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September 28, 2022

Metrobank Q1 profit up 3.4% to P8.1B

The net income of Metropolitan Bank & Trust Co. (Metrobank) led by bankero Fabian Dee climbed by 3.4 percent to P8.1 billion in the first quarter of the year from P9.83 billion in the same quarter last year on the back of higher net interest earnings and lower provision for potential loan losses.

“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,” the bankero said.

Dee attributed the solid performance of the Ty-led bank from January to March this year to stable net interest income supported by recovery in loans, modest rise in non-interest income and marginal costs growth.

“The strategies that we have put in place should enable the bank to achieve sustainable growth along with the expanding domestic economy,” the bankero added.

Metrobank’s net interest income inched up by 1.4 percent to P19.3 billion from P19.04 billion, while other income including service charges, fees and commissions as well as trading securities and foreign exchange gains went up by 4.7 percent to P8.32 billion from P7.94 billion.

The listed bank’s operating expenses grew by 9.5 percent to P10.69 billion in the first quarter of the year from P9.77 billion in the same quarter last year.

According to Metrobank, provision for credit and impairment losses declined by 18.4 percent to P2.05 billion from P2.51 billion.

The bank’s loan book expanded by five percent to P1.3 trillion, led by a robust 10 percent expansion in corporate lending and eight percent increase in credit card receivables.

Growth was not at the expense of quality as non-performing loans (NPLs) declined by five percent to P27 billion, while its NPL ratio improved to 2.2 percent from 2.4 percent and NPL cover remained ample at 179 percent.

Metrobank’s deposits increased by 17 percent to P2 trillion.

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 percent and common equity Tier 1 (CET 1) of 17.6 percent.

These positive drivers improved the bank’s average return on equity (ROE) to 10 percent.

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