Metrobank profit flat at P18.22B in ’17

Ty family-led Metropolitan Bank & Trust Co. chalked up P18.22 billion in net profit last year, flat from the previous year’s level as higher interest earnings made up for the decline in treasury gains.

Excluding one-off items, Metrobank grew its core net profit last year by 10 percent on a double-digit expansion in earnings from lending activities.

“The strength of our deposit franchise continues to support our loan growth, particularly in the commercial space as we help finance the expansion plans of our customers. Core revenues increased at a healthy rate, while operating expense growth was capped at a single digit,” Metrobank president Fabian Dee said in a statement.

Metrobank’s total resources closed last year at a new high of P2.1 trillion.

In a separate regulatory filing, Metrobank reported that net interest income rose by 16 percent to P61.4 billion, accounting for 73 percent of the bank’s P83.6-billion total operating income.

Metrobank grew its loan book by 19 percent to P1.3 trillion last year. The commercial segment, mainly the middle market and small and medium enterprises, led the growth with a 20-percent gain while consumer loans increased by 17 percent.

Net interest margin moved up by 21 basis points to 3.75 percent, attributed to improving asset yields.

Meanwhile, noninterest income reached P22.1 billion, consisting of P12.4 billion in service charges and commissions and income from trust, P3.9 billion from trading and foreign exchange gains and miscellaneous income of P5.9 billion.

Noninterest income declined by 13.71 percent due to lower net trading and securities and foreign exchange gains alongside the disposal of held-to-maturity investments that added to the gains in 2016.

The bank improved its fee-based income by 6.93 percent while income from trust operations rose by 8.08 percent. Profit from disposal of foreclosed assets rose by 46.86 percent.

On the funding side, total deposits ended the year at P1.5 trillion, with low cost deposits rising by 12 percent to P950 billion.

In terms of asset quality, nonperforming loans as ratio of total loans were capped at 1 percent. The bank also reported provisions for credit and impairment losses of P7.5 billion, including one-off items.

Total capital adequacy ratio stood at 14.4 percent of risk assets with common equity tier 1 at 11.8 percent of risk assets.

Metrobank recently announced it had obtained board approval for a stock rights offer, which was expected to boost the bank’s capital ratio by up to P60 billion.

On a consolidated basis, Metrobank ended the year with 952 branches and 2,352 ATMs (automated teller machines) nationwide.