continuously developing and enhancing the abilities of our people.

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

RESPONSIBLE BANKWe adhere to the highest standards of corporate governance, exercising accountability, fairness, and transparency across all our business operations.

We exercise good management to provide our shareholders with sustainable returns on their investments.

AN INSTITUTION WITH A HEARTWe give back to the communities we serve, committed to making meaningful contributions to the economic and social development of our nation.

Core Values• Passion for Results• Integrity• Teamwork• Commitment to Customer Service• Heart for Community

For over half a century, Metrobank has operated on the foundation of trust.

Group CHAIRMAN’S MESSAGE

It has been my life’s greatest honor to work alongside you towards achieving success for generation after generation. Thank you for your trust.

Customers have stayed with us for our financial expertise and our standards in providing business solutions. Knowing our clients well was critical in allowing us to do this. And on top of that, we have a solid team that exemplifies the Bank’s values and level of service.

Our brand promise says it all: “You’re in Good Hands with Metrobank.” We have kept this promise for the past 55 years because of our dedication, conviction, and the trust that our clients have bestowed on us. These elements fueled our drive to go over and beyond and give them the service they deserve.

Over the years, we have been ambitious yet grounded by our principles, knowing when to be quick and nimble while remaining resilient and rooted through every season of growth. That’s what Metrobank has always been: a balancing act of dexterity and integrity.

As we move forward to more vibrant times ahead – a fast-moving economy, a saturated marketplace, and the boom of digital impacting business like never before – we pivot to the future confident and armed with strategies that will ensure our success for generation after generation.

It has been my life’s greatest honor to work alongside you towards achieving success for generation after generation. Thank you for your trust.

As we make this pivotal turn to our best, brightest, and strongest years ahead, know that you are – and will always be – in good hands with Metrobank.

DR . GEORGE S.K. TYFounder, MetrobankChairman, Metrobank Group

P IVOTING TO THE FUTURE 3

Dear fellow shareholders,

There are a number of reasons why both local and foreign investors remain optimistic about the Philippine economy.

First, the Philippines has continuously been outpacing its Asian counterparts and is the fastest growing in the region, next only to China. Growth opportunities continue to be sustained at all-time high levels.

Structural reforms have also been put in place to ensure inclusive growth. This, coupled with the new BSP leadership stressing continuity to stabilize the banking system, lays a firm foundation that will catalyze more substantial investments and increase economic development.

In spite of expectations for higher inflation and rising interest rates, the Philippine economy has continued to perform well through the volatility. In recent years, the country has developed into one of the fastest growing economies, not only in Asia but in the world.

This recent surge in the economy however is set against a competitive banking landscape that has become even more challenging with local and international players coming from all fronts: big and mid-sized companies, foreign banks, and even non-banking institutions like finance techs.

Indeed, the economic horizon is exciting. And the future is bright. The question is: How does Your Bank make sure that in the midst of all this, our future stays bright?

Simple. We pivot to the future.

We will keep moving towards a more customer-centric path – a route that engages those who have journeyed with us through the years and welcomes new clients that we shall attract and keep. This positions us with a competitive advantage amidst the pool of financial institutions operating in the country.

As we make this shift, we take precise, calculated, and strategic steps to towards achieving sustainable growth – one that welcomes the digital space, while at the same time, keeping the brand of customer care Metrobank has been known for in the past 55 years.

CHAIRMAN’S MESSAGE

We welcome change by keeping what has worked for us through the years while still giving ourselves enough flexibility to re-work, renew, and re-fuel what can be bigger, better and stronger than ever before.

METROPOLITAN B ANK & TRUST CO.4

We welcome change by keeping what has worked for us through the years while still giving ourselves enough flexibility to re-work, renew, and re-fuel what can be bigger, better and stronger.

A step towards the future begins by taking stock of our roots. In this shift, we must remember who we are, and the principles that have endeared us to our customers. We are a commercial bank that deeply empathizes with our clients, customizes tailor-fit solutions to achieve their financial goals, and give them not just sound banking advice but all the support that their growing businesses need.

Grounded on our identity, we pivot to the future with a customer-centric strategy.

At Metrobank, we believe that it’s not just a matter of speed and automation. It’s also about service and human connection. It’s not just about making transactions. It’s also about nurturing interactions. And ultimately, it’s not just about developing products. It is about engaging and caring about people. That’s why we put our clients at the heart of everything we do.

To achieve this, our strategy is to take a holistic approach in customer care and in fulfilling the customer experience.

First, we have grouped ourselves into needs-based segments: large corporations, middle market, SMEs, and retail. We recognize that each segment’s needs are obviously unique, and therefore their expectations and requirements will likewise be different. To support our customer experience strategy, we are building our IT and process capabilities alongside focusing on people development and leadership. We need dynamic, progressive, and well-trained people to take us to the next level. And at the same time, we have to continuously improve our digital proposition specifically product development and innovation.

After a series of hiring to boost our frontline coverage in previous years, our focus on training this young corps is currently ongoing. Soon, we shall see the fruits of our efforts as these new hires are deployed to the frontline to service customer needs.

Our branch strategy has also started to shift. In the past, we used to open a considerable number of branches a year. Now that we have an extensive geographic footprint with close to

55% of branches outside Metro Manila and in the high growth areas, we anticipate that we will be less dependent on the traditional brick and mortar set-up and consequently will only be opening a few branches per year. This is consistent with the view that eventually, banking services will start shifting to the more convenient and more efficient online and digital space.

All these efforts have started to produce good returns. Core income is up 10% last year and we have maintained our strong market rankings. Our balance sheet is primed for growth and we are positioned to build scalability of the business.

The Bank’s consistent solid performance is largely because of our people’s hard work and dedication.

Their commitment proved unwavering especially when we had to deal with many challenges last year from both external and internal fronts – a test that we passed not only due to our people’s loyalty, but equally because of our clients’ trust and support. Despite the situation, overall results for the Bank continued to be positive and our path is lighted with optimism.

As we move forward, our priorities and corporate objectives remain clear : To ensure the sustainability of our business and to strengthen our market position by staying relevant to the evolving needs of our customers.

As we work towards this goal, we would like to sincerely thank you, our partners, stakeholders, leaders and team members. We deeply appreciate your trust and loyalty.

To our customers: It is our honor to give you the care and service you deserve. Thank you for choosing Metrobank. We will stay true to keeping you in good hands.

Arthur TyChairman

METROPOLITAN B ANK & TRUST CO. P IVOTING TO THE FUTURE6 7

The Philippine economy capped 2017 with a solid finish with full-year average growth of 6.7%, thus keeping the country’s title as

the fastest growing economy in the ASEAN region. The expansion was mainly driven by solid consumption spending, strong performance of the exports sector, vibrant industry and service sectors, and sustained pickup in government spending.

Reflective of this robust growth and positive sentiment, the Philippine Stock Market was up an impressive 28% for the year. And in support of the economic development, the banking industry delivered another strong showing. Loan growth increased to 19% overall, and deposit growth continued to be healthy at 12%. The industry greeted a new BSP Governor in the middle of 2017 and welcomed his approach towards ensuring continuity of policy from his predecessor.

On its 55th year, Your Bank continued to make strides in growing its core business.

Total resources for the Group closed at a new high of P2.1 trillion, cementing Metrobank as one of the leaders in the local industry. Consolidated net income came in at P18.2 billion in 2017, up 10% on a core basis.

The Bank’s strong performance in 2017 was driven by robust growth in loans and deposits, which in turn resulted in improved margins. Given our focus on increasing efficiency, we also managed to improve our operating leverage.

The Group ended the year with total deposits of P1.5 trillion, with low cost deposits increasing 12% to P950 billion for a 62% CASA ratio. This provided the stable low cost funding that fueled our healthy loan expansion.

Sustaining the momentum from previous quarters, the loan portfolio expanded by 19% year-on-year to hit P1.3 trillion. The commercial segment led the growth at 20% with key contributions across large corporates, middle-market commercial names and even SMEs. The consumer loan portfolio on the other hand increased by 17%.

Net interest margin has been steadily moving up, and last year we continued to be superior to peers. Our NIMs ended the year at 3.8% or 21 basis points higher from last year, mainly driven by improving asset yields. As a result, net interest income increased 16% to P61.4 billion, and accounted for 73% of the Bank’s P83.6 billion total operating income.

Meanwhile, non-interest income reached P22.1 billion, which consists of P12.4 billion in service charges and commissions and income from trust, P3.9 billion from trading and FX gains, and miscellaneous income of P5.9 billion.

PRESIDENT’S Report

Your Bank ensures that the uncertainties that may arise cannot break or even shake the bedrock on where we stand.

P IVOTING TO THE FUTURE 9

With the greater focus on improving efficiency, expenses were kept at a reasonable level with cost growth at only 6% as we looked to rationalize our network and leverage on our existing manpower complement.

On a consolidated basis, we ended the year with 953 branches and over 2,300 ATMs nationwide. More than half of these branches are located outside Metro Manila, putting us in a good position to gain market share in the country’s high growth areas.

Even as we grew loans faster than market, asset quality continued to be better than industry with non-performing loans ratio at 1.0%. The Bank reported provisions for credit and impairment losses of P7.5 billion including a one-off booking in the third quarter.

On a Basel III basis, total capital adequacy ratio was at 14.4% with Common Equity Tier 1 at 11.8%.

Our success leverages on the strength of our partners within the Metrobank franchise.

Reflective of the rising per capita levels and strong consumer spending in the country, our consumer related subsidiaries reported strong performance in their respective areas.

Philippine Savings Bank (PSBank), the thrift banking arm of Metrobank Group, reported a net income of P2.7 billion in 2017, 8.3% higher than the P2.5 billion recorded in the previous year. Continued strong performance of core revenues composed of net interest income and fee based income remains to be the main driver of the increase in profits.

Metrobank Card Corporation (MCC) maintained its number one ranking in terms of cards-in-force and receivables among members of the Credit Card Association of the Philippines (CCAP). MCC raised its total assets by over 20% and doubled its net income to P5.1billion.

AXA Philippines also had a strong year in 2017 rising to over one million customers who are protected under various individual and group life insurance products. Following its entry into the non-life insurance business with the acquisition of Charter Ping-An, the fourth largest non-life insurance company in the Philippines, AXA Philippines ended 2017 with P5.7 billion gross premium written for its general insurance arm.

First Metro continued to be a leader in the domestic capital markets, successfully completing 13 deals in 2017. FMIC participated in 67% of the total publicly listed capital markets transactions as the investment bank again provided the Group’s customers alternative funding requirements outside of the usual commercial banking sphere.

Lastly, ORIX METRO Leasing and Finance Corporation also delivered a solid financial performance for the Group. ORIX surpassed practically every financial metric it had set out to achieve last year reporting strong growth in resources and net income levels.

Moving forward, Metrobank’s medium-term strategy remains anchored on its corporate objective of sustaining and expanding its market relevance through continuous improvement in customer experience, operational efficiency and people development.

To pivot to the future, create a powerful differentiating factor, and cut through the competition, Your Bank is arming itself with a Customer Experience (CEx) strategy. We intend to continue allocating resources to improve process and IT capabilities, leadership development, and technical and people management skills. In support of these efforts we focused on continuous process improvements, highlighted by a shift in our core banking system to build efficiency and scalability as well as system enhancements to improve the overall customer experience. The upgrades have been ongoing and the new core banking system is expected to be operational by next year. Additionally, we have been strengthening the Bank’s framework for control and governance. We invested in talent with strong technology backgrounds to bolster our business process re-engineering and innovation teams.

For 2018, global economic growth is expected to be broad-based and extend to both developed and emerging economies. Locally, we expect higher economic expansion largely hinged on faster investment spending growth alongside increased spending in public infrastructure.

The growth in 2017 shows that the economy is on a solid footing and could likely be poised to achieve even faster expansion in 2018. Growth is expected to be supported by a pickup in household spending, sustained growth in government spending, robust Industry and Services sectors, and continued strong expansion of the export sector. Expected revenues from the government’s Tax Reform for Acceleration and Inclusion

(TRAIN) law would ensure that the government has enough spending power for the Build Build Build program and could likely translate to sustained higher GDP growth in the coming years. Sustained infrastructure outlays should underpin investment spending moving forward. The government’s infrastructure program will open more opportunities for the private sector to expand business activities and increase capital spending. However, risks to the domestic economy nevertheless remain amid the effects of the still diverse global economic growth and impact of financial market volatilities.

I am confident that our 55 years in the business prepared us well enough to overcome whatever tomorrow brings. The stability that we built over the past decades always goes back to our thrust of rendering interminable quality service to our clients. By pivoting to the future, Your Bank ensures that the uncertainties that may arise cannot break or even shake the bedrock on where we stand.

In closing, I would like to give credit to our employees for their dedication and diligence, and for their effort in staying true to our customer promise.

Lastly, I would like to give my heartfelt thanks and appreciation to our customers and stakeholders for your continued loyalty and trust in Metrobank. You are our main priority and all our efforts are directed towards ensuring that we keep you in good hands.

Fabian S. DeePresident


2017 Group Highlights

PHP 2.1 Trillion

Total Assets

PHP 1.5 Trillion

Total DepositsPHP 202

Billion

Total Equity

PHP 18.2 Billion

Net Income

PHP 5.73Earnings Per Share

PHP 1.3 Trillion

Net Loans and Receivables

12 13METROPOLITAN B ANK & TRUST CO. P IVOTING TO THE FUTURE

We believe in empowering the next generation.

They are individuals who hold the key to an even more promising future. As we turn our eyes on the potential of the retail customers, we understand how the values of hard-work, creativity and ambition will fuel their passion to build a successful future. We are here to support their dreams as they become the movers and shakers of the next generations.


Metrobank has always taken pride in nurturing client relationships. Throughout our history, we have partnered with many clients who evolved from small businesses into large successful enterprises and in turn supported the growth of the Philippine economy.

We have shown the unique ability to spot potential and build lasting partnerships with our customers.

We have always played a part in nation-building.Across our entire commercial portfolio – from large corporate names down to the SMEs, we have empowered clients to prosper and boost the growth of the economy. In 2017, we already booked a number of landmark transactions in the corporate and commercial space. Now that the Philippines is at the crossroads of a massive infrastructure development plan, we foresee more projects and unprecedented growth for the country. We stand ready once again to partner with our customers as we ride this wave of growth and development.

Metrobank’s strong performance in lending was led by the Commercial Segment which continues to be the Bank’s main area of focus and accounts for 76% of the Bank’s total loan portfolio. This segment grew by 20% across Large Corporates, Middle Market Clients, and SMEs.

The build-up of our branch network and hiring of account officers and relationship managers positioned us at the heart of economic development. With a formidable coverage platform, Metrobank was also able to identify

economic progress

Programme. While we have yet to drawdown on any of these facilities, these sources of funding will position us to participate in the government’s infrastructure program which would support nation building and further fuel the growth of the economy.

Even with secured sources of funding to fuel our growth, the backdrop of volatile market conditions made it imperative that Metrobank continued with its trademark approach of providing bespoke services to its clients and keeping them up to date with recent industry dynamics.

We continued our approach of hosting events designed for the Bank to keep a pulse on their needs, engage the customers, and level up our brand of customer care. These included our regular “Kapihan

Sessions” for SME clients nationwide as well as economic briefings and seminars designed to keep our commercial customers aware of market developments.

Quantitatively, while the headline numbers indicate growth rates and market share gains, the quality and type of transactions were of equal importance. The depth of our customer relations allowed us to gain a better understanding of their needs and positioned us to provide true financial services for their requirements.

At the heart ofopportunities and serviced the funding requirements of clients across the nation, particularly in high growth areas in the countryside.

As we prepared for a surge in government infrastructure spending in the coming years, we prudently set-up credit lines and facilities to support this drive. Last year, we established a RMB2 billion facility with China Development Bank, a US$900 million credit line with Export-Import Bank of China and also completed a US$2 billion Medium Term Note

This clearly shows in our range of deals that we closed last year. We provided financials services for short-term working capital requirements to long-term capital expenditure needs. Our transaction banking services were tailor fit to allow our customers to become more efficient in their business. And with the volatile market conditions starting to creep in, our treasury specialists provided them the solutions needed to maintain their strong financial standing.

Overall, our performance in 2017 indicated precisely how we were able to customize customer solutions and also demonstrates how the synergies of the Metrobank Group can provide total financial services to our commercial customers.

Breakthrough Deals:• Aboitiz Equity Ventures CRH

Holdings P5 billion loan• Ayala Land Inc. P10 billion

bilateral term loan facility• Globe Telecom US$155 million

bilateral loan facility• Metro Pacific Tollways, Corp.

P4billion bilateral term loan facility

• Wilcon Depot, Inc. P7.04 billion IPO – FMIC acted as Sole Issue Manager

It’s all about forging true partnerships.


In all aspects of the Retail and Consumer front – from network and coverage to consumer promotions, the Bank has accomplished key milestones.

Metrobank maximized the use of its extensive network coverage. The Bank ended 2017 with 953 branches nationwide. More importantly about 55% of these branches are located in the countryside, placing the Bank in a good position to capture opportunities in the high growth areas. This physical branch network is supported by 2,352 ATMs all over the country.

The 24/7 access of our e-channels, which included ATMs, Cash Accept Machines (CAMs), online and mobile banking provided a convenient alternative for our customers to continue their banking transactions anytime and anywhere.

Last year we started to see a shift in our transaction mix from the traditional over-the-counter to now having more e-channel transactions. Close to 20% of the volume of our transactions last year were already coursed through these alternative channels. This boosted our efficiency gains, improved customer convenience and allowed our branch personnel the opportunity to provide better services to the higher value added transactions that were coursed through the traditional channels.

Communication is a powerful tool for building a good partnership.

As a result, this coverage mix boosted the Bank’s strong deposit franchise and provided the Bank with the funding requirements needed to support its loan growth. Our core CASA deposits increased by a healthy 12% to reach a CASA ratio of 62%. The Bank’s overall deposit level hit a high of P1.5 trillion last year.

Our remittance services also continue to be supported by a well-diversified network of remittance centers in Asia, Europe and North America which has enabled it to become a leading provider of remittance services to OFWs.

Metrobank has several remittance arrangements with banks and remittance tie-ups and agents in regions with high concentrations of OFWs. As of December 31, 2017, the Group had 134 remittance tie-ups and approximately 180 remittance agents present in the United States, Europe, the Middle East, and the Asia Pacific.

Metrobank had close to US$5 billion or approximately 18.7% of the total remittance volume for the Philippines in 2017 based on data from the BSP.

Powered by growing hyper-connectivity, we

developed a new app that

truly takes the customer to the

next level of service.

A redirection towards a more customer-centric path


Consumer Loans continued to grow, increasing steadily at 17% year-on-year. This was driven mainly by the auto segment, followed by credit cards as well as mortgage loans.

The growth in the various categories was reflective of the recent industry developments. For example, the continued shift towards motorization drove the strong growth in auto, while rising per capita levels, particularly in the middle-income segment boosted the credit card business.

We launched the Car Loan Great Rates Sale promo last June 2017 that brought in substantial car loan bookings. This was aligned with our efforts to create a hassle-free customer experience.

We also launched the Metrobank Car Loan Online Application (MCOLA) last June. Through MCOLA, the application process is now mobile optimized. After the initial application documents are uploaded via the website, client details eventually auto-populate to the succeeding modules after which clients shall fill out a simplified one-page form. This feature allowed for faster and more convenient customer transactions. To complete the customer experience, the app also includes a car buyer’s guide with a wide array of models to choose from.

The goal of improving customer experience continues to drive our efforts for process improvements and product enhancement.

Our products and services assure clients of a productive yield.

Rising per capita income has fueled the growth in consumer lending.

Internally, consumer lending embarked on various process improvement and training activities to improve customer experience.

Consumer Promotions

• Metrobank partnered with various retail merchants to offer promos for the Metrobank Account One, Debit and Prepaid Mastercard cardholders. It was recognized as Asian Banker’s Retail Payments Product of the Year for 2017.

• PSBank redesigned the PSBank Mobile App. New functionalities were added, some being a first of its kind in the local banking industry such as PayMe, TouchID, and the In-App One Time Password.

• PSBank also launched Cardless Withdrawal. This allows clients to conveniently and securely withdraw cash from any PSBank ATM without using a PSBank ATM Card.

• Metrobank Card Corp. launched the Victory Liner Premiere Prepaid Visa while sustaining its promos with premium restaurants and hotels.


A thrust towards providing customized solutions

In the past year, our team of specialists in the Financial Markets Sector (FMS) had achieved notable growth and garnered various awards – a nod to the Bank’s expertise in managing high net worth clientele.

Today, we continue to exhibit strength in the wealth space by matching sophisticated client needs and requirements of high net worth individuals with a team of highly trained specialists. Products can range from simple fixed income or FX products for retail customers to complex swaps, hedges, and derivatives for commercial clients.

Throughout the process of wealth management, Metrobank not only ensures full compliance with regulations and practices but also takes into consideration the appropriate risk appetite for the type of product being offered.

In line with our thrust towards providing customized solutions to a diverse range of customers, our Financial Markets Sector also branched out its internal set-up to cater to various customer needs.

Our Private Wealth unit is responsible for managing and deepening the Bank’s relationships with its ultra High Net Worth Individuals. This unit provides portfolio management, investment advice, insurance and wealth planning through various

Metrobank demonstrates

a strong commitment in providing

new innovative products and

services to improve customer

experience.

product providers. We also have a team dedicated to servicing the requirements of institutional clients. This team is responsible for managing the Bank’s relationships with its non-bank financial institutional clients, both locally and offshore. These FMS units continued to identify new-to-bank clients with growth potential and cross-selling opportunities. Additionally, they have been responsible for deepening the Bank’s relationships with existing clients.

While the volatile markets were challenging for our customers, it also presented an opportunity for Metrobank to step-up and deliver on their requirements. As a result, our Markets Sales Group bagged a number of breakthrough deals in foreign exchange and derivatives with various large and medium-sized corporations and multinationals resulting from unique solutions provided. The Group also saw a 50% growth in customer foreign exchange volume.

The strong performance of FMS was recognized by the industry, specifically in the PDS Awards. For the 5th straight year, Metrobank was awarded the Cesar EA Virata Award for Best Securities House. The Bank was once again the most warded institution, recognized for excellence in FX, Fixed Income Dealing, Corporate Securities and Brokering, among others.


Lastly, our Trust Banking Group (TBG) continued increasing its customer base and trust volumes and also launched a number of new products in 2017. TBG opened about 300 new accounts in both the traditional personal and corporate space, as well as over 60 accounts for other fiduciary services. As a result, Trust Assets Under Management (AUM) increased to P450billion in 2017. For its performance in 2017, Wealth & Finance International named Metrobank as the Best UITF Fund Provider in the Philippines.

New products launched

• Metro Short Term Fund: A Peso-denominated money market Unit Investment Trust Fund (UITF) that aims to achieve liquidity and income slightly higher than regular time deposit products by investing in a diversified portfolio of Peso-denominated money market instruments and fixed income securities with a maximum weighted average duration of one year

• Metro Unit Paying Fund: A Peso-denominated balanced unit-paying UITF that aims

We provide a solution for every need.

to achieve income from a portfolio of preferred shares listed at the Philippine Stock Exchange (PSE) and Peso-denominated fixed income instruments and securities

• Metro$ Asian Investment Grade Bond Fund: A Dollar-denominated long-term bond UITF invested in a diversified portfolio of investment grade fixed income securities issued within the Asian region with a maximum weighted average duration of eight years

• First Metro Securities Brokerage launch Fundsmart: A new online platform which will serve as a one-stop-shop mutual fund investment facility.

• First Metro Asset Management, Inc. (FAMI) and globally renowned index provider MSCI, Inc. launched an 18-stock index that is designed to capture the Philippine consumption-led growth story with exposure to industries such as food and beverage manufacturing/processing, fast food and restaurants, mall development, communications, financial services, tourism, transportation and more.


leadersIn 2017, Human Resource Management Group (HRMG) and Learning and Development Division (LDD) strengthened its partnership and provided evidence for the value of leadership development:

3 Rolled out a structured identification of talents using a standard criteria across all leadership levels

3 Institutionalized the external validation of talents’ leadership potential and competencies in partnership with a 3rd party assessor and profiled talent strengths, competency and development areas to create a focused development plan

3 Customized development for each talent through an individually designed Development Plan that impacts on specific behavioural trait changes to support handling of challenges from major shifts in the business and culture

3 Evolved the established Leadership and Management Development Program (LMDP) offerings to provide leaders with basic and advanced leadership and management competencies.

3 Continued to define and deliver technical, functional and regulatory courses to ensure that employees are equipped to meet the demands of their jobs.

3 Structured and implemented immersion activities for selected leaders to develop talents’ institutional mindset and cross-functional skills

3 A particular highlight is institutionalizing the Mentoring Program for talents in the Ascend Program which consisted of a series of discussions focused on ensuring that business insights are cascaded to future leaders in a manner that will augment their knowledge for navigating in the organization

3 Implemented an institutionalized Stakeholders’ Feedforward (SFF) as a feedback mechanism for talents’ improvement of committed behavioral changes, helping the managers and talents understand the impact or leadership learning and development programs and measure on-the-job results

Overall, 2017 was concluded positively and the program will keep the momentum in 2018 to strengthen engagement and motivation of talents to take ownership of their leadership journey.

Senior Management Selection

The Bank has job descriptions for the key positions, and assesses the qualifications of any candidate for the role.

Any candidate undergoes a series of interviews by the Line Head, HRMG, President, Chairman and the appropriate board committee(s). Any hiring or appointment to the role is approved by Manpower Committee (MANCOM), Nominations Committee (NomCom) and the Board.

Developing thenext generation of

2017 Ascend and Leadership Program


Performance Assessment Management

The Bank’s Performance Assessment and Management System (PAMS) measures the employee’s performance contribution based on clearly defined targets, goals and standards.

Orientation and Education Program

The Metrobank Academy provides structured learning for each of the phases in the employees’ development:

a. Introduce the Bank, its organization, business and directions and induct employees to what the Bank represents. This is the ONBOARDING PHASE.

b. Perform current job assignment. This is the JOB CERTIFICATION PHASE.

c. Perform for higher responsibilities. This is the SUCCESSION PREPARATION PHASE.

Retirement and Succession Policy

The process of identification and developing leaders has been institutionalized to objectively assess employee’s potential to assume higher responsibilities, especially to ensure succession planning. This is contained in the November 2017 Board approved HR policy on Ascend – Leadership Development Program.The Bank provides a Retirement Plan for its employees and employee’s beneficiaries in case of the employee’s death, permanent total disability and retirement. The plan was approved by the Bureau of Internal Revenue on March 2014.

The normal/compulsory retirement of Bank employees occurs at the age of 55 years old or 30 years of service, whichever comes first.

Code of Business Conduct and Ethics

The revised Code of Conduct was approved by the Board on November 22, 2017 and is set to take effect by January 1, 2018. The revised Code of Conduct is anchored on the Bank’s Core Values. Further, it defines the expected behavior of all employees across ten (10) Standards of Conduct.It will be disseminated to all employees in January 2018. The employees are required to submit an acknowledge receipt that they have read, understood and will comply with the Code.

Further, the Code of Conduct is discussed with the new employees of the bank during their New Employee’s Orientation (every 1st and 16th of the month). There are regular advisories about the Code and standards of right behavior are shared during training and on various units’ meetings.

2017 EmployeeDemographics

RF

Officers

Rank

52% 48%

Female

Male

S. Officer

J. Officer

R/F

Overall

Gender

57%

63%

67%

33%

65%

35%

43%

37%

Less 40+

Less 40

S. Officer

J. Officer

R/F

Overall

Age

95%

46%

10%

90%

29%

71%

5%

54%

S. Officer J. Officer R/F Overall

31%

69%

42%

58%

84%

16%

63%

37%

Tenure

Less than 10 years

10+ years

Office of the President

Credit Strategic Planning

HR/ Learning &

Dev’t

InformationTechnology Operations General

ServicesInternational

Offices

Risk Management

Group

InternalAuditGroup

ComplianceDivision

Anti MoneyLaundering

Division

Summary of Organizational Structure

Branches and Consumer

EVP Richard Benedict S. So, 52SVP Lita S. Tan, 54

SVP Rowena D. Oliveros, 60

Institutional Banking Sector

EVP Mylene A. Caparas, 53

Financial Markets Sector

SEVP Fernand Antonio A. Tansingco, 52

Financial and Control Sector

SEVP Joshua E. Naing, 57

Functional and administrativeAdministrative only, reports to the respective Board Committee


Effective Recourse / Handling of Customer Concerns

A critical component of the Bank’s Customer Protection Program is providing its customers accessible and hassle-free channels with which they could communicate their inquiries, concerns and feedback. These are in the form of 24/7 Contact Center which handles calls and e-mails, Social Media (Facebook), MetrobankDirect Online and Mobile Banking.

Further, the Bank has implemented the Customer Incident Management Policy and System, which standardized the handling of customer complaints to ensure that these are addressed within a set turnaround time through centralized logging and monitoring. With this, the Bank is able to gain valuable customer insights, identify trends and address recurring incidents, improve its products and services to better customer experience.

In 2017, total complaints increased by 8.8% in line with the increase in transaction volumes. The ratio of complaints to total transactions remained at 0.03%

2017 2016Total Complaints 75,348 69,229Total Transactions (millions) 195.09 183.35Complaints to Transactions Ratio 0.03% 0.03%

Majority of the issues raised by customers were related to cash dispensed concerns. This led to the re-engineering of ATM-related processes resulting to significant reduction in no cash dispensed transactions, and improved availability of ATMs by end of the year.

The Service Excellence Group works with business and operational units to achieve excellent customer experience through voice of the customer program, process efficiency initiatives, performance monitoring on key customer metrics, effective organization structure and skills development.

The Bank’s Customer Protection Program follows the set standards which are reflected in its core principles – inherent into the Metrobank corporate culture, enhancing further its defined governance framework while addressing conflicts that are inimical to the interests of its customers.

Voice of the Customer Program

The Bank continuously listens to its customers to improve service delivery through the conduct of Net Promoter Score (NPS) and Customer Satisfaction (CSAT) surveys

- NPS is a globally used metric that measures the likelihood of customers to recommend the Bank to their family, friends, and colleagues, thereby gauging the customer commitment to the Bank.

- CSAT measures the satisfaction on specific touchpoints used by the customer. This enabled the Bank to immediately address the concerns raised by our customers.

The Bank also has in place the semi-annual conduct of Mystery Shopping to ensure a consistent excellent service delivery at the Branches.

In Metrobank, customer protection and over-all experience is a collective and shared responsibility of everyone, from the Bank’s Board of Directors, to Management, and to all employees. It is part of Metrobank’s culture and is being reinforced by the Customer Protection Training Program.

Key entities have been identified who will be ultimately responsible for the over-all strategy and oversight of the Bank’s desired customer experience.

Service Excellence Group

Board of Directors(BOD)

Executive Committee(ExCom)

Customer Experience Committee(CXCom)

President

The Board of Directors (BOD), through the Executive Committee (ExCom), provides the effective oversight of the Bank’s Financial Customer Protection program and implementation in accordance to BSP Circular 857.

The Senior Management, together with the Customer Experience Committee (CX Com) are responsible for the development and maintenance of the Bank’s sound Customer Protection Risk Management System which is integrated into the overall framework of its entire product and service lifecycle, which includes oversight function in the execution of CX projects.

Protection of Customer Information

The Bank has well-defined protocols, a secure database, and periodically revalidated procedures in handling the personal information of its customers.

This is an end-to-end process that covers, among others, the array of information that will be pre-identified and collected, the purpose of gathering information, how these will be sourced from the customer, the IT-security infrastructure of the Bank, and the protocols for disclosure, both within the Bank and especially to third parties, if needed.

Financial Education and Awareness

2017 saw the increase in reported e-fraud customer concerns – be it through online purchases or transactions via ATM, Online Banking and Mobile Banking. With this, the Bank implemented various financial education campaigns through different advertising channels including its social media accounts providing customers with tips on how to protect their accounts and personal information which causes these unauthorized transactions.

The Bank pushed for the replacement of its magnetic striped cards to EMV-enabled chip cards to further safeguard its customers when doing ATM and POS transactions.

Good HandsAlways in


Good governance is fundamental to our organization. It is the cornerstone in fulfilling our commitment to all our stakeholders. It is about behaving with integrity and in ways that are consistent with laws, rules and regulations while delivering our priorities and achieving our objectives. It makes a tangible and lasting contribution to our performance and our ability to deliver positive outcomes.

We seriously adhere to the highest standards of corporate governance, exercising accountability, fairness and transparency across all our operations and dealings which ensure that we have the strong foundation to pursue our goals. We implement structures and processes that would ensure that our business is being run well and responsibly, while taking care of the long-term best interests of our shareholders and all other stakeholders. We have a values-driven management and staff who behave with integrity and responsive to changing needs, and who are dedicated to the achievement of our objectives and goals. The Bank aims to maintain, and indeed enhance, this reputation through a continued adherence to the highest standards of governance. This strong commitment cascades from the top and across the Bank and the Group.

Corporate Governance Manual & Codes of Conduct

The Corporate Governance Manual introduces the Bank’s Governance Framework which encapsulates into a single resource in context, the roles and responsibilities within the Bank and the practices and procedures that we use to make sure we govern our organization to the highest standards. It also encompasses the important role of leadership in ensuring that sound governance practices are instilled throughout the organization and the wider responsibility of management and staff to apply governance practices and procedures in their day-to-day work.

It serves as a valuable reference in the implementation of the corporate governance rules and regulations. The Manual is periodically updated for new regulatory issuances and best industry practices. The Board of Directors, Management, officers and staff of the Bank commit themselves to the principles and practices contained in the Manual and acknowledge that the same will guide them in the development and achievement of the Bank’s corporate goals.

The Codes of Conduct for Directors and employees ensure that the Bank goes beyond adherence with regulatory framework requiring Metrobankers to adhere only to the highest standard of fairness, accountability and transparency. Both codes aim to instill a commitment and dedication to the virtues of honesty and integrity, together with a high sense of prudence, responsibility and efficiency in the conduct of duties.

Every Director exercises honesty, good faith and loyalty and in the best interest of the Bank, its stockholders, regardless of the amount of their stockholdings, and other stakeholders such as depositors, investors, borrowers, other clients and the general public. The Bank prohibits the direct or indirect offering or receiving by an employee of any gift, gratuity, other payment or entertainment from any person, be it a client, vendor, supplier, business partner or subordinate, when the gift might affect the employee’s judgment or actions in the performance of his/her duties.

The Codes are implemented by the Corporate Governance and Compensation Committee and the Human Resources Management Group. Breaches are subject to appropriate disciplinary actions in accordance with the principles of due process. To strengthen the implementation of good governance and development of culture within the Group, training of employees regularly include among others, topics on compliance, good governance and ethics. To enjoin bank-wide compliance, the Board-approved Corporate Governance Manual and Codes of Conduct are available in the Bank’s intranet and posted in the Bank’s website for public access.

Board of Directors

The Board oversees the Group’s overall governance framework, approves and oversees the implementation of strategies to achieve objectives, monitors managements’ performance against set targets and ensures appropriate controls and systems of checks and balances are in place and operating effectively. It leads in establishing the tone of good governance from the top and in setting corporate values, codes of conduct and other standards of appropriate behavior for itself, the senior management and other employees. It is primarily responsible for approving and overseeing the implementation of the Bank’s risk strategy, corporate governance and corporate values. The Board ensures expeditious resolution of compliance issues and consistent adoption of corporate governance policies and systems across the Group.

The members have an independent access to management and the corporate secretary as well as unrestricted access to information and records of the Bank to fulfill their responsibilities.

Board Composition

Per Metrobank’s By-Laws, Directors are elected individually by the vote of the holders of common stock of the Bank in accordance with Section 24 of the Corporation Code and other pertinent applicable regulations. Any stockholder may submit nominations for directorial positions to the Nominations Committee. The Committee screens the qualifications of the nominees, putting in place screening policies and parameters including alignment with the Bank’s strategic directions, to enable it to effectively review the qualifications of the nominees and come up with a Final List of Candidates. To help ensure the most diverse talent pools are reached, the Committee may also make use of external database, e.g. Institute of Corporate Directors or professional search. Only nominees whose names appear in the list are considered for election as director at the annual meeting of the stockholders.

In 2017, our Board is comprised of twelve directors, nine of whom are non-executive directors of which five or 42% of them are Independent Directors. The Bangko Sentral ng Pilipinas (BSP) requires at least one-third but not less than two members, who are independent directors, in the Board. Diversity in the Board is a key consideration. The members are experts in their field and bring with them diversity in age, ethnic background, skills and experience. All Directors were selected based on their qualifications such as integrity, probity, physical and mental fitness, competence, relevant education, financial literacy and training, diligence, knowledge and experience. Following the Annual Shareholders’ Meeting held in April 27, 2017, there was no change in the composition of the Board of Directors during the period.

Taking into consideration the capacity of a Director to diligently and efficiently perform his duties and responsibilities, the nature and kind of corporations he may be director of and the limitations on concurrent directorship between banks or between a bank and a quasi-bank under existing regulations, non-executive Directors of the Board could, as a rule, concurrently serve as Directors only to a maximum of five publicly listed companies, making sure however that the shareholders’ legal right to vote and be voted directors remains inviolable.

Corporate Governance

2017

Board Name

Number of Shares % Directly Held to Total Outstanding

Shares

Board Meetings

Executive Committee

Anti-Money Laundering Committee

Risk Oversight Committee

Domestic Equity

Investments Committee

Trust Committee

Audit Committee

Corporate Governance Committee

Related Party Transactions Committee

Overseas Banking

CommitteeNominations Committee

IT Steering Committee

Direct Indirect

Group Chairman

(NED)

George S.K. Ty 13,852,150 4,166,755 0.44% 12/24

Chairman (ED) Arthur Ty 10,525,485 290,982,670 0.33% 21/24 (CC) 35/52 7/7 5/5 6/6 (VC) 4/5 (4)

Vice Chairman

(NED)

Francisco C. Sebastian 900,000 0.03% 23/24 (VC) 28/52 (1) 5/5 (CC) 6/6

President/Director (ED)

Fabian S. Dee 650 0.00% 24/24 50/52 6/8 (6) 6/6 3/5

Director (NED) Alfred V. Ty 10,525,750 33,558,522 0.33% 18/24 4/5 4/6

Director (NED)

Edmund A. Go 5,281 0.00% 21/24 (CC) 7/7 (CC) 12/12 11/11 5/5

Director (ED) Vicente R. Cuna, Jr 115 0.00% 23/24 20/52 (1) (CC) 5/5 (4)

Independent Jesli A. Lapus 150 0.00% 22/24 (VC) 11/12 (CC) 9/11 5/6 (CC) 14/14 (4)

Independent Rex C. Drilon II 1,430 0.00% 22/24 6/7 (VC) 11/11 (CC) 6/6 (CC) 11/11 (4)

Independent Robin A. King 187 0.00% 19/24 3/3 (5) 7/8 (6) (CC) 15/15 (VC) 11/11 14/14

IndependentFrancisco F. Del Rosario,

Jr.130 0.00% 23/24 (CC) 5/5 15/15 5/6 6/6

Independent Edgar O. Chua (2) 100 0.00% 21/21 4/4 9/11 7/8 8/8

Independent Renato C. Valencia (3) 871 0.00% 3/3 4/4 4/4 3/3 5/5

(NED) Non-Executive Director • (ED) Executive Director (1) Previously Alternate Member • (2) Elected director on April 26, 2017 • (3) Director until April 26, 2017; shares as of March 31, 2017 (4) Appointed on April 26, 2017 • (5) Member until April 26, 2017 • (6) Member starting April 26, 2017 • (CC) Committee Chairman • (VC) Committee Vice-Chairman


On the other hand, the Independent Directors are independent of management and major shareholders. They have not engaged and do not engage in any transaction with the Bank or with any of its related companies or with any of its substantial shareholders, whether by themselves or with other persons or through a firm of which they are partners or a company of which they are directors or substantial shareholders, other than transactions which are conducted at arm’s-length and could not materially interfere with or influence the exercise of their judgment. As a rule, the Independent Directors may serve for a maximum cumulative term of nine years. After which, the Independent Director shall be perpetually barred from re-election as such, but may continue to qualify for nomination and election as a regular Director.

The roles of the Chairman of the Board and the President are separate and held by two different people to foster an appropriate balance of power, increased accountability and better capacity for independent decision-making by the Board. Each has clearly defined responsibilities. The respective powers and duties of the Chairman and the President are delineated in the Bank’s By-Laws.

The Chairman of the Board provides leadership in the Board. He ensures effective functioning of the Board, including maintaining a relationship of trust with Board members. In addition, the Chairman ensures a sound decision making process and encourages and promotes critical discussions and ensure that dissenting views can be expressed and discussed within the decision-making process. On the other hand, the President exercises direct and active management of the business and operations of the Bank, conducting the same according to the orders, resolutions and instructions of the Board and according to his own discretion wherever the same is not expressly limited by such orders, resolutions and instructions. He communicates and implements the vision, mission, values and overall strategy of the Bank and promotes any organization change in relation to the same. He exercises general superintendence and direction over the other officers and the employees of the Bank and to see to it that their respective duties are properly performed.

The names of the directors serving as of 31 December 2017 and their biographical details are set out in the Board of Directors Photo page. All these Directors served throughout the year under review.

Orientation and Continuing Education

All first-time Directors must have attended a special seminar on corporate governance for board of directors. Orientation for first-time Directors will begin immediately after they are selected and before their first Board meeting. They are furnished with a copy of the general responsibility and specific duties and responsibilities of the Board and of a Director. Directors are required to certify under oath that they have received copies and fully understand and accept the general responsibility and specific duties. The certification is also submitted to BSP together with a certification that he or she has all the prescribed qualifications and none of the disqualifications after their election.

The Bank also has a policy on continuing education for Directors. In maintaining their professional proficiency, the Directors are encouraged to continuously enhance their skills, knowledge and understanding of the activities that the Bank is engaged in or intends to pursue as well as the developments in the banking industry including regulatory changes through continuing education or training.

In 2017, a special seminar conducted by Institute of Corporate Directors has been provided to all Directors and senior management of the Bank to apprise them on the significant developments in corporate governance.

Retirement and Succession

As a general rule, no Director may stand for re-election following the calendar year in which that Director turns 75 years of age. However, on the recommendation of the Nominations Committee, the Board may waive this requirement as to any Director if it deems a waiver to the best interest of the Company.

Succession or filling up vacancies in the Board is addressed in the Bank’s By-Laws. Any vacancies occurring in the Board may be filled by the vote of at least a majority of the remaining directors, if still constituting a quorum. Any vacancy that occurs by reason of removal by stockholders, expiration of term or increase in the number of directors shall be filled by the stockholders in a regular or special meeting called for the purpose.

Board Meetings

The organizational meeting of the Board is held immediately after the Annual Stockholder’s Meeting. Board-level committees are reconstituted during the organizational meeting. Regular Board meetings are held every second Wednesday of each month. Special meetings may be called at any time by the Chairman, or, in his absence, by the Vice Chairman, or pursuant to the written request of any four directors.

In 2017, the Board had 24 meetings with the incumbent directors attending more than 88% of all meetings. As endorsed by the Corporate Governance and Compensation Committee and approved by the Board of Directors, non-executive directors shall meet at least once a year without any executives present. In 2017, such meeting was held on 20 February 2017.

The Office of the Corporate Secretary which plays a significant role in supporting the Board in discharging its responsibilities prepares the agenda and sends out notices and materials at least five business days before the meeting dates. It also prepares and distributes the minutes of the previous meeting and keeps full minutes of all Board and stockholder meetings.

Board-level Committees

Our governance structure is designed to enable the Board to discharge its responsibilities. To aid the Board in the optimal performance of its roles and responsibilities, the following committees, among others, have been created, with their own respective charters which set out their mandate, scope and working procedures:

Anti-Money Laundering Committee

A Board level Committee tasked to assist the Board in fulfilling its oversight responsibility over the Bank’s AML Compliance Management to make sure that the Bank complies with the provisions of the AMLA, as amended, its Revised Implementing Rules and Regulations (RIRR), and BSP regulations.

Edmund A. Go, Director Chairman

Arthur Ty, Chairman Member

Rex C. Drilon II, Independent Director Member

Edgar O. Chua, Independent Director Member

Audit Committee

As an extension of the Board, the Audit Committee assists the Board in fulfilling its statutory and fiduciary responsibilities, enhancing shareholder value, and protecting shareholders’ interest through effective oversight of internal and external audit functions, transparency and proper reporting, compliance with laws, rules and regulations and code of conduct, and adequate and effective internal controls.

Cornelio C. Gison, Adviser Adviser

Robin A. King, Independent Director Chairman

Francisco F. Del Rosario, Jr. Independent Director Member


Leo R. Fragante, Head, Internal Audit GroupChief Audit Executive

Corporate Governance and Compensation Committee (CGCC)

The CGCC assists the Board of Directors in fulfilling its corporate governance responsibilities and in providing oversight on the implementation of the Bank’s Compliance System. The committee is tasked with establishing a formal and transparent procedure in determining the remuneration of directors and officers that is consistent with the Bank’s culture, strategy, business environment and industry practice.

Placido L. Mapa, Jr., Senior Adviser Adviser

Rex C. Drilon II, Independent Director Chairman

Arthur Ty, Chairman Member

Francisco F. Del Rosario, Independent Director Member

Jesli A. Lapus, Independent Director Member

Atty. Donato V. Espino, Head, Compliance DivisionCorporate GovernanceOfficer

Antonio V. VirayCorporate Secretary


Domestic Equity Investments Committee

The Domestic Equity Investments Committee has been established to assist the Board in overseeing the development and maintenance of the Bank’s domestic equity investments policy and in monitoring its implementation by Management.

Francisco F. Del Rosario, Jr., Independent Director ChairmanArthur Ty, Chairman MemberFrancisco C. Sebastian, Vice Chairman MemberAlfred Ty, Director Member

Executive Committee (EXCOM)

The EXCOM shall primarily review and approve credit proposals and credit policies within its authority and limits as well as provide recommendations or conditions to lending. The EXCOM may also act on other matters as delegated by the stockholders, and the Board of Directors within its competence and in accordance with the By-Laws of the Bank.

George S.K. Ty, Group Chairman Adviser

James Go, Senior Adviser Adviser

Mary V. Ty, Assistant to the Group Chairman Adviser

Arthur Ty, Chairman Chairman

Francisco C. Sebastian, Vice Chairman Vice Chairman

Fabian S. Dee, President Member

Vicente R. Cuna, Jr., Director Member

Mary Mylene A. Caparas, Head, Institutional Banking Sector

Member

Corazon B. Nepomuceno, Chief Credit Officer, Head, Credit Group

Member

Noel Peter Z. Yuseco, Deputy Head, Credit Group

Alternate member in the absence of Credit Group Head

Information Technology Steering Committee (ITSC)

The ITSC provides governance and oversight in the management of the Bank’s IT resources. Its principal function is to ensure that IT strategies are consistent with the overall business objectives. As an extension of the Board, it shall supervise the IT Risk Management Program of the Bank and the development of policies, controls and specific accountabilities consistent with the Bank’s IT Risk Management Framework. It should regularly provide adequate information to the Board regarding overall IT performance, status of major projects and other significant issues related to IT risks.

Vicente R. Cuna, Jr., Director Chairman

Arthur Ty, ChairmanVice Chairman


Edmund A. Go, Director Member

Bernardino V. Ramos, Head, InformationTechnology Group

Member

Nominations Committee

The Committee shall review and evaluate the qualifications of all persons nominated to the Board as well as those nominated to other positions requiring appointment by the Board.

Jesli A. Lapus, Independent Director Chairman

Robin A. King, Independent Director Member


Overseas Banking Committee

The Overseas Banking Committee shall assist the Board in its oversight functions over the operations and financial performance of the overseas branches and subsidiaries, their compliance with the rules and regulations of their respective host countries and their adherence to the parent Bank’s business and corporate governance policies as prescribed by the BSP and SEC.

Francisco C. Sebastian, Vice Chairman Chairman


Francisco F. Del Rosario, Jr., Independent Director Member

Alfred Ty, Director Member

Related Party Transactions Committee

A Board level Committee tasked to ensure that Bank’s transactions with related parties are reviewed to assess risks and subjected to appropriate restrictions to ensure that such are conducted at arm’s length terms and that corporate and business resources of the Bank are not misappropriated or misapplied.

Rex C. Drilon II, Independent Director Chairman

Robin A. King, Independent Director Vice Chairman


Risk Oversight Committee

The Risk Oversight Committee, as the extension of the Board, is responsible for the development and oversight of the risk management program for the Bank and its Trust Banking Group.

Edmund A. Go, Director Chairman

Jesli A. Lapus, Independent DirectorVice Chairman

Robin A. King, Independent Director Member

Joshua E. Naing, Head, Financial and Control Sector Member

Maritess B. Antonio, Head, Risk Management Group

Chief Risk Officer

Trust Committee

The Trust Committee shall act within the sphere of its authority, including but not limited to, the confirmation of acceptance and closing of trust and fiduciary accounts, the review of assets placed under the Bank’s custody, the investment, and reinvestment and disposition of trust funds and the review and approval of transactions between trust and/or fiduciary accounts.

Placido L. Mapa, Jr., Senior Adviser Adviser

Jesli A. Lapus, Independent Director Chairman

Rex C. Drilon II, Independent DirectorVice Chairman


Edmund A. Go, Director Member

Josefina T. Tuplano, Trust Officer and Head, Trust Banking Group

Member

Evaluation System

The Board has created an internal self-rating system and procedures to determine and measure compliance vis-à-vis good corporate governance principles and practices as prescribed in the Code of Corporate Governance: (i) each Director self-rates and collectively rates the Board, the Chairman of the Board and the President; (ii) the Corporate Governance and Compensation Committee (CGCC), Audit, Risk Management and other Board committees conduct self-rating.

When a director or officer has multiple positions in the Group, CGCC determines whether or not said director or officer is able to and has been adequately carrying out his/her duties. The results of the annual self-assessment are validated and summarized, discussed by the CGCC and reported to the Board.

Based on the results of the annual evaluation, for the year 2017, the Bank has fully complied with the material requirements of the Code of Corporate Governance.

Compliance System

The compliance function is an integral component of the Bank’s internal controls that provides reasonable assurance that the Bank and its directors, officers and employees comply with all banking and corporate laws, regulations, rules and standard.

The Compliance Division is tasked to promote effective implementation of the compliance system and address breaches that may arise. It ensures that emerging compliance issues and key compliance risks are proactively identified, measured, and assessed and that advice and support to Management in managing regulatory and compliance risk are provided. In addition, it also ensures that compliance and awareness trainings for all employees are conducted on a regular basis; there is an effective upstream and downstream communication within the Bank to address compliance matters; and that compliance matters are reported to appropriate levels of management and to the Board of Directors through the Corporate Governance and Compensation Committee.

Compliance Division will continue to actively seek ways to boost compliance and adapt best practices in corporate governance. It shall also maintain a dynamic interaction with regulators to ensure a balance between having the right compliance culture and a risk-averse environment that will support business growth.

Fair Business Transactions & Managing Conflicts of Interest

The members of the Board conduct fair business transactions with the Bank and ensure that personal interest does not bias Board decisions. Directors avoid situations that would give rise to a conflict of interest. If transactions with the Bank cannot be avoided, it is done in the regular course of business and upon terms not less favorable to the Bank than those offered to others. Likewise, employees are prohibited from directly or indirectly engaging in any conduct or activity that may directly or indirectly be construed as inconsistent or incompatible with Metrobank’s business interests.

The Bank has a policy on related party transactions. Transactions with related parties are reviewed by either the Related Party Transactions Management Committee, a management-level committee composed of senior officers or the Related Party Transactions Committee, a Board-level committee composed of independent directors, depending on the materiality threshold set by the Bank. Material related party transactions require prior written approval of the members of the Board, with the exclusion of the director concerned in case the transaction involves


him or his related interests. Related party transactions are discussed in the Audited Financial Statements, particularly under Notes to the Financial Statements No. 31 on Related Party Transactions. All acts of the Board, including material related party transactions, are confirmed by the majority vote of the Bank’s stockholders during the Annual Stockholders’ Meeting.

Policy on Insider Trading

Metrobank has instituted its own Insider Trading Policy to ensure that shareholders are afforded protection and that individuals do not benefit from knowledge which is not generally available to the market. The policy requires that the disclosure of material non-public information about any of the companies within the Metrobank Group or any partner shall be made on a reasonable need-to-know basis and in furtherance of a legitimate business purpose.

The policy covers the standard of conduct applicable to all directors and employees within the Metrobank Group including their immediate family members residing with them in the same household and corporations, other entities and funds subject to their influence or control. It requires the reporting insiders to confirm their respective beneficial ownership of listed shares of stock in their respective companies, if any, and report any changes thereto on the next trading day from the date of the change pursuant to the requirements of the SEC and the PSE.

Whistle Blowing Policy

Metrobank is committed to maintaining the highest possible standards of ethics, honesty, accountability and adhering to the principles of good governance. All employees are encouraged to play their part in improving the overall effectiveness and success of the Bank and in strengthening the Bank’s system of integrity by creating an atmosphere of openness and trust and by providing an avenue for employees to raise concerns and receive feedback on any action taken.

The Bank has a Whistle Blowing Policy which aims to guide officers and staff on reporting complaints related to fraud, malpractice, conflict of interest or violation of internal/regulatory policies, procedures and controls. The policy also provides for the protection of the reporting employee. Under the policy, the Bank shall maintain the identity of the reporting employee as confidential and retaliation against any reporting employee shall not be allowed.

Dividend Policy

The Bank’s Dividend Policy is an integral component of its capital management policy rather than a stand-alone process. Its fundamental and overriding policy is sustainability.

Dividends are declared and paid out of unrestricted retained earnings of the Bank at such intervals as the Board of Directors may determine and in accordance with the provisions of law and the regulations of the BSP and the SEC. Historically, the Bank has declared annual cash dividends equal to P1.00 per common share, equivalent to 5% of par value. The payment of dividends in the future will depend on the Bank’s earnings, cash flow, financial condition, regulatory requirements for capital and other factors. The Board of Directors may, at any time, modify the Bank’s dividend payout ratio depending on the results of operations and future projects and plans of the Bank.

Cash dividends are subject to approval by at least a majority of the Board of Directors. On the other hand, stock dividend requires prior clearance from the BSP, the SEC and the PSE. Compensation Policy

The Bank adopts a compensation policy that is aligned with the Bank’s operating and risk culture, long-term strategic and financial interest and labor laws and regulations, promotes good performance and competitive with industry standards, with a goal to attract, motivate and retain the best people.

Directors’ Compensation Package

The members of the Board of Directors receive a fixed remuneration package based on experience, professional background, level of responsibilities and attendance in Board and committee meetings.

Executive and Employee Compensation

The Bank pays salaries commensurate to the individual’s qualifications and experience, nature of the job, position, and level of responsibility with reference to an approved salary scale.

The Bank’s compensation package is reviewed regularly and benchmarked against competition through participation in annual compensation and benefit surveys to ensure its competitiveness vis-à-vis industry and other market considerations.

Pay for Performance. The Bank aims to achieve a performance-driven work culture by providing meaningful rewards for performance. Annual performance scorecards are structured to support business strategies and provide competitive rewards. Thus, the Bank grants annual merit increase and performance bonus (non-guaranteed) based on the Bank’s overall performance, Group and individual performance, and market conditions.

Fair Compensation. The Bank ensures that its compensation package for non-officers or rank and file employees is in accordance with the labor law requirements. They receive salaries linked to both performance and the Bank’s contractual obligation under a collective bargaining agreement which include loyalty bonuses for long-term employees.

Interest of Stakeholders

Metrobank has a responsibility to all its stakeholders and addresses their needs. The Bank has policies that safeguard the interests of customers and creditors, suppliers, employees, shareholders and the environment.

Customers and Creditors

The Bank remains anchored on its very purpose of ensuring customer success, by safeguarding its customers’ and creditors’ welfare, fulfilling their needs and by helping them achieve their goals. As contained in the Bank’s Code of Conduct for Employees, failure to attend promptly to client requests is an example of non-acceptable behavior under the standard of conduct.

The Bank has also developed its Customer Protection Policy Manual that enumerates the basic principles and ethical business practices that govern the conduct of the Bank in dealing with its customers, setting out the standards of consumer protection in the areas of disclosure and transparency, protection of client information, fair treatment, effective recourse and financial education. It provides assurance that consumer protection practices are embedded in the Bank’s business operations which address and prevent identified risks to the Bank and associated risk of financial harm or loss to its customers.

Stockholders’ Rights and Protection of Minority Stockholders’ Interests

The Board respects the rights of the stockholders as provided for in the Corporation Code. It promotes the rights of the stockholders, removes impediments to the exercise of those rights and provides an adequate avenue for them to seek timely redress for breach of their rights.

The Board makes available to the stockholders accurate and timely information to enable the latter make a sound judgment on all matters brought to their attention for consideration or approval. All material information about the Bank is disclosed in a timely manner to the SEC and PSE.

The Board is transparent and fair in the conduct of the Annual Stockholders’ Meetings of the Bank. The Bank encourages the stockholders to personally attend such meetings. If they cannot attend, they are apprised ahead of time of their right to appoint a proxy. Subject to the requirements of the By-Laws, the exercise of the right shall not be unduly restricted and any doubt about the validity of a proxy should be resolved in the stockholder’s favor.

Every stockholder entitled to vote on a particular question or matter involved shall be entitled to one (1) vote for each share of stock in his name. Cumulative voting is allowed provided that the total votes cast by a stockholder shall not exceed the number of shares registered in his name as of the record date multiplied by the number of directors to be elected. Matters submitted to stockholders for the ratification shall be decided by the required vote of stockholders present in person or by proxy. All shareholders shall have the opportunity to obtain effective redress for violation of their rights.

Supplier and Contract Selection

The Bank also ensures that it maintains policies for supplier and contract selection. The policy on vendor management and outsourcing of banking support and marketing activities provides guidelines on accreditation of service providers as well as monitoring and reviewing their performance. The Bank’s Vendor Management Policy provides guidelines in the purchase or acquisition of products or services from vendors and mitigates risks of dealing with unqualified vendors. It shall also ensure that the Bank’s vendor management guidelines are compliant with BSP regulations. The Bank also practices the policy of canvassing and bidding services as a basis for the evaluation and approval of the bid process.

Health, Safety and Welfare of Employees

The Bank acknowledges that it has a responsibility to ensure the safety and security of its employees and clients. The Bank actively promotes a safe and healthy work environment that is conducive to the well-being and professional development of its employees. The Bank also believes that providing them with a secure and safe work environment greatly enhances business and work productivity. In particular, the Bank ensures a drug-and alcohol-free work environment at all times.


Risk Management Principles

Ultimately this philosophy of balancing risk and reward translates to the following risk management principles:

1. Because risk is native to the banking business, the Bank manages risks that correspond to its goals and objectives as an ongoing business;

2. As the business landscape evolves, the Bank’s risk management practices must likewise remain appropriate and practicable, but always in consonance with standards set by its regulators;

3. The Bank must ensure that it has the right risk governance structure in order to minimize the chances of risks becoming real losses while exploiting the gains that may accrue from business opportunities; and

4. Risk management is everyone’s concern – from the Board who sets the overall tone, to the officers and staff who execute the Bank’s risk management strategy.

The Risk Management Process

Consistent with the foregoing, the Bank’s risk management process focuses on the interplay among business, concomitant risks, and required capital with the goal of sustaining the franchise through the rise and ebb of the business cycle. It provides the engine for the determination of the Bank’s strategic goals, its material risks, and its appetite for said risks. Risk exposure identification, measurement, management, and monitoring provide the

Among the programs instituted was the wellness check of employees, results of which were the basis of choosing relevant health interventions for the workforce. Lectures on bank security are likewise conducted to equip personnel in handling situations that may compromise the security of persons, property and information. The Bank also ensures a drug-and alcohol-free work environment at all times.

The Bank also ensures that all employees perform their work consistently to high standards and achieve their full potential. It recognizes that training and development is fundamental to the improvement of the Bank’s operational performance and the achievement of the Bank’s strategy and goals. The Metrobank Academy provides all employees with a wide range of suitable programs to assist in their continuing professional development, so that the organization will have the right quality of people for the business to grow and achieve its goals. The Bank strives to empower Metrobankers with the right skills, knowledge, work ethics and expertise that are relevant to the stakeholders.

Economic and Social Development

The Bank believes that it is responsible also for the state and welfare of the larger society to which it belongs. As an institution with a heart, the Bank gives back to the communities we serve, committed to making meaningful contributions to the economic and social development of our nation. It measures its performance not only with financial returns but also with its social objectives.

Metrobank has comprehensive community and social responsibility programs conducted by the Metrobank Foundation, its corporate social responsibility arm and the employees through the Purple Hearts Club.

The success of PHC in 2017 was rooted in the heart for service shown by the Bank’s employee-volunteers. Employees participated in an array of CSR programs that focused on education, environmental stewardship, and health. PHC also collaborated with partners across several industries to introduce employees to new opportunities for volunteerism that benefit and support other marginalized sectors of society.

Details of the various programs and activities of Metrobank Foundation and PHC may be read in the CSR Section.

Environment Protection

As part of Metrobank’s core value of being a responsible corporate citizen, it believes that sustainable development is a fundamental aspect of sound business management and recognizes that this must rank among the top priorities of its lending portfolio.

Metrobank is focused on developing a loan portfolio that directly protects and promotes environmental and social care, and likewise instilling in the borrowers, the awareness that social and environmental care are inextricable to economic growth in order to achieve sustainable development.

Metrobank is committed to sound environmental stewardship. It consistently strives to look for areas to improve its operations towards the conservation of energy, water and resources. Various policies on optimizing the use of paper, power shutdown of office equipment to minimize resource usage and to save on electricity costs, use of vehicles for carpool and regular maintenance and servicing of vehicles to reduce transportation cost and carbon emissions are in place.

The Metrobank Purple Hearts Club (PHC) has “You’re In Green Hands” (YIGH), an environmental stewardship program which centers on combating various environmental issues faced by the country through restoration activities such as tree planting, mangrove planting, seashore, and coastal clean-up drives.

In 2016, 650 Metrobankers implemented YIGH in 6 key areas across the country, including Arroceros Forest Park in Manila. In 2017 PHC concluded YIGH with an improved participation rate of over 100% (131.40%), or, 703 of the targeted 535 volunteers. They planted seedlings and cleaned coastal areas across the country. RISK MANAGEMENT

The Risk Management Group (RSK) is an independent unit of the Bank that identifies, analyzes, measures, and monitors identified material risks in close coordination with other business units. It exercises oversight on the risk management units of various subsidiaries and affiliates with the goal of ensuring compliance with relevant regulations, and the implementation of a consistent Risk Management Framework across the Metrobank Group.

RSK reports directly to the Board of Directors through the Risk Oversight Committee, which is composed primarily of independent members of the Board. The Committee’s active role in overseeing the Bank’s infrastructure, operating policies, and exposures ensures a good balance between risk appetite and prudence.

support on which business budgets are afforded the chance of being achieved and for which capital adequacy to support the effort is continuously assured.

Metrics and risk assessment tools, both adopted from regulation and best practice and internal to the Bank are then used to measure identified risks. The use of these tools complements the conduct of business as they help prevent risks from being realized into serious issues, as well as cue the possibility of any instance that capital may be called to absorb losses.

Notwithstanding a defined risk management function, the Bank recognizes that the core banking activity of managing risks is not the sole responsibility of RSK. It is rather a function that cuts across the entire organization as manifested in the Bank’s three (3) lines of defense. Such set-up is central to risk management, as it expresses everyone’s role in ensuring that risk exposures are managed and within the Bank’s risk appetite. The first line of defense consists of the risk taking and risk owning units since they are in the position to immediately identify, respond, manage, and monitor risks. Second would be independent units, like RSK, that provide oversight and the tools, systems and advice necessary to support the first line in identifying, managing and monitoring risks. The third line of defense is provided by the internal audit function. This function provides a level of independent assurance that the risk management and internal control framework is working as designed.

Risk Management in 2017

As business opportunities continued to expand in 2017, so did the demands for risk management to keep up and to ensure that such growth is sustainable. The past year thus saw the further embedding of risk management initiatives, a re-thinking of existing frameworks and processes, and crafting roadmaps towards fulfilling the requirements of new regulations and pursuing best practice.

Board of Directors(BOD)

Risk OversightCommittee (ROC)

Risk Management Coordinating Council

(RMCC)

Risk Management Group (RSK)

Subsidiary Risk Committee

StrategicDirection

Risk AppetiteDefinition

Risk &OpportunitiesIdentification

Risk Monitoring

Risk Review

Risk Assesment

& Evaluation

Risk Control& Mitigation

Strategic Level

Viable

Portfolio & Transaction Level

No Yes


Group Oversight

Governance and oversight was a recurring theme in 2017, hence a more dynamic collaboration with other risk management units of the Metrobank Group’s subsidiaries was implemented through an enhanced charter of the Risk Management Coordinating Council (RMCC), with the parent bank’s Chief Risk Officer as chair person. Regular meetings and reports were established and conducted with the subsidiaries as a venue to sound concerns and share best risk practices within the Group. Standardization and alignment of business practices, risk policies and procedures across the various risk management units is an endeavor that is projected to continue.

Credit Risk

The primary task of managing credit risk is to ensure that the credit risk exposures are consistently managed based on the Bank’s risk appetite to support the balance sheet’s sustainability.

In 2017, much of Credit Risk Management work was devoted to developing expected credit loss models that would facilitate transition to the new accounting standards taking effect in January 2018. Initiatives, particular to risk data collection and consolidation of credit information, continued to progress aimed at allowing model improvement and more efficient and accurate credit portfolio analytics. Leveraging on the developed models for expected credit loss, the Bank likewise began testing its capacity to consistently attribute economic capital to its credit risk exposures with a view towards migrating to more advanced risk capital and performance measures.

Credit Concentration Risk

Credit concentration risk is the current and prospective negative impact to earnings and capital arising from over-exposure to specific industries or borrowers and counterparties. The Bank managed, and continues to manage this risk via adherence to processes relating to industry and counterparty assessments, observance of regulatory ceilings, and setting of internal limits. Credit risk profiles of the various portfolios were monitored and analyzed during the year to address any concentration issues.

Market Risk and Interest Rate Risk in the Banking Book (IRRBB)

Market risk and IRRBB are risks resulting from adverse movements in the general level or volatility of market rates and/or prices possibly affecting the Bank’s financial condition. The Bank manages these risks via a process of identifying, analyzing, measuring and controlling relevant market risk factors, and establishing appropriate limits for the various exposures. In 2017, risks exposures were kept within regulatory standards and defined thresholds of the Bank. Moreover, the Bank undertook the enhancement of its model risk management framework, while performing validation of its various risk assessment tools. Its off-market monitoring and reporting framework was likewise revamped, thus establishing 2nd level checks on top of customary benchmarks.

Liquidity Risk

The Bank’s liquidity policy has always been to manage its operations to ensure that funds available are more than adequate to meet the demands of its customers and to enable deposits to be repaid on demand or upon maturity. The Bank’s strategy for managing this risk is generally via limiting the maturity mismatch between assets and liabilities, and by holding sufficient liquid assets of appropriate quality and marketability. In 2017, liquidity gaps were kept within defined thresholds. In keeping with the recognition that liquidity risk outranks all others, the Bank likewise enhanced its contingency funding plan and bolstered further its liquidity stress testing framework.

Operational Risk

2017 saw the further embedding of operational risk management (ORM) initiatives, taking guidance from the principles under BSP Circular 900. The Business Risk Manager (BRM) function was rolled out, thus creating a certified risk officer embedded in each of the Bank’s businesses. The responsibilities currently ascribed to BRMs are expected to expand as the function matures. ORM tools were likewise enhanced along with the revision of the Bank’s ORM framework. The most notable of such enhancements were: a) the alignment of the Risk Control Self-Assessment (RCSA) with the Bank’s Audit Rating System (ARS), thus facilitating a consistent view of Risk across the organization, and b) the completion and monitoring of institutional and business-level Key Risk Indicators (KRIs).

Business Continuity Risk

Enhancement of the Bank’s ability to continue with its operations despite any disruption was also a highlight of 2017, proceeding from the guidelines set out in BSP Circular 951. To this end, the annual run of the Disaster Risk Assessment (DRA) and Business Impact Analysis (BIA) were completed, culminating in a successful staging of an enterprise-wide Business Continuity Plan testing exercise. Disaster preparedness initiatives likewise continued to be rolled out, highlighted by the provision of “grab bags” for all Metrobank personnel.

Reputation Risk

The Bank holds that reputation risk is a consequence of other risks. Its management therefore is tied closely to the manner by which it manages its other risks. By ensuring effective identification, assessment, control, monitoring, and reporting of the other material risks, reputation risk is likewise effectively managed.

Compliance and Regulatory Risk

Compliance and Regulatory Risk as the current and potential negative impact to operations arising from failure to comply with all applicable laws, regulations, codes of conduct, standards of good governance and practice. The Bank’s Compliance Program, the implementation of which is overseen and coordinated by the Compliance Officer, is the primary control process for regulatory risk issues. The Compliance Officer is responsible for communicating and disseminating new rules and regulations to all units, analyzing and addressing compliance issues, performing periodic compliance testing on branches and Head Office units, and reporting compliance findings to the appropriate Board committee. Specific to money laundering, AML risk is managed separately by the Bank’s Anti-Money Laundering Division (AMLD) reporting directly to the Board’s AML Committee. ANTI-MONEY LAUNDERING

The Bank’s AML compliance program, which is designed to identify and mitigate business and regulatory risks, is being implemented through sound risk management practices and adherence to applicable rules and regulations on the prevention of money laundering and terrorist financing.

The sound risk management practices of the Bank are well established to ensure adequate and active board and senior management oversight, acceptable policies and procedures embodied in a money laundering and terrorist financing prevention compliance program, appropriate monitoring and management information system and comprehensive internal controls and audit. These practices, together with effective communication and training and risk-based compliance testing, promote a robust, dynamically-responsive, and appropriate compliance system and culture of compliance towards a sound and stable financial franchise. With the Bank’s robust and sound risk management practices and strong commitment to good corporate governance practices and principles of safe and sound banking practices, regulatory and money laundering and terrorist financing risks are effectively managed.

INTERNAL AUDIT

Internal Audit Group is established by the Board of Directors, and its responsibilities are defined by the Audit Committee as part of its oversight function. The Audit Committee and Management take all the necessary measures to provide the appropriate resources and staffing that would enable Internal Audit Group to achieve its objectives.

The mission of the Internal Audit Group is to provide independent, objective assurance and consulting services designed to add value and improve the Bank’s operations. It helps the organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes.

The scope of work of the Internal Audit Group includes all processes, systems, units and activities of the Bank, covering, among others: evaluation of the adequacy, efficiency and effectiveness of internal control, risk management and governance systems in the context of current and potential future risks; review of the reliability, effectiveness and integrity of management and financial information systems, including the electronic information system and electronic banking services; review of the systems and procedures of safeguarding the Bank’s physical and information assets; review of the compliance of trading activities with relevant laws, rules and regulations; review of the compliance system and implementation of established policies and procedures; and, review of areas of interest to regulators such as, among others, monitoring of compliance with relevant laws, rules and regulations, including but not


The Audit Committee (Committee) has discharged its responsibilities and affairs independently in compliance with its Board-approved Charter, and has represented and assisted the Board of Directors (BOD) in fulfilling its statutory and fiduciary responsibilities to enhance stakeholders’ value and protect their interest by: providing effective oversight on the Bank’s financial reporting framework, internal and external audit functions; monitoring and evaluating the adequacy and effectiveness of internal control system, and implementation of corrective actions; and investigating issues/ concerns raised.

The Committee, composed of three (3) members, who are all independent directors, held twelve (12) regular meetings and three (3) special meetings with external auditor and internal auditor over financial reporting and internal operational matters. The Committee periodically reported to the Board results of its reviews and activities, and also met with the Board without the presence of the Chief Executive Officer, Executive Directors or other management team. Moreover, Committee members hold concurrent roles in other Board-level Committees, through which, they are apprised of significant developments and are able to provide advice on risk taking and management activities. In 2017, the Committee comprehensively deliberated the following matters:

Financial ReportingReviewed interim and annual financial reports and disclosures, valuation techniques (i.e., financial instruments), estimates and assumptions used (i.e., allowance and liability provisioning), and impact of significant plans, new accounting standards and regulations, particularly on the adoption of Philippine Financial Reporting Standards (PFRS) 9 business models and techniques.

Internal Control and Fraud PreventionEvaluated and monitored management’s plans and actions taken to improve internal controls on lending and deposit accounts handling processes; conducted extensive discussions with the internal and external auditors and external quality assessor on governance, internal controls and fraud prevention resulting in enhanced internal control, improved audit programs and processes, including augmented use of data analytics to identify, evaluate and report possible anomalies, patterns and trends that may indicate control weaknesses or fraud; reviewed results of fraud risk assessment, and its impact on internal audit process; and, assessed Bank’s programs to: unceasingly convey a culture of honesty and integrity; ensure effectiveness of the whistleblowing program; and encourage employees to proactively report improprieties.

Regulatory RequirementsEvaluated the results of IAG’s review on the adequacy and effectiveness of the Bank’s AML framework, information technology and information security risk assessment, new requirements and changes on electronic banking and check clearing process, and, handling of related party transactions.

Information System Controls & Cyber SecurityReviewed the results of vulnerability assessment and penetration testing on the Bank’s publicly accessible networks, systems, servers and devices; and monitored rectification of IT-related weaknesses to prevent exposing the Bank’s systems and data to unauthorized access and manipulation, and improve operational efficiency.

Oversee the external and internal auditorEnsured the external and internal auditor’s objectivity, independence and qualifications; evaluated scope, plan and performance; regularly received reports, discussed significant matters, including status of resolving control issues, and implementation of recommendations to improve internal controls; reviewed and approved the non-audit services (i.e., PFRS 9 financial instrument conversion project; validation of votes cast at the annual stockholders’ meeting, and issuance of comfort letter relative to the establishment of the Bank’s medium-term note program) of the external auditor ; approved the engagement and scope of the external quality assessor for the conduct of an external quality assessment review on the IA activity, and thoroughly discussed results thereof, including adoption of successful practices to enhance the effectiveness of the Audit Committee’s governance function.

Based on the Committee’s accomplishments, representation letter from the Bank Management, an unqualified opinion from the external auditor on the financial statements, and Chief Audit Executive’s positive overall assessment on the adequacy and effectiveness of the Bank’s internal control, risk management, and governance processes, we conclude that business risks are managed in accordance with the BOD-set policies and in compliance with relevant regulatory requirements.

Robin A. KingChairman

Francisco F. del Rosario, Jr.Member

Edgar O. ChuaMember

Atty. Cornelio C. Gison Adviser

Audit Committee Report to the Board of Directors

limited to the assessment of the adequacy of capital and provisions; liquidity level; regulatory and internal reporting.

The Internal Audit Group personnel report to the Internal Audit Group Head who, in turn, reports functionally to the Board of Directors through the Audit Committee, and administratively to the Office of the President.

The Internal Audit Group Head or Chief Audit Executive, officers and staff of the Internal Audit Group are authorized to:

a. Have unrestricted access to all functions, records/a. Have unrestricted access to all functions, records/documents, property, and personnel.

b. Have full and free access to the Audit Committee.c. Allocate resources, set frequencies, select subjects,

determine scopes of work, and apply the procedures and techniques required to accomplish audit objectives.

d. Obtain necessary assistance of personnel in other units of the Bank where they perform audits, as well as other specialized services from within or outside the Bank.

Through the years, the Internal Audit Group ensures that its methodologies and approaches are in conformance with the International Standards for the Professional Practice of Internal Auditing (The Standards) and regulations, including advancements with the changing business environment. In 2017, an independent audit firm conducted the Internal Audit Group’s 4th External Quality Assessment Review and assessed its continuing General Conformance with The Standards and the Code of Ethics.

As a recognized advocate for good governance, the Internal Audit Group supports the Bank’s programs aimed to strengthen a corporate culture of integrity, which is a critical component of corporate risk management. This is through active involvement in courses and programs on internal controls, administration of the whistleblowing program, evaluation of root causes of critical control breakdowns, including proactive and continuous communication of recommendations to strengthen controls.

The Internal Audit Group ensures that its work is aligned with the Senior Management’s strategic and operational objectives, and takes into account the Bank’s aim for enhancement and growth. While meeting the planned

risk-based assurance activities, the Internal Audit Group quickly adapts to a dynamic risk environment by providing more value-adding and strategically relevant services in 2017, which include: integrated and process audit; review of information technology strategic plan; increase in data analytics and centralized audit procedures; fraud risk assessment; evaluation of residual risks against set thresholds, among others. The Internal Audit Group continuously invests in capability building to ensure that internal auditors have the right skills and competencies. Group Supervisory activities ranging from coordination to support on internal audit activities were likewise provided for internal audit units of Metrobank Subsidiaries: Orix Metro Leasing and Finance Corp., Philippine Savings Bank, Metrobank Card Corporation, and Metropolitan Bank (China) Ltd.

In 2017, the Internal Audit Group took a step back to re-assess its approaches and re-evaluate the strength of the foundations on which the internal audit methodologies are built upon. With the strong support of the Board, the Audit Committee and the Senior Management, the Internal Audit Group’s capabilities and pledged enhancements (e.g., continuous auditing through data analytics, integrated reviews, operational risk analysis), it aims to stride onward, driven with the commitment to provide quality assurance and consulting services to support the Bank in enhancing corporate risk management. In the years ahead, the Internal Audit Group endeavors to further realize efficiencies, increase effectiveness, and also provide credible opinion, valuable insights and recommendations on new and specialized topics.


across the GroupMaximizing Synergy

Summary Ownership Structure

DomesticSubsidiariesThe thriving economy has created many opportunities for the Metrobank Group to capitalize on. The Bank’s approach to offering products that cater to its clients’ every needs is also practiced by the Group subsidiaries and associates. Together, the synergy among the Group allows us to seamlessly offer the full spectrum of financial solutions across retail banking, insurance, investment banking and leasing. The recent performance and contributions among the Group reflect the changing environment and shifting customer needs. The demographic sweet spot as well as general wealth creation have helped broaden opportunities in consumer loans, credit cards and insurance products. The increase in construction spending and countryside development that we saw from our lending units coincides with more client requirements for leasing services. And lastly, the robust capital market signals the higher level of sophistication of both issuers and investors in the investment banking space.

36.09%

Ty Family/MBT

Foundation

14.93%

Free float

48.98%

92.2% 60.0% 82.7%

Investment Banking Credit CardsLeasing

59.9%

Bancassurance

28.0.2%

Note: To increase to 80% subject to regulatory approvals by 1Q 2018 and 100% by 3Q 2018 subject to closing conditions

Note: There are no shareholder agreements, voting trust agreements, confidentiality agreements or any such other agreements that may impact the control, ownership and strategic direction of the company.

* Listed on PSE

*

*

Savings Bank*


600Best

Advisory HouseIHAP

Best Investment

Bank

onsite and offsite ATMs

250 Branches

distribution network of

13 capitalCompleted

Market deals in 2017

ExcellenceAward

2017 Customer Experience Asia

Alpha Southeast

Asia

INVESTMENT BANKING

First Metro successfully completed 13 capital market deals in 2017 that included debt and equity issuances of the Government and other private institutions for their expansion, acquisition and general financing requirements. The investment bank participated in 67% of the total publicly listed capital markets transactions, raising P486 billion for the public and private sectors. First Metro continues to be the leader in the domestic bond market with 82% of the total issuances in 2017.

CONSUMER BANKING

In 2017, PSBank was awarded as one of Asia’s Best Employer Brands by the World HRD Congress and the Employer Branding Institute. And for the second consecutive year, PSBank bagged the Bronze Award for both the Customer Experience and Best Customer Experience Team categories at the Customer Experience Asia Excellence Awards. PSBank was the only Philippine bank recognized by the International Quality Productivity Center for its exceptional customer experience strategy.

In 2017, First Metro expanded its market coverage in foreign markets with the creation of the International Desk. It aims to bring First Metro’s expertise in investment banking, asset management, and securities brokering, as well as Metrobank’s commercial banking business, with focus on Japan, China, Taiwan and South Korea where Metrobank has a strong presence. In just six months of operations the International Desk has already made a lot of headways in laying the groundwork for active engagement with our regional neighbors and forging relationships in new markets to unlock fresh growth opportunities.

First Metro through its subsidiary First Metro Asset Management, Inc. (FAMI) and globally renowned index provider MSCI, Inc. launched the First Metro Index, an 18-stock index that is designed to capture the Philippine consumption-led growth story with exposure to

industries such as food and beverage manufacturing processing, fast food and restaurants, mall development, communications, financial services, tourism, transportation and more.

In 2017, First Metro was awarded the Best Investment Bank and M&A House at the 11th Annual Best Financial Institution Awards by Alpha Southeast Asia. This is the third consecutive year First Metro has received the Best Investment Bank award from three prestigious institutions: Euromoney in 2015, Global Finance in 2016, and this year from the regional institutional investment magazine Alpha Southeast Asia.

Locally, First Metro was named the Best Advisory House of 2017 at the 2nd IHAP Awards of the Investment House Association of the Philippines (IHAP). First Metro was the financial advisor of GT Capital Holdings, Inc. (GTCAP) for the sale of its 56% equity stake in Global Business Power Corporation (GBP) to Metro Pacific Investments Corporation (MPIC). First Metro also advised GTCAP for

its subsequent acquisition of 15.5% equity stake in MPIC. Both deals were recognized at the 2nd IHAP Awards as the Best Advisory Deal of the Year and the Deal of the Year.

First Metro also reaped three awards at the PDS Annual Awards. First Metro bagged the Top Corporate Securities Market Maker and ranked third in the Top 5 Fixed Income Brokering Participant, and Top 5 Fixed Income Dealing Participants.

First Metro won three awards for two landmark infrastructure deals at the The Asset Triple A Infrastructure Awards 2017.The project loan facility for Light Rail Manila Corporation (LRMC) was recognized as the Transport Deal of the Year, Philippines and Transport Deal of the Year in Asia. The other award was the Renewable Energy Deal of the Year – Hydro, Philippines for Hedcor Sibulan, Inc.’s (HSI) multi-tranche project notes facility. First Metro acted as the issue manager and sole bookrunner for the transactions.

Wilcon Depot, Inc.’s P7.04 billion initial public offering (IPO) where First Metro was the sole issue manager, bookrunner, and joint lead underwriter, was awarded Best IPO Philippines at The Asset Triple A Country Awards. The offering resulted in an oversubscription of 3.7x as it attracted a broad spectrum of investors ranging from retail individuals to investment and trust funds, pension and retirement funds, banks, insurance companies, corporations, as well as foreign funds. Wilcon was the largest domestic IPO led by a single issue manager and bookrunner.

With these achievements, PSBank has again proven its commitment to provide exceptional customer experience through a deeper analysis of customer insights, and continuous innovation in both product and service delivery. PSBank’s deployment of a Customer Experience Portal provided for more automated and systematic servicing, with a one-view of the client’s total relationship as well as interactions with various touch points. The Bank instituted the use of online surveys thru LiveChat and Online Banking to get a quick pulse of customer satisfaction. The Net Promoter Score (NPS) of branch banking was at a high of +90.

PSBank released its redesigned and more powerful PSBank Mobile App that is packed with new functionalities such as: PayMe; TouchID; QuickView; and the In-App One Time Password. It likewise launched Cardless Withdrawal which allows clients to conveniently and securely withdraw cash from any PSBank ATM without using the ATM Card.

Apart from the EMV-chip compliance with the BSP, PSBank also added the TAP contactless feature for both Debit and Prepaid cards.

For better security and operational efficiency, PSBank embarked on several system enhancements including the initial implementation of a new deposit core banking system (Flexcube) in branches. Other enhancements were the Mobile Credit Verification App which improved turnaround time for credit verification process, the Check Image Clearing System which expedited the clearing cycle, and the Billing Plus System 2 which automated the processing, approval, payment and recording of operating expenses and capital expenditures.

Internally, the Bank adopted Workplace which allowed PSBankers to immediately communicate with each other on real-time basis especially for concerns that need immediate attention and resolution. It is also a platform to motivate the workforce, train and share best practices.

Other awards received by the Bank in 2017 were: Outstanding Thrift Bank Partner for the BSP’s Clean Note Policy campaign; Honorary Mention for the Best Social Media Strategy in the Customer Experience Asia Excellence Awards; two Silver Anvil Awards for the Bank’s 2015 Annual Report: “Engaging Our Customers”, and the “Be Aware” information security awareness campaign; and an Award of Merit at the 15th Philippine Quill Awards for its 2015 Annual Report.

PSBank closed 2017 with a distribution network of 250 branches and over 600 onsite and offsite ATMs strategically located nationwide.


P5.1Bn

No.1

Net Income

Assets

cards in FORCECCAP

+23.9%1,411Life Agents

P26.4Bn

1 million

Total Premium Income

Customer protected

CREDIT CARDS

The strong consumer spending in the country helped Metrobank Card Corporation (MCC) grow to its fullest, maintaining its number 1 lead in terms of Receivables and Total Number of Cards in Force and number 2 rank in terms of Merchant Acquiring Billings, based on the latest data from the Credit Card Association of the Philippines (CCAP).

INSURANCE

AXA Philippines closed 2017 with P26.4 billion in total premium income and one million customers protected under various individual and group life insurance products. Following its entry into the non-life insurance business with the acquisition of Charter Ping-An, the fourth largest non-life insurance company in the Philippines, it ended 2017 with P5.7 billion gross premium written for its general insurance arm.

In 2017, MCC raised its total assets by 23.5%, and almost doubled its 2016 Net Income to reach an all-time-high record of P5.1billion. This brought MCC’s annualized Return on Equity (ROE) to 46.3%.

In the last quarter of the year, Metrobank announced its agreement to acquire ANZ’s shareholding in MCC. The acquisition will provide for business growth as well as improved operational efficiencies between Metrobank and MCC.

In December 2017, MCC launched the Victory Liner Premiere Prepaid VISA Card, a reloadable prepaid VISA card that can be used to book tickets via the Victory Liner website, and over the phone, and gives cardholders the access to a VIP lane when buying tickets in Victory Liner stations. When loaded at any of the 4,000 loading points nationwide, Victory Liner Premiere can be used

to shop online and at any VISA-accredited establishment. Cardholders can also enjoy perks and discounts with partner merchants. Victory Liner Premiere has a Pera Padala feature which allows cardholders to send money to loved ones locally.

2017 saw the digitalization of MCC’s promotions with its partner merchants while it sustained its promos with premium restaurants and hotels. Cardholders were offered free cinema tickets or food items through digital redemptions when they spend anywhere with their Metrobank credit card.

MCC received awards for its 2016 product launches. Robinsons Mastercard, Metrobank Card’s retail shopping co-branded credit card, was recognized as the Best Segment Solution – South East Asia at the

Mastercard Innovation Forum 2017. MCC was the only Philippine issuer that won a regional award during the forum. Additionally, the Metrobank Travel Platinum Visa Card, Metrobank Card’s first complete travel credit card, was awarded the Best New Product 2017 at the Visa Card Center Managers Forum.

MCC’s energy efficiency and conservation programs were recognized at the Don Emilio Abello Energy Efficiency Awards. MCC received a Special Award for the substantial savings in energy consumption of its main building in Makati. MCC achieved 2% production energy savings, about 13,389 Liters of Oil Equivalent or a monetary equivalent of PhP 498,339 and 26,265 kilograms of avoided CO2.

MCC continued to promote its paperless statements with MSOA, wherein cardholders received their statements via email instead of courier delivery. In 2017, more cardholders opted to enroll, resulting in cost savings and operational efficiency.

The acquisition was completed in 2016, providing an opportunity to expand AXA’s product portfolio and customer base. Integration of critical functional work streams and preparation for business synergies are currently underway. As of end 2017, there were already 1,411 Life agents that were licensed to sell General Insurance products.

AXA Philippines expanded its footprint in the country with the opening of centers in Laoag, Cebu, and in Eastwood in Metro Manila. Over the last few years, it has installed close to 200 AXA Advisory Corners in Metrobank and PSBank branches nationwide.

AXA Philippines entered into a partnership with the National Basketball Association (NBA) to become its official insurance partner in the Philippines. The strategic partnership highlights both companies’ shared principles of teamwork, integrity, courage, and innovation. It also encourages the mindset for customers to power up their game plan, not just on the physical playing field, but also on the hard court that is life.

Aligned with its goal of being a customer-centric insurer, AXA Philippines recently launched its Financial Needs Analysis (FNA) platform, both a service and a tool that an AXA financial coach (or advisor) can use to explain to the customer why life protection is important, especially in cases of unforeseen setbacks and emergencies. It is complemented by the eFNA Lite, a page on the AXA Philippines

website that offers the same functionality and benefits as the FNA tool, but with faster and easier implementation.

AXA Philippines was one of the seven entities in the AXA Group that rolled out its global brand campaign which tells the story of Lisa, an AXA customer, who was one of the victims of the Nepal earthquake in 2015. The campaign was well received and contributed immensely to the heightened brand awareness that the company now enjoys.

It also continued to expand its portfolio of products that cater to very specific markets: MyAmbition, the first single premium variable life plan for young professionals that can be completely availed online; Retire Smart, a regular premium variable life plan intended for disciplined fund build-up paid until retirement date; and Smart Traveller, a travel insurance available to purchase online.


Year Anniversary

P1.23Bn 40th

P43.97Bn

Net Income

Total Resources

LEASING

ORIX METRO Leasing and Finance Corporation once again delivered a solid financial performance for the Metrobank Group in 2017.

Business Leadership Redefined

The company ended fiscal year 2017 with P1.23 billion in net income after tax, an increase of 19% from the previous year’s P1.03 billion. It surpassed practically every financial metric it had set out to achieve last year. Its total group resources grew to P43.97 billion, a 30% increase compared to P33.3 billion recorded in FY 2016.

The financial results of ORIX METRO in FY 2017 translated to a return on average equity (ROE) of 20%. The average ROE for the past 12 years stands at over 20%. With this, ORIX METRO continued to solidify its position in the industry as one of the country’s most profitable leasing and financing companies.

The company’s gross revenue also increased from P4.47 billion in FY 2016 to P5.43 billion in FY 2017. All strategic business units of ORIX METRO contributed to this growth as they brought in total new bookings amounting to P30.72 billion in FY 2017, up by 37% compared to P22.47 billion recorded in FY 2016. ORIX METRO’s lending units at the countryside branches delivered a stellar performance by contributing 77% to the company’s new bookings.

ORIX METRO’s wholly-owned subsidiary, ORIX Rental Corporation (ORC) engaged in long-term full service operating lease (FSOL) of cars and light trucks, also delivered outstanding results last year with a total fleet of more than 7,000 units.

In 2017, ORIX METRO celebrated its 40th year in the leasing and finance industry. It was also a banner year for the company in terms of network reach as it ended 2017 with 98 branches.

After four decades in operation, ORIX METRO has now become one of the country’s most profitable financial institutions with the widest market reach all over the Philippines.

Corporate Social Responsibility

When Group Chairman Dr. George S.K. Ty founded Metrobank in 1962, he envisioned it to be a leader in the banking industry. And as the Bank prospered, he redefined leadership in business by emphasizing its responsibility as a corporate citizen, establishing the Metrobank

Foundation, Inc. (MBFI) in 1979. Since then, while the Bank has grown into an industry leader, MBFI has likewise built its own reputation as one of the biggest and most trusted corporate philanthropic organizations in the country, implementing many initiatives in pursuit of its mission to improve the lives of the disadvantaged and contribute to nation building. The achievements of these two institutions underline the Metrobank Group’s central philosophy—the intertwining of business and social responsibility.

78socio civic

and charitable organizations

P28Mtotal amount

of grants provided

285,247individuals

benefitted from MBFI initiatives

57P IVOTING TO THE FUTUREMETROPOL ITAN B ANK & TRUST CO.56

2017 Metrobank Foundation Outstanding Filipinos

Foremost among these is the annual search for Metrobank Foundation Outstanding Filipinos. Guided by the theme “Beyond Excellence,” the program recognized ten ordinary individuals with extraordinary accomplishments, rendering service above and beyond the call of duty and making a lasting positive impact on communities.

Among these awardees is “Basilan’s Soldier-Trailblazer,” Lt. Col. Elmer Suderio. As commander of the 3rd Scout Ranger Battalion, he led a series of successful combat operations against the Abu Sayyaf Group. He also worked to provide alternative livelihood opportunities for Moro National Liberation Front (MNLF) returnees after the organization signed a peace treaty pact with the Government in 1998.

Dr. Alonzo Gabriel, dubbed as “Diliman’s Food Security Advocate,” led the establishment of the country’s only Laboratory of Food Microbiology and Hygiene based at UP’s College of Home Economics. Outside the university, Dr. Gabriel was one of three technical writers—convened by the Department of Agriculture and the United States Food and Drug Administration—who authored the Philippine National Food Defense Standard in 2011.For his part, PSSupt. Joel Doria, City Director of the Cebu City Police Office, initiated the anti-criminality campaign known as Project POKEMON. It has resulted to the arrest of more than 1,700 criminals, including big-time drug traders. Huge cargos of contraband worth more than P80 million were also confiscated.

Metrobank Art & Design Excellence (MADE)

The Foundation has also long provided a platform for up-and-coming artists to springboard their work into greater creative fronts. The Metrobank Art & Design Excellence (MADE) has helped launch the careers of the country’s most admired contemporary artists and sculptors. This year’s theme, “IMAGINE,” challenged Filipino painters and sculptors to root their creative works on the very seedbed of their artistic genius—the human imagination. In 2017, the Foundation also launched a cultural and heritage education program with supported activities including lectures, workshops, conferences, talks and grant-giving.

MBFI Education Programs

Metrobank Math Challenge (MMC), the most widely participated math competition in the country among elementary and high school students, drew a total of 572,916 pupils to the nationwide elimination rounds in

2017. Out of this number, 44 students representing 29 public and private schools advanced to the final leg of the competition.

The Foundation also continued to support the education of financially challenged but academically outstanding students through various scholarship programs it manages. This year, 91 scholars from 21 universities and colleges across the country finished their undergraduate degrees. This was the biggest batch of graduates for the Foundation so far. Of this number, 23 graduated with Latin honors.

Good education would however remain far-fetched if not for the school’s greatest asset: teachers. This appreciation for their crucial, yet often overlooked role is at the heart of the National Teachers’ Month (NTM) movement, led by MBFI and the Department of Education. In 2017, even more organizations have joined the NTM celebrations which ran from September 5 to October 5.

Consistent with its commitment to strengthen the pillars of democracy in the country, the Metrobank Foundation Professorial Chairs program welcomed distinguished personalities to its roster of chairholders. Among them is Philippine Judicial Academy vice chancellor Ret. Justice Romeo Callejo, Sr., 2017 Metrobank Professorial Chairholder in Ethics. He delivered a talk on the issue of judicial accountability and disciplinary action at the Supreme Court En Banc Session Hall.

Healing the Nation through Grants

For 2017, a total of 315,022 individuals benefitted from the various initiatives by the Foundation and its partners. Going into next year, additional projects supported by MBFI would include provision of handwashing facilities in schools, construction of classrooms for Indigenous Peoples, restoration of the Manila Metropolitan Theater, and trainings for coffee farmers.

Together with GT Foundation, Inc. (GTFI), the Ty family foundation, MBFI also distributed P10 million worth of food items to welcome the Year of the Fire Rooster through the annual Bags of Blessing project. Benefitting 10,000 underprivileged families in 18 cities and municipalities nationwide, this series of gift-giving activities during the Chinese New Year helps carry out the Metrobank Group and GT Capital Holdings’ tradition of sharing.

A total of 78 socio civic and charitable organizations were supported by the Metrobank Foundation in 2017, with a consolidated grant amount of P28 million to aid programs and projects.

Metrobank Foundation as the Recipient of Awards

A validation of its choice of activities, the Foundation took home seven trophies at the 52nd Anvil Awards organized by the Public Relations Society of the Philippines. Among these were three Gold Anvils and four Silver Anvils. These awards add to the number of honors received by the Foundation. To date, it has won 71 Anvil awards for its various programs and public relations tools.

Coming from a fruitful year in 2017, the Metrobank Foundation remains committed to a leadership role among corporate philanthropic organizations. The coming years will see the Foundation making meaningful contributions to Philippine social development and giving back to the community. PURPLE HEARTS CLUB

Metrobank continues to grow in its advocacy of Corporate Social Responsibility through the Purple Hearts Club, or PHC, the volunteerism arm of the Bank. In its 15th year of existence, PHC is composed of 60 chapters with 7,623 members.

The success of PHC in 2017 lies in the heart for service shown by the Bank’s employee-volunteers. Employees participated in an array of CSR programs that focus on education, environmental stewardship, and health. PHC also collaborated with partners across several industries to introduce employees to new opportunities for volunteerism that benefit and support other marginalized sectors of society.

Engaging in Partnerships

• The Adopt-A-School Program, a new initiative introduced in 2017 where chapters adopted schools as their beneficiaries for PHC’s projects

• Play It Forward, another PHC program launched in 2017 that advocates therapeutic play as an integral part of the holistic development of children in the partner hospital

• Bags of Blessing, a nationwide gift-giving project initiated by Metrobank Group Chairman Dr. George S.K. Ty in celebration of the Chinese New Year

Standing United in Causes

• 2017 Metrobank Fiesta Fun Run, a fundraising activity to finance the 10th Anniversary of National Teachers’ Month and contribute in the Manga Development Project of Manila Doctors Hospital

• One with Marawi, the Bank’s fundraising initiative that raised PhP 459,487.00 used to support soldiers in Marawi

Putting Premium on Education

• Kwentong Bata Beyond Storytelling, the Bank’s flagship literacy program that encourages values formation reading and writing skills development through storytelling for pre-school aged children

• Library Enrichment, an education program which aims to instill a culture of reading through book and reference donations and activity preparations for the community

• Brigada Eskwela, a clean-up and rehabilitation assistance program for schools

• National Teachers’ Month, a celebration for heroes in the teaching profession

Encouraging Environmental Stewardship

• You’re In Green Hands, an environmental stewardship program with restoration activities such as tree planting, mangrove planting, seashore, and coastal clean-up drives

• Ready, Set, Gulay!, a program that promotes maintenance of a vegetable garden in the school grounds

Ensuring Growth through Health

• Hapag Kainan, an initiative that advocates for an effective yet inexpensive way to promote health through teaching proper hygiene and sharing a simple meal with beneficiaries and partners

• Dugong Metrobank, PHC’s bloodletting activity where volunteers and guests donate blood for those in need in collaboration with hospitals and local institutions

The year 2017 reinforced the commitment of Metrobank to its advocacy of Corporate Social Responsibility through the improved mobilization of its employee-volunteers in the Purple Hearts Club and implementation of new CSR programs. Through its CSR unit, the Bank was able to further actualize its different thrusts and successfully support beneficiaries from various backgrounds, reflecting the essence of a Metrobanker as an individual with a heart for the community.

59P IVOTING TO THE FUTUREMETROPOL ITAN B ANK & TRUST CO.58

“For me, business

is not just about

reaching the

pinnacle of success,

it is also about

empowering

Filipinos to achieve

their dreams.”

Metrobank Group Chairman and founder Dr. George S.K. Ty received the

2017 Ramon V. Del Rosario (RVR) Award for Nation Building conferred by

the Junior Chamber International (JCI) Manila and the Asian Institute of

Management’s (AIM) Center for Corporate Responsibility last July 25, 2017.

Dr. Ty was chosen for exhibiting entrepreneurial spirit, good corporate

citizenship, social responsibility, and for his underlying passion for nation-

building, all of which mirror the traits and characteristics exemplified by

Ramon V. Del Rosario.

Dr. Ty was also conferred The Order of the Rising Sun, Gold and Silver

Star, by Japanese Prime Minister Shinzo Abe last November 7, 2017 at

the Imperial Palace in Tokyo, Japan. Emperor Akihito later received Dr. Ty

together with other 2017 honorees at the Houmei-Den. The recognition

was given to Dr. Ty for his efforts in strengthening Philippine-Japanese

economic relations. In particular, he undertook landmark joint ventures

with several Japanese companies in key sectors such as automotives, real

estate development, investment banking, insurance, and consumer finance.

By facilitating the entry of Japanese investments into the Philippines, Dr. Ty

has contributed to the country’s economic development.

That is why for us at Metrobank, it’s not just all about increasing the bottom line. We are in the

business of doing good, giving back to the community, and helping the country. We have taken

upon our shoulders the task not just of growing wealth but of building the nation.

We take great pride and joy in the recognition and the awards that Dr. George S. K. Ty, Founder

and Metrobank Group Chairman, has garnered in the area of corporate social responsibility.

When Group Chairman Dr. George S. K. Ty founded Metrobank in 1962, he envisioned it to be a leader in the banking industry. And as the Bank prospered, he redefined leadership in business by emphasizing its responsibility as a corporate citizen.

Board of DIRECTORS

Dr. George S.K. TyGroup ChairmanFounder, Metrobank*85 years oldChairman Emeritus, GT Capital Holdings, Inc.*Chairman, Toyota Motor Philippines CorporationChairman, Metrobank Foundation, Inc.Honorary Chaiman, GT Foundation, Inc.Doctorate degree in Humanities, Honoris Causa, University of Santo Tomas

Arthur TyChairmanDirector since April 200251 years oldChairman of GT Capital Holdings, Inc.*Vice Chairman, Philippine Savings Bank*Vice Chairman, First Metro Investment Corp.Chairman, Metropolitan Bank (China) Ltd.MBA, Columbia University, New York

Francisco C. Sebastian Vice ChairmanDirector since April 200263 years oldCo-Vice Chairman, GT Capital Holdings, Inc.*Chairman, First Metro Investment Corp.Chairman, First Asset Management Inc.Director, Metro Pacific Investments Corporation*Director, Federal Land, Inc.AB Economics, Ateneo de Manila

Fabian S. DeePresident/DirectorPresident/Director since April 2012 (also served as Director from September 2007 to March 2011)55 years oldChairman, Metrobank Card CorporationChairman, Metro Remittance Singapore PTE Ltd.Chairman, SMBC Metro Investment CorporationActing Chairman, LGU Guarantee CorporationDirector, BancnetDirector, Bankers Association of the PhilippinesTrustee, Metrobank Foundation, Inc.BS Management Engineering, Ateneo de Manila

Alfred V. TyDirectorDirector since September 201550 years oldCo-Vice Chairman, GT Capital Holdings, Inc.*Vice Chairman, Toyota Motor Philippines CorporationChairman, Lexus Manila, Inc.Chairman, Federal Land, Inc.Chairman, Property Company of Friends, Inc.Director, Metro Pacific Investments Corporation*BS Business Administration, University of Southern California

Edmund A. GoDirectorDirector since May 200767 years oldDirector for Investment, Ateneo de Manila UniversityAdvisor, Philippine Savings Bank*Director, Metropolitan Bank (China) Ltd.Investment Consultant, St. Peter Life GroupMBA, Asian Institute of Management

Vicente R. Cuna, Jr.DirectorDirector since April 201455 years oldPresident, Philippine Savings Bank*Chairman, ORIX Auto Leasing Philippines CorporationAB Economics, De la Salle University

Dr. Jesli A. LapusIndependent DirectorDirector since August 201068 years oldDirector, STI Education Systems Holdings Inc.*Chairman, STI Education Services Group Inc.Chairman, Center for Tourism, Asian Institute of ManagementIndependent Director, Philippine Life Financial Assurance CorporationChairman, LBP Service CorporationFormer Secretary, Department of Trade and IndustryFormer Secretary, Department of EducationFormer President/CEO/ Vice Chairman Land Bank of the PhilippinesDPA, Honoris Causa, Polytechnic University of the Philippines

Robin A. KingIndependent DirectorDirector since April 201170 years oldTrustee, Habitat for Humanity PhilippinesFormer Independent Director, First Metro Investment Corp.Former Independent Director,Toyota Financial Services Philippines CorporationFormer President/Director, Global Business Phils.MBA, Finance, University of the Philippines

Rex C. Drilon IIIndependent DirectorDirector since August 201271 years oldVice Chairman, Institute of Corporate DirectorsTrustee, Institute of Solidarity in AsiaFormer Chief Operating Officer, Ortigas & CompanyFormer President/Director, Cebu Holdings, Inc. *Former President/Director, Cebu Property Ventures and Development Corporation *Former Independent Director, First Metro Investment Corp.BS Business Administration, University of the East

Francisco F. Del Rosario, Jr.Independent DirectorDirector since April 201370 years oldDirector, Omnipay, Inc.Director, DMCI Homes, Inc.Trustee, ABS-CBN FoundationFormer Director, Mapre Insular Insurance Corp.Former Cabinet Member, Habitat for Humanity PhilippinesFormer President, Management Association of the PhilippinesFormer Vice Chairman/ President/CEO, Development Bank of the PhilippinesMBM, Asian Institute of Management

Edgar O. ChuaIndependent DirectorDirector since April 201761 years oldIndependent Director, Integrated Micro-electronics, Inc. *Independent Director, Energy Development Corporation*Chairman, Pilipinas Shell Foundation, Inc.Chairman, De La Salle University BoardChairman, Philippine Business for the EnvironmentPresident and CEO, Cavitex Holdings Inc.Former Chairman, Pilipinas Shell Petroleum Corp. *BS Chemical Engineering, De La Salle University

1 2 3 4 5 6 7 8 9 10 11 12

1 2

7 9 10 11 12

3

8

654

*Publicly ListedAll Directors are Filipinos


Board of ADVISERS

ADVISERS

Senior ADVISERS

Hon. Fidel V. RamosSenior AdviserFormer President, Republic of the Philippines

Hon. Artemio V. PanganibanSenior AdviserRetired Chief Justice, Supreme Court of the PhilippinesChairman, Board of Advisers, Metrobank Foundation, Inc.

Dr. David K.P. LiSenior AdviserChairman/CEO, Bank of East Asia, Ltd. Hong Kong

Gabriel ChuaSenior AdviserPresident, Solid State Multi Products Corp.

Dr. Placido L. Mapa, Jr.Senior AdviserSenior Adviser, Metrobank Foundation, Inc.Chairman, University of Asia & the Pacific

James GoSenior AdviserAdviser, Metrobank Foundation, Inc.

Carlos S. ChanSenior AdviserChairman, Liwayway Marketing Corp.Chairman, Chan C. Bros, Inc.Chairman, Liwayway (China) Co., Ltd.Special Envoy of the President for the People’s Republic of China

David O. ChuaAdviserPresident, Cathay Pacific Steel Corp.Trustee, University of the EastTrustee, 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

Tan Tian SiongAdviserChairman/President, Nation Paper Products & Printing Corp.

Cornelio C. GisonAdviserFormer Undersecretary, Department of Finance


BRANCHES AND CONSUMER Sectors

INSTITUTIONAL BANKING Sectorfrom L to R:

SVP Antonio R. Ocampo, Jr. • SVP Mary Rose S. TiamsonSVP Godofredo V. Cruz • EVP Mary Mylene A. Caparas

EVP Amelin S. Yao • SVP Louie I. EvangelistaSVP Fermin T. Chio • SVP Leopoldo M. Ubaldo

from L to R:SVP Nelson G. SeeSVP Melizza Doris L. GuiaoSVP Flordeliz T. KwanEVP Richard Benedict S. SoSVP Susan L. NiereSVP Lita S. TanSVP Teresita L. DySVP Rowena D. OliverosSVP Manolito M. OsorioSVP Emmeline D. GoSVP Vicente F. JandayanSVP Mark Anthony B. Perez (not in photo)

Senior OFFICERS

All employees are Filipinos.


FINANCIAL MARKETS Sector

FINANCIAL AND CONTROL Sector

from L to R:SVP Edgar Alan P. Guerrero • EVP Josefina T. Tuplano • SVP Angelica S. Reyes • SEVP Fernand Antonio A. Tansingco SVP Leandro Antonio G. Santillan • SVP Maria Lizette B. Perez • SVP Anthony Paul C. Yap

from L to R:SVP Marilou C. Bartolome • SEVP Joshua E. Naing • SVP Quintin T. Medrano, Jr.SVP Arlene Lapuz-Ureta (not in photo)

Senior OFFICERS



from L to R:SVP Jette C. Gamboa • SVP Digs A. Dimagiba • SVP Christine W. Yang

SVP Stephen S. See • SVP Bernardino D. Ramos

from L to R:EVP Paul Robert Y. Murga • EVP Maritess B. AntonioSVP Pocholo V. Dela Peña • EVP Corazon Ma. Therese B. Nepomuceno

from L to R: EVP Aniceto M. SobrepeñaEVP Vivian L. Tiu

Senior OFFICERS



SummaryFinancial Statements

At Year End Consolidated Parent 2017 2016 2017 2016Total Assets 2,080,292 1,876,009 1,701,385 1,543,215Loans and Receivables – Net 1,265,469 1,060,868 1,002,921 844,198Investment Securities 387,797 354,069 302,717 280,360Others 427,026 461,072 395,747 418,657 Total Liabilities 1,876,202 1,670,456 1,494,759 1,347,213Deposit Liabilities 1,527,962 1,389,302 1,313,947 1,205,687Demand 344,708 298,388 314,542 272,081Savings 605,508 547,685 576,807 522,643Time 547,721 520,329 395,948 388,063Long-Term Negotiable Certificates of Deposit 30,025 22,900 26,650 22,900Others 348,240 281,154 180,812 141,526 Total Equity 204,090 205,553 206,626 196,002Attributable to: Equity Holders of the Parent Company 201,955 196,002 206,626 196,002Other Equity Reserves (7,400) - - -Non-Controlling Interest 9,535 9,551 - - Book Value Per Share (BVPS) 63.51 61.75 64.98 61.75 Foreign Exchange (USD:PHP) PDS Closing Rate 49.93 49.72 PDS Weighted Average Rate 50.41 47.48 (PDS: Philippine Dealing System)

(In Million Pesos, Except Per Share Amounts and Foreign Exchange Rates) For the Year Consolidated Parent 2017 2016 2017 2016Net Interest Income 61,406 52,946 36,493 32,207Interest Income 80,322 68,181 48,011 40,997Interest Expense 18,916 15,235 11,518 8,790 Non-interest Income 22,836 25,927 16,858 18,816Service Charges, Fees and Commissions 11,045 10,329 4,171 3,768Trading and Securities Gain (Loss) - Net -402 6,563 -1,079 6,154Foreign Exchange Gain (Loss) - Net 4,257 2,005 4,101 1,533Leasing 2,129 2,001 215 220Income from Trust Operations 1,377 1,274 1,351 1,251Other Non-interest Income* 4,430 3,755 8,099 5,890 Total Operating Income 84,242 78,873 53,351 51,023 Total Operating Expenses 54,982 51,935 30,613 29,047Provision for Credit and Impairment Losses 7,507 7,342 1,395 1,174Other Operating Expenses 47,475 44,593 29,218 27,873Provision for Income Tax 7,990 6,622 4,515 3,890 Net Income 21,270 20,316 18,223 18,086Attributable to: Equity Holders of the Parent Company 18,223 18,086 Non-controlling Interest 3,047 2,230 Basic/Diluted Earnings Per Share (EPS) Attributable to Equity Holders of the Parent Company 5.73 5.61 *Includes share in net income of associates and a joint venture

For the Year Consolidated Parent 2017 2016 2017 2016Net Interest Margin 3.8% 3.5% 2.9% 2.7%Return on Average Equity 9.2% 9.3% 9.1% 9.3%Return on Average Assets 0.9% 1.0% 1.1% 1.2%Non-performing Loans Ratio 1.0% 0.9% 0.6% 0.4% Capital Adequacy Ratio 14.4% 15.5% 13.5% 14.2%Tier 1 Capital 11.8% 12.5% 10.8% 11.2%Common Equity Tier 1 11.8% 12.5% 10.8% 11.2%


Senior OfficersFIRST VICE PRESIDENTAbellar, Ma. Lourdes P.Abes, Kathryn Francis B.Ajos, Jay Nazarene Christene A.Alcantara, Allen D.Almeda, Mary Jacqueline Justina H.Arjonillo, Carolina K.Bartolo, Eden L.Buenavista, Grace C.Burgos, Reynaldo C.Capili, Judy Grace D.Capulong, Jovencio R.Centena, Mia S.Chan, Marie Chorie Candice R.Chua, Claudine U.De Santos, Justina Ma. Teresita M.De Vera, Rosanna F.Diño, Carissa A.Dionisio, Rommel Enrico C.Esguerra, Samuel D.Fajardo, Ma. Theresa A.Fragante, Leo R.Gatchalian, Edna D.Lao, Carolyn T.Lim, Alex C.Lim, Mary Joyce S.Lindo, Ely Roy B.Lu, Dennis Lawrence T.Lugue, Manolo T.Maraingan, Rey T.Mariano, Federico T.Matriano, Romulo, Jr. M.Ng, Natalie T.Ong, David S.Orlino, Christian Paul Philippe D.Oxales, Maria Lourdes Veronica C.Pedrosa, Ricardo N.Reyes, Christopher Hector L.Rivera, Elmer R.Rivera, Melanie N.Roxas, Cynia C.Salcedo, Rosana R.San Juan, Christian D.Sevidal, Raquel N.Simbulan, Mylene S.Siriban, Cynthia P.Sta. Ana, Lalaine C.Tan, Irene Y.Tobias, Benigno G.Tolentino, Lorna Y.Trinidad, Maria Elena Z.Ty, Zandra M.Urbiztondo, Rey C.Vasco, Jose Antonio O.Villanueva, Paul Donato V.Wong, Jay S.Xu, May Sherri M.Yap, Josephine Kee Hong S.Yuseco, Noel Peter Z.Zamora, Anthony Albert M.Zamora, Ruben L.

VICE PRESIDENTAguila, Elizabeth B.Alejandrino, Randy A.Alincastre, Celso Manuel, Jr. G.Amiscaray, Gina Rowena V.Arellano, Hector B.Arenas, Celina A.Balagtas, Dennis Edmund E.Balatbat, Armelyn G.Bandong, Angela Juvy C.Banson, Ma. Amparo M.Barlis, Armand B.Bautista, Dionnette P.Bautista, Ildemarc C.Bauto, Ramoncito O.Beltran, Ma. Jizzelle Lee M.Berbaño, Noel L.Bernabe, Laarni D.Bormate, Rebecca B.Cabral, Emmanuel R.Cagurangan, Jose Mari S.Calumpang, Eric A.Carreon, Reynilo M.Chan, Susana Y.Chiong, Easter Angela S.Chiu, Mary Ann K.Co, Cristina G.Co, Nerisa O.Cocabo, Jinnah E.Coloma, Ma. Teresa A.Concepcion, Crisanto M.David, Jaqueline L.De Leon, Patricia May P.De Venecia, Marcelo III, R.Del Rosario, Ma. Theresa P.Delizo, Ricardo S.Espino, Donato V.

Faustino, Joseph S.Fernandez, Ma. Carlota C.Florendo, Eugenia A.Francisco, Criselda N.Gan, Grace P.Garcia, Jose Ramon C.Gatuslao, Geralyn Q.Gloriani, Emelita A.Go, Maria Elena R.Go, Nathaniel D.Herradura, Renalita L.Koa, Alicia K.Kow, Blaine P.Lecaros, Arnold A.Legaspi, Elizabeth B.Legaspi, Elizabeth D.Leh, Paul Terence T.Leung, Ramir M.Liao, Ma. Theresa E.Lim, Walter C.Liwanag, Fina Victoria S.Lomigo, Happy Mar S.Lustre, Gemma Theresa A.Malagar, Kathryn Kay T.Mangaban, Neliza B.Manzano, Ma. Imelda L.Mapa, Juan Placido III, T.*Matibag, Virgin Glore E.Mayor, Maria Ana S.Medalla, Maria Nelia S.Mercado, Rizaldo G.Millonado, Maida Lourdes E.Mirasol, Esmeraldo S.Mozo, Michelle Anne G.Navarra, Jasmine E.Ochoa, Marie Antoinette M.Ong, Maria Rita Purificacion V.Ongsiaco, Edna O.Oppus, Maja G.Padilla, John L.Palao, Katherine T.Pamaran, Mary Rose R.Panlilio-Amoranto, Janella Marie R.Pascioles, Arnulfo, Jr. B.Pasimio, Mikael Angelo S.Payabyab, Ener F.Que, Marilou P.Que, Winny S.Rabot, Joel U.Reyes, Ma. Imelda A.Reyes, Maria Sharon C.Rosette, Edita E.Roxas, Anna Sylvia E.Roxas, Eriberto Pedro Antonio C.Ruiz, Cynthia G.Salazar, Robert Manuel B.Samaniego, Chad Aaron R.Samonte, Angela Esperanza M.San Miguel, Rolando L.Sanchez, Enrico E.Santos, Ruben L.Santos, Vanessa Grace Y.Santos, Veronica C.Seludo, Mary Grace J.Siapuatco, Ma. Dolores L.Tan, Helen L.Tan, Jennifer G.Tan, Leny C.Tan, Mary Janet S.Tan, Roseanne T.Tee, Elsa U.Tenorio, Florencio A.Tiongson, Carmelita A.Tiu, Betty T.Tobias, Juan Antonio T.Trinidad, Anna Maria C.Untal, Alexander C.Valencia, Edwin M.Valenzuela, Ma. Gingili A.Vargas, Merlito M.Victoriano, Randell D.Villa, Hector M.Villanueva, Michele L.Yabut, Mark Dexter D.Yap, Sydney Thaddeus K.Yee, Mary Ruth Frances M.Ypil, Charito N.Yu, Zenaida R.

ASSISTANT VICE PRESIDENTAbueg, Alona A.Adizas, Fe Magnolia B.Alcantara, Jose Miguel Paolo F.Aliluya, Annalice C.Amantillo, Ma. Concepcion A.Andres, Zenaida S.Ang, Maria Jennifer P.Ang, Michelle U.Angco, Ronaldo D.

Angob, Maria Socorro T.Anot, Alfredo, Jr. D.Antiporda, Susan Q.Antonio, Rodolfo E.Anunciacion, Dante P.Aquino, Roland Raphael A.Atraje, Maria Teresa S.Azada-Chua, Maria Cynthia K.Balajadia, Ma. Cecilia C.Baltazar, Airah S.Basconcillo, Priscilla S.Bilasano, Jasmin S.Biyo, Alma D.Borce, Susan C.Bosita, Anna Gael D.Cabaero, Claro B.Calderon, Estela S.Candelaria, Liv Ivy Lane P.Canicula, Jesus B.Canlas, Clair Aquin Ned P.Capacillo, Joyce L.Cardillo, Hernando S.Carpio, Jaime Noel Z.Castro, Maria Cecilia O.Castro, Miriniza C.Cayanan, Gabriel N.Celo, Jessica C.Chan, Policarpio S.Chua, Helen C.Chua, Marianne T.Chuaunsu, Merriam Josephine Socorro M.Cirujano, Edralino G.Cledera, Jean L.Co, Agnes C.Constantino, Marilyn M.Cordero, Eufrocina C.Cruz, Darius M.Cruz, Dennis Ryan V.Cuenca, Lirio Luna D.Curato, Raymund D.Cuyugan, Ruth C.Daleon, Wilfredo T.Dampitan, Maria Arlene A.De Castro, Ma. Theresa N.De Guia, Florinda L.De Guzman, Lyn L.De Jesus, Jude Martin Peter S.De Jose, Jane D.De Leon, Bernard M.Del Moral, Dorotheyo B.Dela Cruz, Jon Sherbert G.Dela Victoria, Evelyn G.Dimatatac, Wivina R.Divinagracia, Maria Cecilia T.Dizon, Mervin S.Dumago, Salvador, Jr. B.Enriquez, Albert T.Escobar, Lourdes N.Eustaquio, Christopher John H.Falcon, Flordeliz G.Fernandez, Ferdinand B.Florendo, Steve V.Francisco, Ma. Elizabeth A.Gabor, Melissa K.Gabriel, Eloisa A.Galano, Romeo V.Garcia, Rolando Paul, Jr. C.Geronimo, Isidro A.Gloria, Arthur Robert C.Go, Andrew Michael G.Golangco, Margaret C.Gonzales, Cromel D.Gonzales, Iris B.Gregorio, Arleen Gay L.Haveria, Melchor F.Heceta, Julita Corazon M.Henson, Juan Marco S.Henson, Ma. Charina Barbara C.Herico, Laarni L.Hernandez, Maria Zarah C.Herrera, Jose Emmanuel K.Ileto, Olivia Z.Imperial, Reenalee S.Jiang, Peggy S.Jose, Martin M.Junio, Judy Minda O.Kaamiño, Francis Joseph P.Kua, Francis W.Kua, Sharon B.Lariosa, John Benecer III, R.Larlar, Francis Rene B.Lasala, Maria Celeste F.Lawenko, Maria Lourdes Concepcion U.Leonardo, Carilla S.Leyson, Amelyn O.Lim, Steve Robertson L.Limpin, Irmino Noel R.Llave, Baby Amor R.Lo, Christy T.Lucido, Mirasol C.

Macabidang, Eloisa S.Macalalad, Raul S.Madlangbayan, Reyni D.Madrazo, Alma E.Magbual, Eugenio R.Magpayo, Ruth Salome A.Magsalin, Ma. Dulce D.Malan, Joel Julio M.Manansala, Fernando Jose T.Manzano, Ivy Din A.Mariano, Ernest Michael, Jr. L.Mariano, Jose Bayani T.Mariano, Marian Louise F.Medina, Augusto, Jr. G.Mendez, Diana Lou N.Mendiola, Ernesto, Jr. E.Mendoza, Alexander P.Mercado, Maureen S.Mir, Marjorie N.Muñoz, Antonio T.Nadera, Caroline S.Nagasan, Nerisa D.Navarrete, Nikki Rose A.Navarro, Don Manolo M.Ngo, Ma. Victoria G.Nicdao, Ramon P.Nieto, Anabel N.Oliquino, Senen M.Oppus, Louie T.Osol, Ludivico G.Osorio, Melchor V.Paatan, Yagtan Kenin S.Pacaña, Evangeline U.Padilla, Lamberto, Jr. M.Pador, Flossie Mae G.Padua, Myla S.Palma, Rogelio, Jr. V.Panogan, Hrothgar M.Pantallon, Mark S.Parreño, Joyce P.Pascual, Ruel A.Patangan, Vicente, Jr. C.Pecaña, Genevieve C.Pelaez, Joseph Eric D.Pelayo, Shirley S.Po, Cristina Y.Ponce, Anna Katrina Y.Quema, Alma V.Quesada, Nencie A.Quiñanola, Romberg E.Raga, John Ramos, Randolph John C.Resurreccion, Cynthia C.Reyes, Ma. Glenda Y.Reyes, Maurita C.Rivera, Teddy D.Rodriguez, David Lloyd D.Rosana, Carlos E.Rosario, Bernadette S.Rosario, Rolando G.Rubiano, Susanna L.Salenga, Michele B.Salientes, Rodolfo J.Salonga, Enmar S.Salvador, Maria Virna A.Samonte, Helen A.Sanagustin, Jose Luis S.Sandil, Ricardo L.Santos, Jose Enrico S.Santos, Ma. Milagros Laureta D.Sayo, Leomel C.Sierra, Diana O.Sinay, Jeanilyn A.Sio, Midel A.Siochi, Reynaldo C.Sioson, Michelle Odette D.Siy, Vida Jordana C.Sowy, Maria Theresa Z.Suarez, Alma V.Suplico, Maria Ava Sharone S.Sy, Janet U.Tan, Catherine C.Tan, John Paul V.Tan, Vivien V.Tantuan, Mercy M.Teodoro, Denny L.Tigas, Anna Melissa U.Tuason, Geoffrey V.Valencia, Alfredo P.Valeriano, Ma. Michelle S.Varquez, Esther T.Velez, Ma Christina A.Ventura, Remigia R.Verceles, Josefina Janet F.Villaruel, Helen B.Wenceslao, Violeta D.Wilwayco, Rowena R.Yap, Francisco P.Yapson, Ma. Socorro L.Yrureta, Daisy C.Yuson, Inocencio, Jr. Y.

Contact InformationFor inquiries on dividends, stock certificates, and related matters

STOCK TRANSFER SECTIONMetrobank Trust Banking Group,17th Floor GT Tower International6813 Ayala Avenue corner H.V. de la Costa St.,Makati City, Philippines 1227Telephone no.: +632 857 5299 • +632 857 5695 Fax No.: +632 858 8517 E-mail: [email protected] To know more about the Bank’s business, recent performance and significant developments

INVESTOR RELATIONSStrategic Planning Division,11th Floor Metrobank PlazaSen. Gil Puyat Avenue,Makati City, Philippines 1200 Telephone no.: +632 857 9783 Fax No.: +632 817 6355 E-mail: [email protected] CORPORATE COMMUNICATIONS19th Floor Metrobank PlazaSen. Gil Puyat Avenue,Makati City, Philippines 1200 Telephone no.: +632 857 5526 E-mail: [email protected]

For general inquiries, action on requests and customer comments 24/7 CONTACT CENTER Metro Manila: +632 8700 700 Domestic Toll Free: 1 800 1888 5775 E-mail: [email protected] For Head Office Center units and directory assistance HEAD OFFICE TRUNKLINE+632 898 8000+632 857 0000

www.metrobank.com.ph

Metrobank is the country’s premier universal bank, with an extensive consolidated network that spans over 2,300 ATMs nationwide, more than 950 domestic branches, and 33 foreign branches, subsidiaries and representative offices.

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