By James A. Loyola
Metropolitan Bank & Trust Company (Metrobank) reported a 15 percent hike in net income to P6.8 billion for the first quarter of 2019 the P5.9 billion earned in the same period last year.
(MANILA BULLETIN)
The bank said its solid performance for the quarter was driven by its double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income, and prudent operational expenditures.
“We are pleased with the favorable business results in the first three months. The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly, quality growth,” said Metrobank President Fabian S. Dee.
He added that, “we remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry. Against this backdrop, we will continue to focus on key initiatives that will impact customer experience, efficiency, governance, and sustain profitability for the Bank.”
At the end of the first quarter, total deposits stood at P1.6 trillion, with the Bank’s CASA ratio at a stable 61 percent to total deposits.
This supported the 8.5 percent growth in net loans and receivables to P1.4 trillion, which was led by the commercial loan segment comprised of top corporate accounts, middle market and SMEs.
Metrobank’s net interest margin for the period likewise attained notable improvement, rising 9 basis points (compared to last year) to 3.84 percent.
Net interest income came in at P18.1 billion, posting a 12 percent growth year-on-year, and accounted for 74 percent of the Bank’s total revenues of P24.6 billion.
Rounding out the Bank’s growth trajectory was its non-interest income, which rose by 8 percent to P6.5 billion. This included a 9 percent increase in service fees and commissions to P3.1 billion, P1.5 billion in net trading and FX gains, and P1.6 billion in miscellaneous income.