Metrobank net income up 5% despite P900-million fraud

MANILA, Philippines – Ty-led Metropolitan Bank and Trust Company (Metrobank) saw its net income rise in the first 9 months of 2017 and in the 3rd quarter of the year despite the fallout from a P900-million fraud case.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, November 6, Metrobank reported P3.69 billion in net income attributable to equity holders of the parent company.

The result means that Metrobank’s net income for the first 9 months of this year stands at P13.2 billion, up 5% from the P12.6 billion in the same period last year.

The bank attributed the increase “to its core banking business as it sustained the momentum in its loan expansion and low-cost deposits growth… while operating expenses were again capped at a single-digit growth rate.”

Metrobank added that it sustained its 15% growth in low-cost deposits for a 62% CASA ratio, out of the total P1.5-trillion deposit base. Mix of funding supported the 20% year-on-year growth in net loans and receivables to reach P1.2 trillion.

Its net interest margin improved by 3.8%, with loan expansion in target segments  delivering a 16% increase in net interest income.

Metrobank’s net interest income made up 72% of its P62.9-billion total revenue.

Meanwhile, non-interest income of P17.6 billion was comprised of P9.1 billion in service fees and commissions, including income from trust operations, P4 billion in net trading and FX gains, and P4.5 billion in miscellaneous income.

Operating expenses, on the other hand, rose by 8% to P35.8 billion for the period.

The bank’s non-performing loans (NPL) ratio stood at 1.07% with provisions for credit and impairment losses for the period amounting to P5.9 billion, including one-offs.

Metrobank is the country’s second largest bank in terms of assets, behind Sy-led BDO Unibank Incorporated.

It ended the period with total equity at P210.4 billion. Total capital adequacy ratio (CAR) on a Basel III basis remained comfortably above the regulatory limit at 16% with Common Equity Tier 1 (CET1) ratio at 13.3%. – Rappler.com