Metrobank net profit down 50%

Metropolitan Bank and Trust Co. (Metrobank) reported yesterday its net income in the first three months of the year plunged by 50 percent to P400 million from P800 million in the same period last year due to thinning spreads and the drag from non-performing loans (NPLs).

Bank chief finance officer Alfredo Javellana said the bank set aside provisions for loan losses at P200 million, with provisions likely to total P1 to P1.5 billion by year end.

Javellana said the bank wants to keep its NPLs at 15 percent by the end of this year and bring up its loan-loss cover to 50 percent of NPLs from the current 42 percent.

Despite the drop in net income, the bank remains the country’s biggest commercial bank in terms of assets and the biggest in terms of branch network.

Bank president Antonio Abacan Jr. said the complete integration of Solid Bank has allowed Metrobank to expand its reach while achieving economies of scale in its operations.

"That has resulted in savings of P760-million in annual operating and capital expenses," Abacan said.

For the entire 2000, consolidated deposits grew 13.69 percent to P347.51 billion from P305.65-billion in 1999. Investments reached P92.69 billion last year, up by 51.53 percent or P61.17 billion in 1999.

Capital funds reached P47.44 billion last year up by P2.43 billion or 5.41 percent from P45.01 billion the year before. – Ted Torres