Metrobank profits leap 27% in Q1 2021 despite weak loan demand

Metropolitan Bank and Trust Company (Metrobank) saw its profits leap by 27.1% to P7.8 billion in the 1st quarter of 2021, driven mainly by strong non-interest income performance and marginal rise in operating expenses.

Non-interest income surged by 28% to P7.9 billion, while fee-based revenue was flat at P3.3 billion. Trading and forex gains doubled to P2.9 billion.

"With the pandemic still ongoing, loan demand remained slow, and naturally, net interest income trended lower," Metrobank said.

Total current and savings account deposits grew by 16% to P1.3 trillion.

Metrobank's operating expenses inched up by 1.4% to P14.7 billion on the back of "operational efficiency."

Meanwhile, its non-performing loans ratio was steady at 2.4%. Restructured loans comprised 0.4% of total loans.

The bank set aside P2.5 billion in loan loss provisioning for the 1st quarter, 50% lower than the same period in 2020.

"We are in a strong position to withstand a resurgence in asset quality risks and we remain vigilant even as we all continue to battle the pandemic," said Metrobank president Fabian Dee.

Metrobank is the Philippines' second largest bank with consolidated assets of P2.4 trillion and equity of P306.6 billion. – Rappler.com

Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.

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