Metropolitan Bank & Trust Co.’s (Metrobank) net income rose by 12.4 percent to a record P35.7 billion in the nine months ending September from a year ago, supported by the bank’s strong asset expansion, recovery in non-interest income and improved asset quality.
This translated to a 12.9 percent return on equity, higher than the 12.8 percent recorded in the same period last year.
Metrobank’s total consolidated assets stood at P3.34 trillion, maintaining its status as the country’s second largest private universal bank. Total equity reached P380.1billion.
“Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio,” said Metrobank President Fabian S. Dee.
“We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook,” added Dee.
Gross loans jumped15.6 percent year-on-year as of September. Commercial loans surged 16.6 percent as firms resumed capital spending and built up their inventories. On the other hand, consumer loans grew by 12.3 percent driven by a 16.6 percent rise in net credit card receivables and 15.7 percent growth in auto loans.
Meanwhile, total deposits stood at P2.3 trillion. Low-cost Current and Savings Accounts (CASA) made up for 62.3 percent of total deposits.
Net interest income climbed by 11.0 percent to P85.7 billion, with net interest margin at 3.90 percent for the January to September period.
The bank took advantage of favorable market developments during the third quarter, generating combined trading and foreign exchange gains of P5.6 billion in the nine months ending September, which is 56.4 percent higher year-on-year. In addition, fee income edged up to P12.5 billion for the same period.
Operating cost increased by 11.2 percent year-on-year to P57.0 billion as of September, driven by manpower, taxes and licenses, IT and marketing costs as the bank continued to invest for growth. Cost to income ratio stood at 52.2 percent during the period.
As a result, pre-provision operating profit increased by 7.9 percent to P52.8 billion.
Metrobank’s non-performing loans (NPLs) ratio further eased to 1.59 percent, reflecting that the bank has continued to remain prudent in its lending business. As a result, provision costs declined by 48.2 percent year on year. Nonetheless, NPL cover remains high, at 161.9 percent, providing a substantial buffer against any risks to the portfolio.
The bank’s capital ratios are still among the highest in the industry, with CapitalAdequacy Ratio at 17.1 percent and Common Equity Tier 1 (CET1) ratio at 16.3 percent, all well above the BSP’s minimum regulatory requirements. In addition, Metrobank’s Liquidity Coverage Ratio (LCR) is healthy at 258.4 percent.
Metrobank is the country’s second largest private universal bank that empowers both retail and business clients with customized financial products and services fit to help reach their goals and full potential.
It has an extensive consolidated network that spans over 950 domestic branches nationwide, more than 2,300 ATMs, and around 30 foreign branches, subsidiaries, and representative offices.
