Metropolitan Bank & Trust Company (Metrobank) reported a consolidated net income of P18.1 billion in 2016, up 3 percent from a year earlier on sustained low-cost fund generation.
In a statement on Friday, Metrobank said total resources peaked at P1.9 trillion, total deposits reached P1.4 trillion and total loans hit P1.1 trillion.
“Throughout this growth cycle, Metrobank maintained its strong balance sheet profile in terms of liquidity, asset quality and capital adequacy,” it said.
Last year, the bank said its loan book grew faster than the industry and strategically re-positioned its balance sheet to provide a steady source of recurring income.
Its current account/savings account (CASA) deposits kept a high growth rate of 21 percent to reach P846 billion. CASA ratio improved to 61 percent of the total P1.4 trillion deposit base from 56 percent a year earlier and again provided the liquidity to support loan growth.
Net loans and receivables increased by 20 percent to breach the P1-trillion mark, Metrobank said. Its total loan portfolio hit P1.1 trillion, which accounts for 57 percent of total assets from an earlier 50 percent.
“The commercial segment led the growth, up 22 percent year-on-year as the bank supported the long-term capex requirements of its corporate clients as well as the working capital needs of the middle market and SME [small and medium enterprises]customers,” it said.
The consumer segment, on the other hand, maintained its solid volume growth of 16 percent, with auto loans growing fastest among the bank’s consumer assets, it added.
Overall, the bank reported that its total revenue for 2016 increased by 16 percent year-on-year to P78.2billion, while operating expenses grew by 11 percent to P44.2 billion.
“This was driven mainly by manpower-related costs in line with plans to hire client-facing personnel to improve customer coverage. Other cost items were kept at a more manageable single-digit growth, notwithstanding the continued investment in technology, marketing, and customer acquisition initiatives,” it said.
PSBank net income grows 4%
Thrift bank arm Philippine Savings Bank (PSBank) said its net income grew by 4.25 percent last year, fueled by its core income.
In a separate statement, PSBank said it posted a full year net income of P2.45 billion in 2016, higher than the P2.35 billion recorded a year earlier and translated to a 12.5 percent return‐on‐average equity.
“The increase was fueled by the bank’s core income, composed of net interest margin and fees and commissions, which rose by 11.6 percent to P10.80 billion from P9.68 billion last year,” it said.
The bank’s total loan portfolio continued to post double-digit growth year-on-year, rising by 11.4 percent to P129.2 billion from P116.0 billion, mainly driven by the significant increase in auto and mortgage loans.
Despite the expansion of its loan portfolio, PSBank said it was able to keep its net non-performing loans (NPL) ratio in check at 1.1 percent with NPL coverage at 88.6 percent.
On the funding side, total deposits grew by 17.9 percent to P158.39 billion from P134.30 billion, with low cost funds increasing by 19.1 percent.
As of end-2016, PSBank said its total resources expanded by 16.3 percent to P196.9 billion. Its tier 1 and total capital adequacy ratios stood at 11.1 percent and 14.1 percent, respectively. Both are above the minimum required level set by the Bangko Sentral ng Pilipinas.
The bank’s physical distribution network currently includes 255 branches and 611 automated teller machines strategically located nationwide.