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By Maricel E. Burgonio, Reporter
METROPOLITAN Bank and Trust Co. (Metrobank)
said its first-quarter profit fell by double-digits on significant
declines in its foreign exchange gains and a slight reduction in its
lending income.
In a statement, the
Philippines’ largest lender said its net income decreased by 15.64
percent to P1.76 billion from P2.08 billion in the same three-month
period last year.
“This year’s outlook will be
muted by the uncertainties in the US economy, the volatility in the
global financial markets, as well as the inflationary concerns in
the domestic economy,” Arthur Ty, Metrobank president said.
Ty still expects Metrobank to
remain resilient this year amid challenging conditions as the bank
will continue to focus on growth, efficiency, profitability, and
long-term value. Its net interest income declined by 4.26 percent to
P4.97 billion, while non-interest income rose 26.97 percent to P4.94
billion. Interest income is earned on loans, while non-interest
income comes from bank fees, charges, and the sale of assets.
Bank fees and service charges
rose 31.66 percent to P1.58 billion while gains on the sale of
assets reached P1.06 billion. Metrobank also reported a fourfold
increase in miscellaneous income to P1.17 billion mainly due to the
revenue contribution of key subsidiaries.
As a result, total operating
income for the quarter grew 9.13 percent to P9.91 billion.
Trading and foreign exchange
gains contracted 58.76 percent to P853.46 million, reflecting a more
challenging business environment, according to Fernand Antonio
Tansingco, Metrobank treasurer.
“The continued global risk
aversion and rising domestic interest rates on the heels of higher
inflation expectations have made trading and investment activities
difficult,” Tansingco said.
Net loans and receivables grew
15.47 percent year-on year to P313.77 billion, on the back of
continued strong take up in the consumer segment which now accounts
for 21.57 percent of gross loans.
On the corporate market, the bank
extended loans to the energy, power and other non-financial sectors.
Cost management and operational
efficiency remain key strategic objectives for the bank. Parent
company cost and expense growth was almost flat at P 4.08 billion.
Consolidated resources reached
P677.96 billion, representing a 2.20 percent increase year-on-year.
Deposits growth was flat at 0 P 493.63 billion, but low-cost
deposits increased by 13.68 percent, accounting for 46.39 percent of
total deposits.
Metrobank consolidated
non-performing loan ratio fell to 4.92 percent from 7.59 percent in
the same period last year. Provisions for impairment and
credit losses went up slightly to P1.16 billion.
The lender sold P2.08 billion in
foreclosed assets for the first three months of the year.
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