By James A. Loyola
Metropolitan Bank & Trust Company (Metrobank) reported a 5 percent improvement in unaudited consolidated net income to P13.2 billion in the first nine-months of 2017.
In a disclosure to the Philippine Stock Exchange, Metrobank said it continued to make strides in its core banking business as it sustained the momentum in its loan expansion and low-cost deposits growth.
Fee income drivers continued to improve and operating expenses were again capped at a single-digit growth rate.
“We are pleased to report that our core earnings results are moving ahead of plans. And we are also continuously improving our operations and have made the necessary enhancements to our internal processes to ensure that we become an even stronger institution,” said Metrobank President Fabian S. Dee.
The Bank sustained its 15 percent growth in low cost deposits for a 62 percent CASA ratio, out of the total P1.5 trillion deposit base.
This healthy mix of funding supported the 20 percent year-on-year growth in net loans and receivables to reach P1.2 trillion.
The commercial segment was again at the forefront of this growth as the Bank continued to provide funding to both corporate and middle market clients.
With the strong performance in its balance sheet expansion, net interest margin continued to improve at 3.8 percent mainly coming from the loan expansion in target segments.
This delivered a 16 percent increase in the Bank’s net interest income, which make up 72 percent of the P62.9 billion total revenue.
Meanwhile, the Bank’s non-interest income of P17.6 billion was comprised of P9.1 billion in service fees and commissions including income from trust operations, P4.0 billion in net trading and FX gains and P4.5 billion in miscellaneous income.
On the other hand, the Bank incurred operating expenses of P35.8 billion for the period, up by just 8 percent as expected.
The Bank’s asset quality metrics remained better than industry average with NPL ratio at 1.07 percent. Provisions for credit and impairment losses for the period amounted to P5.9 billion, including one-offs.