MANILA, Philippines – Ty-led universal bank Metropolitan Bank & Trust Co. (Metrobank) grew its net profits by 31.99% through higher interest, fee-based earnings and better than expected treasury gains.
In a disclosure to the stock exchange on Thursday, February 16, the country’s 3rd largest bank in terms of assets reported that it realized an P11 billion in net income in 2011 from the previous year’s P8.4 billion.
Below are a breakdown of contributions to this healthy bottom-line:
- 11.4% increase in net income to P29.4 billion, driven largely by a 7.3% growth in low cost deposits
- 16.5% increase in net loans and receivables
- 12% increase in service charges, fees and commissions to P7.7 billion
- trading and foreign exchange gains of P7.7 billion
Here are some details of its balance sheet as of end-2011:
- Assets grew by 8% to P958 billion
- Deposits grew 4.6% to P681 billion
- Net loans and receivables grew 16.5% to P457.4 billion
- Equity grew 25.3% to P109.8 billion
Here are some measures of its financial health;
- Capital adequacy ratio improved to 17.4% from 16.4% in 2010 (vs 10% required minimum)
- Tier 1 capital ratio rose to 13.7% from 12%
- Non-performing loans (NPL) ratio declined to 2.2% from 2.9%
- NPL coverage was at 99.5% from 92.3%
The Metrobank group says it has over 780 branches nationwide.
Metrobank’s thrift arm, Philippine Savings Bank (PSBank) has recently been dragged into the ongoing impeachment trial against Chief Justice Renato Corona.
The Coronas have at least P20 million in 2010 and reportedly some dollar accounts maintained at PSBank’s Katipunan branch in Quezon City. Both the PSBank president and branch manager have taken the witness stand at the trial.
PSBank has recently sold P3 billion worth of bonds. An indication that investors shrugged off the impact of the trial on their confidence in the bank was this: the bond float was oversubscribed twice. – Rappler.com