Metrobank reports 18.6-billion net income, up by 20%, in 2015

Metropolitan Bank & Trust Company (Metrobank) said its core earnings increased by 20 percent year- on-year in 2015 to 18.6 billion with all key metrics performing well such as loans and deposits.

Metrobank president Fabian S. Dee, who joined the bank in 2012, yesterday said the bank had been boosting its banking personnel to improve customer accessibility across its 943 network (including thrift unit PS Bank). They invested more in expanding client coverage, systems upgrade to support increased staff branches, and automation.

Dee said that despite a slowdown in industry loans they were able to maintain steady growth which he also expects to continue this year. “(Our loan portfolio) is healthy compared to industry (and) we’re still optimistic this year… we can keep steady growth momentum. That’s where you need good people,” he added.

The last 12 months had been a chal- lenging year for the entire banking sector, said Dee. Industry loans and deposits growth were not as strong while market volatilities limited trading income. Still, the bank's total resources increased to 1.8 trillion from 1.6 trillion.

Metrobank continues to be one of the country’s top three banks and one of the 10 strongest financial institutions in Asia. It had a return on equity rate of 11 percent and capital adequacy ratio of 17.75 percent, its CET1 (common equity Tier 1) at 14.25 percent, in 2015. Its ROE was lower than 2014’s 14 percent due to the dilution effect of its stock rights offering and other non-allied savings.

The bank posted double digit growth in loans and CASA (current account, savings account). Its net loans and receivables increased by 17 percent year- on-year to a loan portfolio total of 887.2 billion. In the meantime CASA grew by 18 percent which provided the bank with “stable low-cost funding” for its loan expansion. At the end of 2015, it had 1.3-billion total deposits and a CASA ratio of 56 percent.

Metrobank reported a 2015 net interest income of 49 billion (from 45.76 billion in 2014) which is 70 percent total operating income, while non-interest income amounted to 18.4 billion, down 37.7 percent from the previous year's 29.57 billion. These non-interest income were sourced from trading and foreign exchange gains worth 1.8 billion and 6.8 billion in “other income”. The bank’s net interest margin stood at 3.54 percent from 3.7 percent in 2014.

Dee sees 2016 as a “difficult year” and even more challenging than last year. “The main challenge (since he became bank president) was how do we make the head office more responsive to the need of the frontliners.”

“We have been focusing in improving and building our core income,” added Dee. Last year's 17 percent loan growth exceeded the industry's 13 percent.

The bank’s middle market also grew since 2012, along with corporate banking, said Dee. Commercial portfolio of the bank is about 72 percent of total portfolio.