Metrobank profit surges 27%

9-month earnings reach P16.75 B

MANILA, Philippines — Earnings of listed Metropolitan Bank & Trust Co. (Metrobank) surged 27 percent in the first nine months after soaring 55.5 percent in the third quarter on the back of the solid performance of its core businesses.

In a disclosure to the Philippine Stock Exchange (PSE), the country’s second largest bank owned by taipan George SK Ty reported its net income reached P16.75 billion from January to September, P1.39 billion higher than the P15.36 billion booked in the same period last year.

Metrobank chairman Arthur Ty said the increase in earnings in the first nine months was achieved amid higher inflation and rising interest rates.

“The strong performance during the nine-month period is very encouraging especially amidst inflation concerns and rising interest rates. Credit demand remains healthy, and the bank continues to grow cautiously its consumer, business and infrastructure-related loan portfolio without incurring unnecessary risks to asset quality and profitability,” Ty said.

The growth was driven by the solid performance of the core business, as double-digit growth in loans and sustained checking and savings account ratio lifted margins even higher, while the increase in operating expenses was kept at a manageable level.

Metrobank’s loan book grew 15 percent to P1.3 trillion as of end-September amid the 17 percent rise in commercial loans, while its deposit base climbed five percent to P1.5 trillion.

“We will continue to be a key player in the country’s economic development, anchored on our long-term strategy of growth, good governance and sustainability,” Ty said.

The bank’s gross revenues booked a double-digit 10.4 percent increase to P68.39 billion from P61.96 billion as net interest income grew 13 percent to P51 billion, while non-interest income inched up four percent to P17.4 billion.

Service fees and commission as well as income from trust operations grew 11 percent to P10.2 billion due to steady customer-driven flows and large corporate deals followed by net trading and foreign exchange gains with P2.1 billion and miscellaneous income with P5.1 billion.

Operating expenses, excluding taxes and licenses, increased by 10 percent to P33 billion as manpower-related costs rose by 12 percent to P16 billion and the balance were allocated to improve systems and streamline processes.

Taxes and licenses were reported at P6.3 billion, inclusive of new tax-related requirements under Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

Provisions for credit and impairment losses amounted to P5.2 billion largely attributable to the impact of PFRS-9 adopted at the start of the year.

For the third quarter alone, the profit of the Ty-led bank surged by 55.5 percent to P5.74 billion from P3.69 billion in the same period last year. Revenues climbed six percent to P23.27 billion from P21.96 billion, while expenses declined slightly to P15.06 billion from P15.17 billion.