George Ty-owned Metropolitan Bank and Trust Company (Metrobank) recorded a drop in net income last year from the 2013 level due to lower trading gains.
The bank booked a net income of P20.1 billion in 2014, down from the previous year’s P22.5 billion.
However, total resources hit a new high of P1.6 trillion, up 16 percent from P1.4 trillion in 2013.
Total operating income in 2014 fell to P74.8 billion from P78.9 billion despite net interest income going up 20 percent to P45.8 billion and non-interest income reaching P29.6 billion.
Metrobank posted higher deposits and loans last year. It said deposits went up 17 percent to P1.2 trillion while loans and receivables increased 24 percent to P759.5 billion from a year ago.
“The strong performance in the bank’s core business was driven by robust growth in loans and deposits, and relatively stable spreads amidst the low interest rate environment and tough competition,” the bank said.
Non-interest income consisted of P8.9 billion in service charges and commissions, P3.2 billion from trading and forex gains, and miscellaneous income of P17.5 billion. Miscellaneous income included the sale of non-core assets as well as foreclosed properties valued at P10.20 billion.
The bank’s non-performing loans (NPL) ratio also improved—dropping to a low of 1.0 percent—while NPL coverage increased to 165 percent. Credit and impairment losses accounted to P4.8 billion.
For 2014, Metrobank added 64 new branches, increasing its domestic network to 920 branches, half of which are located in Metro Manila, as well as 2,100 automated teller machines nationwide. The bank still has the largest branch network in the Philippines compared to its competitors.
Under Basel III, the bank’s total capital adequacy ratio (CAR) remained well above the regulatory limit at 16 percent, with common equity tier 1 (CET1) at 12.1 percent.
Metrobank recently announced it has obtained board approval for a stock rights offer (SRO) of up to P32 billion. Proceeds are expected to support the bank’s accelerating growth momentum and to further enhance its capital ratios.
Metrobank is the banking arm of businessman George Ty through conglomerate GT Capital Holdings Inc. Aside from banking, GT Capital has interests in the automotive sector (Toyota Motor Philippines), real estate (Federal Land Inc.), power (Global Business Power Corp.), insurance (Philippine AXA Life Insurance Corp.), and non-life insurance (Charter Ping An Insurance Corp.).