Metropolitan Bank & Trust Company (Metrobank) rode the economic rebound in the postpandemic period, expanding profits by 45 percent to P23.4 billion in the first nine months of the year.
Metrobank, the country’s second-largest private lender, said in a stock exchange filing on Friday gains were supported by higher loans, fees and lower credit expenses.
For the third quarter alone, net income climbed 77 percent to P7.8 billion versus the same period in 2021.
Fabian Dee, president of Metrobank, said their financial results position the banking giant for “sustainable growth” despite fears of an economic slowdown amid the steep rise in consumer prices.
“We improved our profitability by taking on opportunities as the economy reopened while keeping our balance sheet strong and improving efficiency level,” Dee said in the filing on Thursday.
“Our position of strength, and substantial reserves, will enable us to continue on supporting our customers as they navigate the impact of the global external headwinds,” he added.
Net interest income from January to September increased by 10 percent to P62.1 billion, pushing up the net interest margin to 3.5 percent.
Metrobank said this was due to a 12 percent jump in gross loans to P1.4 trillion.
Corporate and commercial lending delivered a growth of 15 percent while credit card receivables added 22 percent. On the other hand, non-interest income such as fees and charges rose 15 percent to about P17.5 billion.
Metrobank said non-performing loans (NPLs) were flat at 2.1 percent, staying below the industry average, while it kept NPL coverage at 172 percent. Debts that required restructuring also improved to 0.5 percent of total loans, which was well below the industry average of 2.7 percent.
This allowed the lender to cut credit provisions by 43 percent to about P5.7 billion.
Total operating expenses saw a slight increase to P44.5 billion, resulting in a cost-to-income ratio of 54.5 percent versus 59 percent a year ago.
Metrobank ended the nine-month period of with total depots of P2 trillion, which was higher by 11 percent. Most of these came from current and savings deposits, which was up 5 percent to P1.5 trillion.
As of end-September, Metrobank had total assets of P2.7 trillion and total equity of P308.9 billion. Its capital adequacy ratio (CAR) standing during the period stood at 17.2 percent with a common equity Tier 1 at 16.3 percent, which were above the minimum requirements.