Metrobank profits rise 29% in 2023

Metropolitan Bank & Trust Co. (Metrobank), the banking arm of the Ty Group, reported a 28.9 percent growth in net income to a record ₱42.2 billion as total consolidated assets expanded by 9.2 percent to ₱3.1 trillion in 2023.

“Our solid performance in 2023 was strongly driven by our asset expansion, higher margins, improving efficiency levels and better asset quality,” said Metrobank President Fabian S. Dee in a disclosure to the Philippine Stock Exchange.

He noted that, “This indicates that we are firmly on track with our longterm growth strategies supported by our highly capable and resilient team of Metrobankers and strong balance sheet.”

The Bank’s net interest income grew by 22.7 percent fueled by higher loan demand and better net interest margin of 3.9 percent.

Gross loans rose by 7.6 percent year-on-year, with consumer portfolio increasing by 15.9 percent on strong discretionary spending, outpacing the 5.5 percent rise in commercial loans.

Meanwhile, total deposits grew by 7.3 percent from the previous year to ₱2.4 trillion with low-cost current and savings accounts (CASA) amounting to more than 60 percent or ₱1.4 trillion.

Fee income increased by 9.0 percent to ₱16.4 billion, largely driven by the expanding consumer business. Trading and forex gains were steady at ₱4.0 billion.

Cost to income ratio eased to 52.1 percent from 54.3 percent in 2022. The robust revenue growth offset the 14.0 percent increase in operating expenses, which was driven by transaction-related taxes, technology costs and higher manpower in line with capacity expansion.

Asset quality continued to improve. Non-performing loans (NPLS) ratio eased to 1.7 percent from 1.9 percent in 2022 while its NPL cover remained substantial at 180.3 percent.

The bank’s total equity stood at ₱356.7 billion, while capital adequacy ratio is at 18.3 percent and Common Equity Tier 1 (CET1) ratio at 17.4 percent.