Metrobank’s net profit rises 45% to P23.4 billion

Metropolitan Bank & Trust Co., the second-largest lender in terms of assets, said Friday net income jumped 45 percent in the first nine months to P23.4 billion from P16.1 billion a year ago on continued expansion in lending portfolio, better margins, healthy fee income, stable operating costs and lower provisions.

The bank said net profit in the third quarter climbed 77 percent year-on-year to P7.8 billion.

Metrobank president Fabian Dee said the bank improved its profitability by taking on opportunities as the economy reopened while keeping the balance sheet strong and improving the efficiency level.

“Our position of strength and substantial reserves will enable us to continue on supporting our customers as they navigate the impact of the global external headwinds,” Dee said.

“We will continue to focus on achieving sustainable growth for the bank beyond our 60th year,” he said. Metrobank celebrated its diamond year on Sept. 5.

Net interest income grew 10 percent to P62.1 billion, with net interest margin improving to 3.5 percent. Gross loans jumped 12 percent year-on-year to P1.4 trillion, driven by a 15-percent expansion in corporate and commercial lending and 22-percent increase in gross credit card receivables.

Total deposits went up by 11 percent to P2 trillion, as current and savings account deposits improved 5 percent to P1.5 trillion.

Non-interest income was stable on the back of a 15-percent rise in fees and charges.

Operating expenses stayed in control at P44.5 billion, supported by operational efficiency gains. As a result, cost-to-income ratio improved to 54.5 percent from 59.0 percent in the same period last year.

Non-performing loans remained manageable at 2.1 percent of total loans, below the industry’s 3.6 percent NPL ratio in August. Restructured loans improved to 0.5 percent of total loans, compared to the industry’s 2.7 percent.

Metrobank is the country’s second-largest private universal bank with consolidated assets of P2.7 trillion and total equity of P308.9 billion. Its balance sheet remained strong with a capital adequacy ratio of 17.2 percent and common equity Tier 1 ratio of 16.3 percent, both above the minimum regulatory requirements.