MetBank acquires $6.8m investment properties

MetBank acquires $6.8m investment properties
Published: 29 August 2017
A LOCAL commercial bank, Metbank has acquired investment properties worth $6.8 million through the settlement of various loan exposures.

In a financial statement for the half year ended June 30, 2017, Metbank said included in its investment portfolio was property with a carrying amount of $38 million ceded as security to the bank's debentures and preference shares trust.

"During the half year period, the bank acquired investment properties valued $6.8 million through the settlement of various loan exposures. Investment property comprises buildings and undeveloped stands.

"Investment property is stated at fair value, which has been determined based on valuations performed by an accredited independent professional valuer as at December 31, 2016," said the financial institution.

Metbank said it seeks to add value to the land through property development thereby creating capacity to settle creditors when debt instruments mature in 2018.

During the period under review, the banking institution posted a profit of $0.4 million up 39 percent from the comparative period last year.

"Through continuous monitoring of the loan book with the aim to maintain asset quality, the bank managed to restrict Non-Performing Loans ratio to 1.5 percent, which is within the regulatory threshold of five percent," said Metbank.

During the period under review, the banking institution also improved its asset base overall by 16 percent.

"The bank continues to be aggressive in its loan collection and recovery efforts whilst also underwriting a new book with caution. The bank's business development efforts continue to bear fruit as evidenced by the surge in the deposit base from $53.44 million as at December 31, 2016 to $93.39 million as at June 30, 2017," it said.

The bank continues to pursue its re-capitalisation efforts in order to achieve the minimum capital requirement of $100 million by 2020 in line with its five-year recapitalisation plan.

On the outlook, Metbank continues to pursue its five-year strategic plan by focusing on property development, mortgage financing and commercial banking.

"The strategy allows the bank to satisfy its customers, increase shareholder value, and improve service delivery through roll-out of a full range of electronic banking and financial inclusion products," said the financial institution.
- chronicle
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