LISTED Metropolitan Bank & Trust Co. (Metrobank) said on Friday that its unaudited consolidated net income rose by 28.57 percent to P21.6 billion in January to September this year from P16.8 billion in the same period last year.
In a disclosure, the Ty-led lender attributed its solid performance to the consistent growth in operating revenues on the back of moderate loan growth and margin expansion, strong trading and foreign exchange gains, and higher fee-based income.
“The bank is proud to have sustained strong growth momentum by navigating well amid the dynamic movements in the local economy. We continue to focus on customer service, profitability, and quality growth,” Metrobank President Fabian Dee said.
“As always, our philosophy centers on providing solutions so that our customers can have meaningful banking experiences,” he added.
Current account/savings account ratio improved the bank’s total deposits by 64 percent to P1.4 trillion, and was said as to have provided liquidity to support loan growth of 7 percent to P1.4 trillion.
“Aligned with the performance of the Philippine economy, credit demand was mainly broad-based, led by the corporate segment,” the bank added.
Net interest income grew 10 percent to P56.2 billion, and accounted for 70 percent of Metrobank’s total revenues of P80 billion. Net interest margin further expanded to 3.91 percent from 3.83 percent in the first half of 2019.
Non-interest income rose 36 percent to P23.7 billion, which includes P10.0 billion in service fees and commissions, P8.1 billion in net trading and foreign exchange gains, and P900 million in fees from asset management.
“Fee-based revenues, as well as trading gains, continued to benefit from increased customer flows in fixed income and foreign exchange, as well as opportunities in the financial markets,” the lender said.
Operating expense growth, at 9 percent, was kept at a reasonable level because of the bank’s continued focus on improving efficiency and productivity, it added.
This, coupled with relatively strong revenue growth for the period, led to an improvement in the cost-to-income ratio to 54 percent from 58 percent last year.
Metrobank said its asset quality metrics continued to be better-than-industry, with non-performing loans (NPL) ratio recorded at 1.5 percent.
It has set aside P7.8 billion provisions for credit and impairment losses, aligned with the increase in its asset portfolio. This pushed the NPL cover higher to 96 percent, from 87 percent in June 2019.
The bank’s consolidated assets and equity stood at P2.3 trillion and P304.7 billion, respectively. Total capital adequacy ratio was at 17.6 percent with common equity tier 1 ratio of 16.3 percent.
In the third quarter alone, Metrobank also reported that its unaudited consolidated net
income increased 49 percent to P8.5 billion.
Metrobank shares rose by 65 centavos or 0.92 percent to end at P71.65 each on Friday.