Metropolitan Bank & Trust Co. (Metrobank) posted record earnings of PHP42.2 billion, 28.9 percent higher year-on-year.
This translated to a return on equity (ROE) of 12.5 percent, higher than 10.3 percent in 2022.Total consolidated assets expanded by 9.2 percent to P3.1 trillion in 2023, maintaining its status as the country’s second largest private universal bank.
The bank’s strong profitability and substantial capital base prompted the Board of Directors to approve a total cash dividend of P5.00 per share for the year.
The regular dividend was raised from P1.60 to P3.00 per share to be paid out on a semi-annual basis at P1.50 per share. In addition, a special cash dividend of P2.00 per share was also declared. The first payout of P3.50 will be given to shareholders on record as of March 8, 2024.
“Our solid performance in 2023 was strongly driven by our 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 Metrobank President Fabian S. Dee.
The bank’s net interest income grew by 22.7 percent fueled by higher loan demand and better net interest margin of 3.9 percent.
Gross loans rose by 7.6 percent year-on-year, with consumer portfolio increasing by 15.9 percent on strong discretionary spending, outpacing the 5.5 percent rise in commercial loans.
Meanwhile, total deposits grew by 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 increased by 9.0 percent to P16.4 billion, largely driven by the expanding consumer business. Trading and forex gains were steady at P4.0 billion.
Cost to income ratio eased to 52.1 percent from 54.3 percent in 2022. The robust revenue growth offset the 14.0 percent increase in operating expenses, which was driven by transaction-related taxes, technology costs and higher manpower in line with capacity expansion.
