Metrobank income up 5% to P5.9 B in Q1

Ty-led Metropolitan Bank and Trust Co. (Metrobank) reported a 5.3 percent increase in net income in the first quarter due to a strong growth in loans and deposits.

The country’s second largest bank owned by taipan George SK Ty booked a net income of P5.9 billion from January to March compared to P5.6 billion in the same period last year.

Metrobank president Fabian Dee attributed the solid performance to the sustained growth in the bank’s core business, as double-digit growth in loans and low-cost deposits contributed to better margins

On the other hand, the bank’s recurring expense growth continued to be kept at a manageable level.

“We have started the year on the right direction and we are moving forward as planned. Our recently completed capital raising activity reflects our continued optimism on the prospects of the economy. This positive backdrop together with our growth strategy should allow us to achieve our targets for the year and sustain our momentum in the medium term,” Dee said

At the end of the first quarter, total deposits increased by nine percent to P1.6 trillion, driven by the 11 percent growth in the low cost component.

With its strong deposit franchise, the Metrobank’s current and savings account (CASA) ratio was maintained at 62 percent.

Despite the volatile market conditions, loan growth sustained its mid-teens pace, up by 14 percent year-on-year to P1.3 trillion.

The consumer portfolio maintained its growth of 17 percent, while the commercial segment grew by 14 percent year-on-year with key contributions from middle market as well as small and medium enterprises (SMEs) customers as well as top corporate accounts.

Net interest margin for the period was at 3.8 percent, which is seven basis points higher compared to the first quarter 2017.

As a result, Metrobank posted P16.1 billion in net interest income, which accounted for 73 percent of the bank’s total revenue of P22.1 billion.

Operating expenses, excluding taxes and licenses, were kept at single-digit growth, up by nine percent to P10 billion.

Asset quality metrics remained healthy and better than industry average. Nonperforming loans (NPL) ratio was at 1.1 percent. It reported provisions for credit and impairment losses of P1.9 billion which includes additional provisions reflecting the impact of PFRS-9.

Metrobank ended the first quarter with consolidated assets of P2.1 trillion, and equity of P206.9 billion. Total capital adequacy ratio was at 14.5 percent with Common Equity Tier 1 ratio at 12 percent.