Despite slow loan demand due to the pandemic, Metropolitan Bank & Trust Company (Metrobank) recorded a 27.1 percent increase in net income to P7.8 billion in the first quarter of the year.
Fabian Dee, Metrobank President, said the robust net income growth was due to “stable asset quality, strong non-interest income performance, and marginal rise in operating expenses.”
Dee said the bank’s capital position is double the regulatory minimum, with capital adequacy ratio (CAR) of 19.9 percent and Common Equity Tier 1 (CET1) of 19.0 percent.
“Our reserves also cover 166 percent of our non-performing loans (NPL).
Dee, however, said loan demand remained slow and net interest income trended lower.
Non-interest income surged by 28 percent to P7.9 billion while fee-based revenue is stable at P3.3 billion despite business activities still being slower than pre-pandemic levels.
Trust fee income grew at a robust 20 percent, in line with the 30 percent growth in assets under management. Trading and FX gains doubled to P2.9 billion as the Treasury group realized gains prior to the reversal of yields.
Current account and savings account (CASA) deposits grew by 16 percent to P1.3 trillion.
NPL ratio stayed at 2.4 percent from end-2020 while restructured loans comprised only 0.4 percent of total loans.
The bank set aside provisions of P2.5 billion in the first quarter, which is 50 percent lower year-on-year. — Jimmy C. Calapati
