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April 12, 2024

Ty family’s Metrobank posts stellar growth: Earnings hit all-time high of P42.2 billion in 2023

Metropolitan Bank & Trust Co., the Ty Group’s banking arm, reported a new milestone as its net income surged by 28.9 percent to a record P42.2 billion.

Fabian S. Dee, president of Metrobank, credited the bank’s strong performance to several factors including asset expansion, improved margins, enhanced efficiency levels, and strengthened asset quality.

He emphasized the bank’s commitment to long-term growth strategies and praised the dedication of its team and the resilience of its balance sheet in achieving these results.

Key highlights of Metrobank’s performance include a 22.7 percent increase in net interest income, driven by heightened loan demand and improved net interest margin. Gross loans rose 7.6 percent with consumer loans outpacing commercial loans.

Total deposits also increased by 7.3 percent to P2.4 trillion, with low-cost current and savings accounts (CASA) contributing over 60 percent of the total.

Fee income climbed nine percent to P16.4 billion, mainly driven by the expansion of the bank’s consumer business. Trading and forex gains remained stable at P4 billion.

Despite a 14 percent increase in operating expenses due to various factors including transaction-related taxes, technology costs, and additional manpower, the bank managed to improve its cost-to-income ratio to 52.1 percent from 54.3 percent in the previous year.

Furthermore, Metrobank demonstrated improved asset quality, with the non-performing loans (NPLs) ratio decreasing to 1.7 percent from 1.9 percent in 2022, accompanied by a substantial NPL cover of 180.3 percent.

In terms of capital strength, Metrobank’s total equity stood at P356.7 billion, with a capital adequacy ratio of 18.3 percent and a Common Equity Tier 1 (CET1) ratio of 17.4 percent.

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