METROPOLITAN Bank & Trust Co. (Metrobank) saw its net profit rise by 2.13% year on year in the first quarter on the back of strong growth in its fee and trading income and the sustained expansion of its lending business.
The Ty-led bank booked an attributable net income of P12.253 billion in the three months ended March, up from P11.997 billion in the same period last year, it said in a disclosure to the stock exchange.
This translated to a return on average equity of 12.85% and a return on average assets of 1.4%.
“Our first-quarter performance keeps us on track in achieving our medium-term growth strategies even as global uncertainties continue to persist. Our strong capitalization and healthy portfolio give us and our clients the assurance on our ability to navigate the changing economic landscape,” Metrobank President Fabian S. Dee said.
The bank’s net interest income went up by 2.37% to P29.38 billion in the first quarter from P28.695 billion in the same period last year amid sustained loan growth. Interest income increased by 5.4% to P45.09 billion, while interest and finance charges rose by a faster 11.58% to P15.71 billion.
Net interest margin stood at 3.62% at end-March, down from 4% a year prior.
“Metrobank’s gross loans continued to expand substantially, rising by 16.1% year on year on strong performance across all segments. Commercial loans grew by 16.1%, driven by the sustained rise in corporate capital expenditures. Consumer loans portfolio similarly grew at a robust pace of 16%, driven by auto loans and gross credit card receivables, which jumped 21.4% and 17.9% year on year, respectively,” the bank said.
Despite the growth of its lending business, nonperforming loans (NPL) accounted for just 1.6% of Metrobank’s loan book at end-March, inching down from 1.66% a year ago.
It also set aside P2.61 billion in loan loss provisions in the period, with NPL cover at 150.9%.
Meanwhile, the bank’s non-interest income rose by 31.86% year on year to P8.68 billion in the quarter.
Income from service charges, fees and commissions increased by 10.51% to P4.29 billion, supported by its expanding consumer business, Metrobank said.
Net gains from trading, securities and foreign exchange gains also surged to P2.63 billion in the first quarter from P683 million a year prior.
On the other hand, the bank’s operating expenses increased by 6.96% to P19.25 billion from P18 billion due to higher manpower and miscellaneous costs. This resulted in a cost-to-income ratio of 50.84%.
Metrobank’s deposits stood at P2.23 trillion at end-March, with 64.4% of the total being low-cost current and savings account or CASA deposits.
Its loans-to-deposit ratio was at 82.5% in the first quarter, up from 67.07% a year ago.
The bank’s total consolidated assets expanded by 9.1% year on year to P3.48 trillion at end-March.
Total equity was at P377.19 billion. Its capital adequacy ratio stood at 15.4% and common equity Tier 1 ratio was at 14.7%. Liquidity ratio was at 45.08%.
The bank and its subsidiaries had 962 branches, 1,301 on-site automated teller machines (ATMs) and 975 off-site ATMs as of March 31.
Metrobank’s shares surged by P4.70 or 6.51% to close at P76.90 apiece on Wednesday. — Aaron Michael C. Sy
