Metrobank Doubles Capital To P100B, Pays Out P12.7-B Stock Dividend

Metropolitan Bank & Trust Corporation is doubling its authorized capital stock to comply with Basel III requirements as well as for the issuance of a stock dividend worth P12.7 billion.

In a disclosure to the Philippine Stock Exchange, the bank said its board of directors has approved the declaration of a 30 percent stock dividend representing more than 633 million common shares.

The Metrobank board also approved the amendment to its Articles of Incorporation to increase the authorized capital stock from P50 billion to P100 billion. The stock dividends will be issued out of the increase in authorized capital stock.

The increase will be divided into 1.5 billion common shares and 1.0 billion preferred shares, each with a par value of P20 per share.

The preferred shares shall be non-voting except as provided by law and shall have preference over common shares in the distribution of dividends. Other specific terms and conditions of the preferred shares shall be determined at the time the Bank decides to issue the said shares.

"The proposed increase in authorized capital stock gives Metrobank flexibility to issue Basel III-compliant Tier 2 notes in the future," the bank said.

The Basel III guidelines issued by the Bangko Sentral ng Pilipinas (BSP) on January 15, 2013 requires that Tier 2 notes have a provision for the instrument to either be written-off or converted to common equity upon occurrence of certain trigger events.

The BSP circular further stipulates that banks must make the necessary amendments to its Articles of Incorporation to accommodate such a conversion.

Based on audited financial statements at the end of 2012, Metrobank reported total equity of P120.0 billion and total capital adequacy ratio (CAR) of 16.3 percent with Tier 1 CAR at 13.7 percent.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Ayungin dilemma Ramon Casiple - Parallaxis
    Ayungin dilemma

    China faces a dilemma in Ayungin Shoal and other contested areas. If it waits for the ITLOS—which may decide against it—it would have tacitly bound itself to UNCLOS and risk a rogue state reputation if it asserts its claim in the South China Sea. If its militarily acts now, it may face international isolation. …

  • 48 nabbed in biggest anti-trafficking catch in Bongao VERA Files - The Inbox
    48 nabbed in biggest anti-trafficking catch in Bongao

    By Jake Soriano, VERA Files Bongao, Tawi-tawi—A team of Marines and policemen intercepted around noon Thursday 48 people, 12 of them minors, believed recruited by a human trafficking syndicate for work in Malaysia. The arrest constitutes what advocates called the … Continue reading → …

  • Docs vow to pay right taxes, make peace with BIR VERA Files - The Inbox
    Docs vow to pay right taxes, make peace with BIR

    By Kiersnerr Gerwin Tacadena, VERA Files Leaders of the medical profession have made peace with their former adversary, the Bureau of Internal Revenue (BIR), and joined forces in a campaign to get doctors to pay the right taxes. BIR Commissioner … Continue reading → …

Poll Choice Options