LOCAL banking giant Metropolitan Bank and Trust Co. chalked up a net profit of P20.1 billion last year, about 11 percent lower year-on-year, due to higher extraordinary gains booked in 2013.
Metrobank posted a record-high net profit of P22.5 billion in 2013, buoyed by gains from the sale of shares in its automotive and power generation affiliates. Despite booking lower extraordinary gains in 2014, however, Metrobank reported a strong growth in core businesses.
Net interest income grew by 20 percent to P45.8 billion and contributed 61 percent of the bank’s total operating income, accounting for a much higher share compared to 48 percent in 2013.
“The strong performance in the bank’s core business was driven by robust growth in loans and deposits, and relatively stable spreads amidst the low interest rate environment and tough competition,” the bank said in a press statement on Monday.
About P7 billion or 35 percent of Metrobank’s net income last year was recognized in the fourth quarter alone.
Total resources hit a new high of P1.6 trillion at end-2014, up by 16 percent from the previous year.
Metrobank said recent investments in its branch network, coverage expansion, and internal system enhancements were catalysts for its sustained balance sheet growth.
Deposits increased by 17 percent to P1.2 trillion, providing the bank with stable low- cost funding to fuel its healthy loan expansion.
Building on the momentum from previous quarters, loans and receivables further accelerated to close the year at P759.5 billion, translating to a 24-percent growth, with the commercial segment posting the strongest year-on-year increase.
Meanwhile, non-interest income was reported at P29.6 billion, consisting of P8.9 billion in service charges and commissions, P3.2 billion from trading and forex gains, and miscellaneous income of P17.5 billion. Miscellaneous income included the sale of non-core assets as well as foreclosed properties.
Operating expenses were kept at a reasonable level with growth in recurring cost capped at 6 percent. The bank said it focused on initiatives to improve efficiency.
In terms of asset quality, non-performing loans (NPLs) dropped to a low of 1 percent of total loans while NPL coverage increased to 165 percent. The bank reported provisions for credit and impairment losses of P4.8 billion.
Expanding its domestic footprint, Metrobank opened 64 branches to reach a total network of 920 branches at end-2014, one of the largest in the industry. More than half of the network is located outside Metro Manila, placing the bank in a position to better service the demands of the regional growth areas of the economy. This network was supplemented by 2,100 automated teller machines (ATMs) nationwide.
Meanwhile, the bank kept its capital adequacy ratio to risk assets well above Basel 3 requirement at 16 percent. Counting only core or tier 1 capital, the ratio stood at 12.1 percent.