Metrobank’s profit climbed 35.6% to P31.8b in 3 quarters

Metropolitan Bank & Trust Co. (Metrobank), the second-largest lender, said Friday it posted a record net income of P31.8 billion in the first three quarters of 2023, 35.6 percent higher than a year ago, fueled by asset expansion, improving margins and healthy non-interest income growth as asset quality continued to improve.

This translated into a return on equity of 12.8 percent, higher than 10.0 percent recorded in the same period last year.

Metrobank said third-quarter profit grew 38.7 percent to P10.9 billion from the same period last year.

Metrobank president Fabian Dee said the sustained growth showed that the bank remained strong and resilient despite the unpredictable market conditions.

“We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” Dee said.

Net interest income surged 24.4 percent to P77.2 billion as of September from a year earlier, on the back of higher margins. Gross loans climbed 7.1 percent year-on-year, with consumer loans increasing 16.5 percent.

Net credit card receivables went up 29.5 percent, while auto loans increased 21.6 percent. Commercial loans were up by 4.8 percent, tracking the country’s modest economic growth.

Total deposits rose 14.5 percent to P2.3 trillion from a year ago, of which low-cost current and savings accounts (CASA) represented 59.2 percent.

Trading and foreign exchange gains expanded 45.5 percent to P3.6 billion, while fee income rose 9.7 percent to P12.2 billion.

Cost to income ratio improved to 51.5 percent from 54.5 percent last year. The robust 21.9-percent growth in revenues outstripped the 15.1-percent increase in operating expenses. 

Higher transaction-related taxes, technology related costs and capacity expansion were the key drivers of cost growth.

Pre-provision operating profit accelerated by 29.9 percent to P49.0 billion.  

Non-performing loans (NPLs) ratio further eased to 1.7 percent from 2.1 percent last year as it continued to practice prudence to maintain the quality of its portfolio. Restructured loans accounted for 0.4 percent of total loans.

NPL cover further increased to a high of 187.1 percent, keeping a substantial buffer against macro uncertainties that could increase portfolio risks.

Metrobank’s consolidated assets reached nearly P3.0 trillion, maintaining its status as the country’s second largest private universal bank. Total equity amounted to P342.2 billion. 

The bank’s capital ratios remained among the highest in the industry, with capital adequacy ratio at 18.4 percent and common equity tier 1 (CET1) ratio at 17.6 percent, above the BSP’s minimum regulatory requirements.