LOCAL BANKING giant Metropolitan Bank & Trust Co. grew its first-quarter net profit by 21.2 percent to P3.1 billion as a double-digit rise in net interest income offset a much-anticipated decline in trading gains.
In a press statement, the bank attributed its performance to the “steady growth in core revenues, coupled with the sustained improvement in asset quality.”
Total operating income during the first three months reached P11.8 billion, which was boosted by a 13.1-percent growth in net interest income to P7.3 billion.
On non-interest income, the bank said the expected weakness in trading and foreign exchange profits was mitigated by the steady growth in fee-based earnings. First-quarter trading gains slowed to P1.3 billion from P1.9 billion last year but service charges, fees and commission contributed P1.9 billion in revenues.
Meanwhile, operating expense growth was slightly up 0.9 percent to P7 billion. As revenue growth outpaced expense growth, Metrobank’s cost-to-income ratio further improved to 61 percent.
Metrobank also managed its balance sheet strength to ensure quality growth. By the end of March, gross nonperforming loans (NPLs) were cut by 3.4 percent to P11.1 billion. Subsequently, the NPL ratio continued to decline to 2.9 percent from 3.5 percent in the comparative quarter last year, while the NPL coverage further improved to 90.8 percent from 86 percent.
At end-March, Metrobank’s consolidated assets stood at P957.3 billion, up from P833.4 billion in the first quarter last year. The growth in assets was supported by the 18.5-percent increase in the bank’s deposit base to P713.5 billion. Net lending also expanded 14.5 percent to P387.7 billion, driven by the sustained demand from the consumer and corporate sectors.
Total equity reached P99.7 billion, up 32.9 percent from a year ago. In January, the bank raised about P10 billion in primary capital through a stock rights offer. Total capital adequacy ratio thus improved to 17.5 percent from 15.1 percent last year, well above the 10-percent regulatory minimum. Doris C. Dumlao