Untitled

COVER SHEET
2 0 5 7 3
SEC Registration Number
ME T R O P O L I T A N B A N K & T R U S T C O MP A N Y
A N D S U B S I D I A R I E S
(Company’s Full Name)
Me t r o b a n k P l a z a , S e n . G i l P u y a t
A v e n u e , U r d a n e t a V i l l a g e , Ma k a t i
C i t y , Me t r o Ma n i l a
(Business Address: No. Street City/Town/Province)
Renato K. De Borja, Jr. 8898-8805

(Contact Person) (Company Telephone Number)
1 2 3 1 1 7 - Q
Month Day (Form Type) Month Day
(Fiscal Year) (Annual Meeting)
NONE
(Secondary License Type, If Applicable)
Corporate Finance Department

Dept. Requiring this Doc. Amended Articles Number/Section
Total Amount of Borrowings

As of 03.31.2021
3,002
Total No. of Stockholders Domestic Foreign
To be accomplished by SEC Personnel concerned
File Number LCU
Document ID Cashier
STAMPS
Remarks: Please use BLACK ink for scanning purposes.
SEC Number 20573
File Number______
METROPOLITAN BANK & TRUST COMPANY

(Company’s Full Name)
Metrobank Plaza, Sen. Gil Puyat Avenue, Urdaneta Village, Makati City, Metro Manila
(Company’s Address)
8898-8805
(Telephone Number)
December 31
(Fiscal year ending)
17-Q
(Form Type)
(Amendment Designation, if applicable)
March 31, 2021

(Period Ended Date)
None
(Secondary License Type and File Number)
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER
1. For the quarterly period ended : March 31, 2021
2. Commission Identification Number : 20573
3. BIR Tax Identification No. : 000-477-863
4. Exact name of issuer as specified in its charter : METROPOLITAN BANK & TRUST COMPANY
5. Province, country or other jurisdiction of

incorporation or organization : Metro Manila, Philippines
6. Industry Classification Code : (SEC Use Only)
7. Address of issuer’s principal office : Metrobank Plaza, Sen. Gil Puyat Avenue, Urdaneta
Village, Makati City, Metro Manila
8. Issuer's telephone number, including area code : (632) 8898-8805
9. Former name, former address and former fiscal year, if changed since last report: N/A
10. Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the RSA
No. of Shares of Common Amount of Debt Outstanding

Title of Each Class Stock Outstanding (Unpaid Subscriptions)
Common Shares 4,497,415,555 shares None
11. Are any or all of the securities listed on a Stock Exchange?
Yes [ x ] No [ ]
Stock Exchange : Philippine Stock Exchange

Class of Securities : Common Shares
12. Indicate by check mark whether the registrant:
a. Has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17 thereunder and
Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of the Corporation
Code of the Philippines, during the preceding twelve (12) months (or for such shorter period the
registrant was required to file such reports)
Yes [ x ] No [ ]
b. Has been subject to such filing requirements for the past 90 days.
Yes [ x ] No [ ]
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Attached are the following:
Interim Condensed Consolidated Statements of Financial Position - Annex 1

Interim Condensed Consolidated Statements of Income - Annex 2 (page 1 of 2)
Interim Condensed Consolidated Statements of Comprehensive Income - Annex 2 (page 2 of 2)
Interim Condensed Consolidated Statements of Changes in Equity - Annex 3
Interim Condensed Consolidated Statements of Cash Flows - Annex 4
General Notes to Interim Condensed Consolidated Financial Statements - Annex 5
Financial Indicators - Annex 6
Item 2. Management’s Discussion and Analysis of Consolidated Financial

Position and Results of Operations - Annex 7
PART II - OTHER INFORMATION
I. Control of Registrant
The following stockholders own more than 5% of the total outstanding number of shares issued as of
March 31, 2021:
TOTAL PERCENT TO
NAME OF STOCKHOLDER NUMBER OF TOTAL NUMBER OF
SHARES HELD SHARES ISSUED
GT Capital Holdings, Inc. a 1,670,611,010 37.15%
PCD Nominee Corporation (Filipino)* b 1,117,464,997 24.85%
PCD Nominee Corporation (Non-Filipino)* 960,996,059 21.37%
* There is no participant of PCD who is a beneficial owner of more than 5% of the total common shares
issued by the Registrant.
a. Inclusive of 35,482,859 shares lodged with PCD Nominee Corp.
b. Net of 35,482,859 shares owned by GT Capital Holdings, Inc.
As of March 31, 2021, public ownership on the Bank was at 48.16%. Out of the total shares issued,
21.40% represents foreign ownership.
II. Pending Legal Proceedings
As of March 31, 2021, several suits and claims relating to the Group’s lending operations and labor-related
cases remain unsettled. In the opinion of management, these suits and claims, if decided adversely, will not
involve sums having a material effect on the Group’s financial statements.
III. Board Resolutions
There is no material disclosure that have not been reported under SEC Form 17-C during the period covered
by this report.
AND SUBSIDIARIES
Interim Condensed Consolidated Financial Statements

As of March 31, 2021 (Unaudited) and December 31, 2020 (Audited)
and for the quarters ended March 31, 2021 and 2020 (Unaudited)
ANNEX 1
METROPOLITAN BANK & TRUST COMPANY AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(In Millions)
(Unaudited) (Audited)
March 31, December 31,
2021 2020
ASSETS
Cash and Other Cash Items ₱ 29,233 ₱ 38,469

Due from Bangko Sentral ng Pilipinas (BSP) 297,192 304,906
Due from Other Banks 39,346 38,233
Interbank Loans Receivable and Securities Purchased
Under Resale Agreements (SPURA) (Note 13) 61,915 79,394
Investment Securities at
Fair Value Through Profit or Loss (FVTPL) 51,677 77,551
Fair Value Through Other Comprehensive Income (FVOCI) (Note 7) 639,238 569,445
Amortized Cost (Note 7) 24,154 23,293
Loans and Receivables 1,157,934 1,252,929
Property and Equipment 25,381 24,617
Investments in Associates and a Joint Venture 6,149 6,248
Goodwill 5,199 5,199
Investment Properties 7,547 7,667
Deferred Tax Assets 12,713 14,028
Other Assets 14,788 13,184
₱ 2,372,466 ₱ 2,455,163
LIABILITIES AND EQUITY
LIABILITIES
Deposit Liabilities
Demand ₱ 510,116 ₱ 515,378
Savings 797,158 795,979
Time 395,375 450,103
Long-Term Negotiable Certificates (Note 6) 35,759 35,755
1,738,408 1,797,215
Bills Payable and Securities Sold Under Repurchase
Agreements (SSURA) (Note 7) 134,530 139,614
Derivative Liabilities 10,267 13,465
Manager's Checks and Demand Drafts Outstanding 5,492 6,024
Income Taxes Payable 2,291 2,711
Accrued Interest and Other Expenses 8,941 9,149
Bonds Payable (Note 8) 91,736 91,397
Subordinated Debts (Note 9) 1,167 1,167
Non-equity Non-controlling Interest 8,567 8,315
Other Liabilities 55,450 52,931
2,056,849 2,121,988
EQUITY
Equity Attributable to Equity Holders of the Parent Company 306,581 324,204
Non-controlling Interest 9,036 8,971
315,617 333,175
₱ 2,372,466 ₱ 2,455,163
ANNEX 2
page 1 of 2
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Millions, Except Earnings Per Share)
(Unaudited)
Quarters Ended March 31
2021 2020
INTEREST INCOME ON
Loans and receivables P 17,285 P 23,333
Trading and investment securities 4,157 5,322
Deposits with banks and others 803 337
22,245 28,992
INTEREST AND FINANCE CHARGES
Deposit liabilities 1,401 4,232
Bills payable and SSURA, bonds payable, subordinated debts
and others 1,808 3,343
3,209 7,575
NET INTEREST INCOME 19,036 21,417
PROVISION FOR CREDIT AND IMPAIRMENT LOSSES 2,509 5,040
NET INTEREST INCOME AFTER PROVISION FOR
CREDIT AND IMPAIRMENT LOSSES 16,527 16,377
OTHER INCOME
Service charges, fees and commissions 3,330 3,341
Trading, securities and foreign exchange gains - net 2,887 1,378
Miscellaneous 1,727 1,499
7,944 6,218
OTHER EXPENSES
Compensation and fringe benefits 6,388 5,903
Occupancy and equipment-related cost 503 470
Miscellaneous 7,814 8,132
14,705 14,505
INCOME BEFORE INCOME TAX 9,766 8,090
PROVISION FOR INCOME TAX 1,932 1,779
NET INCOME P 7,834 P 6,311
Attributable to :
Equity holders of the Parent Company P 7,780 P 6,122
Non-controlling interest 54 189
P 7,834 P 6,311
Basic/Diluted Earnings Per Share Attributable to

Equity Holders of the Parent Company (Note 14 of Annex 5) P 1.73 P 1.36
ANNEX 2
page 2 of 2

INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
( In millions )

2021 2020
NET INCOME P 7,834 P 6,311
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX
Items that may not be reclassified to profit or loss:

Change in net unrealized gain on equity securities at FVOCI (14) (111)
Change in remeasurement loss on retirement plan (274) (987)
(288) (1,098)
Items that may be reclassified to profit or loss:

Change in net unrealized gain on investment in debt securities
at FVOCI (7,053) (5,263)
Change in equity in other comprehensive loss of investees (138) (226)
Translation adjustment and others 118 614
(7,073) (4,875)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD P 473 P 338
Attributable to:
Equity holders of the Parent Company P 371 P 126
Non-controlling interest 102 212
P 473 P 338
ANNEX 3
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the Quarters Ended March 31, 2021 and 2020

(In Million Pesos, Except Par Value and Number of Shares)
(Unaudited)
Net
Unrealized
Capital Gain (Loss) Equity in Other
Paid in on Investment Comprehensive Remeasurement Translation Non-
Common Excess of Surplus Treasury Securities at Income (Loss) Losses on Adjustment Controlling
Stock* Par Value Surplus Reserves Stocks FVOCI of Investees Retirement Plan and Others TOTAL Interest Total Equity
Balance, January 1, 2021 P89,948 P85,252 P153,282 P2,260 (P65) P7,611 (P22) (P4,778) (P9,284) P324,204 P8,971 P333,175
Total comprehensive income (loss) for the period - - 7,780 - - (7,068) (137) (278) 74 371 102 473
Transfer to surplus reserves - - (41) 41 - - - - - - - -
Cash dividends - - (17,990) - - - - - - (17,990) (37) (18,027)
Acquisition of Parent Company shares held by a mutual
fund subsidiary - - - - (4) - - - - (4) - (4)
Balance, March 31, 2021 P89,948 P85,252 P143,031 P2,301 (P69) P543 (P159) (P5,056) (P9,210) P306,581 P9,036 P315,617
Balance, January 1, 2020 P89,948 P85,252 P144,154 P2,098 (P72) P2,629 P345 (P5,531) (P9,269) P309,554 P8,937 P318,491
Total comprehensive income (loss) for the period - - 6,122 - - (5,370) (224) (974) 572 126 212 338
Transfer to surplus reserves - - (34) 34 - - - - - - - -
Cash dividends - - (4,497) - - - - - - (4,497) (33) (4,530)
Acquisition of Parent Company shares held by a mutual
fund subsidiary - - - - (8) - - - - (8) - (8)
Acquisition of non-controlling interest - - - - - - - - (633) (633) - (633)
Balance, March 31, 2020 P89,948 P85,252 P145,745 P2,132 (P80) (P2,741) P121 (P6,505) (P9,330) P304,542 P9,116 P313,658
ANNEX 4
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
(Unaudited)
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income tax P 9,766 P 8,090
Adjustments for :
Provision for credit and impairment losses 2,509 5,040
Trading and securities gain on investment securities (2,205) (1,543)
Depreciation and amortization 1,247 1,195
Share in net income of associates and a joint venture (69) (117)
Profit from assets sold (120) (64)
Unrealized market valuation loss on financial assets and
liabilities at FVTPL 214 1,921
Gain on initial recognition of investment properties and chattel
properties acquired in foreclosure (58) (60)
Amortization of software cost 212 180
Amortization of discount on subordinated debt and bonds payable 90 73
Dividends (54) (38)
Changes in operating assets and liabilities:
Decrease (increase) in :
Investment securities at FVTPL 22,462 (10,880)
Loans and receivables 92,294 43,330
Other assets (2,129) (5,384)
Increase (decrease) in:
Deposit liabilities (58,807) (585)
Bills payable-deposit substitutes (3,222) (46,813)
Manager's checks and demand drafts outstanding (532) 1,981
Accrued interest and other expenses (208) (2,708)
Non-equity non-controlling interest 252 (1,131)
Other liabilities 2,352 (8,352)
Net cash provided by (used in) operations 63,994 (15,865)
Dividends received 17 38
Income taxes paid (1,174) (1,236)
Net cash provided by (used in) operating activities 62,837 (17,063)
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Investment securities at FVOCI (201,868) (792,581)
Investments securities at amortized cost (4,109) (496)
Property and equipment (1,137) (991)
Proceeds from sale of:
Investment securities at FVOCI 127,391 737,038
Property and equipment 133 125
Investment properties 339 239
Decrease (increase) in interbank loans receivable and SPURA 15,204 (28)
Proceeds from:
Maturity of investment securities at amortized cost 3,310 15,026
Net cash used in investing activities (60,737) (41,668)
CASH FLOWS FROM FINANCING ACTIVITIES
Settlements of bills payable (255,070) (1,099,110)
Availments of bills payable and SSURA 253,208 1,077,227
Settlements of bonds payable - 4,608
Cash dividends paid (18,027) (4,530)
Payment of principal portion of lease liabilities (373) (460)
Acquisition of Parent Company shares by a mutual fund subsidiariy (4) (8)
Net cash used in financing activities (20,266) (22,273)
NET DECREASE IN CASH AND CASH EQUIVALENTS (18,166) (81,004)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
Cash and other cash items 38,469 32,956
Due from BSP 304,906 219,994
Due from other banks 38,357 54,772
Interbank loans receivable and SPURA 46,669 67,313
428,401 375,035
CASH AND CASH EQUIVALENTS AT END OF PERIOD
Cash and other cash items 29,233 37,375
Due from BSP 297,192 152,960
Due from other banks 39,416 54,530
Interbank loans receivable and SPURA (Note 13) 44,394 49,166
P 410,235 P 294,031
ANNEX 5

GENERAL NOTES TO INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
Metropolitan Bank & Trust Company (“Metrobank,” “the Bank” or “the Parent Company”) is a universal
bank incorporated in the Philippines on April 6, 1962. The Securities and Exchange Commission (SEC)
approved the renewal of its Certification of Incorporation on November 19, 2007. The Bank’s shares were
listed with the Philippine Stock Exchange, Inc. (PSE), on February 26, 1981, as approved by the SEC in
November 1980. It has a universal banking license granted by the Bangko Sentral ng Pilipinas (BSP) on
August 21, 1981.
The Bank and its subsidiaries (the Group) are engaged in all aspects of banking, financing, leasing, real
estate and stock brokering through a network of over 2,000 local and international branches, subsidiaries,
representative offices, remittance correspondents and agencies. The Bank, which is the ultimate parent of the
Group, provides services such as deposit products, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange, trading and remittances, credit card and trust services. Its principal
place of business is at Metrobank Plaza, Sen. Gil Puyat Avenue, Urdaneta Village, Makati City, Metro
Manila, Philippines.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying unaudited interim condensed consolidated financial statements have been prepared in
accordance with Philippine Accounting Standard (PAS) 34, Interim Financial Reporting. Accordingly, the
unaudited interim condensed consolidated financial statements do not include all of the information and
disclosures required in the annual audited financial statements and should be read in conjunction with the
Groups’ annual audited financial statements as at December 31, 2020.
The unaudited interim condensed financial statements have been prepared on a historical cost basis except
for financial assets and financial liabilities at fair value through profit or loss (FVTPL) and fair value
through other comprehensive income (FVOCI) that have been measured at fair value.
The unaudited interim condensed consolidated financial statements are presented in Philippine Peso (PHP),
the Bank’s functional currency, and all values are rounded to the nearest million pesos (P
=000,000) except
when otherwise indicated.
Each entity in the Group determines its own functional currency and items included in the financial
statements of each entity are measured using that functional currency. The respective functional currencies
of the subsidiaries are presented under Basis of Consolidation.
Presentation of Financial Statements

Financial assets and financial liabilities are offset and the net amount reported in the statement of financial
position only when there is a legally enforceable right to offset the recognized amounts and there is an
intention to settle on a net basis, or to realize the assets and settle the liability simultaneously. This is not
generally the case with master netting agreements, and the related assets and liabilities are presented gross in
the statement of financial position. Income and expense are not offset in the statement of income unless
required or permitted by any accounting standard or interpretation, and as specifically disclosed in the
accounting policies of the Group.
-2-
Basis of Consolidation
The unaudited interim condensed consolidated financial statements include the financial statements of the
Bank and of its subsidiaries and are prepared for the same reporting period as the Bank using consistent
accounting policies.
The following are the wholly and majority-owned foreign and domestic subsidiaries of the Bank as of
March 31, 2021:
Effective
Percentage
of Country of Functional
Subsidiary Ownership Incorporation Currency
Financial Markets:
Domestic:
First Metro Investment Corporation (FMIC) and Subsidiaries 99.27 Philippines PHP
Philippine Savings Bank (PSBank) 88.38 Philippines PHP
ORIX Metro Leasing and Finance Corporation (ORIX Metro)
and Subsidiaries 59.85 Philippines PHP
Foreign:
Metropolitan Bank (China) Ltd (MBCL) 100.00 China Chinese Yuan
United States
Metropolitan Bank (Bahamas) Limited (Metrobank Bahamas)** 100.00 The Bahamas Dollar (USD)
First Metro International Investment Company Limited (FMIIC) Hong Kong
and Subsidiary 100.00 Hong Kong Dollar (HKD)
Remittances:
Metro Remittance (Hong Kong) Limited 100.00 Hong Kong HKD
Singapore
Metro Remittance (Singapore) Pte. Ltd. (MRSPL) 100.00 Singapore Dollar
United Great Britain
Metro Remittance (UK) Limited (MR UK) 100.00 Kingdom Pound
United States of
Metro Remittance (USA), Inc. (MR USA) 100.00 America (USA) USD
Metro Remittance (Japan) Co., Ltd. (MR Japan) 100.00 Japan Japanese Yen
Metro Remittance (Italia), S.p.A. (MR Italia) *** 100.00 Italy Euro
Real Estate:
Circa 2000 Homes, Inc. * 100.00 Philippines PHP
Others:
Philbancor Venture Capital Corporation * 60.00 Philippines PHP
MBTC Technology, Inc. ** 100.00 Philippines PHP
* In process of dissolution.
** In process of liquidation
*** Fully liquidated in January 2021
Investment in MR Italia
As certified by the Camera di Commercio Roma, MR Italia’s registration in Italy has been cancelled effective
May 14, 2020. The company was fully liquidated in January 2021.
Investment in FMIC
In line with its transformation initiative, the BOD of FMIC approved the proposal to return its quasi banking
license with the BSP on November 24, 2020. This was approved by the BSP on March 25, 2021.
All significant intra-group balances, transactions, income and expenses and profits and losses resulting from
intra-group transactions are eliminated in full at consolidation. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group. Control is achieved where the Group is exposed, or has
rights, to variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee. Consolidation of subsidiaries ceases when control is transferred out of
the Group or the Parent Company. The results of subsidiaries acquired or disposed of during the period, if
any, are included in the unaudited interim condensed consolidated statement of income and unaudited interim
condensed consolidated statement of comprehensive income from the date of acquisition or up to the date of
disposal, as appropriate.
-3-
Changes in the Parent Company’s ownership interest in a subsidiary that do not result in a loss of control are
accounted for within equity. Any difference between the amount by which the non-controlling interests are
adjusted and the fair value of the consideration paid (or to be paid) or received is recognized directly in
equity included as part of “Translation adjustment and others” and attributed to the owners of the Parent
Company.
When a change in ownership interest in a subsidiary occurs which results in a loss of control over the
subsidiary, the Parent Company: (a) derecognizes the assets (including goodwill) and liabilities of the
subsidiary; (b) derecognizes the carrying amount of any non-controlling interest; (c) derecognizes the related
other comprehensive income (OCI) recorded in equity and recycles the same to statement of income or
retained earnings; (d) recognizes the fair value of the consideration received; (e) recognizes the fair value of
any investment retained; (f) recognizes any surplus or deficit in statement of income; and (g) reclassifies the
Parent Company’s share of components’ gain (losses) previously recognized in OCI to profit or loss or
surplus, as appropriate, as would be required if the Group had directly disposed of the related assets or
liabilities.
Entity with significant influence over the Group

GT Capital Holdings, Inc. (GT Capital) holds 37.15% of the total shares of the Bank as of March 31, 2021
and December 31, 2020.
Changes in Accounting Policies

The accounting policies adopted in the preparation of the unaudited interim condensed consolidated financial
statements are consistent with those followed in the preparation of the audited annual consolidated financial
statements as of and for the year ended December 31, 2020, except for the adoption of the following
amended standards, which became effective beginning January 1, 2021.
Amendments
Amendments to PFRS 9, PFRS 7, PFRS 4 and PFRS 16, Interest Rate Benchmark Reform – Phase 2
The amendments provide the following temporary reliefs which address the financial reporting effects when
an interbank offered rate (IBOR) is replaced with an alternative nearly risk-free interest rate (RFR):
o Practical expedient for changes in the basis for determining the contractual cash flows as a result of
IBOR reform
o Relief from discontinuing hedging relationships
o Relief from the separately identifiable requirement when an RFR instrument is designated as a
hedge of a risk component
The Group shall also disclose information about:

o The nature and extent of risks to which the entity is exposed arising from financial instruments
subject to IBOR reform, and how the entity manages those risks; and
o Their progress in completing the transition to alternative benchmark rates, and how the entity is
managing that transition
As of March 31, 2021, the amended standard does not have an impact on the financial statements of the
Group
Significant Accounting Judgments and Estimates

The preparation of the financial statements in compliance with PAS 34 requires the Group to make estimates
and assumptions that affect the reported amounts of assets, liabilities, income and expenses and the
disclosures of contingent assets and contingent liabilities. Future events may occur which can cause the
assumptions used in arriving at the estimates to change. The effects of any change in estimates are reflected
in the financial statements as they become reasonably determinable. Judgments and estimates are continually
evaluated and are based on historical experience and other factors, including expectations of future events
that are believed to be reasonable under the circumstances.
-4-
Significant accounting judgments and estimates of the Group have been disclosed in the 2020 audited
financial statements.
3. Financial Risk Management
Compared with December 31, 2020, there have been no changes in the financial risk exposures that
materially affect the unaudited interim condensed consolidated financial statements of the Group as of March
31, 2021. The Group has exposures to the following risks from its use of financial instruments: (a) credit; (b)
liquidity; and (c) market risks. Related discussions below should be read in conjunction with Note 4,
Financial Risk and Capital Management, of the Group’s 2020 audited financial statements.
Risk management framework

The Board of Directors (BOD) has overall responsibility for the oversight of the Parent Company’s risk
management process. On the other hand, the risk management processes of the subsidiaries are the separate
responsibilities of their respective BOD. Supporting the BOD in this function are certain Board-level
committees such as Risk Oversight Committee (ROC), Audit Committee (AC) and senior management
committees through the Executive Committee and Asset and Liability Committee (ALCO) among others.
The ROC, which is composed primarily of independent members of the BOD, is responsible for overseeing
the Parent Company’s risk infrastructure, the adequacy and relevance of risk policies, and the compliance to
defined risk appetite and levels of exposure. The ROC is assisted in this responsibility by the Risk
Management Group (RSK). The RSK undertakes the implementation and execution of the Parent
Company’s Risk Management framework which involves the identification, assessment, control, monitoring
and reporting of risks.
The Parent Company and its subsidiaries manage their respective financial risks separately. The subsidiaries
have their own risk management processes but are structured similar to that of the Parent Company. To a
certain extent, the respective risk management programs and objectives are the same across the Group. The
risk management policies adopted by the subsidiaries and affiliates are aligned with the Parent Company’s
risk policies. To further promote compliance with PFRS and Basel III, the Parent Company created a Risk
Management Coordinating Council (RMCC) composed of risk officers of the Parent Company and its
financial institution subsidiaries.
Credit Risk
Credit risk is the risk of financial loss to the Group if a counterparty to a financial instrument fails to meet its
contractual obligations. The Group manages and controls credit risk by setting limits on the amount of risk it
is willing to accept for individual counterparties, related groups of borrowers, market segments, and industry
concentrations, and by monitoring exposures in relation to such limits, among others. The same is true for
treasury-related activities. Each business unit is responsible for the quality of its credit portfolio and for
monitoring and controlling all credit risks in its portfolio. Regular reviews and audits of business units and
credit processes are undertaken by RSK and Internal Audit Group, respectively.
Liquidity Risk
Liquidity risk is the current and prospective risk to earnings or capital arising from the inability to meet its
obligations when they become due. This may be caused by the inability to liquidate assets or to obtain
funding to meet the liquidity needs. The Group manages its liquidity risk by holding adequate stock of high-
quality liquid assets, analyzing net funding requirements over time, diversifying funding sources contingency
planning.
To measure the prospective liquidity needs, the Group uses Maximum Cumulative Outflow (MCO), a
liquidity gap tool to project short-term and long-term cash flow expectations on a business-as-usual
condition.
-5-
The MCO is generated by distributing the cash flows of the Bank’s assets, liabilities and off-balance sheet
items to time bands based on cash flow expectations such as contractual maturity, nature of the account,
behavioral patterns, projections on business strategies, and/or optionality of certain products. The
incorporation of behavioral cash flow assumptions and business projections or targets results in a dynamic
gap report that realistically captures the behavior of the products and creates a forward-looking cash flow
projection.
Cash flows from assets are considered as cash inflows, while cash flows from liabilities are considered cash
outflows. The net cash flows are determined for each given time period. If the inflows exceed the outflows,
the Group is said to have a positive liquidity gap or has excess funds for the given time bucket. Conversely, if
the outflows exceed the inflows, the Group is said to have a negative liquidity gap or has funding needs for
the given time bucket.
The MCO is monitored regularly to ensure that it remains within the set limits. The Parent Company
generates and monitors daily its MCO, while the subsidiaries generate the report at least monthly. The
liquidity profile of the Group is reported monthly to the Parent Company’s ALCO and ROC.
To supplement the business-as-usual scenario parameters reflected in the MCO report, the Group also
conducts liquidity stress testing to determine the impact of extreme factors, scenarios and/or events to the
Group’s liquidity profile. Liquidity stress testing exercise is performed quarterly on a per firm basis, and at
least annually on the Group-wide level.
Market Risk
Market risk is the possibility of loss to future earnings, fair values or future cash flows that may result from
changes in the price of a financial instrument. The value of a financial instrument may change as a result of
changes in interest rates, foreign currency exchange rates, and other market factors. Market risk originates
from holdings in foreign currencies, debt securities and derivatives transactions.
Depending on the business model for the product, i.e., whether they belong to the trading book or banking
book, the Group applies different tools and processes to manage market risk exposures. Risk limits, approved
by the BOD, are enforced to monitor and control this risk. RSK, as an independent body under the ROC,
performs daily market risk analyses to ensure compliance to policies and limits, while Treasury Group
manages the asset/liability risks arising from both banking book and trading operations in financial markets.
The ALCO, chaired by the President, manages market risks within the parameters approved by the BOD.
As part of group supervision, the Parent Company regularly coordinates with subsidiaries to monitor their
compliance to their respective risk tolerances and to ensure alignment of risk management practices. Each
subsidiary has its own risk management unit responsible for monitoring its market risk exposures. The
Parent, however, requires regular submission of market risk profiles from subsidiaries which are presented to
ALCO and ROC in both individual and consolidated forms to provide senior management and ROC a
holistic perspective and ensure alignment of strategies and risk appetite across the Group.
Market Risk - Trading Book

In measuring the potential loss in its trading portfolio, the Parent Company uses Value-at-Risk (VaR). VaR
is an estimate of the potential decline in the value of a portfolio, under normal market conditions, for a given
“confidence level” over a specified holding period. The Parent Company measures and monitors the Trading
Book VaR daily and this value is compared against the set VaR limit. Meanwhile, the Group VaR is
monitored and reported monthly.
VaR methodology assumptions and parameters

Historical Simulation (HS) is used to compute the VaR. This method assumes that market rates volatility in
the future will follow the same movement that occurred within the 260-day historical period. In calculating
VaR, a 99.00% confidence level and a one-day holding period are assumed. This means that, statistically,
within a one-day horizon, the trading losses will exceed VaR in 1 out of 100 trading days.
-6-
Like any other model, the HS method has its own limitations. To wit, it cannot predict volatility levels which
did not happen in the specified historical period. The validity of the VaR model is verified through a daily
backtesting analysis, which examines how frequently both actual and hypothetical daily losses exceed VaR.
The result of the daily backtesting analysis is reported to the ALCO and ROC monthly.
Subsidiaries with trading books perform daily mark-to-market valuation and VaR calculations for their
exposures. Risk exposures are bounded by a system of risk limits and monitoring tools to effectively manage
these risks.
The limitations of the VaR methodology are recognized by supplementing VaR limits with other position and
sensitivity limit structures and by doing stress testing analysis. These processes address potential product
concentration risks, monitor portfolio vulnerabilities and give the management an early advice if an actual
loss goes beyond what is deemed tolerable to the Group and the Parent Company, even before the VaR limit
is hit.
Stress testing is performed by the Parent Company on a quarterly basis and the results are reported to the
ALCO and, subsequently, to the ROC and BOD. On a Group-wide perspective, stress testing is done, at least
annually. The results are reported by the Parent Company’s Risk Management Group to the BOD through
ROC.
Market Risk - Banking Book

The Group has in place their own risk management system and processes to quantify and manage market
risks in the banking book. To the extent applicable, these are generally aligned with the Parent’s
framework/tools.
The Group assesses interest rate risk in the banking book using measurement tools such as Interest Rate
Repricing Gap, Earnings-at-Risk (EaR), Delta Economic Value of Equity (ΔEVE) and Sensitivity Analysis.
Interest Rate Repricing Gap is a tool that distributes rate-sensitive assets and liabilities into pre-defined tenor
buckets according to time remaining to their maturity (if fixed rate) or repricing (if floating rate). Items
lacking definitive repricing schedules (e.g., current and savings account) and items with actual maturities that
could vary from contractual maturities (e.g., securities with embedded options) are assigned to repricing
tenor buckets based on an analysis of historical patterns, past experience and/or expert judgment.
Earnings-at-Risk (EaR) measures the possible decline in the Group’s net interest income as a result of
adverse interest rate movements, given the current repricing profile. It is a tool used to evaluate the
sensitivity of the accrual portfolio to changes in interest rates in the adverse direction over the next twelve
(12) months.
EaR methodology assumptions and parameter

The Group calculates EAR using HS approach, with one-year horizon and using five years data. EaR is then
derived as the 99th percentile biggest drop in net interest income.
The Parent Company generates and monitors daily its EaR exposure while the subsidiaries generate their EaR
reports at least monthly.
The Parent Company employs the Delta EVE model to measure the overall change in the economic value of
the bank at one point. It reflects the changes in the net present value of its banking book at different interest
rate shocks and stress scenarios. ΔEVE is calculated by slotting the notional repricing cash flows arising
from rate-sensitive assets and liabilities into pre-defined tenor buckets. The present value of the net repricing
cash flows is then calculated using various interest rate scenarios prescribed by Basel as well as scenarios
internally developed by the Parent Company.
Aside from the EaR and ΔEVE, the Parent Company and its subsidiaries perform regular sensitivity and
stress testing analyses on their banking books to further broaden their forward-looking analysis. This way,
management can craft strategies to address and/or arrest probable risks, if necessary.
-7-
Foreign currency risk

Foreign exchange risk is the probability of loss to earnings or capital arising from changes in foreign
exchange rates. Foreign currency liabilities generally consist of foreign currency deposits in the Group’s
FCDU account. Foreign currency deposits are generally used to fund the Group’s foreign currency-
denominated loan and investment portfolio in the FCDU. Banks are required by the BSP to match the
foreign currency liabilities with the foreign currency assets held in FCDUs. Outside the FCDU, the Group
has additional foreign currency assets and liabilities in its foreign branch network. The Group’s policy is to
maintain foreign currency exposure within acceptable limits and within existing regulatory guidelines.
4. Fair Value Measurement
Financial Instruments
The methods and assumptions used by the Group in estimating the fair values of financial assets and financial
liabilities have been consistently applied in the unaudited interim condensed consolidated financial
statements. These are:
Cash and other cash items, due from BSP and other banks and interbank loans receivable and SPURA -
Carrying amounts approximate fair values in view of the relatively short-term maturities of these instruments.
Trading and investment securities - Fair values of debt and equity securities are generally based on quoted
market prices. Where the debt securities are not quoted or the market prices are not readily available, the
Group and the Parent Company obtained valuations from independent parties offering pricing services, used
adjusted quoted market prices of comparable investments, or applied discounted cash flow methodologies.
For equity securities that are not quoted, remeasurement to their fair values is not material to the financial
statements.
Derivative instruments - Fair values are estimated based on quoted market prices, prices provided by
independent parties, or prices derived using acceptable valuation models. The models utilize published
underlying rates (e.g interest rates, Foreign Exchange (FX) rates, Credit Default Swap (CDS) rates, FX
volatilities and spot and forward FX rates) and are implemented through validated calculation engines.
Loans and receivables - Fair values of the Group’s loans and receivables are estimated using the discounted
cash flow methodology, using current incremental lending rates for similar types of loans. Where the
instrument reprices on a quarterly basis or has a relatively short maturity, the carrying amounts approximate
fair values.
Liabilities - Fair values are estimated using the discounted cash flow methodology using the Group’s current
borrowing rate for similar borrowings with maturities consistent with those remaining for the liability being
valued, if any. The carrying amount of demand and savings deposit liabilities and other short-term liabilities
approximates fair value considering that these are either due and demandable or with short-term maturities.
The following tables summarize the carrying amounts and fair values of the financial assets and liabilities:
-8-
March 31, 2021 (Unaudited)

Carrying Total Fair
Value Level 1 Level 2 Level 3 Value
Assets Measured at Fair Value
Financial Assets
Investment securities at FVTPL
FVTPL investments
Debt securities
Treasury notes and bonds P18,188 P18,188 P- P- P18,188
Government 8,464 8,464 - - 8,464
Private 6,174 6,174 - - 6,174
Treasury bills 3,135 3,135 - - 3,135
BSP 2 2 - - 2
35,963 35,963 - - 35,963
Equity securities 5,798 5,798 - - 5,798

Derivative assets
Cross currency swaps 7,474 - 7,474 - 7,474
Currency forwards 1,383 - 1,383 - 1,383
Interest rate swaps 978 - 978 - 978
Put option 57 57 57
Call option 24 24 24
9,916 - 9,916 - 9,916
51,677 41,761 9,916 - 51,677
Investment securities at FVOCI
Debt securities
Treasury notes and bonds 355,375 355,375 - - 355,375
Government 92,798 92,798 - - 92,798
Treasury bills 90,838 90,838 - - 90,838
BSP 59,961 59,961 - - 59,961
Private 38,580 22,368 16,212 - 38,580
637,552 621,340 16,212 - 637,552
Equity securities 1,686 1,482 204 - 1,686
639,238 622,822 16,416 - 639,238
P690,915 P664,583 P26,332 P- P690,915
Assets for which Fair Values are Disclosed
Financial Assets
Investment securities at amortized cost
Government P16,353 P16,885 P315 P- P17,200
Private 7,135 2,663 4,592 - 7,255
Treasury bills 516 514 - - 514
Treasury notes and bonds 150 152 - - 152
24,154 20,214 4,907 - 25,121
Loans and receivable – net
Receivables from customers
Commercial loans 835,318 - - 830,447 830,447
Residential mortgage loans 100,337 - - 123,392 123,392
Auto loans 87,691 - - 105,790 105,790
Credit card 68,704 - - 68,704 68,704
Trade 36,848 - - 36,848 36,848
Others 12,616 - - 13,949 13,949
1,141,514 - - 1,179,130 1,179,130
Unquoted debt securities 65 - - 65 65
Sales contract receivable 65 - - 65 65
1,141,644 - - 1,179,260 1,179,260
Others assets
Residual value of leased assets 865 - - 738 738
Miscellaneous 202 - - 272 272
1,067 - - 1,010 1,010
P1,166,865 P20,214 P4,907 P1,180,270 P1,205,391
-9-

Carrying Total Fair
Liabilities Measured at Fair Value
Financial Liabilities
Derivative liabilities
Cross currency swaps P5,091 P- P5,091 P- P5,091
Interest rate swaps 4,247 - 4,247 - 4,247
Currency forwards 843 - 843 - 843
Put option 49 - 49 - 49
Call option 30 - 30 - 30
Credit default swaps/options 7 - 7 - 7
P10,267 P- P10,267 P- P10,267
Liabilities for which Fair Values are Disclosed
Deposit liabilities
Time P395,375 P- P- P396,894 P396,894
LTNCD 35,759 18,566 9,202 9,229 36,997
431,134 18,566 9,202 406,123 433,891
Bills payable and SSURA 134,530 - - 135,111 135,111
Bonds payable 91,736 78,593 - 15,245 93,838
Subordinated debts 1,167 - - 1,160 1,160
Other liabilities
Deposits on lease contracts 1,361 - - 1,187 1,187
P659,928 P97,159 P9,202 P558,826 P665,187
December 31, 2020 (Audited)

Carrying Total Fair
Assets Measured at Fair Value
Financial Assets
Investment securities at FVTPL
FVTPL investments
Debt securities
Treasury notes and bonds P35,828 P35,828 P- P- P35,828
Government 14,531 14,531 - - 14,531
Private 6,540 6,540 - - 6,540
Treasury bills 2,346 2,346 - - 2,346
BSP 2 2 - - 2
59,247 59,247 - - 59,247
Equity securities 6,458 6,458 - - 6,458
Derivative assets
Cross currency swaps 8,708 - 8,708 - 8,708
Put option 7 7 7
Call option 1 - 1 - 1
11,846 - 11,846 - 11,846
77,551 65,705 11,846 - 77,551
Investment securities at FVOCI
Debt securities
Treasury notes and bonds 342,355 342,355 - - 342,355
Treasury bills 81,497 81,497 - - 81,497
Government 76,901 76,199 702 - 76,901
Private 36,943 21,274 15,669 - 36,943
BSP 30,049 30,049 - - 30,049
567,745 551,374 16,371 - 567,745
Equity securities 1,700 1,498 202 - 1,700
569,445 552,872 16,573 - 569,445
P646,996 P618,577 P28,419 P P646,996
- 10 -

Carrying Total Fair
Assets for which Fair Values are Disclosed
Financial Assets
Investment securities at amortized cost
Government P19,134 P20,446 P322 P- P20,768
Private 3,622 2,491 1,207 - 3,698
Treasury bills 294 266 - - 266
Treasury notes and bonds 243 284 - - 284
23,293 23,487 1,529 - 25,016
Loans and receivable – net
Receivables from customers
Commercial loans 898,309 - - 891,872 891,872
Residential mortgage loans 103,216 - - 130,681 130,681
Auto loans 95,735 - - 117,075 117,075
Credit card 72,001 - - 72,001 72,001
Trade loans 36,166 - - 36,166 36,166
Others 26,478 - - 28,738 28,738
1,231,905 - - 1,276,533 1,276,533
Unquoted debt securities 65 - - 70 70
Sales contract receivable 79 - - 81 81
1,232,049 - - 1,276,684 1,276,684
Others assets 208 - - 276 276
1,255,550 23,487 1,529 1,276,960 1,301,976
Non-Financial Assets
Investment properties 7,667 - - 14,493 14,493
Residual value of leased assets 930 - - 790 790
8,597 - - 15,283 15,283
P1,264,147 P23,487 P1,529 P1,292,243 P1,317,259
Liabilities Measured at Fair Value
Financial liabilities at FVTPL
Derivative liabilities
Cross currency swaps P7,401 P- P7,401 P- P7,401
Call option 10 10 10
Put option 4 4 4
Credit default swaps 1 - 1 - 1
Non-equity non-controlling interest 8,315 - 8,315 - 8,315
P21,780 P- P21,780 P- P21,780
Liabilities for which Fair Values are Disclosed
Deposit liabilities
Time P450,103 P- P- P451,759 P451,759
LTNCD 35,755 27,527 9,355 - 36,882
485,858 27,527 9,355 451,759 488,641
Bills payable and SSURA 139,614 - - 140,415 140,415
Bonds payable 91,397 93,946 - - 93,946
Subordinated debts 1,167 - - 1,232 1,232
Other liabilities
Deposits on lease contracts 1,458 - - 1,169 1,169
P719,494 P121,473 P9,355 P594,575 P725,403
As of March 31, 2021 and December 31, 2020, there were no transfers between levels of the fair value
hierarchy.
- 11 -
5. Segment Information
The Group’s operating businesses are recognized and managed separately according to the nature of services
provided and the different markets served with segment representing a strategic business unit. Operating
segments are reported in accordance with internal reporting to the Senior Management who is responsible for
allocating resources to the segments and assessing its performance. The Group’s business segments follow:
• Consumer Banking - principally providing consumer type loans and support for effective sourcing and
generation of consumer business;
• Corporate Banking - principally handling loans and other credit facilities and deposit and current
accounts for corporate and institutional customers;
• Investment Banking - principally arranging structured financing and providing services relating to
privatizations, initial public offerings, mergers and acquisitions; and providing advisory services
primarily aimed to create wealth to individuals and institutions;
• Treasury - principally providing money market, trading and treasury services, as well as the management
of the Group’s funding operations by use of treasury bills, government securities and placements and
acceptances with other banks, through treasury and corporate banking;
• Branch Banking - principally handling branch deposits and providing loans and other loan related
businesses for domestic middle market clients; and
• Others - principally handling other services including but not limited to remittances, leasing, account
financing, and other support services. Other operations of the Group comprise the operations and
financial control groups.
Segment assets are those operating assets that are employed by a segment in its operating activities and that
are either directly attributable to the segment or can be allocated to the segment on a reasonable basis.
Segment liabilities are those operating liabilities that result from the operating activities of a segment and that
are either directly attributable to the segment or can be allocated to the segment on a reasonable basis.
Interest income is reported net, as management primarily relies on the net interest income as performance
measure, not the gross interest income and interest expense. The Group has no significant customers which
contributes 10.00% or more of the consolidated revenue net of interest expense. Transactions between
segments are conducted at estimated market rates on an arm’s length basis. Interest is charged/credited to
business segments based on a pool rate which approximates the cost of funds. The following table presents
revenue and income information of operating segments presented in accordance with PFRS and segment
assets and liabilities as of and for the periods ended March 31, 2021 and 2020.
Consumer Corporate Investment Branch

Banking Banking Banking Treasury Banking Others Total
Period Ended March 31, 2021
(Unaudited)
Results of Operations
Net interest income (expense)
Third party P
=4,139 P
=8,158 P
=- P
=3,726 P
=2,316 P
=697 P
=19,036
Intersegment (119) (6,550) - (442) 7,111 - -
Net interest income after intersegment
transaction 4,020 1,608 - 3,284 9,427 697 19,036
Non-interest income 1,751 214 14 2,910 1,334 1,652 7,875
Revenue - net of interest expense 5,771 1,822 14 6,194 10,761 2,349 26,911
Non-interest expense 5,475 (464) 1 889 5,190 6,123 17,214
Income (loss) before share in net
income of associates and a joint
venture 296 2,286 13 5,305 5,571 (3,774) 9,697
Share in net income of associates and a
joint venture - (10) - - - 79 69
Benefit from (Provision for) income tax (7) (81) - (804) (22) (1,018) (1,932)
Non-controlling interest in net income
of consolidated subsidiaries - - - - - (54) (54)
Net income (loss) P
=289 P
=2,195 P
=13 P
=4,501 P
=5,549 (P
=4,767) P
=7,780
- 12 -
Consumer Corporate Investment Branch

Banking Banking Banking Treasury Banking Others Total
Statement of Financial Position
Total assets P
=183,112 P
=852,422 P
=- P
=896,148 P
=163,727 P
=277,057 P
=2,372,466
Total liabilities P
=86,413 P
=831,143 P
=- P
=850,552 P
=270,108 P
=18,633 P
=2,056,849
Other Segment Information
Capital expenditures P
=39 P
=21 P
=- P
=6 P
=9 P
=2,503 P
=2,578
Depreciation and amortization P
=184 P
=72 P
=- P
=14 P
=529 P
=660 P
=1,459
Provision for credit and impairment
losses P
=3,612 (P
=1,486) P
=- P
=- P
=218 P
=165 P
=2,509
Period Ended March 31, 2020

(Unaudited)
Net interest income (expense)
Third party =5,255
P P11,883
= =-
P =2,811
P =336
P =1,132
P =21,417
P
Intersegment (147) (8,856) - (884) 9,887 - -
Net interest income after intersegment
transaction 5,108 3,027 - 1,927 10,223 1,132 21,417
Non-interest income 1,672 198 14 1,801 1,285 1,131 6,101
Revenue - net of interest expense 6,780 3,225 14 3,728 11,508 2,263 27,518
Non-interest expense 5,028 3,400 1 933 5,837 4,346 19,545
Income (loss) before share in net income
of associates and a joint venture 1,752 (175) 13 2,795 5,671 (2,083) 7,973
Share in net income of associates and a
joint venture - 33 - - - 84 117
Benefit from (provision for) income tax (451) 497 - (1,042) (11) (772) (1,779)
Non-controlling interest in net income of
consolidated subsidiaries - - - - - (189) (189)
Net income (loss) =1,301
P =355
P =13
P =1,753
P =5,660
P (P
=2,960) =6,122
P
Statement of Financial Position
Total assets P218,457
= P1,045,112
= P-
= P639,839
= P149,567
= P323,689
= P2,376,664
=
Total liabilities =96,476
P =1,012,232
P =-
P =635,157
P =253,302
P =65,839
P =2,063,006
P
Other Segment Information
Capital expenditures P113
= P29
= P-
= P34
= =15
P P638
= =829
P
Depreciation and amortization =81
P =48
P =-
P =14
P P561
= =671
P =1,375
P
Provision for credit and impairment
losses =2,742
P =2,140
P =-
P =-
P =76
P =82
P =5,040
P
Non-interest income consists of service charges, fees and commissions, profit from assets sold, trading and
securities gain-net, and foreign exchange gain (loss) - net, income from trust operations, leasing, dividends and
miscellaneous income. Non-interest expense consists of compensation and fringe benefits, taxes and licenses,
provision for credit and impairment losses, depreciation and amortization, occupancy and equipment-related cost,
amortization of software costs and miscellaneous expense.
6. Long-Term Negotiable Certificates of Deposit (LTNCD)
As of March 31, 2021 and December 31, 2020, the total outstanding LTNCDs of the Group amounted to
P35.76 billion. Significant terms of these LTNCDs have been disclosed in the 2020 audited financial
statements.
7. Securities Sold Under Repurchase Agreement
Following are the carrying values of the investment securities pledged and transferred under SSURA
transactions of the Group (included under Bills Payable and Securities Sold under Repurchase Agreements):
- 13 -
March 31, 2021 December 31, 2020

Transferred Transferred
Securities SSURA Securities SSURA
Investment securities at
FVTPL P2,381 P2,362 =4,804
P =4,708
P
Amortized cost 3,613 3,682 4,535 4,680
FVOCI 119,447 94,253 108,065 83,671
P125,441 P100,297 P117,404 =93,059
P
8. Bonds Payable
This account consists of the following:
Carrying value
Issue Date Maturity Date Interest Rate Face Value (Unaudited) (Audited)
Parent Company
Fixed Rate Bonds:
Parent Company
April 11, 2019 April 11, 2022 6.30% P17,500 P17,445 P17,433
July 3, 2019 July 3, 2021 5.50% 11,250 11,238 11,227
October 24, 2019 April 24, 2023 4.50% 13,750 13,680 13,671
June 24, 2020 September 24, 2021 3.00% 10,500 10,463 10,444
USD Senior Unsecured Note:

July 15, 2020 January 15, 2026 2.125% US$500 23,852 23,580
76,678 76,355
Fixed Rate Bonds:

PSBank
July 24, 2019 July 24, 2021 5.60% 6,300 6,290 6,283
February 4, 2020 February 4, 2023 4.50% 4,650 4,623 4,619
ORIX Metro
November 15, 2019 November 15, 2021 4.55% 4,160 4,145 4,140
P91,736 P91,397
Significant terms of these bonds have been disclosed in the 2020 audited financial statements.
9. Subordinated Debts
As of March 31, 2021 and December 31, 2020, the total outstanding subordinated debt of the Group
amounted to P1.2 billion and will mature on December 20, 2023. Significant terms of this Peso Note has
been disclosed in the 2020 audited financial statements.
10. Capital Stock
As of March 31, 2021 and December 31, 2020, this account consists of (amount in millions, except par value
and number of shares):
Shares Amount
Authorized
Common stock - P20.00 par value 6,000,000,000
Preferred stock - P20.00 par value 1,000,000,000
Common stock issued and outstanding 4,497,415,555 P89,948

- 14 -
As of March 31, 2021 and December 31, 2020, treasury shares totaling 1,216,847 and 1,134,147,
respectively, represent shares of the Parent Company held by mutual fund subsidiary of FMIC.
Details of the Bank’s cash dividend distributions from 2019 to 2021 follow:
Total Amount
Date of Declaration Per Share (In Millions) Record date Payment date
February 17, 2021 P1.00 (regular) P4,497 March 5, 2021 March 18, 2021
February 17, 2021 3.00 (special) 13,492 March 5, 2021 March 18, 2021
February 19, 2020 1.00 (regular) 4,497 March 6, 2020 March 20, 2020
February 13, 2019 1.00 (regular) 3,980 March 1, 2019 March 14, 2019
The computation of surplus available for dividend declaration in accordance with SEC Memorandum
Circular No. 11 issued in December 2008 differs to a certain extent from the computation following BSP
guidelines.
Significant information on capital issuances have been disclosed in the 2020 audited financial statements.
11. Related Party Transactions
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other
party or exercise significant influence over the other party in making financial and operating decisions or if
they are subjected to common control or common significant influence such as subsidiaries and associates of
subsidiaries or other related parties. Related parties may be individuals or corporate entities and are
classified as entities with significant influence, subsidiaries, associates, other related parties and key
personnel.
The Group has several business relationships with related parties. Transactions with such parties are made in
the ordinary course of business and on substantially same terms, including interest and collateral, as those
prevailing at the time for comparable transactions with other parties. These transactions also did not involve
more than the normal risk of collectibility and did not present other unfavorable conditions.
The Parent Company has a Related Party Transactions Committee (RPTC) and a Related Party Transactions
Management Committee (RPTMC), both of which are created to assist the BOD in ensuring that transactions
with related parties are reviewed to assess risks and are subjected to appropriate restrictions to ensure that
these are conducted at arm’s-length terms and that corporate or business resources of the Parent Company are
not misappropriated or misapplied. After appropriate review, RPTMC (through RPTC) and RPTC disclose
all information and endorses to the BOD with recommendations, the proposed related party transactions.
The members of the RPTC are appointed annually by the BOD, composed of at least three (3) Board non-
executive members, two (2) of whom should be independent directors, including the Chairman. Currently,
RPTC is composed of three (3) independent directors (including the Committee’s Chairman); the head of
Internal Audit Group (as Resource Person); and the Compliance Officer (as the Committee Secretary) and
meets bi-monthly or as the need arises. On the other hand, RPTMC members are appointed annually by the
President, composed of at least four (4) members. RPTC’s and RPTMC’s review of the proposed related
party transactions considers the following: (a) identity and relationship of the parties involved in the
transaction; (b) terms of the transaction and whether these are no less favorable than terms generally
available to an unrelated third party under the same circumstances; (c) business purpose, timing, rationale
and benefits of the transaction; (d) approximate monetary value of the transaction and the approximate
monetary value of the related party’s interest in the transaction; (e) valuation methodology used and
alternative approaches to valuation of the transaction; (f) information concerning potential counterparties in
the transaction; (g) description of provisions or limitations imposed as a result of entering into the
transaction; (h) whether the proposed transaction includes any potential reputational risk issues that may arise
as a result of or in connection with the transaction; (i) impact to a director’s independence; (j) extent that
such transaction or relationship would present an improper conflict of interest; and (k) the availability of
others sources of comparable products or services. Further, no director or officer participates in any
discussion of a related party transaction for which he, she, or any member of his or her immediate family is a
related party, including transactions of subordinates except in order to provide material information on the
related party transaction to RPTC.
- 15 -
Major subsidiaries, which include FMIC, PSBank and MBCL, have their own respective RPTCs which assist
their respective BODs in ensuring that transactions with related parties are reviewed to assess risks and are
subjected to appropriate restrictions to ensure that these are conducted at arm’s-length terms and that their
corporate or business resources are not misappropriated or misapplied.
In the ordinary course of business, the Group has loan transactions with investees and with certain directors,
officers, stockholders and related interests (DOSRI) based on BSP Circular No. 423 dated March 15, 2004,
as amended. Existing banking regulations limit the amount of individual loans to DOSRI, 70.00% of which
must be secured, to the total of their respective deposits and book value of their respective investments in the
lending company within the Group. In the aggregate, loans to DOSRI generally should not exceed the
respective total equity or 15.00% of the respective total loan portfolio, whichever is lower, of the Bank,
PSBank, FMIC, ORIX Metro and MBCL.
BSP Circular Nos. 560 and 654 provide the rules and regulations that govern loans, other credit
accommodations and guarantees granted to subsidiaries and affiliates of banks and quasi-banks which require
that the total outstanding loans, other credit accommodations and guarantees to each of the bank’s/quasi-
bank’s subsidiaries and affiliates shall not exceed 10.00% while a separate individual limit of 25.00% for
those engaged in energy and power generation, of the net worth of the lending bank/quasi-bank, provided
that the unsecured portion of which shall not exceed 5.00% or 12.50%, respectively, of such net worth.
Further, the total outstanding loans, credit accommodations and guarantees to all subsidiaries and affiliates
shall not exceed 20.00% of the net worth of the lending bank/quasi-bank; and the subsidiaries and affiliates
of the lending bank/quasi-bank are not related interest of any director, officer and/or stockholder of the
lending institution, except where such director, officer or stockholder sits in the BOD or is appointed officer
of such corporation as representative of the bank/quasi-bank as reported to the BSP. As of March 31, 2021
and December 31, 2020, the total outstanding loans, other credit accommodations and guarantees to each of
the Parent Company’s subsidiaries and affiliates did not exceed 10.00% of the Parent Company’s net worth,
as reported to the BSP, and the unsecured portion did not exceed 5.00% of such net worth wherein the total
outstanding loans, other credit accommodations and guarantees to all such subsidiaries and affiliates
represent 12.39% and 13.18%, respectively, of the Parent Company’s net worth. The Parent Company has no
outstanding loans, other credit accommodations and guarantees to subsidiaries and affiliates engaged in
energy and power generation.
Details on significant related party transactions of the Group as of March 31, 2021, December 31, 2020 and
March 31, 2020 follow (transactions with subsidiaries have been eliminated in the unaudited interim
condensed consolidated financial statement):
Category Amount Terms and Conditions/Nature
Transactions Affecting Statements of Financial Position
Entity with Significant Influence Over the Group
Outstanding Balance:
Deposit liabilities* P2,543 With annual fixed interest rates ranging from 0.00% to 0.25%
including time deposits with maturity terms of 14 to 35 days
Bills payable* 108 Peso borrowings subject to annual fixed interest rates of 0.63% with
maturity term of 63 days
Volume:
Deposit liabilities 557 Generally similar to terms and conditions above
Bills payable 1 Generally similar to terms and conditions above
Subsidiaries
Interbank loans receivable* 5,943 Foreign currency-denominated lending which earn annual fixed
interest rates ranging from 0.00% to 3.27% with maturity terms
from 71 to 359 days
Investment securities at
FVTPL 13 Treasury notes and private bonds purchased from FMIC and
PSBank
FVOCI 1,210 Treasury note purchased from PSBank
Receivables from customers* 5,351 Unsecured, with ECL of P19.5 million
With annual fixed interest rates from 1.14% to 3.25% and maturity
terms from 1 day to 3 years
- 16 -

Accounts receivable P139 Non-interest bearing receivables on service fees, underwriting fees,
remittance, rental fees and common use service area fees
Other receivables 3 Accrued rent receivable from PSBank and ORIX
Derivative assets 633 Swaps bought with various terms
Deposit liabilities* 2,786 With annual fixed interest rates ranging from 0.00% to 0.25%
including time deposits with maturity terms of 91 days
Bills payable* 39 Peso borrowings subject to annual fixed interest rates ranging of
0.75% with maturity terms from 90 to 91 days
Treasury stock 69 Parent Company’s shares held by FMIC’s mutual fund subsidiary
Dividends declared 283 Dividend declared by PSBank
Volume:
Interbank loans receivable (469) Generally similar to terms and conditions above
Receivables from customers 380 Generally similar to terms and conditions above
Accounts receivable (5) Generally similar to terms and conditions above
Deposit liabilities (587) Generally similar to terms and conditions above
Contingent - derivatives 5,596 Swaps bought with various terms
Securities transactions
Purchases 4,784 Outright purchases of investment securities at FVTPL and FVOCI
Sales 6,728 Outright sale of investment securities at FVTPL and FVOCI
Foreign currency
Buy 2,768 Outright purchases of foreign currency
Sell 1,111 Outright sale of foreign currency
Associates
including time deposits with maturity terms from 31 to 357 days
Volume:
Outright sales 1,484 Outright sale of investment securities at FVTPL and FVOCI
Foreign currency
Sell 35 Outright sale of foreign currency
Other Related Parties
Receivables from customers* P24,030 Secured-P1.5 billion, unsecured-P22.5 billion, with ECL of P472.5
million and with annual fixed interest rates ranging from 2.90% to
5.00% and maturity terms from 28 days to 5 years
Assets held under joint operations 219 Parcels of land and former branch sites of the Parent Company
contributed to joint operations
Deposit liabilities* 15,139 With annual fixed rates ranging from 0.00% to 0.75% including
time deposits with maturity terms from 5 to 359 days
Bills payable* 77 Peso-denominated borrowings with annual fixed interest rates of
0.63% and maturity terms from 60 to 66 days
Volume:
Receivables from customers (9,975) Generally similar to terms and conditions above
Deposit liabilities (3,217) Generally similar to terms and conditions above
Contingent
Unused commercial LCs 29 LC transactions with various terms
Foreign currency
Buy 65 Outright purchases of foreign currency
Key Personnel
Receivables from customers P83 Secured - P56.7 million, unsecured - P25.8 million, no impairment. With
annual fixed interest rate ranging from 0.00% to 10.00% and maturity
terms from 1 to 15 years
Deposit liabilities 233 With various terms and with minimum annual interest rate of 0.00%
- 17 -

Bills payable* 107 Peso borrowings subject to annual fixed interest rates of 0.88%
with maturity term of 70 days
Volume:
Bills payable (105) Generally similar to terms and conditions above
Subsidiaries
Interbank loans receivable* 6,412 Foreign currency-denominated lending which earn annual fixed
interest rates ranging from 0.00% to 3.45% with maturity terms
from 17 to 212 days
Investments securities at
FVTPL 83 Treasury notes and private bonds purchased from FMIC and
PSBank
FVOCI 1,218 Treasury note purchased from PSBank
Receivables from customers* 4,971 Unsecured, with ECL of P35.0 million; with annual fixed interest
rates ranging from 1.13% to 1.37% and maturity terms from 1 day
to 3 years
Accounts receivable 144 Non-interest bearing receivables on service fees, underwriting fees,
remittance, rental fees and common use service area fees
Other receivables 3 Accrued rent receivable from PSBank and ORIX
Derivative assets 751 Swaps bought with various terms
including time deposits with maturity terms of 40 days
Bills payable* 37 Peso borrowings subject to annual fixed interest rates ranging from
0.75% to 1.00% with maturity terms from 90 to 97 days
Treasury stock 65 Parent Company’s shares held by FMIC’s mutual fund subsidiary
Dividends declared 1,103 Dividends declared by PSBank
Volume:
Interbank loans receivable (466) Generally similar to terms and conditions above
Receivables from customers (11,108) Generally similar to terms and conditions above
Bills payable (102) Generally similar to terms and conditions above
Contingent - derivatives 5,450 Swaps bought with various terms
Purchases 69,454 Outright purchases of investment securities at FVTPL and FVOCI
Sales 10,880 Outright sale of investment securities at FVTPL and FVOCI
Foreign currency
Buy 10,644 Outright purchases of foreign currency
Associates
Volume:
Receivable from customers (1,301) Generally similar to terms and conditions above
Deposit liabilities 1,508 Generally similar to terms and conditions above
Outright purchases 1,124 Outright purchases of FVTPL securities and FVOCI investments
Outright sales 5,258 Outright sale of investment securities at FVTPL and FVOCI
Foreign currency
- 18 -

Receivables from customers* P34,005 Secured - P5.4 million, unsecured - P28.6 billion, with ECL of
P220.0 million; with annual fixed interest rates ranging from 2.50%
to 5.00% and maturity terms from 30 days to 5 years
Assets held under joint operations 219 Parcels of land and former branch sites of the Parent Company
contributed to joint operations
including time deposits with maturity terms from 6 days to 359
days
Bills payable* 77 Peso-denominated borrowings with annual fixed interest rates
ranging from 0.63% to 1.13% and maturity terms from 66 to 182
days
Volume:
Receivable from customers 1,778 Generally similar to terms and conditions above
Deposit liabilities 4,466 Generally similar to terms and conditions above
Contingent - unused commercial LC’s 35 LC transactions with various terms
Foreign currency
Sell 95 Outright sale of foreign currency
Key Personnel
Receivables from customers P83 Secured - P57 million unsecured - P25.8 million, no impairment,
with annual fixed interest rates ranging from 0.00% to 10.00% and
maturity terms from 1 to 15 years
Deposit liabilities 314 With various terms and with minimum annual interest rate of 0.00%
Volume:
Receivables from customers (2) Generally similar to terms and conditions above
Deposit liabilities 147 Generally similar to terms and conditions above
Transactions Affecting Statements of Income

March 31, 2021 (Unaudited) - Amount
Subsidiaries
Interest income P45 On receivables from customers and interbank loans receivables
Service charges, fees and commissions 3 Income on transactional fees, including underwriting fees
Trading and securities gain - net 30 Net gain from securities transactions
Foreign exchange gain - net 1 Net gain from foreign exchange transactions
Leasing income 24 From leasing agreements with various lease terms
Miscellaneous income 36 Information technology and other fees
Interest expense 1 On deposit liabilities, bills payable and bonds payable
Associates
Trading and securities gain - net P1 Net gain from securities transactions
Interest income P230 On receivables from customers
Interest expense 3 On deposit liabilities and bills payable
Key Personnel
March 31, 2020 (Unaudited) - Amount

Interest expense P2 On deposit liabilities and bills payable
Subsidiaries
Interest income P76 On receivables from customers and interbank loans receivables
Service charges, fees and commissions 4 Income on transactional fees, including underwriting fees
Trading and securities gain - net 44 Net gain from securities transactions
Foreign exchange loss - net (8) Net loss from foreign exchange transactions
Miscellaneous income 49 Information technology and other fees
Interest expense 22 On deposit liabilities, bills payable and bonds payable
Associates
- 19 -

Interest expense 11 On deposit liabilities and bills payable
Key Personnel
* including accrued interest
Receivables from customers and deposit liabilities and their related statement of financial position and
statement of income accounts resulted from the lending and deposit-taking activities of the Group. Together
with the sale of investment properties; borrowings; contingent accounts including derivative transactions;
outright purchases and sales of securities; foreign currency buy and sell; leasing of office premises; securing
of insurance coverage on loans and property risks; and other management services rendered, these are
conducted in the normal course of business, at arms-length transactions and are generally settled in cash.
The amounts and related volumes and changes are presented in the summary above.
As of March 31, 2021 and December 31, 2020, government bonds with total face value of P60.0 million
classified as ‘Investment securities at FVOCI’ are pledged by PSBank to the Parent Company to secure the
latter’s payroll account with PSBank. Also, as of March 31, 2021 and December 31, 2020, the Parent
Company has assigned to PSBank government securities with total face value of P3.5 billion and P4.1billion,
respectively, classified as ‘Investment securities at FVOCI’, to secure PSBank deposits to the Parent
Company.
Transactions with retirement plans
Under PFRS, certain post-employment benefit plans are considered as related parties. The Parent Company
has business relationships with a number of related party retirement plans pursuant to which it provides trust
and management services to these plans. Certain trustees of the plans are either officers or directors of the
Parent Company and/or the subsidiaries. Income earned by the Parent Company from such services
amounted to ₱25.1 million and ₱23.5 million for the period ended March 31, 2021 and 2020, respectively.
As of March 31, 2021 and 2020, the Parent Company sold securities totaling ₱2.3 billion and ₱9.9 million,
respectively, to its related party retirement plans and recognized P14.1 million trading gain and P0.2 million
trading loss, respectively, and has also purchased securities totaling P3.2 billion as of March 31, 2021.
Further, as of March 31, 2021 and December 31, 2020, the total outstanding deposit liabilities of the Group
to these related party retirement funds amounted to ₱511.8 million and ₱112.0 million, respectively. Interest
expense on deposit liabilities amounted to ₱0.1 million and ₱1.3 million for the period ended March 31,
2021 and 2020, respectively.
As of March 31, 2021 and December 31, 2020, the related party retirement plans also hold investments in the
equity shares of various companies within the Group amounting to ₱229.0 million and ₱240.3 million,
respectively, with unrealized trading losses of ₱97.0 million and ₱73.4 million, respectively, and investments
in mutual funds and trust funds of various companies within the Group amounting to ₱1.4 billion and ₱733.1
million, respectively, with unrealized trading loss of ₱8.5 million and unrealized trading gain of ₱3.4 million,
respectively. Further, as of March 31, 2021 and December 31, 2020, investments in the corporate bonds of
the Parent Company by the related party retirement plans amounted to ₱1.6 billion and ₱1.7 billion,
respectively, with unrealized trading gains of ₱62.6 million and ₱71.9 million, respectively. For the period
ended March 31, 2021 and 2020, realized net trading gains for disposals of various investments in equity
shares, mutual and trust funds amounted to ₱1.6 million and ₱8.1 million, respectively. The related party
retirement plans also recognized dividend income of ₱1.5 million and ₱0.3 million in March 31, 2021 and
2020, respectively.
12. Notes to Statements of Cash Flows
The amounts of interbank loans and receivables and SPURA, gross of allowance for credit losses, considered
as cash and cash equivalents follow:
- 20 -
March 31
2021 2020
Interbank loans receivables and SPURA P61,916 =54,056
P
Interbank loans receivables and SPURA not considered as cash
and cash equivalents (17,522) (4,890)
P
=44,394 =49,166
P
13. Commitments and Contingent Liabilities
In the normal course of the Group’s operations, there are various outstanding commitments and contingent
liabilities which are not reflected in the accompanying unaudited interim condensed consolidated financial
statements. No material losses are anticipated to be recognized as a result of these transactions.
The following is a summary of contingencies and commitments at their peso-equivalent contractual amounts
arising from off-balance sheet items:

Trust Banking Group accounts P582,692 =567,841
P
Credit card lines 204,406 205,815
Unused commercial letters of credit 39,354 42,283
Undrawn commitments - facilities to lend 18,891 17,413
Bank guaranty with indemnity agreement 8,528 8,591
Credit line certificate with bank commission 3,937 4,262
Outstanding guarantees 3,293 3,826
Outstanding shipside bonds/airway bills 1,625 2,594
Late deposits/payments received 1,286 1,756
Inward bills for collection 1,542 1,909
Confirmed export letters of credits 1,206 964
Outward bills for collection 970 821
Others 16,509 11,488
P884,239 =869,563
P
Several suits and claims relating to the Group’s lending operations and labor-related cases remain unsettled.
In the opinion of management, these suits and claims, if decided adversely, will not involve sums having a
material effect on the Group’s financial statements.
14. Financial Performance
The basis of calculation for earnings per share attributable to equity holdings of the Parent Company follows
(amounts in millions except for earnings per share):
For the Period Ended March 31 For the Year Ended

2021 2020 December 31, 2020
a. Net income attributable to equity
holders of the Parent Company P
=7,780 =6,122
P =13,831
P
b. Weighted average number of
outstanding common shares of the
Parent Company 4,496 4,496 4,496
c. Basic/diluted earnings per share (a/b) P1.73 P1.36
= P3.08
=
As of March 31, 2021 and 2020 and December 31, 2020, there were no outstanding dilutive potential
common shares.
- 21 -
The following basic ratios measure the financial performance of the Group:
For the Period Ended March 31 For the Year Ended

2021 2020 December 31, 2020
Return on average equity 9.87% 7.98% 4.36%
Return on average assets 1.29% 1.01% 0.56%
Net interest margin on average
earning assets 3.52% 4.06% 3.98%
15. Other Matters
The Group has no significant matters to report on the following during the period ended March 31, 2021:
a. Known trends, events or uncertainties that would have material impact on liquidity and on the sales or
revenues;
b. Explanatory comments about the seasonality or cyclicality of interim operations;
c. Issuances, repurchases and repayments of debt and equity securities;
d. Unusual items as to nature, size or incidents affecting assets, liabilities, equity, net income or cash flows
except for the payments of cash dividends by the Parent Company as discussed in Note 10; and
e. Effect of changes in the composition of the Group during the interim period, including business
combinations, acquisition or disposal of subsidiaries and long-term investments, restructurings, and
discontinuing operations except as discussed in Note 2.
16. Subsequent Event
a. On April 26, 2021 the BOD of PSBank declared a 7.50% regular cash dividend for the first quarter of
2021 amounting to P320.14 million or P0.75 per share payable on May 26, 2021 to all stockholders of
record as of May 11, 2021.
ANNEX 6

FINANCIAL INDICATORS
AS OF AND FOR THE PERIOD ENDED MARCH 31, 2021 AND 2020
RATIO FORMULA 2021 2020
a) Liquidity Ratio Liquid Assets 48.17% 36.37%

Total Assets
b) Loans to Deposits Ratio Total Loans 69.21% 84.60%

Total Deposit Liabilities
c) Debt to Equity Ratio Total Liabilities 670.90% 677.41%

Total Equity Attributable to Equity
Holders of the Parent Company
d) Asset to Equity Ratio Total Assets 773.85% 780.41%

Total Equity Attributable to Equity
Holders of the Parent Company
Net Income Attributable to Equity

e) Return on Average Equity Holders of the Parent Company 9.87% 7.98%
Average Equity
Net Income Attributable to Equity

f) Return on Average Assets Holders of the Parent Company 1.29% 1.01%
Average Assets
g) Net Interest Margin on Average Earning Assets Net Interest Income 3.52% 4.06%
Average Earning Assets
h) Operating Efficiency Ratio Total Operating Expenses 54.64% 52.71%

Net Operating Income
i) Interest Coverage Ratio Earnings Before Interest and Taxes 404.28% 206.81%
Interest Expense
j) Net Profit Margin Net Income 25.95% 17.93%

Total Gross Income
k) Capital Adequacy Ratio Total Qualifying Capital 19.89% 17.55%

Total Risk-Weighted Assets
l) Common Equity Tier 1 Ratio Net Tier 1 Capital 19.02% 16.29%

Total Risk-Weighted Assets
ANNEX 7

SEC FORM 17 – Q
FOR THE PERIOD ENDED MARCH 31, 2021
ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF CONSOLIDATED

FINANCIAL POSITION AND RESULTS OF OPERATIONS
Key Performance Indicators
Financial Ratios
The following ratios measure the financial performance of the Group, the Bank, and significant
subsidiaries:
For the Period Ended March 31, 2021

(Unaudited)
Group Metrobank FMIC PSBank
Earnings per share P1.73 P1.73 (P036) P1.03
Return on equity 9.87% 9.85% 4.11% 5.07%
Return on assets 1.29% 1.47% 1.93% 0.78%
Operating efficiency ratio 54.64% 51.71% 228.46% 57.31%
Non-performing loans ratio 2.40% 1.70% Nil 6.35%
For the Period Ended March 31, 2020

(Unaudited)
Group Metrobank FMIC PSBank
Earnings per share P1.36 P1.36 (P1.24) P1.60
Return on equity 7.98% 7.83% 6.13% 7.61%
Return on assets 1.01% 1.18% 2.63% 1.08%
Operating efficiency ratio 52.71% 48.51% 162.60% 60.75%
Non-performing loans ratio 1.40% 1.02% Nil 3.72%
Earnings Per Share

Basic earnings per share (EPS) is computed by dividing the net income by the weighted average number
of common shares outstanding after giving retroactive effect to stock dividends declared, stock rights
exercised and stock splits made during the period, if any. As of March 31, 2021 and 2020, the Parent
Company had no shares of stock that had a dilutive effect on its basic earnings per share.
The increase in the Group’s EPS from P1.36 to P1.73 was due to the 27.08% increase in net income
attributable to the equity holders of the Parent Company from P6.12 billion for the quarter ended March
31, 2020 to P7.78 billion for the same period in 2021.
Return on Equity
Return on equity (ROE) or the ratio of annualized net income to average capital funds (equity
attributable to equity holders of the Parent Company) measures the return on capital provided by the
stockholders.
ROE of the Group for the quarter ended March 31, 2021 was higher at 9.87% compared with 7.98% for
the same period in 2020 due to the net effect of the 27.08% increase in the net income attributable to
equity holders of the Parent Company and the 2.72% increase in the average equity.
-2-
Return on Assets
Return on assets (ROA) or the ratio of annualized net income to average total assets, measures the return
on money provided by both stockholders and creditors, as well as how efficiently all assets are managed.
ROA went up to 1.29% for the quarter ended March 31, 2021 from 1.01% for the same period in 2020
due to the 27.08% increase in net income attributable to the equity holders of the Parent Company.
Operating Efficiency Ratio

Operating efficiency ratio represents the ratio of total operating expenses (excluding provisions for
credit and impairment losses and income tax) to total operating income (excluding share in net income
of associates and a joint venture).
For the quarter ended March 31, 2021, the Group’s operating efficiency ratio went up to 54.64% from
52.71% for the same period in 2020 as a result of the 1.38% increase in operating expenses and the
2.21% decrease in operating income.
Non-Performing Loans Ratio

Non-performing loans (NPL) ratio represents the ratio of NPLs to gross loan portfolio, excluding
interbank loans receivable.
As of March 31, 2021 and 2020, NPL ratio of the Group was at 2.40% and 1.40%, respectively.
Liquidity
To ensure that funds are more than adequate to meet its obligations, the Bank proactively monitors its
liquidity position daily. Based on this system of monitoring, the Bank does not anticipate having any
cash flow or liquidity problem within the next twelve months. As of March 31, 2021, the contractual
maturity profile shows that the Bank has at its disposal about P1.06 trillion of cash inflows in the next
twelve months from its portfolio of cash, placements with banks, debt securities and receivable from
customers. This will cover 71.35% of the P1.49 trillion total deposits maturing during the same period.
These cash inflows exclude securities in FVTPL and FVOCI with maturities beyond one year but may
easily be liquidated in an active secondary market. Inclusive of these securities, the total financial assets
will cover 100.99% of the total deposits maturing during the same period. On the other hand, historical
balances of deposits showed that no substantial portion has been withdrawn in one year.
Events That Will Trigger Material Direct or Contingent Financial Obligation

These events are discussed in Annex 5 under Note 13 - Commitments and Contingent Liabilities of the
General Notes to the Interim Condensed Consolidated Financial Statements.
Material Off-Balance Sheet Transactions, Arrangements or Obligations

The summary of contingencies and commitments at their peso-equivalent contractual amounts arising
from off-balance sheet items are discussed in Annex 5 under Note 13 - Commitments and Contingent
Liabilities of the General Notes to the Interim Condensed Consolidated Financial Statements. Likewise,
the summary of obligations are discussed in Note 6 - LTNCD; Note 8 - Bonds Payable; Note 9 -
Subordinated Debts and Note 10 - Capital Stock.
Material Commitments for Capital Expenditures

For the year 2021, the Bank estimates to incur capital expenditures of about P3.0 to P5.0 billion, of
which 70% is estimated to be incurred for information technology.
-3-
Material Events or Uncertainties
The registrant has nothing to report on the following for the period ended March 31, 2021:
1. Any known trends or demands, commitments, events or uncertainties that will have a material
impact on liquidity or that have had or that are reasonably expected to have a material favorable or
unfavorable impact on net sales or revenues or income from continuing operations, except as
disclosed in Annex 5 under Note 15 - Other Matters; and Note 16 - Subsequent Events of the
General Notes to the Interim Condensed Consolidated Financial Statements;
2. Any seasonal aspects that had a material effect on the financial condition or results of operations;
and
3. Any significant element of income or loss that did not arise from continuing operations.
Material Changes in Financial Statements Accounts
Financial Condition
March 31, 2021 (Unaudited) vs. December 31, 2020 (Audited)

The Metrobank Group posted unaudited consolidated total assets of P2.37 trillion and consolidated total
liabilities of P2.06 trillion as of March 31, 2021. Compared with the audited figures as of December 31,
2020, total assets and total liabilities went down by P82.70 billion or 3.37% and by P65.14 billion or
3.07 %, respectively. Moreover, equity attributable to equity holders of the Parent Company was lower
by P17.62 billion or 5.44% from P324.20 billion to P306.58 billion.
Cash and Other Cash Items decreased by P9.24 billion or 24.01% due to high level of cash requirements
during year-end. Due from BSP which represents 12.53% of the Group’s total assets went down by
P7.71 billion or 2.53% due to the net effect of the decrease in overnight deposit facility placement and
the increase in term deposit with the BSP. Interbank Loans Receivable and SPURA went down by
P17.48 billion or 22.02% due to the decrease in interbank loans receivable and SPURA by P14.43
billion and P3.06 billion, respectively.
Total investment securities which consisted of FVTPL, FVOCI and securities at amortized cost went up
by P44.78 billion or 6.68%. The increase was mainly due to the net effect of the P69.79 billion increase
in investments in FVOCI particularly on treasury notes and bonds, treasury bills and government
securities, and the P25.87 billion decrease in investment in FVTPL securities.
Net loans and receivables representing 48.81% and 51.03% of the Group’s total assets as of March 31,
2021 and December 31, 2020, respectively, went down by P95.0 billion or 7.58% due to lower
portfolios of corporate, commercial and consumer loans.
As of March 31, 2021, deferred tax assets amounted to P12.71 billion or lower by 9.37% compared with
December 31, 2020 balance of P14.03 billion due to the net impact of the new tax rate under the
CREATE Law. Other Assets increased by P1.60 billion or 12.17% primarily due to the net effect of the
increases in software and prepaid expenses reduced by the decrease in miscellaneous assets.
Deposit liabilities represent 84.52% and 84.69% of the consolidated total liabilities as of March 31,
2021 and December 31, 2020, respectively, wherein low cost deposits represent 75.20% and 72.97% of
the Group’s total deposits, respectively. The Group’s deposit level, sourced mainly by the Bank,
PSBank and MBCL reached P1.74 trillion as of March 31, 2021, a decrease of P58.81 billion or 3.27%
from the December 31, 2020 level coming mostly from the high cost deposits.
Bills Payable and SSURA went down by P5.08 billion or 3.64% due to the net effect of various
settlements of interbank borrowings and the increase in SSURA. Derivative Liabilities decreased by
P3.20 billion or 23.75%. The decrease of P0.53 billion or 8.83% in Manager’s Checks and Demand
Drafts Outstanding resulted from the normal banking operations of the Bank and PSBank. Income taxes
-4-
payable decreased by P0.42 billion or 15.49% due to the net movement in corporate income tax liability
after considering the impact of the new tax rate under the CREATE Law.
Equity attributable to equity holders of the Parent Company decreased by P17.62 billion or 5.44%
primarily due to the P17.99 billion total cash dividends paid by the Bank during the year.
Quarter Ended March 2021 vs. Quarter Ended March 2020 (Unaudited)
The unaudited net income attributable to equity holders of the Parent Company for the quarter ended
March 31, 2021 amounted to P7.78 billion and improved by P1.66 billion or 27.08% from the P6.12
billion net income reported in the same quarter of the previous year. The improvement was due to the
following:
Interest income for the quarter ended March 31, 2021 went down by P6.75 billion or 23.27% from
P28.99 billion to P22.25 billion mainly due to lower interest income from loans and receivables by
P6.05 billion and interest income on trading and investment securities by P1.17 billion offset by the
P0.47 billion increase in interest income on deposits with banks and others. Meanwhile, the
decreases in interest expense on deposit liabilities by P2.83 billion or 66.90% (lower volume and
interest rate of high cost deposits) and interest expense on borrowings by P1.54 billion or 45.92%
accounted for the P4.37 billion or 57.64% decrease in interest expense. These resulted in a P2.38
billion or 11.12% decline in net interest income.
Other operating income went up by P1.73 billion or 27.76% from P6.22 billion for the first quarter
of 2020 to P7.94 billion for the same quarter this year on account of the increases in net trading,
securities and foreign exchange gain by P1.51 billion and miscellaneous income by P0.23 billion
while fee-based income was maintained at almost same level. The Group set aside provision for
credit and impairment losses of P2.51 billion in the first quarter of 2021 or P2.53 billion lower
compared with P5.04 billion provision for the same quarter of 2020. Total operating expenses was
maintained at same level with slight increase of P0.20 billion or 1.38% due to the increases in
compensation and fringe benefits by P0.49 billion or 8.22% and occupancy and equipment-related
expenses by P32.5 million or 7.02% offset by the decrease in miscellaneous expenses by P0.32
billion or 3.91%. Provision for income tax was higher by P0.15 billion or 8.60% after considering
the net impact of the new tax rate under CREATE Law.
Income attributable to non-controlling interests went down by P0.14 billion from P0.19 billion to
P0.05 billion due to the decreases in the results of operations of majority-owned subsidiaries.
Total comprehensive income went up by P0.14 billion from P0.34 billion for the first quarter of 2020 to
P0.47 billion for the same period in 2021 due mainly to the net effect of higher net income for the first
quarter of 2021 and the net movements in net unrealized gain on investment securities at FVOCI and
loss on remeasurement of retirement plan. This caused the total comprehensive income attributable to
equity holders of the Parent Company to increase by P0.25 billion from P0.13 billion in 2020 to P0.37
billion for the quarter ended March 31, 2021.
(CONSOLIDATED)
AGING OF ACCOUNTS RECEIVABLE

(IN MILLIONS)
AS OF MARCH 31, 2021
NO. OF DAYS
OUTSTANDING AMOUNT
1-90 P 3,601
91-180 200
181-360 262
OVER 360 4,056
GRAND TOTAL P 8,119

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COVER SHEET

(Company’s Full Name)

(Business Address: No. Street City/Town/Province)

Renato K. De Borja, Jr. 8898-8805

Corporate Finance Department

Total Amount of Borrowings

To be accomplished by SEC Personnel concerned

File Number LCU

METROPOLITAN BANK & TRUST COMPANY

(Amendment Designation, if applicable)

March 31, 2021

SEC FORM 17-Q

QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

1. For the quarterly period ended : March 31, 2021

2. Commission Identification Number : 20573

3. BIR Tax Identification No. : 000-477-863

5. Province, country or other jurisdiction of

6. Industry Classification Code : (SEC Use Only)

8. Issuer's telephone number, including area code : (632) 8898-8805

No. of Shares of Common Amount of Debt Outstanding

Common Shares 4,497,415,555 shares None

11. Are any or all of the securities listed on a Stock Exchange?

Stock Exchange : Philippine Stock Exchange

12. Indicate by check mark whether the registrant:

Item 1. Financial Statements

Attached are the following:

Interim Condensed Consolidated Statements of Financial Position - Annex 1

Item 2. Management’s Discussion and Analysis of Consolidated Financial

PART II - OTHER INFORMATION

II. Pending Legal Proceedings

III. Board Resolutions

Interim Condensed Consolidated Financial Statements

METROPOLITAN BANK & TRUST COMPANY AND SUBSIDIARIES

Cash and Other Cash Items ₱ 29,233 ₱ 38,469

LIABILITIES AND EQUITY

NET INCOME P 7,834 P 6,311

Basic/Diluted Earnings Per Share Attributable to

METROPOLITAN BANK & TRUST COMPANY AND SUBSIDIARIES

Quarters Ended March 31

NET INCOME P 7,834 P 6,311

OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX

Items that may not be reclassified to profit or loss:

Items that may be reclassified to profit or loss:

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD P 473 P 338

For the Quarters Ended March 31, 2021 and 2020

METROPOLITAN BANK & TRUST COMPANY AND SUBSIDIARIES

2. Summary of Significant Accounting Policies

Presentation of Financial Statements

Entity with significant influence over the Group

Changes in Accounting Policies

The Group shall also disclose information about:

Significant Accounting Judgments and Estimates

3. Financial Risk Management

Risk management framework

Market Risk - Trading Book

VaR methodology assumptions and parameters

Market Risk - Banking Book

EaR methodology assumptions and parameter

Foreign currency risk

4. Fair Value Measurement