Metrobank reports 10% hike in first quarter net income to P1.94 billion

MANILA, Philippines - The Metropolitan Bank & Trust Co. (Metrobank) reported a consolidated net income of P1.94 billion in the first three months of 2009, 10.22 percent higher than the P1.76 billion realized in the same period last year.

Metrobank president Arthur Ty attributed the respectable gain to strong core banking gains despite the poor economic conditions brought about by the US economic recession.

“Volumes grew steadily in tandem with our thrust to preserve credit quality, while margins expanded as a result of better credit spreads and improved deposit mix,” Ty said in a statement.

The first quarter results were driven by a 41.5 percent growth in net interest income to P7.03 billion, and a strong rebound in its trading portfolio. 

Trading and foreign exchange gains grew 68.5 percent year-on-year to P1.44 billion while operating expenses growth was kept to 1.6 percent or P6.37 billion.

Cost-to-income ratio improved to 59.1 percent from 61.4 percent in the comparative period last year.

“Until the economic outlook is more certain, we will continue to take a cautious stance in our provisioning policy as reflected in the P1.46 billion provisions set aside for the quarter,” Ty said.

Non-performing loans (NPL) ratio was relatively unchanged year-on-year.

Consolidated deposits expanded by 12.3 percent to P554.39 billion, while net loans and receivables rose 5.7 percent to P331.75 billion. 

Consolidated equity position increased to P69.25 billion from P65.09 billion, while consolidated risk-adjusted capital adequacy ratio (CAR) stood at 13.5 percent.

Last month, Metrobank completed a P4.50-billion offer of Lower Tier 2 peso-denominated Step-Up Callable Subordinated Notes (LT2 Notes). Strong investor demand for the LT2 Notes prompted the bank to close the order book after just three days out of the nine-day offer period.

Last year, Metrobank experienced a 37.4-percent drop in net income for 2008, or from P7.043 billion in 2007 to P4.4 billion.

The huge drop in its earnings was reportedly from poor treasury activities and provisioning for its probable loss from its exposure with bankrupt Lehman Brothers.

Likewise, it did not avail of a temporary relief by the Bangko Sentral ng Pilipinas (BSP) regarding the reclassification of investment securities, under the International Accounting Standards (IAS).