Metrobank hikes profit to P5.25 B

MANILA, Philippines – Metropolitan Bank & Trust Co. (Metrobank) has reported a three percent growth in net earnings to P5.25 billion in the first three months of 2016 from P5.1 billion in the same period last year.

“Despite the volatility in the financial markets at the start of the year, the bank continued to make strides in its core business expansion, with sustained double-digit growth in loans and low cost deposits,” the bank said in a statement.

Low cost deposits increased 11 percent during the period, making up 59 percent of the total P1.2-trillion deposit base.

The continued build-up of low cost deposits was fueled by the 17-percent expansion in net loans and receivables to P873.4 billion, with key contributions coming from the corporate and consumer segments.

The bank’s non-interest income included P2.2 billion in fee-based income, P2.5 billion in trading and foreign exchange gains and P1.8 billion in miscellaneous income.

Meanwhile, total operating expense for the period stood at P10.5 billion.

Asset quality remains well under control, with a non-performing loans (NPL) ratio of 1.1 percent.

Metrobank ended the first three months with consolidated assets of P1.7 trillion, and equity at P193.3 billion.

Total capital adequacy ratio (CAR) on a Basel III basis remained well above the regulatory limit at 18.3 percent, with Common Equity Tier 1 (CET 1) ratio at 15 percent.

Last year, Metrobank registered a consolidated net income of P18.6 billion, down seven percent from P20 billion in 2014.

Metrobank president and chief executive officer Fabian S. Dee said both loans and deposits growth experienced a slowdown, while market conditions limited trading opportunities.

Following its P32-billion stock rights offer last year, Metrobanks’ Basel III total CAR remained well above the regulatory requirement of 17.75 percent, with CET 1 at 14.25 percent.