Metrobank income rises to P6.8B
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Tue, 07 May 2019 16:19:02 +0000
THE Metropolitan Bank & Trust Co. (Metrobank) reported on Tuesday that its net income increased to P6.8 billion in the first quarter of 2019.
In a disclosure, the listed Ty-led bank said the amount was a 15.2-percent surge from P5.9 billion in the same period last year.
It credited the impoved profit to the “double-digit growth in operating income on the back of consistent loan growth and margin expansion, higher fee-based income, and prudent operational expenditures.”
Total deposits stood at P1.6 trillion, with the lender’s current account and savings account ratio at a stable 61 percent to total deposits.
This was said to have supported the 8.5-percent growth in net loans and receivables to P1.4 trillion, which was led by the commercial loan segment comprised of top corporate accounts, middle market, and small and medium enterprises.
Metrobank’s net interest margin rose to 3.84 percent in the period, as its net interest income came in at P18.1 billion, up 12 percent, and accounted for 74 percent of the bank’s total revenues of P24.6 billion.
Noninterest income rose by 8 percent to P6.5 billion. This includes the P3.1-billion profit in service fees and commissions, P1.5 billion in net trading and foreign exchange gains, and P1.6 billion in miscellaneous income.
“Fee-related revenues, as well as trading income, continue to benefit from increased customer business in fixed income and foreign exchange,” the lender said.
Operating expenses slowed down by 10 percent to P13.5 billion, with manpower-related costs accounting for P5.4 billion of the full amount, while the balance was spent on systems and process improvements, as well as continued investments in information technology.
Metrobank’s asset quality metrics remained healthy, with nonperforming loans (NPL) ratio slightly up at 1.5 percent, while provisions for credit and impairment losses hit P2.4 billion.
Its consolidated assets stood at P2.3 trillion and equity at P288.7 billion.
The bank’s capital ratios are above minimum requirements, with total capital adequacy ratio at 17.4 percent and common equity tier 1 ratio at 15 percent.
“We are pleased with the favorable business results in the first three months. The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly, quality growth,” Metrobank President Fabian Dee said.
“We remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry. Against this backdrop, we will continue to focus on key initiatives that will impact customer experience, efficiency, governance, and sustain profitability for the bank,” he added.
Metrobank shares increased by P1 or 1.37 percent to close at P73.85 each on Tuesday.
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