MICROCAPITAL BRIEF: Philippines-Based Metrobank Foundation to Expand Microfinance, Metrobank Group Donates $456k for Development Projects

The Metrobank Foundation, an arm of Philippine financial conglomerate Metropolitan Bank and Trust Company (Metrobank Group) recently announced that it plans to expand its microfinance project that is focused on Filipino citizens who work overseas, with particular attention to domestic workers based in Singapore and Hong Kong. The project is administered by Alalay sa Kaunlaran Inc. (ASKI), a nonprofit microbank operating primarily in the northeastern portion of the Philippine island of Luzon.

Mr Aniceto Sobrepeña, the president of the Metrobank Foundation, said that “we donated PHP 10 million (USD 228,000) as the revolving fund. ASKI lends the money to OFWs [Overseas Filipino Workers] and their families once their business plans are approved. […] Our focus also is for reunification because we do not expect OFWs to stay abroad for long”[1]. He added that the foundation also educates 100 individuals per year in its financial literacy program.

Additionally, Metrobank Group recently donated PHP 20 million (USD 456,000) for two development projects. Three quarters of this amount will be used for a housing project, the beneficiaries of which will be victims of the devastation caused by Typhoon Haiyan (locally known as Typhoon Yonalanda) in the provinces of Capiz and Iloilo in November 2013. The project involves the construction of 100 houses and will be administered by the Gawad Kalinga Community Development Foundation, a Philippines-based community development movement, and Federal Land Inc., a Philippines-based residential and commercial property developer. The remaining PHP 5 million (USD 114,000) is directed toward social development projects, including academic scholarships and livelihood assistance programs administered by 40 development organizations in the country.

The Metrobank Group reported total assets of PHP 958 billion (USD 21.8 billion) as of December 31, 2011. The Metrobank Foundation reported consolidated total assets of PHP 2.6 billion (USD 60 million) as of December 31, 2012. ASKI reported total assets of USD 47.1 million, a gross loan portfolio of USD 35.7 million, 82,000 active borrowers, deposits of USD 5.8 million, 95,000 depositors, return on assets (ROA) of 10.52 percent, and return on equity (ROE) of 65.20 percent as of 2012.

By Alíz Crowley, Research Associate

About the Metropolitan Bank and Trust Company (Metrobank Group)

The Metropolitan Bank and Trust Company (Metrobank Group) is a financial conglomerate based in the Philippines. The company was established in 1962 to provide financial services to the Filipino-Chinese community of the Philippines. As of 2014, it offers a range of investment and commercial banking services. It has a domestic network of 860 branches and an international network of 31 branches, representative offices and subsidiaries. The group’s charitable organization, the Metrobank Foundation was established in 1979 with the aim of implementing community and social development projects in Asia. Metrobank Group reported total assets of PHP 958 billion (USD 21.8 billion) as of December 31, 2011.

About the Metrobank Foundation

The Metrobank Foundation is an arm of the Metrobank Group, a financial conglomerate based in the Philippines. The Metrobank Foundation was established in 1979 and supports development projects in education, visual arts and healthcare in several countries in Asia. The organization’s main programs include the following: “Metrobank Art and Design Excellence,” “Search for Outstanding Teachers,” “College Scholarship Program,” “Math Challenge,” “The Outstanding Philippine Soldiers,” and “The Country’s Outstanding Policemen in Service.” The foundation is also the majority owner of the Manila Doctors Hospital (MDH), a healthcare facility located in the capital city of the Philippines. The foundation reported consolidated total assets of PHP 2.6 billion (USD 60 million) as of December 31, 2012.

About Alalay Sa Kaunlaran, Inc. (ASKI)

Alalay Sa Kaunlaran, Inc. (ASKI) is a non-stock, nonprofit organization operating primarily in the northeastern portion of the Philippine island of Luzon. ASKI was established in 1987 with the goal of alleviating poverty and promoting socioeconomic development through client-focused financial and non-financial services anchored on Christian principles. According to the US-based nonprofit Microfinance Information Exchange (MIX), ASKI reported total assets of USD 47.1 million, a gross loan portfolio of USD 35.7 million, 82,000 active borrowers, deposits of USD 5.8 million, 95,000 depositors, return on assets (ROA) of 10.52 percent, and return on equity (ROE) of 65.20 percent as of 2012.

Sources and Additional Resources

[1] Business Mirror, Metrobank Foundation eyes microfinance project expansion

[2] Metrobank Foundation, About the Metrobank Foundation, Inc.

[3] Metrobank Foundation, Publications

[4] Metrobank, Business Profile

[5] Metrobank, SEC 17-A Financial Statements 2011

MicroCapital, May 15, 2014, Philippines’ Government Announces $46m Fund to Support Microentrepreneurs Affected by Typhoon Haiyan (Yolanda)

MicroCapital, November 16, 2012, Alalay Sa Kaunlaran Incorporated (ASKI) of the Philippines Takes $127k European Microfinance Award for Innovation in Food Security

MicroCapital, October 21, 2012, responsAbility Social Investments Loans $8m to Prasac of Cambodia, $1m to ASKI of the Philippines

MicroCapital Universe Profile:  Metropolitan Bank and Trust Company (Metrobank Group)

MicroCapital Universe Profile:  Metrobank Foundation

MicroCapital Universe Profile: Alalay Sa Kaunlaran, Inc. (ASKI)

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