METROPOLITAN Bank & Trust Co. (Metrobank) said net profit rose 21% in 2018, buoyed by the healthy expansion in loans.
In a disclosure to the bourse on Friday, the bank booked a net profit of P22 billion in 2018, up from the P18.2 billion a year earlier.
The bank said profits grew due to the expansion of its loan book and as growth in margins, service charges and fees and commissions, while costs were kept under control.
Net interest income rose 12% in 2018 P68.8 billion. The net interest margin grew to 3.82%, which Metrobank said was the highest among comparable banks.
The loan portfolio was P1.4 trillion in 2018, up 10%. The commercial loan segment led the growth at 11% on the back of top corporate accounts, followed by loans from the middle market and small and medium enterprises.
The bank said asset quality was better than the industry average, with a non-performing loan (NPL) ratio of 1.2%, while NPL cover grew to 105%. Meanwhile, overall credit cost was kept within its full-year guidance of 50-60 basis points.
On the funding side, total deposits hit P1.6 trillion at end-2018, up 2% year-on-year.
Metrobank’s net interest income accounted for 74% of its total revenue which stood at P92.6 billion last year.
Meanwhile, non-interest income rose 8% year-on-year to P23.8 billion.
This was driven mainly by service fees and commissions as well as income from trust operations, which rose a combined 13% to P14 billion.
“Fee-related revenue was boosted by steady customer-driven flows and trade-related commissions,” Metrobank said.
Net trading and foreign exchange gains stood at P2.8 billion, while other income was P6.2 billion.
Metrobank’s operating expenses rose 10% to P44.9 billion, excluding taxes and licenses. Manpower-related costs grew 11% to P22.4 billion, while the balance was spent to support the bank’s systems and improve processes.
The bank set aside P7.8 billion in provisions for credit and impairment losses, compliant with Philippine Financial Reporting Standards 9 implemented this year.
Metrobank assets were at a record P2.2 trillion at the end of 2018, up 5%. Equity was P283 billion.
The capital adequacy ratio stood at 17% at the end of December, while the common equity tier 1 ratio was at 14.6%.
“2018 was a milestone year for our bank. Despite the challenging market conditions that especially characterized the second half of the year, we achieved consistent core income growth while keeping operating costs in check and asset quality intact,” Metrobank President Fabian S. Dee was quoted as saying in the disclosure.
“In addition, we have been steadily laying the groundwork for future expansion through structural changes, and focusing on productivity and efficiency improvements across the institution.”
In April, the bank raised P60 billion via a rights offer, selling 799.8 million common shares at P75 each.
It also issued P8.68 billion worth of long-term negotiable certificates of deposit in October, followed by a combined P28 billion through fixed-rate peso bond offerings in November and December.
Metrobank is one of five domestic banks — the others being Land Bank of the Philippines, BDO Unibank, Inc., Rizal Commercial Banking Corp. and Bank of the Philippine Islands — that have exposure to Hanjin Heavy Industries and Construction Philippines, which defaulted on its loans. Metrobank’s exposure is $70 million.
On Jan. 8, the South Korean shipbuilder filed for corporate rehabilitation before an Olongapo court, leaving some $412 million in outstanding loans from the five banks.
Metrobank closed at P75.20 on Friday, down 1.05%. — Karl Angelo N. Vidal

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