Metrobank profit hits P36.3 billion in 9 months

MANILA, Philippines —  Metropolitan Bank and Trust Co. (Metrobank) saw its net income slip by 2.5 percent to P36.33 billion in the first nine months from P37.28 billion a year ago, as higher lending income was offset by weaker trading revenues, rising expenses and increased provisions for potential credit losses.

In the third quarter alone, net income fell by eight percent to P11.43 billion from P12.43 billion in the same period last year.

“The resiliency and strength of the bank come from the bank’s robust fundamentals and prudent approach in managing its core businesses,” Metrobank president Fabian Dee said.

“With the economic landscape still uncertain, we will continue to invest in our capabilities to better serve our customers, while managing risks prudently. We are making sure that we will sustain our ability to create long-term value to all our stakeholders.”

Net interest income rose by 11.9 percent to P102.7 billion. The bank’s net interest margin, which measures how much it earns from interest-bearing assets relative to funding costs, improved to 3.9 percent from 3.7 percent a year ago.

Gross loans expanded by 13 percent year-on-year, faster than the banking industry, as institutional loans jumped by 14.2 percent on sustained investment spending and higher working capital requirements among corporate borrowers.

Consumer loans also grew by 8.9 percent, driven by credit cards and mortgages.

Total deposits stood at P2.54 trillion, supported by continued growth in low-cost current and savings accounts, which accounted for 61.2 percent of total deposits. The loan-to-deposit ratio reached 83.8 percent.

Other operating income declined by 18.5 percent to P20.68 billion, largely due to lower trading, securities and foreign exchange gains. Meanwhile, operating expenses rose by 11.9 percent to P64.83 billion as the bank continued to invest in personnel and technology.

Metrobank also raised provisions for credit and impairment losses to P12.06 billion from P8.69 billion a year ago. Its non-performing loan ratio stood at 1.9 percent, below the industry’s 3.4 percent, while NPL coverage remained high at 131.8 percent.

The bank ended September with P3.7 trillion in assets and P410 billion in equity. Its capital adequacy ratio stood at 14.5 percent, while its common equity tier 1 ratio was at 13.8 percent, both above minimum regulatory requirements.