Metrobank net income up 5.3% in Q1 2018

MANILA, Philippines – Ty-led Metropolitan Bank & Trust Company (Metrobank) saw its net income rise in the first 3 months of the year, due to the sustained gains of its core businesses.

Metrobank reported a net income of P5.9 billion for the 1st quarter of 2018, in a disclosure to the Philippine Stock Exchange (PSE) on Friday, April 27. The figure is up 5.3% compared to the P5.6 billion in the same period last year.

Metrobank attributed the rise to “double-digit growth in loans and low-cost deposits contributing to better margins, while recurring expense growth continued to be kept at a manageable level.”

As of the end of March 2018, the bank noted that total deposits increased 9% to P1.6 trillion, driven by an 11% growth in the low cost component. Its current and savings account (CASA) ratio was maintained at 62%.

Loan growth, meanwhile, was up 14% year-on-year to P1.3 trillion, with consumer loans growing by 17% and commercial loans growing by 14%.

Metrobank reported a net interest income of P16.1 billion, accounting for 73% of its total revenue of P22.1 billion, on the back of a net interest margin at 3.8%, up 7 basis points from the same period last year.

Non-interest income hit P6 billion, comprised of P3.2 billion in service fees and commissions and income from trust operations, which was up 9%; P679 million in net trading and FX gains; and P2.1 billion in miscellaneous income.

The bank also noted that operating expenses, excluding taxes and licenses, were up 9% to P10 billion. Manpower-related costs grew at 7% to P4.8 billion, while taxes and licenses were reported at P2.2 billion, inclusive of tax-related adjustments.

Metrobank’s non-performing loans (NPL) ratio stood at 1.1%, while provisions for credit and impairment losses totaled P1.9 billion.

Consolidated assets stood at P2.1 trillion, with equity of P206.9 billion. Total capital adequacy ratio was at 14.5% and Common Equity Tier 1 ratio at 12%.

Earlier this year, the bank’s parent firm GT Capital said it allocated a capital spending budget of P63 billion to P65 billion for 2018 to improve capital ratio, support loan expansion, expand electronic banking channels, and expand its branch network. – Rappler.com