Metrobank income as of Sept. down 4.9% to P12.6B

Metropolitan Bank and Trust Co. chalked up a net profit of P12.6 billion in the first nine months, down 4.9 percent year-on-year, as the bank increased its spending on human resources, bank processes and technology.

Taking out non-core items that added to the comparative P13.25 billion in net profit in the same period last year, Metrobank’s core profit for the January to September period this year matched the level in the previous year, senior vice president and head of strategic planning Jette Gamboa said in a press briefing on Thursday.

Overall, she said the bank was outperforming guidance in core lending activities and low-cost funding growth.

“We are pleased with the positive trends we see in our core business. Low cost funding remains healthy, our margins are improving amid heavy competition and loan demand is better than we originally expected,” Metrobank president

Fabian Dee said in a statement.

“It’s also very encouraging that growth prospectus abound, and with our strong capital position, it gives us the leverage to sustain this momentum moving forward,” he added.

Net interest earnings rose by close to 8 percent year-on-year to P39 billion for the nine-month period, contributing close to 70 percent of total operating income.

This was as the bank expanded its loan book by 26 percent year-on-year to P965.1 billion while net interest margin improved to 3.65 percent from 3.5 percent in the same period last year.

The loan growth seen in the nine-month period outpaced the banking industry’s loan growth average of close to 18 percent.

The commercial segment led Metrobank’s loan growth, rising by 29 percent year-on-year as customers were seen tapping long-term financing for capital expenditure requirements.