Metrobank net income up 5.3% in Q1 2018

METROBANK. Metropolitan Bank and Trust Company founder George Ty (left) is shown here alongside the bank's chairman Arthur Ty at their 2017 stockholders' meeting. Rappler file photo

METROBANK. Metropolitan Bank and Trust Company founder George Ty (left) is shown here alongside the bank's chairman Arthur Ty at their 2017 stockholders' meeting.

Rappler file photo

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