MANILA, Philippines — Metropolitan Bank & Trust Co. (Metrobank) recorded a 12.4-percent jump in earnings to a record P35.73 billion from January to September versus last year’s P31.79 billion, driven by strong asset expansion, improving non-interest income and better asset quality.
Metrobank president Fabian Dee said the sustained growth shows the Ty-led bank’s strong drive to support the growing needs of its clients while preserving the health of their portfolio.
“We look forward to the positive impact of recent regulatory measures on the banking industry alongside improving economic outlook,” Dee said in a statement.
Based on its quarterly report, Metrobank’s net interest income climbed by 11 percent to P85.7 billion during the nine-month period from P77.24 billion in the same time last year, with net interest margin at 3.9 percent from January to September.
Non-interest earnings also increased by five percent to P24.09 billion from P22.96 billion as trading and foreign exchange gains soared by 56.4 percent to P5.63 billion from P3.6 billion.
Metrobank said it took advantage of favorable market developments during the third quarter, generating combined trading and foreign exchange gains. Meanwhile, income from service charges, fees and commissions rose
by 2.7 percent to P12.54 billion from P12.21 billion.
Operating expenses went up by 11.2 percent to P56.99 billion from P51.24 billion due to higher manpower costs, occupancy and equipment-related expenditures as well as miscellaneous fees. Cost-to-income ratio stood at 52.2 percent during the nine-month period.
The lender also reported a 15.6-percent growth in gross loans, fueled by the 16.6-percent expansion in commercial loans, 12.3-percent jump in consumer loans, 16.6-percent increase in credit card receivables and 15.7-percent increase in auto loans.
On the other hand, the bank’s deposit base stood at P2.3 trillion. Low-cost current and savings accounts made up for 62.3 percent of total deposits.
The bank’s non-performing loan (NPL) ratio eased further to 1.59 percent from 1.7 percent last year as it continued to practice prudence to maintain the quality of its portfolio.
As a result, the provision for credit and impairment losses by the bank fell by 48.2 percent to P3.52 billion during the nine-month period from last year’s P6.8 billion. But the bank’s NPL cover remains high at 161.9 percent, providing a substantial buffer against any risks to the portfolio.