Dear fellow shareholders,

At the end of 2023, we approached 2024 with a sense of hope and optimism. Despite the multiple new economic, social, environmental, and geopolitical challenges at that time, we remained confident about the future, and anchored that hope on a fast-growing economy buoyed by resilient consumption and investment spending. Metrobank, backed by a formidable balance sheet, strong liquidity and capital structure, stood ready to support the financial needs of our customers.

As we now reflect on 2024, we see that it was the year when the Philippine economy managed to pull through the pressures of prolonged global political tensions and extreme weather conditions, which resulted in food supply bottlenecks. Inflation eased from 6.0% in 2023 to 3.2% in 2024, prompting the Bangko Sentral ng Pilipinas (BSP) to trim key policy rates by 75 basis points to 5.75%. Consumption and investment became the drivers of economic activity in the second half. The Philippines’ real gross domestic product (GDP) rose by 5.6% in 2024, still among the fastest in the ASEAN region.

In the midst of the challenges of 2024, Metrobank likewise stayed resilient, achieving another record net income of PHP48.1 billion, a 14.0% increase year-on-year. We saw a robust 17.0% expansion in our total loans, outpacing industry’s 12.5% growth. Bolstered by our strong balance sheet, our constant engagement with our corporate clients kept us well positioned to address their requirements as they resumed their business expansion plans. With our strong market share in auto and credit cards, we continued to leverage on robust discretionary spending trends. Despite loan growth outperformance, our asset quality notably improved as the ratio of non-performing loans (NPL) declined to 1.4%. Even as we trimmed our provisions for the year, our NPL cover remained high at 163.5%, a substantial buffer against asset quality risks.

POISED FOR GROWTH

As the Philippines enters the early stage of its demographic transition, with the working age population surpassing dependents, the country is facing a unique opportunity to accelerate its growth momentum. We are strategically positioning the Bank to capitalize on these demographic dividend opportunities. As investment in infrastructure is an important catalyst in realizing this potential, our high capitalization enables us to further expand our support to our commercial customers who are engaged in private and public projects to fill the infrastructure gap. We are seeing more opportunities in financing renewable energy projects in the country’s bid to achieve energy sufficiency in a sustainable manner. The infrastructure build-up and improvement in the security situation could likewise benefit the tourism sector.

Meanwhile, a steady stream of remittances from Overseas Filipino Workers in diverse locations continue to support household income. There are also emerging opportunities for business process outsourcing (BPO) players to diversify into other industries and with clients in other geographies outside North America. It is thus imperative for us to expand our consumer business to leverage on prospects of accelerating per capita income growth as the demographic dividend takes root.

To achieve our growth aspiration, we are committed to delivering a banking experience that is secure, seamless, and customer-focused. In today’s rapidly evolving digital landscape, we continue to transform the way we serve our customers — whether individuals, high-net-worth clients, or corporate partners — by integrating technology, artificial intelligence, and human-centered design into every aspect of the banking experience.

Our key initiatives include: (1) enhancing branch digitalization, that will allow our middle and back office to improve their efficiency levels; (2) expanding our digital self service capabilities on all our digital channels; (3) building omni-channel experiences through human-centered design such as customer journey mapping; and, (4) driving innovation with AI Solutions in fraud detection and risk management, advanced data analytics, and marketing and communications.

BANKING WITH PURPOSE

Beyond providing financial services to our customers, we at Metrobank recognize that our role extends to creating a more prosperous and sustainable future for our stakeholders. Every initiative we undertake reflects our commitment to ensuring that our actions today contribute to a more resilient tomorrow.

With the Philippines being one of the most climate- vulnerable countries, Metrobank’s commitment to a sustainable and resilient future remains strongly guided by our aspiration to support the transition towards a low-carbon economy. We are accelerating the transition to clean energy. Through strategic partnerships with our valued partners, we support projects that foster environmental resilience and energy efficiency.

Advancing Sustainable Finance: We strengthened engagements, guided by our Sustainable Finance Framework, which outlines how we integrate environmental and social risk assessments into our lending and investment decisions. By embedding sustainability into our financial practices, we uphold our responsibility to drive long-term economic adaptability and stability.

Green and ESG Finance Initiatives: Our sustainable finance initiatives reflect our belief that financial institutions must actively support the transition to a sustainable future. We facilitated green loans with industry leaders, directly funding clean energy projects that contribute to lowering carbon emissions and promoting renewable energy adoption. Furthermore, our involvement in the issuance of ESG-themed bonds, such as Ayala Land's Sustainability-Linked Bond (SLB) and Maynilad's Blue Bond, underscores our commitment to driving capital toward responsible, forward- thinking projects that address the most pressing sustainability challenges.

INCLUSIVE GROWTH AND COMMUNITY EMPOWERMENT

In 2024, we extended PHP34.4 billion in loans to Micro, Small and Medium Enterprises (MSMEs)— businesses that are the backbone of our economy. By providing access to capital, we help entrepreneurs expand, innovate, and generate employment opportunities that uplift entire communities.

Financial literacy is key to sustainable development, equipping individuals with the knowledge to make informed decisions. In 2024, we conducted over 600 financial education initiatives, reaching more than 58,000 individuals. From first-time investors using Earnest to high-net-worth clients accessing Wealth Insights, we continue to promote financial empowerment.

Our extensive branch network and digital channels ensure that financial services are accessible to all. In 2024, our remittance network processed over USD10.0 billion, accentuating the vital role of remittances in supporting Filipino families and businesses.

Our commitment to corporate social responsibility (CSR) is further grounded through the works of Metrobank Foundation, Inc. (MBFI) and the Purple Hearts Club (PHC). We believe that businesses thrive when communities prosper, and our CSR initiatives are designed to create lasting, meaningful change. MBFI, our corporate citizenship arm, strategically invests in education, health, community development, and disaster relief, ensuring that our contributions lead to measurable improvements in people's lives. Meanwhile, PHC, an entirely employee- led volunteer group, fosters a culture of service by mobilizing chapter-initiated community projects. In 2024, our collective efforts amounted to over PHP155.9 million in program expenditures, grants, and employee donations.

MBFI combined direct program implementation with strategic grants and partnerships, ensuring alignment with the United Nations Sustainable Development Goals (SDGs). Through targeted initiatives, we improved sanitation for over 2,000 students, enhancing health and well-being in underserved schools. Our disaster resilience programs focused on proactive prevention and mitigation, equipping vulnerable communities with the tools needed to withstand future challenges. Meanwhile, we also empowered 82 organizations to celebrate and support 339,000 teachers nationwide during the National Teachers' month, reinforcing our commitment to education as a cornerstone of the country's progress. Beyond education, we collaborated with organizations driving food security solutions and advancing livelihood programs that equip individuals with entrepreneurial skills and financial literacy, fostering self-sufficiency and economic empowerment.

Our focus is clear. As a catalyst for sustainable growth, we are creating more opportunities for Filipinos and delivering value through an inclusive financial system that benefits our clients and shareholders. As we expand every segment of our business, we aim to be a more relevant partner, supporting the growth of local businesses and communities, and continue making a meaningful impact on the nation.

On behalf of the Board of Directors, our dedicated leadership team, and hardworking employees, we express our gratitude to our stakeholders, partners, and customers for their unwavering support. We are excited about the opportunities that lie ahead and, together, we are confident in our shared success.

ARTHUR TY Chairman

The year 2024 was fraught with geopolitical tension, an uncertain economic landscape and climate change, yet the Philippine economy displayed its resilience in navigating through these challenges. The economy expanded by 5.6% for the year, still among the fastest growing economies in the ASEAN region.

DELIVERING RECORD PROFITS

Metrobank likewise demonstrated its strength by posting another year of record profits, thanks to our robust asset expansion and continued focus on maintaining healthy asset quality. Our net income reached PHP48.1 billion in 2024, 14.0% higher than in 2023. Our Return on Equity (ROE) sustained its upward trend, attaining 13.0% compared to 12.5% recorded in 2023.

The Bank’s net interest income rose 8.7% to PHP114.1 billion, driven by gross loan expansion of 17.0%, outpacing industry’s 12.5% growth in 2024. Commercial loans surged by 17.7% year-on- year, as corporates resumed capital spending and replenished inventories. On the consumer front, loans increased by 14.4% on the back of an 18.6% rise in net credit card receivables while auto loan growth continues to be robust, increasing 18.2% year-on-year.

Total deposits rose by 8.0% to PHP2.6 trillion, of which low-cost Current and Savings Accounts (CASA) accounted for 57.8% of the total deposits.

Our fee and trust income edged up to PHP 18.1 billion supported by growth in the consumer business. We also generated significant gains in combined trading and foreign exchange, amounting to PHP5.6 billion—a 39% year-on-year improvement driven by strong customer flows.

We remained prudent despite the robust expansion of our loan portfolio as non-performing loans (NPLs) ratio further eased to 1.43% from 1.69% in 2023. This has allowed us to reduce our provisions by 29.2% year-on-year. Nonetheless, our NPL cover of 163.5% is among highest in the industry, providing a substantial cushion against asset quality risks.

Our total consolidated assets stood at PHP3.5 trillion, the second largest private universal bank in the country in terms of asset size. Total equity reached PHP385.5 billion.

We kept our balance sheet strong with Capital Adequacy Ratio (CAR) at 16.7% and Common Equity Tier 1 (CET1) ratio at 15.9%, all well above the BSP’s minimum regulatory requirements. Meanwhile, our Liquidity Coverage Ratio (LCR) was also healthy at 256.1%.

As we sustained our growth trajectory and high capital ratios, our Board of Directors approved again a total cash dividend of PHP5.0 per share for the year, equivalent to PHP22.5 billion, giving back to our shareholders close to half of our earnings in 2024.

Our fortress balance sheet continues to be acknowledged by top financial publications. The Asian Banker named us as the country’s Strongest Bank for the fourth consecutive year. The same publication also cited Metrobank as the Most Recommended Retail Bank in the Philippines based on feedback from over 12,000 customers across Asia. We were also honored as the Best Bank for Ultra High-Net-Worth Filipinos at the Euromoney Global Private Banking Awards 2024. Euromoney also recognized our philanthropic efforts through the Metrobank Foundation and named Metrobank the Best Bank for Corporate Social Responsibility (CSR).

The solid performance and strategic initiatives undertaken by our major subsidiaries and affiliates contributed to Metrobank’s record income in 2024.

Our thrift-banking arm, Philippine Savings Bank (PSBank), posted an all-time high net income of PHP5.2 billion, a 15.0% increase from PHP4.5 billion in 2023, with ROE improving to 12.4%. The double- digit loan growth, disciplined expense management and improvement in asset quality fueled PSBank’s strong performance.

Solidifying its leadership in investment banking, First Metro Investments Corporation (FMIC) completed 14 successful transactions, including leading Maynilad Water Services’ PHP15.0 billion Blue Bond—the country’s first SEC-registered Blue Bond—and Ayala Land’s PHP14.0 billion Sustainability-Linked Bonds.

AXA Philippines, which celebrated its 25 years in the Philippines, introduced innovative products such as AXA Health Max Elite, which covers 150+ critical illnesses, and AXA Secure Future, a 7-pay plan with guaranteed benefits, further enhancing the financial security of our customers.

Meanwhile, ORIX METRO Leasing and Finance Corporation (OMLF) posted a net income of PHP1.1 billion, through effective cost management, lower NPL ratio and initiatives to offer a broad range of business solutions to its client base. OMLF through its subsidiary, ORIX Rental Corporation (ORC), expanded its Electric Vehicle Full Service operating lease program, making it a front-runner in providing eco-friendly solutions. Our regional expansion efforts, particularly in underserved areas in Mindanao, have unlocked new growth opportunities.

CREATING A SUSTAINABLE PARTNERSHIP WITH OUR CUSTOMERS

Our hard work in 2024 has kept us on track with our medium-term growth and profitability targets. As global and domestic uncertainties continue to persist, the path will again be challenging this year. Our strong capitalization and healthy portfolio continue to give us confidence in our ability to navigate the evolving economic landscape. At the same time, we have built our capacity with higher headcount, and a well-trained workforce, equipped with the right products and support that will allow them to be an effective partner to our clients. On the retail front, we are continuing to invest in our digital channels to make it easy for our customers to transact with us, wherever they may be, and offering select products that are most useful to them. True to our brand promise: “You’re in Good Hands with Metrobank,” we intend to pursue our expansion strategies in a deliberate and safe manner.

As the nation’s second largest private universal bank, we drive progress by creating platforms for sustainable and inclusive growth in every market we serve. To be able to do so, we continue to be empowered by the trust and confidence of our clients and partners, the talent and commitment of every Metrobanker and the guidance and support of our Board of Directors. We sincerely thank you for inspiring us in our pursuit to make banking more meaningful.

FABIAN DEE President