Metrobank core profit posts 10% hike in 2017

MANILA, Philippines — Ty-led Metropolitan Bank & Trust Co. recorded a double-digit growth in core earnings last year as its assets reached a record P2.1 trillion due to robust core businesses.

The country’s second lar-gest bank said in a disclosure to the Philippine Stock Exchange (PSE) it booked a consolidated net income of P18.2 billion last year, slightly higher than the net profit of P18.1 billion registered in 2016.

Metrobank president Fabian Dee said in a statement the bank’s strong performance was driven by robust growth in loans and deposits, resulting in improved margins as well as better operating leverage.

“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.

The bank said total deposits amounted to P1.5 trillion, with low cost deposits increasing 12 percent to P950 billion, providing stable low cost funding to fuel healthy loan expansion.

On the other hand, its loan book jumped 19 percent to P1.3 trillion with the commercial segment particularly the middle market as well as small and medium enterprises (SMEs), leading the expansion with 20 percent followed by the consumer loans with 17 percent.

“Core revenue increased at a healthy rate, while operating expense growth was capped to single-digit. Our momentum continues to build up, and we are well-positioned to accelerate our growth plans moving forward,” Dee said.

He said Metrobank’s net interest margin has been steadily moving up to 3.75 percent or 21 basis points higher from last year, mainly driven by improving asset yields.

As a result, net interest income increased 16 percent to P61.4 billion, accounting for 73 percent of Metrobank’s P83.6 billion total operating income.

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 foreign exhange 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 six percent.

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.

Asset quality continued to be better than industry with non-performing loans ratio at one percent as provisions for credit and impairment losses amounted to P7.5 billion, including one-offs.