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Ty family-led Metropolitan Bank and Trust Co. (Metrobank) chalked up P5.6 billion in first quarter net profit, rising by 6 percent year-on-year due to higher earnings from core businesses alongside cost management measures.
Robust loan growth and relatively low funding cost contributed to the 14 percent year-on-year increase in net interest income to P14.5 billion in the first three months, Metrobank said in a press statement on Thursday.
Metrobank’s net interest margins for the period improved to 3.7 percent, cited as one of the highest among peer banks.
The bank also grew non-interest income by 18 percent year-on-year to P5.4 billion on higher service fees and commissions and income from trust operations, which totalled P3 billion. In addition, the bank booked P1.1 billion in net trading and foreign exchange gains and P1.3 billion in miscellaneous income.
“Our first quarter results reflect our capability to consistently deliver quality earnings from our core business. We are moving as planned in terms of diversifying revenues through sustained growth in net interest income and higher contributions from fee-related initiatives,” Metrobank president Fabian Dee said.
“Over time, our efforts were focused on building a healthy asset and funding mix to support margin expansion, while our continued investment in people and technology has started to bear fruit helping us gain more operating leverage,” Dee added.
Metrobank grew its loan book by 26 percent year-on-year to end the first quarter at P1.1 trillion.
With this, total loans accounted for 57 percent of the asset base from 52 percent in the same period last year.
The commercial segment led the loan growth, rising by 30 percent year-on-year with strong contributions from the top corporate and middle market accounts. The consumer business on the other hand, maintained its solid volume growth of 17 percent, with auto loans still the fastest growing segment among consumer assets.
The expansion in risk assets was supported by a 16-percent growth in total deposits to reach P1.4 trillion. Low-cost deposits expanded at a faster clip of 19 percent.
On asset quality, the ratio of non-performing loans (NPLs) to total loans was capped at 0.9 percent. For every P1 of bad loans, the bank set aside P1.1 as loan loss buffer. For the first three months of the year, the bank reported provisions for credit and impairment losses amounting to P1.1 billion.
On the expenditure side, growth in operating expenses was at a modest 6 percent year-on-year to reach P11.1 billion.
Metrobank ended the first quarter with consolidated assets of P1.9 trillion and equity at P200.5
billion. Total capital adequacy ratio was well above the minimum regulatory requirement at 15.6 percent, with core or common equity tier 1 ratio at 12.8 percent.