Metropolitan Bank and Trust Co. (Metrobank) of the Ty family has allocated a big chunk for impairment losses in its minority stake in loss-making Lepanto Consolidated Mining Corp. (LC) over the last two years.
Metrobank earmarked P570.8 million allowance for losses in its LC stake in 2021, up by 30 percent from the P439.2 million loss provision it booked in 2020.
Metrobank’s parent, GT Capital, has a 16.3 percent stake in Metro Pacific Investments, the parent of Philex.
Metrobank said there “has been a significant and prolonged decline in the fair value” of its LC holdings due to the significant decline in the fair value of the shares compared to the acquisition cost of P2.527 billion.
LC has lost a total of P4.525 billion from 2016 to the first three months of 2021.
Metrobank owns 13.3 percent interest in LC which it acquired in 2010 through First Metro Investment Corp. It has a five-year agreement with Philex Mining Corp. to jointly vote their combined 16.7 percent stake in the mining company.