Metrobank posts higher core income on loans, deposits

METROPOLITAN Bank & Trust Co. (Metrobank) posted higher income on a core basis in 2017 on the back of robust growth in its loans and deposits.

In a disclosure to the local bourse on Thursday, the Ty-led Metrobank booked a consolidated net income of P18.2 billion in 2017, up by 10% on a core basis compared with the same period in 2016.

Metrobank booked a net interest income of P61.4 billion, up 16% year on year and accounting for 73% of the lender’s total operating income.

This was on the back of its net interest margin, which has been steadily moving up to 3.75% or 21 basis points from last year.

Metrobank attributed its “strong performance” to the robust growth of its loans and deposits, which in turn resulted in “improved margins as well as better operating leverage.”

The bank’s loan portfolio expanded to P1.3 trillion in 2017, up by 19% year on year. This was mainly driven by the commercial segment, particularly the middle market as well as small and medium enterprises, as loans for these sectors went up 20%.

Consumer loans also increased by 17% year on year.

Meanwhile, the bank ended 2017 with total deposits of P1.5 trillion. Low-cost deposits, which made up 62% of the current account, savings account ratio, grew 12% from the same period in 2016.

“This provided the stable low cost funding to fuel its healthy loan expansion,” the lender said.

Meanwhile, Metrobank’s non- interest income stood at P22.1 billion in 2017. Broken down, P12.4 billion came from service charges and commissions as well as income from trust, P3.9 billion from trading and foreign exchange gains and P5.9 billion from miscellaneous income.

Metrobank’s non- performing loans ratio stood at 1%, as Metrobank claimed to be better than the industry. Provisions for credit and impairment losses, including one- offs, stood at P7.5 billion.

Its capital adequacy ratio was at 14.4% on a Basel 3 basis, with common equity tier 1 at 11.8%.

Metrobank ended 2017 with 952 branches and 2,352 automated teller machines nationwide, as half of its branches located outside Metro Manila.

“With the greater focus on improving efficiency, expenses for bank-related operations were kept at a reasonable level with recurring cost growth at only 6%,” the lender added.

“We are pleased to report positive results in our core business. The strength of our deposit franchise continues to support our loan growth, particularly in the commercial space as we help finance the expansion plans of our customers,” Metrobank President Fabian S. Dee was quoted as saying in a disclosure.

“Our momentum continues to build up, and we are well- positioned to accelerate our growth plans moving forward.”

Metrobank shares gave up 0.90% to end at P98.60 apiece on Thursday.