Metrobank earns P6.12 billion in Q1, doubles loan loss provision
Published Apr 30, 2020 12:00 am
Metropolitan Bank & Trust Company (Metrobank) posted P6.12 billion in net income for the first quarter of 2020, lower by 9.3 percent from P6.75 billion earned in the same period last year.
(Photo courtesy of metrobank.com.ph)
But the bank’s core business grew strongly with sustained 13% gross revenue growth driven by 6.0% growth in loans, 8.0% growth in deposits and non-interest income reaching P6.2 billion.
Recognizing the potential impact of the COVID-19 pandemic, the bank proactively doubled loan loss provisions to P5.0 billion, which tempered this quarter’s net income.
“Our underlying business is strong. We started the year with healthy growth in loans, deposits and other revenue streams.” said President Fabian S. Dee.
“However, current conditions point to an expected slowdown in the business environment and challenges ahead. Mindful of the potential impact of this pandemic, we decided to take the prudent approach of increasing provisions to cover anticipated risks. We have weathered periods of crisis in the past and we are confident that we are well prepared, as the bank has one of the strongest capital positions in the industry. We will continue to adjust our processes to ensure the sustained delivery of meaningful banking services; and implement the necessary measures to keep both our customers and our people safe.” Mr. Dee added.
For the quarter ending March, the Bank recorded an 8% increase in total deposits to P1.7 trillion. This was achieved with the 18% growth in CASA deposits, resulting in an improved CASA ratio of 66% from 61%last year.
Metrobank said it continued to support customers’ business requirements across all segments from corporates, middle market, SMEs and retail. This is reflected in the 6% growth in net loans and receivables to P1.4 trillion.
Meanwhile, the bank’s non-interest income reached P6.2 billion, driven by the 7% growth in service fees and commissions to P3.3 billion, and net trading and FX gains of P1.4 billion.
Gross operating revenues for the period rose 13% to P27.6 billion, while operating cost grew 8% to P14.5 billion. As a result, cost-to-income ratio improved to 53% from 56% in the same period last year.
For the first quarter, the bank’s non-performing loans (NPL) ratio was relatively stable at 1.4% and the NPL cover substantially improved to 114%. To anticipate the possible impact of the pandemic, the Bank increased provisions to P5.0 billion, more than double the P2.4 billion in the first quarter last year.
Metrobank is one of the largest and most stable banks in the country, with a strong balance sheet and asset base of P2.4 trillion. The Bank is well-capitalized with total equity of P305 billion. Capital ratios continue to be well above the regulatory minimum requirement of 10% for total Capital Adequacy Ratio (CAR). The bank’s total CAR is at 17.6% and Common Equity Tier 1 (CET1) ratio is at 16.3%.
Amidst the enhanced community quarantine (ECQ), Metrobank continues to deliver meaningful banking services to its customers nationwide. More than 60% of branches remain open with online digital services significantly growing in enrolment and usage.
Moreover, the Metrobank and GT Capital Holdings Group have pledged a P200 million fund to help communities most impacted by the ECQ and support the fight against the spread of the virus. Thru the Metrobank Foundation and GT Foundation, initiatives have been launched to aid vulnerable barangays, help produce more test kits, and provide PPEs for frontline health workers and soldiers. These Group efforts are on top of the assistance extended by the Bank to customers to help manage their finances, as well as to employees.
(Photo courtesy of metrobank.com.ph)
But the bank’s core business grew strongly with sustained 13% gross revenue growth driven by 6.0% growth in loans, 8.0% growth in deposits and non-interest income reaching P6.2 billion.
Recognizing the potential impact of the COVID-19 pandemic, the bank proactively doubled loan loss provisions to P5.0 billion, which tempered this quarter’s net income.
“Our underlying business is strong. We started the year with healthy growth in loans, deposits and other revenue streams.” said President Fabian S. Dee.
“However, current conditions point to an expected slowdown in the business environment and challenges ahead. Mindful of the potential impact of this pandemic, we decided to take the prudent approach of increasing provisions to cover anticipated risks. We have weathered periods of crisis in the past and we are confident that we are well prepared, as the bank has one of the strongest capital positions in the industry. We will continue to adjust our processes to ensure the sustained delivery of meaningful banking services; and implement the necessary measures to keep both our customers and our people safe.” Mr. Dee added.
For the quarter ending March, the Bank recorded an 8% increase in total deposits to P1.7 trillion. This was achieved with the 18% growth in CASA deposits, resulting in an improved CASA ratio of 66% from 61%last year.
Metrobank said it continued to support customers’ business requirements across all segments from corporates, middle market, SMEs and retail. This is reflected in the 6% growth in net loans and receivables to P1.4 trillion.
Meanwhile, the bank’s non-interest income reached P6.2 billion, driven by the 7% growth in service fees and commissions to P3.3 billion, and net trading and FX gains of P1.4 billion.
Gross operating revenues for the period rose 13% to P27.6 billion, while operating cost grew 8% to P14.5 billion. As a result, cost-to-income ratio improved to 53% from 56% in the same period last year.
For the first quarter, the bank’s non-performing loans (NPL) ratio was relatively stable at 1.4% and the NPL cover substantially improved to 114%. To anticipate the possible impact of the pandemic, the Bank increased provisions to P5.0 billion, more than double the P2.4 billion in the first quarter last year.
Metrobank is one of the largest and most stable banks in the country, with a strong balance sheet and asset base of P2.4 trillion. The Bank is well-capitalized with total equity of P305 billion. Capital ratios continue to be well above the regulatory minimum requirement of 10% for total Capital Adequacy Ratio (CAR). The bank’s total CAR is at 17.6% and Common Equity Tier 1 (CET1) ratio is at 16.3%.
Amidst the enhanced community quarantine (ECQ), Metrobank continues to deliver meaningful banking services to its customers nationwide. More than 60% of branches remain open with online digital services significantly growing in enrolment and usage.
Moreover, the Metrobank and GT Capital Holdings Group have pledged a P200 million fund to help communities most impacted by the ECQ and support the fight against the spread of the virus. Thru the Metrobank Foundation and GT Foundation, initiatives have been launched to aid vulnerable barangays, help produce more test kits, and provide PPEs for frontline health workers and soldiers. These Group efforts are on top of the assistance extended by the Bank to customers to help manage their finances, as well as to employees.