Metrobank rides on economic recovery to post record-high 2022 earnings

INQUIRER FILE PHOTO

Swelling loan books and a thriving postpandemic Philippine economy pushed up earnings of Ty family-led banking giant Metropolitan Bank & Trust Co. (Metrobank) to a record high in 2022 after profits soared 48 percent to P32.8 billion.

This was nearly 17 percent higher than its 2019 profit of P28.1 billion.

“Backed by the strategies we initiated during the pandemic, our solid performance and the recognition we received in 2022 reflect our efforts to support our clients’ growing needs as the economy reopens,” Metrobank president Fabian Dee said in a statement on Thursday.

“With our strong balance sheet and highly capable team of Metrobankers, we stand ready to continue to be the trusted partner of all our stakeholders for the long term,” he added.

The country’s second-largest lender said earnings were lifted by strong loans and margins, higher revenues from fees and lower credit expenses.

Gross loans for the year rose 14 percent with robust gains coming from its corporate and commercial lending segments.

Credit card loans also expanded by 29 percent.

This pushed up net interest income by 14 percent while interest margins also rose to 3.6 percent. Fees and other income bolstered non-interest income by 11 percent to P23.5 billion, the lender said.

Moreover, operating expenses tilted higher by 3 percent to P61 billion. The lender ended with a cost-to-income ratio of 54 percent, down from 59 percent last year.

The bank’s growth mirrored the recovery of the Philippine economy, which blew past government forecasts last year to grow 7.6 percent—its fastest pace in four decades.

During this period, Metrobank said the non-performing loans ratio to 1.9 percent from 2.2 percent the previous year. This was lower than the industry average of 3.3 percent, Metrobank said.

Coverage of bad loans stood at 172.4 percent, “reflecting strong ability to cover any potential risks to portfolio health.”

Metrobank said total deposits grew 15 percent to P2.2 trillion, the bulk of which was comprised of low-lost deposits.

It ended the year with total assets of P2.8 trillion and total equity of P318.5 billion.

“The bank’s capital ratios remain to be one of the highest in the industry, with capital adequacy ratio at 17.7 percent and common equity Tier 1 ratio at 16.8 percent, all well-above the minimum regulatory requirements,” it said.