Metropolitan Bank & Trust Co. said Friday net income grew 46 percent to P16.1 billion in the first nine months from a year ago.
Earnings surged 131 percent to P4.4 billion in the third quarter, with proactive non-performing loan management, resulting in lower provisions.
Healthy fee and other income and controlled operating expense growth contributed to the positive earnings performance.
“Our strategy to build a stronger balance sheet has given us the capacity to withstand prolonged risks and also enabled us to implement strategies to optimize our operating performance in the medium term,” said Metrobank president Fabian Dee.
“We will continue to help economic recovery as we see a gradual increase in lending activities, as businesses are more able to adapt to the pandemic,” said Dee.
Total operating income reached P75.9 billion in the first nine months. Net interest income continued to improve from the second quarter, as net interest margin started to stabilize at 3.4 percent. The sequential quarterly pick-up in corporate and credit card loans was also sustained.
Funding costs were stable, supported by a 13-percent growth in low-cost current account and savings account deposits as clients continued to park their excess liquidity with Metrobank. CASA ratio remained high at 74.9 percent.
Fees and other non-interest income rose by 20 percent to P15.2 billion in the first nine months, reflecting higher transaction volumes and cross selling initiatives. Operating costs were marginally up by 1 percent at P44.4 billion. These favorable trends mitigated the impact of weak trading income.
Provision expenses declined by 72 percent to P10.0 billion as Metrobank’s portfolio health improved, with NPL ratio further easing to 2.1 percent, well below the industry’s 4.5 percent in September 2021. Likewise, restructured loans ratio at 0.8 percent was much lower than the industry ratio of 3.1 percent. As such, NPL cover increased to 191 percent.
Metrobank is the country’s second largest private universal bank with consolidated assets of P2.4 trillion as of end-September 2021. Total equity reached P317.1 billion, leading to a high capital adequacy ratio of 20.7 percent and common equity tier one ratio of 19.8 percent.
The bank’s formidable balance sheet and exceptional asset quality amid a challenging environment were recognized by The Asian Banker and Asiamoney.
Metrobank was hailed the Strongest Bank in the Philippines by The Asian Banker and was recognized as the Best Domestic Bank in the Philippines during the Asiamoney Bank Awards 2021.
“To be recognized for our strength and resilience amid the worldwide economic uncertainty brought about by the pandemic is a big honor for all Metrobankers,” said Dee.