Metropolitan Bank & Trust Company (Metrobank) saw its net income rise by 45% to PHP23.4 billion in the nine months ending September 2022 from a year ago, propelled by the continued expansion of the Bank’s lending portfolio, better margins, healthy fee income, stable operating costs, and lower provisions.
Metrobank’s earnings surged by 77% to PHP7.8 billion in the third quarter, from the same period last year.
“We improved our profitability by taking on opportunities as the economy reopened while keeping our balance sheet strong and improving efficiency level. Our position of strength, and substantial reserves will enable us to continue on supporting our customers as they navigate the impact of the global external headwinds,” said Metrobank President Fabian S. Dee.
“We will continue to focus on achieving a sustainable growth for the Bank beyond our 60th year,” he adds. Metrobank celebrated its diamond year last September 5.
The Bank’s net interest income was up by 10% to PHP62.1 billion, with net interest margin further improving to 3.5%. The Bank’s gross loans jumped by 12% year-on-year to PHP1.4 trillion, driven by a 15% growth in corporate and commercial lending and 22% increase in gross credit card receivables.
Total deposits also rose by 11% to PHP2 trillion as CASA deposits climbed by 5% to PHP1.5 trillion from a year ago.
Meanwhile, the Bank’s non-interest income was stable on the back of a 15% rise in fees and charges.
Operating expenses stayed in control at PHP44.5 billion supported by operational efficiency gains. As a result, cost-to-income ratio improved to 54.5% from 59.0% posted in the same period last year.
The sustained rise in the Bank’s revenues and stable costs bolstered its pre-provisioning profit, which rose by 20% to PHP37.7 billion.
Non-performing loans (NPLs) remain manageable at 2.1% of total loans, still significantly below the industry’s 3.6% NPL ratio in August. Restructured loans improved to 0.5% of total loans, compared with the industry’s 2.7%. Ample NPL cover of 172% enabled the Bank to further trim down provisions by 43% in the January to September period.
Metrobank is the country’s second largest private universal bank with consolidated assets of PHP2.7 trillion and total equity of PHP308.9 billion. The Bank’s balance sheet remains strong with its capital adequacy ratio (CAR) standing at 17.2% and common equity Tier 1 (CET 1) at 16.3%, both well-above the minimum regulatory requirement.
Before turning 60, Metrobank was named the “Strongest Bank in the Philippines” by Asian Banker in 2021. This year, it was recognized by Euromoney as ‘The Best Bank in the Philippines’. In addition, the Bank’s business units continue to garner awards for its leading services. Asiamoney also named Metrobank as the Best Corporate Bank in the Philippines, citing its exceptional service to corporate and middle-market clients. The Asset likewise named Metrobank as the Top Sellside firm for secondary market for Peso corporate and government bonds.