Metrobank’s first-quarter net income hit P8 billion

Metropolitan Bank & Trust Company posted a net income of P8.0 billion in the first quarter of 2022.

Metrobank’s solid performance was attributed to stable net interest income, supported by recovery in loans, modest rise in non-interest income, and marginal costs growth.

Asset quality remained healthy, prompting further decline in provisions. These positive drivers improved the bank’s average return on equity to 10 percent.

“We are encouraged by the sustained pick-up in economic activities as Metrobank stands ready to support our clients in their funding plans and investment needs,” said Metrobank president Fabian Dee.

“The strategies that we have put in place should enable the Bank to achieve sustainable growth along with the expanding domestic economy,” said Dee.

Gross loans rose 5 percent year-on-year to P1.3 trillion, led by a robust 10-percent expansion in corporate lending and 8-percent increase in credit card receivables.

Loan growth was supported by a 17-percent jump in total deposits to P2.0 trillion. CASA deposits rose 10 percent, resulting in CASA ratio of 71 percent.

The sustained rise in low-cost CASA helped reduced funding cost.  As a result, net interest income reached P19.3 billion.

Meanwhile, non-interest income went up by 5 percent, driven by a 7-percent growth in service fees and commissions. Even with market volatility in the first quarter, the bank was able to generate P2.3 billion in trading and FX gains.

Operating costs remained under control, inching up 1 percent to P14.9 billion, reflecting the ongoing efforts to enhance productivity and operational efficiency. Cost-to-income ratio improved to 54.1 percent from 54.6 percent in the same period last year.

Growth was not at the expense of quality, as non-performing loans declined by 5 percent to P27.0 billion. The resulting NPL ratio improved to 2.2 percent from 2.4 percent last year, while NPL cover remained ample at 179 percent. Solid asset quality allowed the bank to trim down provisions further.

Metrobank is the country’s second largest private universal bank with consolidated assets of P2.6 trillion and total equity of P303.8 billion.

The bank’s balance sheet remained strong, with capital adequacy ratio of 18.5 percent and common equity Tier 1 of 17.6 percent, both substantially higher than the regulatory minimum.

As a testament to the bank’s aim to deliver its full potential across all business segments, Metrobank Private Wealth was named the Best Domestic Private Bank in the Philippines in the Asiamoney 2022 Private Banking Awards. 

“Our goal at Metrobank Private Wealth is to be our clients’ most trusted financial advisor and to develop a relationship with them that will span generations,” said Lizette Perez, senior vice president and head of Metrobank Private Wealth.

The Bank was awarded the Best Multi-Product Financing Deal and Best Syndicated Loan Deal at the Asset Triple-A Awards in 2021.  In recognition of its overall fortress balance sheet and resilience, Metrobank was also hailed the Strongest Bank in the Philippines by the Asian Banker and Best Domestic Bank in the Philippines by Asiamoney.