Metropolitan Bank & Trust Company (Metrobank) reported a consolidated net income of P18.2 billion in 2017, up 10% on a core basis. Total resources closed at a new high of P2.1 trillion.
The Bank’s strong performance was driven by robust growth in loans and deposits, which in turn resulted in improved margins as well as better operating leverage.
Metrobank President Fabian S. Dee commented “We are pleased to report positive results in our core business. The strength of our deposit franchise continues to support our loan growth, particularly in the commercial space as we help finance the expansion plans of our customers. Core revenues increased at a healthy rate, while operating expense growth was capped to single-digit.” Dee added that “Our momentum continues to build up, and we are well-positioned to accelerate our growth plans moving forward.”
The Bank ended the year with total deposits of P1.5 trillion, with low cost deposits increasing 12% to P950 billion for a 62% CASA ratio. This provided the stable low cost funding to fuel its healthy loan expansion.
Sustaining the momentum from previous quarters, the loan portfolio expanded by 19% year-on-year to hit P1.3 trillion. The commercial segment, mainly the middle market and SMEs, led the growth with 20% while consumer loans increased by 17%.
Metrobank’s net interest margin has been steadily moving up to 3.75% or 21 basis points higher from last year, mainly driven by improving asset yields. As a result, net interest income increased 16% to P61.4 billion, and accounting for 73% of the Bank’s P83.6 billion total operating income.
Meanwhile, non-interest income reached P22.1 billion, which consist of P12.4 billion in service charges and commissions and income from trust, P3.9 billion from trading and FX gains, and miscellaneous income of P5.9 billion.
With the greater focus on improving efficiency, expenses for Bank-related operations were kept at a reasonable level with recurring cost growth at only 6%. On a consolidated basis, Metrobank ended the year with 952 branches and 2,352 ATMs nationwide. More than half of these branches are located outside Metro Manila, putting the Bank in a good position to gain market share in the country’s high growth areas.
Asset quality continued to be better than industry with non-performing loans ratio at 1.0%. The Bank reported provisions for credit and impairment losses of P7.5 billion, including one-offs.
On a Basel III basis, total capital adequacy ratio was at 14.4% with Common Equity Tier 1 at 11.8%.
Metrobank recently announced that it obtained Board approval for a Stock Rights Offer (SRO) that is expected to boost the Bank’s capital ratios by up to P60 billion. Proceeds from the SRO are expected to enable the Bank to pursue business prospects to sustain the loan growth momentum. A portion of the proceeds will also be used to increase the Bank’s stake in subsidiary Metrobank Card Corporation to 100%. Timing of the SRO is subject to receipt of regulatory approvals as well as market and other conditions.
Metrobank is the country’s premier universal bank and has one of the largest domestic networks with over 950 branches and over 2,200 automated teller machines (ATMs) nationwide, and 32 foreign branches, subsidiaries and representative offices. For inquiries, please contact Corporate Communication Department at 857-5526, or Investor Relations Department at 857-9783 and investor.relations@metrobank.com.ph. Or call the Metrobank 24/7 Customer Hotline at 8700-700, or log on to www.metrobank.com.ph. For provincial areas, call toll-free 1-800-1888-5775.
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