Metrobank’s first quarter earnings rise to P8B

INQUIRER FILE PHOTO / GRIG C. MONTEGRANDE

Ty family-led Metropolitan Bank & Trust Corp. ended the first quarter of 2022 with a profit of P8 billion, backed by “solid gains” across its core businesses while costs were kept in check.

The country’s second-largest private lender grew net income from P7.8 billion during the same period last year as the Philippine economy continued its recovery from the global health crisis.

“We are encouraged by the sustained pick-up in economic activities as Metrobank stands ready to support our clients in their funding plans and investment needs,” Metrobank president Fabian Dee said in a statement on Friday.

“The strategies that we have put in place should enable the bank to achieve sustainable growth along with the expanding domestic economy,” he added.

Metrobank also underscored its shrinking portfolio of bad loans, which was in line with increased economic activity.

The lender said nonperforming loans (NPL) fell by 5 percent to P27 billion. This brought the NPL ratio to 2.2 percent from 2.4 percent last year while NPL cover remained “ample” at 179 percent.

From January to March this year, Metrobank recorded a 5 percent increase in gross loans to P1.3 trillion. Corporate lending alone grew 10 percent followed by an 8 percent increase in credit card receivables.

Total deposits also jumped 17 percent to P2 trillion. This also involved 10 percent growth in current account-savings account deposits (CASA) for a ratio of 71 percent. “The sustained rise in low-cost CASA helped further lower funding cost,” Metrobank said, adding this boosted net interest income to P19.3 billion.

Earnings were also lifted by noninterest income, which went up 5 percent due to higher service fees and commissions. Metrobank achieved P2.3 billion in trading and foreign exchange gains during the period, it added.

Operating costs, meanwhile, were steady at P14.8 billion, up 1 percent “reflecting the ongoing efforts to enhance productivity and operational efficiency.”

Metroabnk ended the period with consolidated assets of P2.6 trillion and total equity of P303.8 billion. Its capitalization was also well above regulatory compliance, the statement showed.

—Miguel R. Camus