Metrobank’s income surges to record P42.2b

Metropolitan Bank & Trust Company, the second-largest lender, said Thursday it booked a record earnings of P42.2 billion in 2023, up 28.9 percent year-on-year.

This translated into a return on equity (ROE) of 12.5 percent last year, higher than 10.3 percent in 2022.

Metrobank president Fabian Dee said the bank’s strong performance was driven by asset expansion, higher margins, improving efficiency levels and better asset quality.

“This indicates that we are firmly on track with our long-term growth strategies supported by our highly capable and resilient team of Metrobankers and strong balance sheet. We look forward to further expanding our partnerships with all our stakeholders,” said Dee.

Net interest income grew 22.7 percent, led by higher loan demand and better net interest margin of 3.9 percent.

Gross loans rose 7.6 percent year-on-year, with consumer portfolio increasing 15.9 percent on strong discretionary spending, outpacing the 5.5-percent rise in commercial loans.

Total deposits grew 7.3 percent from the previous year to P2.4 trillion, with low-cost current and savings accounts (CASA) amounting to more than 60 percent or P1.4 trillion.

Fee income meanwhile increased 9 percent to P16.4 billion, largely driven by the expanding consumer business. Trading and forex gains were steady at P4 billion.

Non-performing loans (NPLs) ratio eased to 1.7 percent from 1.9 percent in 2022, below the banking system’s 3.3 percent NPL ratio.

NPL cover remained substantial at 180.3 percent, reflecting its ability to weather any risks to the loan portfolio.

Metrobank said that with its strong profitability and substantial capital base, its board of directors approved a total cash dividend of P5 per share for the year.

The regular dividend was raised to P3 per share from P1.60 to be paid out on a semi-annual basis.

The bank also declared a special cash dividend of P2 per share. The first payout of P3.50 will be given to shareholders on record as of March 8, 2024.

Metrobank also reported that consolidated assets expanded 9.2 percent to P3.1 trillion in 2023, maintaining its status as the country’s second largest private universal bank.