Metropolitan Bank & Trust Co.’s (Metrobank) booked a 35.6 percent year-on-year growth to P31.8 billion in its net income for the nine months ended September 2023, driven by the bank’s asset expansion, improving margins, and healthy non-interest income growth as asset quality continued to improve.
This translated to a return on equity of 12.8 percent, higher than the 10.0 percent recorded in the same period last year.
In the third quarter alone, the bank posted a robust 38.7 percent growth in net earnings to P10.9 billion from the same period last year.
“The sustained growth of the bank shows that we remain strong and resilient despite the unpredictable market conditions. We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” said Metrobank President Fabian S. Dee.
The bank’s net interest income surged by 24.4 percent to P77.2 billion as of September from a year ago, on the back of higher margins. Gross loans climbed by 7.1 percent year-on-year, with consumer loans increasing by 16.5 percent. Net credit card receivables surged by 29.5 percent while auto loans grew by 21.6 percent. Meanwhile, commercial loans were up by 4.8 percent, tracking the country’s modest economic growth.
Meanwhile, total deposits grew by 14.5 percent to P2.3 trillion from a year ago, of which low-cost Current and Savings Accounts (CASA) accounted for 59.2 percent.
Trading and foreign exchange gains expanded 45.5 percent to PHP3.6 billion, while fee income rose by 9.7 percent to PHP12.2 billion.
Cost to income ratio notably improved to 51.5 percent from 54.5 percent last year. The robust 21.9 percent growth in revenues outstripped the 15.1 percent increase in operating expenses. Higher transaction-related taxes, technology related costs and capacity expansion were the key drivers of cost growth.
As a result, pre-provision operating profit accelerated by 29.9 percent to PHP49.0 billion.
Meanwhile, Metrobank’s non-performing loans (NPLs) ratio further eased to 1.7 percent from 2.1 percent last year as it continued to practice prudence to maintain the quality of its portfolio. Restructured loans account for only 0.4 percent of total loans. NPL cover further increased to a high of 187.1 percent, keeping a substantial buffer againstmacro uncertainties that could increase portfolio risks.
Metrobank’s total consolidated assets reached almost P3.0 trillion, maintaining its status as the country’s second largest private universal bank. Total equity reached P342.2 billion.
The bank’s capital ratios are still among the highest in the industry, with capital adequacy ratio at 18.4 percent and Common Equity Tier 1 (CET1) ratio at 17.6 percent, all well-above the BSP’s minimum regulatory requirements.
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 940 domestic branches nationwide, more than 2,300 ATMs, and above 30 foreign branches, subsidiaries, and representative offices.