Ty family-led Metropolitan Bank & Trust Co. chalked up P6.8 billion in net income for the first quarter, up by 15 percent year-on-year on the back of higher interest earnings, fee-based income and treasury gains.
“We are pleased with the favorable business results in the first three months. The year is starting on the right track, with performance metrics showing expansion in existing income streams, improving productivity, and most importantly, quality growth,” Metrobank president Fabian Dee said in a disclosure to the Philippine Stock Exchange on Tuesday.
“We remain optimistic on the prospects of the economy, which should be supportive of the thriving banking industry,” he added.
Metrobank’s net interest margin for the period rose by 9 basis points year-on-year to 3.84 percent. Net interest income came in at P18.1 billion, posting a 12-percent growth year-on-year, and accounting for 74 percent of the bank’s total revenues of P24.6 billion.
Non-interest income rose by 8 percent year-on-year in the first three months to P6.5 billion.
This included a 9-percent increase in service fees and commissions to P3.1 billion while net trading and foreign exchange gains surged by 113.7 percent year-on-year to P1.5 billion.
There was P1.6 billion in miscellaneous income.
Fee-related revenues as well as trading income continue to benefit from increased customer business in fixed income and foreign exchange, the bank said.
Meanwhile, operating expenses reached P13.5 billion in the first three months.
Manpower-related costs accounted for P5.4 billion of the full amount, while the balance was spent on systems and process improvements, as well as continuous investments in information technology.
On the funding side, total deposits stood at P1.6 trillion, 61 percent of which represented low-cost deposits. This supported the 8.5-percent growth in the loan book to P1.4 trillion, which was led by the commercial loan segment comprised of top corporate accounts, middle market and small and medium enterprises.
Nonperforming loans accounted for 1.5 percent of total loan portfolio. For the first quarter, the bank reported provisions for credit and impairment losses of P2.4 billion.