Metropolitan Bank & Trust Company, the country’s second-largest lender, said Thursday it posted P6.1 billion in net income in the first quarter on the back of a 13-percent gross revenue growth.
The bank said first-quarter revenue was driven by 6-percent increase in loans, 8-percent growth in deposits and P6.2-billion in non-interest income.
It said recognizing the potential impact of the COVID-19 pandemic, it proactively doubled provisions to P5 billion, which tempered the first-quarter quarter’s net income to P6.12, compared to P6.75 billion in the same period last year.
“Our underlying business is strong. We started the year with healthy growth in loans, deposits and other revenue streams,” said Metrobank president Fabian Dee.
“However, current conditions point to an expected slowdown in the business environment and challenges ahead. Mindful of the potential impact of this pandemic, we decided to take the prudent approach of increasing provisions to cover anticipated risks,” Dee said.
“We have weathered periods of crisis in the past and we are confident that we are well prepared, as the bank has one of the strongest capital positions in the industry. We will continue to adjust our processes to ensure the sustained delivery of meaningful banking services; and implement the necessary measures to keep both our customers and our people safe,” he said.
Metrobank said that for the quarter ending March, the bank recorded an 8-percent increase in total deposits to P1.7 trillion. This was achieved with the 18-percent growth in CASA deposits, resulting in an improved CASA ratio of 66 percent from 61 percent last year.
Metrobank continued to support customers’ business requirements across all segments from corporates, middle market, SMEs and retail. This was reflected in the 6-percent growth in net loans and receivables to P1.4 trillion.
Meanwhile, non-interest income reached P6.2 billion, driven by the 7-percent growth in service fees and commissions to P3.3 billion and net trading and FX gains of P1.4 billion.
Gross operating revenues for the period rose 13 percent to P27.6 billion, while operating cost grew 8 percent to P14.5 billion. As a result, cost-to-income ratio improved to 53 percent from 56 percent in the same period last year.
Non-performing loans ratio was relatively stable at 1.4 percent and the NPL cover substantially improved to 114 percent.