Metrobank 1Q net profit at P8.0 billion; higher loans with better asset quality
Metropolitan Bank & Trust Company (Metrobank) posted net income of P8.0 billion in the first quarter of 2022. Metrobank’s solid performance is attributed to stable net interest income supported by recovery in loans, modest rise in non-interest income and marginal costs growth. Asset quality remains healthy, prompting further decline in provisions. These positive drivers improved the Bank’s average return on equity (ROE) to 10%.
“We are encouraged by the sustained pick-up in economic activities as Metrobank stands ready to support our clients in their funding plans and investment needs,” said Metrobank President Fabian S. Dee. “The strategies that we have put in place should enable the Bank to achieve sustainable growth along with the expanding domestic economy,” adds President Dee.
Gross loans rose by 5% YoY to P1.3 trillion, led by a robust 10% expansion in corporate lending and 8% increase in credit card receivables. Loan growth was supported by a 17% jump in total deposits to P2.0 trillion. CASA deposits rose by 10%, resulting in CASA ratio of 71%. The sustained rise in low-cost CASA helped further lower funding cost. As a result, net interest income reached P19.3 billion.
Meanwhile, non-interest income went up by 5%, driven by a 7% jump in service fees and commissions. Even with market volatility in the first quarter, the Bank was able to generate P2.3 billion in trading and FX gains.
Operating costs remained under control, inching up by just 1% to P14.9 billion reflecting the ongoing efforts to enhance productivity and operational efficiency. As such, cost-to-income ratio improved to 54.1% from 54.6% in the same period last year.
Growth was not at the expense of quality as non-performing loans (NPLs) declined by 5% to P27.0 billion. The resulting NPL ratio improved to 2.2% from 2.4% last year, while NPL cover remained ample at 179%. Solid asset quality allowed the Bank to trim down provisions further.
Metrobank is the country’s second largest private universal bank with consolidated assets of P2.6 trillion and total equity of P303.8 billion. The Bank’s balance sheet remains strong with capital adequacy ratio (CAR) of 18.5% and common equity Tier 1 (CET 1) of 17.6%, both substantially higher than the regulatory minimum.
As a testament to the Bank’s aim to deliver its full potential across all its business segments, Metrobank Private Wealth was named the Best Domestic Private Bank in the Philippines during the Asiamoney 2022 Private Banking Awards. “Our goal at Metrobank Private Wealth is to be our clients’ most trusted financial advisor and to develop a relationship with them that will span generations,” said Lizette Perez, Senior Vice President and Head of Metrobank Private Wealth.
In 2021, the Bank was awarded the Best Multi-Product Financing Deal and Best Syndicated Loan Deal at the Asset Triple-A Awards. In recognition of its overall fortress balance sheet and resilience, Metrobank was hailed the Strongest Bank in the Philippines by the Asian Banker and Best Domestic Bank in the Philippines by Asiamoney.
ABOUT METROBANK:
Metrobank is one of the strongest and well-capitalized banks in the country. The Bank believes that its robust capital position and balance sheet strength will provide ample support as it navigates through these uncertain times. Capital ratios are among the highest in the industry, with total CAR at 18.5% and Common Equity Tier 1 (CET1) ratio at 17.6%. Consolidated assets stood at P2.6 trillion at the end of March 2022, making Metrobank the country's second largest private universal bank.
