Metrobank gets earnings boost from assets expansion, margins

Metropolitan Bank & Trust Co. said Friday asset expansion, better margins and increased non-interest income drove net income in the first nine months 36 percent higher to a record-high P31.8 billion.

Metrobank, the lending arm of the Ty Group, said the net profit raised return on equity of 12.8 percent so far this year from 10.0 percent in the same period last year. 

In the third quarter alone, net profit surged nearly 39 percent to P10.9 billion. 

“The sustained growth of the bank shows that we remain strong and resilient despite the unpredictable market conditions. We will continue to work on keeping our sound capital and liquidity positions as we look for more market opportunities,” said Metrobank president Fabian Dee in  a statement.

Metrobank reported net interest income rose 24 percent to P77.2 billion on the back of higher margins. 

Gross loans climbed by 7 percent, with consumer loans climbing by close to 17 percent. Net credit card receivables were up 30 percent while auto loans rose 22 percent. Commercial loans increased 4.8 percent, tracking the country’s modest economic growth. 

Metrobank said its total deposits was up 15 percent to P2.3 trillion, with low-cost Current and Savings Accounts accounting  for 59 percent. 

Trading and foreign exchange gains expanded 45 percent to P3.6 billion while fee income rose by 9.7 percent to P12.2 billion. 

The 22 percent revenue growth outstripped the 15 percent increase in operating expenses. 

Metrobank reported that non-performing loans ratio further eased to 1.7 percent from 2.1 percent last year as it continued to practice prudence to maintain the quality of its portfolio. Restructured loans account for only 0.4 percent of total loans. NPL cover further increased to a high of 187.1 percent, keeping a substantial buffer against macro uncertainties that could increase portfolio risks.