Metrobank’s income grew 15% to P6.8b

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said Tuesday net income jumped 15 percent in the first quarter to P6.8 billion from P5.9 billion a year ago.

Metrobank president Fabian Dee said in a statement the solid performance in January to March was driven by the double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income and prudent operational expenditures.

“We are pleased with the favorable business results in the first three months. The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly quality growth,” Dee said.

“We remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry. Against this backdrop, we will continue to focus on key initiatives that will impact customer experience, efficiency, governance and sustain profitability for the bank,” he said.

Total deposits reached P1.6 trillion by the end of the first quarter, with the bank’s current account savings account ratio at a stable 61 percent to total deposits. This supported the 8.5-percent growth in net loans and receivables to P1.4 trillion which was led by the commercial loan segment comprised of top corporate accounts, middle market and SMEs.

Metrobank’s net interest margin for the period attained notable improvement, rising 9 basis points to 3.84 percent. Net interest income came in at P18.1 billion, posting a 12-percent growth year-on-year and accounted for 74 percent of the bank’s total revenues of P24.6 billion.

Non-interest income also rose 8 percent to P6.5 billion. This included a 9-percent increase in service fees and commissions to P3.1 billion, P1.5 billion in net trading and foreign exchange gains and P1.6 billion in miscellaneous income.

Fee-related revenues and trading income continued to benefit from increased customer business in fixed-income and foreign exchange.

Operating expenses slowed down to 10 percent, totaling P13.5 billion. Manpower-related costs accounted for P5.4 billion of the full amount, while the balance was spent on systems and process improvements and continuous investments in information technology.

Asset quality metrics remained healthy, with non-performing loans ratio slightly up at 1.5 percent. 

Metrobank’s consolidated assets hit P2.3 trillion while equity was at P288.7 billion as of end-March. Capital ratios are comfortably above minimum requirements, with total capital adequacy ratio at 17.4 percent and common equity tier 1 ratio at 15 percent.