Metropolitan Bank & Trust Co., the second-biggest lender in terms of assets, registered an unaudited consolidated net income of P5.9 billion in the first quarter 2018, up 5.3 percent year-on-year.
Metrobank attributed the solid performance to sustained growth in the core business, as double-digit growth in loans and low-cost deposits contributed to better margins, while recurring expense growth was kept at a manageable level.
“We have started the year on the right direction and we are moving forward as planned. Our recently completed capital raise reflects our continued optimism on the prospects of the economy. This positive backdrop together with our growth strategy should allow us to achieve our targets for the year and sustain our momentum in the medium term,” said Metrobank president Fabian Dee.
Total deposits at the end of March increased 9 percent to P1.6 trillion, driven by an 11-percent growth in the low cost component. With its strong deposit franchise, the bank’s CASA ratio was maintained at 62 percent.
Despite volatile market conditions, loan growth sustained its mid-teens pace, up 14 pecent year-on-year to P1.3 trillion. The consumer portfolio maintained its growth of 17 percent, while the commercial segment rose 14 percent year-on-year with key contributions from middle market and SMEs customers, as well as top corporate accounts.
Net interest margin for the period was at 3.8 percent, or 7 basis points higher on year. As a result, Metrobank booked P16.1 billion in net interest income, which accounted for 73 percent of the bank’s total revenue of P22.1 billion.
Meanwhile, the non-interest income of P6 billion was comprised of P3.2 billion in service fees and commissions and income from trust operations, which was up 9 percent, P679 million in net trading and FX gains, and P2.1 billion in miscellaneous income.