Metrobank's extraordinary gains for 2013 reaches PHP10.6b

Thanks to the sale of its 49% stake in GBP.

According to Maybank Kim Eng, Metrobank’s (MBT) reported net profit was in line with our expectation at PHP18.1b in 1H13. In 2Q13, reported net income more than doubled to PHP6.8b on the back of 21% growth in net interest earnings.

Here's more from Maybank Kim Eng:

The bottom line also has gains of PHP3.08b from the sale of a 20% stake in Global Business Power Corp (GBP). Stripping this, core net income rose 19% to PHP3.7b in 2Q13 and 59% to PHP11.4b in 1H13.

We revised our core earnings estimate 11% lower to PHP18.2b (EPS: PHP8.64) in 2013 and 4% down to PHP17.4b (EPS: PHP8.24) in 2014. We recognized the sale of MBT’s total 49% stake in GBP, implying one-off gains of PHP4.1b in 2H13 for MBT’s remaining 29% stake. This brings our total 2013 extraordinary gains estimate to PHP10.6b from PHP7.3b previously.

We also lower gains relating to foreign exchange operations and equity earnings from associates. In 2014, we recognized higher interest costs for the planned USD500m Tier 2 debt that may be issued at yearend.