Metrobank income up a third in 2011

METROPOLITAN Bank and Trust Co. (Metrobank) said on Thursday that its consolidated net income grew by more than a third last year on the back of growth in its core businesses.

In a statement, Metrobank said its net profit reached P11 billion, up 32 percent from P8.4 billion it earned in 2010. Operating income growth was supported by the 11.4 percent increase in net interest income to P29.4 billion, buoyed by the 7.3 percent growth in low cost deposits and the 16.5 percent hike in net loans and receivables.

Metrobank also said that despite fierce competition, growth in assets and improved deposit mix pushed net interest margin by 11 basis points higher to 3.5 percent.

Contributing to the growth were service charges, fees and commissions which registered a 12.5percent increase to P7.7 billion, while income from trading and foreign exchange added P7.7 billion. Meanwhile, operating expenses grew 10.3 percent yearon- year to P30.7 billion, driven by higher manpower and occupancyrelated costs.

Provisions for credit and impairment losses declined 47.5 percent to P3.8 billion as gross nonperforming loans were reduced by 8.3 percent settling at P10.1 billion at end- 2011.

As a result, the bad loans ratio declined to 2.2 percent at yearend from 2.9 percent in 2010, while the NPL coverage was higher at 99.5 percent from 92.3 percent in 2010.

As of December 31, 2011, Metrobank posted consolidated assets of P958.4 billion or 8 percent higher than the P887.3 billion declared in 2010.

Total deposits grew by 4.6 percent year-on-year to P681 billion, while net loans and receivables rose by 16.5 percent to P457.4 billion with strong growth coming from both consumer and commercial segments, Metrobank said.

Metrobank’s total equity reached P109.8 billion, up 25.3 percent from P87.6 billion in the same period last year. The bank’s total capital adequacy ratio improved to 17.4 percent at end2011 from 16.4 percent at end-2010, well above the 10 percent regulatory minimum, while tier 1 capital ratio also rose to 13.7 percent from 12 percent, year-on-year.

Metrobank has a consolidated network that spans over 780 branches and 1,500 automated teller machines nationwide, and 38 foreign branches, subsidiaries and representative offices.

Its shares were unchanged at 82 apiece on Thursday.