Metrobank profits climb 35.6% to P31.8 B
The Ty-controlled Metropolitan Bank & Trust Co. (Metrobank) recorded a P31.8 billion net income for the first nine months of this year, 35.6 percent higher than P23.4 billion logged in the same period in 2022, attributed to improved margins and asset expansion.
In a disclosure to the Philippine Stock Exchange (PSE), Metrobank’s current net income is also driven by “healthy non-interest income growth as asset quality continued to improve,” with an increase in Return of Equity by 12.8 percent in 2023 from 10 percent last year.
Metrobank President Fabian S. Dee said the bank’s sustained growth shows its “strength and resilience despite unpredictable market conditions.”
“We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” Dee added.
The bank’s revenues grew 21.9 percent for the first nine months of this year to P99.5 billion from P81.7 billion in the same period in 2022.
Higher margins resulted in a 24.4 percent growth of its net interest income to P77.2 billion this year from P62 billion in 2022.
Gross loans grew by 7.1 percent year-on-year as consumer loans, net credit card receivables, and auto loans all increased by 16.5 percent, 29.5 percent, and 21.6 percent respectively. Commercial loans also rose by 4.8 percent.
Non-performing loans (NPLs) decreased to 1.7 percent from 2.1 percent last year as the bank continued to exercise caution to maintain its portfolio’s quality.
Meanwhile, deposits also gained 14.5 percent to P2.3 trillion this year, with Current and Savings Accounts (CASA) accounting for 59.2 percent of deposits.
Moreover, trading and foreign exchange gains also “expanded by 45.5 percent to P3.6 billion, while fee income rose by 9.7 percent to P12.2 billion,” the bank reported.
Cost growth also improved from 54.5 percent last year to 51.5 percent this year due to “higher transaction-related taxes, technology related costs, and capacity expansion.”
Metrobank’s status as the country’s second largest private universal bank is maintained as its total consolidated assets was recorded at P3 trillion, and total equity was at P342.2 billion.
The bank’s capital ratios are also 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, adhering above the central bank’s minimum regulatory requirements.