Metrobank senior vice president Jette Gamboa and president Fabian Dee
METROBANK Bank and Trust Co. chalked up P18.6 billion in net profit last year, about 20 percent higher than the core profit in the previous year, as the bank unlocked more interest earnings from a bigger loan book.
Including non-recurring items in the comparative year, Metrobank’s headline net profit for 2015 declined by around 7.5 percent from P20.1 billion a year ago. In 2014, one-time gain from the sale of foreclosed assets and non-core assets such as the bank’s interest in Toyota Financial Services Philippines Corp. (TFSPC) boosted net profit.
This performance translated to a return on equity of around 11 percent for 2015. Overall, the bank grew loan and low-cost deposits by double-digit levels and maintained stable spreads despite stiff competition in the year.
“We expected 2015 to be another challenging year for the banking industry. Both loans and deposits growth showed a slowdown while market conditions limited trading opportunities. Under this scenario, our priority was to continue supporting our clients in their commercial and retail needs, as well as generating low-cost deposits and fee-based income,” Metrobank president Fabian Dee said in a press statement on Tuesday.
“Our investments in improving client coverage, automation and system enhancements coupled with better internal synergy helped mitigate industry challenges,” Dee said.
Metrobank booked P49 billion in net interest income for the year, about 7 percent higher than the level in the same period last year.
Net interest income now comprises over 70 percent of the bank’s total operating income, in turn seen boosting the bank’s focus on “key priority areas and more stable revenue-generating segments.”
Net interest margin was steady at 3.54 percent, noted by the bank to be the highest among its peer group.
Harnessing pockets of demand in the commercial and consumer space, the bank expanded its loan book by 17 percent to P887.2 billion. This outpaced the industry’s loan growth of 13 percent.
The bank also reported P18.4 billion in non-interest income, mostly from P9.8 billion in service charges, fees and commissions, which went up by 10 percent from the previous year. The bank also generated P1.8 billion from trading and foreign exchange gains as well as P6.8 billion from other income.
On the funding side, Metrobank ended the year with total deposits of P1.3 trillion, of which 56 percent consisted of low-cost deposits which had expanded by 18 percent for the year.
“We also increased capital early last year to ensure we had the financial strength to take on growth opportunities and to help us withstand potential external and market shocks,” Dee said.
As the bank raised P32 billion in fresh capital from a stock rights offering in 2015, its total capital adequacy ratio (CAR) remained well above the regulatory limit at 17.75 percent with core or common equity tier 1 CAR ratio at 14.25 percent.
In terms of asset quality, non-performing loans as a ratio of total loans ended below 1 percent or a new low for the bank. The bank set aside P2.1 billion in provisions for credit and impairment losses.
Metrobank ended the year with 943 in consolidated branches and 2,226 automated teller machines (ATMs), expanding by 23 branches and 126 ATMs for the period.