Metropolitan Bank and Trust Co.’s (Metrobank) earnings rose by 5 percent in the first nine months of the year, backed by its strong core business.
Metrobank on Monday reported an unaudited consolidated net income of P13.2 billion for the period, up from P12.57 billion a year earlier.
The bank said it continued to make strides in its core banking business, sustaining momentum in loan expansion and low-cost deposits growth. Fee income drivers also continued to improve and operating expenses were again capped to single-digit growth.
For the third quarter alone, the bank booked profit of P4.52 billion, up 9 percent year on year.
“We are pleased to report that our core earnings results are moving ahead of plans,” Metrobank President Fabian Dee said in a disclosure to Philippine Stock Exchange.
“[W]e are also continuously improving our operations and have made the necessary enhancements to our internal processes to ensure that we become an even stronger institution,” he added.
The bank said it sustained 15 percent growth in low cost deposits, for a 62-percent current account/savings account ratio, out of the total P1.5-trillion deposit base.
This mix supported 20 percent year-on-year growth in net loans and receivables to reach P1.2 trillion, it added.
Metrobank said the commercial segment was again at the forefront of growth as it continued to provide funding to both corporate and middle market clients.
Given the strong performance in its balance sheet expansion, net interest margin continued to improve at 3.8 percent, mainly coming from the loan expansion in target segments.
This delivered a 16-percent increase in net interest income, which made up 72 percent of the P62.9-billion in total revenues.
Meanwhile, the bank’s non-interest income of P17.6 billion was comprised of P9.1 billion in service fees and commissions, including income from trust operations, P4.0 billion in net trading and foreign exchange gains, and P4.5 billion in miscellaneous income.
The bank incurred operating expenses of P35.8 billion for the period, up by just 8 percent.
Metrobank said its asset quality metrics remained better than industry average with the non-performing loans ratio at 1.07 percent. Provisions for credit and impairment losses for the period amounted to P5.9 billion, including one-offs.
The bank ended the period with total equity at P210.4 billion. Total capital adequacy ratio on a Basel III basis remained well above the regulatory limit at 16 percent with common equity tier 1 ratio at 13.3 percent.