METROPOLITAN Bank & Trust Co.’s (Metrobank) consolidated net income jumped by 49% in the third quarter on the back of higher operating revenues, it said in a stock filing Friday.

Metrobank said on Friday that its unaudited consolidated net income climbed 49% year-on-year to P8.5 billion during the July-September period, bringing its total income to P21.6 billion in the first nine months.

“The bank is proud to have sustained strong growth momentum by navigating well amid the dynamic movements in the local economy. We continue to focus on customer service, profitability, and quality growth. As always, our philosophy centers on providing solutions so that our customers can have meaningful banking experiences,” President Fabian S. Dee was quoted as saying in the bank’s statement.

Metrobank attributed the double-digit income expansion to “consistent growth in operating revenues on the back of moderate loan growth and margin expansion, strong trading and FX gains, and higher fee-based income”.

In the nine months to September, the bank’s non-interest income likewise grew by 36% to P23.7 billion. Broken down, its earnings from service fees and commissions stood at P10 billion, P8.1 billion from net trading and FX gains and P900 million in fees from asset management.

“Fee-based revenues as well as trading gains continued to benefit from increased customer flows in fixed income and foreign exchange, as well as opportunities in the financial markets,” it said.

During the same period, the lender said its current and savings account ratio (CASA) grew to 64% of its P1.6 trillion total deposits, providing liquidity for the bank to support the loan growth of 7% to P1.4 trillion.

Metrobank said relative to the current performance of the economy, the credit demand was broad-based and led by the corporate sector.

Meanwhile, its net interest income inched up by 10% to P56.2 billion from January to September, accounting for the lion’s share or 70% of the bank’s P80 billion in total revenues.

Its net interest margin further expanded to 3.91% from the 3.83% recorded in the first semester, while its non-performing loans (NPL) stood at 1.5%.

“The bank set aside P7.8 billion provisions for credit and impairment losses, aligned with the increase in its asset portfolio. This pushed NPL cover higher to 96%, from 87% in June 2019,” it said.

Its cost-to-income ratio improved also to 54% from the 58% posted from a year earlier due to “strong revenue growth” while maintaining operating expense growth at a “reasonable level” at 9%.

Meanwhile, the bank’s consolidated assets stood at P2.3 trillion while its equity is now at P304.7 billion.

Its total capital adequacy ratio was at 17.6% with common equity Tier 1 ratio of 16.3%.

Metrobank’s shares closed at P71.65 apiece on Friday, up by 0.92% or 65 centavos. — Beatrice M. Laforga