Metrobank earns record P42.2 billion in 2023

MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) posted record-high earnings of P42.2 billion in 2023, driven by asset expansion, higher margins, improving efficiency levels and better asset quality.

“This indicates that we are firmly on track with our long-term growth strategies supported by our highly capable and resilient team of Metrobankers and strong balance sheet. We look forward to further expanding our partnerships with all our stakeholders,” Metrobank president Fabian Dee said in a statement.

The bank’s net income was 28.9 percent higher than the P32.78 billion booked in 2022. This translated to a return on equity of 12.5 percent in 2023, higher than 10.3 percent in 2022.

Net interest income jumped by 22.7 percent to P104.97 billion, fueled by higher loan demand and better net interest margin of 3.9 percent.

The bank’s loan book inched up by 8.4 percent to P1.54 trillion, driven by the 15.9 percent increase in its consumer portfolio on strong discretionary spending as well as the 5.5 percent rise in commercial loans.

Likewise, total deposits went up by 7.3 percent to P2.38 trillion, with low-cost current and savings accounts (CASA) accounting for more than 60 percent or P1.4 trillion.

Metrobank also reported a nine percent increase in fee income to P16.4 billion, largely driven by the expanding consumer business.

On the other hand, trading and foreign exchange gains were steady at P4 billion.

The lender said its cost to income ratio eased to 52.1 percent in 2023 from 54.3 percent in 2022.

According to Metrobank, the robust revenue growth offset the 14 percent increase in operating expenses to P69.52 billion in 2023 from P61 billion in 2022, which was driven by transaction-related taxes, technology costs and higher manpower in line with capacity expansion.

It also said asset quality continued to improve, with non-performing loan (NPL) ratio easing to 1.7 percent from 1.9 percent, well below the banking system’s 3.3 percent.

Its NPL cover remained substantial at 180.3 percent, reflecting its ability to weather any risks to the loan portfolio.

The bank’s provision for credit and impairment losses went up by 10.7 percent to P8.98 billion in 2023 from P8.11 billion in 2022.

Metrobank’s total equity stood at P356.7 billion, while capital ratios remain to be one of the highest in the industry, with capital adequacy ratio at 18.3 percent and common equity tier 1 ratio at 17.4 percent, all well-above the minimum regulatory requirements.

Total consolidated assets expanded by 9.2 percent to P3.1 trillion in 2023, maintaining its status as the country’s second largest private universal bank.

The strong profitability and substantial capital base prompted the bank’s board of directors to approve a total cash dividend of P5 per share for the year.

The regular dividend was raised to P3 per share from P1.60 per share to be paid out on a semi-annual basis at P1.50 per share.

In addition, a special cash dividend of P2 per share was also declared. The first payout of P3.50 will be given to shareholders on record as of March 8.

Metrobank has an extensive consolidated network that spans over 940 domestic branches nationwide, more than 2,300 ATMs, and above 30 foreign branches, subsidiaries, and representative offices.