Metropolitan Bank & Trust Co. (Metrobank) delivered strong results in 2022 with a 48 percent increase in net income to P32.8 billion on the back of better corporate and consumer lending businesses, healthy fee income, subdued operating expense growth and lower provisions on stable asset quality.
For the October to December period alone, the bank’s earnings rose to P9.3 billion, a 55 percent increase from a year ago.
With the bank’s strong capital base and higher profitability, its board of directors approved a total cash dividend of P3.00 per share for the year. The regular dividend of P1.60 per share will be paid out on a semi-annual basis at P0.80 per share. On top of this, a special cash dividend of P1.40 per share was also declared.
“Backed by the strategies we initiated during the pandemic, our solid performance and the recognitions we received in 2022 reflect our efforts to support our clients’ growing needs as the economy reopens. With our strong balance sheet and highly capable team of Metrobankers, we stand ready to continue to be the trusted partner of all our stakeholders for the long term,” said Metrobank President Fabian S. Dee.
Metrobank’s net interest income jumped by 14 percent fueled by higher loan demand and better net interest margin of 3.6 percent. Gross loans expanded by 14 percent year-on-year, supported by a 15 percent growth in corporate and commercial loans as businesses started to build their inventories and resumed their investment spending. Likewise, net credit card loans increased by 29 percent, leading the recovery in consumer lending.
Total deposits grew by 15 percent from the previous year to P2.2 trillion with low-cost current and savings accounts (CASA) stable at P1.5 trillion.
The bank’s modest growth in non-interest income was supported by an 11 percent increase to P23.5 billion in fees and other income. Operating expense growth was controlled at just 3 percent to P61.0 billion, bringing down the cost-to-income ratio to 54 percent from 59 percent in 2021. This helped drive the 24 percent rise in pre-provision operating profit to P52.0 billion in 2022.
Metrobank’s non-performing loans (NPLs) ratio eased to 1.9 percent from 2.2 percent in 2021 and better than the industry’s 3.3 percent. Moreover, its NPL cover remained substantial at 172.4 percent, reflecting strong ability to cover any potential risks to portfolio health.
Metrobank closed 2022 with total consolidated assets of P2.8 trillion, maintaining its status as the country’s second largest private universal bank. Total equity stood at P318.5 billion. Its capital ratios remain one of the highest in the industry, with capital adequacy ratio at 17.7 percent and common equity Tier 1 (CET1) ratio at 16.8 percent, all well-above the minimum regulatory requirements.
The bank brought home major accolades from top financial publications in 2022. Metrobank was named as the country’s Bank of the Year by The Banker; received back- to-back awards from the Asian Banker as the Strongest Bank in the Philippines; recognized as the Best Bank in the country by Euromoney; and was awarded Best Corporate Bank and Best Domestic Private Bank by Asiamoney.
