Metrobank net profit up 40% in Q1 to P4.3B

Local banking giant Metropolitan Bank & Trust Co. grew its net profit in the first three months by 40 percent year on year to P4.3 billion on higher earnings across lending, treasury and investment and fee-based businesses.

“Our solid performance for the first quarter is reflective of our long-term strategy of sustaining profitability and maintaining a healthy balance sheet. With improving economic conditions, Metrobank is well positioned to capitalize on investment opportunities that will support core earnings growth,” said newly elected Metrobank president Fabian Dee.

Operating profit before provisioning rose by 60 percent to P7.7 billion from the level in the same period last year given the healthy growth in core revenues and the robust increase in treasury and investment activities.

Metrobank grew its loan book by 18 percent in the first quarter to P456.1 billion. This growth is much faster than the 10-12 percent loan expansion expected by the bank for this year, which in turn assumes an economic expansion of around 4.6 percent.

A double-digit credit growth was sustained across the three major segments of corporate, middle market, and consumer.

Earnings were also driven by the 11 percent hike in low-cost deposits that in turn funded the expansion in net loans and receivables.

Metrobank ended March with P909.1 billion in consolidated assets and total equity of P109.7 billion.

Total capital adequacy ratio further improved to 18.5 percent from 17.5 percent in the same period last year while core or Tier 1 capital ratio rose to 14.3 percent from 13.5 percent.