Ty-led Metropolitan Bank & Trust Co. (Metrobank), the country’s second-largest bank, registered a 12.4 percent improvement in net income to a record P35.7 billion in the first nine months of 2024 compared to the same period a year ago.

In a disclosure to the Philippine Stock Exchange, the bank said the higher earnings were supported by its strong asset expansion, recovery in non-interest income, and improved asset quality.

This translated to a 12.9 percent return on equity, higher than the 12.8 percent recorded in the same period last year.

"Our robust results reflect our strong drive to continue supporting the growing needs of our clients, all while preserving the health of our portfolio," said Metrobank President Fabian S. Dee. 

He added that, “We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook."

Gross loans jumped 15.6 percent year-on-year as of September. Commercial loans surged 16.6 percent as firms resumed capital spending and built up their inventories. 

On the other hand, consumer loans grew by 12.3 percent, driven by a 16.6 percent rise in net credit card receivables and a 15.7 percent growth in auto loans.

Meanwhile, total deposits stood at P2.3 trillion with low-cost Current and Savings Accounts (CASA) making up for 62.3 percent of total deposits.

Net interest income climbed by 11.0 percent to P85.7 billion, with net interest margin at 3.90 percent for the January to September period.

The bank said it took advantage of favorable market developments during the third quarter, generating combined trading and foreign exchange gains of P5.6 billion in the nine months ending September, which is 56.4 percent higher year-on-year. 

In addition, fee income edged up to P12.5 billion for the same period.
Operating costs increased by 11.2 percent year-on-year to P57.0 billion as of September, driven by manpower, taxes and licenses, IT, and marketing costs as the bank continued to invest for growth. The cost to income ratio stood at 52.2 percent during the period.

As a result, pre-provision operating profit increased by 7.9 percent to P52.8 billion.

Metrobank’s non-performing loans (NPLs) ratio further eased to 1.59 percent, reflecting that the bank has continued prudent lending behavior. ‘

As a result, provision costs declined by 48.2 percent year on year. Nonetheless, NPL cover remains high, at 161.9 percent, providing a substantial buffer against any risks to the portfolio.

Metrobank’s total consolidated assets stood at P3.34 trillion, maintaining its status as the country’s second-largest private universal bank. Total equity reached P380.1 billion.

The Bank’s capital ratios are still among the highest in the industry, with Capital Adequacy Ratio at 17.1 percent and Common Equity Tier 1 (CET1) ratio at 16.3 percent, all well above the BSP’s minimum regulatory requirements. 

In addition, Metrobank’s Liquidity Coverage Ratio (LCR) is healthy at 258.4 percent.