METROPOLITAN BANK & Trust Co. (Metrobank) saw its net income surge by double digits in 2019 on the back of solid growth in operating revenues, moderate loan growth and margin expansion.

In a filing with the local bourse on Thursday, Metrobank said its net income jumped 27.47% to reach P28.055 billion last year from P22.008 billion seen in 2018.

Meanwhile for its consolidated income, Metrobank and its subsidiaries booked a 23% growth in its net income which stood at P28.874 billion in 2019 from P23.435 billion the year prior.

The bank attributed the overall growth for 2019 to the “consistent improvement in operating revenues on the back of moderate loan growth and margin expansion, strong trading and FX (foreign exchange) gains, double-digit increase on fee-based income, and manageable cost growth.”

“The bank performed significantly well in 2019, and all our initiatives contributed to the strong finish,” Metrobank President Fabian S. Dee was quoted as saying.

Metrobank’s net interest income reached P49.921 billion last year, up 17.9% from P42.328 billion recorded in 2018.

For the consolidated figures, the “net interest income expanded 12% to P77.0 billion, accounting for 72% of the bank’s total revenues of P106.9 billion, bringing net interest margin to 3.84%.”

It said the bank and its subsidiaries maintained a “modest” seven percent growth in loan portfolio or P1.5 trillion, with a nonperforming loan (NPL) ratio of 1.3% last year.

This was driven by an increase in overall credit demand, led by the seven percent rise in commercial borrowers and the sustained growth in its consumer lending after its credit card business recorded a 23% expansion, it said.

Metrobank alone saw its overall deposits increase by 13.2% to P1.5 trillion from P1.325 trillion in 2018, driven by the 11.44% growth in its current account, savings account or CASA deposits.

Meanwhile, the bank’s other operating income posted a 41.06% surge to P14.754 billion last year from P10.459 billion a year prior, on the back of “higher customer flows in fixed income and foreign exchange, on top of a favorable financial market environment.”

Income from service fees and commissions inched up by nearly four percent to P5.145 billion, while gains from trading and foreign exchange activities reached P7.87 billion.

Its operating expenses likewise grew to P37.305 billion in 2019, up 11.% from P33.455 billion recorded the year prior.

Metrobank and its subsidiaries allotted P10.1 billion in provisions for credit and impairment losses, pushing its NPL cover to 103% by yearend from the 96% recorded in the third quarter.

Despite higher operating expenses, its consolidated cost-to-income still improved to 55% last year from 58% in 2018, the bank said.

Metrobank’s consolidated assets stood at P2.45 trillion while its equity is at P309.6 billion, by end-2019.

It booked a total capital adequacy ratio of 17.5%, while its common equity Tier 1 ratio was at 16.2%.

“Our increased profitability, more efficient operations, and sustained business growth are the direct result of our continued mission to deliver what is meaningful to our customers and validates their trust and confidence in our bank,” Mr. Dee said.

Metrobank has more than 950 branches and over 2,300 automated teller machines across the country, with over 30 branches, subsidiaries and representative offices internationally.

The Securities and Exchange Commission last month approved Metrobank’s plan to merge with its wholly owned credit card subsidiary Metrobank Card Corp. (MCC).

Through this, it said MCC is expected to improve its profitability and capital efficiency and allow Metrobank to be more competitive in the credit card business.

Based on data from the Credit Card Association of the Philippines, MCC had 1.5 million cards-in-force to date.

Metrobank’s shares ended at P60.60 each on Thursday, up P1.6 or by 2.71% from the previous day’s close of P59 apiece. — Beatrice M. Laforga

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